Applied Organizational Theory

1
Applied Organizational Theory

• Introduction

2
How to Form a Framework for Analyzing Orgs?

• Question we will be seeking to answer this
  semester

3
What Are the Main Org Drivers in the US?

• Subsidiary question

4
Five Interrelated Revolutions in the US
Globalization Technology, especially computers O
rganizational Restructuring Empowerment of Worker
s
Information Economy
5
Globalization through International Trade
EXPORTS PLUS IMPORTS AS A SHARE OF U.S. GROSS
DOMESTIC PRODUCT
6
Trade Explodes
Exports as a share of GDP for 49 Countries
Source Business Week, Aug. 31, 1998, p. 66.
7
Globalization and OT

• Question
• How does the global revolution impact the
  effectiveness and success of organizations?

8
Globalization and OT
Answer Instead of being insular, organizations a
re competing globally. Productivity is measured i
n global, rather than national, terms.
Complexity of design of organizationss increases
dramatically.
9
Technology and OT
Question How does the technological revolution i
mpact the effectiveness and success of
organizations?
10
High-Tech Growth Soars
Annual Growth Rate over Previous 3 years
Source Business Week, Aug. 31, 1998, p. 66.
11
Tech Prices Keep Falling
Annual Change in Prices over Previous 3 Years
Source Business Week, Aug. 31, 1998, p. 67.
12
Technology and OT
Answer Increases skill (education, experience, k
nowledge) requirements Increases organizational
complexity
Increases productivity
13
Organizational Restructuring
14
Restructuring and OT
From the Hierarchical to the Flat Org
Executives
Upper Managers
Middle Managers
Execs and Upper Managers
Lower-Level Managers
First Line Managers
Middle Managers
Workers
Workers
15
Restructuring and OT
Question How does organizational restructuring i
mpact OT?
16
Restructuring and OT
Answer Restructuring is OT! Increases skill (ed
ucation, experience, knowledge) requirements
Increases responsibility
Increases productivity
17
Empowerment of Workers
18
Empowerment and OT

• Questions
• Why empower employees?
• How are employees being empowered?

19
Empowerment and OT
Answers Why empower employees? Only practical wa
y to implement restructuring How are employees be
ing empowered? Job enlargement Various types of
teams
20
Empowerment and OT
Net Result of Empowerment Increases skill (educat
ion, experience, knowledge) requirements
Increases responsibility
Increases productivity
21
Information Technology
22
The Technology Revolution
US Shipments of PCs in Millions
Source The Economist, Jun. 13, 1998, p. 20.
23
Information Tech and OT
Question How does information technology impact
the org?
24
Information Tech and OT
Answer Increases skill (education, experience, k
nowledge) requirements
Increases productivity
25
The Beginning