Lecture 1: Introductions to Organizations

Question 1

Definition: Organization Theory

Answer 1

• Takes a macro perspective
• Analyzes the organization itself, or primary subunits
• Is mainly concerned with the overall organizationals ability to achieve its goals and adapt to its environment
  => Organizational effectiveness

Question 2

Definition: Organizational Behavior

Answer 2

=studies the behavior of individuals and teams in the workplace
= Focuses on employee performance and attitude variables
= team level and individual level
= perception, values, learning, motivation and the personalty-task interface

Question 3

Definition: Organizations

Answer 3

= Organozations are social entities, that are goal directed, are designed as a structured and coordinated activity system, and linked to the external environment

Question 4

Types of Organizations

Answer 4

1. Multinational
2. Family-owned
3. Start-ups
4. non-profit
5. Government-owned
6. Self-governing
   …

Question 5

New forms of organizing

Answer 5

1. Online communities
2. Crowd-based organizations
   = rely mainly on crowds for accessing and exploiting globally distributed extra-organizational resources on a scale and variety that would not be possible in traditional organizations
3. Crowd-open organizations
   = Are traditional organizations involving crowds in practices like innovation

Question 6

Why do Organizations exist?

Answer 6

1. Bring together resources to achieve desired goals
2. Produce goods and services efficiently
3. Facilitate innovation
4. Use modern manufacturing and information technologies
5. Adapt to and influence rapidly changing environments
6. Accomondate challenges of diversity, ethics, and coordination
7. Create value for owners, customers, and employees

Question 7

Challenges for Organizations?

Answer 7

1. Globalization
2. Intense Competition
3. Ethics and Sustainability
4. Speed & Responsiveness

Question 8

Definition: Organization Design

Answer 8

= Emphasizes the management side of organizational theory
= Is concerned with constructing and changing an organization according to goals/strategies
= Organization structure is a part and one important result of the overachieving organizational design

Question 9

Definition: Structure of the Organization

Answer 9

= Refers to how an organization divides its labor into distinct tasks and the coordinates among them
= organizational chart, recognizes the key concepts of differentiation and integration

= Important structural factors: formalization, specialization and centralization of hierarchy and authority

Question 10

Contextual Dimensions of OD

Answer 10

1. Size
2. Organizational Technology
3. Environment
4. Strategy and Strategic Goals
5. Culture

Question 11

Structural Dimensions of OD

Answer 11

1. Formalization
   = Amount of written documentation in the organization
   = Procedures, job descriptions, regulations, policies…
2. Specialization
   = Degree of subdividing organizational tasks into separate jobs
   = division of labor
3. Centralization
   = Refers to the hierarchical level that has authority to make decisions
4. Hierarchy of Authority
   = Span of control
   = number of employees reporting to one manager
5. Further Dimensions:
   - Professionalism
   - Personnel Ratio

Question 12

When is an Organization successful?

Answer 12

1. Efficiency
   = refers to the amount of resources used to achieve the organization’s goals
2. Effectiveness
   = refers to the degree to which an organization achieves its goals
3. Stakeholder approach
   = balancing the needs of groups in and outside of the organization that have a stake in the organization’s performance

Question 13

Major Stakeholder groups and what they expect:

Answer 13

1. Owners and Shareholders
2. Employees
3. Customers
4. Creditors
5. Management
6. Government
7. Union
8. Community
9. Suppliers

Question 14

Two Organization Design Approaches