Organizational Theory and Designs

CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS 1 PART 1: LECTURE OUTLINES CHAPTER 1 ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS TEACHING OBJECTIVES 1. To specify an form and expound how it begets treabelieving in three extents: input, alteration, and output. (1. 1) 2. To inquire why forms pause and how they end goals accumulatively. (1. 1) 3. To define explicit doctrine, how forms capacity, and tell to explicit shape, amelioration, and contrivance. (1. 2) 4. To semblance how explicit contrivance accelerations a association establish a competitive custom, chaffer delay contingencies, wield heterogeneousness, acception accomplishingness, acception newfangledness, and ablely wield alter. (1. 2) 5. To reconfer-upon the consequences of penniless explicit contrivance and damage of restrain aggravate shape and amelioration. (1. 2) 6. To inquire the three avenuees of evaluating explicit benefaction: superficial supplies, inside systems, and technical avenue. (1. 3) 7. To discriminate incompact authoritative goals and uncounted goals. (1. 3) CHAPTER SUMMARY This section inquirees forms, explicit doctrine, and the weight of explicit contrivance. An form is a hireling for nation or bunchs to terminate goals. An form begets treabelieving at three extents: input, alteration, and output. Organizations pause consequently nation inaugurated simultaneously to consequence chattels and strives beget balance treabelieving than those inaugurated quaint. Organizations may pause to acception specialization and the dispersion of toil, to use large-lamina technology, to wield the superficial environment, to utilize on proceeding consumes, and to compel jurisdiction and restrain aggravate employees. The components of explicit doctrine are shape, amelioration, and contrivance and alter. Organizational contrivance accelerations a association establish a competitive custom, chaffer delay contingencies, wield heterogeneousness, acception accomplishingness, and acception newfangledness. Penniless explicit contrivance results in association delaydraw, including layoffs and awkwardness in tempting suppliess. Organizational benefaction should be computed according to a wieldr’s manners of restrain, newfangledness, and accomplishingness. The superficial supplies, inside systems, or technical avenue compute benefaction and authoritative and active goals. Difficulties arise in measuring benefaction smooth if stakeholders entertain distributed goals. An form must choiceeded the best way to end goals. Organizations are monstrous by the environment, technology, and arrangementes. The technological environment entails newfanglednesss in genesis arrangementes and new consequences. CHAPTER OUTLINE 1. 1 What Is an Organization? An form is intangible; it cannot be cranky or felt. Thinking of an form evokes its consequence or strive. The indicate Anheuser-Busch evokes the order beer, not why the association gets beer or how it restrains employees. An form bunchs nation and suppliess to get chattels and strives to PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS satiate a insufficiency. Entrepreneurs initiate delay the effect of satiateing a insufficiency then gather suppliess to engage that insufficiency. 2 Focus on New Counsel Technology: Amazon. com, Disunite 1 Amazon. com semblances how Jeff Bezos saw a insufficiency and begetd an form to engage it. Q. What prodded Jeff Bezos to rouse Amazon. com? A. Recognizing the convenience to rest an online tomestore, Bezos rouseed Amazon. com to engage the insufficiencys of computer owners. An online tomeaccumulation could prproffer a larger and balance separate choiceedion, an online register, an not-arduous exploration cleverness, and tome retrospects. Bezos arranged suppliess to engage the insufficiency for a new tomestore. Notes_______________________________________________________ __________________ ____________________________________________________________ __________________ ____________________________________________________________ __________________ How Does an Form Beget Value? The treabelieving fable arrangement apprehends input, alteration, and output. (Fig. 1. 1) Q: What are some inputs a association insufficiencys to get a consequence or strive? A. Inputs apprehend relativenal suppliess, raw embodieds, proud, principal, and counsel. The treabelieving begetd depends on how a association choiceeds and acquires inputs. Inputs are transformed into outputs at the alteration extent. The treabelieving begetd depends on the description of an form’s skills and its force to acquire from the environment. The alteration arrangement results in an output, a artistic amiable, or a strive. Sales fruits buys balance inputs, so the treabelieving fable cycle lives. The treabelieving fable cycle is used for nonprofit and manufacturing forms and strive companies. Q. What are the inputs, alteration arrangementes, and outputs at McDonald’s? (Fig. 1. 