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Understanding ComplexOrganizations

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Content & Structure

Basic Concepts

How Work Is

Organized Advanced Concepts

How Goals AreEstablished

Application

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Basic Concepts

OrganizationalStructure

How Work IsOrganized

Processes In WorkOrganizations

How Things GetDone

OrganizationalBoundaries

Most Organizations Are Still Too Hierarchical

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The Concept of Structure

All Organizations Have Structures

Can Understand Structure In Terms of

Three Dimensions:

Centralization

Formalization

Standardization

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Structure As a Continuum

Anchor IBureaucracy

Highly CentralizedHighly Formalized

Highly Standardized

Slow

Focused onEfficiency

Clear Boundaries

Anchor II TheNetworkedOrganization

Decentralized

Few Rules

Fast andAdaptive

Focused onInnovation

LeakyBoundaries

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The Human Side Of Structure

Managerial Elite

Top 10 Percent

Technical &Professional Class

Perform Work ThatManagers Cannot

Insignificant People

If You Object To The Term Insignificant, Look At

What Happened At Enron, Tyco, Global Crossing, etc.

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Processes In Organizations

Dynamic

Ordered

Sequence OfEvents

A Beginning & An

Outcome

Operate Within

Structures

A Simple, Three Stage Process

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Important Processes

Resource Allocation

Goal Formation

Conflict & Conflict Resolution

Decision-Making

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Boundaries & Boundary Spanning

Internal

Organization

ExternalEnvironments

Line of Demarcation

PhysicalPsychological

Sociological

Do Boundaries Make Sense

In A Global, Networked

Economy?

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Boundaries & Structure

Classic Thinking Is

That The Technical

Core Must BeBuffered

Buffering Done By

Specialists CalledBoundary Spanners

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Boundary Spanners

InterpretEnvironmental

Trends Limit Uncertainty

Boundary SpanningUnitsMarketing

Finance

Looking & Seeing Are

Not The Same Thing

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End of Basic Concepts

Things to Think

About:

How Does StructureInfluence Processes?

Boundaries?

What Happens When

EstablishedBoundaries AreBreached?

Thinking Differently

Often Leads To Deeper

Understanding

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Advanced Concepts

Coalitions & Coalition

Formation

The Dominant

Coalition

Goals & Goal

Formation Many People Believe ThatOrganizations Have A

Common Purpose

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Coalitions In Organizations

People With Common

Interests & Goals

Exist WithinOrganizational Structure

Hidden, Not Part OfReporting Relationships

Membership Is FluidCoalitions Form To Put

Forth Common Interests

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Coalition Formation & Dynamics

Property of Organizations

Coalitions Are Constantly Forming andDisbanding

Coalitional Power & Membership Is In Flux Membership Is Based On Self-Interest

Coalitions Bargain For Resources Large Power Differences Among Them

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The Dominant Coalition

Responsible For Running

The Organization

Drawn From OtherCoalitions

Allocates Resources

Responsible For The

Organizations Future A Great Deal Of TrustHas Been Lost In The

Dominant Coalition

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Goals & Goal Formation

How Many Goals

Does An

Organization Have?How Are They

Formed?

How AreDivergences

Resolved?

Getting Everyone Moving

In The Same Direction Is

Not An Easy Task

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A Divergent Set Of Goals

Formal

Organizational

Goals Implicit

Organizational

GoalsCoalitional Goals

Personal Goals

Goals Are Not Always

In Alignment

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Process of Goal Consensus

Job Of The

Dominant Coalition

Done ThroughBargaining

Goal Consensus Is

Temporary,Unstable, and

Expensive

Bargaining Is Politicized

And Contentious

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End of Advanced Concepts

Things To Think

About:

How Rational Is TheResources Allocation

Process?

What Kind Of

Outcomes Are To BeExpected From AnIrrational Process?

Money Changes Everything

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Application: Basic Concepts

Structure, Process

and Boundaries

Define How A FirmOrganizes Its

Business, Its Work

Flow, and Its

Interaction With The

World

Basic Concepts AreUsed To Understand

Organizational Design

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Application: Advanced Concepts

The Dominant

Coalition And Other

Coalitions InOrganizations

Determine Goal

Formation And The

Firms Direction

Advanced Concepts Are

Needed To UnderstandWhy Organizations Move

In Any Given Direction

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Module Summary

Basic Tools For

Understanding

OrganizationsStructure

EmbeddedProcesses

Boundaries

Advanced Tools For

Understanding

OrganizationsCoalitions

The DominantCoalition

Goals and GoalFormation