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LECTURE 2 Organisational theory - its importance for an integrated business environment Power, influence and group effectiveness A. Organisational theory Organizations have existed for thousands of years and people have intuitive understanding of how organizations work (see Box 1.2 from Handy, 1987, p. 17). The question is what makes an organization successful and another one unsuccessful? The answer may be eventually given by organizational theory that identifies, analyzes, and conceptualizes the characteristics of successful organizations. Organisations are made up of people that come together in order to fulfill specific purposes. Organizations can be quite varied in the way they were set up: from business companies to NGOs, from partnerships to charities and government agencies. The purposes also can be extremely diverse: from selling products and services in order to make a profit and get rich to educating people and enhancing their spiritual wellfare, from medical support to teaching, from fighting pollution and injustice to campaigning...

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