Final Terms & People To Know

Front 1

start of lecture week 8:

Back 1

Work: Designing Jobs

TRANSFORMATION PROCESS --> WORK

Front 2

2 types of Organizational Design:

Back 2

1) Work: --> Jobs = Micro level
- how to divide tasks
- trade off b/w specialization & deskilling
2) Formal Organization --> structure = Macro level
- how to create groups
- conflict b/w specialization & integration

Front 3

2 approaches to Job Design:

Back 3

1) Scientific: "one best way": specialization, effieicncy
- Division of Labor
- Scientific Model
2) Job Characteristics: Variety, satisfaction, & empowerment
- Job characteristics Model

Front 4

Division of Labor (who)

Back 4

Adam Smith
(X)

Front 5

Division of Labor (what)

Back 5

pin Industry

Front 6

Scientific Method (who)

Back 6

Fredrick Taylor
(X)

Front 7

Scientific Method (what)

Back 7

"Taylorism"; timing coal workers --> job redesign activities

Front 8

Job Characteristics Model (who)

Back 8

Hackman & Oldham (Y)

Front 9

Job Characteristics Model (what)

Back 9

"Just Putting Out"

JOB CHARACTERISTICS
(1) skill Variety, (2) task Identity, (3) task Significance
(4) Autonomy (5) Feedback

"Need a VISA For a job"

PSYCHOLOGICAL STATES
meaningfulness, responsibility, knowledge

OUTCOMES
Motivation, Performance, Satisfaction

"My Red Kite Makes People Stare"

Front 10

Two Basic Philosophies of Management:

Back 10

Theory X - Smith, Taylor
Theory Y - Hackman & Oldham

Front 11

3 Job Redesign Activities

Back 11

(1) Job simplification
(2) Job enlargement
(3) Job enrichment

"SEE" the job redesign

Front 12

3 types of interdependence:

Back 12

(1) Pooled
(2) Sequential
(3) Reciprocal

Front 13

2 main focuses of Job Analysis

Back 13

(1) Tasks, Duties & Activities (TDA's)
- "job description"
(2) Knowledge, Skills, Abilities (KSA's)**
- " job specifications"

Front 14

start of lecture week 10:

Back 14

Formal Organization: Structure & Systems

TRANSFORMATION PROCESS --> FORMAL

Front 15

6 Elements of a Formal Organization Structure

Back 15

(1) Authority
(2) Hierarchy
(3) Centralization vs. Decentralization
(4) Span of Control
- # subordinates that report straight to a manager
(5) Line Manager v. Staff Manager
- main guy v. side kick
- UPENN professors v. their secretaries or TA's
(6) Tall v. Flat organizations
- hierarchy v. same level

Formally, speaking… "Any, Honorable, Congressman, Speaks, Less, Trashy"

Front 16

which Generic Business strategy drives which structure?

Back 16

Differentiation --> decentralized
Cost Leadership --> centralized

Front 17

What kind of environment drives which structure?

Back 17

Stable environment --> centralized
turbulent environment --> decentralized

Front 18

4 Main Types of Organizations (Structure)

Back 18

1) Simple
2) Functional
3) Divisional
- by products
- by geography
- by markets
4) Matrix
- functional + divisional

Front 19

2 strategies structures w/n Divisional Structure:

Back 19

1) Strategic business unit (SBU) structure
2) Holding company (conglomerate) structure

Front 20

Integration techniques of Structures
(in order of most simple to most complex)

Back 20

1) Direct Contact
2) Liaison Roles
3) Task Force
4) Cross-Functional
5) Integrated roles and departments
6) Matrix structures

Front 21

3 Types of Control Mechanisms (and each of their 3 subparts)

Back 21

1) Output
- financial measures of performance
- organizational goals
- operating budgets

2) Behavior Control
- Direct Supervision
- Management by objectives
- Rules and Standards

3) Organizational Culture / clan control
- Values
-Norms
-Socialization

To maintain control, we must "Output the Behavior of the Organizational culture / clan

