8/11/2019 Debrief for OB Lecture on Friday 25th October

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Debrief for OB lecture on Friday 25 th October.

Topics for discussion: Orgnanisatonal Structure & Design

Organisational Theory Basics:

Organizations are social entities that are goal-directed , are designed as deliberately structured andcoordinated activity systems and are linked to the external environment.

Organizations are made up of people and their relationships with one another. Managers deliberatelystructure and coordinate organizational re sources to achieve the organizations purpose. What contributiondo organizations make:

1) Organizations bring together resources ( labour, materials ) to achieve desired goals and outcomes.2) Produce goods and services efficiently ( competitive prices, benefits )3) Facilitate innovation (e-business, computers, redesigning organizational structures etc)4) Use modern manufacturing and information technologies ( e-business, computers )5) Adapt to and influence a changing environment ( globalization )6) Create value for owners, customers and employees7) Accommodate ongoing challenges of diversity, ethics and the motivation and coordination of

employees (cope with growing concerns about ethics and social responsibility).Perspectives on Organizations1) Open system : must interact with the environment to survive. It consumes resources and exports resourcesto the environment. It cannot seal itself off. Every system that must interact with the environment to surviveis an open system.

2) Organizational configuration : Mintzberg said that every organization has five parts: The technicalcore/operating core (people who do the basic work ), top management (provides direction, strategy, goals and

policies for the entire organization), middle management (responsible for implementation and coordinationon department level), technical support (R&D, Marketing research) and administrative support (responsiblefor the smooth operation and upkeep of the organization).

Dimensions of organizational design : Organizational dimensions fall into two types:

1) Structural dimensions : provide labels to describe the internal characteristics of an organization.

They create a basis for measuring and comparing organizations.a. Formalization: amount of written documentation/rules etc.

b. Specialization: the degree in which organizational tasks are subdivided.c. Hierarchy of authority: who reports to whom and the span of control for managers?d. Centralization: refers to the hierarchical level that has authority to make a decision.e. Professionalism: level of formal education and training of employees.f. Personnel ratios: deployment of people to various functions and departments. Measured by dividing thenumber employees in a classification by the total.

2) Contextu al dimensions : They represent both the organization and the environment.

a. Size: Organizations are social systems, thus size is measured by the number of people in the organization. b. Organizational technology: Tools, techniques and actions used to transform inputs to outputs.c. Environment: all elements outside the boundary of the organization.d. Goals and strategy: define the purpose and competitive techniques.e. Culture: the underlying set of values, beliefs, understandings and norms shared by employees.

8/11/2019 Debrief for OB Lecture on Friday 25th October

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Elements of External Environment:

a) Industry: competitors, industry size and competitiveness, related industries b) Raw materials: Suppliers, manufacturers, real estate, servicesc) Human resources: Labor market, employment agencies, universities, training schools, employees in othercompanies, unionizationd) Financial resources: stock markets, banks, savings and loans, private investorse) Market: Customers, clients, potential users of products and services

f) Technology: Techniques of production, science, computers, information technology, e-commerceg) Economic conditions: recession, unemployment rate, inflation rate, rate of investment, economics, growthh) Government: city, state, federal laws and regulations, taxes, services, court system, political processesi) Sociocultural: age, values, beliefs, and education, religion, work ethics, consumer and green movements

j) International: competition from and acquisition by foreign firms, entry into overseas markets, foreigncustoms, regulations, exchange rate.

Task Environment: includes sectors with which the organization interacts directly and that have a directimpact on the organizations ability to achieve its goals. Task environment typically includes a, b, e andperhaps c and j.

General Environment: includes those sectors that might not have a direct impact on daily operations of afirm but will indirectly influence them. General environment often includes h, i, g, f and d.

All Students to read this and draft your ideas how organizational design is being changing in last 20years and what will be the future.