Organization theory provides tools to understand, design, and manage orga-
nizations more effectively, including issues such as how to adapt to a changing
environment, cope with increasing size and complexity, manage internal conflict
and coordination, and shape the right kind of culture to meet goals.
■■ Managers today face new challenges, including globalization, intense compe-
tition, rigorous ethical scrutiny and the demand for sustainability, a need for
rapid response, adapting to the digital world, and increasing diversity.
■■ Organizations are highly important, and managers are responsible for shaping or-
ganizations to perform well and meet the needs of society. The structural dimen-
sions of formalization, specialization, hierarchy of authority, and centralization
and the contingency factors of size, organizational technology, environment, goals
and strategy, and culture provide labels for measuring and analyzing organizations.