Organization As A System - Final

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ORGANIZATION SYSTEM

Provides a general analytical framework (perspective) for viewing an organization.

ORGANIZATION
Organizations are social entities that are goal directed are designed as deliberately structured and coordinated activity systems and are linked to the external environment.

IMPORTANCE OF AN ORGANIZATION
Bring together resources to achieve desired goals and outcomes. Produce goods and services efficiently. Facilitate innovation Used modern manufacturing and computer based technology. Adapt to and influence a changing environment. Create value for owners, customers and employees. Accommodate ongoing challenges of diversity , ethics and the motivation and coordination of employees.

ORGANIZATIONAL STRUCTURE
The way in which job task are formally divided, grouped and coordinated. Elements of structure. Work Specialization. Departmentalization. Chain of Command. Span of Control. Centralization and Decentralization. Formalization.

ORGANIZATIONAL STRUCTURE
WORK SPECIALIZATION : The degree to which task in an organization are subdivided into separate jobs.

ORGANIZATIONAL STRUCTURE
DEPARTMENTALIZATION: The basis by which jobs in an organization are grouped together .

ORGANIZATIONAL STRUCTURE
CHAIN OF COMMAND : That extends from the top of organization : The unbroken line of authority to the lowest echelon and clarifies who reports to whom.

ORGANIZATIONAL STRUCTURE
SPAN OF CONTROL : The number of subordinates a manager can effectively and efficiently direct.

ORGANIZATIONAL STRUCTURE
CENTRALIZATION AND DECENTRALIZATION: The

degree to which decision making is concentrated at a single point in an organization.

ORGANIZATIONAL STRUCTURE
FORMALIZATION : The degree to which job in an organization are standardized.

BOUNDARYLESS ORGANIZATION
An organization that seeks to eliminate the chain of command have limitless span of control, and replace departments with empowered teams.

SYSTEMS THEORY

Synergy. Interdependence. Interconnections .


within the organization between the organization and the environment

A set of elements standing in inter-relations

VIEWING ORGANIZATION AS A SYSTEM

System is a set of interacting elements that acquires inputs from the environment, transforms them, and discharges outputs to the external environment. Interacting elements means that people and department depend on one another and must work together. Inputs to an organization system include employee, raw materials and other physical resources, information and financial resource. Transformation process changes these inputs into something of value that can be exported back to the environment. Output include specific products and services for customers and clients and it may also include employee satisfaction, pollution and other by product of transformation process

CLOSED SYSTEM a system that is not influenced by and does not interact with its environment Autonomous, enclosed and sealed off from the outside. Although a true closed system cannot exist.. Ex Government organizations. OPEN SYSTEM a system that dynamically interacts with its environment. Consumes resources and export resources from the environment. Complex system. Ex. MNCs

ORGANIZATION AS A OPEN SYSTEM

STRENGTHS

Recognizes . . .

interdependence of personnel. impact of environment on organizational structure and function. affect of outside stakeholders on the organization.

Focuses on environment and how changes can impact the organization Seeks to explain synergy & interdependence Broadens the theoretical lens for viewing organizational behavior.

IMPLICATIONS OF THE SYSTEMS APPROACH

Coordination of the organizations parts is essential for proper functioning of the entire organization. Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. Organizations are not self-contained and, therefore, must adapt to changes in their external environment.

CONCLUSION

The systems view suggests that, in order to survive, organizations need to be


Adaptive: the capacity to evolve and develop to make the most of a changing environment Interdependent: organisations interact with the environment in complex ways, influenced by it but also shaping it Dynamic: constantly balancing the need for order and coherence with that for flexibility.

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