2) A. The inputs apprehend wood, fries, employees, and proud, such as cooking equipment. The alteration arrangement entails cooking the livelihood. The outputs are sandwiches and fries. Why Do Organizations Exist? Nation inaugurated simultaneously to consequence chattels and strives beget balance treabelieving than nation inaugurated quaint. (Fig. 1. 3) Organizations pause: To Acception Specialization and the Dispersion of Toil In an form, nation persomalize on areas of expertise and beseem balance specialized. An engineer persomalizes on one disunite of the engine and this specialization begets treasure. To Use Large-Scale Technology Technology enables forms to end economies of lamina, consume savings through large-volume genesis, and economies of room and consume savings when underutilized suppliess are distributed. To Wield the Superficial Environment An form has the suppliess to mentor and wield the superficial environment, economic, gregarious, and convokeive constituents plus suppliers and the traffic. PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS To Utilize on Proceeding Costs An form can refer proceeding consumes and expenses associated delay negotiating, mentoring, and superior exchanges incompact nation and can restrain exchanges. To Compel Jurisdiction and Restrain Organizations compel hurry on employees to injuryonize to drudgery requirements through possession, promotions, and rewards. Employees who miscarry to engage explicit insufficiencys can be fired. These constituents beget stoppage, grant skills to enucleate, and acception treabelieving fable. Notes_______________________________________________________ _________________________ ____________________________________________________________ _______________________ ____________________________________________________________ ________________________ 3 1. 2 What Is Organizational Theory? Organizational doctrine is the inquire of how forms toil and how they collision and are collisioned by the environment. Organizational doctrine tells to explicit shape, amelioration, and contrivance. (Fig. 1. 4) Organizational shape is the explicit setup of drudgery and pattern correlativenesss. Shape restrains the coordination of activities and employee motivation to get goals. Shape must be forever evaluated. Organizational amelioration, a set of distributed treasures and norms, shapes and restrains action in an form. Q: What designates amelioration? A. People, ethics, rights, and shape of the form enucleate amelioration, which can alter widely incompact forms that get common chattels in the selfselfidentical environment. Coca-Cola promotes combination and has true employees, when-in-fact Pepsi has a competitive amelioration and proud turnaggravate incompact wieldrs. Organizational contrivance is the arrangement by which wieldrs choiceeded and wield aspects of shape and amelioration so that an form can end its goals. Organizational alter is the arrangement by which forms displace from their confer-upon sundericularize to some covet-ford forthcoming sundericularize to acception their benefaction. Organizational Insight 1. 1: Oppotop Organizing Approaches at Apple and Dell Computer Nation who rouse new forms may closing the skills inevitable to ablely contrivance the form. The Apple Computer copy represents this courteous-mannered. Q. How do these two copys reconfer-upon the weight of adapted explicit contrivance? PHAM HOANG HIEN Notes_______________________________________________________ _________________________ ____________________________________________________________ _______________________ ____________________________________________________________ ________________________ CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS A. Although Jobs sundericularized he had trivial covet-for to wield the day-to-day operations of Apple Computer, he covet-ford balance jurisdiction as the form grew and began embodyd in the day-to-day operations, which caused problems. Michael Dell, on the other artisan, understood how deep a courteous-mannered-mannered contrivanceed form was, and begetd a shape centered on disuniteicipative wieldment, involving employees in sentence making, and was not as artisans-on s Jobs. Notes_______________________________________________________ _________________________ ____________________________________________________________ ________________________ ____________________________________________________________ ________________________ The Weight of Organizational Contrivance and Alter Organizational contrivance accelerations a association chaffer delay contingencies, end competitive custom, wield heterogeneousness, and acception its accomplishingness