ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
COURSE OUTLINE
Course Code MGMT 2063
Course Title Organizational theory
Credit Hours 3
ECTS 5
Prerequisite Courses No
Offering Time 2nd year,1st Semester
Category of the Course Core
Teaching & Learning Lecture, brain storming, individual reflections, group discussions, debates,
Methods
presentations, case study.
Course Description This course emphasizes on topics that are essential to organizational success,
including strategy implementation, innovation, organizational structure and
culture, change management, and power and influence. Throughout the
course, consideration will be given to the lessons and implications that
organization theory offers for individuals’ careers. In short, this course is
about ideas and practices that can make or break organizations and careers.
Thus this course is relevant to students considering careers in a wide range
of fields.
Course Objective Upon completion of this course, students will be able to:

 Demonstrate knowledge of the principles of organization structure

and design.
 Develop skills for understanding the impact of environment,
strategy, technology, organizational culture, change, and
organizational size on organizational and interorganizational
relationships.
 Demonstrate analytical skills in linking design/structure to
performance.
 Develop awareness of the decision making hierarchies,
bureaucracy, power and politics.
 Demonstrate knowledge of various organization theories which
enable managers to understand, predict, and influence
organizational design/structure and development.
 CONTENTS OF THE COURSE
CHAPTER 1 -. Organizations and Organization Theory (6 hours)

1.1. Organization theory in action.

1.2. What is an organization?
1.3. Perspectives on organizations: open systems and organizational
configuration.
1.4. Dimensions of organization design: structural and conceptual.
1.5. The evolution of organization theory and design.
CHAPTER 2- Strategy, Organization Design, and Effectiveness (7 hours)

2.1. The role of strategic direction on organization design.

2.2. Organization purpose.
2.3. A framework for selecting strategy and design/structure.
2.4. Assessing organizational effectiveness.
2.5. Contingency effectiveness approach, resource based approach, and
internal process approach.
2.6. An integrated effectiveness model.
CHAPTER 3- Fundamentals of Organization Structure (7hours)

3.1. Organization structure.

3.2. Information processing perspective in organization structure.
3.3. Organization design alternatives.
3.4. Functional, divisional, and geographical designs.
3.5. Matrix structure.
3.6. Horizontal structure
3.7. Modular structure.
3.8. Hybrid structure.
CHAPTER 4- Open Systems Design Elements (6 hours)

4.1. The external environment.

4.2. Inter-organizational Relationships.
4.3. Organization size and life cycle and design/structure.
4.4. Comparative management
CHAPTER 5- Organizational Culture and Organizational theory (5 hours)

5.1. Organizational culture

5.2. Organization design and culture
5.3. Culture and the learning organization
5.4. Ethical values in organizations.
5.5. Leadership and culture and ethics.
CHAPTER 6- Innovation and Change and Organizational Theory (6 hours)

6.1. The strategic role of change

6.2. Elements of successful change
6.3. New products and services
6.4. Technological change
6.5. Strategy and structure change
6.6. Cultural change
6.7. Strategies for implementing change.
CHAPTER 7-Decision-Making Process (5 hours)

7.1. Rational approach

7.2. Bounded rationality perspective
7.3. Organizational decision-making
7.4. The learning organization
7.5. Contingency decision-making perspective
7.6. Special decision circumstances.
CHAPTER 8- Conflict, Power, and Politics (6 hours)

8.1. Intergroup conflict in organizations.

8.2. Power and organizations
8.3. Political processes in organizations
8.4. Using power, politics, and collaboration

Classroom Etiquette: Students are expected to observe proper etiquette in class. Disruptions,
such as talking to a classmate and leaving in the middle of class must be avoided. All students
must maintain a high level of professionalism in their classroom with instructor and with their
fellow students. This means coming to class on time, being respectful during class discussions,
and in all communications with instructor and others
Academic Integrity: Academic Integrity is a fundamental value essential to the pursuit of
learning and scholarships at the University. Participating honestly, respectively, responsibly, and
fairly in this academic community ensures that the degree that you earn will continue to be
valued and respected as a true signifier of a student's individual work and academic achievement.
As a result, the University treats cases of academic misconduct very seriously.
References

 Richard l. Daft (2013), Organization Theory and Design (10 th ed.), Mason, OH: South-
Western, Cengage Learning.
 Shafritz, Jay, Ott, Steven, and Young Suk Jang. 2005. Classics of Organization Theory. 6th
edition.
 Miles, J. A. (2014). New Directions in Management and Organization Theory. Newcastle
upon Tyne: Cambridge Scholars Publishing
 Stanford, N. (2007). The Economist Guide to Organisation Design: Creating High
Performance and Adaptable Enterprises. London:
 Richard m. Hodgets& Donald F. Kuralko, “Management,” Harcount Brace Jovanovich
publishers, 1991, third ed.
 Robert N.Lussier, Management: concepts, Applications, and skil development, “South western
college publishing, 1997.
 Samul C.Certo, “Principles of Modern Management”, Allyn and Bacon Inc., boston, 1986.
 Y.K Bushan, “Fundametals of business Organization and Management”, Sultan chand& sons,
New Delhi.

Techniques of evaluation Weight

Test 1 10%
Test 2 10%
Quiz 5%
Assignment (Individual and group) 25%
Final Exam 50%
Total 100%