FOO(D Manages the Rules), Values & Norms of Society

Front 22

3 Types of Reward Mechanisms:

Back 22

(1) Intrinsic Motivation
(2) Extrinsic Motivation
- Formal : new title or raise
- Informal : praise
(2) Sanctions
- Formal: pay gets docked; get fired
- Informal: embarrass

Front 23

4 Steps to Implementing Control & Rewards Systems

Back 23

(1) Establish standards, goals, or targets
(2) Measure actual performance
(3) Compare actual performance against chosen targets
(4) Evaluate results and reward or take corrective action

Front 24

4 word Summary:

Back 24

(1) Describe
- structure by type (divisional, functional etc.) and by characteristics (flat, centralized, span of control etc.)

(2) Choose
- structure to align with goals that underline your strategy

(3) Change
- structure as organization evolves

(4) Coordinate
- control & reward systems

Front 25

START Week 11 Lecture:

Back 25

People: Managing & Motivating a Diverse Workforce

Front 26

Individual Job Performance Equation

Back 26

(KSA's) * (Motivation and effort) * (organization factors = individual job performance

"Can they do it?" * "Will they do it" * "Will they receive support?"

Front 27

5 parts of Strategic Human Resource Management (RHRM)

Back 27

1) Recruiting & selecting
2) Training & development
3) Performance appraisal & feedback
4) Pay & benefits
5) Labor relations

Front 28

2 ways of achieving Person-Job Fit

Back 28

1) Recruitment & Selection
2) Training & Development

Front 29

6 Different Selection Tools:

Back 29

1) Finding People with KSA's
2) Physical Abilities
3) Practical Intelligence
4) Emotional Intelligence
5) Structured Interviews
6) Unstructured Interviews

Front 30

Selecting Tools: Finding People With KSA's

Back 30

- Biographical info
- Work samples & assessment centers
- Training & Development

Front 31

Selecting Tools: Physical Abilities

Back 31

- Strength: construction
- Flexibility: Sales
- Stamina: any job on your feet
- Speed: Typing

Front 32

Advantages & Disadvantages to Structured Interviews:

Back 32

o Advantages:
• Standardized questions to tap job dimensions
• Adequate validity
o Disadvantages:
• Can be costly to develop
• Potential for biases still looms

Front 33

Advantages & Disadvantages to Unstructured Interviews:

Back 33

o Advantages:
• Interviewers can give info about job
• Applicants are generally more comfortable
o Disadvantages:
• Low validity – don’t predict job performance
• Many biases → order effects, lack of consistency, stereotyping
o Rationale: Person-Organization fit (NOT Person-Job fit)

Front 34

4 Criteria to Choosing a Selection System:

Back 34

1) Validity and Reliability
2) Fairness
3) Applicability
4) Cost effectiveness

Front 35

Selection Ratio equation:

Back 35

# hired / # applied

Front 36

Adverse Impact!
(Legal Issue)

Back 36

o Defined in terms of the 4/5ths rules
• When the selection ratio for one group is less than 80% of the selection ratio for another group

Ex:
o Males = 20 hired / 100 applicants = .20
o Females = 5 hired / 50 applicants = .10
o .10 / .20 = .50
.5 < 4/5 (.80) – So, there is adverse impact (legal issue!!)

Front 37

3 common arguments for increasing workforce diversity

Back 37

1. Varied experiences of diverse employees can improve managerial decision-making
• Broader range of creative ideas
• Different approaches to problems/opportunities
• Knowledge about heterogeneous customers
2. Diversity can increase the retention of valued organizational members
3. Diversity is expected/required by other firms

Front 38

3 Bias in Performance Assessments:

Back 38

1) “Similar to Me” or “Homophily” bias:
• Managers rate subordinates like themselves higher
2) “Halo Effect”
• Managers rate subordinates with high-status characteristics higher
• Ex: “I went to Wharton”
3) “Salience effect”
• Managers rate subordinates more extremely when they do not fit the stereotypical image of a role
• Ex: Male nurse → very excellent or terrrrrrrrrrible
o Tend to evaluate them more extremely b/c they are not typical

Front 39

4 Theories of What Motivates People

Back 39

1) Goal-setting theory
2) Expectancy Theory
3) Theory of Learned Needs
4) Equity Theory

Motivation: "GET E.T."