and force to innovate chattels and strives. Trade delay Contingencies A superfluity is an smootht that susceptibility charm-place and must be cogitateed in planning. An form can contrivance its shape to acception environmental restrain. Shape and amelioration are hirelings to suit to the tangled global environment and changing technology. Shape can shape employees certified of the environment. Gaining Competitive Custom Amiable explicit contrivance proffers a competitive custom. Competitive custom emerges from nucleus rivalncies, treabelieving creating skills, and abilities. Managers formulate strategies, inequitable sentences, and actions that use nucleus rivalncies to beget a competitive custom. Organizational contrivance utensils an form’s diplomacy and serves as a nucleus benefaction consequently it is arduous to represent. Although technology can be duplicated, shape and amelioration enucleate aggravate interval, making them solid to represent. Organizational contrivance must be forever evaluated. 4 Notes_______________________________________________________ __________________ ____________________________________________________________ __________________ ____________________________________________________________ __________________ Managing Heterogeneousness The toilforce has beseem balance separate delay nation of sundry generally-known origins inaugurated for the selfselfidentical association. The toilforce is aging. An form must contrivance its shape to maximize its separate benefaction and to enucleate a amelioration that fans combination. Promoting Efficiency, Speed, and Newfangledness Organizational contrivance can acception accomplishingness. Companies must rival delay low-consume consequencers globally and traffic new consequences and arrangementes. Organizational contrivance shapes a rooted balance innovative. An entrepreneurial amelioration fans newfangledness. The Consequences of Penniless Organizational Contrivance Organizational contrivance favors association accomplishment, yet employee roles are repeatedly disregarded until a emergency hits. One argue for delayentice is a damage of restrain aggravate explicit shape and amelioration. Talented employees liberty, acquiring suppliess beseems arduous, and the treabelieving fable arrangement slows down. Managers are impenetrable to alter elements of shape and amelioration that derail diplomacy. PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS Notes_______________________________________________________ ________________________ ____________________________________________________________ ________________________ ____________________________________________________________ ________________________ • Refer to inquireion interrogation 2 less to emphasize the relation incompact explicit doctrine and shape, contrivance, alter, and amelioration. ____________________________________________________________ _____________________ ____________________________________________________________ _____________________ 5 Organizational Insight 1. 2: Reshrewd AOL Interval Warner This semblances the awkwardness in perplexing to merge two forms that entertain very contrariant shapes. In abstracted, it semblances that unobservant of the shape, environmental constituents repeatedly delineate a role in the achievement of an form, as evidenced by the implosion of the dot. coms. Q. How were the two forms contrariant from a shape rendezvous? A. Interval Warner was very clerical in naturalness, spell AOL was used to the secure-changing environment of the IT toil. Q. What did Pitman do to try and reconstitute the two companies? A. He begetd teams of twain AOL and Interval Warner wieldrs, but made AOL wieldrs binding for vestibule the bring, as they were balance practiced to brining new consequences to traffic immediately. 1. 3 How Do Managers Compute Organizational Effectiveness? Researchers see principal wieldment drudgerys as restrain, newfangledness, and accomplishingness. Restrain instrument dominating the superficial environment, tempting suppliess, and using gregarious arrangementes. Newfangledness entails enucleateing skills to discaggravate new consequences and arrangementes and contrivanceing adaptable shapes and ameliorations. Efficiency involves enucleateing new plants for quick, low-consume genesis, secure division, and proud consequenceivity. The Superficial Supplies Approach: Restrain Using the superficial supplies avenue, wieldrs evaluate a rooted’s force to wield and restrain the superficial environment. A. Indicators apprehend fund treasure, profitability, yield on siege, and the description of a association’s consequences. An deep constituent is wieldment’s force to know and suit to environmental alter. Stakeholders treabelieving aggressiveness and an entrepreneurial earnestness. Organizational Insight 1. 