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Summary - Organization theory and design
1 Organizations and Organization Theory
In a survey of top executives, coping with rapid change emerged as the most common problem facing managers and organizations. Some of these challenges are:
- Global competition
- Ethics and social responsibility
- Speed of responsiveness
- The digital workplace
Name the 4 principles of an organization (definition of organization):
- social entities that
- are goal-directed
- are designed as deliberately structured and coordinated activity systems
- and are linked to the external environment.
Importance of organizations. Organizations exist to do the following:
1. Bring together resources to achieve desired goals and outcomes
2. Produce goods and services efficiently
3. Facilitate innovation
4. Use modern manufacturing and information technologies
5. Adapt to and influence a changing environment
6. Create value for owners, customers, and employees
7. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees.
There are two ways to look at and think about organizations and how they function. Name them:
The open system approach and the organizational configuration framework.
Every system that must interact with the environment to survive is an open system.
What is a system?
A set of interacting elements that acquires inputs from the environment, transforms them, and discharges outputs to the external environment.
Henry Mintzberg, suggest that every organization has a framework of 5 key-subsystems. Name them:
The technical core performs the production subsystem function and actually produces the product and service outputs of the organization.
The technical support function helps the organization adapt to the environment.
The administrative support function is responsible for the smooth operation and upkeep of the organization, including its physical and human elements.
Organizational dimensions fall into two types: structural dimensions and contextual dimensions.
Name the 6 parts of structural dimensions:
1. Formalization (aantal documenten aanwezig, job descriptions, policy manuals, etc.)
2. Specialization (the degree to which organizational tasks are subdivided into separate jobs)
3. Hierarchy authority (describes who reports to whom and the span of control for each manager)
4. Centralization (refers to the hierarchical level that has authority to make a decision)
5. Professionalism (the level of formal education and training of employees)
6. Personnel ratios (refer to the deployment of people to various functions and departments)
Name the 5 parts of contextual dimensions:
1. Size (counted in amount of employees)
2. Organizational technology (refers to the tools, techniques and actions used to transform input to output)
3. Environment (all elements outside the boundary of an organization, key elements include: industry, government, customers)
4. Goals and strategy (defined as the purpose and competitive techniques that set it apart from other companies)
5. Culture (underlying set of key values, beliefs, understandings, and norms shared by employees)
Efficiency refers to the amount of resources used to achieve the organization's goals. It is based on the quantity of raw materials, money, and employees necessary for producing a given level of output.
Effectiveness is a broader term than efficiency, meaning the degree to which an organization achieves its goals.
What is a stakeholder?
Any group, within or outside of the company that has a stake in the organization's performance.
What is contingency?
If one thing depends on other things.
Many managers are redesigning their companies into learning organization. What is meant by this?
Promoting in communication and collaboration so that everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability.
Efficient performance versus the learning organization, noem de vijf pijlers:
- Vertical vs horizontal structure
- Routine tasks vs empowered roles
- Formal control systems vs shared information
- Competitive vs collaborative strategy
- Rigid vs adaptive culture