Front 40

Expectancy Theory

Back 40

AKA: VIE Theory (Vroom)
Effort → Performance → Outcomes
• Expectancy → Instrumentality → Valence

Ex: "Toy, yoda"

Front 41

Theory of Learned Needs (who)

Back 41

McClelland

"I NEED McClelland eggs"

Front 42

Theory of learned Needs (what)

Back 42

Achievement
Affiliation
Power

"Learning AAP" (like a phone AAp)

Front 43

Equity Theory (who)

Back 43

Adams

"Had Etiquette"

Front 44

Equity Theory (what)

Back 44

• Focuses on people’s perceptions of fairness of rewards in proportion to inputs
• Social comparison is KEY
• Equity exists when a person perceives their own reward/input ratio to be equal to a referent’s ratio

Front 45

2 inequities of Equity Theory

Back 45

1) Underpayment inequity: more inputs for same rewards
2) Overpayment inequity: same inputs for more rewards

Front 46

How to restore equity for 2 inequities:

Back 46

Underpayment inequity:
o Reduce input level
o Seek a raise
Overpayment inequity:
o Change the referent person
o Readjust their ratio perception

Front 47

How to motivate those in high need of ACHIEVEMENT

Back 47

• Non-routine, challenging tasks with clear goals
• Prompt and frequent feedback
• Increasing responsibility

Front 48

How to motivate those in high need FOR POWER

Back 48

• Allowing them to control and plan their work
• Giving them responsibility for whole task
• Allowing them influence in decision making

Front 49

How to motivate those in high need for AFFILIATION

Back 49

• Including them in team and collaborative efforts
• Providing support and recognition
• Encouraging them to develop and mentor others

Front 50

4 additional points for motivating employees:

Back 50

o Set specific, challenging goals
o Be sure employees believe they can achieve those goals
o Reward goal achievement
• Pay, promotions, sense of achievement, social recognition, freedom, impact, affiliation, etc.
o Beware: “The Folly of Rewarding A While Hoping for B”

Front 51

START Lecture Week 12:

Back 51

Informal Organization: Culture!

Front 52

Transformation Process:

Back 52

Informal Organization

Front 53

Levels of Organizational Culture (Schein's Iceberg Model)

Back 53

- Artifacts / Behaviors
- Values (espoused & enacted)
- Assumptions

Front 54

Common Organizational Culture Values

Back 54

o Outcome orientation (achievement, results & action oriented)
o Team orientation (collaboration, team players)
o People Orientation (respect for individual, fairness, tolerance)
o Attention to Detail (analytical, precise, detail-oriented)
o Innovation (risk-taking, experimenting)
o Stability (security, predictability)
o Aggressiveness (competitive, aggressive)
o More: Management support, control, rewards, tolerance of conflict, communication patterns, etc.

Front 55

Advantages to a Strong Culture:

Back 55

• Distinctiveness
• Identification
• Beyond self-interest
• Affects satisfaction, commitment, and performance

Front 56

Disadvantages to a Strong Culture:

Back 56

• Diversity
• Change
• M&A

Front 57

2 Forces Driving Homogeneity:

Back 57

• (1) Attraction, Selection Attrition Process (ASA)
• (2) Socialization process

Front 58

(1)*Schneider’s ASA Model*

Back 58

o Attraction: people are attracted to organizations that they fit (in terms of personality, values, beliefs, etc.)
o Selection: Organizations select individuals who hold the attributes they desire
o Attrition: Any errors in the attraction-selection phases will be corrected by attrition (firing & turnover)

Front 59

(2)*Socialization Processes*

Back 59

o Formal and informal ways of communicating the norms, values, and belies of an organization
• FORMAL: training programs
• INFORMAL: after-work gatherings, social events, etc.

