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8/10/2019 Session 1 and 2_Introduction and Organization Theories
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Introduction
What is an organization?
Organization theoriesSession 1 and 2
1
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INTRODUCTION
Lecturer Inga Haase
Studyplan
Blackboard
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DEVELOPMENT IN THE
ENVIRONMENT
Read the Case: Philips NV - From
manufacturing-driven to custumer-driven
company (in book and on BB)
Discuss the case in groups and point out
which circumstances in the environment
forced Philips to changes
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DEVELOPMENT IN THE
ENVIRONMENT
Increasing complexity
What do you understand by complexity?
The gap between the knowledge, we already
have about the environment, and the
knowledge, we are extpected to have
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DEVELOPMENT IN THE
ENVIRONMENT
Printing machine (the art of
printing) meant increasning
dissemination of
knowledge in the society
Steam engine created the
fundament for mass
production
The global digital machine
(Internet) offers the
opportunity for interaction
with the whole world
without any timeshift
increasing complexity
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Current Challenges
Globalization
Ethics and Social Responsibility
Speed of Responsiveness
The Digital Workplace
Diversity in workforce
ORGANIZATION THEORY INACTION
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REFLECTION IN SMALL
GROUPS
Which organizational structure is better to
meet the challenges - top-down or bottom-
up? What are the pros and cons?
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Definition: organizations are (1) socialentities that (2) are goal-directed, (3) are
designed as deliberately structured and
coordinated activity systems, and (4) linked to
the external environment.
Types of Organizations
- Large, multinational corporations vs. family
owned businesses- For-profit business vs. non-profit organizations
8
WHAT IS AN ORGANIZATION?
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REFLECTION IN SMALL
GROUPS
Read counterpoint 1.5 (in book and on BB) and
reflect on the definition of organizations.What does that mean for a company in practice?
Build your reflection on concrete examples.
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PERSPECTIVES ON
ORGANIZATIONS
Two important perspectives on
organizations
Open systems approach
Organizational-configuration approach
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Open Systems
- Open sys tem thinking pays attention to the (open)
boundary between the organization and its context.
- Closed system design focuses exclusively upon the
organization without consideration of its dependence
upon or capacity to influence elements comprising its
context.
PERSPECTIVES ONORGANIZATIONS
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OPEN SYSTEM APPROACH
A system consists of
elements, that have
relationsto each other and that have a boarder to the outside world
In addition,
the elements are interdependent, and
the system has input and output
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STRUCTURE
CULTUREPROCESS
Input
Raw materials
Employees
Productionequipment
Capital
Ouput
Products
Services
How the operation is functioning.
The organization is divided into
responsibility and tasks. Workflow and rules.
The FRAMEWORK in the organization.
Norms, values and attitudes. You perceive
your self as being an organization.
Culture is something, that is, not something
the organization has.
The organization achieves its results through
the processes.
Procedures for management, communication,
decisions etc.
OPEN SYSTEM
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OPEN SYSTEMS
ATTENTION POINT
Individuals and groups frequently have differentinterests and goals they wish to achieve through theorganization and these differences can generateconflict
It is therefore a crucial management challenge tosecure a high degree of common agreement on theorganizations vision, strategies and goals
Information is powercontrol of information / notsharing of information is a source of power
Although many organizations shares informationopenly and broadly as suggested by open systemsthinking, it is doubtful if all information can be sharedopenly or be made available to all employees
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Organizational
Configuration
- Technical Core- Technical Support
- Administrative Support
- ManagementTop and
Middle
ORGANIZATIONAL-
CONFIGURATION APPROACH
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Structural Dimensions
Formalization
Specialization
Hierarchy of authority
Centralization
Professionalism
Personnel Ratios
Contextual Dimensions
Size
Organizational
technology
Environment
Goals and strategy
Culture
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DIMENSIONS OF
ORGANIZATION DESIGN
Key, internal characteristics Charterize both theorganization as a whole,
including its size, technology
etc. and the broader
organizational settings
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INTERACTING CONTEXTUAL ANDSTRUCTURAL DIMENSIONS OF
ORGANIZATION DESIGN
To understand and evaluate organizations, it is important to examine
both structural and contextual dimensions
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SAMPLE ORGANIZATION
CHART
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EXERCISE IN GROUPS
Read In practice GoreCarrefour Wales Millennium
Centre (in book and on BB)
Reflect on the relationship
between the description in
Exhibit 1.6 and the figure
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Group exercise
Measuring Dimensions of Organizations
(in book and on BB)
Choose two organization your group is familar
with
Analyze the two organizations along the
dimensions shown. Indicate where you think
each organization would fall on each of thescales
Answer the questions
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Efficiencyrefers to the amount of resources used to
achieve the organizations goals.
