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Organizations. What are Organizations?. Organizations are “social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems and are linked to the external environment.” Must be flexible!. “Social Entities”.
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What are Organizations? • Organizations are “social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems and are linked to the external environment.” • Must be flexible!
“Social Entities” • Companies are based on human interaction • Companies are becoming more involved with one another • Companies support social organizations
“Goal-directed” • Types of Organizations • Large and small • Profit and nonprofit • Nonprofit • Chief goal: “Social impact” • Funded by donors and grants
Goal-setting for Profit Firms • Profit • Chief goal: To make $$$$ • Efficiency v. Effectiveness • What ARE our goals? • Stakeholder satisfaction
What else do Organizations do? • Bring together resources to achieve desired goals and outcomes • Produce goods and services efficiently • Facilitate innovation • Use modern manufacturing and information technologies
What else do Organizations do? • 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
Open Systems Approach People Raw Materials Finances Information Technology Transformation People Raw Materials Finances Information Technology Transformation Process Inputs Outputs
Organizational Dimensions • Structural • “Internal characteristics of the organization” • Components • Formalization • Specialization • Hierarchy of authority • Centralization • Professionalism • Personnel ratio
Organizational Dimensions • Contextual Dimensions • “The whole organization” • Components • Size • Organizational technology • Environment • Goals and strategy • Culture
“Structured and Coordinated Activity Systems” • Mechanistic v. Organic • Which structure is best?
Mechanistic v. Organic • Structure • Mechanistic- Vertical • Organic- Horizontal • Employee Roles • Mechanistic- Routine tasks • Organic- Empowered tasks • Communication • Mechanistic- Formal channels • Organic- Shared information
Mechanistic v. Organic • Strategic Decisions • Mechanistic- Top management • Organic- Employees • More communication! • Culture • Mechanistic- Rigid (Xerox) • Organic- Adaptive
Level of Analysis Individual Group Organizational External Environment