ORGANIZATIONAL BEHAVIOR
After studying chapter 15 and listening to class lecture,you should be able to:
Identify the six key elements that define an organization’ s structure.
Explain the characteristics of a bureaucracy.
Describe a matrix organization.
Explain the characteristics of a virtual organization.
Summarize why managers want to create boundaryless organizations.
Contrast mechanistic and organic structural models.
List the factors that favor different organizational structures.
Why do structures differ?

What Is Organizational Structure?
What Determines Organizational Structure?
To what degree are tasks subdivided into separate jobs?
On what basis will jobs be grouped together?
To whom do individuals and groups report?
How many individuals can a manager efficiently and effectively direct?
Where does decision-making authority lie?
To what degree will there be rules and regulations to direct employees and managers?
Key Design Questions and Answers for Designing the Proper Organization Structure

Common Organization Designs

A Horizontal Organization
Common Organization Designs
The Bureaucracy
Strengths
Functional economies of scale
Minimum duplication of personnel and equipment
Enhanced communication
Centralized decision making
Weaknesses
Subunit conflicts with organizational goals
Obsessive concern with rules and regulations
Lack of employee discretion to deal with problems
Decentralization: Benefits When Low and When High

Matrix Structure (College of Business Administration)

Mechanistic vs. Organic Designs
Mechanistic Versus Organic Models
A Virtual Organization
Organization Structure: Its Determinants and Outcomes
New Design Options
What Is Organizational Structure? (cont’ d)
Economies and Diseconomies of Work Specialization
What Is Organizational Structure? (cont’ d)
What Is Organizational Structure? (cont’ d)
Contrasting Spans of Control
What Is Organizational Structure? (cont’ d)
Common Organization Designs (cont’ d)
New Design Options
New Design Options (cont’ d)
Why Do Structures Differ?
Why Do Structures Differ?
Why Do Structures Differ? -Strategy
The Strategy-Structure Relationship
Why Do Structures Differ? -Technology
Why Do Structures Differ? -Environment
What Is Organizational Structure? (cont’ d)
The Three Dimensional Model of the Environment
Organizational Designs and Employee Behavior

The Concept of Development
Definitions, Theories and Contemporary Perspectives
Definitions of Development
For almost every writer a different definition of development exists
Important to first distinguish between:
a. Development as a state or condition-static
b. Development as a process or course of change- dynamic
Meaning of Development-Todaro
Development is not purely an economic phenomenon but rather a multi-dimensional process involving reorganization and reorientation of entire economic AND social system
Development is process of improving the quality of all human lives with three equally important aspects. These are:
Todaro’ s Three Objectives of Development
1. Raising peoples’ living levels, i.e. incomes and consumption, levels of food, medical services, education through relevant growth processes
2. Creating conditions conducive to the growth of peoples’ self-esteem through the establishment of social, political and economic systems and institutions which promote human dignity and respect
3. Increasing peoples’ freedom to choose by enlarging the range of their choice variables, e.g. varieties of goods and services

Alternative Interpretations of Development (Mabogunje)
Development as Economic Growth- too often commodity output as opposed to people is emphasized-measures of growth in GNP. Note here the persistence of a dual economy where the export sector contains small number of workers but draws technology as opposed to traditional sector where most people work and is dominated by inefficient technology
Alternative Interpretations of Development
Development as Modernization- emphasizes process of social change which is required to produce economic advancement; examines changes in social, psychological and political processes;
How to develop wealth oriented behavior and values in individuals; profit seeking rather than subsistence and self sufficiency
Shift from commodity to human approach with investment in education and skill training
Alternative Interpretations of Development
Development as Distributive Justice- view development as improving basic needs
Interest in social justice which has raised three issues:
1.Nature of goods and services provided by governments
2. Matter of access of these public goods to different social classes
3. How burden of development can be shared among these classes
Target groups include small farmers, landless, urban under-employed and unemployed
Alternative Interpretations of Development
Development as Distributive Justice- view development as improving basic needs
Interest in social justice which has raised three issues:
1.Nature of goods and services provided by governments
2. Matter of access of these public goods to different social classes
3. How burden of development can be shared among these classes
Target groups include small farmers, landless, urban under-employed and unemployed
Marxist View of Development
Emphasizes Mode of Production – elements and activities necessary to produce and reproduce real, material life
Capitalist (market economy) mode depends on wage labor whose labor power produces a surplus which is accumulated and appropriated by the employer-result is often class conflict in capitalist societies

