Chapter 8: Organizations and Organizational Change Learning Objectives • Explain three theories of organizations .

1. Chapter 8: Organizations and Organizational Change Learning Objectives • Explain three theories of organizations. • Describe the components of social systems: roles, norms, and culture. • Explain downsizing, outsourcing, offshoring, and mergers and acquisitions. • Explain the creation of global organizations. • Discuss the rationale for organizational change. • Understand why employees resist change. • Understand the concept of organizational responsibility.

11. Chapter Summary • Organizations are complex social entities designed to achieve work-related objectives. •Classical organizational theory defined the structure of an organization in terms of four principles: functional, scalar, line/staff , and span of control. •Neoclassical organizational theory revealed that organizations are more complex than initially proposed by classical theory. •Mintzbergproposed a theory of organizational structure consisting of seven parts: strategic apex, middle line, support staff , technostructure, operating core, ideology, and politics. •Organizations are defined by a social system of roles, norms, and culture. •Downsizing, outsourcing, off shoring, and mergers and acquisitions are contemporary sources of job loss. •The modern economy has given rise to global organizations that through electronic communication operate across time and space. •Hofstedeprovided four classic dimensions useful in differentiating cultures around the world: power distance, individualism–collectivism, masculinity–femininity, and uncertainty avoidance. •Organizations change continuously to adapt to their environments. Organizations can change suddenly and painfully, with downsizing being a major form of change. •Organizations often resist change, thus it is important to understand the conditions under which change is likely to occur. •I/O psychology has recently recognized the need for organizations to contribute to the larger environment of which they are a part, the concept of organizational responsibility.