BU398 Chapter 1

Vocabulary flashcards covering definitions and core concepts from pages 37–46 of the lecture notes on organization theory, structural/contextual dimensions, open systems, alignment, and Mintzberg’s model.

Micro vs. Macro OB

Micro

• Study of individual and group behaviour within organizations

Macro

• Study of whole organizations and how they adapt to their environments; focuses on organizational-level phenomena

Organization

A social entity that is goal-directed, deliberately structured and coordinated, and linked to its environment.

Key element

• People and their relationships, not physical buildings or written procedures.

Organization Theory (OT)

A broad, loosely connected field that studies competing theories about how organizations achieve effectiveness, adapt, grow, survive, and interact with technology, competition, ethics, and culture.

Open Systems Approach

Perspective that views organizations as interacting with and adapting to their external environment.

Closed System

Organizational view that assumes a stable environment and focuses primarily on internal efficiency.

Open System

Organizational view that must obtain inputs (boundary spanning), transform them (production, maintenance, adaptation, management), and export outputs while continually adapting to environmental changes

Structural Dimensions

Attributes that describe an organization’s internal characteristics:

• formalization

• specialization

• hierarchy of authority

• centralization

• professionalism

• personnel ratios

Contextual Dimensions

Attributes that characterize the entire organization and its environment, including

• goals

• strategy

• size

• technology

• culture.

Formalization

The degree to which rules, procedures, and written documentation govern behavior in an organization.

High - extensive rules (govt.)

Low - flexible (startup)

Specialization

The level to which organizational tasks are subdivided into separate jobs.

High - deep expertise (hospital)

Low - generalist role (small biz)

Hierarchy of Authority

The configuration of reporting relationships and the span of control within an organization.

Tall - many levels, narrow spans (bank)

Flat - few, wide levels (tech)

Centralization

Extent to which decision-making authority is concentrated at higher levels of the organization.

Professionalism

The level of formal education and training of employees within the organization.

Personnel Ratios

Numerical relationships of various employee categories (e.g., supervisors to workers) used to describe workforce composition.

Mintzberg’s Five Organizational Parts

Model dividing organizations into the

1. administrative staff

2. middle management

3. technical core

4. technical support staff

5. top management

Top Management

Component that provides overall direction, strategy, goals, and policies for the organization.

Middle Management

responsible for implementing strategy and coordinating departments.

Technical Core

Section charged with producing the organization’s primary product or service.

Technical Support Staff

Group that helps the organization adapt to the environment and drives innovation.

Administrative Support Staff

Units such as HR, finance, and IT that ensure smooth internal operations.

Input Roles (Boundary Spanning)

Functions that obtain resources from the environment, such as purchasing, recruiting, or market research.

Throughput Roles (Transformation)

Functions that transform inputs into products/services and maintain operations.

Output Roles (Boundary Spanning)

Functions that transfer products/services to the environment, including advertising, sales, and distribution.

Efficient Performance vs the Learning Organization

•From Vertical to Horizontal Structure

•From Routine Tasks to Empowered Roles

•From Formal Control Systems to Shared Information

•From Competitive to Collaborative Strategy

•From Rigid to Adaptive Culture

•The Emerging Bossless Design Trend

Organizational Effectiveness Perspectives

Goal Approach:

Resource-Based Approach:

Internal Process Approach:

Strategic Constituencies Approach:

Competing Values Framework:

Goal Approach

Effectiveness = achieving stated goals

Resource-Based Approach

Effectiveness = acquiring needed resources from environment

Internal Process Approach

Effectiveness = internal health and efficiency

Strategic Constituencies Approach

Effectiveness = satisfying key stakeholders

Competing Values Framework

Balances internal/external focus with flexibility/control emphasis