Introduction to Organization

The key element of organization is not building or a set of policies or procedures.

Organizations are made up of people and their relationships with one another.

An organization exists when people interact with one another to perform essential functions that help attain goals. Bring together resources to achieve desired goals and outcomes.

Produce goods and services efficiently.

Facilitate innovation.

Use modern information and manufacturing technologies.

Adapt to and influence changing environment.

Create value for customers, owners and employees.

Organization theory gives us the tool to analyze and understand what happened in the past, as well as what may happen in the future, so that organizations can be managed effectively.

Structural Dimensions:

Describe the internal characteristics of an organization

Contextual Dimensions:

Everything that shapes the structure of the organization

Formalization refers to the reliance of written documentation in the organization.

Such documentation refers to procedures, job descriptions, regulations and policy manuals.

Larger organizations tend to score high on the formalization because they have written rules to authorize and control wide range of activities.

A small family owned business may have almost no written rules.

It is the degree to which organizations tasks are subdivided into separate jobs.

If specialization