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8/8/2019 1. Org Des (s1)
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Organization Design
Understanding Organizations
&
Effectiveness
Session 1
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Setting the context.. Describe the Organization in which you were placed
for summers & the nature of your project.
List five characteristics you observed in theorganization.
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What Is an Organization? Consciously coordinated, social entity
Identifiable boundary- membership
Continuous bonding
Goal oriented
Increase specialization and division of labor
Use large-scale technology:
economies of scale &economies of scope
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Characteristics of an Open System Environmental awareness
Feedback
Cyclic character Negative entropy (microscopic disorder) &
steady state
Movement towards growth & expansion Balance between maintenance & adaptive
functions.
Equifinality (similar goals can be achieved viadifferent routes)
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t
Organization obtains inputsfrom its environment
Raw materials
Money and capital
Human resources
Information and knowledge
Customers of serviceorganizations
Organizations Inputs
Organization transformsinputs and adds value to
them
Machinery
Computers
Human skills and abilities
Organization's Conversion Process
Sales of outputs alloworganization to obtain newsupplies of inputs
Customers
Shareholders
Suppliers
Distributors
Government
Competitors
Organizations Environment
Organization releasesoutputs to its environment
Finished goods
Services
Dividends
Salaries
Value for stakeholders
Organizations Outputs
How an
Organization
CreatesValue
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What is Organization Design ?
It is the process ofCONSTRUCTING andCHANGING an organizations structure to
help it achieve its goals.
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Why is organizational design so
Important ? Affects a companys ability to deal with
contingencies (events that might occur)
Used to manage diversity
Can influence an organizations ability to be
efficient and innovative
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The consequence of ignoring
Organization Design Talented people leave the organization
Resources are harder to acquire
Value creation process slows down
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What Is Organizational Theory? It is the study of how organizations function
and their relationships with their environment.
It involves components ofdesign, structure,
and culture.
The process of organizational design is used
to diagnose and manage the structure and
culture of organizations
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What Is Organizational Theory?
The Relationship among Organizational Theory andOrganizational Structure, Culture, and Design
Organizational Structure
The formal system of task andauthority relationships that
controls how people are tocooperate and use resources to
achieve the organization'sgoals.
Organizational Design
The process by whichmanagers select and manage
various dimensions andcomponents of organizationalstructure and culture so thatan organization can controlthe activities necessary to
achieve its goals.
Organizational Culture
The set of shared valuesand norms that control
organizational membersinteractions with each otherand with people outside theorganization.
Organizational Theory
The study of how organizations function and how they affect andare affected by the environment in which they operate.
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Dimensions of Organization structure1. Complexity- degree of differentiation that
exists within the organization.
2. Formalization-degree to which jobs arestandardized.
3. Centralization- degree to which decisionmaking is concentrated at a single point in anorganization.
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Complexity
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Horizontal Differentiation Specialization
Functional specialization (division of labor)
Social specialization
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Spatial Differentiation Degree of geographical dispersion
All functions duplicated at many locations
SBI
Spatial spread horizontal when different
functions operate out of different locations.
ONGC
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Integration Communication- ( formal /intranet, informal/
water-cooler
Coordination- ( teams & task forces)
Control- ( rules & procedures)
Culture- ( norms & customs)
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Formalization
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What is it? Degree to which jobs are standardized in an
organization.
Enforced through rules, procedures ,instructions & communications.
Measurement ?
Socialization Vs Professionalization
Techniques- selection, training, rolerequirements, rituals.
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Centralization
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How is it achieved? Does it depend on authority?
Can policies override decentralization?
Does Information processing systems aid
decentralization?
Can filtering of info by lower levels
decentralize decision making ?
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Case 1Information systems at Mrs. Fields Cookies.
Case analysis to be written in a paragraph.
All the questions to be answered as required.
Submission : 25th Wednesday.
All assignments must be in Times New Roman, font -12 with 1 spacing.
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