Ch01 Organizations and Organization Theory

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Chapter 1: Organizations and Organization Theory Current Challenges of Organizations • Globalization o Markets, technologies, and organizations are becoming increasingly interconnected • Ethics and social responsibility o The list of execs and major corporations involved in financial and ethical scandals continues to grow • Speed of responsiveness o Globalization and advancing technology has accelerated the pace at which organizations in all industries must roll out new products and services to stay competitive • The digital workplace o In today’s workplace, many employees perform much of their work on computers and may work in virtual teams, connected electronically to colleagues around the world •…show more content…
Centralization ▪ Refers to the hierarchical level that has authority to make a decision ▪ When decision making is kept at the top level, the organization is centralized ▪ When decisions are delegated to lower organizational levels, it is decentralized 5. Professionalism ▪ The level of formal education and training of employees ▪ It’s considered high when employees require long periods of training ▪ Professionalism is measured as the average number of years of education of employees 6. Personnel ratios ▪ Refer to the development of people to various functions and departments ▪ Includes the administrative ratio, the clerical ratio, the professional staff ratio, and the ratio of indirect to direct labour employees ▪ A personnel ratio is measured by dividing the number of employees in a classification by the total number of organizational employees [pic] Contextual Dimensions 1. Size ▪ The organization’s magnitute as reflected in the number of people in the organization ▪ Because organization’s are social systems, it’s typically measured by # of employees 2. Organizational technology ▪ Refers to the tools, techniques, and actions used to transform inputs into outputs ▪ It concerns how the organization actually produces the products and services and includes things such as flexible manufacturing, advanced info
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