 Current Challenges

FUNDAMENTALS
 Globalization  The Digital Workplace
OF ORGANISATION
 Ethics and Social Responsibility  Diversit
 Speed of Responsiveness
CHAPTER ONE
 Organisation: organizations are (1) social entities that (2) are goal‐directed, (3)
are designed as deliberately structured and coordinated activity systems, and (4)
linked to the external environment.
STRATEGY,
 Importance of organisations
ORGANISATION
 Bring together resources to achieve desired goals and outcomes
DESIGN AND
 Produce goods and services efficiently
EFFECTIVENESS
 Create value for owners, customers and employees
 Challenges:
 Facilitate innovation
 Use modern manufacturing and information technologies
 Adapt to and influence a changing environment
 Accommodate ongoing challenges of diversity, ethics, and the motivation
and coordination of employees
 Open system 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
Organisation: comprising its context
organizations are (1)  Strategy: It is a plan for interacting with the competitive environment.
social entities that (2)  The increased relevance of organization design: because of the identification
are goal‐directed, (3) of a direct link between organization and competitive advantage
are designed as  According to Porter, strategy is a positioning process (Positioning School). The
deliberately structured position explains the competitive advantage.
and coordinated activity  Low cost leadership: this strategy
systems, and (4) linked tries to increase market share by
to the external emphasizing low cost compared to
competitors (e.g. Ryanair).
environment
 Differentiation: organizations
attempt to distinguish their products or
Strategy: It is a plan for
services from others in the industry (e.g.
interacting with the
Rolex watches).
competitive
 Focus: focused low cost and focused
environment
differentiation. The organization concentrates on a specific regional market or buyer
group (e.g. Puma).
Organization design is  Organization design is the set of choices regarding the allocation and
the set of choices combination of resources and activities.
regarding the allocation  What resources to be allocated to
and combination of what activities and what activities to be
resources and activities allocated to what units? (structure as
choice of labour division)
 How to coordinate the activities
allocated to different units? (structure as
choice of coordination)
 How to motivate people to do the assigned activities? (mechanisms and culture)