398 CHAPTER NOTES 01 ORG THEORY - CHAPTER ONE ORGANIZATIONS...

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CHAPTER ONE ORGANIZATIONS AND ORGANIZATION THEORY CHAPTER OVERVIEW This chapter introduces participants to characteristics of organizations and organizations as systems. Definitions and examples are given to provide an understanding of organization theory and its value in becoming better managers in a rapidly changing world. You may wish to refer back throughout the semester to the Xerox case that opens the chapter, and to update the case regularly from current business analyses. Organization theory is defined and shown to have practical applications for managers. A framework for the remainder of the book is also provided which will be useful as an introductory overview, and as a frame of reference throughout the course. Organization Theory in Action Topics The Xerox case which opens the chapter illustrates organization theory topics such as failure to respond to external elements such as customers, suppliers, and competitors, inability to achieve internal efficiency, slow decision making, ineffectively dealing with its large size and extensive bureaucracy, ethical lapses, and having an outmoded corporate culture. Current Challenges Global competition Ethics and Social Responsibility Speed of Responsiveness The Digital Workplace Diversity What Is an Organization? Definition Organizations are social entities that are goal directed, with deliberately structured activity systems, and with a link to the external environment. Types of Organizations We will study both large and small organizations. We will also look at manufacturing and service organizations, for- profit and nonprofit organizations. Importance of Organizations Organizations create value for owners, customers, and employees by their activities. They bring together resources to accomplish specific goals, whether those goals are putting on the Olympics or planting new trees in the city. Organizations produce goods and services, using innovative techniques and modern manufacturing technology, for competitive pricing.
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