Lecture One

Organisations and Organisation Theory

Thomson Learning © 2004

1-1

Lecture Structure       Organisation Theory in Action: Xerox What is an Organisation? Current Challenges to Organisations Perspectives on Organisations Organisational Design What is Organisational Theory? Thomson Learning © 2004 1-2 .

Organization Theory in Action  Xerox       Classic example of organisational decline Founders created successful. people oriented culture based on involvement Excellent main product blinded company to potential of new innovations Crippled by bureaucratic culture . slow to enter new product markets. disabled by conflict New leader – renewal … ? Thomson Learning © 2004 1-3 .“Burox” Poor diversification strategy.

and (4) are linked to the external environment” (Daft. (3) are designed as deliberately structured and coordinated activity systems. 2004: 11) Thomson Learning © 2004 1-4 .What is an Organization?  Definition “Organisations are (1) social entities that (2) are goal-directed.

customers and employees  Facilitate innovation by using modern manufacturing and information technologies  Thomson Learning © 2004 1-5 .What is an Organization? Bring together resources to achieve desired goals and outcomes  Produce goods and services efficiently to create value for owners.

and the motivation and coordination of employees  Thomson Learning © 2004 1-6 .What is an Organization? Adapt to and influence a changing environment  Accommodate ongoing challenges of diversity. ethics.

Current Challenges for Organisations Global Competition  Ethics and and Social Responsibility  Speed of Responsiveness  The Digital Workplace  Diversity  Thomson Learning © 2004 1-7 .

suppliers and competitors System designed to acquire inputs. transform them and discharge outputs to external environment Importance of subsystems in organisations Thomson Learning © 2004 1-8 .Perspectives on Organisations  Closed Systems  Not dependent on environment – internal efficiency  Open Systems    Environment vital – customers.

Adaptation. Management Thomson Learning © 2004 Boundary Spanning 1-9 .An Open System and Its Subsystems Environment Raw Materials People Information resources Financial resources Transformation Input Process Boundary Spanning Output Products and Services Subsystems Production. Maintenance.

1981): 103-116. N. The Structuring of Organizations (Englewood Cliffs. Thomson Learning © 2004 1-10 . 1979) 215-297.: Prentice-Hall. “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan.Perspectives on Organisations Top Management Technical Support Middle Management Administrative Support Technical Core Source: Based on Henry Mintzberg. – Feb. and Henry Mintzberg. J.

Organisational Design  Structural   Labels to describe internal characteristics Requirements for organising efficient internal operations Characterise the whole organisation and describe the organisational setting in detail Importance of Stakeholders Thomson Learning © 2004 1-11  Contextual   Performance and Effectiveness Outcomes  .

5. 3. 6. Structure Formalization Specialization Hierarchy of Authority Centralization Professionalism Personnel Ratios Technology Thomson Learning © 2004 1-12 .Goals and Strategy Environment Size Culture 1. 2. 4.

Stakeholders for Organisations THE WIDER ENVIRONMENT THE NATURAL ENVIRONMENT Pollution IMMEDIATE STAKEHOLDERS Creditors Government Local Community THE ORGANISATION Customers Suppliers Employees Regulatory Interest Groups Owners and Investors Sustainability of Resources Thomson Learning © 2004 Source: Rollinson with Broadfield (2002: 48) 1-13 .

Rise of e-commerce.What is Organisational Theory?   Different from Organisational Behaviour Developing the field  Rational Perspectives  Scientific Management (Taylor). Administrative and bureaucratic design (Fayol / Weber)   Hawthorne Studies Contingency Perspective Global Competitiveness. Primacy of knowledge and information. Meaningful work and personal growth Thomson Learning © 2004 1-14  Contemporary Organisational Design  .

: Harvard Business School) Thomson Learning © 2004 1-15 . Mass. Hurst. Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston.Efficient Performance v The Learning Organisation: Two Organisation Design Approaches Mechanical System Design Vertical Structure Natural System Design Horizontal Structure Routine Tasks Rigid Culture Organizational Change in the Service of Performance Empowered Roles Adaptive Culture Formal Systems Competitive Strategy Shared Information Collaborative Strategy Stable Environment Efficient Performance Turbulent Environment Learning Organisation Source: Adapted from David K.

Summary and Conclusions     Organisational Theory is study of aggregate behaviour of individuals in organisations Organisations are important in society Need for understanding of structure and systems to cope with current challenges Interesting trends in organisational design and management practices Thomson Learning © 2004 1-16 .

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