Transcript Applied Organizational Theory

Applied Organizational
Theory
Introduction
1
How to Form a Framework
for Analyzing Orgs?
Question we will be
seeking to answer this
semester
2
What Are the Main Org
Drivers in the US?
Subsidiary question
3
Five Interrelated
Revolutions in the US
 Globalization
 Technology,
especially computers
 Organizational Restructuring
 Empowerment of Workers
 Information Economy
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Globalization through
International Trade
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EXPORTS PLUS IMPORTS AS A SHARE OF U.S. GROSS DOMESTIC PRODUCT
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Trade Explodes
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Exports as a share of GDP for 49 Countries
Source: Business Week, Aug. 31, 1998, p. 66.
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Globalization and OT
Question:
How does the global revolution impact the
effectiveness and success of organizations?
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Globalization and OT
 Answer:
Instead of being insular, organizations are
competing globally.
Productivity is measured in global, rather than
national, terms.
Complexity of design of organizationss
increases dramatically.
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Technology and OT
 Question:
How does the technological revolution
impact the effectiveness and success of
organizations?
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High-Tech Growth Soars
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Information
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Rest of Econ
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Annual Growth Rate over Previous 3 years
Source: Business Week, Aug. 31, 1998, p. 66.
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Tech Prices Keep Falling
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Technology
Rest of Econ
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Annual Change in Prices over Previous 3 Years
Source: Business Week, Aug. 31, 1998, p. 67.
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Technology and OT
 Answer:
Increases skill (education, experience,
knowledge) requirements
Increases organizational complexity
Increases productivity
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Organizational
Restructuring
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Restructuring and OT
From the Hierarchical to the Flat Org
Executives
Upper Managers
Middle Managers
Lower-Level Managers
First Line Managers
Workers
Execs and Upper Managers
Middle Managers
Workers
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Restructuring and OT
 Question:
How does organizational restructuring
impact OT?
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Restructuring and OT
 Answer:
Restructuring is OT!
Increases skill (education, experience,
knowledge) requirements
Increases responsibility
Increases productivity
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Empowerment of Workers
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Empowerment and OT
Questions
Why empower employees?
How are employees being empowered?
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Empowerment and OT
Answers
Why empower employees?
Only practical way to implement restructuring
How are employees being empowered?
Job enlargement
Various types of teams
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Empowerment and OT
Net Result of Empowerment
Increases skill (education, experience, knowledge)
requirements
Increases responsibility
Increases productivity
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Information Technology
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The Technology Revolution
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US Shipments of PC’s in Millions
Source: The Economist, Jun. 13, 1998, p. 20.
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Information Tech and OT
 Question:
How does information technology impact
the org?
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Information Tech and OT
 Answer:
Increases skill (education, experience,
knowledge) requirements
Increases productivity
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The Beginning
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