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163 Cards in this Set
- Front
- Back
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Organizational Structure |
the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities |
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Division of Labor |
the subdivision of work into separate jobs assigned to different people leads to job specializaiton |
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Coordination through informal communicaiton |
Sharing info on mutual tasks; forming common mental modes to synchronize work activities. Vital in routine and ambiguous situations |
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Concurrent Engineering |
Organization of employees from several departments into a temporary team for the purpose of developing a product or service Direct communication |
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Coordination through formal hierarchy |
Assigning legitimate power to individuals, who then use this power to direct work processes and allocate resources Direct supervision - chain of command |
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Coordination through standardization |
Creating routine patterns of behavior |
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Standardized processes |
Quality and consistency of a product or service can often by improved by standardizing work activities through job descriptions and procedures. Feasible when work is routine and easy |
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Standardized outputs |
Ensuring that individuals and work units have clearly defined goals and output measures. Ex: sales goals rather than specific behavior |
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Standardized skills |
Coordinate work effort by extensively training employees or hiring people who have learned precise role behaviors from educational programs. When work activities are too complex to standardized through process or goals |
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Span of Control (span of management) |
The number of people directly reporting to the next level in the hierarchy. Narrow span-needed when employees perform complex tasks Wider span-needed when employees perform routine jobs |
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Problems with taller structures(hierarchy) |
Higher overhead costs because they have more managers per employee Senior managers receive lower quality and less timely information |
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Centralization |
Formal decision making authority is held by a small group of people, typically those at the top of the organizational hierarchy |
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Formalization |
The degree to which organizations standardize behavior through rules, procedures, formal training and related mechanisms. Become more formalized as they increasingly rely on various forms of standardization to coordinate work. Increases as firms get older, larger and more regulated |
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Issues with formalization |
Reduce organizational flexibility Undermine organizational learning and creativity Reduces work efficiency Increases job dissatisfaction and work stress |
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Mechanistic structure |
Organizational structure with: Narrow span of control High centralization High formalization (rigid and mechanical, best in stable environment) |
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Organic structure |
Organizational structure with: Wide span of control High decentralization Low formalization (Works best in rapidly changing environments)
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Departmentalization |
Specifies how employees and their activities are grouped together |
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Functions of departmentalization |
Establishes chain of command Creates common mental models, measures of performance Encourages staff to coordinate through informal communicaiton |
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Simple Structure |
Minimal hierarchy usually just owner and employee |
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Functional Structure |
Organizes employees around specific knowledge or other resources Creates specialized pools of talent that typically serve everyone in the organization
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Benefits of functional structure |
Provides more economies of scale Increases employee identity with the specialization or profession Easier supervision |
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Limitations of functional structure |
More emphasis on subunit than orgaizational goals Higher dysfunctional conflict Poorer coordination |
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Divisional Structure |
Organizational structure in which employees are organized around geographic areas, outputs (products or services) or clients Depends on the primary source of environmental diversity or uncertanity |
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Fewer geograhic structures |
Less need for local representation Reduced geographic variation More global clients |
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Globally integrated enterprise |
Organizational structure in which work processes and executive functions are distributed around the world through global centers, rather than developed in a home country and replicated in satellite countries or regions |
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Benefits of Divisional structure |
Building block structure that accommodates growth Focuses on markets/products/clients |
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Limitation of divisional structure |
Duplicate resources Resources not used efficiently if division is too small Knowledge not shared Revising divisional structure emphasis produces politics and conflict among executives |
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Team based structure |
Organizational structure built around self-directed teams that complete an entire piece of work (manufacturing or service operations in divisional structures) Organic, wide span of control, highly decentralized |
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Benefits of team based structure |
Flexible and responsive Lower admin costs Allows quicker and more informed decision making (cross-functional team=more communication)
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Limitations of team based structure |
Interpersonal training costs Slower during team development Role ambiguity increases stress Problems with supervision role changes Duplication of resources |
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Matrix Structure |
Organizational structure that overlays two structures (such as a geographic divisional and a functional structure) in order to leverage the benefits of both |
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Benefits of matrix structure |
Uses resources and expertise effectively Improves communication, flexibility, innovation Focuses specialists on clients and products Supports knowledge sharing within speciality Solution when 2 divisions have equal importance |
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Limitations of matrix structure |
Increases goal conflict and ambiguity Two bosses dilutes accountability More conflict, organizational politics, and stress |
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Network structure |
An alliance of several organizations for the purpose of creating a product or serving a client Supporting firms beehived around a core firm |
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Benefits of network structure |
