Session 1 and 2_Introduction and Organization Theories

8/10/2019 Session 1 and 2_Introduction and Organization Theories

1/33

Introduction

What is an organization?

Organization theoriesSession 1 and 2

1


2/33

INTRODUCTION

Lecturer Inga Haase

Studyplan

Blackboard


3/33

DEVELOPMENT IN THE

ENVIRONMENT

Read the Case: Philips NV - From

manufacturing-driven to custumer-driven

company (in book and on BB)

Discuss the case in groups and point out

which circumstances in the environment

forced Philips to changes


4/33

DEVELOPMENT IN THE

ENVIRONMENT

Increasing complexity

What do you understand by complexity?

The gap between the knowledge, we already

have about the environment, and the

knowledge, we are extpected to have


5/33

DEVELOPMENT IN THE

ENVIRONMENT

Printing machine (the art of

printing) meant increasning

dissemination of

knowledge in the society

Steam engine created the

fundament for mass

production

The global digital machine

(Internet) offers the

opportunity for interaction

with the whole world

without any timeshift

increasing complexity


6/33

Current Challenges

Globalization

Ethics and Social Responsibility

Speed of Responsiveness

The Digital Workplace

Diversity in workforce

ORGANIZATION THEORY INACTION


7/33

REFLECTION IN SMALL

GROUPS

Which organizational structure is better to

meet the challenges - top-down or bottom-

up? What are the pros and cons?


8/33

Definition: organizations are (1) socialentities that (2) are goal-directed, (3) are

designed as deliberately structured and

coordinated activity systems, and (4) linked to

the external environment.

Types of Organizations

- Large, multinational corporations vs. family

owned businesses- For-profit business vs. non-profit organizations

8

WHAT IS AN ORGANIZATION?


9/33

REFLECTION IN SMALL

GROUPS

Read counterpoint 1.5 (in book and on BB) and

reflect on the definition of organizations.What does that mean for a company in practice?

Build your reflection on concrete examples.


10/33

PERSPECTIVES ON

ORGANIZATIONS

Two important perspectives on

organizations

Open systems approach

Organizational-configuration approach


11/33

Open Systems

- Open sys tem thinking pays attention to the (open)

boundary between the organization and its context.

- Closed system design focuses exclusively upon the

organization without consideration of its dependence

upon or capacity to influence elements comprising its

context.

PERSPECTIVES ONORGANIZATIONS


12/33

OPEN SYSTEM APPROACH

A system consists of

elements, that have

relationsto each other and that have a boarder to the outside world

In addition,

the elements are interdependent, and

the system has input and output


13/33

STRUCTURE

CULTUREPROCESS

Input

Raw materials

Employees

Productionequipment

Capital

Ouput

Products

Services

How the operation is functioning.

The organization is divided into

responsibility and tasks. Workflow and rules.

The FRAMEWORK in the organization.

Norms, values and attitudes. You perceive

your self as being an organization.

Culture is something, that is, not something

the organization has.

The organization achieves its results through

the processes.

Procedures for management, communication,

decisions etc.

OPEN SYSTEM


14/33

OPEN SYSTEMS

ATTENTION POINT

Individuals and groups frequently have differentinterests and goals they wish to achieve through theorganization and these differences can generateconflict

It is therefore a crucial management challenge tosecure a high degree of common agreement on theorganizations vision, strategies and goals

Information is powercontrol of information / notsharing of information is a source of power

Although many organizations shares informationopenly and broadly as suggested by open systemsthinking, it is doubtful if all information can be sharedopenly or be made available to all employees


15/33

Organizational

Configuration

- Technical Core- Technical Support

- Administrative Support

- ManagementTop and

Middle

ORGANIZATIONAL-

CONFIGURATION APPROACH


16/33

Structural Dimensions

Formalization

Specialization

Hierarchy of authority

Centralization

Professionalism

Personnel Ratios

Contextual Dimensions

Size

Organizational

technology

Environment

Goals and strategy

Culture

16

DIMENSIONS OF

ORGANIZATION DESIGN

Key, internal characteristics Charterize both theorganization as a whole,

including its size, technology

etc. and the broader

organizational settings


17/33

17

INTERACTING CONTEXTUAL ANDSTRUCTURAL DIMENSIONS OF

ORGANIZATION DESIGN

To understand and evaluate organizations, it is important to examine

both structural and contextual dimensions


18/33

SAMPLE ORGANIZATION

CHART


19/33

EXERCISE IN GROUPS

Read In practice GoreCarrefour Wales Millennium

Centre (in book and on BB)

Reflect on the relationship

between the description in

Exhibit 1.6 and the figure


20/33

Group exercise

Measuring Dimensions of Organizations

(in book and on BB)

Choose two organization your group is familar

with

Analyze the two organizations along the

dimensions shown. Indicate where you think

each organization would fall on each of thescales

Answer the questions


21/33

Efficiencyrefers to the amount of resources used to

achieve the organizations goals.