Effectiveness refers to the degree to which an
organization achieves its goals.
Stakeholder Approachbalancing the needs of groupsin and outside of the organization that has a stake in the
organizations performance.
A stakeholderis any group within or outside of the
organization that has a stake in the organizationsperformance.
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PERFORMANCE ANDEFFECTIVENESS OUTCOMES
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MAJOR STAKEHOLDER GROUPS
AND WHAT THEY EXPECT
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STAKEHOLDERS
CASE STUDYConflicts and
compromise in the Forest Products
Industry
Read the case
Discuss whether for-profit organizations and
non-profit organizations will use different
strategies to cope with their stakeholdersdiverse interests
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Historical perspectives
Efficiency is Everything Scientific Management: Pioneered by Frederick Winslow Taylor
Decisions should be based on precise, scientific studies to choose the method thatdelivers the greatest output
Focus on technical core Standardizing of procedures
Closed systems thinkingone best way of organizational design
How to Get Organized Administrative Principles
Focus on the design and functioning of the organization as a whole
Contributed to Bureaucratic Organizationsclearly defined authority and responsibility,formal recordkeeping and uniform application of standards rules
Closed systems thinkingone best way of organizational design What about People? Human Relation Theories
Hawthorne Studies
Dont Forget the Context Open systems thinking
Contingency: there must be a goodness of fit between structural and contextualdimensions.
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THE EVOLUTION OF ORGANIZATION
THEORY AND DESIGN
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Contemporary Organization Design As the context of organizations become more turbulent and complex,
managers and organizations face a range of intertwined challenges.
Managers are endeavoring to design and orchestrate new responsesthat, in general, are less mechanical and more organic
Chaos theorysuggests that relationships in complex systems arenonlinear and made up of numerous interconnections anddivergent choices.
Learning Organization is based on equality, open information,
little hierarchy and a culture that encouragesadaptability and participation.
Promotes collaboration so everyone is engaged in identifying and solvingproblems, enabling the organization to experiment and improve
THE EVOLUTION OF ORGANIZATIONTHEORY AND DESIGN
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CLASSICAL THEORIES
Organization of production Secure efficiency in production
The leader sets the tasks
Workers receives detailed instructions
High degree of specialization
Workers sought employment just to earn money
Bases on closed system thinking overlooking how employees develop a
sense of identity and meaning outside of the workplace
Design and functioning of the organization as a
whole
Planning and control of the flow in the
organization
Planning / Organizing / Give instructions /
Coordinating / Controlling
Three significang principles for effective
leadership:
Specialization Centralization / Decentralization
Only one superior
Organization of the production
Secure efficiency in the administration
Rationality as bearing value
Clearly defined authority and responsibility, formal
recordkeeping and uniform application of standard rules
It replaced nepotism and other forms forms of favouritis
impartial processes
Scientific
management
Administratives
principles
Bureaucratic
organizations
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POSTMODERN THEORIES
Organizations as closed mental and social systems, that by them self chooseswhich informations they take in, and that manage them selves from inside
This means people and organization are self-gerating which itself createsmeaning on the basis of the informations, they by them self have choosen
The leader can not directly affect
down the organization.
Middlemanagers and employees will
by them self create their meaning
based on the information, they find
relevant.
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Efficient Performance Versus The LearningOrganization
From Vertical to Horizontal Structure
From Routine Tasks to Empowered Roles
From Formal Control Systems to SharedInformation
From Competitive to Collaborative Strategy
From Rigid to Adaptive Culture
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THE EVOLUTION OF ORGANIZATIONTHEORY AND DESIGN
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TWO ORGANIZATION DESIGN
APPROACHES
THE IMPORTANCE OF
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THE IMPORTANCE OF
LEARNING IN
ORGANIZATIONS
An interview with David Garvin andAmy Edmondson, Professors, Harvard
Business School. Learning
organizations generate and act on new
knowledge. The ability to do this
enables companies to stay ahead of
change and the competition.
http://www.youtube.com/watch?v=lUP4WcfNyAA8/10/2019 Session 1 and 2_Introduction and Organization Theories
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REFLECTION IN GROUPS
Read In practice Cementos Mexicanos (inbook and on BB) This case illustrates an organization that is
transforming into a learning organization
Discuss the characteristics of a learningorganization and write key-characteristicsdown (use your own words)
Are there industries, where the concept oflearning organizations are likely to beadapted? Argue for your answer
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Multiple choice (on BB)
Answers will come on BB