Introduction Organization 1

Oraganizations are made of people and structure

Organizations divide and coordinate

Organizations pursue shared goals and objectives

Facilitate complex innovation

Bring together and coordinate resources 

Produce goods and services efficiently

Create value for stakeholders

External environment

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                      Processes

>Inputs    >Transformation   >Outputs

                    Subsystems

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Indivedual effectiveness

Group effectiviness

Organizational effectiviness

Ability, Skills, Knowledge, Attitude, Motivation, Stress

Cohesiveness

Commitment

Leadership

Structure

Roles

Norms

Enviroment

Technology

Strategic choices

Structures

Processes

Culture

clarification of the significance of transaction costs and property rights

Basic dilemma: unlimited needs vs. limited resources

> Solution: Division of labour & specialisation

New dilemma: Coordination (and motiavation) of labor parts

>Solution Cnatracts, organizational design, management & leadership

Lack of knowledge (coordination problem)

Lack of motivation (motivation problem)

Division of labor & specialization <> productivity gains

Coordination& Trading motivation <> ressource consumption

Goal > Maximise the overall effect

But > lack of knowledge and lack of motivation