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Organizations & Organizational Theory

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Chapter 1

ORGANIZATIONS
&
ORGANIZATIONAL THEORY
What is an Organization?
✓Social entities that are goal-directed.

✓Structured & coordinated activity systems.


✓Linked to the external environment
Structural Dimensions of Design and
Contingency
Contingency Factors Structural Dimensions
–Organizational –Professionalism -
Technology Formalization
–Size –Specialization -
Personnel Ratios
–Goals and
strategy –Hierarchy of
Authority
–Environment
–Complexity
–Culture –Centralization
Organization Chart
Performance and Effectiveness Outcomes
Performance and Effectiveness Outcomes

amount of resources degree to which an


used to achieve the organization achieves its
organization’s goals goals
Performance and Effectiveness Outcomes

Stakeholder Approach
balancing the needs of groups
in and outside of the
organization that has a stake in
the organization’s performance.
Major Stakeholder Groups & What They
Expect
EVOLUTION OF
ORGANIZATIONAL THEORY
EVOLUTION OF
ORGANIZATIONAL THEORY

Efficiency is Everything
Scientific Management
Frederick Winslow Taylor
EVOLUTION OF
ORGANIZATIONAL THEORY
Mintzberg’s Organizational Types

✓The five parts


are interrelated
and often serve
more than one
function.
Organic and Mechanistic Designs

MECHANISTIC ORGANIC
characterized
by machine-like is looser,
standard rules free-flowing,
and procedures and adaptive
with clear
authority.
Contemporary Ideas
Contemporary Ideas

Today’s organizations are imprinted with hierarchical,


formalized mechanistic approach.
Contemporary Ideas

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