Organisational theory, design and change

7 important questions on Organisational theory, design and change

What is organisational theory?

The study of how organizations function and how they affect and are affected by the environment in which they operate.

What is organisational structure?

The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.

What is organisational culture? Can culture in an organisation change, if so - how?

The set of shared values and norms that controls organizational members’ interactions with each other and with suppliers, customers, and other people outside the organization.

Culture changes as the organisation grows and differentiates but can be managed through the organisational change.
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What is organisational design?

The process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.

What is a contingency?

An event that might occur and must be planned for.

Ex. Rising gas prices

Why is organisational design important in a global context?

It is important because in order to become a global competitor, an organisation will have to change its culture and structure from time to time.

What is the consequence of a poor organisational design?

Decline of the overall organisation.

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