Bus 100

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Chapter 1
Designing Effective and Efficient Organizations
* Organizations at the “macro” level – as social entities and how they relate to their environments * The effects of an organization’s technologies, size, strategies, structure, culture, environment and processes on its behavior and effectiveness * As well as change, life-cycle, conflict/power

What is an Organization?
* organization are social entities that are goal directed, designed as deliberately structured and coordinated activity systems, and linked to the external environment * Social entity
* Goal directed trying to achieve something
* Deliberately structured activity system do something
* Linked to the external environment impacting outside or impacted the outside * Example: Customers impact an organization, or airplanes are impacted by the price of fuel * Not everyone in an organization is an employee…some are just members or volunteers 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 (Google/Facebook, BP/Homeland, Security/Banks) 6. Create value for owners, customers and employees
7. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees Types of Organizations
* Non-Profit/Government/Crown Corps
* Goals less tangible – but important
* Volunteers
* Funding/costs
* Whim of Government
* Humane Society/PBS their goals are less objective
* Examples: CBC, BC Government, American Cancer society * For Profit Goals
* Profit
* Short term/Long term
* Revenue
* Market Share
* “Maximize shareholder wealth”
* Examples: Microsoft, BP and Facebook

* Managers in businesses direct their activities toward earning money for the company, whereas managers for nonprofits direct their efforts toward generating some kind of social impact Organization Theory Today

* Current Challenges
* Globalization
* Ethics and Social Responsibility
* Speed of Responsiveness
* The Digital Workplace
* Diversity
Impact of Globalization
* This growing interdependence means that the environment for companies is becoming extremely complex and competitive * Organizations have to learn to cross lines of time, culture, geography in order to survive * Outsource

* Local markets – same or different?
* Ethics (mining/oil/forestry/coffee)
* Design/Man/service/support
* Ethics and social Responsibility
* Bar has been raised
* Ethical sourcing
* Wall street banking pay
* We need to behave better
* Ethics has increased over the years
Speed of Responsiveness
* Respond quickly and decisively to environmental changes, organizational crises, or shifting customer expectations * employees keep company competitive
* No longer stable markets
* Information based power not machines/equipment
* Must be able to change/adapt
* Militant/organized customers – “Can I speak to the manager?” * Facebook/rating sites (e.g. Yelp)
* Financial downturns – fight for few customers
Digital Workplace (Wireless/Optical Networks)
* E-business – Amazon, EBay etc.
* Teleconference
* All connected 24/7
* E-books s
* ITunes
* Disintermediation: eliminating the middleperson
* Information as a product Google, Wiki, MapQuest
* Woman/different cultures/languages/visible minorities/older workers * In work force and as consumers
* Family concerns – elder parents
* Glass ceiling is rising…still there (females getting higher in company) Perspectives on Organizations
* Open systems vs. Closed System
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