Organizations exist to create value by bringing together people and resources to produce goods and services. They do this through three stages: input, conversion, and output. Organizations exist for five major reasons: to increase specialization, use large-scale technology, manage the external environment, exert power and control, and economize on transaction costs. Organizational effectiveness is important because it allows organizations to maximize value creation and perform well through approaches like control, innovation, and efficiency. Managers measure effectiveness using goals like the mission, official goals, and operative goals.

1. 1- 1- Organizational Theory, Design, and Change Sixth Edition Gareth R. Jones Chapter 1 Organizations and Organizational Effectiveness

4. Figure 1.1: How an Organization Creates Value Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

7. Figure 1.3: Why Organizations Exist Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

10. Figure 1.4: The Relationship Among Organizational Theory, Structure, Culture, Design, and Change Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

15. Table 1.1: Approaches to Measuring Effectiveness Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall