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Organization’s size is typically measured by the number of employees. Other measures such as total sales or total assets also reflect magnitude, but they do not indicate the size of the human part of the system. GE was very large, with hundreds of thousands of employees.
Organizational technology refers to the tools, techniques, and actions used to transform inputs into outputs. It concerns how the organization actually produces the products and services it provides for customers and includes such things as flexible manufacturing, digital information systems, and the Internet. An automobile assembly line, a social media platform, a college classroom, a ride-hailing app, and an overnight package delivery system are technologies, although they differ from one another.
The environment includes all elements outside the boundary of the organization. Key elements include the industry, government, customers, suppliers, and the financial community. The environmental elements that affect an organization the most are often other organizations.
The organization’s goals and strategy define the purpose and competitive techniques that set it apart from other organizations. Goals are often written down as an enduring statement of company intent. A strategy is the plan of action that describes resource allocation and activities for dealing with the environment and for reaching the organization’s goals. Goals and strategies define the scope of operations and the relationship with employees, customers and competitiors.
An organization’s culture is the underlying set of key values, beliefs, understandings, and norms shared by employees. These underlying values and norms may pertain to ethical behavior, commitment to employees, efficiency, or customer service, and they provide the glue to hold organization members together. At GE, for example, Jack Welch implemented Work-Out sessions to create a culture of open and direct conversation among employees and managers. The five structural dimensions and five contingency factors discussed here are interdependent. Certain contingency factors will influence the appropriate degree of specialization, formalization, and so forth for the organization. For example, large organization size, a routine technology, and a stable environment all tend to create an organization that has greater formalization, specialization, and centralization. The organizational features illustrated in Figure X-3 provide a basis for measuring and analyzing characteristics that cannot be seen by the casual observer, and they reveal significant information about an organization. Consider, for example, the dimensions of Valve Software compared with those of Walmart. Valve is a small organization that ranks very low with respect to formalization and centralization and has a medium degree of specialization. Horizontal collaboration to serve customers with innovative product is emphasized over the vertical hierarchy. Walmart is much more formalized, specialized, and centralized, with a strong vertical hierarchy. Efficiency is more important than new products and services, so most activities are guided by standard regulations. Rules are dictated from the top and communication flows down a strong vertical chain of command. Structural dimensions and contingency factors can thus tell a lot about an organization and about differences among organizations. Performance and Effectiveness OutcomesThe whole point of understanding structural dimensions and contingency factors is to design the organization in such a way as to achieve high performance and effectiveness. Managers adjust various aspects of the organization to most efficiently and effectively transform inputs into outputs and provide value. Efficiency refers to the amount of resources used to achieve the organization’s goals. It is based on the quantity of raw materials, money, and employees necessary to produce a given level of output. Effectiveness is a broader term, meaning the degree to which an organization achieves its goals. defining goals and measuring the organization’s progress toward attaining them is the most common way managers assess effectiveness. For example, at GE, described here, Jeff Immelt set new goals for sustainability, as well as goals in other areas, such as innovation and global growth. A small hardware store might set weekly sales goals. In a manufacturing company, managers might set specific targets in areas such as conformity-to-specializations quality, flexibility (both product mix and volume), and speed and timeliness of delivery. To be effective, all organizations need clear, focused goals and appropriate strategies for achieving them. The concept of effectiveness, including goals and strategies and various approaches to measuring effectiveness are here. An alternative approach to measuring effectiveness, the “stakeholder approach, assess diverse organizational activities by looking at what various organizational stakeholders want from the organization, and the satisfaction level of each. A stakeholder is any group within or outside of the organization that has a stake in the organization’s outcomes. Examples of stakeholders include:
Managers carefully balance the needs and interests of various stakeholders in a setting goals and striving for effectiveness. The satisfaction level of each group can be assessed as an indication of the organization’s performance. The stakeholder approach will be discussed elsewhere.
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What are the characteristics of organizations quizlet?There are three common characteristics of organization which is distinct purpose, deliberate structure, and people. This purpose is typically expressed in terms of a goal or a set of goals that the organization hopes to accomplish.
Which of the following is true of effective information sharing in an organization?Which of the following is true of effective information sharing in an organization? The structure should fit the information requirements of the organization.
Which of the following is a difference between organization design and organizational behavior?Which of the following is a difference between organization design and organizational behavior? Organization design might be considered the sociology of organizations, while organizational behavior is the psychology of organizations.
Which two of the following are essential characteristics of a global organization?Which two of the following are essential characteristics of a global organization? Compete in more than one country and operate in more than one country. How does a successful organization achieve a future outcomes? By working together and coordinating actions among employees.
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Which of the following provides labels to describe the internal characteristics of an organization?
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