2. What is an organization
• A tool people use to coordinate their actions
to obtain something they desire or value.
• Consciously coordinated social entity, with a
relatively identifiable boundary that functions
on a relatively continuous basis to achieve a
common goal or a set of goals.
3. How does it create value?
• Unilever recently announced that their brands
who have adopted goals from their
Sustainable Living Plan, such as Lifebuoy and
Dove, grew 30% faster than those who did not
embrace purpose, and delivered almost 50%
of the company’s growth
4. How does it create value?
● 60% of millennials believe that a sense of purpose is part of the reason
they chose to work at their current employer
● 90% want to use their skills to create positive social impact
● 87% millennials believe that the success of a business should be
measured in terms of more than just financial performance
● In the Global Shapers Annual Survey 2015, six in ten millennials
indicated that an opportunity to “make a difference in society, my city, or
my country” is the top factor they look for in a job.
5. How an Organization creates Value
Organizational Inputs
(Org obtains inputs from
the environment)
•Raw material
•Money
•HR
•Informational & knowledge
•Customers of service
organizations
•Organizations Outputs
(org releases outputs to
environment)
•Finished goods
•Services
•Dividends
•Salaries
•Value for stakeholders
Organizations
Environment
(sales of outputs allows
org to obtain new
supplies of inputs)
•Customers
•Share holders
•Suppliers
•Distributors
•Govt
•Competitors
Conversion process
(org gets inputs and adds
value)
•Machinery
•Computers
•Human skills and abilities
6. What is a 'Stakeholder'
• A stakeholder is a party that has an interest in a
company, and can either affect or be affected by the
business. The primary stakeholders in a typical
corporation are its investors, employees and
customers. However, the modern theory of the idea
goes beyond this original notion to include additional
stakeholders such as a community, government
,suppliers and society at large.
7. Why do organizations exist?
• To increase specialization and division of labor
• To use large scale technology
• To manage organizational environment
• To economize on transaction costs
• To exert power and control
10. Organizational Theory
• The study of how organizations function and
how they effect and are affected by this
environment in which they operate
Org Theory
Org
Structure
Org culture