Highly flexible Potentially better use of skills and tech Not saddled with the same resources for all products |
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Limitations of network structure |
Exposed to market forces Less control over subcontractors than in house |
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External Environment |
Best structure for an organization depends on external environment Includes anything outside the organization |
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Characteristics that influence external environment |
Dynamism Complexity Diversity Hostility |
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Dynamic Environment |
High rate of change Use team-based, network or other organic structure |
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Stable Environment |
Steady conditions, predictable change Use mechanistic structure |
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Complex |
Many elements (such as stakeholders) Decentralize - decisions are pushed down to people with the necessary info to make informed decisions |
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Simple |
Few environmental elements Less need to decentralize |
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Diverse |
Several products, clients, regions Use divisional form aligned with the diversity |
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Integrated |
Single product, client, pace Use functional structure or geographic division if global |
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Hostile |
Competition and resource scarcity Use organic structure for responsiveness |
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Munificent |
Plenty of resources and product demand Less need for organic structure |
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Organizational size (increases) |
Job specialization increases Greater us of standardization More hierarchy and formalization More decentralization
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Technology |
The mechanisms or processes by which an organization turns out its products or service |
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Contingencies of technology |
Variability - the number of exceptions to standard procedure that tend to occur Analyzability - the predictability or difficulty of the required work |
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Organizational strategy |
The way the organization positions itself in its setting in relation to its stakeholders, given the organization's resources, capabilities, and mission |
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Structure follows strategy |
Strategy points to the environment in which the organization will operate Leaders decide which structure to apply |
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Innovation strategy |
Providing unique products or attracting clients who want customization |
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Cost leadership strategy |
Maximize productivity in order to offer competitive pricing |
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Organizational culture |
The values and assumptions shared within an organization Defines what is important |
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Values |
Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations |
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Shared assumptions |
Nonconscious taken for granted perceptions or ideal prototypes of behavior that are considered the correct way to think and act toward problems and opportunities |
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Espoused values |
The values that they want others to believe guide the organizaiton's decisions and actions |
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Enacted values |
The values that most leaders and employees truly rely on to guide their decisions and behavior. Seen by watching executives and employees in action |
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Innovation (culture dimension) |
Experimenting, opportunity seeking, risk taking, few rules, low cautiousness |
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Stability |
Predictability, securtiy, rule oriented |
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Respect for people |
Fairness, tolerance |
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Outcome orientation |
Action required, high expectations, results oriented |
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Attention to detail |
precise, analytic |
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Team orientation |
Collaboration, people oriented |
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Aggressiveness |
Competitive, low emphasis on social responsibility |
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Dominant culture |
the values and assumptions shared most consistently and widely by the organization's members |
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Subcultures |
Located throughout various divisions in organizaiton Can enhance or oppose firm's dominant culture
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Countercultures |
embrace values or assumptions that directly oppose the organization's dominant culture Maintain oganization's standards of performance and ethical behavior Source of emerging values
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Artifacts |
The observable symbols and signs of an organization's culture Provide evidence |
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Organizational stories and legends |
Social prescriptions of the way things should or should not be done Add human realism Most effective: describe real people, assumed to be true, known throughout organization, are prescriptive |
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Rituals and Ceremonies |
Rituals: programmed routines of daily organizational life that dramatize the organization's culture Ceremonies: Planned displays of organizational culture, conducted specifically for the benefit of the audience |
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Organizational Language |
Words used to address people, describe customers Leaders use phrases and special vocab as cultural symbols |
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Physical structure and symbols |
Building structure - may shape and reflect culture Office design conveys cultural meaning - furniture, office size, wall hangings |
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Strong culture exists when |
Most employees understand/embrace the dominant values Values and assumptions are institutionalized through well established artifacts Culture is long lasting |
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3 Functions to improve organizational effectiveness |
Control system-influences employee decisions and behavior, deeply embedded Social glue-bonds people together (social identity) Sense making-helps employees understand what is expected |
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Contingencies of Org culture |
Ensure culture-environment fit Avoid corporate "cult" strength Create an adaptive culture |
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Adaptive culture |
Org culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment and continuous improvement of internal processes |
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Bicultural audit |
A process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur 3 steps: identify cultural artifacts, analyze data for culutral conflict/compatibility, identify strategies and action plans |
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Assimilation |
Acquired company embraces acquiring firm's culture Works best when acquired firm has a weak culture |
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Deculturation |
Acquiring firm imposes its culture on unwilling acquired firm Rarely works-may be necessary only when acquired firm's culture doesnt work but employees don't realize it |
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Integration |
Merging companies combine the tow or more cultures into a new composite culture Works best when existing cultures can be improved |
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Separation |
Merging companies remain distinct entities with minimal exchange of culture or organizational practices Works best when firms operate successfully in different businesses requiring different cultures |
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Changing/strengthening org culture |
Actions of founders and leaders Aligning artifacts Introducing culturally consistent rewards Attracting, selecting and socializing employees |
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Actions of founders and leaders |
Org culture sometimes reflects the founder's personality Transformational leaders can reshape culture- organizational change practices |
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Aligning artifacts |
Artifacts keep culture in place Create memorable events that symbolize the cultural values, communicating stories, transferring culture carriers(employees) |
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Introducing culturally consistent rewards |
Rewards are powerful artifacts - reinforce culturally consistent behavior |
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Attraction-selection-attrition theory |
States that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics that are consistent with the organization's character, resulting in a more homogeneous organization and a stronger culture |
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Organizations become more homogeneous through |
Attraction-applicants self select and weed out companies based on compatible values Selection-applicants selected based on values congruent with organization's culture Attrition-employees quit or are forced out when their values oppose company values |
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Organizational socialization |
The process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organizaiton |
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Learning process |
Newcomers make sense of the org physical, social, and strategic/cultural dynamics |
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Adjustment process |
Adapt to new work environment: new work roles new team norms |
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Psychological contract |
The individual's beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party - transactional and relational |
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Stages of socialization |
Pre-employment (outsider) Encounter (newcomer) Role management (insider) |
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Reality shock |
The stress that results when employees perceive discrepancies between their preemployment expectations and on the job reality |
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Realistic job preview |
A method of improving organizational socialization in which job applicants are given a balance of positive and negative information about the job and work context |
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Socialization agents |
Supervisors - technical info, performance, feedback, job duties Co workers - ideal when accessible, role models, tolerant and supportive |
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Force field analysis |
Kurt Lewin's model of systemwide change that helps change agents diagnose the forces that drive and restrain proposed organizational change Unfreeze-move to desired condition-refreeze |
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Driving forces |
One side of force field represents driving forces that push organizations toward a new state of affairs: new competitors or technologies, evolving workforce expectations |
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Unfreezing |
The first part of the change process, in which the change agent produces disequilibrium between the driving and restraining forces |
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Organizations |
Open systems that need to remain compatible with their external environments: consumer needs, global competition, technology, community expectations, govt (de)regulation and environmental standards |
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Restraining forces |
Maintain status quo Resistance to change because the appear to block the change process |
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Refreezing |
The latter part of the change process, in which systems and structures are introduced that reinforce and maintain the desired behaviors |
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Resistance as a source |
Symptoms of deeper problems in the change process Form of constructive conflict that can improve decision making Form of voice, potentially improves procedural justice |
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Why people resist change |
Direct costs Saving face Fear of the unknown Breaking routines Incongruent team dynamics incongruent organizational systems |
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Direct costs |
Losing something of value due to change |
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Saving face |
Not invented here syndrome |
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Fear of the unknown |
Risk of personal loss Concern about being unable to adjust |
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Breaking routines |
Cost of moving away from our comfort zones Requires time/effort to learn new routines |
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Incongruent team dynamics |
Norms contrary to the desired change
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Incongruent organizational systems |
Systems/structures reinforce status quo Career, reward, power, communication systems
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Preferred option for change |
Increase driving forces and reduce the restraining forces |
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Urgency for change |
Customer driven change-adverse consequences for firm Create urgency without external drivers-positive vision rather than threats |
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Communication(minimizing resistance) |
Highest priority and first strategy Generates urgency Reduces uncertainty Problems-time consuming and costly |
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Learning |
Provides new knowledge/skills Includes coaching Helps break old routines and adopt new roles Problems-time consuming and costly |
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Employee involvment |
Employees participate in change process Helps saving face and reducing fear of unknown Includes task forces, future search events Problems-time consuming, potential conflict |
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Stress management |
When communication, learning, and involvement are not enough to ease worries Problems-time consuming, expensive, doesn't help everyone |
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Negotiation |
Influence by exchange-reduce direct costs When people lose something and won't otherwise change Problems-expensive, gains compliance not commitment |
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Coercion |
When all else fails Assertive influence Radial form of unlearning Problems-reduces trust, may create more subtle resistance, encourage politics to protect job
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Change agent |
