Organization Theory

Topics: Organization, Management, Executive director Pages: 12 (654 words) Published: October 25, 2014
Chapter One
Organizations and
Organization Theory

1-1

Organization Theory in Action
• Topics
• Current Challenges
– Global competition
– Organizational turbulence
– E-commerce
– Managing knowledge and information
– Diversity
– Ethics and social responsibility

1-2

What is an Organization?
• Definition
• Importance of Organizations
– Bring together resources to achieve desired
goals and outcomes
– Produce goods and services efficiently
– Facilitate innovation
– Use modern manufacturing and computerbased technology
1-3

• Importance of Organizations (cont’d)
– Adapt to and influence a changing environment
– Create value for owners, customers and
employees
– Accommodate ongoing challenges of diversity,
ethics, and the motivation and coordination of
employees

1-4

An Open System
and Its Subsystems
Environment
Transformation

Raw Materials
People
Information
resources
Financial
resources

Input

Subsystems

Boundary
Spanning

Output

Products
and
Services

Process
Production,
Maintenance,
Adaptation,
Management

Boundary
Spanning

1-5

Five Basic Parts of an Organization
Top
Management

Technical
Support

Middle
Management

Administrative
Support

Technical Core
Source: Based on Henry Mintzberg, The Structuring of Organizations (Englewood Cliffs, N. J.: Prentice-Hall, 1979) 215-297; and Henry Mintzberg, “Organization Design: Fashion or Fit?” Harvard Business Review 59 (Jan. – Feb. 1981): 103-116.

1-6

Goals and
Strategy

Environment

Culture

Size

Structure
1.
2.
3.
4.
5.
6.

Technology

Formalization
Specialization
Hierarchy of Authority
Centralization
Professionalism
Personnel Ratios

1-7

Organization Chart Illustrating the Hierarchy of Authority
for a Community Job Training Program

Board of
Directors
Advisory
Committee

Executive
Committee

Level 1

Executive
Director
Assistant Executive Director
for Community Service

Level 2

Level 3

Assistant Executive Director
for Human Services

Director

Director

Director

Director

Director

Director

Director

Economic Dev.

Reg. Planning

Housing

Criminal Justice

Finance

AAA

CETA

Public
Info
Coord.

Level 4
Level 5

Secretary

Housing
Coord.

Alcohol
Account.
Coord.

Records
Clerk

Secretary

Asst. Director
Finance

Program Contract
Spec.
Fiscal
AAA
Manager

Adm. Asst

Payroll Clerk

Lead
Counsel

Program
Planner
AAA

Secretary

CETA
Intake
&
Orient

CETA
Couns.
Devs.
Title II
ABC

CETA
Couns.
Devs.
Youth
IV

MIS Specialist

Lead
Counsel
CETA
Couns.
Devs.
Title II D CETA
&VI&VII Planner

Staff Clerk

Adm. Asst.

1-8

Characteristics of three Organizations
Formalization

100

Specialization
50
Centralization

Configuration
(%nonworkflow
personnel)

0

W.L. Gore &
Associates

TECHNOLOGY
SIZE (#employees)

Wal-Mart

State Arts
Agency

Manufacturing

Retailing

Government
Service

4,200

200,000

35
1-9

Two Organization Design Paradigms
Mechanical System Paradigm

Natural System Paradigm

Vertical
Structure

Horizontal
Structure

Routine
Tasks

Formal
Systems

Rigid
Culture

Competitive
Strategy

Stable Environment
Efficient Performance

Organizational Change
in the service of
performance and
survival

Empowered
Roles

Shared
Information

Adaptive
Culture

Collaborative
Strategy

Turbulent Environment
Learning Organization

Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)

1-10

Workbook
Activity

Organizational Dimensions
High Formalization

1-4
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