Content
Why do organizations exist? Why do they exist in the way that they are existing? Put differently –
what purpose do organizations really serve, and why? How can it be that after over a century of
theories about organizing, we still not have found the right way? And how shall we expect that to
change in the future? Is there anything we can learn about organizations of the past—irrespective
if they are real or fictional, for profit or not—that will help us design better organizations to solve
the problems of today, or leverage future opportunities such as the Internet of Things, Blockchain,
robotics, artificial intelligence, and so on?
This lecture introduces students to theories of organizations and their relevance to practice. Based
on key readings in organization theory, newspaper and magazine articles, and case studies,
students will learn about why organizations exist and how they function, use that knowledge to
analyze a non-characteristic organization, and showcase their versatility in dissecting organization
in a poster competition. As a result, this lecture will equip students with a thorough understanding
of why organizations are the way they are, are run the way they are run, and how they may
change – or not – in the future. Hence, students will be able to comment and analyze on existing
organizations, and ideally capable of becoming future organization designers.
Hence, topics include, but are not limited to:
- What is (not) an organization?
- The role of organization structure: does structure follow strategy or strategy follow structure?
- Simple perspectives on organization structure: contingency and configuration perspectives
- Organizing as farce: institutional theory
- Deterministic perspectives: population ecology, imprinting, and path-dependence
- Growing organizations
- Organizing as searching: the behavioral theory of the firm
- Organizations as power and networks: resource dependence and network theory
- Open forms of organization
- Organizing under extreme uncertainty: design thinking, abduction, and temporary organizations
- Holacracy and agile organizations
- The Future of Organizing – Organizations of the Future?
Learning outcomes
Knowledge-related outcomes
Upon completion of this module, students will be able to:
- Define, explain, and apply in practice key theories of organizations
- Interpret, classify, and assess the conduct and performance of any organization
- Describe, compare, and appraise different existing organization design solutions for a given
situation
- Distinguish the newly learned theories of organizations from previously learned perspectives
- Evaluate how environmental change may affect existing organization designs and theories
- Compose new organization designs
Skill-related outcomes
- Improve diagnostic and analytical skills (i.e., structured problem-solving)
- Build up critical thinking and interpretation skills
- Enhance verbal and argumentation skills via presentations and group discussions
- Hone ability to integrate into and interact with a team professionally, academically, and socially
(including leadership and project management skills, intercultural competences) through the group
tasks
Examination
This module is examined via exercises (“Übungsleistung”), using four elements to assess the
different learning goals of this course.
- Oral, individual: 40%. For each session of class, you will be given in advance a set of question to
prepare. We will assess your contributions to solving these question in class to see whether you
can define, explain, and apply key organization theories; describe, compare, and appraise existing
organization design solutions; and compose new organization designs . Students do not have to
be active or even present in every session to achieve full marks; given to be defined circumstances
and instructor permission, students may also submit written solutions prior to class as a basis of
grading
- Written, individual: 20%. At the end of the course, you will submit an individual reflection paper,
highlighting one key learning in this course, so as to show that you can distinguish the newly
learned theories of organizations from previously learned perspectives
- Written, group: 20%. as a group, you analyze one non-traditional organization drawing on
concepts learned in class to showcase that you can interpret, classify, and assess the conduct and
performance of any organization
- Poster, group: 20%. for same non-traditional organization as for the group paper, you will create
a poster to highlight the viability of the same organization for the future, to show you can evaluate
how environmental change affects existing organizations
Prerequisites
English. Given the highly interactive nature of the module (entirely in English), students should feel
comfortable expressing their opinion and interacting in English. Therefore, very good written and
spoken English language skills are required.
While there are no formal perquisites to attend this course, we very strongly recommend that you
have previously attended an introductory course on economics (such as “Principles of Economics”)
and management (such as “International Management”). These introductory courses should have
given you some first insights into what organizations are and how they operate – that means how
organizations are structured, and why they are structured in a certain way – very often building on
microeconomic theory. Courses on strategy will be similarly helpful; courses on leadership, HR,
or marketing most likely not. While we will not block you from joining the course per se, we want
to clearly point out that we will not go back to re-explain some of the first principles taught in such
courses, but we will assume that you know them, or freshen up on them on your own time. Indeed,
understand how the perspective on organizations you will receive in this course is different from
the perspectives you have gotten to know in other course may be one of the key learnings you will
achieve.
Teaching & learning methods
The largest share of this course will be co-developed by the course participants and the
instructor(s) through discussions of course materials and newspaper articles, as well as short
presentations. The lecturer will help facilitate and guide the course discussion through questions,
by taking notes on whiteboards, and by providing links across the different course sessions.
Students are strongly encouraged to take notes to facilitate cumulative learning across sessions of
class. Specific topics and definitions may be presented using PowerPoint slides. We will frequently
use the hall in the Entrepreneurship Center for exercises, in which students will apply and
inductively further develop content. Finally, a large share of learning will occur through students
preparing individually and in groups for the in-class session. Techniques to do so will be introduced
in the first session of class. Information on what materials to prepare will be provided for each
course session—this information will be available in the course syllabus, which will be available
weeks before the course on TUMonline.
Media & reading list
Specific & mandatory readings will be specified in the course syllabus, which will be available
weeks before the course on TUMonline.
Students interested in the topics of the course more broadly may also find the following books
helpful for this module. However, there is no obligation whatsoever to read them to pass this
module successfully:
- Aldrich, H.E. and Ruef, M. (newest edition). Organizations Evolving. Sage
- Ott, J.S., Shafritz, J.M., and Jang, Y.S. (newest edition). Classic Readings in Organization Theory.
Wadsworth.
- Scott, W.R. and Davis, G.F. (newest edition). Organizations and Organizing: Rational, Natural,
and Open Systems Perspectives. Pearson International Edition.
- In German: Kieser, A., Ebers, M. (newest edition). Organisationstheorien. Kohlhammer.
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