Drive towards homogeneity
• Over time, powerful socialization results in organizational homogeneity

Front 60

3 STAGES to the Socialization Process

Back 60

(1) Pre-arrival:
• Period of learning that occurs before a new employee joins an organization
(2) Encounter:
• New employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge
(3) Role Management / Metamorphosis:
• New employee changes and adjusts to the work, work group, and organization

Front 61

2 ways an organization can ensure person-organization FIT

Back 61

• (1) Recruitment & selection
• (2) Formal & informal socialization

Front 62

Difference b/w:
--> person-organization fit
and
--> person-job fit

Back 62

For person-organization fit, the focus is on values, beliefs, and attitudes
• Iceberg Model

For person-job fit, the focus is on knowledge, skills, and abilities
• KSA’s

Front 63

Functions & Dysfunctions of Person-Organization Fit
(Pros and Cons)

Back 63

FUNCTIONS
• Conveys a sense of identity
• Facilitates commitment
• Enhances stability
• Serves as a control mechanism

DYSFUNCTIONS
• Barrier to change
Ex: too much of the same—less creativeness
• Barrier to diversity

Front 64

Culture as a CONTROL System (3 Types of Controls: same as Control for Designing Jobs)

Back 64

1) Output control
2) Behavior Control
3) Organizational Culture/ clan control

Front 65

2 important social Psych experiments that demonstrate POWER of action

(the dark side to strong cultures)

Back 65

(1) Obedience to authority (The Milgram Experiment)
(2) Adherence to roles (The Zimbardo Experiment)

Front 66

Obedience Theory (who)

Back 66

Milgram

Front 67

Obedience Theory (what)

Back 67

Obedience --> why do people do different things? Teacher and student (who was hired), told it was a learning experiment using word games, if the learner gets it wrong the teacher needs to pull a lever to administer a shock

RESULT:shows that when people are subject to authority, they do what they are told to do (Teachers actually administered the large quanitity of electric shock)

Front 68

Adherence to roles Theory (who)

Back 68

Zimbardo

Front 69

Adherence to roles Theory (what)

Back 69

• Stanford Prison Experiment à Do people act differently depending on what role they are given à college students give role as prisoners or guards, supposed to run for 2 weeks
• Found that the people feel into their roles so much, they began acting like those peoples (guards were mean to prisoners, prisoners were very mental and began to stop eating; NOTE both groups were allowed to leave at any time) Demonstrates how strong situations can be

Front 70

Ways to change a culture (real challenge)

Back 70

o Articulate a new vision & provide new role models
o Fill key positions with individuals who endorse new values and define goals & means to achieve them
o Modify performance evaluations to include behaviors consistent with new values
o Systematically reward behaviors consistent with new values and discourage adherence to the old system
o Destroy myths, artifacts & symbols supporting the old system – replace with new ones
o Modify structural arrangements to support cultural shift

Front 71

START LECTURE WEEK 13

Back 71

Networks and organizations

Front 72

Human Capital

Back 72

your knowledge, skills, abilities and experience

Front 73

Social Capital

Back 73

The resources you can access through your network of contacts

(how you use human capital)

Front 74

Types of Networks

Back 74

friends
communication
advice
information/knowledge
Supplier networks
• Between organizations
Alliance networks
• Between organizations
Trade networks
• Between countries even (international trade)
Etc.

Front 75

your PERSONAL NETWORK

Back 75

network is the set of relationships critical to your ability to get things done, get ahead, develop professionally and enjoy yourself

Front 76

an INTRA-ORGANIZATIONAL NETWORK

Back 76

network is a set of relationships among the employees in an organization

Front 77

an INTER-ORGANIZATIONAL NETWORK

Back 77

a set of relationships among firms

Front 78

Strong ties versus Weak Ties

(and application to getting a job)

Back 78

Strong ties = close contacts; highly motivated to help
• 1st order friends
• May speak more highly of you
Weak ties = distant contacts; have access to more diverse information, leads, etc.
• More beneficial (2nd order friends)
• Most likely more connected to different sources of info that could be helpful for you.

