mmodule 2 Flashcards
why do orgs exist ?
reduce transaction costs
economies of scale and economies of scope
specialization and division of labour
exert power and control oer environment
organizationla effectiveness
having control over external resources
how well do orgs use their skills and abilities
how productive and efficient the orgs are
system resource approach
how effectively orgs can obtain resources necessary for high performance
internal process approach
looks at internal activities and assess effectivess by indicators of health and efficiency
goal approach
concerned with the output side
does the org achieve its goal in terns of desired level of output
efficiency (means)
doing things right
concerned with the process of achieving the goal
low waste
effectiveness (ends)
doing the right things
concerned with output and achievement of goals
high attainment
official goals
guiding principles that the org formally states in its annual report and other public docs
ex: to be a global leader in telecom services
operative goals
specific long and short term goals that guide managers and employees that perform the work of the org
ex: increase coordination b/w depts
organizational environment
The set of forces and
conditions that operate
beyond an organization’s
boundaries but affect its ability
to acquire and use resources to
create value
economies of scale
Cost savings that result when
goods and services are
produced in large volume on
automated production lines.
economies of scope
Cost savings that result when
an organization is able to use
underutilized resources more
effectively because they can be
shared across different
products or tasks
transaction costs
The costs associated with
negotiating, monitoring, and
governing exchanges between
people.
