vale od.docx - Contents Introduction to Organizational Design.2 Presentation 1 2 1 Definitions 2 2 Transaction costs.2 3 Stakeholders of Organization.3

vale od.docx - Contents Introduction to Organizational...

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Contents Introduction to Organizational Design ............................................................................ 2 Presentation 1 ................................................................................................................ 2 1. Definitions ........................................................................................................... 2 2. Transaction costs ................................................................................................ 2 3. Stakeholders of Organization .............................................................................. 3 4. Goals and their relationship ................................................................................. 3 5. Effectiveness of organization ............................................................................... 4 6. Principal Agent-Theory ........................................................................................ 5 7. Ethics .................................................................................................................. 6 Presentation 2 ................................................................................................................ 8 1. Challenges of Organizational Design .................................................................. 8 2. Different kinds of functions in an organization: .................................................... 9 3. Organizational challenge no 1 ............................................................................. 9 4. Organizational Challenge no 2 .......................................................................... 10 5. Organizational Challenge no 3 .......................................................................... 10 6. Organizational Challenge no 4 .......................................................................... 11 7. Creating and Managing Organizational Culture ................................................. 12 8. Characteristics of people within the organization: .............................................. 14 9. Property Rights ................................................................................................. 14 10. Social Responsibility ...................................................................................... 15 Presentation 3: Organizational change ........................................................................ 16 1. Organizational Life Cycle .................................................................................. 17 2. Organizational Growth ....................................................................................... 17 3. Organizational Isomorphism .............................................................................. 18 4. Organizational Inertia ........................................................................................ 19
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Introduction to Organizational Design Presentation 1 1. Definitions Organization Definition: A group of individuals who aare formally connected by a common goal” Definition Institution “An institution is a common valid rule” Sense/Use of Organizations: Higher level of specialization and division of labor Advantage by reaching economies of scale and scope (by using technologies) Capability to manage the external environment Reduction of transaction costs Exert power and control 2. Transaction costs =Cost of using the market =Transaction costs are expenses incurred when buying or selling a good or service. If transaction costs are not regarded it means that markets operate costless and efficient -> no reason for the existence of firms (organizations) Assumption: bounded rationality, uncertainty and opportunism Different kinds of transaction costs Ex ante: • Search and information costs • Bargaining costs Ex post: • monitoring and enforcement cost Transaction cost increase when. organizations begin to exchange more specific goods and services uncertainty increases the number of possible exchange partners falls The amount of transaction costs depends on the frequency of transactions the level of uncertainty the level of specification
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3. Stakeholders of Organization Every stakeholder has different kinds of interest and goals So conflicts can occur when the different goals are not compatible 4. Goals and their relationship 1. identical - exchangeable, equal 2. indifferent — reaching goal x has no influence on goal 3. complementary — actions reaching goal x automatically help reaching goal 4. competing — reaching goal x hinders reaching goal 5. antinomy — reaching goal x only by abandonment of goal Competing goals: setting priorities , bargaining, power, influence / networks
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5. Effectiveness of organization 1) External resource approach Evaluation how effectively an organization manages and controls its external Environment — ability to secure, manage, and control scarce and valued skills and resources Determinants of external control of environment: Influence on Stakeholders perception in favor of the organization Positive evaluation especially of external stakeholders
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  • Spring '12
  • logan
  • Management, Organizational studies

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