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

Contingency