Front 79

Two components of a social network structure (1)

Back 79

nods & arcs
(dots versus connecting arrows)

Front 80

Two actors with the same # of contacts may have access to very different network resources:

(2 different types of relationships)

Back 80

1) Closure relationships
• Dense → more reliable contacts, though less new info coming in (most people have dense relationships)
2) Bridging relationships
• Sparse → though they are weaker ties, you are plugged into more different worlds

Front 81

Basic assumptions about the people in your network and the pattern of relationships between them:

Back 81

(1) The set of contacts in a network, and
(2) The pattern of relationships between them determine:
• Access to information, resources, referrals, opportunities, support
• Ability to create and mobilize linkages among relevant players

**Consider network RANGE and DENSITY

Front 82

Characteristic 1: RANGE of a network
(basic definition)

Back 82

Benefits from a network are a function of the number of different sectors you can reach and connect:
• Within and outside professional specialty
• Private, public, non-profit sectors
• Community groups, clubs
• Industry contacts, professional associations
• Different functions within your organization

Atom like structure with different colored dots on the ends

Front 83

Characteristic 2: DENSITY of a network
(2 main types)

Back 83

High density

Low density

Front 84

High density networks:

Back 84

• Redundant contacts provide support, identity, trust

very enclosed structure

Front 85

Low density networks:
(2 subgroups)

Back 85

-Uzzi & Dunlap's "superconnectors"

-Milgram's Six Degrees of Separation

(low density = chill --> think of as bands: "the super connectors" and "6 degrees of separation"

Front 86

"Superconnectors" (who and what)

Back 86

Uzzi & Dunlap
o Have non-redundant contacts (more efficient)
o Can access unique resources and information (span “structural holes”) [if B did not exist, there would be holes between the different clusters]
• Lots of power in the central connector (B)!
• Can use for good or evil (keeping people together or apart

**Stresses the importance of the person who is at the center of a low density and far branching network --> that person, if missing, creates a structural hole

Front 87

"Six degrees of separation" (who and what)

Back 87

Six degrees of separation
o Milgram’s small world experiment (sending the package --> think of as a "teleGRAM")
o Kevin Bacon (never more than 3 links away from people) Ex: Ronald Regan is only 2 links away!

Front 88

2 main parts of a social network (2)

Back 88

Clusters:
engender trust and control (expertise, constraint)

Bridges:
engender unique combinations of network resources (opportunity)

Front 89

"Small World"

Back 89

Refers to the mix of clusters and bridges that balances density and range

What most of "our" networks look like (lots of different grape like bunches that are all connected somehow)

Front 90

Stanley Milgram study:

Back 90

Hint: teleGRAM

Milgram’s study of letter forwarding between acquaintances in the 1960s --> sent 160 random people packages (lived in Omaha Nebraska ß most socially different place from Boston; at least he thought so). Objective was to get those people to mail the package to this random stockbroker in Boston
• A lot of letters never made it (flaw in the experiment)
• The letters that did make it, took on average 5.7 links to reach the man --> AKA 6 degrees of separation idea
• A particular tailor was the person most likely to directly forward the package to this stockbroker

Front 91

What "shapes" PERSONAL networks?

Back 91

"its all in the HIPS" (shaking your hips for someone is personal)
o Homophily/similarity
o Institutional environments
o Proximity
o Shared activities & interests

Front 92

Intra-organizational networks (picture wise)

Back 92

The purple numbered dot --> had to pick which dot you'd want to be

one was isolated, one got a lot of attention etc.

