Transcript 3360-01.ppt

What are Organizations?
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DEFINED:
1) social entities
2) goal-directed
3) deliberately
structured and
coordinated activity
systems
• 4) linked to external
environment
CEO
VP Sales
VP Production
VP Finance
Types of Organizations
• Small / Large
• Manufacturing /
Service
• Domestic /
Multinational
• For-profit /
Not-for-profit
Dimensions of Organization
Design
• 1) Structural
Dimensions
– describe the internal
characteristics of an
organization
• 2) Contextual
Dimensions
– everything that
shapes the structure of
the organization
Structural Dimensions
• 1) Formalization
• 2) Specialization
• 3) Hierarchy of
Authority
• 4) Centralization
• 5) Professionalism
• 6) Personnel Ratios
Structural Dimensions
• 1) Formalization:
- the amount of written
documentation in the
organization
- Include procedures,
job descriptions,
regulations, and policy
manuals
Structural Dimensions
• 2) Specialization:
- the degree to which
organizational tasks
are subdivided into
separate jobs
- Skilled trades often
exhibit a high degree
of specialization
Structural Dimensions
• 3) Hierarchy of
Authority:
- describes who reports
to whom and the span
of control of each
manager
- The number of layers
of management: tall
vs. flat organizations
Structural Dimensions
• 4) Centralization:
- refers to the
hierarchical level that
has authority to make
a decision
- Centralized decision
making (at top) gives
little discretion to
lower level employees
Structural Dimensions
• 5) Professionalism:
- is the level of formal
education and training
of employees
- accounting firms have a
high level of
professionalism
Structural Dimensions
• 6) Personnel Ratios:
- refer to the
deployment of people
to various functions
and departments
- Measures include
various ratios such as
administrative ratio
Contextual Dimensions
• 1) Size
• 2) Organizational
Technology
• 3) Environment
• 4) Goals & Strategy
• 5) Culture
Contextual Dimensions
• 1) Size:
- is the organization’s
magnitude as reflected
in the number of
people in the
organization
- organization as a
social system
Contextual Dimensions
• 2) Organizational
Technology
- is the nature of the
production subsystem
that changes inputs to
outputs
- Includes assembly
lines, classrooms, oil
refineries, etc.
Contextual Dimensions
• 3) Environment:
- includes all elements
outside the boundaries
of the organization
- Includes customers,
suppliers, competitors,
government, etc.
Contextual Dimensions
• 4) Goals & Strategy:
- define the purpose and
competitive techniques
that set one
organization apart
from others
- Includes mission
statements and plans
of action
Contextual Dimensions
• 5) Culture:
- is the underlying set of
key values, beliefs,
understandings, and
norms shared by
employees
- May be observed in
stories, symbols,
ceremonies, etc.
As environments become more
turbulent, organizations change…
• From vertical to horizontal
structures
• From routine tasks to
empowered tasks
• From formal control to
shared information
• From competitive to
collaborative strategy
• From rigid to adaptive
control