Summary Organizational Theory, Design, and Change Chapters1/6 (Organizational Structure)
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Course
Organizational Structure (EBP670C05)
Institution
Rijksuniversiteit Groningen (RuG)
This is the only summary you need for preparing for your midterms, as well as a great deal for your final exam of Organizational Structure. It covers every important aspect of the book, and the lectures.
● An organization is a tool people use to coordinate their actions to obtain something they
desire or value
● The organizational environment is the set of forces and conditions that operate beyond
an organization’s boundaries but affect its ability to acquire and use resources to create
value.
● Manage the external environment; specialists trained on certain aspects keep control of
their own discipline
● Exert power; can fire and motivate people with promotion, money
, …
Organizational structure The formal system of task and authority relationships that control how
people coordinate their actions and use resources to achieve organizational goals.
Organizational culture is shaped by the people inside the organization, the ethics of the
organization, employment rights given to employees and the type of structure used by the
organization.
Both shape and control behavior within the organization, they are the means by which a
company achieves its goals.
Organizational change is used to increase effectiveness
Contingencies might occur, the organizational design determines how effective the
organization is able to respond.
- Companies constantly look for ways to innovate, and change in order to be competitive,
and able to respond to environmental changes (globally, internally, and outside of the
organization). If they succeed, they might get a competitive advantage (the resources
are used better than competitors).
Questions to be asked:
What kind of tools are available?
How can these tools be combined?
Are the objectives realized?
What kind of activities are needed?
What kind of control is needed?
, Approaches to measuring organizational effectiveness:
External: focused on outward pressure; stakeholders. Therefore stock, market share input cost
Internal: focused on increasing product innovation, coordination, reducing conflict..
Technical: looking at numbers; product quality, reduce production cost, number of defects,
better customer service…
Diversity:
- Will enlarge problem solving capacity
- Will help not to focus on one aspect
- Will encourage creativity
Question as manager: how to manage and deal with diversity?
Organizational environment
The set of forces and conditions that operate beyond an organization’s boundaries but affect its
ability to acquire and use resources to create value. An organization can create value, by using
more sustainable resources and machinery. This could have a positive effect on the
organizational environment (more customers)
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