The Dynamics of Organization

7/25/2019 The Dynamics of Organization

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The Organizational DynamicsThe Organizational Dynamics:

An OverviewAn Overview


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What is an organization?What is an organization?

a consciously coordinated social entity

with a relatively identifiable boundary

functions on a relatively continuous

basis

to achieve common goals


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What do they doWhat do they do? How well do they do?? How well do they do?


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Inputs TransformationProcess

Output

System

ENVIRONMENT


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Current TrendsCurrent Trends

Organizations now function in a global economy.

International expansion can provide a competitive

advantage! "ntering different countries may provide large numbers of

potential customers.

! #uilding production facilities in countries with low$cost labor may

prove cost$efficient.! %he rapid increase in telecommunications and information

technology enables work to be done more rapidly& efficiently&

and effectively around the globe.

McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights resere!.


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CHALLENGES FROM GLOBAL REALITIESCHALLENGES FROM GLOBAL REALITIES

WO'( )O'*" I+ *,A-I-

$ /I0"'+I%1

$ 0A23"+

$ +(I22+

%," O'A-I4A%IO- A-/+*,"/32I- O) WO'( I+*,A-I-

$ -"W WO'( O5%IO-+

$ WO'( )O'*" )2"6I#I2I%1

$ *O752"6'"2A%IO-+,I5 WI%,

"-0I'O-7"-%+

$ 2"A'-I-

O'A-I4A%IO-

TRENDS IN GLOBAL WORK FORE

!T"E A#ERAGE AGE IS RISING

!$ORE WO$EN ARE ENTERING T"E

FORE

!ET"NI $INORITIES% I$$IGRANTS

! ARE INREASED

!INTERNATIONAL AREER AND WORK

! FORE $OBILIT& IS INREASING

!INTERNATIONAL E'PERIENE IS A

! PRERE()ISITE FOR AREER

! PROGRESSION


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GLOBAL CHALLENGE .GLOBAL CHALLENGE .

CUSTOMEREXPECTATIONS ARECHANGING: FAST ANDRELIABLE DELIVERIES OF

GOODS AND SERVICES INTERM OF:- QUALITY- TIME- PRICE

THE DESIGN ANDCONCEPT OF WORKPLACEARE CHANGING:

- THE IMPACT OF ITSRADICALDEVELOPMENT- NEW WAYS OFORGANIZING

MOVING FROM TRADITIONAL

TO RE-ENGINEERED VALUESTRADITIONAL:

-THE BOSS PAYS OUR SALARIES; KEEP THE

-BOSS HAPPY

-TO KEEP OUR JOB, STAY QUIET AND DONT

-MAKE WAVES-WHEN THINGS GO WRONG, PASS

-PROBLEM TO OTHERS

-GOOD MANAGER BUILDS AN EMPIRE

-THE FUTURE IS PREDICTABLE; PAST

-SUCCESS MEANS FUTURE SUCCESSRE-ENGINEERED:

-CUSTOMERS PAY OUR SALARIES; KEEP

-THEM HAPPY

-WORK SMARTER NOT HARDER

-ACCEPT OWNERSHIP FOR PROBLESM;

-HELP SOLVE THEM

-GOOD MANAGER BUILDS TEAMS-THE FUTURE IS UNCERTAIN; CONSTANT


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GLOBAL CHALLENGE GLOBAL CHALLENGE

7A-A"'+ *,A'A*%"'I+%I*+ A'" *,A-I-

$ 2O#A2 )O*3+$ #"I- 'A/3A%"+

$ '"+32% /'I0"-

"-/"' 'O2"+ A'" *,A-I-

7O'" "83A2 I-0O20"7"-%

2O#A2 "*O-O71 A))"*%+ O'A-I4A%IO- O5"'A%IO-,37A- 'I,%+ I- %," WO'( 52A*"9 *'"A%" 5'"++3'"+ )O'

$ "752O1"" 'I,%

$ :O# +"*3'I%1

$ ""O

$ "83I%1 O) "A'-I-+

"%,I*+ A-/ 7O'A2I%I"+ #"*O7" 5A'% O) O'A-I4A%IO-;+ +O*IA2'"+5O-+I#I2I%I"+


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QUALITY OF WORK LIFE:QUALITY OF WORK LIFE:OVERALL QUALITY OF HUMAN EXPERIENCES IN THE WORK PLACEOVERALL QUALITY OF HUMAN EXPERIENCES IN THE WORK PLACE

PARTICIPATION: INVOLVING PEOPLE FROM ALLLEVELS OF RESPONSIBILITY IN DECISION MAKING

TRUST: PROVIDE MORE FREEDOM WITHIN THE

SYSTEMREINFORCEMENT: SHARING THE WEALTHS

RESPONSIVENESS (MAKING THE WORK SETTINGMORE PLEASANT AND ABLE TO SERVE

INDIVIDUAL NEEDS):