Neocolonial Dependence Model
Outgrowth of Marxist thinking-Dos Santos
Existence of underdevelopment due to historical evolution of an unequal international capitalist system of rich country-poor country relations
Sets up center (developed countries) versus periphery (developing countries) contrast
Attempts to become self-reliant and progressive are surpressed by this relationship
Moreover certain elites in the developing world (e.g landlords, entrepreneurs, merchants) enjoy high incomes, social status and political power and thus perpetuate inequality and conformity and are rewarded
They serve international power groups such as multi-national firms, assistance agencies (World Bank) and other agents
Sustainable Development
Defined as development that is likely to achieve lasting satisfaction of human needs and improvement of the quality of life and encompasses:
Help for the very poorest who are left with no option but to destroy their environment to survive
Idea of self-reliant development with natural resource constraints
Cost effective development using different economic criteria to the traditional -i.e. development should not degrade environment
Important issues of health control, appropriate technologies, food self-reliance, clean water and shelter for all
People centered activities are necessary- human beings are the resources in the concept

Theories of Development
1940-50s- Keynesian growth theory -process of capital of formation is determined by savings and investment
Domestic savings are chanelled to productive investments such as manufacturing which result -usually-in high productivity
Growth is market driven as income levels rise, savings rises and frees capital for alternative investment
Theories of Development
Modernization Theory -as noted previously this theory suggests that economic dimension alone is insufficient and adds theories on institutional and social change
Incorporates non-economic elements such as social practices, beliefs, values and customs (McClelland, Achieving Society)
Diffusion and speed of change is critical as is removal of various cultural and social barriers
Backward internal structures-rather than external factors-cause underdevelopment
Theories of Development
NeoLiberal Development Theory- grew in the 1970s and designed to counteract impact of Keynesianism
New emphasis on supply side factors in development- private initiatives and market led growth
Move away from demand stimulation (interest rate manipulation), import substitution, state intervention and centralized planning
Gradual industrialization with òtrickle down’ of benefits to all social classes
Theories of Development
Popular Development- what is it?
Avoids ògrand theories’ and emphasizes solutions viewed in context of development which is part of historical process
Context of development is constantly changing in scale and time
Accommodates geographical and historical diversity
Theory of little use to practitioners of development
Stresses local diversity, human creativity, process of social change through pragmatism, flexibility and context
Not extent of state intervention but comparative advantages of public and private sectors and their complementarity

