Session 1:

Introduction to Organizations

Amit Gupta, Ph. D.

Associate Professor, OB
Management Development Institute
Mehrauli Road, Sukhrali, Gurgaon - 122 007
Tel: +91-98105-87130
e-mail: amit.gupta@mdi.ac.in
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 General Administration

1. Course Objectives

2. Pedagogy

3. Class Syllabus / Reading Material

4. Class preparation

5. Assessment

6. Project work

7. Evaluation

8. Attendance

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 Level of Analysis

Industry, Ecology of Organizations, National, International

Inter-organizational,
community, ecological
system

Organizations

Groups /
departments

Individuals
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 Course Objectives

1. Organizational issues that impact organizations as a

unit of analysis – structures, processes and systems

2. Discipline rooted primarily in sociology

3. Emphasis on learning about concepts and application

of these concepts to organization-level phenomenon

4. Emphasis on learning vocabulary / terminology

related to organization-level phenomenon

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 Class Syllabus and Reading Material

1. Textbook – Richard L. Daft “Understanding the

Theory and Design of Organization” Cengage
Learning, Indian Edition 2012

2. Handout material with detailed syllabus, class

schedule, readings and cases.

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 Pedagogy

1. The course uses cases to explain how organizations

manage specific issues.
2. Kindly come prepared to the class by reading the
assigned case and associated material before
coming to the class.
3. When analyzing a case for a particular topic, examine
how organization has implemented that topic.
4. Reflect on how these concepts have been applied in
your organizations.
5. Get involved in class, ask questions, share your
views and experiences.

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 Assessment

1. Assessment will be from material covered in the

course (readings and cases)

Component Weight (%)

Class participation 5
Quizzes 15
Group project 20
Mid Term Examination 30
End Term Examination 30
TOTAL 100

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 Group Projects
Program office will form groups of class participants.

You are required to pick one organization and investigate the

following:
1. Various environmental elements and their impact on the
organization
2. Structure of the organization – how is the organization
divided into functions and departments, reporting
relationships, spans of control, various integrating
mechanisms used in the organization, relationships with
other organizations either as suppliers or distributors
3. Culture of the organization – how do organizational
members describe the culture of their organization and
what evidence they cite supporting the culture of the
organization
4. What are some of the current areas of concern / issues
being faced by the organization 8
 Other Administrative Issues

1. Presentations will be emailed to the class.

2. Attendance as per MDI policy.

3. All submissions by to amit.gupta@mdi.ac.in

4. Mention your name and role no. in communication.

5. Any meetings with prior appointment only.

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Questions?

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Society of Organizations

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1. How can we understand
today’s organizations?
2. How can we live in today’s
organizations?
3. How can we live with today’s
organizations?

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Organizations are instruments or
mechanisms for:
• Accumulation of resources
• Developing capabilities using these
resources
• Delivering goods and services
using these capabilities

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 Organizations – Definition

1. Most things cannot be done by an individual

acting alone – answer organizations.

2. Specific goals and objectives

3. Deliberately structured and managed

4. Specific products/services

5. Linked to external environment

6. Social entities

7. Legal entities

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 Types of Organizations
1. Size – Large and small
2. Ownership – Public, private, hybrid
3. For-profit and not-for profit
4. Manufacturing, service, advocacy
5. Different industrial sectors of economic activity –
construction, finance, education, food, etc.
6. Geographic reach – Domestic (national) and
multinational
7. Governmental and non-governmental
Question – what are the commonalities and differences
between these organizations? On what
characteristics? 15
Question – Why might be some differences between a for-
profit and a not-for-profit organization?

For-profit Not-for-profit
• Clear focus on • Focus on social issues/
products, services, impact – products,
customers, revenue, services, customers
profits might not always be
• Revenue stream based clear.
on sales effort – • Revenue stream from
offerings have to meet donations – Donors
customer requirements. very important.
• Paying customers • Non-paying customers
• Efficiency and • Efficiency and
effectiveness clear effectiveness not clear
• Competition • Competition??

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Ways of looking at organizations

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 Organizations may be viewed as:

Open systems – Environment

Rational systems – Structure and processes

Social systems – informal organizations,

cultures, conflict, power and politics

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 Organizations as Open Systems

• Open • Closed
• Changing • Stable
• Unclear cause-effect • Clear cause-effect
• Irrational / Intuitive • Rational / Logical
• Random / • Replicable /
unpredictable predictable

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 Organizations Metaphors

• Machines

• Organisms

• Brains

• Cultures

• Political systems

• Psychic prisons

• Flux and transformation

• Instruments of domination
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Organizational Archetypes / Patterns (Mintzberg)

Top
Management
(Boundary
Spanning)

Technical Administrative
Support Middle
Support
(adaptation) Management (maintenance)

Technical Core
(transformation)
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 My Model for the Course

External Environment

Strategies

Organizational Leadership

Organization Structure

Conflict, Power Enable

Organization Culture
and Politics Roles

Human Resources

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Environment Environment

Scope of Organizational
Theory

• Structure
• Technology
• Decision making
• Cultures
• Innovation
• Change and development
• Conflict, power and politics
• Inter-organizational
relationships
Environment Environment
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 Environment
Environment

ORGANIZATIONAL STRUCTURE
AND PROCESSES

CONTEXTUAL STRUCTURAL DIMENSIONS

1. Size 1. Formalization
2. Technology 2. Specialization/division
3. Environment of labor
4. Goals / 3. Hierarchy of Authority /
strategies span of control /
5. Culture bandwidth
4. Centralization
5. Professionalism
6. Personnel Ratios
Environment
Environment
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Business Models are key to Organizing

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 History of Organizational Theory
Standardization of work (division of task / labor)
Scientific management – Frederick Taylor

Principles of management
Administrative principles – Henri Fayol, Chester Barnard
Bureaucracy – Max Weber

Human Relations
Hawthorne experiments
Informal structure – interplay of formal and informal structure

Environment
Contingency theory – Notion of fit among factors (Woodworth,
Thompson, Lawrence and Lorsch)
Flexibility and responsiveness

Modernism/Postmodern theories (CAS, networks)

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