Organization • A collection of people working together in a division of labour to achieve a common purpose (usually for profit). • Purpose: To provide goods and services to satisfy the needs and wants of consumers • Linked to the quality of the product/service and customer satisfaction
Organization Systems • Open system - Organizations interact with their environment to transform resources into product outputs. • Closed system – No interaction with the environment (no longer used)
Open System Diagram The environment supplies The organization creates The environment consumes Resource Inputs People Money Materials Technology Information Transformation process Work activities turn resources into outputs Product outputs Finished goods and/or services Customer and client feedback
What are some ways that an organization communicates with its environment? How is it used? Class brainstorm
Smartphone focus group (5 minutes) • http://www.youtube.com/watch?v=p8A4yqN4_9A
Productivity • The quantity and quality of work performance, with resource utilization considered. • Breaks into Performance effectiveness and Performance Efficiency
Performance effectiveness Vs. efficiency • Performance effectiveness – An output measure of task or goal accomplishment • Performance efficiency – an input measure of resource costs associated with goal accomplishment.
What are some examples of output measurements? Class answer to fill in next slide
Changes in the workplace • Stronger emphasis on human capital • Emphasis on teamwork • Demise of “command-and-control” • Adjusting to new technology changes • Networking more real-time communication • Concern for work-life balance • Focus on speed to gain market share fast
What kind of bad experiences have you had with Managers? How could they have done better? Class Share
Managers • “… organizations perform better when they treat their members better… too many organizations fail to operate in this manner and, as a consequence, suffer performance failures.” (p14-15)
Manager • A person who supports and is responsible for the work of others. • Levels: Top, middle, project and team leader/supervisor • Types: Line, staff, functional and general • Functions: Planning, organizing, leading, controlling and staffing. • Role Areas: Interpersonal, Informational and Decisional
Levels of Managers • Top – Responsible for the performance of an organization as a whole, or for one of its larger parts (Executives, CEO, CFO, etc.) • Middle – oversee the work of large departments or divisions. • Project – Coordinate complete complex projects with task deadlines • Team leader/supervisor – Report to middle managers and directly supervise no non-managerial workers
Classwork • What is an organization and what is its purpose? • Why should you expect closed organizational systems to fail today? • In your own words, explain the meaning of Figure 1.2 at the top of page 13. How can a manager’s decisions impact performance effectiveness and efficiency? • Create a list of input and output factors that managers are able to track. Is numerical data the only important factor? • Read “Changing nature of organizations” P13. What are the most important changes that are occurring now. Explain your answer. • What is Total Quality Management (TQM) and why is it important to managers? • Detail the types of managers and what their responsibilities. If you had a choice, which type of manager would you like to be? • What kind of strategies would you use to motivate workers and create high performance?
Dimensions of organizational performance High Effective but not efficient Goals achieved Resources wasted Effective and efficient Goals achieved No resources wasted High Productivity Goal attainment Not effective or efficient Goals not achieved Resources wasted Effective but not efficient No wasted resources Goals not achieved Low Poor Good Resource Utilization