Popular Development and Environment
Recognizes high opportunity costs associated with irreversible environmental damage
Dealing with environmental problems requires solutions sensitive to local social and ecological conditions
Society and nature relations are affected by variations in class, gender and ethnicity
Reproductive squeeze forces peasants to intensify production in fragile environments
Popular Development, Space and Place
Bottom up approaches (as opposed to top-down) to peoples’ participation are important in this view
How are various social groups and classes affected by rural-urban, core-periphery and other spatial interactions?
Growing importance of decentralization of decision-making and authority from center to periphery
Popular Development and Power
How does the power structure affect development?
Examine sources of empowerment, inequality and discrimination
Need to devise more people centered approaches which stress empowerment and participation
Empowerment as participatory development seeks to engender self-help and self-reliance but also effective collective decision-making
What causes underdevelopment?
Very easy to focus on characteristics of development
For example we know that underdevelopment is usually characterized by: low per capita incomes, low literacy and educational attainment, lack of basic services- water and power
But how do we EXPLAIN underdevelopment?
Some Common òTheories
Old view that absence of development caused by certain physical environments, particular cultural traditions and value systems-environmental and cultural determinism
Lack of natural resources certainly impediment to development but not impossible- example of Japan
Why has Japan succeeded?
Reasons for Japanese Success
Strong cooperation between government and business
Able to adapt to spatial-physical situation and acquire a maritime prowess
Early development (Meiji restoration) of transport and banking systems
Highly literate population
Niche development- technology driven
Other Common Explanations of Underdevelopment
Instability and other adverse internal situations- political factors
Some truth to this as extended periods of turbulence are not conducive to development- central African nations with tribal rivalries and ethnic cleansing
Poor physical environment- lack of rainfall, poor soils also may pose barriers to development
Vicious Circles- Gunnar Myrdal
Complex web of interlocking vicious circles each of which constitutes a chain of cause and effect relationships where one unfavorable circumstance leads to another and produces downward spiral
High Birth Rate> Large Families>Low PCI> Poverty> Low Output Per Worker>
Low PCI> Low Productivity> Poor Health>Inadequate Housing
Remedy > Downward spiral not reversible without massive aid
Remedy for Vicious Circle
Aid would stimulate growth in modern sector and reduce size of òinformal’ or traditional sector
Thus eliminate dualism and the major causes of unequal distribution of wealth
Foreign aid would allow countries to increase low levels of productivity
Another Common Explanation
Colonialism As Scapegoat
Attacking vicious circle proponents-do not explain how these magic circles come into existence
Need to view development in historical perspective as sequence of dynamic events-explore roots
Colonialism viewed as the cause of disintegration and decline- how?
Colonialism as Scapegoat
Indigenous population exploited
Traditional way of life and self sufficient mode of production have been destroyed
Forced to pay taxes and conscripted labor practices
Social differentiation increased- disintegrating force
Fatal effects on secondary (manufacturing) and tertiary (service) sectors- import of cheap goods forced indigenous artisans out of work
Discouraged modern industrialization
Colonialism as Scapegoat cont’ d
Thus what occurred in these situations was dependent not autonomous development
Colonial powers extracted wealth for home country-Netherlands, France, Great Britain
International division of labor (IDL) and western dominated trading structure was created to take advantage of colonial authority
IDL=allocation of tasks among laborers such that each one engages in tasks that he performs most efficiently and this promotes worker specialization and productivity
What to Do With Development Theory ?
Several theories have been advanced have been criticized and some also discredited îto be replaced by other theories
Third World is very heterogeneous-dissimilar in terms of population, resources, climates, culture , economic structure and location
Unlikely that one theory will be powerful enough to explain underdevelopment everywhere
What to Say About Development Theory ?
Underdevelopment must be seen as a product of an array of complex and continuously changing interactions between:
1. Past and Present
2. Natural and Human Environments
3. External and Internal Conditions
Multitude of obstacles to development vary with place and time
Critical to remember that the above theoretical ideas aid us in asking pertinent questions

Corporate Strategy: Vertical Integration and Diversification

What Is Corporate Strategy?
Corporate strategy
Corporate strategy is the way a company creates value through the configuration and coordination of its multi-market activities
Quest for competitive advantage when competing in multiple industries
Example: Jeffrey Immelt’ s initiative in clean-tech and health care industries

Corporate strategy concerns the scope of the firm
Industry value chain
Products and services
Geography

Transaction Cost Economics and Scope of the Firm
Transaction cost economics
Explains and predicts the scope of the firm
“Market vs. firms” have differential costs

Transaction costs
Costs associated with economic exchanges
Either in the firm OR in the markets
Ex: negotiating and enforcing contracts

Administrative costs
Costs pertaining to organizing an exchange within a hierarchy
Ex: recruiting & training employees

Firms vs. Markets: Make or Buy
Should a firm do things in-house (to make)? Or obtain externally (to buy)?

