ARE112_Sp11_Notes01_Intro

ARE112_Sp11_Notes01_Intro - ARE 112 Spring 2011 Class Notes...

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ARE 112 – Spring 2011 Class Notes #1 – Introduction to Organizational Behavior ARE112_Sp11_Notes01_Intro Page 1 of 5 I. Class Notes 1. Course outline 2. Course reader at Classical Notes in the MU – need by next Monday 3. Start reading The Goal – see the “Reading Notes” in the course pack II. Some General Comments on Organizations and Management A. Why do we have organizations? 1. A very simplified example: 2. Our anthropologist friends would answer this question with the origins of the “mother city.” Caral: The Mother City: Article on SmartSite and here: http://www.smithsonianmag.com/history- archaeology/firstcity.html 3. An example from economics: http://elsa.berkeley.edu/~train/interviews.html a. Transaction costs ~ 1:25 b. Organizational theory c. Make or buy decisions ~ 3:15 d. Voluntary exchange ~ 6:45 e. Importance of good questions ~ 9:30 f. Implementation ~ 10:45 g. Cost of uncertainty ~ 16:00 h. Bounded rationality and Herbert Simon ~ 16:45 i. Incomplete contracts 18:10 j. Feasible and not ideal for an organization ~ 18:25 k. Importance of data in the analysis ~ 20:50 l. Conclusion: Organization are related to a need to optimize or satisfice some form of preferences. B. Some Historical Comments and Examples 1. Genghis Kahn a. Keep only the best people – promote by ability not rank b. Looked after their needs c. Organize so that no one is in the dark i. Based on the decimal system – easy to train ii. Commands by hand signals and banners and drums so everyone knew what they needed to know d. Train, train, train e. Mission driven organization
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ARE 112 – Spring 2011 Class Notes #1 – Introduction to Organizational Behavior ARE112_Sp11_Notes01_Intro Page 2 of 5 2. Alexander the Great a. Personality driven: megalomania, paranoia b. An example of “born on third and thinks he hit a triple” c. History records him as having a split personality d. Personality driven organization 3. Dynasties of China a. Dynastic cycles: ruler unites under a “mandate from heaven” prosperity population increases corruption begins not able to respond to disasters ruler loses the “mandate from heaven” warring states emerge one state is victorious “mandate from heaven” come back b. Weight of history: a history driven organization 4. The Wild West a. No history b. Success supplants survival as mission c. Opportunity driven organization
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ARE112_Sp11_Notes01_Intro - ARE 112 Spring 2011 Class Notes...

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