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131 Cards in this Set

  • Front
  • Back
define the formal organization aspect of the NT model
explicit, codified aspects of the organization;

structure, formal processes, and reward systems
what are the characteristics used to describe structure
hierarchy of authority
centralization vs. decentralization
span of control
line manager
staff manager
what is a line manager?
in direct chain of command; responsible for direct production of goods and services; primary functions in value chain
what is a staff manager?
gives advice to line managers; functional-area specialists; support functions of value chain
what are the control types?
tall organization, flat organization
describe a tall organization
7 or more levels, narrow spans of control
what are the disadvantages of a tall organization
communication problems, inefficiency
define a flat organization
fewer levels - 3, wide spans of control
what are the disadvantages of a flat organization
quick communication but overworked managers
what should structure be chosen based upon?
choose structure based on strategy
what type of structure is ideal for a differentiation strategy based firm?
Decentralized - requires coordination/adaptation over efficiency
increased vertical integration or diversification requires more flexible structure
what type of structure is ideal for a firm with an overhead cost based strategy
Divisional, Centralized, efficiency over coordination over adaptation, stable environment
what are the four types of structures?
simple, functional, divisional, matrix
describe simple structures
highly informal, direct supervision, little specialization, informal reward system

ex. start ups, dotcoms
describe functional structures
decentralized? - each manager is in charge of a specific function
what are the advantages and disadvantages of a functional structure?
advantages: control, efficient use of managerial talent

disadvantages: short-term thinking, difficult to establish uniform performance standards, communication issues
describe divisional structures
organized around products, projects, and markets; division includes own functional specialists

ex. most big companies
what are the advantages and disadvantages of a divisional structure?
separation of strategic and operating controls, quick response to environmental changes, development of managerial talent
What two types of divisional structures?
Strategic Business Unit & Holding Company Structure (Conglomerate)
Describe a Strategic Business Unit
divisions with similar products, markets, technologies are grouped together
Describe a Holding Company Structure
businesses in company's portfolio have little in common (unrelated functions)
Describe a Matrix structure
combines functional & divisional
individuals are responsible to two managers
What are the advantages & disadvantages of a matrix structure?
advantages: facilitates use of specialization, broader range of experience and responsibility for employees

disadvantages: intense power struggles, complicated working relationships, inefficient decisions
List & describe the 6 methods to resolve tension between specialization & integration
direct connect, liaison roles, task force, cross-functional team, integrating role, move to matrix structure
what are the organizational control systems?
output control: financial measures, organization goals, operating budgets

behavior control: direct supervision, management by objectives, rules & standard operating procedures

organizational culture/clan control:
values, norms, socialization
describe organizational design:
managerial chocies that formalize the patterns of interactions between an organization's people & tasks
what is structure at the macro level concerned with?
how to create groups
how to manage the conflict between specialization & integration
what is job design at the micro level concerned with
how to divide tasks into jobs
how to manage the tradeoff between specialization and deskilling
describe job analysis
systematic process of collecting and interpreting information on work-related activities
what is a job description
tasks, duties, activities
what is a job specification
ksa's - knowledge, skills, abilities
where do you go to gather information about a job
incumbents, supervisors, job analysts, descriptions & training materials
What are the three job design activities
job simplification, job enlargement, job enrichment
what is theory x?
efficiency, specialization

job simplification
what is theory y?
variety, satisfaction, empowerment

job enlargement, job enrichment
what are the five main points of the hackman/oldham job characteristics model
skill variety - # of tasks
task identity - see product from start to finish
task significance - importance to organization or society
autonomy - how much control you have over your job
feedback - being able to know how you're doing (customer, manager, job)
what are the three types of interdependence and give an example of each
pooled - independent branches
ex. bank

sequential - additive process, assembly line
ex. ford motor company

reciprocal - info needs to flow through everybody
ex. mgmt 101 team, pfizer pharmaceuticals
How do you ensure a person-job fit?
Recruitment & selection, training & development
what are the different aspects of recruitment & selection
biographical information, work samples & assessment centers, tests & interviews (unstructured, structured)
what are the advantages/disadvantages of an unstructured interview
advantages: interviewers can give information about the job, applicants more comfortable

disadvantages: low validity, many biases

checks for person-organization fit
what are the advantages/disadvantages of a structured interview?
advantages: developed from job analysis, standardized questions, adequate validity

disadvantages: can be costly, still have biases
what does an organization hope to achieve through training & development
give employees additional ksa's, enhance value of employee contribution
what are the two types of differences between people
surface & deep (physical characteristics vs. personality)
what are the 3 arguments for diversity?
1) varied experiences of diverse employees can improve managerial decision making
2) can increase the retention of valued organizational members
3) expected/required by other firms
what does research show on the topic of diversity?
no simple relationship between diversity & performance or diversity & conflict

how to measure diversity?
what are three types of biases in performance ratings?
1) managers rate subordinates like them higher (homophilia)

2) managers rate subordinates with high-status characteristics higher (harvard vs. san jose state)

3) if the person does not fit the stereotypical role, the person may be evaluated more extremely (higher or lower)
what are the four motivation theories?
1) V.I.E. (Expectancy)
2) McClelland's theory of needs
3) Equity theory
4) Goal Setting Theory
Explain VIE
1) Valence - how attractive is the reward?
2) Instrumentality - do I have reasonable probability of winning it?
3) Expectancy - If I work harder, will that result in higher performance?
explain McClelland's theory of needs
three types of people that are motivated by three different main characteristics; three types can be motivated differently
describe the achievement people in mcclelland's theory of needs
desire to excel, like situations of moderate risk, prefer to work alone or with other high achievers, desire challenge and feedback
what steps can be taken to motivate achievement people?
assign non-routine, challenging tasks with clearer goals

prompt and frequent feedback

increasing responsibility
describe power people
desire to influence and control others, to persuade and prevail, concerned with winning arguments
how can you motivate power people?
allow them to control and plan their work, give them responsibility for whole task, allow them influence in decision making
describe affiliation people
desire to be liked, desire a sense of belonging and certainty, concerned with interpersonal relationships, enjoy teamwork
how can affilitation people be motivated?
include them in team and collaborative efforts, provide support & recognition, encourage them to develop & mentor others
what are the three outcomes of equity theory?
equity, underpayment inequity, overpayment inequity
how to motivate employees
set specific, challenging goals, ensure employees believe they can achieve those goals, reward goal achievement (pay, promotions, sense of achievement, social recognition, freedom, impact, affiliation)
what is the folly in rewarding?
the folly of rewarding A while hoping for B

ex. FBI wants to prevent terrorism but rewards capture of past terrorists
what is shrm
strategic human resources management - recruiting & selecting, training & development, goal setting & performance appraisal, pay and benefit
What is the definition of Informal Organization
pattern of basic assumptions, values, beliefs, and behaviors
what are the three levels of the iceberg model?
observed behavior - infer deeper assumptions based on abserved behavior

values/beliefs - if we can get here, more integrative

basic assumptions - unconscious, taken for granted beliefs
what are the four elements of a strong culture?
charismatic leaders and heroes
ritual and ceremony
clear expectations about the direction of the organization
widely shared philosophy of norms and values
what are the results of a strong culture
1) how people feel and act in the organization

2) affects who is attracted to organization, who the organization takes, who the organization can change

3) external adaptation?
4) competitive advantage?
what are the two forces that drive toward a homogeneous culture?
bottom up forces - attraction, selection, attrition

top down forces - formal: training programs, informal: after work gatherings
what are the origins of culture
founder kicks off ASA cycle by placing individuals in important places

early individuals reflect the values of the founder
what are the three stages of the socialization process?
1) prearrival - strong culture attract
2) encounter - decide how the person feels
3) metamorphosis - have sense of culture & this is who i am; am i going to change to fit?
what are two examples of negative socialization?
obedience to authority - milgram, press buzzer even though screaming is heard

abuse of power - zimbardo, stanford prison guards & cell mates
what is the difference between person-organization fit and a person-job fit?
person organization fit focuses on values beliefs attitudes

person job fit is ksa's and tasks duties and activities
what are the four types of organizational culture?
baseball team - rapidly changing
club - loyal, committed people
academy - hire experts who are willing to make a slow, steady climb up a ladder
fortress - focused on surviving and reversing sagging fortunes
what is the benefit of having a group or team?
speed, productivity, lower costs, cohesiveness
what are the main benefits of a team
improved performance & improved worker satisfaction & morale
define the characteristics of a group
group of people with

individual performance
not entirely dependent upon others
scored individually

ex. women's gymnastics
define the characteristics of a team
group AND

complementary skills
committed to a common purpose
shared performance goals
mutually accountable
what are 7 examples of teams
cross functional
problem solving
quality circle
self managed
top management
what are the different kinds of inputs in the IPO model?
individual, team, organization
what are the advantages and disadvantages of a large team input in the IPO model?
large team - 10 or more members, advantages: more resources and division of labor

disadvantages: low cohesion & risk of social loafing
what are the advantages and disadvantages of a small team input in the IPO model?
small team - 2-9 members

advantages: better interactions & morale

disadvantages: fewer resources & unequal work
what are the individual inputs in the ipo model?
demographics, personality, motivators, experience
explain organizational level inputs in the IPO model
leadership & supervision - management communicates with team & individuals

reward systems - outcomes & rewards assigned at team level

between team communication - do teams have access to key information

teamwork training & development - do members know how to work on a team
what are the two main aspects of team processes in the IPO model?
conflicts & stages
what amount of conflict is good for a team?
too little - leads to group think and ignorance of outside ideas