If Cin-house < Cmarket, then the firm should vertically integrate Ex: Microsoft hires programmers to write code in-house rather than contracting out Firms and markets have distinct advantages and disadvantages (see Exhibit 8.2) Firms vs. Markets: Make or Buy? Disadvantage of make in-house Principal -agent problem owner = principal, manager = agent Agent pursues his/her own interests Disadvantage of buy from markets Search cost Opportunism Incomplete contacting Enforce legal contacts Information asymmetries One party is more informed than others Akerlof - Lemons problem for used cars Receiving Noble prize in Economics Types of Vertical Integration Full vertical integration Ex: Weyerhaeuser Owns forests, mills, and distribution to retailers Backward vertical integration Ex: HTC' s backward integration into design of phones Forward vertical integration Ex: HTC' s forward integration into sales & branding Not all industry value chain stages are equally profitable Zara -primarily designs in-house & partners for speedy new fashions delivered to stores Benefits of Vertical Integration Benefits of vertical integration Market power Entry barriers Down-stream price maintenance Up-stream power over prices Securing critical supplies Lowering costs (efficiency) Improving quality Facilitating scheduling and planning Facilitating investments in specialized assets Ex: HTC started as OEM & expanded to fully integrated Benefits of Vertical Integration Specialized assets Assets that have significantly more value in their intended use than in their next best use Types of specialized assets Site specificity Co-located such as coal plant and electric utility Physical asset specificity Bottling machinery Human asset specificity Mastering procedures of a particular organization Risks of Vertical Integration Increasing costs Internal suppliers lose incentives to compete Reducing quality Single captured customer can slow experience effects Reducing flexibility Slow to respond to changes in technology or demand Increasing the potential for legal repercussions FTC carefully reviewed Pepsi plans to buy bottlers Alternatives to Vertical Integration Taper integration Backward integrated but also relies on outside market firms for supplies OR Forward integrated but also relies on outside market firms for some of its distribution Strategic outsourcing Moving value chain activities outside the firm's boundaries Example: EDS and PeopleSoft provide HR services to many firms that choose to outsource it. Corporate Diversification: Expanding Beyond a Single Market Degrees of diversification Range of products and services a firm should offer Ex: PepsiCo also owns Lay's & Quaker Oats. Diversification strategies: Product diversification Active in several different product categories Geographic diversification Active in several different countries Product -market diversification Active in a range of both product and countries Motivations For Diversification Value Enhancing Motives: Increase market power Multi-point competition R&D and new product development Developing New Competencies (Stretching) Transferring Core Competencies (Leveraging) Utilizing excess capacity (e.g., in distribution) Economies of Scope Leveraging Brand-Name (e.g., Haagen-Dazs to chocolate candy) Leveraging Core Competencies for Corporate Diversification Core competence Unique skills and strengths Allows firms to increase the value of product/service Lowers the cost Examples: Wal-mart -global supply chain Infosys -low-cost global delivery system The core competence -market matrix Provides guidance to executives on how to diversify in order to achieve continued growth Other Motivations For Diversification Motivations that are Value neutral : Diversification motivated by poor economic performance in current businesses. Motivations that Devaluate : Agency problem Managerial capitalism ( empire building ) Maximize management compensation Sales Growth maximization Professor William Baumol Diversification Issue #1: When there is a reduction in managerial (employment) risk, then there is upside and downside effects for stockholders: On the upside, managers will be more willing to learn firm-specific skills that will improve the productivity and long-run success of the company (to the benefit of stockholders). On the downside, top-level managers may have the economic incentive to diversify to a point that is detrimental to stockholders. Diversification Issue #2: There may be no economic value to stockholders in diversification moves since stockholders are free to diversify by holding a portfolio of stocks. No one has shown that investors pay a premium for diversified firms -- in fact, discounts are common. A classic example is Kaiser Industries that was dissolved as a holding company because its diversification apparently subtracted from its economic value. Kaiser Industries main assets: (1) Kaiser Steel; (2) Kaiser Aluminum; and (3) Kaiser Cement were independent companies and the stock of each were publicly traded. Kaiser Industries was selling at a discount which vanished when Kaiser Industries revealed its plan to sell its holdings. Corporate Diversification Internal capital markets Source of value creation in a diversification strategy Allows conglomerate to do a more efficient job of allocating capital Coordination cost A function of number, size, and types of businesses linked to one another Influence cost Political maneuvering by managers to influence capital and resource allocation Bandwagon effects Firms copying moves of industry rivals Sustainable Competitive Advantage Trying to gain sustainable competitive advantage via mergers and acquisitions puts us right up against the efficient market wall: If an industry is generally known to be highly profitable, there will be many firms bidding on the assets already in the market. Generally the discounted value of future cash flows will be impounded in the price that the acquirer pays. Thus, the acquirer is expected to make only a competitive rate of return on investment. Sustainable Competitive Advantage And the situation may actually be worse, given the phenomenon of the winner' s curse. The most optimistic bidder usually over-estimates the true value of the firm: Quaker Oats, in late 1994, purchased Snapple Beverage Company for $1.7 billion. Many analysts calculated that Quaker Oats paid about $1 billion too much for Snapple. In 1997, Quaker Oats sold Snapple for $300 million. Sustainable Competitive Advantage Under what scenarios can the bidder do well? Luck Asymmetric Information This eliminates the competitive bidding premise implicit in the efficient market hypothesis Specific-synergies (co-specialized assets) between the bidder and the target. Once again this eliminates the competitive bidding premise of the efficient market hypothesis.

