Bus 374 notes
Organization Theory & Design
Part 1: Introduction to Organizations
Chapter 1: Organizations and Organizational Theory
Organizations continuously adapt to shift in the external environment
Markets, technologies, and organizations are increasingly interconnected
Intel’s new circuits are designed in India and China for 50 to 60 percent less than in North America
Globalization is leading to increased competition and complexity in business environment
Speed of Responsiveness to environmental changes, organizational crises, and shifting customer expectations is also a significant challenge
Customers want products for their exact needs
The financial basis of today’s economy is increasingly information, not machines and factories.
Employees, not machinery, have the power & knowledge needed to keep company competitive
Organizational leaders need to build E-links (web based) for main stakeholders
Organization – are (1) social entities that are (2) goal directed, (3) designed as deliberately structured and coordinated activity systems, and (4) linked to the external environment. Exists when people interact with one another to perform essential functions that help attain goals
Today, some companies cooperate with competitors by sharing info for mutual advantage
Organizations exist to do the following:
1. Bring together resources to accomplish specific goals
2. Produce goods and services that customers want at competitive prices
3. Facilitate innovation in ways to produce and distribute more efficiently
4. Use modern manufacturing and information technologies
5. Adapt to and influence a changing environment (many big companies are involved in strategic alliances with companies around the globalized world to influence the environment and compete on a global scale)
6. Create Value for owners, customers, and employees; a company can be profitable only when the value it creates is greater than the cost of resources.
7. Accommodate ongoing challenges of
Part 1: Introduction to Organizations
Chapter 1: Organizations and Organizational Theory
Organizations continuously adapt to shift in the external environment
Markets, technologies, and organizations are increasingly interconnected
Intel’s new circuits are designed in India and China for 50 to 60 percent less than in North America
Globalization is leading to increased competition and complexity in business environment
Speed of Responsiveness to environmental changes, organizational crises, and shifting customer expectations is also a significant challenge
Customers want products for their exact needs
The financial basis of today’s economy is increasingly information, not machines and factories.
Employees, not machinery, have the power & knowledge needed to keep company competitive
Organizational leaders need to build E-links (web based) for main stakeholders
Organization – are (1) social entities that are (2) goal directed, (3) designed as deliberately structured and coordinated activity systems, and (4) linked to the external environment. Exists when people interact with one another to perform essential functions that help attain goals
Today, some companies cooperate with competitors by sharing info for mutual advantage
Organizations exist to do the following:
1. Bring together resources to accomplish specific goals
2. Produce goods and services that customers want at competitive prices
3. Facilitate innovation in ways to produce and distribute more efficiently
4. Use modern manufacturing and information technologies
5. Adapt to and influence a changing environment (many big companies are involved in strategic alliances with companies around the globalized world to influence the environment and compete on a global scale)
6. Create Value for owners, customers, and employees; a company can be profitable only when the value it creates is greater than the cost of resources.
7. Accommodate ongoing challenges of