Organizational Theory, Design, and Change Gareth R. Jones (0 Pearson Education, Inc. Publishing as Prentice HallOrganization: a tool used by people to coordinate their actions to obtain something they desire or value Organizations provide goods and services Organizations employ people Organizations bring together people and resources to produce products and services Basically, organizations exist to create value Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 12How Does an Organization Create Value? Value creation takes place at three stages: input, conversion, and output Each stage is affected by the environment in which the organization operates Environment — the set of forces and conditions that operate beyond an organization's boundaries but affect its ability to acquire and use resources to create value ‘Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall