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Organizations and Organization Theory

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Chapter 1: Organizations and Organization Theory

Current Challenges of Organizations
Globalization
Markets, technologies, and organizations are becoming increasingly interconnected
Ethics and social responsibility
The list of execs and major corporations involved in financial and ethical scandals continues to grow
Speed of responsiveness
Globalization and advancing technology has accelerated the pace at which organizations in all industries must roll out new products and services to stay competitive
The digital workplace
In today’s workplace, many employees perform much of their work on computers and may work in virtual teams, connected electronically to colleagues around the world
Diversity
By 2050, it is estimated that 85% of entrants into the workforce will be women and people of colour

What Is an Organization?
­Organizations: social entities that are goal-directed, are designed as deliberately structured and coordinated activity system, and are linked to the external environment

Types of Organizations
Multinational corporations
Small, family-owned shops
For-profit versus non-profit organizations

Organizations exist to do the following:
1. Bring together resources to achieve desired goals and outcomes
2. Produce goods and services efficiently
3. Facilitate innovation
4. Use modern manufacturing and information technologies
5. Adapt to influence a changing environment
6. Create value for owners, customers, and employees
7. Accommodate ongoing challenges of diversity, ethics, and the motivation and coordination of employees

Perspectives on Organizations
Closed System
A system that is autonomous, enclosed, and not dependent on its environment
Don’t truly exist today
Early management concepts such as scientific management, leadership style, and industrial engineering were closed-system approaches
Open System
A system that must

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