Front 93

What "shapes" INTRA-ORGANIZATIONAL networks?
(4 things)

Back 93

1) Formal Structures
2) Informal culture [norms]
3) Work Design
4) People

"Instra-sting enough: Formal People Work Informally'

Front 94

Formal Structures tend to evolve into what? (thing)

Back 94

SILOS
o Regardless of the formal structure (functional, divisional, matrix, etc) business units also have a tendency to become “silos” with little communication across them
o Reward systems, control systems, and career systems contribute to the silo effect
o Collaboration within silos is usually good; collaboration across silos is often poor
o Silo: Lots of communication within the organization but not across them

Front 95

Silos make it difficult to…
(3 main things)

Back 95

1) Provide CUSTOMER SOLUTIONS:
• When customers are shared across two or more business units, lack of collaboration across silos may make it difficult (or altogether impossible) to provide adequate solutions to customer problems Drive

2) Drive EFFICIENCIES - through transfer of best practices
• Organizations don’t know what they know (Xerox ex.)
• Victims of the “not invented here” syndrome (Resistance to adopt new ideas)

3) Promote INNOVATION, as this may require flow of information, ideas and knowledge across silos

Front 96

Xerox example: (application to Silos)

Back 96

Silos hurt knowledge sharing and innovation with Xerox à Xerox was unable to capitalize on the innovations developed by the PARC, which were initially commercialized by other firms. The most visible example was the GUI, adopted by Apple in its path-breaking Macintosh computer in 1984 (AKA: Steve jobs was able to capitalized on Xerox’s PARCS while Xerox wasn’t due to the silos effect)

Front 97

Important findings: Intra-organizational networks

Back 97

o Individuals whose networks bridge “structural holes” tend to be more innovative and get promoted faster… but individuals whose networks are denser enjoy more long-term cooperation
[AKA more bridges = more innovative; → more dense = more LT cooperation]

Groups are most effective when they balance internal density (strong cluster) and external range (many bridges)
[AKA NEED BOTH]

Organizations need clusters and bridges to share knowledge, coordinate, and innovate effectively
[AKA DEPEND ON THEIR BRIDGES]

Front 98

Methods of Rewiring Organizational Networks:

Back 98

o Cross-group teams/seminars/ social events
o Job rotation
o Staff meetings
o Mentoring programs
o Information technology
o Restructuring
o External conferences etc.

Front 99

Different types of INTER-organizational Networks:

Back 99

o Alliances and joint ventures
o Director interlocks (i.e. board memberships)
o Mobility of managers and employees
• Each of these types of network ties has been shown to lead to the spread of specific innovations and more general knowledge

Front 100

Dark Side of Social Capital

Back 100

Bernie Madoff Ex:

Front 101

Lecture Week 13 Extra Reading: Informal Network by David Krackhardt and Jeffrey Hanson

Back 101

3 types of relationship networks:
1) advice
2) trust
3) communication

3 steps of informal network analysis:
1) Network survey using employee questionnaires
2) Cross-checking answers
3) Processing information

5 common configurations of network holes & problems:
1) imploded relationships
2) irregular communication patterns
3) Fragile structures
4) "Bow Ties"
5) Testing the solution

Front 102

START LECTURE WEEK 14:

Back 102

Review & Integration: Congruence, Fit, and Organizational Change

Front 103

organization

Back 103

a set of people coordinating their activity in pursuit of common goals

Front 104

Management

Back 104

the practice of formulating and implementing strategies in an organization

Front 105

Congruence Model (who and 4 main components)

Back 105

Nadler & Tushman
1) Input
2) Strategy
3) Transformation Process
4) Output

Front 106

3 parts of Input

Back 106

1) Environment
2) Resources
3) History

Front 107

2 types of strategies and the questions they address:

Back 107

What businesses should we be in (corporate level)? And how should we compete in these businesses (business level)?

