Organization and Management

Organization- Bring people to work together towards a common objective, same videion,
collaborations, interaction

A collection of people working together in a division of labour to achieve a common purpose.

Formal structure: processes, procedures

Management- Handling resources efficiently, Planning, coordinating, Control, Processes, bring
people to work together, get the best out of different potentials

Volatile- everything keeps changing

Uncertain- you don’t know what’s coming next
Complex- multiple factors come into play, you don’t know if your decision is right
Ambiguous- information can be interpreted in different ways

Purpose of organizations-
To fulfill the need expressed by society / answer a market need in the long run– social need,
material need, etc.
-useful contribution to society
-sustainability

Resources:
People
Transformation
Money process: Workflows
Finished goods
Materials turn resources into
outputs
Technology
Information
Management- art of making right decisions, achieve the abojectives, resources at large

Changes

Environmental changes
1. Climate change
2. Pollution – more production > health issues
3. Competition
4. Population growth
5. Better health infrastructure
6. Pandemic
7. Post war disruptions
 8. Exploitation of resources
9. Technology development
10. Globalization
11. Internet and Digitalization- data, information sharing

Type 1 Organization- Good for specialization, not good for coordination, horizontal and vertical
division

Type 2 Organization – Within one division – people from different expertise (SBUs). Capacity to
generate economies of scale is reduced. Good for coordination, not for specialization

Type 3 Organization - Mixed, subsidiarity principle, autonomy, collaboration, accountability,

communication, project, flat

Workshop: summary of content on organization theory

Characteristics

Taylorism and Human Relations-

Contingency theory- optimal decision making depends on various internal and external
constraints eg. Size of org, resources, expectations of managers about employees, strategies,
technology

Contingency Theory of Organization

Contingency Theory of Leadership
Contingency Theory of Decision Making
Contingency Theory and Situational Theory

Sociodynamic Theory
Holacracy – agile, efficient, transparency, innovation, accountability (pros)

Lean Management – faster production cycle, efficiency improvements, productivity and

profitability improvements, JIT

Liberated - Allows employees complete freedom and responsibility to take actions

No apparent hierarchy – more horizontal
Trust between employees

Eg. Decathlon, Airbus