OBJECTIVES OF

ORGANIZATIONAL ORGANIZATIONAL
ORGANIZATIONAL
THEORY STRUCTURE
STRUCTURE

PRINCIPLES OF
CONSEQUENCES OF ORGANIZATIONAL DESIGN
DIMENSIONS OF ORGT’L
ORGANIZATIONAL (Simple, Machine,
STRUCTURE
STRUCTURE Professional, Divisionalized,
Adhocracy)

TYPES OF
ORGANIZATIONL
STRUCTURE (Functional, CENTRALIZATION /
Product / Service, DECENTRALIZATION
Geographical, Divisional,
Matrix
 MINTZBERG NINE DESIGN
PARAMETERS (Job Specialization,
Behavior Formalization, Tarining &
LEVEL OF ORGANIZATION
Indoctrination, Unit Grouping, Unit
(Technical, Managerial &
Size, Planning and Control Systems,
Community)
Liason Devices, Vertical
Decentralization and Horizational
Decentralization)

ORGANIZATIONAL
RELATIONSHIPS Work Design,
Formal, Span of Control and People
and Organizational Relationships
ECONOMIC LEGAL SOCIO POLITICAL

NATURAL
TECHNOLOGICAL
ENVIRONMENT
 EMPLOYEES
CULTURE, SIZE OF THE
ENVIRONMENT, COMPANY
LANGUAGE & VALUES

STRATEGY (Cost
COMPANY’S RANGE
Leadership,
OF PRODUCTS AND
Differentiation, Focus
SERVICES
Etc
 LEGAL SELF
RESTRICTION REGULATION
•Depends on the
•Imposed by Law Industry where a
business belongs
 Where economic decisions is controlled by the government.
 Opposite of Free Market or Capitalist Economy.
 Market is not the measure of what is best for the country.
 State runs the country.
 Mix of centrally planned and free market.

DRIVEN FOR
ECONOMIES INHERENTLY
COLLECTIVE STABILITY
OF SCALE PROTECTED
BENEFITS

INEFFICIENT RESTRAINT
USE OF OF
RESOURCES DEMOCRACY
A. Disproportionate Licensing and Regulatory Requirements.
B. Excessive, Complex and Arbitrary Taxation.
C. Inadequate Banking System and Poor Banking Practices.
D. Lack of Government’s Commitment to Reduce Administrative
Barriers.
 EMPLOYMENT &
ADVERTISING ENVIRONMENTAL
LABOR

SAFETY AND
PRIVACY
HEALTH
 Imposing penalties.
 Monitoring the political climate.
 Changes in policies and attitudes among foreign businesses.
 Stability of country’s political environment check.
 Tariffs and quotas.
CONTEMPORARY
ENVIRONMENTAL GLOBAL TECHNOLOGICAL
SOCIAL ISSUES
Character Ethics Integrity Laws

CODE OF SOX OF
Morals Values
ETHICS 2002
 Understanding corporate social responsibility

DEFINING CORPORATE SOCIAL RESPONSIBILITY

• Has been defined as:

Accommodation of
corporate
behaviour to
society’s values
and expectations
CSR refers to
corporate behaviour The firm’s
that extent beyond consideration of, and
the economic response, to, issues
motives and legal beyond the narrow
requirements economic, technical
and legal requirements
of the firm

However, corporate social responsibility is complex, context dependent and is

generally agreed to be an ambiguous concept.
 Understanding corporate social responsibility

CARROLL’S PYRAMID OF CORPORATE SOCIAL

RESPONSIBILITY
Economic responsibilities: The primary responsibilities of companies
is to produce goods and services in a way that is profitable to their
owners.

Legal responsibilities: While assuming their fundamental economic

role, companies are expected to comply with the laws and regulation
that reflect society’s values and norms.

Ethical responsibilities: Businesses are also expected to abide by the

ethical norms of society. They are more ambiguous than legal
requirements and therefore more difficult for companies to anticipate
and follow.

Philanthropic responsibilities: Business may engage in activities

that go beyond the expectations of society, including volunteer work,
sponsorship, and donations.
 Consumer
Protection

Contract
Enforcement

Employee
Protection

ROLE OF GOV’T Environmental

GOVERNMENT
IN BUSINESS Protection

Investor
Protection

Permission

Taxation
 Promote Provide
Businesses Services

To the
Rescue
 Giant Private Corporations

Professional Organizations
ECONOMIC PRESSURE GROUPS
Trade Associations
PUBLIC PRESSURE GROUP
Trade Unions
PERSSURE GROUPS SECTORAL PRESSURE GROUP

RELIGIOUS/ ATTITUDE
PRESSURE GROUPS

GOVERNMENTAL PRESSURE
GROUPS
 Innocent is a young company selling fruits and smoothies an other healthy drinks. I t
was launched by Cambridge graduates in the United Kingdom and named Innocent to
reflect the healthiness of its product range. The entrepreneurs behind Innocent had
difficulties in finding the funding for their business, but the company soon became
successful an held 20 percent of market worth 20 million pounds.

 It also had a reputation of being organic and fun, partially due its delivery vehicles that
are painted to resemble cows. In 2009 its sold 10-20 per cent of its shares to Coca-Cola
in order to pay for an expansion in Europe. Critics saw this move as sell out to a
corporate giant that did not share Innocent’s values on natural ingredients. Innocent
defended its decision by maintaining that its business principles were not changing;
instead it was given an opportunity to affect the values of a much larger company.
What is you view on this? Did the Innocent sell its soul? Please explain.
 Can redistributing wealth also be good for
growth? Written by
 According to Gulf News Investment 2015
Culture and Diversity of
Development Education
Religion Choices

Wealth
Globalization Inflation Labor Market
Condensation
 Conclusion: Muslims of the world are among the poorest of the poor.
 Fact: Of the 1.4 billion Muslims 800 million are illiterate (6 out of 10
Muslims cannot read). In Christendom, adult literacy rate stands at 78
percent.
 The planet’s poorest countries include Ethiopia, Sierra Leone,
Afghanistan, Cambodia, Somalia, Nigeria, Pakistan and Mozambique. At
least six of the poorest of the poor are countries with a Muslim majority.
 Diagnosis 1: Muslims are poor, illiterate and weak because they have
‘abandoned the divine heritage of Islam’.
 Diagnosis 2: Muslims are poor, illiterate and weak because they have
refused to change with time.