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 Five Interrelated Revolutions in the USin the US

GlobalizationGlobalization Technology, especially computersTechnology, especially computers Organizational RestructuringOrganizational Restructuring Empowerment of WorkersEmpowerment of Workers Information EconomyInformation Economy

5

Globalization through International Trade

0

10

20

30

'60 '65 '70 '75 '80 '85 '90 '93

EXPORTS PLUS IMPORTS AS A SHARE OF U.S. GROSS DOMESTIC PRODUCT

6

Trade Explodes

0

5

10

15

20

25

82 84 86 88 90 92 94 96 98

Exports as a share of GDP for 49 CountriesSource: 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 OTGlobalization and OT

Answer:Answer: Instead of being insular, organizations Instead of being insular, organizations

are competing globally.are competing globally.Productivity is measured in global, rather Productivity is measured in global, rather

than national, terms.than national, terms.

Complexity of design of Complexity of design of organizationss increases dramatically.organizationss increases dramatically.

9

Technology and OTTechnology and OT

Question:Question: How does the technological revolution How does the technological revolution

impact the effectiveness and success impact the effectiveness and success of organizations?of organizations?

10

High-Tech Growth Soars

0

5

10

15

20

91 92 93 94 95 96 97 98

Information

Rest of Econ

Annual Growth Rate over Previous 3 yearsSource: Business Week, Aug. 31, 1998, p. 66.

11

Tech Prices Keep Falling

-12

-10

-8

-6

-4

-2

0

2

4

6

91 92 93 94 95 96 97 98

Technology

Rest of Econ

Annual Change in Prices over Previous 3 YearsSource: Business Week, Aug. 31, 1998, p. 67.

12

Technology and OTTechnology and OT

Answer:Answer: Increases skill (education, experience, Increases skill (education, experience,

knowledge) requirementsknowledge) requirements Increases organizational complexityIncreases organizational complexity Increases productivityIncreases productivity

13

Organizational Restructuring

14

Executives

Upper Managers

Middle Managers

First Line Managers

Workers

Lower-Level Managers Execs and Upper Managers

Middle Managers

Workers

From the Hierarchical to the Flat Org

Restructuring and OT

15

Restructuring and OTRestructuring and OT

Question:Question: How does organizational restructuring How does organizational restructuring

impact OT?impact OT?

16

Restructuring and OTRestructuring and OT

Answer:Answer: Restructuring is OT!Restructuring is OT! Increases skill (education, experience, Increases skill (education, experience,

knowledge) requirementsknowledge) requirements Increases responsibilityIncreases responsibility Increases productivityIncreases productivity

17

Empowerment of Workers

18

Empowerment and OT

Questions Why empower employees? How are employees being empowered?

19

Empowerment and OT

AnswersWhy empower employees?

Only practical way to implement restructuring

How are employees being empowered?Job enlargementVarious types of teams

20

Empowerment and OT

Net Result of EmpowermentIncreases skill (education, experience, Increases skill (education, experience, knowledge) requirementsknowledge) requirementsIncreases responsibilityIncreases responsibilityIncreases productivityIncreases productivity

21

Information Technology

22

The Technology Revolution

0

5

10

15

20

25

30

35

40

81

83

85

87

89

91

93

95

97

US Shipments of PC’s in Millions

Source: The Economist, Jun. 13, 1998, p. 20.

23

Information Tech and OTInformation Tech and OT

Question:Question: How does information technology How does information technology

impact the org?impact the org?

24

Information Tech and OTInformation Tech and OT

Answer:Answer: Increases skill (education, experience, Increases skill (education, experience,

knowledge) requirementsknowledge) requirements Increases productivityIncreases productivity

25

The Beginning