Anyone who possesses enough knowledge and power to guide and facilitate the change effort |
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Strategic vision and change |
Need a vision of the desired future state Identifies critical success factors for change Minimized employee fear of the unknown Clarifies role perceptions |
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Guiding coalition |
Representatives across the firm(formally structured) Committed to the change influence |
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Viral change |
Informal, not easily controlled Information seeded to a few and passed on through social network(department) |
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Diffusion of change |
MARS Model |
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Motivation |
Pilot project employees rewarded, motivate others to adopt |
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Ability |
Train employees to adopt pilot project |
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Role perceptions |
Translate pilot project to new situations |
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Situational factors |
Provide resources to implement pilot project elsewhere |
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Action research approach |
A problem focused change process that combines action orientation(changing attitudes and behavior) and research orientation(testing theory through data collection and analysis) |
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Form client-consultant relationship |
Change agent originates from outside the system (consultant) Consultant determines client's readiness for change |
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Diagnose need for change |
Analyze data Gather data decide objectives |
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Introduce intervention |
Implement the desired incremental or quantam change |
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Evaluate and stabilize change |
Determine the change effectiveness Refreeze new conditions |
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Appreciative Inquiry Approach |
Organizaitonal change strategy that directs the groups attention away from its own problems and focuses participants on the groups potential and positive elements |
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Positive principle |
focus on opportunities, not problems |
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Constructionist principle |
conversations shape reality |
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Simultaneity principle |
Inquiry and change our simultaneous |
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Poetic principle |
We can choose how to perceive events and situations |
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Anticipatory principle |
People are motivated by desirable visions of the future |
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4D process Of appreciative inquiry |
Discovery dreaming designing delivering |
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Future search Large group intervention approach |
And organizational change strategy that consist of systemwide group sessions usually lasting a few days in which participants identify trends and establish ways to adapt to those changes |
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Parallel learning structure approach |
A highly participative arrangement composed of people from most levels of the organization who filed action research model to produce meaningful organizational change |
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Cross cultural concerns |
Linear in open conflict assumptions different from values in some cultures |
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Ethical concerns |
Privacy rights of individuals Management power Individual self-esteem |
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Servant leadership |
The view that leaders serve followers Described as selfless, egalitarian, humble nurturing empathetic and ethical coaches |
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Path goal leadership theory |
A contingency theory of leadership based on the expectancy theory of motivation that relates several leadership styles to specific employee and situational contingencies Leader behaviors affected by employee and environmental contingencies the outcome is leader effectiveness |
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Directive Leadership style |
Provide psychological structure to jobs Task oriented behaviors |
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Supportive leadership style |
Provide psychological support people oriented behaviors |
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Participative leadership style |
Encourage or facilitate employee involvement |
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Achievement oriented leadership style |
Encourage peak performance through goalsetting and positive self-fulfilling prophecy |
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Path goal contingencies |
skill and experience Locus of control Task structure Team dynamics |
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Situational leadership model |
A commercially popular but poorly supported leadership model stating that effective leaders vary their style (telling, selling, participating, delegating,) with the readiness of followers |
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Fielder's contingency Model |
Contingency leadership model that suggests that leader effectiveness depends on whether the person natural leadership style is appropriately matched to the situation |
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Leadership substitutes |
A theory identifying contingencies that either limit the leaders ability to influence subordinates or make a particular leadership style and necessary |
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Transformational leadership |
Leadership perspective that explains how leaders change teams or organizations by creating, communicating, and modeling of vision for the organization or work unit and inspiring employees to strive for that vision |
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Managerial leadership |
A leadership perspective stating that effective leaders help employees improve their performance and well-being in the current situation |
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Transactional leaders |
Influencing followers through rewards, penalties, and negotiation |
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Create a strategic vision |
Image of companies attractive future Motivate and bonds employees Vision may originate from the leader, employees or other stakeholders |
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Communicate the vision |
frame message around a grand proposal Shared mental model of the future Use symbols, metaphors, stories |
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Model the vision |
Symbolize or demonstrate the vision through behavior |
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Build commitment to the vision |
By communicating and modeling the vision Through employee involvement in shaping the shared vision |
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Implicit leadership perspective |
Leadership theory that involved the followers perceptions about the characteristics and influence of the people they call leaders |
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Leadership prototypes |
Preconceived beliefs about the features and behaviors of effective leaders |
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Romance of the leadership effect |
Amplify effective leaders on organizational results Fundamental attribution error Need for situational control |