3: Ups and Downs at Mattel This circumstance represents the weight of twain sense customer insufficiencys, and adapting the form to engage those insufficiencys. Q. What reach did Mattel shape in perplexing to satiate customer insufficiencys? PHAM HOANG HIEN Q. What indicators evaluate restrain aggravate the environment? CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS A. The skills insufficiencyed to at-once enucleate new consequences was not confer-upon in the association that they purchased. They besides underestimated the insufficiency to update their nucleus consequences. The Inside Systems Approach: Newfangledness Using the inside systems avenue, wieldrs evaluate explicit benefaction. Shape and amelioration should fan flexibility and quick acceptance to traffic alters. Flexibility fans newfangledness. Q. How is newfangledness computed? A. Newfangledness is computed by the interval insufficiencyed for sentence making, genesis, and coordinating activities. The Technical Approach: Willingness The technical avenue is used to evaluate accomplishingness. Benefaction is computed by consequenceivity and accomplishingness (relative of outputs to inputs). Productivity establishs apprehend acceptiond genesis or consume diminution. Productivity is computed at all extents of genesis. Q. What consequenceivity computes could a strive association use? A. Strive companies could compute sales per employee or the relative of chattels sold to chattels yielded. Employee motivation is an deep constituent in consequenceivity and accomplishingness. 6 Organizational Insight 1. 4: Fit Willingness at FedEx and UPS This circumstance is a amiable illustration of the weight of uniformly evaluating and updating technology. A amiable tabulate inquireion can rock environing the enacted benefits of recent technology. Consider for copy, the acceptiond accomplishingness of these two companies as they favor consumers. Measuring Effectiveness: Organizational Goals Organizational benefaction is evaluated by twain authoritative and active goals. Authoritative goals are the explicit sidearm of an form. Active goals are inequitable covet-term and short-term goals that straightforward drudgerys. Managers use active goals to compute benefaction. To compute restrain, wieldrs inquire traffic distribute and consumes; to compute newfangledness, they retrospect sentence-making interval. To compute accomplishingness, they use benchmarking to collate the association to competitors. A association may be able in one area and inable in another. Active goals must be accordant delay authoritative goals. Notes_______________________________________________________ _________________________ ____________________________________________________________ ________________________ ____________________________________________________________ ________________________ • Refer to inquireion interrogation 3 less to emphasize the avenuees to evaluating benefaction. ___________________________________________________________ ________________________ ____________________________________________________________ ________________________ 1. 4 The Plan of This Tome PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS Figure 1. 5 semblances how the diversified sections fit simultaneously and get a pattern of the components implicated in explicit contrivance and alter. Notes_______________________________________________________ _________________________ ____________________________________________________________ _______________________ ____________________________________________________________ ________________________ The Organizational Environment. The deep beginning of doubt is the environment. An form must contrivance its shape to artisanle correlativenesss delay stakeholders in the superficial environment. Section 3 confer-upons patterns that communicate why the environment is a superior beginning of doubt. Organizational Design. Chapters 4 through 8 inquire the principles on which forms yield-an-effect and the choices suited for contrivanceing and reshrewd their shapes and ameliorations to pair the environment. The selfselfidentical basic problems charm-place in all toil settings, and the aim of contrivance is to enucleate a shape that accomplish suit ablely to these challenges. Organizational Change. The third disunite of the tome chaffers delay the sundry contrariant issues implicated in changing and reshrewd forms. Interposed in this are contrariant alter arrangementes, such as restructuring, reengineering, and newfangledness wieldment. 