1 - Congruence Model

Management

"Management is the practice of formulating and implementing strategies in an organization"

Internal Fit

a fit or misfit between strategy and different elements of the transformation process

External Fit

a fit or misfit between strategy and environment

Organization

"a set of people coordinating their activity in pursuit of common goals"

Weberian Bureacracy

1. Specialized roles. 2. Recruitment based on merit (e.g. tested through open competition). 3. Uniform principles of placement, promotion, and transfer in an administrative system. 4. Careerism with systematic salary structure. 5. Hierarchy, responsibility and accountability. 6. Subjection of official conduct to strict rules of discipline and control. 7. Supremacy of abstract rules. 8. Impersonal authority. (e.g. Office bearer does not bring the office with him). 9. Political neutrality.

Outputs

Are we performing effectively in regards to: the organization, the individual, and the group

The Congruence Hypothesis

Congruence = the degree to which the needs, demands, goals, objectives, and/or structures of one component are consistent with those of the other The greater the congruence (fit) between components, the more effective the organization will be.

The Congruence Model

Developed by Nadler and Tushman, it is the currently accepted theory of open systems in organizational theory Model: -Inputs: Environment, Resources, History -=>Strategy=> -Transformation Process: People, Structure, Work, Culture -Output: Organization, Group, Individual

Old vs. New Organization Systems

Organization theory slowly evolved from examining static, closed systems (Weber) to dynamic, open systems (Nadler & Tushman)

Max Weber

Sociologist and organization theorist Wrote "Economy & Society", 1921 ("Wirtschaft und Gesellschaft")

Strategy

What businesses should we be in? And how should we compete in these businesses?

Inputs

What managers cannot control in the short term - The environment, resources, and history

Work

characteristics of jobs and how jobs are related to each other

People

characteristics of members of the organization (demography, personality, skills, motivation)

Culture

informal, implicit, assumed aspects of the organization (values, beliefs, communication patterns)

Transformation Process

tools the organization uses to convert inputs into outputs. It has four parts: people, structure, work, and culture

Structure and Systems

formal, explicit, codified aspects of the organization (org chart, rewards, control systems)