Buad 309 Chapter 17

Front 1

Organization:

Back 1

is a system of consciously coordinated activities or forces of two or more persons. 4 common denominations: coordination of effort, a common goal, division of labor, and a hierarchy of authority.

Front 2

Unity of Command principle

Back 2

specifies that each employee should report to only one manager. Otherwise inefficiency would prevail because of conflicting orders and lack of personal accountability

Front 3

Organizational chart

Back 3

: is a graphic representation of formal authority and division of labor relationships. Boxes-and-lines illustration showing chain of formal authority and division of labor. 4 basic dimensions: hierarchy of authority, division of labor, spans of control, and line and staff positions.

Front 4

Span of control:

Back 4

refers to the number of people reporting directly to a given manager, from narrow to wide. Historically 5-6 considered best.

Front 5

Staff personnel:

Back 5

provide research, advice, and recommendations to line managers

Front 6

Line managers

Back 6

have authority to make organizational decisions

Front 7

Closed system

Back 7

is said to be self-sufficient entity, it is closed to the surrounding environment

Front 8

Open system:

Back 8

depends on constant interaction with the environment for survival.

Front 9

Learning organization

Back 9

is one that proactively creates, acquires, and transfers knowledge and that changes its behavior on the basis of new knowledge and insight.

Front 10

Characteristics of old-style organizations

Back 10

: Stable, info is scarce, local, large, functional, job oriented, individual oriented, command/control orientated, hierarchical, job requirement orientated

Front 11

Characteristics of new-style organization:

Back 11

dynamic, learning, info rich, global, small and large, product/customer oriented, skills oriented, team orientated, involvement orientated, involvement orientated, lateral/networked, customer orientated.

Front 12

Horizontal organizations

Back 12

close to the customer, work on teams, horizontal transfer not promotion, skill based pay not performance based, strategic and administrative process managers, new-product development process teams, order fulfillment process teams, account management process teams, flexibility, multi-skilled employees.

Front 13

Hourglass organization

Back 13

small executive group able to coordinate the efforts of numerous operating personnel who make goods or render services. No middle management

Front 14

Virtual organization

Back 14

network of several independent contractors or organizations hook together contractually and electronically. Could turn out bad if no person to person contact because there is not loyalty and commitment.

Front 15

Four ways to assess organizational effectiveness

Back 15

Goal accomplishment: the organization achieves its stated goals. Resource acquisition: the organization acquires the resources it needs. Internal processes: the organization functions smoothly with a minimum of internal strain. Strategic Constituencies satisfaction: the demands and expectations of key interests groups are at least minimally satisfied

Front 16

Strategic constituency

Back 16

is any group of individuals who have some stake in the organization- for example, resource providers, users of the organization’s products or service, producers of the organization’s output, groups whose cooperation is essential for the organization’s survival, or those whose lives are significantly affected by the organization. Stakeholders.

Front 17

Stakeholders audit

Back 17

systemic identification of all parties likely to be affected by the organization.

Front 18

The goal accomplishment approach is appropriate when inputs have a traceable effect on resuts or output. For example the amount of money the world wildlife fund receives through donations dictates the level of services provided.

Back 18

The resource acquisition approach is appropriate when input have a traceable effect on results or output. For example the amount of money the world wildlife fund receives through donations dictates the level of services provided.

Front 19

The internal process approach is appropriate when organizational performance is strongly influenced by specific process (cross-functional teamwork).

Back 19

The strategic constituencies approach is appropriate when powerful stakeholders can significantly benefit or harm the organization.

Front 20

Organizational decline

Back 20

a decrease in an organization’s resource base ( money, customers, talent, innovations).

Front 21

Early signs of decline:

Back 21

excess personnel, tolerance of incompetence, cumbersome administrative procedures, disproportionate staff power, replacement of substance with form, scarcity of clear goals and decision benchmarks, fear of embarrassment and conflict, los of effective communication, outdated organizational structure, increased scape-goating by leaders, low resistance to change, low morale, special interest groups are more vocal, and decreased innovation.

Front 22

New management=internal attributions tended to be made, old management= external causes tend to be made; therefore new people at the top appears to be a good insurance policy against decline.

Back 22

Do something about when everything is going right, Complacency (bloating) is the #1 threat because it breeds overconfidence and inattentiveness. Continuous improvement is first line in defense against decline.

Front 23

Contingency approach to organization design

Back 23

: organizations tend to be more effective when they are structured to fit the demands of the situation. Can be put into practice by first assessing the degree of environmental uncertainty.

Front 24

Differentiation:

Back 24

occurs through division of labor and technical specialization that causes people to think and act differently.

Front 25

Integration:

Back 25

occurs when specialist cooperate to achieve a common goal, can be achieve d through various combinations of the follow 6 mechanisms: a formal hierarchy, standardized policies, rules, and procedures, departmentalization, committees and cross-functional tams, human relations training, and individuals and groups acting as liaisons between specialist.

Front 26

Lawrence and Lorsch Study

Back 26

two structural forces simultaneously fragmented the organization and bind it together, the imbalance between these two forces (differentiation and integration) could hinder the organizational effectiveness. Concluded: as environmental complexity increased, successful organization exhibited high degrees of both differentiation and integration. Unsuccessful organizations in contrast tended to suffer from an imbalance of too much differentiation and not enough integration. The more differentiation and organization has the more difficult it is to achieve integration

Front 27

Mechanistic organizations

Back 27

are rigid bureaucratic with strict rules, narrowly defined tasks and top-down communication. Centralized decision making, successful when environment is stable and certain. Command and control (downward communication)

Front 28

Organic organizations

Back 28

are flexible networks of multitalented individuals who perform a variety of tasks. Decentralized decision making, successful when environment is unstable and uncertain, consultative or participative (two-way) communication

Front 29

Centralized decisions making:

Back 29

occurs when key decisions are made by top management. Tightly controlled,

Front 30

Decentralized decision making

Back 30

occurs when important decisions are made by middle and lower level managers. More adaptive to changing situations.

Front 31

The effect of Technology on Structure

Back 31

the more the technology requires interdependence between individuals or groups, the greater the need for integration (coordination). As technology moves from routine to nonroutine, subunits adopt less formalized and less centralized structures

Front 32

Complexity is the issue not size, too complex=not good. Trick is to create smallness within bigness.

Back 32

Strategic choice model based on behavior rather than rational economic principles: strategy influenced structure and structure influenced strategy.

Front 33

The relationship between strategic choice and organizational structure

Back 33

environmental constraints, organizational objectives, decision makers’ personal beliefs, attitudes, values, and ethics→ strategic decisions made by dominant coalition→ organizational strategies (target market, capital sources/uses, human resources, technology, and total quality management)→organizational structure→ organizational effectiveness ~ and corrective action to the beginning again.