too much - everything grinds to a halt, not productive
what are the differences between task conflict & relationship conflict?
task conflict - argue over content of tasks being performed including differences in viewpoints, opinions, and ideas - CONSTRUCTIVE

relationship conflict - interpersonal incompatibilities among team members, which includes tension, animosity and annoyance among group members - DESTRUCTIVE
what are the five team stages?
forming - getting oriented
storming - fighting over roles
norming - resolving conflicts
performing - doing jobs
adjouring - disbanding, transitioning
explain the outputs under the IPO model
individual - member satisfaction

team performance - must be higher than individual performance

team viability - did a good job but burnt out and never want to do it again, football team that does well one year, will it be able to do it next year?
define organization
a set of people coordinating their activity in pursuit of goals
define management
the practice of planning, structuring, leading, and controlling the activities of an organization
what is the basis of the N/T model?
congruence = degree to which needs, demands, goals, objective and/or structures of one component are consistent with another

greater the congruence, more effective organization
what is a performance gap?
the organization is not achieving it's desired outcome (loss of market share/customers, shrinking margins or profits, lack of new products, slow to market with new products, costs too high)
what causes performance gaps?
misfits, either internal or external

internal misfit - among elements of the transformation process and the strategy

external misfit - between strategy and environment
how do you address performance gaps?
1) find the root causes: has the environment changed? is the strategy correct?

2) diagnose congruence: strategy --> work: are the critical tasks being accomplished; work --> people: do people have the knowledge, skills and motivation to accomplish the task; work --> formal organization: is the task helped or hindered by the organizational structure and formal control and reward systems; Work --> informal organization: to what extent do the norms and values help tasks get accomplished?
what are the two stages of evolution for organization?
convergence, reorientation
what is the convergence stage of an organization
focusing on achieving internal fit leads to periods of stability

disadvantage: stuff is changing in the world while the company is focusing on its internal workings
what is the reorientation stage of an organization
simultaneous change in strategy, formal, task, people and informal components of the organization

disadvantage: costs, could head in wrong direction, lots of resistance from employees
what triggers a reorientation?
1) changing environment
2) performance problems
what are the three types of inputs?
environment, resources, history
what are the five aspects of the general environment?
demographics, cultural, political/legal, technological, economic, global
give 5 examples of changes in demographics
Aging population, Rising affluence, Changes in ethnic composition, Geographic distribution of population, Greater disparities in income levels
give 5 examples of changes in culture in the environment
More women in the workforce, Increase in temporary workers, Greater concern for fitness, Greater concern for environment, Postponement of family formation
give 8 examples of changes in technology in the general environment
Genetic engineering, Emergence of Internet technology, Computer-aided design/manufacturing systems (CAD/CAM), Research in synthetic and exotic materials, Pollution/global warming, Miniaturization of computing technologies, Wireless technology, nanotech
give 5 examples of economic changes in the environment
interest rates, Unemployment, Consumer Price index, Trends in GDP, Changes in stock market valuations
give 5 examples of global environmental changes
(a) Increasing global trade, Currency exchange rates, Emergence of the Indian and Chinese economies, Trade agreements among regional blocs (NAFTA, EU, ASEAN), creation of WTO (decreasing tariffs/free trade)
what are porter's five forces?
1) threat of new entrants
2) bargaining power of buyers
3) bargaining power of suppliers
4) the threat of substitute product & services
5) the intensity of rivalry among competitors in an industry
what is swot and what does it correspond to?
strengths, weaknesses (resources & history)

opportunities, threats (environments)
what are three different levels of goals?
organization-level goals: resource utilization, profit, sales, flexibility/adaptability, growth

group-level goals: contribution to organizational-level objectives, cohesion, integration

individual-level goals: satisfaction, productivity, ethical behavior, quality of work life
what are seashore's dimensions of criteria?
ends vs. means - winning football game v. allowing four big plays
time reference - raise percentages from same time last year
long vs. short - do now vs. do in the long haul
hard vs. soft - quantitative vs. qualitative
values (not all things best when maximized--curvilinear. ie maintenance costs)
hierarchy of criteria?
ultimate: long run, ultimate goal of organization
middle: output/results goals
bottom: short term (almost daily)
what are the key things to keep in mind for output goals?
1) include stretch and realistic goals
2) short term goals to meet division/group needs
3) SMART goals
4) participatory goal setting
what are three pitfalls of financial measures?
1) performance measures decisions already made, not future oriented
2) future orientation needs goals for efficiency, quality, innovation, and responsiveness
3) challenging financial goals without behavior goals may create inappropriate behaviors
what are the four levels of social responsibility that a firm can exhibit?
obstructionist, defensive, accommodative, proactive
what are the four types of ethical decision making?
utilitarianism - based on what is good for the greatest number of people

practical - manager should have no hesitation publicizing decision

moral rights approach - humans have rights that need to be respected

just approach - treating all people fairly and consistently
what is business level strategy concerned with?
which products/services will we provide, to which markets, using what technologies?

