Mestrado em Gesto, Avaliao e Superviso Escolar

Liderana e Direco Estratgica 2011/12 Aula 2 Introduction to Organization Theory

Telemveis

Learning outcomes

Organizations and Organization Theory Strategy, Organization Design and Effectiveness

Definition

Organization 1) an organized group of people with a particular purpose, such as a business or government department (a research organization); 2) the action of organizing something (the organization of conferences); 3) the quality of being systematic and efficient (his lack of organization); 4) the way in which the elements of a whole are arranged (the spatial organization of the cells).

In Oxford Dictionary

Definition

Theory 1) a supposition or a system of ideas intended to explain something, especially one based on general principles independent of the thing to be explained (atomic theory; theory of evolution); 2) a speculative view (one of my theories); 3) the sphere of abstract knowledge or speculative thought (this is all very well in theory, but how will it work in practice?); 4) the exposition of the principles of a science (the theory of music); 5) Math. a collection of propositions to illustrate the principles of a subject (probability theory; theory of equations).

In Oxford Dictionary

Definition

Organization theory study of organizational designs and organizational structures, relationship of organizations and their external environment, behavior of managers and technocrats within organizations. It suggests ways in which an organization can cope with rapid change.

In Business Dictionary

Importance of Organizations
Bring together resources to achieve objectives and outcomes; Produce goods and services efficiently; Facilitate innovation; Use modern manufacturing and information technologies.

Daft (2007)

Importance of Organizations
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

Daft (2007)

Current Challenges
Global Competition Ethics and and Social Responsibility Speed of Responsiveness The Digital Workplace Diversity

1-10

Applications of Organization Theory

Strategy/Finance Marketing Information technology Operations Human resources Communication

1-11

L i n e p o s i t i o n s

Staff positions Top Management

(ensuring that the organization executes its mission)

Technical Support

Middle Management
(transmits authority from the top to the bottom)

Administrative Support

Technical Core
basic work of producing the products or delivering the services

Mintzberg (1981)

- Define the five basic parts of your organization.

Mechanical System Design

Vertical Structure

Natural System Design

Horizontal Structure

Routine Tasks

Rigid Culture

Empowered Roles

Adaptive Culture

Formal Systems

Competitive Strategy

Shared Information

Collaborative Strategy

Stable Environment Efficient Performance

Turbulent Environment Learning Organization

Hurst (2002)

External Environment
Opportunities Threats Uncertainty Resource Availability

Organization Design
Structural Form learning vs. efficiency Information and control systems, production, technology, human resource policies, incentives, organizational culture, interorganizational linkages

Strategic Direction Top Management Team Internal Situation

Strengths Weaknesses Distinctive Competence Leadership Style Past Performance Define mission, objectives Select operational goals, competitive strategies

Effectiveness/ Outcomes
Resources Efficiency Goal attainment Competing values

Lewin & Stephens (1990)

Porter(1985)

Competitive Scope
Broad

Competitive Advantage
Low Cost

Strategy
Low-Cost Leadership

Example

? ?

Broad

Uniqueness

Differentiation Focused Low-Cost Leadership Focused Differentiation ?

Narrow

Low Cost

Narrow

Uniqueness

- Join a group and provide 4 examples for Porters competitive strategies

Prospector Learning orientation; flexible, fluid, decentralized structure Strong capability in research Values creativity, risk-taking, and innovation Defender Efficiency orientation; centralized authority and tight cost control Emphasis on production efficiency, low overhead (close supervision; little employee empowerment)

Miles, Snow, Meyer & Coleman (1978)

Analyzer Balances efficiency and learning; tight cost control with flexibility and adaptability Efficient production for stable product lines; emphasis on creativity, research, risk-taking for innovation Reactor No clear organizational approach; design characteristics may shift abruptly depending on current needs

Miles, Snow, Meyer & Coleman (1978)

Goal

% Corporations

Profitability Growth Market Share Social Responsibility Employee welfare Product quality and service Research and development Diversification Efficiency Financial stability Resource conservation Management development

89 82 66 65 62 60 54 51 50 49 39 35
Shetty (1979)

STRUCTURE
Flexibility Human Relations Emphasis Open Systems Emphasis
Primary Goal: growth, resource acquisition Subgoals: flexibility, readiness, external evaluation

F O C U S

Primary Goal: human resource development Subgoals: cohesion, morale, training

Internal Internal Process Emphasis

Primary Goal: stability, equilibrium Subgoals: information management, communication

External Rational Goal Emphasis

Primary Goal: productivity, efficiency, profit Subgoals: planning, goal setting

Control

Quinn & Cameron (1983)

STRUCTURE
FLEXIBILITY

Human Relations Emphasis

Open Systems Emphasis

F O C U S

INTERNAL

ORGANIZATION A

EXTERNAL

Internal Process Emphasis

ORGANIZATION B CONTROL

Rational Goal Emphasis

- What is your organizations effectiveness value?

- Howard, W. C.,(Winter,2005). Leadership: Four Styles, Education, Vol. 126, N 2, pp. 384-391

Have a good weekend!