2011.02.cesa politics 02

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2011.02.cesa politics 02

  1. 1. Week Two<br />
  2. 2. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Boundary/Environment<br />7. Adaptation and Change<br />8. Technology<br />9. Communication<br />
  3. 3. Types of Organizations<br />Service<br />Production<br />Governmental/Regulatory<br />Professional<br />Advocacy<br />Fund Raising<br />Religious<br />Communal<br />Total<br />
  4. 4. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals: <br /> Unrealized state that org members deem desirable <br /> -- mission, products, services . . .<br /> OT: Challenge for orgs = Multiple goals (especially when they are at cross-purposes)<br />
  5. 5. Organizational Characteristics: Cornerstones of Organizational Theory<br />1. Goals:<br />Unrealized state that members deem desirable -- mission, products, services . . .<br /> Challenge = Multiple goals (esp when at cross-purposes)<br /> Resolution: Top management must <br /> (a) achieve balance between competing goals <br /> (b) clearly define and communicate goals<br /> Why? <br /> Design and maintenance of the organization <br /> Coordination <br /> Motivate members, increase identification w/the organization <br />
  6. 6. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals<br />2. Work<br /> Type(s) of activity needed to accomplish goals (jobs)<br /> Primary (line) versus secondary (staff) work<br /> OT: How should these functions relate?<br />
  7. 7. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals<br />2. Work<br />3. Power and Authority<br /> Power = ability to influence successfully through individualfactors<br /> knowledge, skills, money, personality . . .<br /> Authority = influence through officialrecognition by/role in organization<br /> OT: What is relationship between these for organizational effectiveness?<br /> (e.g., leadership versus ‘managership’)<br />
  8. 8. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />Success/opportunities --> org growth (including size of org)<br /> More members --> assigned to subunits & tasks (delegation)<br /> Delegation --> role elaboration (variance in jobs) <br /> Increased size and role elaboration --> org complexity<br /> (formalization in written rules, policies, procedures)<br />
  9. 9. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />Role elaboration --> how units to be formed/fit together<br /> Decisions about form/fit --> org design (structure/process)<br /> Structure - e.g., hierarchical work arrangements<br /> Process - e.g., deciding work flow<br /> Design decisions --> work and unit differentiation<br />Differentiation must be balanced by integration<br />
  10. 10. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design (con’t)<br /> OT: What are the structures and processes <br /> that organizations utilize to promote integration? <br />
  11. 11. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design (con’t)<br /> OT Integration mechanisms? <br /> mission, power & authority, control systems, job design, selection & training, reward systems, performance appraisal & feedback, job rotation, CFTs, site visits, socialization processes, retreats, strategic planning, <br /> communication (meetings, f-to-f, org wide strategic) <br />
  12. 12. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Environment<br /> = all groups, norms, and conditions w/which org must deal<br /> -- critical to org’s inputs and for org’s outputs<br /> -- must have boundaries though which inputs/outputs pass<br />
  13. 13. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Environment<br /> -- critical to org’s inputs and for org’s outputs<br /> -- must have boundaries though which inputs/outputs pass<br />MANAGING INPUTS: market research, IS security, sales reports, legal counsel, planners’ & analysts’ activities<br />MANAGING OUTPUTS: PR releases, distributions systems, trade agreements, non-compete clauses/contracts <br />
  14. 14. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Environment<br />7. Adaptation and Change<br /> Orgs exist in turbulent environments w/ discontinuous change<br /> OT: How do orgs build in flexibility to deal <br /> w/ actual and potential environments?<br /> Mechanisms?<br />
  15. 15. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Environment<br />7. Adaptation and Change<br /> Mechanisms to deal w/ actual and potential environments?<br /> strategic planning, internal task forces, consultants,<br /> philosophy, human resources, diversity initiatives, new product development, globalization, marketing plans, strategic internal and external communication<br />
  16. 16. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Boundary/Environment<br />7. Adaptation and Change<br />8. Technology<br /> = The art and science employed in production/distribution <br /> of the organization’s goods and services<br /> Examples?<br />
  17. 17. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Boundary/Environment<br />7. Adaptation and Change<br />8. Technology<br /> Examples?<br /> QWL, CPI, 360 Feedback, Six Sigma, Change Mngt,<br /> Plant Optimization, Inventory Controls, Tracking systems<br />