How should we compete in a given industry?
what are five key points of an overall cost leadership strategy
integrated approach
1) aggressive construction of efficient-scale factories
2) vigorous pursuit of cost reductions from experience
3) Tight cost and overhead control
4) Avoidance of marginal customer accounts
5) Cost minimization in all activities in the firm’s value chain, such as R&D, service, sales force, and advertising
how does an overall cost leadership strategy protect a firm from porter's five forces?
(i) Provides substantial entry barriers from economies of scale and cost advantages
(ii) Protects a firm against powerful buyers
(iii) Provides more flexibility to cope with demands from powerful suppliers for input cost increases
(iv) Puts the firm in a favorable position with respect to substitute products
(v) Protects a firm against rivalry from competitors
what are the key aspects of a differentiation strategy?
(i) Firms may differentiate along several dimensions at once
(ii) Achieve and sustain above-average profits when price premiums exceed extra costs of being unique
(iii) Successful differentiation requires integration with all parts of a firm’s value chain
(iv) An important aspect of differentiation is speed or quick response
how does a differentiation strategy provide protection from porter's five forces?
(i) Creates higher entry barriers due to customer loyalty
(ii) Provides higher margins that enable the firm to deal with supplier power
(iii) Reduces buyer power because buyers lack suitable alternative
(iv) Reduces supplier power due to prestige associated with supplying to highly differentiated products
(v) Establishes customer loyalty and hence less threat from substitutes
what is the justification for choosing a focus strategy?
(i) Firm selects a segment or group of segments (niche) and tailors its strategy to serve them
(ii) Firm achieves competitive advantages by dedicating itself to these segments exclusively
what are two protections from porter's five forces that an overall focus strategy offers?
(i) Creates barriers of either cost leadership or differentiation, or both
(ii) Used to select niches that are least vulnerable to substitutes or where competitors are weakest
what are the generic strategies to be used during each of the industry life cycle stages?
introduction - differentiation
growth - differentiation
maturity - differentiation/cost leadership
decline - cost leadership/focus
what is corporate strategy concerned with?
what businesses should a corporation be in? how should these businesses be managed to jointly create more value than if they were freestanding units?
how can value be created through related diversification?
value created from economies of scope, value created from market power
what are the three ways that value is created from economies of scope?
1) leveraging core competencies - something that your firm is good at that can't be replicated

2) sharing related activities among businesses (common manufacturing facilities, patents, copyrights, distribution channels, sales forces)

3) share intangible resources (favorable reputation, specialized skills)
how does sharing related activities between businesses help create value?
cost saving, revenue enhancing
how is value created from market power?
1) pooled negotiation power
2) vertical integration
explain the advantages and disadvantages of pooled negotiation power
advantages: stronger bargaining power relative to customers, suppliers, competitors

disadvantages: abuse of power can result in adverse effects (ie mcdonalds refusing to serve pepsi)
what are the five main questions that a firm should ask itself before undertaking vertical integration?
(b) Are we satisfied with the quality of the value that our present suppliers and distributors are providing?
(c) Are there activities in our industry value chain presently being outsourced or performed independently by others that are a viable source of future profits?
(d) Is there a high level of stability in the demand for the organization’s products?
(e) How high is the proportion of additional production capacity actually absorbed by existing products or by the prospects of new and similar products?
(f) Transaction costs (search, negotiation, contract, monitor, enforcement) vs. administrative costs
what are the benefits of vertical integration?
1) Secure source of supply of raw materials
2) Secure distribution channels
Protection and control over assets and services
3) Access to new business opportunities and technologies
4) Simplified procurement and administrative procedures
what are the risks associated with vertical integration?
1) Expenses associated with increased overhead and capital expenditures
2) Loss of flexibility resulting from inability to respond quickly to changes in the external environment
3) Problems associated with unbalanced capacities or unfilled demand along the value chain
4) Additional administrative costs
how is value created through unrelated diversification?
value is created from corporate office: Human resources mgmt, Firm infrastructure, Technology development, Procurement, Information systems
what are the three ways to achieve diversification?
1) acquisitions or mergers - obtain valuable resources to help expand
2) pooling resources with other companies
3) internal development
how does a company go about pooling resources with another company and what are the results?
joint venture/strategic alliance
1) help introduce successful product to new market
2) reduce costs (pool capital, value creating activities, facilities) - economies of scale
3) diffuse technologies - develop tech beyond capabilities of individual firms
how does internal development achieve diversification?
introduce new products, explore new markets, develop new technologies