What is an Organization?

Organization- are human systems of cooperation and coordination assembled within identifiable boundaries to pursue shared goals or objectives.
Organization as a System

- a systems approach conveys the idea that organizations are made up of parts and the parts interacts w/ each other to accomplish the organizational goals.

Characteristics  as a System
1. Holism- means that a system show be considered as a functioning as a whole.

2. Syrnergy- refers to tthe interactive effect of the parts of the system working together.

Closed & Open System 

Closed Systems- are self- perpetuating and receive no outside energy or resources.
Open System - models acknowledge that organizations must receive energy in the form of important resources such as physical, human and financial resources from their external environment.

A basic open system has three parts:

1. Inputs

2. Transformation

3. Outputs

Subsystems & their Function

1. Boundary Spanning - refers to the input and output funtions.

2. Production Subsystem - produces the goods and services that make act the organizations output.

3. Maintenance - suppotrs the organizations by insuring that all subsystems and physical facilitates operate smoothly.

4. Adaptation - accountable for helping the organization change to meet new opportunities and threats in environment.

5. Management - responsiple for ensuring the all others subsystems works smoothly together.

Organization Structure

What is Structure?

Structure - refers to the sum total of ways in which an organization divide it’s labor task and then coordinates among them.

- refers to the arrangement of roles within the organization.

Formal & Informal Organization

Formal Organization - organizations create an officially sanction structure known as the formal organization.

Informal Organization - informal relationships are not necessarily sanction by the organization although they might be perceive actually exist.

Key Elements of Structure

1. Differentiation - involves breaking up the work to be done in an array of task.

2. Integration- refers to the necessary  coordination among this various task to ensure that the overall goals of the organization are achieve.

Horizontal Differentiation - refers to the division of work to be done in to task and sub-task at the same organizational level.

Vertical Differentiation - refers to the division of work by level of authority, hierarchy or chain of command.

Spatial Differentiation or Dispersion - can be both vertical or horizontal.

Organization Design

Functional Grouping - is that workers in each unit will be performing the same or similar task or activities using the same equipment or possessing the same sets of skills of knowledge.

Three types of Output Groupings

1. Products Produced

2. Market Served

3. Geographical Region Served

Organizational Social Responsibility

What is Social Responsibility?

           Social Responsibility- is a social obligation, beyond that required by the law and economics, for a firm to pursue long-term goals that are good for society.

Milton Friedman

Milton Friedman- is the most outspoken advocate of this view. He agrees that Manager’s primary responsibility is to operate the business in the best interest of the stockholders – the owners of the organization.

Social Obligation- the obligation of the business to meet its economic and legal responsibilities

2 Views on Social Responsibility

1. Classical view- the view that Management’s only social responsibility to maximize profits.
2. Socioeconomic view- the view that Management’s social responsibility goes well beyond the making of profits to include protecting and improving society’s welfare.

10 Major Arguments for Social Responsibility

1. Public Expectations
2. Long- run Profits
3.  Ethical Obligation
4. Public Image
5. Better Environments
6. Discouragement of Further Government Regulation
7. Balance of Responsibility and Power
8. Stockholders Interests
9. Possession of Resources
10. Superiority of Prevention over Cures

7 Major Arguments against for Social Responsibility

1.   Violation of Profit Maximization

3. Dilution of Purpose
4. Costs

5.   Too Much Power

6.   Lack of   Skills

7.   Lack of Accountability

8.  Lack of Broad Public Support

Social Responsiveness- is the capacity of a firm to adapt to changing societal conditions.

Managerial Ethics

Ethics- refers to the rules and principles that define right and wrong conduct.

4 Views of ethics

1. The Utilitarian view of ethics- states that ethical decisions are made solely on the basis of their outcomes or consequences.
2. The rights view of ethics- says that ethical decisions are concerned w/ respecting and protecting individual liberties and privileges such as the rights of privacy, freedom of conscience, free speech, life and safety and due process.
3. The theory of justice view of ethics- states that decision makers seek to impose and enforce rules and impartially.
4. The Integrative social contracts theory- proposes that ethical decisions should be based on empirical and normative factors.

Factors Affecting Managerial Ethics

1. Individual Characteristics
2. Structural Variables
3. Organization’s Culture

Code of Ethics

Code of Ethics- a formal statement of an organization’s primary values and ethical rules it expects its employees to follow.

                A Code of Ethics implies that before anything else, a professional is a person who has the obligation to listen to the “dictates of reason.” The need for it is obviously to the advantage of the profession. May businessmen, for example, do realize that “honest business” translates to “good business”. The public patronizes firms that are perceived to be reputable. The Code of Ethics for business proposed by the Bishops- Businessmen’s Conference for Human Development, Philippines, provides.

                Towards the customers, business shall in the production of goods and services.

-         Strive after a quality that will enable them to serve their purpose efficiently and effectively.

-         Avoid anything that would be detrimental to the health, safely or growth of the proper user or beneficiary of such goods and services.

-         And seek to apply or make use of the discoveries and inventions of science w/ adaptations that will improve their products or services, thereby benefiting customers/ users and increasing their number.

Entrepreneurship

Entrepreneurship- is the process whereby an individual or a group of individuals uses organized effort and means pursue opportunities to create value and grow by fulfilling wants and needs through innovation and uniqueness, no matter what resources are currently controlled.

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About:
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