Reducing complexity, constraints of capabilities, facilitation of orientation and coordination, stability of conditions, predicability of occurrences
Organization vs. Organism
Targets vs instincts, configured targets vs determinated instincts, easy vs hard to modify, seeking vs having homeostasis (balance within self regulating systems), structure vs culture
Characteristics of a company
Economic organization (covering long term expense through income, payoffs through resource shifts) Specific value added (bring value for other systems, fulfill stakeholder needs) Socio-technical systems (humans supplemented through technical auxiliaries Economic competition (creation of new shortages, shortage removal)
Organizational characteristics
1 justified for durability, aim to last long (need stability, flexibility and ability to learn and innovate) 2 Order (maybe rigid but mantains regularity and guides behavior) 3 various elements, consist of different parts (legal bodies, people, units) 4 Collective, works together as a whole (requires coordination and cooperation, also involves balancing conflicts and competing interests) 5 efficient delivery of purpose (choosing the right targets and finding solutions while balancing stakeholder needs)
Three issues of organizations
Organizational purpose (targets, performance creation, tendency to grow, necessary adaptability)
Integrity/synergy (performance, production (also ideas knowledge, growth, effectiveness) (governing) (adaptation)
Structure (
Efficiency
Profitability benchmark (output input relation) Sales Profit Total process length ROI Productivity
Smallest organizational unit Intangible and tangible elements Dissociation from other offices
Synthesis criteria Provider (humans, equipment) Place Time
Bureaucracy
Origin: France Corner Stone: Max Weber RATIONALITY Behaviour becomes PREDICTABLE like machines
Three forms of sovereignty
Charismatic (appreciation, adoration, Napoleon)
Legal (bound to rules, rational and fair, superior subordinate, BUREAUCRACY)
Traditional (social standing, master servant, monarchy)
Characteristics of bureaucracy
Restriction of rules Documentation Hierarchy Labor division & specialization Specialized personnel Separation of private sector and office
Advantages of bureaucracy
Stable Predictable consistent Gaining specific knowledge Efficient employment of specific equipment
Disadvantages of bureaucracy
Restricting individual freedom Hard to oversee, limited control Difficult equal treatment Hazard of misuse, self justice Avoids individual accountability High cost and time effort