01 - OB II Midterm Chapter 1 Organizations and Organization...

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OB II Midterm Chapter 1: Organizations and Organization Theory C URRENT C HALLENGES Globalization: growing interdependence means that the environment for companies is becoming extremely complex and competitive Ethics and Social Responsibility Speed of Responsiveness The Digital Workplace: disintermediation- eliminating the middleman Diversity: 1990’s immigrants made up over 12% of US workforce, by 2050 85% entrants will be women or people of colour W HAT IS AN O RGANIZATION ? Organizations are social entities that are goal-directed, are designed as deliberately structured and coordinated activity systems and are linked to the external environment Exists when people interact with one another to perform essential functions that help attain goals Most strive for horizontal coordination of work activities, often using teams of employees from different functional areas to work on projects Types of Organizations For profit or Nonprofit organizations; for profit’s managers direct activities towards making money and nonprofit’s managers direct activities to make a social impact Nonprofit managers must serve clients with limited funds, must focus on keeping organizational costs as low as possible and demonstrating a highly efficient use of resources, also there is no bottom-line to determine efficiency due to intangible goals Nonprofit must deal with diverse stakeholders: volunteers, clients, donors, funders Importance of Organizations (7) Organizations exist to do the following: Bring together resources to achieve desired goals and outcomes Produce goods and services efficiently Facilitate innovation Use modern manufacturing and information technologies
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OB II Midterm Chapter 1: Organizations and Organization Theory Adapt to and influence a changing environment Create value for owners, customers, and employees Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees P ERSPECTIVES ON O RGANIZATIONS Open systems Closed system would not depend on its environment; it would be autonomous, enclosed Early management concepts such as scientific management, leadership style and industrial engineering were closed-system approaches taking the environment for granted, assumed it could be more efficient through internal design Open system must interact with the environment to survive; it both consumes resources and exports resources to the environment; involves continuous adaptation to changes & complex Open system organizations need to find & obtain resources; interpret & act on environmental changes; dispose of outputs; control & coordinate internal activities in the
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01 - OB II Midterm Chapter 1 Organizations and Organization...

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