- SENSITIVITY TO FAMILY ISSUES

- FRIENDLINESS AND FUN

- RELIGION PRACTICES AT WORK


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Current Global Changes

"uropean "conomic *ommunity

-orth American )ree %rade

Agreement

%he rowth of Asia

! :apan& *hina& +ingapore& ,ong

(ong& and 7alaysia are significant

economic forces.

eneral Agreement on %ariffs and

%rade


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TRENDS TOWARD INTERNATIONAL ANDTRENDS TOWARD INTERNATIONAL AND

GLOBAL ENTERRISEGLOBAL ENTERRISE

'OW%, I- I-%"'-A%IO-A2 I-0"+%7"-% A-/

%'A/"

'OW%, O) 732%I-A%IO-A2 "-%"'5'I+"+


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NEW ORGANIZATION FEATURES

DYNAMIC GLOBAL ECONOMYBE CUSTOMER RESPONSIVEPROFITABILITY THROUGH COST AND GROWTH

REDEFINITION OF ORGANIZATION CAPABILITIESAS THE DNA OF COMPETITIVENESSLEARNING TO CHANGE: ADAPTATION ANDTRANSFORMATIONMANAGERIAL INNOVATION

KEEPING UP TO TECHNOLOGY INNOVATIONATTRACTING, RETAINING, AND MEASURINGCOMPETENCE AND INTELLECTUAL CAPITALCHANGING EMPLOYEE DEMOGRAPHICS, E.G.MORE WOMEN IN THE WORKFORCE


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THEMES IN CHANGING ANDDEVELOPING ORGANIZATION

+5""/

)2"6I#I2I%1

I-%"'A%IO-

I--O0A%IO-

7I-/+"% A22OW I/"A+& *O75"%"-*I"+ "7"'" A% A222"0"2+ %,'O3,

$ 2"A'-I-

$ +,A'I- (-OW2"/"

$ 'O35I- 5,1+I*A2 A-/ I-%"22"*%3A2 A++"%+


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'atio of 7arket 0alue to #ook 0alue for +elected

*ompanies

Annual Market Book Ratio ofSales Value Value Market too!"any #$ %illions& #$ %illions& #$ %illions& Book Value

eBay *+, -.+/ -+0 1+0

$icrosoft ,/+2 ,32+* 3/+- 2+2Inte4 ,5+/ *2,+* -3+2 2+.

Genera4 $otors orp+ */,+* ,.+. 0+2 ,+*

Nucor 6Stee47 2+/ -+0 ,+- *+1

8+ + Penney -,+- 3+. 5+2 +1/

Note: The data on market valuations are as of June 16, 2003. All other financialdata is ased on the most recentl! availale alance sheets and incomestatements.


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CEO Re!uneration in "#S# Dollars

COUNTRY

"nited #tates$ra%il

&rance

Ar'entina

(erman!

Ja)an

*e+ico

CEO TOTAL

REMUNERATION

1,-0-,000 /,000

-0,000

61,000

-22,000

-6,000

6-/,000

CEO/MANUFACTURING

EMPLOYEE TOTAL

REMUNERATION MULTIPLE

31 60

1

-

11

11

-6


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INDONESIAN WAGE S"R$E% &''(

AREAS CEO DIRECTOR SR# )ANAGER *R#

)ANAGER

ENTR%

LE$EL

OIL+ GAS >@ >> B> BB B.

TELECO) >@ >> BB CB B.>

,AR)AC% >@ B> CB D BB.

)AN"-ACT"RE B@ BB CC $ E C.B

SER$ICES B@ CB FD $ E C.B

A"TO)OTI$E B@ CB FD $ E C.B

ELECTRONICS B@ CB FD $ E C.B

GAR)ENT C@ C $ C GE H G 37'

-ORWARDING C@ C $ C G $ E H G 37'


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oints to onder

1. How do we know if an organization is successful?

2. What are the components of an effectiveorganization?

3. What determines the effectiveness of anorganization?

4. How is an effective organization designed?

5. What theory can be used to solve organizationproblems, i.e. ineffective organization?

6. How does culture work?


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ORGANI.ATIONAL E--ECTI$ENESS

What is effectiveness? Is it different from

efficiency?

What does it mean effectiveness is a necessarycondition for survival4? *an an organization die?

What are the parameters used to explain

organization effectiveness?


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)O3' A55'OA*,"+ %O O'A-I4A%IO-)O3' A55'OA*,"+ %O O'A-I4A%IO-

"))"*%I0"-"++"))"*%I0"-"++

AROAC, DE-INITION

An organization is effective to the extent

that it 5.

W,EN "SE-"L

%he approach is preferred

when 5.