7 Notes_______________________________________________________ _________________________ ____________________________________________________________ _______________________ ____________________________________________________________ ________________________ DISCUSSION QUESTIONS AND ANSWERS 1. How do forms beget treasure? What is the role of entrepreneurship in this arrangement? Treabelieving is begetd at the input, alteration, and output extents. At the input extent, treabelieving depends on how an form choiceeds and earns the inputs; unmistakable inputs beget balance treabelieving than others. At the alteration extent, treabelieving is a capacity of employees’ skills, including acquireing from and suiting to the environment. Output begets treabelieving if it satisfies a insufficiency. Entrepreneurship is deep to treabelieving fable by recognizing a insufficiency, muster inputs, and transforming them into a consequence or strive. The treabelieving fable cycle accomplish live if customers are satisfied; avail accomplish beget inputs and better the alteration arrangement. Organizational doctrine is the inquire of how forms capacity, collision, and are collisioned by employees and sociality. Organizational doctrine chaffers delay the sound form. Organizational contrivance entails sentences environing shape and amelioration. Structure is the explicit set of drudgery and pattern correlativenesss. Amelioration is a set of distributed treasures that swing action. 3. What is explicit benefaction? Inquire three avenuees to evaluating benefaction and the problems of each avenue. PHAM HOANG HIEN 2. What is the correlativeness incompact explicit doctrine, explicit contrivance and alter, and explicit shape and amelioration? CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS 8 Organizational benefaction is the force to use suppliess to beget treasure; it apprehends restrain, newfangledness, and accomplishingness. The superficial supplies avenue evaluates a association’s force to earn precious suppliess and treasured skills. Indicators apprehend fund treasures, yield on siege, and traffic distribute. These indexes are collated to competitors’ indexes. However, this avenue miscarrys to cogitate explicit amelioration and shape. The inside avenue retrospects the form’s force to innovate and suit to the environment immediately. Some computes apprehend the elongation of interval to get a consequence to traffic, sentence-making hurry, and coordination interval. This avenue does not cogitate consumes or the superficial environment. The technical avenue retrospects an form’s force to use skills and suppliess efficiently. This avenue cogitates neither the environment nor shape and amelioration. It is deep to evaluate an form in all three areas—control, newfangledness, and accomplishingness. 4. Entice up a register of benefaction goals that you would use to compute the accomplishment of (a) a securelivelihood restaurant and (b) a instruct of affair. Answers may alter subordinately. A secure-livelihood restaurant’s goals accomplish vary from a afunspotted instruct’s goals consequently a instruct is a nonprofit form. a) Some goals used to compute benefaction at a secure-livelihood restaurant are as follows: • Lower the consume of wood, fries, and drinks • Lower the consume of toil • Better the description of the livelihood and the skills of employees • Acception avail, fund treasure, and traffic distribute • Satiate empire requirements on sanitation and unspotted toil laws • Refer employee contest • Hurry up the interval it charms a customer to get served • Ascertain balance efficient ways to consequence the livelihood • Acception employee motivation by prsubscription bonuses • Acception the description of the livelihood by ensuring that it is not too grnot-arduous and that it is hot when customers admit it • Minimize the number of injustice orders (b) A afunspotted instruct’s goals may be the forthcoming: • Attract top-description benefaction and learners • Maximize fruits from schooling and fees • Proffer scholarships • Attract fruits from forms and alumni • Establish the living of the persomal homogeneity • Refer contest • Enbelieving that learners are equipd for jobs • Suit to alters in the environment by forever updating the curriculum • Encourage coordination incompact benefaction from contrariant departments ORGANIZATIONAL THEORY IN ACTION PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS Practicing Organizational Theory: Unconcealed Systems Dynamics Diminutive bunchs of learners contrivance an form from an unconcealed systems perspective: (1) They designate the input, alteration, and output arrangementes. (2) They substantiate environmental constituents delay the highest collision. (3) They designate the best computes to evaluate the form’s benefaction. 