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Summary - Introduction to Organization Studies
- Instelling
- Tilburg University (UVT)
Summary for Introduction to Organization Studies.
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Chapter 1 - What are Organizations?Important aspects when studying organizations:
- Location: Organization structure differs in different cultures.
- Audience: Organization’s advice should be tailored to the needs of their
audience.
- Time: Different timeframes should be considered.
- Scope: Micro to macro level.
Organizations are omni present: The way in which large societal as well as
everyday problems are tackled is by the creation of organizations.
Different types of social systems:
- Rational vs. Natural.
- Open vs. Closed.
- Organizational phenomena display a very nested nature, many different
fields.
The field of Organization Studies:
- There is a constant interaction between Organization Studies and other
social sciences.
- Systematic study of how people - as individuals and groups - act with and
between O.
Key Questions:
Organization draws input from the wider system (society) and sends outputs
back into it.
1. How do organizations function in terms of internal processes and
structure?
2. How do organizations relate to environmental actors?
3. What is the impact of the organization on the social system they are
embedded in?
4. How did we come to grow an organizational society?
5. How is the role of organizations in society changing?
“Organizations are social entities which are goal-directed and designed as
systems of activities that are consciously structured and coordinated and which
are connected to the external environment.”
Benefits of organizations:
- Bringing resources together.
- Facilitating innovation.
- Create value for stakeholders.
- Take on challenges of diversity.
- Ethics.
Challenges for organizations today:
- Globalization.
- Speed of responsiveness.
- Ethics and societal responsibility.
- Virtual workplace.
- Diversity.
,Chapter 2 - Perspectives on Organizations
There are several different perspectives on organization studies.
- When comparing organizations, one should always focus on similarities
and compare them on that regard.
Closed vs. Open system perspective:
- Closed system perspective focusses exclusively upon the organization
without considering its dependence upon and capacity to influence
(elements of) its environment.
- Organizations self-contained, sealed off.
- Environment is given / unchangeable.
- Managerial attention on improving internal design.
- Open system thinking pays attention to the (open) boundaries between
the organization and its environment.
- Consists out of multiple subsystems.
- Organizations engaged in exchanges with the environment.
- Environment keeps changing.
- Managers aim to develop a design that effectively manages the
exchange.
Rational vs. Natural system perspective:
- Rational system perspective focusses on the formal structure of an
organization and looks at the organization as a group of people who work
together to pursue specific goals.
- Natural system perspective believes that the way of information and
interpersonal structures within an organization are more important than
formal structures.
- Inputs to an organization system include employees, raw materials and
other physical resources, information, and financial resources. The
transformation process changes these inputs into something of value that
can be exported back to the environment.
- Outputs may include employee satisfaction, pollution, and other by-
products of the transformation process.
- Subsystems are identified in relation to specific function they perform for
organizational function. They are understood to produce the product and
service outputs of the organization.
Mintzberg’s organizational configuration:
The configuration of an organization is a collection of elements or components of
an organization that can combine in various ways to achieve outcomes.
Technical core:
, - Produces product or service output of organization.
- Primary transformation of inputs to outputs.
Technical support:
- Scan environment for threats and opportunities.
- Help organization to innovate, change and adapt.
Administrative support:
- Smooth operation and maintenance of the organization.
Top- and middle management:
- Direct & coordinate other parts of the organization.
Dimensions of organizational design
Structural dimensions: central internal elements:
1. Formalization: degree of written documentation.
2. Specialization: division of labor.
3. Hierarchy: narrow and wide.
4. Centralization: degree to which decision making is spread throughout the
organization.
5. Professionalism: level of formal education and training of employees.
6. Personnel ratio: describing the deployment of people to certain
departments.
Contextual dimensions:
1. Size: number of employees (in total and in divisions).
2. Organizational technology: tools, technology used to transform the input
to output.
3. Environment: elements with a certain influence on the organization.
4. Goals and strategies: scope of operation, plan for interacting with the
competitive environment.
5. Culture: underlying set of values shared by employees (unwritten).
Historical perspective on organizational design
Scientific management (Taylor):
- Efficiency and productivity of the technical core in focus.
- Degrading workers to machines.
- Closed system thinking.
Administrative principles / bureaucratic organizations:
- Administrative theory (Fayol) and Bureaucratic theory (Weber).
- Focus on how organizing works throughout the whole organization.
- Bureaucratic principles: everyone in the organization is treated
impersonal.
Hawthorne studies - Human relations theory (Mayo):
- People in focus.
- Showed that positive treatment of employees improved their motivation
and productivity.
Contingency perspective:
- Unlike the scientific and administrative principles predict, there is no “one”
best way for conducting business and designing an organization.
- Context in focus: best way depends on the organization’s situation.
- Contingency: there must be a “goodness of fit” between structural and
contextual dimensions.
, Contemporary perspective on organizational design:
- The more turbulent and complex the environment, the less mechanical
and more organic (natural) the organizational design. The organization
should mirror the external conditions in their internal design.
Mechanical System Design Organic System Design (Chaos
Efficient performance Theory)
Learning organization
- Vertical structure. - Horizontal structure.
- Routine tasks. - Empowered roles.
- Formal systems. - Shared information.
- Rigid culture. - Adaptive culture.
- Compliantly competitive - Collaborative competitive
strategy. strategy.
From vertical to horizontal structure:
- Generally little collaboration occurs across functional departments. The
whole organization is coordinated through the chain of command provided
by vertical hierarchy. Which decision-making authority residing with
upper-level managers. In the learning organization, the vertical structure
creates a distance between managers at the top of the organization and
employees at the technical core. In a horizontal structure boundary
between functions are eroded as teams include members from several
functional areas.
From routine tasks to empowered roles:
- Another shift refers to the degree of formal structure and control placed
on the employees in the performance of their work. A task is narrowly
defined to a piece of work assigned to a person. In traditional
organizations tasks were broken down and employees are expected to do
as they are told. With learning organizations employees play roles in
teams or departments, these roles are constantly adjusted or redefined.
Employees are encouraged to take care of problems by working with one
another.
From formal control systems to shared information:
- Formal systems are often implemented to manage a growing amount of
complex information and to detect deviations from established standards
and goals. In learning organizations information serves a different
purpose. Much information is accessible and shared in a way that
optimizes performance.
From competitive to collaborative strategy:
- In organizations designed according to classical principles the strategy is
formulated by top managers and imposed to the rest of the organization.
In the learning organization the principles demand the actions of an
informed and empowered workforce to contribute to strategy
development. If all employees are in touch with customers, suppliers, etc.
they are well placed to identify needs and solutions and participate in
strategy making.
From rigid to adaptive culture:
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