Org. Theory and Design: Chapter 1 (Matching)

Organizations = Tools people use to coordinate actions to achieve goals Entrepreneurship = Process of recognizing opportunities to satisfy needs and gathering resources Organizational environment = Forces and conditions that affect an organization's ability to create value Input = Resources like raw materials, information, human resources, and capital

Value creation = Occurs at three stages: input, conversion, and output New organizations = Spawned when new technologies become available and new needs are discovered Organizational transformation = Occurs when the needs an organization satisfied are no longer important Coordination of actions = Purpose of using organizations to achieve desired goals

Value creation stages = Input, conversion, and output Organizational growth = Depicted in figure 1.1 on page 25 Organizational death or transformation = Result of needs no longer being important Entrepreneurial process = Recognizing opportunities and gathering resources to meet needs

<p>To increase specialization and the division of labor = Allows for the development of specialization and a division of labor To use Large-Scale Technology = Enables the organization to take advantage of economies of scale and scope To manage the organizational environment = Involves developing specialists to anticipate or influence environmental pressures To economize on transaction costs = Involves reducing costs associated with negotiating, monitoring, and governing exchanges between people</p> Signup and view all the answers

<p>Organizational theory = The study of how organizations function and how they affect and are affected by the environment Organizational structure = The formal system of task and authority relationships that control how people coordinate their actions to achieve organizational goals Organizational culture = The set of shared values and norms that control organizational members’ interactions Organizational design = The process by which managers select and manage aspects of structure and culture to achieve organizational goals</p> Signup and view all the answers

<p>Organizational change = The process by which organizations redesign their structures and cultures to move from their present state to some desired future state Contingency = An event that might occur and must be planned for Competitive advantage = The ability of one company to outperform another because its managers are able to create more value from the resources at their disposal Core competences = Managers’ skills and abilities in value-creating activities</p> Signup and view all the answers

<p>External resource approach (control) = Indicators such as stock price, ROI, profitability, etc. Internal system approach (innovation) = Ability to redesign and improve products quickly in response to changing conditions in the environment Technical approach (efficiency) = Productivity, ratio between output and input Measuring effectiveness = Achieving organizational goals</p> Signup and view all the answers