Front 108

4 parts of Transformation Process and what it is

Back 108

Tools the organization uses to convert inputs into outputs.
• Informal
• Formal
• People
• Work

Front 109

3 parts of Output and what question it answers

Back 109

are we performing effectively? Strategy is all about your output goals
• Organization
• Group
• Individual

Front 110

Class examples of Inputs:

Back 110

“Average CEO”
o Airlines, Pharmaceuticals, Personal Computers
o CASE: The Movie Exhibition Industry
• Inputs create a lot of RESTRAINTS managers find hard to respond to

Front 111

Class example of Business Strategy (and summary):

Back 111

o Pharmaceuticals
• Proprietary Manufacturers, Generic Manufacturers, Biotechnology
o Different GENERIC strategies are possible!
• Ex: different kind of pharmaceutical shops (DIFFERENTIATION [proprietary], COST LEADERSHIP [generic brand], FOCUS [bio])
o Need to make sure your value chain reflects your strategy! (Primary activities etc.)
o Managers aren’t total free in developing whatever strategy they want à their decision depends on the lifecycle stage the market is in
• Early stages = differentiation
• Middle stages = cost leadership
o CASE: Nintendo Wii

Front 112

Class example of corporate strategy (and summary)

Back 112

DIVERSIFICATION --> choice of which business or set of businesses to be in
• Related
Backwards / forwards vertical
• Unrelated
o Ex: Video--> the godfather --> whether or not to diversify from gambling to narcotics business
o What is attractive about this diversification strategy?
o Different MODES --> M&A, alliances and joint ventures, internal development
o Ex: new big merger = Comcast and Tiwana?
o Ex: Lego entering new businesses and having trouble with the synergies
o Related and unrelated diversification!
o CASE: Lego

Front 113

Outputs:

Back 113

GOALS, STAKEHOLDERS & ETHICS
o Ex: Hooters → Expected if she worked hard she’d get rewarded = motivation
• Unethical means
o Hard vs. soft goals etc.
o Setting a goal that is hard but not too hard
• à Lathem’s theory of STRETCH goals
o How do you set / measure goals?
• Different kinds of measures (including based on stakeholders)
o THIS WAS ALL PRIOR TO MIDTERM EXAM*****
o CASE = Starbucks

Front 114

Transformation Process (2nd half of semester)
[4 main parts]

Back 114

1) Work: Job Analysis & Job Design
2) Formal Organization
3) People: Selecting & Motivating People
4) Informal

Front 115

1) Work
a) Class example
b) 2 Main perspectives
c) important Model & 4 components

Back 115

a) Ex: The leafleting business
• All the different ways you can arrange the tasks
• Interdependence
• 1) Pooled [better independent] 2) reciprocal [teamwork] 3) sequential [handing off tasks to one another]
• What are the tasks we want people to perform? What are their knowledge skills?

b.) Main perspectives
• 1.) Efficiency; specialized; Adam Smith and Fredrick Taylor
• 2.) Job enrichment; you’ll demotivate, deskill, and make your workers leave with too much efficiency
o Ex: Spongebob

c.) Analyzing Job enrichment Model (Job characteristics model)
• 1.) Skill variety 2.) Autonomy 3) task identity 4)

Front 116

2) Formal Organization:
a) designs
b) divisional structures
c) functional structures
d) control systems
CASE

Back 116

Designing an organization
• Tall versus flat
o Amazon = tall
o Facebook = flat
• Centralized vs. decentralized
o Apple = centralized
o Facebook = decentralized
• Line versus staff functions
Divisional structures = Products, geographies, markets
Functional structures = within divisional structures
Centralized more popular in large markets??
Control systems
• Output controls, behavioral controls, cultural
Reward systems
• Intrinsically motivated, extrinsically,
CASE: Automation Consulting Services

Front 117

3) People: Selecting & Motivating People
a) different kinds of tests
b) Diversity
c) Halo effect
d) biases
e) Theories
f) reward systems

