Organizational Theories Flashcards
A tool people use to coordinate their actions to obtain something they desire or value
Organization
raw materials, Money and capital, Human resources, Information and knowledge, Customers of service organizations
Organization’s Inputs
Machinery, Computers, Human skills and abilities
Organization’s Conversion Process
Customers, Shareholders, Suppliers, Distributors, Government, Competitors; Sales of outputs allow organization ot obtain new supplies of inputs
Organization’s Environment
Organization releases outputs to its environment; Finished goods, Services, Dividends, Salaries, Value for stakeholders
Organization’s Outputs
The collective nature of organizations allows individuals to focus on a narrow area of expertise, which allows them to become more skilled or specialized in what they do
Increase specialization and the Division of Labor (Why do organizations exist)
cost savings that result when goods and services are produced in large volume on automated production lines
Economies of Scale
cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across several different products or tasks
Economies of scope
Economies of Scale, Economies of scope
To use large scale technologies
Is the study of how organizations function and how they affect and are affected by the environment in which they operate.
Organizational Theory
The ideal form of organization, included a formal hierarchy, division of labor, and a clear set of operating procedures
Bureaucracy
The one who proposed Bureaucracy in the organization
Max Weber
What theory is Bureaucracy under
Classical Theory
The division of tasks performed in an organization into specialized jobs and departmental functions
Division of labor
Information about which lower level employees report to higher level employees in an organization
Delegation of authority
the formal way an organization is designed in terms of division of labor, delegation of authority, and span of control; the number of levels-or height-of the organization
Structure
The number of positions or people who report to a single individual; that is, the width of the organization.
Span of control
There is a “right” structure for an organization
The Main assumption of Classical Theory