Organization
Org. Culture
set of shared values that controls org. interaction with internal and external people
Org. Structure
system of task and authority relationships
coordinate actions and use resources to achieve goals
Value
Org. Input
Org. Conversion
Org. Output
Org. Environment
Transaction costs
Org. Theory
Study of how org. fucntions and how affected by the environment
Why?
Large-scale technology
Increases value that Organisations create
Economies of Scope
Economies of Scale
Manage external environment
Economize transaction costs
negotiating, monitoring, governing exchanges between people
Exert power and control
Increase specialization and the division of labor
Org. Design
managers select and manage structure and culture for control
Org. Change
process for redesigning structures and cultures so that an org. can control the activities
Measure effectiveness
External resource approach
CONTROL
Internal Systems Approach
INNOVATION
Technical approach
EFFICENCY
Org. Goals
Official goals
Operative goals
long term
shortterm
Mission