1. Office: BA1015 Office Phone: (806) 742-1514 Email: tyge.payne@ttu.edu Managing Innovation and Change An Introduction (1) Dr. Tyge Payne (with Dr. Keith Brigham)

2. Overview for Today T. Payne2 1. Introduction to Organizations 2. Major Theoretical Perspectives 3. Goals, Strategy & Environment 4. Structure 5. Processes & People 6. Coordination & Control

3. T. Payne3  Weber (1924; 1947, trans.) defines organizations as “a social relationship which is either closed or limits the admission of outsiders by rules, …so far as its order is enforced by the action of specific individuals whose regular function this is, of a chief or head and usually also an administrative staff.”  Key components of this definition:  Organizations involve social relationships.  Organizations have boundaries.  Organizations have hierarchy of authority and division of labor  Organizations are “associative” and have goals  Weber’s definition serves as the basis for most others!! Organizations

4. T. Payne4  Basic Definition: Organizations are human systems (2 or more people) of cooperation and coordination assembled within identifiable boundaries to pursue shared goals or objectives.  Includes corporations, armies, schools, hospitals, churches, and prisons, but NOT tribes, classes, ethnic groups, or families.  Common Features: 1. All must define (and redefine) their objectives or goals 2. All must induce participants to contribute services 3. All must control and coordinate these contributions 4. Resources must be garnered from the environment and products or services dispensed 5. Participants must be selected, trained and replaced 6. All organizations must utilize resources to maintain the organization itself (the means themselves absorb energy) Defining Organizations

5. T. Payne5 Key Elements of Organizations Levitt’s Diamond: A Model of Organization (1965) Environment Organization Social Structure Participants GoalsTechnology 1. Goals & Strategy 2. Environment Physical, technological, cultural, social 3. Social Structure Normative: Values, Norms, Roles Cultural-Cognitive: Schemas, Models Behavioral 4. Participants Stakeholders, Employees 5. Technology Knowledge, Processes and Hardware transforming Inputs to Outputs

6. T. Payne6  Just like individuals, no two organizations are exactly alike, despite these common elements.  Differences (not an all-inclusive list): 1. Size (Wal-Mart now employs over 1.8 million) 2. Sector of Operation (Public vs. Private; Manufacturing vs. Services) 3. Goals / Objectives (Profitability, Social Issues, Etc.) 4. Demographic Composition (Gender, Ethnicity, Etc.) 5. Proportion of Employee Types (Independent, Part- time, Temps) 6. Structural Differences (Flat vs. Tall; Networks) 7. Environmental Situations (Dynamic vs. Stable) Organizations Differ

7. T. Payne7 Why Study Organizations?  We spend most of our time in organizations – at work, home, worship, and leisure.  Understanding organizational differences and similarities generally serve as the basis for making change.  The job of a manager (particularly those in leadership positions) is to make informed decisions and take action that improve organizational efficiency and effectiveness.  Implementation of any strategic change typically has a structural component.

8. T. Payne8 Our Key Questions  Why and how do organizations differ?  Primarily answered by Contingency, Configurations, and Network/Social Capital Theories.  Why and how do organizations change?  Primarily answered by Fit/Misfit, Institutional, Identity, Cognition, and Knowledge Theories.

9. T. Payne9 Burton et al. Framework