(HER)TENTAMEN/ EXAM: Organizational Theory & Design (OTD) for Pre-MSc
Summary Organizational Theory, Design, and Change - Organizational Structure
Samenvatting Organizational Theory, Design, and Change - Organizational Structure (EBP670C05)
All for this textbook (39)
Written for
Rijksuniversiteit Groningen (RuG)
Pre Msc Business Administration
Organization Theory & Design For Pre-MSc
All documents for this subject (3)
Seller
Follow
marjoleingernaat
Reviews received
Content preview
Notes lectures Theory and design
Lecture 1 Foundations
Why organize
Firs order rationales
1. Division of labor
2. Coordination of tasks
Second-order rationales
3. Specialization of labor
4. Economies of scale and scope
5. Manage interaction with environment
Two archetypes of organizations
Mechanistic organizational structures
- Individual specialization: with clear tasks
- Simple integration: mainly through hierarchy
- Strong centralization: of authority and control
- High level of standardization
Organic organizational structures
- Joint specialization: with ad hoc coordination
- Complex integration: with special purpose teams
- Strong decentralization: as authority and control are delegated
- Mutual adjustment
The role of the environment
- Following Porter (1980), organizations need to account for forces that shape the
markets they want to compete in
- Consequently, organizations need to attain “fit” between such market conditions,
relevant stakeholders, and international organizational structures.
,Everyone has theories
From concepts to theories
- A theory is a system of statements targeted at describing, explaining, and
predicting a real world phenomenon (Bacharach 1989).
• Statements consist of constructs and propositions (i.e., relationships
between constructs).
• Collectively, this system presents a logical, systematic, and coherent
explanation of the real-world phenomenon within certain boundaries
Theory
Put formally
Boundary = assumption about values, time and space
Organizational Design
,Lecture 2
Challenges in collective value generation
- Control
- Integrate
- Motivate
This three things you can do in two types of organizations:
• Formal organization (structure)
• Informal organization (culture)
This two are related to each other
The grandfather of organizational theory
- Max Weber (1864-1920)
Weber’s bureaucracy in action
If we adopt these principles, our organization should run like a well-oiled machine.
, - Interactions between organizational levels will be efficiently regulated
- Each person will know his/her role in the organization
- Explicit rewards/punishments reduce the costs of enforcing and assessing
employee behavior
- Because each position is independent from the person, promotion is a motivation
force.
But bureaucracy also generates costs
- If we fail to control the development of hierarchy, the organization will grow very
large and inefficient (Parkinson’s Law), rendering decision making very slow.
- Members may rely too much on rules and standard operating procedures to make
decisions, which makes them unresponsive to the needs of customers and other
stakeholders.
Benefit of direct supervision
- Control
• Continually question and probe subordinates
• Direct observation and evaluation/training
• Prevent free-riding
- Integrate
• Continuous task-assignment
• Managing relations between multiple subordinates
- Motivates
• Mentoring and professional development
• Immediate feedback and performance-based reward
Design choices in vertical differentiation
On the right the managers have a lot more time to motivate and control their
employees.
Important design principles
1. Limits in managers’ span of control
Pick optimal number of subordinates to supervise by a single manager,
depending on:
- More complexity of subordinates’ tasks, smaller span of control
- More interrelatedness of subordinates’ tasks, smaller span of control
Design choices in vertical differentiation
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marjoleingernaat. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.52. You're not tied to anything after your purchase.
