1. Organizational Design, Effectiveness, and Innovation
Chapter Seventeen

2. Learning Objectives
LO.1 Describe the four characteristics common to all organizations, and explain the difference between closed and open systems. LO.2 Define the term learning organization. LO.3 Review the factors that hinder an organization’s ability to learn from success and failure. LO.4 Describe seven basic ways organizations are structured. LO.5 Discuss Burns and Stalker’s findings regarding mechanistic and organic organizations.

3. Learning Objectives (cont.)
LO.6 Identify when each of the seven organization structures is the right fit. LO.7 Describe the four generic organizational effectiveness criteria. LO.8 Discuss the difference between innovation, invention, creativity, and integration. LO.9 Review the myths about innovation. LO.10 Explain the model of innovation.

4. What is an Organization?
system of consciously coordinated activities or sources of two or more people.

5. Organization Charts Organization chart
a graphic representation of formal authority and division of labor relationships

6. Sample Organization Chart for a Hospital

7. The Organization as an Open System

8. Learning Organizations
one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insights
Team mental model
represents team members’ shared, organized understanding and mental representation of knowledge about key elements of the team’s relevant environment

9. Designs That Open Boundaries between Organizations
Hollow structure
organization identifies core competencies and outsources noncore processes to vendors who can do them cheaper or faster
Modular structure
Outsources parts of a product instead of processes

10. Designs That Open Boundaries between Organizations
Virtual organization
organization identifies partners with the needed talents and negotiates an agreement in which the participants typically work in separate facilities, linked by technology

11. Mechanistic versus Organic Organizations
Mechanistic organizations
Rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication.
Organic organizations
Flexible networks of multitalented individuals who perform a variety of tasks

12. Different Approaches to Decision Making
Centralized decision making
key decisions are made by top management
Decentralized decision making
important decisions are made by middle- and lower-level managers

13. Getting the Right Fit
A functional structure can save money by grouping together people who need similar materials and equipment
Divisional structures increase employees’ focus on customers and products

14. Four Dimensions of Organizational Effectiveness

15. Organizational Innovation
Creation of something new that is used by consumers.