GOAL ATTAIN)ENT Accomplishes its stated goals oals are clear& time bound& and

measurableS%STE) It acuires needed resources A clear connection exists

between inputs and outputs

STRATEGICCONSTIT"ENCIES

All strategic constituencies are at leastminimally satisfied

*onstituencies have powerfulinfluence on the organization& and

the organization must repond totheir demands

CO)ETING$AL"ES

%he emphasis of the organization in the fourmaJor areas


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A T,REE/DI)ENSIONAL )ODEL O-

ORGANI.ATIONAL E--ECTI$ENESS

&789$99T

;


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A -O"R )ODEL O- E--ECTI$ENESS $AL"ES

FLEXIBILITY

CONTROL

PEOPLE ORGANIZATION

*eans:

&le+iilit!

7nds:

#tailit!

7nds: acuisition


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*'I%"'IA O) O'A-I4A%IO- "))"*%I0"-"++

CRITERIA DE-INITION

-LE0IBILIT% A#2" %O A/:3+% W"22 %O +,I)%+ I- "6%"'-A2 *O-/I%IO-+A-/ /"7A-/+

AC1"ISITION O-RESO"RCES

A#2" %O I-*'"A+" "6%"'-A2 +355O'% A-/ "65A-/ +I4" O)WO'( )O'*"

LANNING OA2+ A'" *2"A' A-/ W"22 3-/"'+%OO/

ROD"CTI$IT% ANDE--ICIENC%

0O237" O) O3%53% I+ ,I,& 'A%IO O) O3%53% %O I-53% I+,I,

A$AILABILIT% O-IN-OR)ATION

*,A--"2+ O) *O773-I*A%IO- )A*I2I%A%" I-)O'7I-5"O52" A#O3% %,I-+ %,A% A))"*% %,"I' WO'(

STABILIT% +"-+" O) O'/"'& *O-%I-3I%1& A-/ +7OO%, )3-*%IO-I- O)O5"'A%IO-+

CO,ESI$E WOR2 -ORCE "752O1""+ %'3+%& '"+5"*%& A-/ WO'( W"22 WI%, "A*,O%,"'

S2ILLED WOR2 -ORCE "752O1""+ ,A0" %," %'AI-I-& +(I22+& A-/ *A5A*I%1 %O /O%,"I' WO'( 5'O5"'21


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Effectiveness Criteria(Gross; in GIBSON, ET. AL., 1973)

Acquiring resources

Being efficient or cost-effective

Producing outputsDeveloping administrative and technicalfunctions

InvestmentBehave according to ethical code of conduct

Satisfying the needs of organization members


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Effectiveness Criteria

Expert Effectiveness Criteria

Gross Acquiring

resources

Efficient Producti

on

Adminis

rative &

technical

functions

Ethical

code

Invest-

ment

Satisfying

members

interests

Price Productivity

Institutionali

zation

Productiv

ity

Producti

vity

Adaptati

on

-moral

conformity

adaptation

Institutiona

lization

Institu

tionali

zation

Moral

Adaptation

Institutiona

lization

Mott Productvity Productvi

ty

Product

vity

Adapta

tion

Fleksibili

ty

Adaptation -Adap

tation

-Fleksi

bility

Adaptation


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THE ESSENCE OF AN ORGANIZATIONTHE ESSENCE OF AN ORGANIZATION

ALWAYS HAS A PURPOSE:

EFFECTIVE PERFORMANCE

EFFICIENT PERFORMANCEDEPENDS ON HUMAN EFFORTS

PARADOX BETWEEN DIVISION OF

LABOR AND THE SYNERGY OF ALLEFFORTS


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CRITERIA OF SUCCESS

+3'0I0A2

*O75"%I%I0"

+A%I+)A*%IO-

*O77I%7"-%

O'A-I4A%IO-A2 *I%I4"-+,I5 #",A0IO'


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EFFECTIVENESS VS. EFFICIENCYEFFECTIVENESS VS. EFFICIENCY

PERFORMANCE EFFECTIVENESS

C


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Integrati3e Con4e5ts in "nderstanding

Organizational E66e4ti3eness

Strategies )aintenan4e Ada5ti3eness ara!etersOrganizational $Affirmation of the mission

$Operational adJustment

$*ommitment of people

$*ontinuousexperimentation andlearning

$)acilitative leadership

$7ovement into new

markets$Innovative alliance

$"fficiency

$"ffectiveness


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EFFECTIVENESS CRITERIA VS. TIME

Short term Middle term Long term

Maintenance: Adaptation: Survival

- Production - Investment

- Efficiency - Development

- Satisfaction

The ro4ess o6 De3elo5ing Organizational E66e4ti3enessThe ro4ess o6 De3elo5ing Organizational E66e4ti3eness


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The ro4ess o6 De3elo5ing Organizational E66e4ti3enessThe ro4ess o6 De3elo5ing Organizational E66e4ti3eness

TIME

SHORT'R(N INTERME)IATE'R(N

*ON+'R(N

INVENTIN+

THE ,(T(RE

A)A-TATION -ROESS

Maintenan.e Ada"ti/eness

Ada"ti/enessMaintenan.e

HAN+IN+ SIT(ATION

-ARAMETER O, THE -ROESS

Effe.ti/eness

Effi.ien.y

Or0ani1ation

The Dynamics of Organization

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