  18. 18. Organizational Characteristics: Cornerstones of Organizational Theory (OT)<br />1. Goals <br />2. Work<br />3. Power and Authority<br />4. Size and Complexity<br />5. Design<br />6. Boundary/Environment<br />7. Adaptation and Change<br />8. Technology<br />9. Communication<br /> a) Often treated only as information transmission in OT<br /> b) Or as integration mechanism (coordination, cooperation)<br /> c) But also is symbolic exchange and sense making<br />
  19. 19. Apply the organizational Characteristics to case<br />Case One<br />
  20. 20. How Does an Organization Create Value?<br />Copyright 2007 Prentice Hall<br />20<br />Value creation takes place at three stages: input, conversion and output<br />Inputs: include human resources, information and knowledge, raw materials, money and capital<br />Conversion: the way the organization uses human resources and technology to transform inputs into outputs<br />Output: finished products and services that the organization releases to its environment <br />
  21. 21. Figure 1 – 1: How An Organization Creates Value<br />Copyright 2007 Prentice Hall<br />21<br />
  22. 22. Why Do Organizations Exist?<br />Copyright 2007 Prentice Hall<br />22<br />To increase specialization and the division of labor<br />To use large-scale technology <br />Economies of scale: cost savings that result when goods and services are produced in large volume<br />Economies of scope: cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across several different products or tasks<br />
  23. 23. Why Do Organizations Exist? (cont.)<br />Copyright 2007 Prentice Hall<br />23<br />To manage the external environment<br />Pressures from the external environment make organizations the favored mode for organizing productive resources<br />To economize on transaction costs<br />Transaction costs: the costs associated with negotiating, monitoring, and governing exchanges between people who must cooperate<br />To exert power and control<br />
  24. 24. Figure 1-3: Why organizations exist<br />Copyright 2007 Prentice Hall<br />24<br />
  25. 25. Organizational Theory, Design, and Change: Some Definitions<br />Copyright 2007 Prentice Hall<br />25<br />Organizational theory: the study of how organizations function and how they affect and are affected by the environment in which they operate<br />Organizational structure: the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals<br />
  26. 26. Some Definitions (cont.)<br />Copyright 2007 Prentice Hall<br />26<br />Organizational culture: the set of shared values and norms that control organizational members’ interactions with each other and with suppliers, customers, and other people outside the organization<br />Organizational design: the process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals<br />
  27. 27. Some Definitions (cont.)<br />Copyright 2007 Prentice Hall<br />27<br />Organizational change: the process by which organizations move from their present state to some desired future state to increase their effectiveness<br />
  28. 28. Figure 1-4: Relationships Among Organizational Theory, Structure, Culture, Design and Change<br />Copyright 2007 Prentice Hall<br />28<br />
  29. 29. Importance of Organizational Design and Change<br />Copyright 2007 Prentice Hall<br />29<br />Dealing with contingencies<br />Contingencies are events that might occur and must be planned for<br />Gaining competitive advantage<br />The ability to outperform other companies because of the capacity to create more value from resources<br />Core competences: skills and abilities in value creation<br />Strategy: pattern of decisions and actions involving core competences that produces a competitive advantage<br />
  30. 30. Importance of Organizational Design and Change (cont.)<br />Copyright 2007 Prentice Hall<br />30<br />Managing diversity<br />Differences in the race, gender, and national origin of organizational members have important implications for organizational culture and effectiveness<br />Promoting efficiency, speed, and innovation<br />The better organizations function, the more value they create<br />
  31. 31. Consequences of Poor Organizational Design<br />Copyright 2007 Prentice Hall<br />31<br />Decline of the organization<br />Talented employees leave to take positions in growing organizations<br />Resources become harder to acquire<br />Resulting crisis impels managers to change organizational structure and culture<br />
  32. 32. How Do Managers Measure Organizational Effectiveness?<br />Copyright 2007 Prentice Hall<br />32<br />Control: external resource approach<br />Method evaluates how effectively an organization manages and controls its external environment<br />Innovation: internal system approach<br />Method allows managers to evaluate how effectively an organization functions and operates<br />Efficiency: technical approach<br />Method evaluates how efficiently an organization converts a fixed amount of resources into finished goods and services<br />
  33. 33. Table 1-1: Approaches to Measuring Effectiveness<br />Copyright 2007 Prentice Hall<br />33<br />
  34. 34. Measuring Effectiveness: Organizational Goals<br />Copyright 2007 Prentice Hall<br />34<br />Official goals: guiding principles that the organization formally states in its annual report and in other public documents<br />Mission: goals that explain why the organization exists and what it should be doing<br />Operative goals: specific long- and short-term goals that guide managers and employees as they perform the work of the organization<br />

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