Three-Dimensional Computer Animation
Erli Ling
Introduction
Animation
all moving imagery involves a sequence of still images played back quickly enough for your eye to see them as continuous

still images are produced individually is known as animation

Computer-generated animation
the impact of this goes well beyond what you normally think of as animation.

it also used to produce movie special effects, video games, scientific simulations, architectural walk-throughs.
Techniques
Traditional techniques
The most basic technique: to draw and then photograph each frame one by one
Technical advances made: the use of transparent sheets (cels), onto which were painted different layers of a scene

Computer techniques
The first program developed in NYIT focused on two-dimensional animation and enabled the animator to produce automatically what are called the in-between frames.
The next step entailed applying this same principle to three-dimensional animation.

The computer automatically generated the in-between positions and rendered each position as a frame of animation.
Today three-dimensional computer animation is no longer limited to mimicking the techniques of traditional cel animation
Basic steps
Storyboard
a sequence of images and verbal descriptions describing the intended animation
3D storyboard sample

Modeling
developing a mathematical, wireframe representation of any 3D object via specialized software

Rendering
the computer processes the three-dimensional data that define your model to produce flat, two-dimensional representations of the model

see-through wireframe-> hidden-line-> shaded rendering

Animation
a series of still images that, when played back in quick succession, appear as continuously moving
much of 3D CG is based on key-framing approach
postproduction
compositing + editing
3D video demos
Jinghua City View
Music
Pixar production
Animator vs Animation
Chicken
3D water
Bear golf
3ds max tutorial

Conclusion
The basic steps to produce 3D computer animation
design and planning -> modeling the shape of an object -> rendering the surface of an object, the lighting, the use of the camera -> animating -> postproduction

Apply
animation, television-commercial graphics, feature-film market. Industrial designer, architects, interior designer, sculptor, biologist, chemist, medical professionals

Software
Most popular 3D modelers: 3D studio Max, Alias, Blender (open source), Maya, LightWave
Free modelers available via the Internet: Blender, Wings 3D, K-3D, SmoothTeddy, SketchUp

See more here

The end Thank you!

Problem: Tough competition and demanding customers.
Solutions: Redesigned order and production processes reduce costs, increase revenue, and improve customer service.
Oracle E-Business Suite makes it possible to build cars to order and forecast demand and production requirements more accurately.
Demonstrates IT’ s role in analyzing market trends and monitoring quality, efficiency, and costs.
Illustrates the emerging digital firm landscape where businesses can use tools to analyze critical data.

What is an information system?
A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization