Organization & Organization Theory Flashcards
(12 cards)
What is an organization?
An organization is a tool used by people to coordinate their actions and obtain something they desire or value.
The creation of a new organization is based on a human need or a want that is in demand at a given time
Why do organizations exist
- Increase specialization and the division of labor
- Use large scale technology (Economies of scale and scope)
- Manage the external environment
- Economize on transaction costs
- Exert power and control
What is organizational theory?
The study of how organizations function and how they affect and are affected by the environment in which they operate
What is an organizational structure?
The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals
What are the functions of an organizational structure?
- Controls coordination and motivation
- Shapes behavior of people and the organization
- it is a response to contingencies involving environment, technology and human resources
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What is organizational culture?
Set of shared values and norms that controls organizational member interactions with each other and the suppliers, customers and other people outside the organization
What is organizational design?
The process by which managers select and manage various dimensions and components of structure and culture so that organizations can control the activities necessary to achieve its goals
What is organizational change?
The process by which organizations move from their present state to some desired future state to increase their effectiveness
Why is organizational design and change important?
- To deal with contingencies
- To manage diversity
- To gain competitive advantage
- To promote efficiency, speed and innovation
What are the consequences of poor organizational design?
- Talented employees leave for better and stronger companies
- Resources become increasingly harder to acquire
- Force to change company structure and culture that do not align with strategy
What is an Open Systems Approach?
It is an approach that views organizations as dynamic, interconnected systems that constantly interact with and adapt to their environment
