SECTION 1 Flashcards
What is the difference between an organisation and an organism?
ORGANIZATIONS
have targets which are differently configured, are relatively easy to modify, seek for homeostasis (even though mostly fail to reach), do have a structure
ORGANISMS
have native instincts, are stronger determinated, hardly to modify, have homeostasis and culture
What are the perceptions of organizations?
INSTRUMENTAL VIEW
companies have an organization (formal/informal regulations), organization as an instrument of the attainment of corporate targets, as an efficiency driven order
INSTITUTIONAL VIEW
companies are an organization (based on control systems/humans, borders, partial inclusion, collective purpose), organization of the integrated order (in terms of efficiency and effectiveness)
Organizational characteristics and their areas of tension
- Justified for durability (stability, flexibility, learning & innovation) 2. Order (organizational structures as statics, regularities / operational structures, principles in terms of fundamentals of behavior and action) 3. Various elements (legal organs, members, units) 4. Collectively (Cooperation, integration/coordination, conflicts & interests) 5. Delivery of purpose (targets - which?, solutions, stakeholders)
Specific characteristics of the organization “company”
- ECONOMIC ORGA.
coverage of long-term expenditures through income, payoffs arise from resource shifts - SPECIFIC VALUE ADDED
bring about value for other systems, fulfilling several stakeholders - SOCIO-TECHNICAL SYSTMS
humans supplements by technical auxiliaries, fulfilment of tasks (in behalf of stakeholders) in a labor division process - ECONOMIC COMPETITION
shortage removal by as low as possible resources, creation of new shortages, wishes/needs
How to develop a sustainable competitive advantage in an organization
continuously discovering profitable tasks and fulfilling tasks superiorly compared to competitors, in terms of superior benefit for stakeholders (effectiveness advantage) and cost concerns (efficiency advantage)
What are fundamental issues of organizations?
Organizational purpose
targets: performance creation, tendency to grow, adaptability as necessity to survive, organization is no organism
INTEGRITY/ SYNERGY
Performance orga. (production(even ideas & knowledge), growth, effectiveness)
Governance (operating processes, coordination, stability)
Adaptation (e.g. innovations) – change. & mutation
STRUCTURE
organizational structure due to artificial hierarchy
characteristics of good structure (completeness of elements, no intersections, simplicity, transparency, stability, resilience, possibility to expand and extend)
How is efficiency and effectiveness in an organization defined, show examples?
EFFICIENCY
profitable benchmark (output/input relation) f. e. Sales, Profit, ROI, Productivity
EFFECTIVENESS
target achievement benchmark f. e. capability targets (flexibility, growth), profitability targets (productivity efficiency of information), outcome targets, behavioural targets (fluctuation, loyalty, promotional expertise)
What is the difference between an organizations formal and material target?
FORMAL
targets independent from object. of the company
monitory targets - qualitative targets not monetary expressable e.g. Safety, Autonomy, Ethics
monetary targets - expressible in money, absolute targets (profit, liquidity), relative targets (profitability, asset turnover)
MATERIAL
object of thee company for the purpose of corporate targets
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directed outside, output targets registration of a company, right to exist for the company in. terms of its market performance
Name the 5 key stakeholders of an organization and their interests
OWNERS/SHAREHOLDERS return and appreciation of invested capital, autonomy, power, influence/control MANAGEMENT devolopment of its own ideas and capabilities EMPLOYEES Income & social security DEBT CAPITAL FINANCIERS satisfying return, secure investment SUPPLIERS attractive terms, solvency of customers
Name the 3 target relations in order to solve target conflicts of corporations (from high to low practical relevance)
TARGET HIERARCHY
various targets are categorised to priorities, detailed assessment of goal attainment for each target, logical structured target system
TARGET DOMINANCE
one particular target takes temporal, areal or functional precedence over remaining targets
TARGET RANGE
various targets coexist with the same priority, companies simultaneously observe various targets