Organization theory provides tools to understand, design, and manage organizations 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 competition, 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 organizations to perform well and meet the needs of society. The structural dimensions 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.