Organizational Theory and Designs

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CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS 1 PART 1: LECTURE OUTLINES CHAPTER 1 ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS TEACHING OBJECTIVES 1. To define an organization and explain how it creates value in three stages: input, conversion, and output. (1.1) 2. To discuss why organizations exist and how they achieve goals collectively. (1.1) 3. To describe organizational theory, how organizations function, and relate to organizational structure, culture, and design. (1.2) 4. To show how organizational design helps a company gain a competitive advantage, deal with contingencies, manage diversity, increase efficiency, increase innovation, and effectively manage change. (1.2) 5. To illustrate the consequences of…show more content…
PHAM HOANG HIEN CHAPTER 1: ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS To Economize on Transaction Costs An organization can reduce transaction costs and expenses associated with negotiating, monitoring, and governing exchanges between people and can control exchanges. To Exert Power and Control Organizations exert pressure on employees to conform to task requirements through employment, promotions, and rewards. Employees who fail to meet organizational needs can be fired. These factors create stability, allow skills to develop, and increase value creation. Notes_______________________________________________________ _________________________ ____________________________________________________________ ________________________ ____________________________________________________________ ________________________ 3 1.2 What Is Organizational Theory? Organizational theory is the study of how organizations work and how they impact and are impacted by the environment. Organizational theory relates to organizational structure, culture, and design. (Fig. 1.4) Organizational structure is the formal setup of task and authority relationships. Structure controls the coordination of activities and employee motivation to attain goals. Structure must be continually evaluated. Organizational culture, a set of shared values and norms, shapes and controls behavior in an organization. Q: What determines culture?
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