Professional Documents
Culture Documents
Organizations and
Organization Theory
Thomson Learning
© 2004 1-1
Organization Theory in Action
Topics
Current Challenges
Global Competition
Ethics and and Social Responsibility
Speed of Responsiveness
The Digital Workplace
Diversity
Thomson Learning
© 2004 1-2
What is an Organization?
Definition
Importance of Organizations
Bring together resources to achieve desired
goals and outcomes
Produce goods and services efficiently
Facilitate innovation
Use modern manufacturing and
information technologies
Thomson Learning
© 2004 1-3
Importance of Organizations
Importance of Organizations (cont’d)
Adapt to and influence a changing
environment
Create value for owners, customers and
employees
Accommodate ongoing challenges of
diversity, ethics, and the motivation and
coordination of employees
Thomson Learning
© 2004 1-4
An Open System
and Its Subsystems
Environment
Production,
Boundary Boundary
Subsystems Spanning
Maintenance,
Spanning
Adaptation,
Management
Thomson Learning
© 2004 1-5
Five Basic Parts of an
Organization
Top
Management
Technical Core
Source: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) 215-297;
and Henry Mintzberg, “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan. – Feb. 1981): 103-116.
Thomson Learning
© 2004 1-6
Goals and
Strategy
Environment Size
Culture Technology
Structure
1. Formalization
2. Specialization
3. Hierarchy of Authority
4. Centralization
5. Professionalism
6. Personnel Ratios
Thomson Learning
© 2004 1-7
Organization Chart Illustrating the Hierarchy of Authority
for a Community Job Training Program
Board of
Directors
Advisory Executive
Committee Committee
Level 1 Executive
Director
Records
Level 5 Secretary Clerk Secretary Adm. Asst Payroll Clerk Secretary MIS Specialist Staff Clerk Adm. Asst.
Thomson Learning
© 2004 1-8
Characteristics of Three
Organizations
100
Formalization
Specialization
50
Centralization
Configuration
(%nonworkflow 0
W.L. Gore & Wal-Mart State Arts
personnel)
Associates Agency
Vertical Horizontal
Structure Structure
Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)
Thomson Learning
© 2004 1-10
Workbook
Activity
Organizational Dimensions
High Formalization 1-4 5-6 7 - 10 Low Formalization
High Specialization 1-4 5-6 7 - 10 Low Specialization
Tall Hierarchy 1-4 5-6 7 - 10 Flat Hierarchy
Product Technology 1-4 5-6 7 - 10 Service Technology
Stable Environment 1-4 5-6 7 - 10 Unstable Environment
Strong Culture 1-4 5-6 7 - 10 Weak Culture
High Professionalism 1-4 5-6 7 - 10 Low Professionalism
Well-Defined Goals 1-4 5-6 7 - 10 Poorly-Defined Goals
Small Size 1-4 5-6 7 - 10 Large Size
Modern 1-4 5-6 7 - 10 Postmodern
Thomson Learning
© 2004 1-11
Workbook
Activity
Xerox
Use for 1959-1990, Use for 1990-present
Thomson Learning
© 2004 1-12