KC 1 summaries: chapter 1; 3
Introduction
1.What is an organization:
Why do we have organizations?
why do we organize and have organizations?
Management of economy tasks: We need a lot of people to do this and specialists in
their sub domains.
We organize to achieve aims.!!
Produce a product or service=revenue. Create organization to facilitate this process
6 reasons to why we organize
1) Division of labor: smaller blocks to work/focus on
(2) Coordination of tasks: different specialist contributes to different things
(3) Specialization of labor: complex and specific tasks
(4) Economies of scale and scope: if you do a task a lot of times, get better at it, have
required resource for it. it pays off if you do it in large quantities: economy scale. large
quantities, less cost. economy of scope: you do a lot of tasks, have expertise, so you them a
lot of them and well.
(5) Manage interaction with environment: organize the interaction with environment, if
you are a large company, you have influence on environment how are things done, laws etc.
If a team sells a collective labor to environment, you accomplish more.
(6) Exert power and control: for firms as an individual doesn’t happen.
JONES PP.27-29
,What do organizations do ….
They convert input into desire output. Create and structure environment in which tasks are
being completed in which raw materials are turn into goods or skills into services.
4 ways structure of organizations: the design of coordination and spilting up of taks. Shape
the organization structure. 3 ways + Organizational Culture, here it’s an overview, we will
study this later in detail.
,INTERNAL REQUIREMENTS DESIGN
How are firms configured to achieve aims?
mechanistic (typical): tec helps here. very standard process. focus of authority. very
systematic process. Manufacture type of plant
organical: nowadays. on the job learning, socialize. less rigid.
Real world falls in between two extremes, and we will talk nuances.
EXTERNAL REQUIREMENTS DESIGN
, Crafted to fit your industry: adjust to your environment. How does outside affect how we
organize and the actions.
2.What is a theory
So now we know what organization is, it’s 2 architypes, what influences internal/external.
Now we move on to theory… inform our actions.
Where do theories come from? We all have theories not scientific necessarily, how do
theories arise?
How do theories arise. explain main predictions about reality events.
Concepts: We craft theory by taking observations of reality and creating concepts. To be
able to generalize ideas!!!
From concepts to theories:
A theory is a system of statements targeted at describing, explaining, and
predicting a real-world phenomenon (Bacharach 1989)
– Statements consist of constructs and propositions (i.e., relationships between
constructs). This helps make an explanation and sense of reality, a logical and
coherent explanation.
– Collectively, this system presents a logical, systematic, and coherent
explanation of the real-world phenomenon within certain boundaries.