Effectiveness refers to the degree to which an

organization achieves its goals.

Stakeholder Approachbalancing the needs of groupsin and outside of the organization that has a stake in the

organizations performance.

A stakeholderis any group within or outside of the

organization that has a stake in the organizationsperformance.

21

PERFORMANCE ANDEFFECTIVENESS OUTCOMES


22/33

MAJOR STAKEHOLDER GROUPS

AND WHAT THEY EXPECT


23/33

STAKEHOLDERS

CASE STUDYConflicts and

compromise in the Forest Products

Industry

Read the case

Discuss whether for-profit organizations and

non-profit organizations will use different

strategies to cope with their stakeholdersdiverse interests


24/33

Historical perspectives

Efficiency is Everything Scientific Management: Pioneered by Frederick Winslow Taylor

Decisions should be based on precise, scientific studies to choose the method thatdelivers the greatest output

Focus on technical core Standardizing of procedures

Closed systems thinkingone best way of organizational design

How to Get Organized Administrative Principles

Focus on the design and functioning of the organization as a whole

Contributed to Bureaucratic Organizationsclearly defined authority and responsibility,formal recordkeeping and uniform application of standards rules

Closed systems thinkingone best way of organizational design What about People? Human Relation Theories

Hawthorne Studies

Dont Forget the Context Open systems thinking

Contingency: there must be a goodness of fit between structural and contextualdimensions.

24

THE EVOLUTION OF ORGANIZATION

THEORY AND DESIGN


25/33

Contemporary Organization Design As the context of organizations become more turbulent and complex,

managers and organizations face a range of intertwined challenges.

Managers are endeavoring to design and orchestrate new responsesthat, in general, are less mechanical and more organic

Chaos theorysuggests that relationships in complex systems arenonlinear and made up of numerous interconnections anddivergent choices.

Learning Organization is based on equality, open information,

little hierarchy and a culture that encouragesadaptability and participation.

Promotes collaboration so everyone is engaged in identifying and solvingproblems, enabling the organization to experiment and improve

THE EVOLUTION OF ORGANIZATIONTHEORY AND DESIGN


26/33

CLASSICAL THEORIES

Organization of production Secure efficiency in production

The leader sets the tasks

Workers receives detailed instructions

High degree of specialization

Workers sought employment just to earn money

Bases on closed system thinking overlooking how employees develop a

sense of identity and meaning outside of the workplace

Design and functioning of the organization as a

whole

Planning and control of the flow in the

organization

Planning / Organizing / Give instructions /

Coordinating / Controlling

Three significang principles for effective

leadership:

Specialization Centralization / Decentralization

Only one superior

Organization of the production

Secure efficiency in the administration

Rationality as bearing value

Clearly defined authority and responsibility, formal

recordkeeping and uniform application of standard rules

It replaced nepotism and other forms forms of favouritis

impartial processes

Scientific

management

Administratives

principles

Bureaucratic

organizations


27/33

POSTMODERN THEORIES

Organizations as closed mental and social systems, that by them self chooseswhich informations they take in, and that manage them selves from inside

This means people and organization are self-gerating which itself createsmeaning on the basis of the informations, they by them self have choosen

The leader can not directly affect

down the organization.

Middlemanagers and employees will

by them self create their meaning

based on the information, they find

relevant.


28/33

Efficient Performance Versus The LearningOrganization

From Vertical to Horizontal Structure

From Routine Tasks to Empowered Roles

From Formal Control Systems to SharedInformation

From Competitive to Collaborative Strategy

From Rigid to Adaptive Culture

28

THE EVOLUTION OF ORGANIZATIONTHEORY AND DESIGN


29/33

TWO ORGANIZATION DESIGN

APPROACHES

THE IMPORTANCE OF


30/33

THE IMPORTANCE OF

LEARNING IN

ORGANIZATIONS

An interview with David Garvin andAmy Edmondson, Professors, Harvard

Business School. Learning

organizations generate and act on new

knowledge. The ability to do this

enables companies to stay ahead of

change and the competition.
http://www.youtube.com/watch?v=lUP4WcfNyAA


31/33


32/33

REFLECTION IN GROUPS

Read In practice Cementos Mexicanos (inbook and on BB) This case illustrates an organization that is

transforming into a learning organization

Discuss the characteristics of a learningorganization and write key-characteristicsdown (use your own words)

Are there industries, where the concept oflearning organizations are likely to beadapted? Argue for your answer


33/33

Multiple choice (on BB)

Answers will come on BB

Documents

Session 1 and 2_Introduction and Organization Theories