EM 760 lec 1 - 08- student slides

EM 760 lec 1 - 08- student slides - Engineering Management...

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1 Engineering Management Organization Structure and Systems Lecture 1 January 8, 2008 Course Administrative Issues – Class Roll – Student Profile – Syllabus – Case Study Guide – Author Instructions – Project only Organization Structure • What is Organization Structure? • What does it do? • What impact does it make on the success of the organization?
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2 Organization Theory Introduction • Organization Structure Theory • Organization Culture • Organization Design and Change • Purpose of Organization Structures • Measures of Effectiveness What is an Organization? • A tool used by people to coordinate their actions to achieve their goal • A response to and a means of satisfying some human need How Does an Organization Create Value? Conversion Inputs Outputs
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3 Creating Value Through Input • Includes human resources, information and knowledge, raw materials, money, time • Organization Controls: – choice of people – quality of the raw mat’l – how much to spend on what – development of info and knowledge and skills Creating Value Through Conversion • Includes machinery, computers, skills and abilities to create value • A function of the inputs • Efficiencies, productivity, technology • How does an organization create value? Creating Value Through Output • Finished goods or services released to the environment • Satisfies a need, meets a demand • Quality, innovation, uniqueness • Revenue is fed back into the cycle
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4 Why Do Formal Organizations Exist? • Increase Specialization • Economies of Scale • Manage the External Environment • Economize on Transition Costs • Exert Power and Control Organization Theory • The study of how organizations function and how they affect and are affected by the environment in which they operate • Allows analysis of the structure and culture in order to diagnose problems and make adjustments to facilitate goal accomplishment Organization Structure • The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve goals
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5 Organization Culture • A set of shared values or norms that control interactions between members, suppliers, customers, and other outside groups • Shaped by attitudes, ethics, employee rights, management style, and the type of structure Organizational Design • The process by which managers select and manage aspects of structure and culture so that the org can control activities necessary to achieving the goal • Structure and culture are the means by which the org achieves its goal • Design is about how and why various means are chosen Organizational Change • The process by which organizations move from their present state to some future state to increase their effectiveness • To find a new or improved way of using resources and capabilities to increase an organization’s ability to create value
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6 Organizational Effectiveness Measures • Three important areas used to measure
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EM 760 lec 1 - 08- student slides - Engineering Management...

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