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College aantekeningen Organization Theory & Design (EBS003A05)
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(HER)TENTAMEN/ EXAM: Organizational Theory & Design (OTD) for Pre-MSc
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Summary Organizational Theory, Design, and Change - Organizational Structure
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Table of ContentsTutorial 1- organizations .....................................................................................................................2
Tutorial 2 designing effective organizational structures.........................................................................4
Tutorial 3 ......................................................................................................................................... 11
Tutorial 4 Strategy and innovation ..................................................................................................... 16
Tutorial 5 ......................................................................................................................................... 22
Tutorial 6- Chapter 10 and 11 ............................................................................................................ 31
Tutorial 7 ......................................................................................................................................... 42
,Tutorial 1- organizations
Why do organization exists
1st order
• division of labor
• Coordination of tasks
2ND order
• Increase specialization of labor
• Use large-Scale technology, Economize on transaction costs
• Manage the external environment
• Exert power and control
Challenges of organization design
2 archetypes/ models of organizations – Mechanistic and organic
,Role of the environment
Porter (1980), organizations need to account for forces that shape the markets they want to compete in.
Contingency approach: A management approach
in which the design of an organization’s structure
is tailored to the sources of uncertainty facing an
organization (they are planned for).
- According to contingency theory, in order to
manage its environment effectively, an
organization should design its structure to fit with
the environment in which the organization
operates.
Theory in organizational design: General views and concepts “ Common sense”
• We use it to make sense of reality
• Helps explain why you expect something to happen and predict reality
, Tutorial 2 designing effective organizational structures
Challenged in value generation
• Division of labor
• Coordination of tasks
Weber’s principles of bureaucracy
Benefits:
• More efficient interaction
• Less role ambiguity
• Promotion as a motivation force
• Rewards/punishment reduce behavior enforcing costs
Disadvantages:
• The taller the organization the less control and slower decision making is.
• Organizational members come to rely too much on rules and SOP’s to make which makes them
unresponsive to the needs of customers and other stakeholders.
Direct supervision:
• Control
• Motivation
• Integration
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