Organizational Theory

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1) ORGANISATIONAL THEORY

Organisational theory is designed to understand the nature of the organisations. By which organizations can evaluate its overall business by putting the right structure and operate in different ways. Organisational theory also helps us understand how processes such as change and decision making can be managed. It deals with different structures and cultures such as large organizations have different structures and cultures than small ones, and the manufacturing organisations operate in a different way than those in the service sector.

(Burton & Obel, pp. 11 to 12)

2) ORGANISATIONAL DESIGN

Organization Design is a formal, guided process for integrating the people, information and technology of an organisation. It is used to match the form of the organisation as closely as possible to the purpose the organization seeks to achieve. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful.

(Burton & Obel, p. 13)

3) ORGANISATIONAL STRUCTURE

Organisational structure has long been described as a mechanism through which effort is integrated through the coordination and control of activities There are many different types of structures and for years researchers and practitioners attempted to determine what type of structure was in fact the most effective. This line of inquiry has led ultimately to a contingency view of structure, that is, the most appropriate structure for a given organisation is a function of the type of environment that organisational operates within and the technology it utilizes.

4) ORGANISATIONAL CULTURE

Organisational culture is the personality of the organisation. Culture is comprised of the as...

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...l be always changing in response to changes in the external environment, organisational design must be changed as the external environment changes(CBA 2001). For example, In the Queensland state CQU has a competitive advantage over Griffith University and equal to University of Queensland in terms of profit because at end of the day profit is calculated ( SEE APPENDIX 1). The top management had designed its structure and culture in such a way that it is having a competitive advantage over its competitors. Many sources of competitive advantage, such as skills in research and development that result in novel product features or state of the art technology, quickly disappears because they are relatively easy for the competitors to imitate. It is much more difficult to imitate organisational design that brings into being a successful organisational structure and culture.

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