9 The Imembodied Dimension This use accomplish be rest at the end of each section. The aim is to acceleration learners recognize the sundry ways in which forms can acceleration or injury nation in the environment. The pristine copy asked learners to inquire doctors and hospitals, and the role of ethics in this environment. Register copys of these imembodied and unimembodied actions. This is a confused interrogation consequently tless are so sundry contrariant systems in the health-care environment. Students may entice upon their own experiences delay doctors, amiable or bad, or the inquireion could displace to how insurance companies, Medicare, or the persomal homogeneity delineate a role in the imembodied action of doctors and hospitals. 2. How do these actions tell to the undertakes of doctors and nurses to acception explicit benefaction in the ways examiinsufficiency in the section? Or, to undertakes to hunt their own self-interest? This interrogation serves as a amiable copy of why forms pause. Make believing the learners recognize that all forms undercharm to acception their benefaction, not exact for-profit corporations. Another thrilling inquireion susceptibility rock environing defining and inquireing what “pursuing their own selfinterest” truly instrument from twain an imembodied and a useful rendezvous. Making the Relation Besides at the end of entire section; this use encourages learners to appear through newspapers and magazines to ascertain an copy of a association that is chaffering delay some of the issues in the section. The assignment for this section is to ascertain a association that has accelerationed or injuryed a stakeholder bunch. ANALYZING THE ORGANIZATION Each learner choiceeds a association to inquire throughout the semester. Each module requires the learner to gather and stir association counsel for a rumor to be submitted at the end of the semester. Students can prefer an form relish IBM or GM and ascertain profession in magazines, on the Internet, or contiguity a persomal association. The rumor answers the forthcoming interrogations: what is the form, what does it do, how does it beget treasure, who are its stakeholders, what are its superior problems, and how does it compute benefaction? Other issues such as technology or emulation may be apprehendd. CASE FOR ANALYSIS Kinko’s New Uncounted Shape Kinko’s Inc. as the largest retailer of mimicking accumulations, but it had to alter its uncounted shape in acceptance to competitive hurrys from Quick Copy and OfficeMax. Kinko’s had an inexplicit wieldment arrangement and awkwardness managing enlargement. The rester, Orfalea, used franchising to embark PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS enlargement, but this avenue did not support Kinko’s in restrainling consumes or fit customer strive. Consultants recommended centralized restrain and a set of inside pattern correlativenesss. 1. What were the problems confrontment Kinko’s wieldrs? 10 Kinko’s shape was too decentralized, making it arduous for top wieldrs to utensil alters at-once. The shape was inexplicit delay sentences left up to Kinko’s franchisees, and no sharing of effects on customer strive. 2. What steps did wieldrs charm to clear-up these problems? Kinko’s centralized uncounted systems such as purchasing and finance to refer consumes. Kinko’s enucleateed a balance explicit explicit shape. It may charm interval for the accumulation owners to repudiate restrain, but this shape should acceleration Kinko’s to suit balance immediately to emulation and enucleate accordant procedures and strives to engage customer insufficiencys. TEACHING SUGGESTIONS 1. Ask learners to expound the patterns in the section and afford copys. Models can be assigned in remove. Use inquireion interrogations during the tabulate by dividing learners into diminutive bunchs or pairs and granting 5–7 minutes to equip answers, which are then distributed delay the tabulate. 3. Use role delineate to compute explicit benefaction using the three avenuees. One learner is a manufacturing wieldr who evaluates accomplishment using the technical avenue. One learner is an R&D wieldr who uses the inside systems avenue. The third is a corporate wieldr who uses the superficial supplies avenue. Stress that accomplishment is evaluated based on restrain, newfangledness, and accomplishingness. 4. Ask learners to appear the at the Amazon. com web top (http://www. amazon. om) and inquire how Amazon satisfies a insufficiency. Entertain them collate this to competitors that entertain surfaced, such as Barnes & Noble (http://www. barnesandnoble. com). 5. To shape believing learners recognize why forms pause, entertain them afford copys in tabulate of when forms entertain not served them courteous-mannered. Common copys apprehend covet lines at the grocery accumulation, penniless strive at a restaurant, etc. Try to acceleration them re-frame their copys in the matter of the line embodied, such as specialization or the alteration arrangement. This is a amiable manner for getting the learners to recognize the aggravateall treabelieving of the embodied throughout the semester. PHAM HOANG HIEN