Back 117

-Tests companies use to bring in people: physical abilities, emotional competence, personality test etc. etc.
• Need for achievement, power, affiliation
-Interviews as a tool for hiring people
• Structured (how people fit for a job: person-job fit)
• Unstructured (how people fit for a culture: person-organization fit)
-Diversity
Surface level characteristics, versus deeper level characteristics
-Halo effect
-Salience bias à Ex: male nurse (behaves great:
Awesome nurse! Behaves poorly: terrible nurse!!) Judgment less extreme for woman nurses
-Expectancy theory
-Equity theory à ratio of rewards to inputs as compared to other people
-Need based theory
-Goal setting theory
-How do you reward people? à CASE: Raise exercise

Front 118

4) Informal
a) Corporate Culture
b) Informal Networks

Back 118

Corporate Culture
• Schein’s Iceberg Model (IDEO and Pixar)
o à Artifacts, values, assumptions à model helps diagnose culture
o How do you build a culture? How do you sustain them over time?
• ASA model and socialization over time
o Advantages/disadvantages of strong control
• Advantage: cultural control à people tend to do things you would want them to do (ex: GE)
• Disadvantage: problem of being difficult to change (like in mergers)
• Ex: GE and David Letterman Interview → kicked him out of the building

Informal Networks
• Bridges versus clusters
• Xerox example

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Key Challenges for Managers:

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1) Formulating strategy
2) Implementing strategy
3) Managing Congruence

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1) formulating strategy:

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• Monitoring the environment
• Deciding which businesses to compete in
• Deciding how to compete in those businesses
• Setting goals and metrics, satisfying stakeholders

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2) implementing strategy

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• Designing jobs
• Establishing formal structures and systems
• Selecting, training, and motivating employees
• Building a good organizational culture
• Understanding and utilizing informal networks

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3) Managing Congruence

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• Organizational change, how can we change and be congruent skill?

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The Congruence Hypothesis: (Nadler and Tushman)

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o Congruence = the degree to which the needs, demands, goals, objectives, and/or structures of one component are consistent with those of the other
o The greater the congruence (fit) between components, the more effective the organization will be.
o Conversely, performance gaps may be attributable to a lack of congruence (misfit).

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Diagnosing Fits and Misfits

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Fits or misfits can exist:
• Between strategy and environment (“external fit”)
• Between strategy and different elements of the transformation process (“internal fit”)

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Rethinking Congruence: first try
(C.R.)

"CRAAP"

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Organizations evolve through cycles of “convergence” and “reorientation”
• Convergence: Focusing on achieving internal fit leads to periods of stability
• Reorientation: Simultaneous change in strategy, formal, work, people and informal components of the organization
• Ex: Intel, Then and Now
• Well-known reorientation efforts:
o Intel, IBM, Pepsi, Netflix, GE, GM
Triggers for reorientation:
• Changing environments (external misfit)
• Performance problems

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Rethinking Congruence: 2nd try
(A.AP)

"CRAAP"

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AMBIDEXTROUS organizations manage incremental and radical change simultaneously:
• Consistency, incremental change, and continuous improvements generate revenues from which senior management can fund new radical innovations and make strategic bets.
• Multiple failures, experiments, and wild variants generate learning; they also create “luck” and future revenues for innovation and strategic bets

Since each of these approaches requires different rewards/cultures/people, ambidextrous leaders need to sustain both types of APPROACHES within their organizations
• Separate units
• Tight linkages at the senior level
o Need to learn how to explore and exploit at the same time
• Exploit = incremental change
• Explore = Learn
o Ex: USA today: pre-ambidexterity → “Network Strategy”

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Summary on Congruence, Fit, and ORganizational Change:

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o Congruence is critical for organizational success
• Internal fit
• External fit
o But organizations have to keep changing and evolving
o Two main approaches to balancing the need for congruence and the need for change:
• Reorientation
• Ambidexterity
• = DOUBLE EDGED SWORD

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Doubled Edged Sword

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Reorientation
Ambidexterity!

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Week 14 extra reading: The Ambidextrous Organization (Charles O Reilly and Michael Tushman)

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Exploiting and Exploring!!!

--> USA today and CIBA VISION (contacts)