Organization theory and design: Lecture 2

Lecture 2

What is an Organization?
• Organizations are social entities that are goal directed,
are designed as deliberately structured and coordinated
activity system, and are linked to the external
environment.

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Organizations are:
• Social entities
• Goal directed
• Designed as deliberately structured and
coordinated activity system
• Linked to the external environment

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Importance of Organizations
• Bring together resources to achieve desired goals and
outcomes
• Produce goods and services efficiently
• Facilitate innovation
• Use modern manufacturing and computer-based
technology
• Adapt to and influence a changing environment
• Create value for owners, customers, and employees
• Accommodate ongoing challenges of diversity, ethics,

and the motivation and coordination of employees

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• Example of a bank

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