An organization brings together resources to achieve goals, produce goods and services efficiently, facilitate innovation, use modern technology, adapt to changes, and create value for stakeholders. It must also address challenges of diversity, ethics, and motivating employees. There are different models for how an organization is structured, including its boundary spanning, production, maintenance, adaptation and management functions. Structure can be defined by factors like formalization, specialization, hierarchy, centralization, and professionalism. Understanding organizational design and how organizations change is important for performance, survival, and navigating stable versus turbulent environments.

1. A Basic QuestionWhat is an organization:Bring together resources to achieve desired goals and outcomesProduce goods and services efficientlyFacilitate innovationUse modern manufacturing and computer-based technologyAdapt to and influence a changing environmentCreate value for owners, customers and employeesAccommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees

2. Models for OrganizationBoundarySpanningBoundary SpanningProductionMaintenanceAdaptationManagement

3. Models for OrganizationTop ManagementMiddle ManagementTechnical SupportAdministrative SupportTechnical CoreSource: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) 215-297; and Henry Mintzberg, “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan. – Feb. 1981): 103-116.

4. Models for OrganizationStructure:FormalizationSpecializationHierarchy of AuthorityCentralizationProfessionalismPersonnel RatiosDaft, Organization Theory and Design 7/e

5. Organizational Design ParadigmsNatural System ParadigmMechanical System ParadigmVerticalStructureHorizontalStructureRoutineTasksRigidCultureAdaptiveCultureEmpoweredRolesCompetitiveStrategyFormalSystemsCollaborativeStrategySharedInformationStable EnvironmentEfficient PerformanceTurbulent EnvironmentLearning Organization Organizational Changein the service ofperformance andsurvival Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)

6. Why Is It Important to Understand ?