Chapter One

Organizations and
Organization Theory

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South-Western College Publishing 1-1
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
Organization Theory in Action
 Topics
 Current Challenges
• Global competition
• Organizational turbulence
• E-commerce
• Managing knowledge and information
• Diversity
• Ethics and social responsibility
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South-Western College Publishing 1-2
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Daft, Organization Theory and Design 7/e
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 computer-
based technology
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South-Western College Publishing 1-3
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Daft, Organization Theory and Design 7/e
 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
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South-Western College Publishing 1-4
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
 An Open System
and Its Subsystems
Environment

Raw Materials Transformation

People
Information Products
resources Input Output and
Financial Services
resources
Process

Production,
Boundary Boundary
Subsystems Spanning
Maintenance,
Spanning
Adaptation,
Management
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South-Western College Publishing 1-5
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
 Five Basic Parts of an
Organization
Top
Management

Technical Middle Administrative

Support Management Support

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.
©2000
South-Western College Publishing 1-6
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
 Goals and
Strategy
Environment Size

Culture Technology
Structure
1. Formalization
2. Specialization
3. Hierarchy of Authority
4. Centralization
5. Professionalism
6. Personnel Ratios

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South-Western College Publishing 1-7
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
 Organization Chart Illustrating the Hierarchy of Authority
for a Community Job Training Program

Board of
Directors

Advisory Executive
Committee Committee

Level 1 Executive
Director

Level 2 Assistant Executive Director Assistant Executive Director

for Community Service for Human Services

Level 3 Director Director Director Director Director Director Director

Economic Dev. Reg. Planning Housing Criminal Justice Finance AAA CETA

Public Asst. Director Lead Lead

Info Finance Counsel Counsel
Coord.

CETA CETA CETA

CETA
Couns. Couns. Couns.
Intake
Program Contract Program Devs. Devs. Devs.
&
Housing Alcohol Spec. Fiscal Planner Title II Youth Title II D CETA
Level 4 Coord. Coord.
Account. AAA Manager AAA
Orient
ABC IV &VI&VII Planner

Records
Level 5 Secretary Clerk Secretary Adm. Asst Payroll Clerk Secretary MIS Specialist Staff Clerk Adm. Asst.

©2000
South-Western College Publishing 1-8
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
 Characteristics of three
Organizations
100
Formalization

Specialization
50
Centralization

Configuration
(%nonworkflow 0
W.L. Gore & Wal-Mart State Arts
personnel)
Associates Agency

TECHNOLOGY Manufacturing Retailing Government

Service
SIZE (#employees) 4,200 200,000 35
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South-Western College Publishing 1-9
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
 Two Organization Design
Paradigms
Mechanical System Paradigm Natural System Paradigm

Vertical Horizontal
Structure Structure

Organizational Change
Routine Rigid Empowered Adaptive
in the service of
Tasks Culture Roles Culture
performance and
survival

Formal Competitive Shared Collaborative

Systems Strategy Information Strategy

Stable Environment Turbulent Environment

Efficient Performance Learning Organization

Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)

©2000
South-Western College Publishing 1-10
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
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
©2000
South-Western College Publishing 1-11
Cincinnati, Ohio
Daft, Organization Theory and Design 7/e
Workbook
Activity
IBM
Use for 1975-1990, Use for 1993-present

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
©2000
South-Western College Publishing 1-12
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Daft, Organization Theory and Design 7/e
 DEFINICIONES
DESEMPEÑO Y RESULTADOS
DE EFECTIVIDAD

Benjamin Garcia Garcerant

 DEFINICIONES
EFICIENCIA:

PETER DRUCKER:”HACER
LAS COSAS BIEN HECHAS”

Benjamin Garcia Garcerant

 DEFINICIONES
EFICACIA:

PETER DRUCKER:”HACER LO
QUE SE TIENE QUE HACER”

Benjamin Garcia Garcerant

 EFICIENCIA
KN R A
OW OB
HO DE
W N O
A
M
PRODUCTOS O
PROCESO SERVICIOS
A IN
I M SU
PR M
I A OS
ER
AT
M

Benjamin Garcia Garcerant

 EFICACIA

A
BR
O
K

E
N

D
O
W

O
N
H

A
O

M
W

OB
PROCESO PRODUCTOS O

JE
IN SERVICIOS

TI
SU
A

VO
IM

M
PR

OS
A
ERI
AT
M

Benjamin Garcia Garcerant

 PRODUCTIVIDAD, EFICACIA Y
EFICIENCIA

Productividad
La relación producto – insumos en un período específico con la
debida consideración de calidad.

Productividad = Productos
Insumos

Eficacia
Cumplimiento de objetivos

Eficiencia
Logro de las metas con la menor cantidad de recursos.

Benjamin Garcia Garcerant

 ¿CUÁL ES LO MEJOR?

 Ser Eficiente
 Ser Eficaz
 Ser Efectivo

Benjamin Garcia Garcerant

 EFICIENCIA
Enfasis en los medios
Hacer las cosas
correctamente
Resolver problemas
Ahorrar gastos
Cumplir tareas y
obligaciones
Capacitar a los
subordinados
Enfoque reactivo
(del pasado al presente)
¿Pregunta Principal?
¿Cómo hacer mejor lo que
hacemos?
Benjamin Garcia Garcerant
EFICACIA
Enfasis en los resultados
Hacer las cosas correctas
Lograr objetivos
Crear más valores
Obtener resultados
Proporcionar eficacia a
subordinados
Enfoque proactivo
(del futuro al presente)
¿Qué es lo que deberíamos
estar haciendo?
 EFICIENCIA (¿CÓMO LO HAGO?)

ALTA BAJA

HAGO BIEN Hago mal

EFICACIA ALTA LO ADECUADO lo adecuado

(¿QUÉ HAGO?)
BAJA Hago bien HAGO MAL
lo inadecuado LO
INADECUADO

Cuidado
Benjamin Garcia Garcerant
 “Ningún grado de eficiencia puede
compensar la falta de eficacia.

Antes de dedicarnos a hacer algo en forma

eficiente, tenemos que estar seguros de que
hemos encontrado algo acertado para
realizar”
Peter Drucker

Benjamin Garcia Garcerant

 EFICIENCIA - EFICACIA

A
BR
O
K

E
N

D
O
W

O
N
H

A
O

M
W

OB
PROCESO PRODUCTOS O

JE
IN SERVICIOS
SU

TI
A
IM

VO
PR

OS
A
ERI
AT
M

EFICIENCIA
Benjamin Garcia Garcerant
 EFECTIVIDAD
TOTAL

INSUMOS PROCESO MEDIO

RESULTADO
AMBIENTE.

EFICIENCIA EFICACIA

EFECTIVIDAD TOTAL.
Benjamin Garcia Garcerant
 EFECTIVIDAD
TOTAL

¿ Que importancia tiene los grupos de interés en la efectividad organizacional?

¡¿ Cual es el impacto del desempeño eficiente y las organizaciones que aprende?

Benjamin Garcia Garcerant