Organizations and Organizational Effectiveness Explain why organizations exist and the purposes they serve. Describe the relationship between organizational theory and organizational design and change and differentiate between organizational structure and culture. Understand how managers can utilize the principles of organizational theory to design and change their organizations to increase organizational effectiveness. Identify the three principal ways in which managers assess and measure organizational effectiveness. Appreciate the way in which several contingency factors influence the design of organizations. Reference: P. M. Blau, Exchange and Power in Social Life (New York: Wiley, 1964); P. M. Blau and W. R. Scott, Formal Organizations (San Francisco: Chandler, 1962). C. I. Barnard, The Functions of the Executive (Cambridge, MA: Harvard University Press, 1948); A. Etzioni, Modern Organizations (Englewood Cliffs, NJ: Prentice Hall, 1964)