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Ch01 Organizations and Organization Theory

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Ch01 Organizations and Organization Theory
Chapter 1: Organizations and Organization Theory

Current Challenges of Organizations • Globalization o Markets, technologies, and organizations are becoming increasingly interconnected • Ethics and social responsibility o The list of execs and major corporations involved in financial and ethical scandals continues to grow • Speed of responsiveness o Globalization and advancing technology has accelerated the pace at which organizations in all industries must roll out new products and services to stay competitive • The digital workplace o In today’s workplace, many employees perform much of their work on computers and may work in virtual teams, connected electronically to colleagues around the world • Diversity o By 2050, it is estimated that 85% of entrants into the workforce will be women and people of colour

What Is an Organization?
Organizations: social entities that are goal-directed, are designed as deliberately structured and coordinated activity system, and are linked to the external environment

Types of Organizations • Multinational corporations • Small, family-owned shops • For-profit versus non-profit 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 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

Perspectives on Organizations
Closed System • A system that is autonomous, enclosed, and not dependent on its environment • Don’t truly exist today • Early management concepts such as scientific management, leadership style, and industrial engineering were closed-system approaches

Open System • A system that must interact with the

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