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How Organizations Work, and Why Yours Doesn’t

How Organizations Work, and Why Yours Doesn’t. Reed E. Nelson RENELSON@SIU.EDU REEDENELSON.COM. Three Components of Every Organization. Goals: Who do we serve Boundaries: What Gets In Activity System: How Work Gets Done.

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How Organizations Work, and Why Yours Doesn’t

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  1. How Organizations Work, and Why Yours Doesn’t Reed E. Nelson RENELSON@SIU.EDU REEDENELSON.COM

  2. Three Components of Every Organization Goals: Who do we serve Boundaries: What Gets In Activity System: How Work Gets Done

  3. Goal/Domain= Turf, Who we aim to please, or What part of the environment we want to control Domains can be broad or narrow, stable or unstable. Usually when they are broad, they are also less stable

  4. Boundaries: What gets into and out of the organization, and on what terms Boundaries can be permeable or impermeable. Examples are: Price, Location, Breadth of Product Line, Entry and Exit Requirements, Debt, Speed of Service

  5. Activity System Simple or Complex Flexible or Inflexible Complex= many different elements Flexible= ease of change

  6. Effectiveness= Fit Do boundaries and activity systems fit with the organization’s domain

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