Site Management Organizatonal Env.

Theory

Organization - Generally
A tool used by people to coordinate their actions to obtain something they desire or value to achieve goal Why?
the production of goods and services most often takes place in a organizational setting because people working together to produce goods and services usually can create more value than people working separately.

Organizational Environment
Consider the relationships inside and outside the organization
The environment consist of forces, condition, and influence outside the organization

System Theory

Inputs Organization obtains inputs from its environment - Raw materials - Money and capital - Human resources - Information and knowledge - Customer of services organization Environment Sales output allow organization to obtain new supplies of inputs - Customer - Shareholders - Suppliers - Distributors - Government - Competitors

Conversation Process Organization transforms input and adds value to them - Machinery - Computers - Human skills and abilities

Outputs

Release output to its environment - Finished goods - Services - Dividends - Salaries - Value for stakeholders

Example.. McD
Inputs Mc Ds Inputs

Raw materials Money and capital Human resources Information and knowledge - Customer of services organization

- ( beaf, sandwich and etc) - Shareholder investment - Cookers, clean upcrew, order takers, managers - training, knowledge etc - Customer

Example.. McD Example.. McD

Conversation Process Mc Ds Conversation Process

Organization transforms input and adds value to them - Machinery - Computers - Human skills and abilities

Organization transforms input and adds value to them - grills, toaster, etc - Computerize cash register, ordering system etc - Using recipe, potato frying

Example.. McD Example.. McD

Outputs

Mc Ds Outputs

Release output to its environment - Finished goods - Services

Release output to its environment - Fast and cheap food - Satisfy Customer

Example.. McD Example.. McD

Environment Sales output allow organization to obtain new supplies of inputs - Customer - Shareholders - Suppliers Mc Ds Environment Sales output allow organization to obtain new supplies of inputs - Satisfied Customer - Potential Costumer - Suppliers of meat etc - Government Regulation - Competitors Fried Chiken) Health (Kentucky

- Government
- Competitors

Demographic & Cultural forces

International forces

Political Forces

Customer

Distributor

Government

The Organization

Unions

Supplier

Competitors

Environmental forces

Economic Forces

Technological Forces

General Environment

Specific Environment

Sources : Gareth R. Jones Organizational Theory Design and Change Fifth Edition

Specific Environment
Specific - forces from outside stakeholder groups that directly affect organizations ability to secure resources.

Sources : Gareth R. Jones Organizational Theory Design and Change Fifth Edition

General Environment
The forces that shape the specific environment and affect the ability of all organizations in a particular environment to obtain resources.

Sources : Gareth R. Jones Organizational Theory Design and Change Fifth Edition

Advantages
Increase specialization Use large-scale technology Economize on transaction cost Exert power and control

References
Jones, G. R. (2007). Organizational Theory Design, and Change Fifth Edition. New Jersey: Pearson.