Case Study Considering one of the theories/approaches, what are issues with this scenario? How should it have been handled and why?

Organizational Theory – Part 2 Systems Theory Chapter 4 Recap/Lecture

Organization = System  Organization as system of interdependent parts  Open system: environment provides input and receives output  Interdependence  Consider relationship among different parts  Division of labor – impact?  “organizational effectiveness depends on the coordination of the total enterprise” (p. 97)

Other Important Factors  Environment  Examples: competition, industry changes, potential consumers  Boundary spanners  Changing environment  Need for adaptability and contingency plans  Interrelationships  parts and processes  Communication – importance?

Other Important Factors  Feedback  Goals  “…negotiated among interdependent factions in the organization and are heavily influenced by its environment” (p. 105)  ‘may differ across system levels’ (p. 106)  No ‘one size fits all’ approach  Openness, order, contingency  Equifinality (more than one way to reach same goal)  ‘Two tenets of contingency theory: No one best way and all ways not equally effective’ (p. 108)

Examples of Theories  Peter Senge’s Learning Organization  Systems thinking, personal mastery, flexible mental models, a shared vision, team learning  “participate and holistic notion of effective organizing” (p. 109)  Reflective openness

Examples of Theories  Karl Weick’s Sense-Making Model  Equivocality reduction  Same facts – multiple interpretations. Make sense of it all  Model of organizing  Enactment  Look for threats and opportunities  Importance of environmental scanning  Selection  Communication  collective sense making  Retention  Retroactive sense making  Loose coupling  Partial inclusion  Organization = community or social setting

Emphasis on Relationships  Classical Management: manager/worker relationships  Human Relations and Human Resources: quality of relationships? (latter: more than just venting session)  Systems theory: importance of interrelationships  Cultural studies: ?????? (discuss next week)  Should be fostered inside or outside of the organization? Or both?

Group Activity  Environmental Scanning  Look for issues that may impact Wal-Mart (be able to explain how/why)  Look at other issues; what organizations might be affected? How so?  Be prepared to informally share findings