Organisation as a black box

Содержание

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Black box Organisation Environment

Black box
Organisation

Environment

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Organisation as a black box Goals (functions): Profit (short term) organisation

Organisation as a black box

Goals (functions):
Profit (short term)
organisation value (middle term)
surviving

(long term)
Resources:
land – ground, building, heavy and complex equipment
capital
labour (man-power) – HR
information
entrepreneurship talent
? Process ?
combine resources
transform the resources to article of trade
connect a need to the good / service
to find a need
to create a need
to exchange the products against new resources
? Concerned actors ?
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Organisational actors Organisation Founders Investors Managers Employees Trade unions Tax officials

Organisational actors
Organisation

Founders
Investors

Managers

Employees

Trade unions

Tax officials
Ecological Inspectors
Social controllers
Auditors

Local and State structures
Groups of interests

Free

lancers
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Playing Please, imagine the preparing to conclude the contract between actors

Playing

Please, imagine the preparing to conclude the contract between actors or

to bind the cooperation with.
Explain, what are the interests and the goals of different socio-economic actors:
owners
managers
employees
trade unions
Invited specialists (free lancers)
controllers
local / State structures
local / State officials
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Owners Goals Profit Dividends, income consumption Value Protection against inflation Stock

Owners

Goals
Profit
Dividends, income
consumption
Value
Protection against inflation
Stock exchange – rates of actions…
Child –

business for centuries
Sustainable development
Dimension
Power
Local reputation
...
? Intervene to organisation functioning ?
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Managers Wage Salary Bonuses Participation in property, ownership, actions Stock-options …

Managers

Wage
Salary
Bonuses
Participation in property, ownership, actions
Stock-options …
Power
Dimension of department / enterprise
line

in the CV
Additional privileges
Membership in clubs
Flat ; Representative car ; Telecom.
Mobile phone and notebook
Compensation of expenses
Travelling …

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Employees Employment Wage Salary Primes, bonuses … Content of work Interesting

Employees

Employment
Wage
Salary
Primes, bonuses …
Content of work
Interesting job – self-developing
Conditions of work
Schedule
Ecology
Ergonomic

conditions
Prospective – Career, experience
Long term future
Students after University
Reputation of the organisation
Additional +
Transport (placement)
Access to internet …
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Trade unions Defend the interests of employees Protection at workplace (conditions)

Trade unions
Defend the interests of employees
Protection at workplace (conditions)
Wage (minimal level,

indexation)
Discrimination (disabled persons, women, young people)
Participate in making decision (representatives in council)
Negotiations with administration
to save the enterprise, co-operate
i.e., Scandinavia, Germany (?) – compromise
to obtain, to realise requirements
i.e., France – fighting tradition
Their own personal interests ?
Negotiate with administration (money, privileges…)
Exercise power
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Invited specialists (free lancers) Money – honorary Portfolio Quality of product

Invited specialists (free lancers)

Money – honorary
Portfolio
Quality of product
Originality
Organisation’s name – reputation
Technologies

– equipment
New experience
Knowledge
New experience
Personal contacts
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Control structures Taxation Collect the income to budget Possible to negotiate

Control structures
Taxation
Collect the income to budget
Possible to negotiate (long term reasoning)
Labour

inspection
State laws
Ecology
Sanitarian control, firemen, healthcare…
Moral ??
Leaders (regional governor, national president/prime minister)
V.V. Putin in Pikalevo
V.V. Putin in the mine Raspadskaia
D.A. Medvedev about this summer fires
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Local / State structures Satisfy the needs of the nation, of

Local / State structures
Satisfy the needs of the nation, of people,

community
economy
political role, power in the world
social stability (decrease marginality)
Infrastructure (roads, schools, purification plants…)
Security (defence, health…)
Management of territory (parks, courts…)
Culture (education, museums, landscape…)
Satisfy the needs of their party
elections…
Local NGO, initiative groups
Needs of the community, inhabitants
humanitarian values
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Local / State officials Security wages stability of the position Responsibility

Local / State officials
Security
wages
stability of the position
Responsibility ??
As positive motivation
Career
Power
Stability
As danger
potential

punishment
Corruption
Personal interest
Only restrained group of people
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Organisation’s Goals: Financial goals: profit maximisation (and minimisation of costs) income

Organisation’s Goals:

Financial goals:
profit maximisation (and minimisation of costs)
income maximisation
sales maximisation
Stock value

maximisation
Market goals
Market part maximisation
Individual and group goals
Power, influence (department or organisation size)
Non economic goals
NGO (social, humanitarian, cultural...)

Maximisation
Satisfying
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Entrepreneurship theory The entrepreneurship activity consists in: Combining resources (capital, labour...)

Entrepreneurship theory

The entrepreneurship activity consists in:
Combining resources (capital, labour...)
Transforming invention into

innovation (Joseph Schumpeter)
Creative destruction across markets and industries
Taking risk in uncertainty
Leadership
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Agency theory Principal (delegates work to another) Owner Founders Investors Shareholders

Agency theory

Principal (delegates work to another)
Owner
Founders
Investors
Shareholders
Interests:
dividends + stock quotation

Opposite interests –

Contract theory (how economic actors can and do construct contractual arrangements, especially when the desires or goals of the principal and agent conflict)
Information cost and disposal (it is difficult or expensive for the principle to verify what the agent is actually doing)

Agent (performs that work)
Manager
Top executives in organisation
Interests:
revenue = salary + bonus + power (organisation size)

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Agency theory - consequences Information asymmetry one party has more or

Agency theory - consequences

Information asymmetry
one party has more or better information

than the other party in transaction the principal's inability to observe and/or verify the agent's action
Moral hazard
a party insulated from risk, such as through insurance, will be less concerned about the negative consequences of the risk than they otherwise might be, so less vigilant
Opportunism
practice of abandoning in reality some important principles that were previously held, in the process of trying to increase one's power and influence
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Managerialism «Managerial Revolution» (James Burnham, 1941) Elite of Graduates Elevating holders

Managerialism «Managerial Revolution» (James Burnham, 1941)

Elite of Graduates
Elevating holders of MBA degrees
Organising

principle in society:
Managerialist alternative to Socialism / Democracy
Technocracy as a system of governance
laws are enforced by designing the system such that it is impossible to break them
Techno-structure
Managerial methods
Managerial goals and solutions
Managers and technical specialists
Economic expansion reflects the goal to reach the optimal rates of power and prestige by following a path towards product excellence and maximum growth.
The main purpose of corporation is the market share or organisation growth, combined with satisfactory profits