Samenvatting OTD.doc - Organizational Theory and Design...

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Organizational Theory and Design Chapter 1: Organizations and Organizational Effectiveness What is an organization Organization: A tool people use to coordinate their actions to obtain something they desire or value. The essence of an organization is grouping people and other resources to produce goods and services Organization is a response to and a means (middle) of satisfying some human needs Entrepreneurship: The process by which people recognize opportunities to satisfy needs and then gather and use resources to meet those needs. Value creation takes place at three stages: input, conversion and output. Each stage is affected (beïnvloedt) by the environment in which the organization operates. The way the organization uses human resources and technology to transform inputs into outputs determines how much value is created at the conversion stage. The output of the conversion process is an output of finished goods and services that the organization releases (loslaten) to its environment, where they are purchased and used by customers to satisfy their needs. Organizational environment: The set of forces and conditions that operate beyond (verder dan) an organization’s boundaries but affect its ability to acquire (verkrijgen) and use resources to create value. Five reasons why organizations exist: Increase specialization and the division of labor: engineer in a small company must perform many more tasks than the engineer in a large company. Therefore is the degree of specialization in the small company lower. Use large-scale technology: organizations are able to take advantage of economies of scale and scope that result from the use of modern automated and computerized technology. Manage the external environment: pressures (druk) from the organizational environment in which they operate also make organizations the favored mode (favoriete modus) for transforming inputs into outputs. Economize (bezuinigen) on transaction costs : organizations’ ability to control the exchanges between people reduces the transaction costs associated with these exchanges. Exert (uitoefenen) power and control: organizations can exert great pressure on individuals to conform to task and production requirements in order to increase production efficiency. Employment, promotion and increased rewards are important and often scarce. Therefore organization can use them to exert power over individuals. This increases the value that an organization can create. Economies of scale: Schaalvoordelen; Cost savings that result when goods and services are produced in large volumes on automated production lines. Economies of scope: Cost savings that result when an organization is able to use underutilized (onder benutte) resources more effectively because they can be shared across different products or tasks.
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