ITM 102 Lecture Notes - Lecture 3: Rand Corporation, Ebay, Starbucks

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Stable, formal social structure that takes resources from the environment and processes them to produce outputs. A formal legal entity with internal rules and procedures, as well as a social structure. A collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution. Structure: hierarchy, division of labour, rules, procedures, business processes, culture. Routines (standard operating procedures) precise rules, procedures, and practices developed to cope with virtually all expected situations. New is may require change in routines. Divergent viewpoints lead to political struggle, competition, and conflict. Encompasses set of assumptions that define goal and product. How and where it should be produced. For whom the products should be produced. May be powerful unifying force as well as a restraint on change. Organizations and environments have a reciprocal relationship. Organizations are open to, and dependent on, the social and physical environment.

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