Objective:

Introduce students to the theory and practice of

organizations
Generally referred to as the macro part of Behavioural
Sciences
Helping us understand
why organizations exist
how they are structured
what designs are employed to help organizations achieve
their objectives
how external environment all of the above
Bottom line: Provide students with a structured

approach to analyze organizations

 Understanding

organizations, the environment in

which organizations function and exist
Organizational stakeholders
Organization design: Basic concepts and challenges
Organizational structure
Organizational processes
Organizational restructuring and change
Contemporary organizational forms

Additional Resource: A casebook/readings book

3

 Three

case submissions in groups

(3 X 10 = 30%)

Organizational
End-term

Culture Story (15%)

exam (55%)

 Organizations

are

(1) social entities that

(2) are goal directed;
(3) are designed as deliberately structured and

coordinated systems,
(4) and are linked to the external environment

 Bring

together resources to achieve desired

goals and outcomes
Produce goods and services effectively
Facilitate innovation
Use modern manufacturing and information
technologies
Adapt to and influence a changing
environment

Create value for customers, owners,

employees and other stakeholders
Accommodate ongoing challenges of diversity,
ethics, and the motivation and coordination of
employees

 Entrepreneurship:

Identify opportunities to
satisfy needs, and then gather and use
resources to meet those needs

Organizations as Open Systems which exist to

create value

10

 Value

creation takes place at three stages:

input, conversion, and output
Inputs: include human resources,
information and knowledge, raw materials,
money and capital
Conversion: the way the organization uses
human resources and technology to
transform inputs into outputs
Output: finished products and services that
the organization releases to its environment
11

 Organizational

Theory: the study of how

organizations function and how they affect
and are affected by the environment in which
they operate

12

 Organizational

Structure: the formal system of

task and authority relationships that control
how people to coordinate their actions and
use resources to achieve organizational goals

Organizational

Culture: is the set of key values,

beliefs, and attitudes shared by organizational
members and helps shape the behavior within
the organization

13

 Organizational

Design: the process by which

managers select and manage aspects of
structure and culture so that an organization
can control the activities necessary to achieve
its goals

14

 Organizational

Change: the process by which

organizations move from their present state to
some desired future state to increase their
effectiveness

15

We will use six member buzz groups:

Each group choose an organization
Group discusses the different criteria for evaluating

the effectiveness of the chosen organization

One member of the group should be ready to

summarize the groups discussion and finding

16

 Stakeholders:

people who have an interest,

claim, or stake in an organization

17

 People

who are closest to an organization and

have the strongest and most direct claim on
organizational resources
Shareholders: owners of the organization
Managers:
Workforce: all non-managerial employees

18

 People

who do not own the organization, are

not employed by it, but do have some interest
in it
Customers: an organizations largest outside

stakeholder group
Suppliers: provide reliable raw materials and
component parts to organizations
The Government:

Wants companies to obey the rules of fair

competition
Wants companies to obey rules and laws concerning
the treatment of employees and other social and
economic issues

19

 Trade

Unions: relationships with companies can

be one of conflict or cooperation
Local Communities: their general economic wellbeing is strongly affected by the success or failure
of local businesses
General Public:
Wants local businesses to do well against
overseas competition
Wants corporations to act in socially
responsible way
20

 Inducements:

rewards such as money, power, and

organizational status

Contributions:

the skills, knowledge, and

expertise that organizations require of their
members during task performance

21

Inside Stakeholder

Contribution to the
Organization

Inducement to
Contribute

Shareholders
Managers
Workforce

22

Outside Stakeholder

Contribution to the
Organization

Inducement to
Contribute

Customers
Suppliers
Government
Unions
General Public

23

 An

organization is used simultaneously by various

stakeholders to achieve their goals

Each

stakeholder group is motivated to contribute

to the organization

Each

group evaluates the effectiveness of the

organization by judging how well it meets the
groups goals

For

an organization to be viable, the dominant

coalition of stakeholders has to control sufficient
inducements to obtain the contributions required
of other stakeholder groups

24

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