This document provides a summary of the lecture notes for the subject Organization Theory, which is taught in the first year of IBA. The textbook these notes are based on is Managing & Organizations (Clegg et al.), fourth edition.
ORGANIZATION THEORY –
LECTURE NOTES
Midterm Exam [Chapters 1-2, 9-12]
,Organization Theory – Lecture Notes
2
, Organization Theory – Lecture Notes
LECTURE 1 – MANAGING AND ORGANIZATIONS
THEORY
We need theory to be able to realize right judgements and actions
A collection of concepts and their relationships with which we explain a phenomenon
of interest
Academic theories are produced accurately
Organizations endure over decades even though individuals come and go. This is possible
because:
There are always underlying values, such as a vision and mission statement and
objectives
- “Who we are”
- Organizational culture
Often you go through some sort of ritual when you enter think student
associations
Use of widelyspread and persistent “management models” on the macro level
- E.g. total quality management
EXAMPLES OF ORGANIZATIONS:
Armies
Al Qaeda
Social movements (temporary organization)
Characteristics of organizations:
Coordinate actions
Rules/policies
Same goal
Ordered/organized to reach this goal
CHARACTERISTICS OF AN ORGANIZATION
Collective “character” though they consist of individuals
Mission + strategy (collective goals)
Shared values
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, Organization Theory – Lecture Notes
Organizational culture
Mechanisms for ensuring collective action are in place, e.g.:
Hierarchy
Distribution of labour, specialization
Control mechanisms
o Prevent opportunistic behaviour
o Ensure actions of individuals are aligned with goals of organization
Organizational boundaries
Legal boundaries often defined by transaction costs and laws
Cultural boundaries defined by organizational identity
LEVELS OF ANALYSIS IN ORGANIZATION THEORY
MANAGERS
Generally make organizations more rational
Job is to make sure action in organizations is directed towards the collective goal
Communicating, coordinating, accomplishing action in pursuit of
organizational objectives
Managing relationships with all stakeholders and ‘non-actors’ like
technologies or industry standards
ORGANIZATION TYPES
Business firms – managers advocate one particular type of rationality:
managerialism
Feministic organizations - emphasizes democratic decision making
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