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Organization Structure

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Organization Structure
Executive MM Program
Class 41
May 7-August 10, 2012

AGENDA:
 What is an organization
 Ways of looking organizations
Organizational Design,
Organizational Structure
 Organizational Design and Strategy
 Organizational Design and Technology
 Organizational Design and Environment
 Organizational Trend

ORGANIZATION
???
 A tool used by people to coordinate their actions to obtain something they desire or value
 A response to and a means of satisfying some human needs
 A value creation systems that take inputs from the environment and use skills & knowledge to transform these inputs into finished goods and services

Organizational
Characteristics
Goals

Structure
&
Culture

People

Ways of Looking at
Organizations


The Open System Perspective
◦ Recognizes the dynamic interaction of the system with its environment



The Life-Cycle Perspective
◦ There are distinct stages through which organizations proceed

Importance of the System
Perspective
Organization is viewed as a whole with interdependent parts
Prevents managers from viewing their jobs as managing static, isolated elements
Encourages managers to identify and understand the environment in which their system operates
Directs managers’ attention to alternative inputs and processes for reaching the goals

Importance of the Life-Cycle
Perspective
 Prevents

to look organizations as static

entities
 Organizations evolve and change
 Management can do to make an organization more effective – which can be different at each stages

ORGANIZATIONAL
STRUCTURE
How job tasks are formally divided, grouped and coordinated
The division of labor as well as the patterns of coordination, communication, work flow, and formal power that direct organizational activities.

Interacting Contextual and Structural Dimension of
Organizational Design
The Organization

Environment

Goals &
Strategy

Size

Structure
Culture 1.

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