Understanding Organizations

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Questions and Answers

Which of the following best describes the primary function of 'buffering roles' within an organization, as discussed in the provided content?

  • To directly engage with competitors to gain market share.
  • To establish innovative strategies for rapid growth and expansion.
  • To streamline internal processes and reduce operational costs.
  • To shield the organization from external uncertainties. (correct)

A company is undergoing significant restructuring to decentralize decision-making and foster adaptability. According to the text, this transformation indicates a shift towards what type of organizational structure?

  • Organic structure (correct)
  • Mechanistic structure
  • Bureaucratic structure
  • Divisional structure

A manufacturing company decides to implement lean manufacturing. How would this affect the employees?

  • Employees only need basic training because automation will handle complex tasks.
  • Employees must become highly skilled in problem-solving to reduce waste. (correct)
  • Employees are subject to stricter supervision to ensure process adherence.
  • Employees focus on a narrow set of repetitive tasks to enhance efficiency.

A tech company frequently uses high-tech analysis of internal and external data to spot patterns and boost profits. Which of the following frameworks is the company using?

<p>Business intelligence (B)</p> Signup and view all the answers

An organization aims to improve its operational efficiency by standardizing processes and centralizing control. Which contextual dimension would be most affected by these changes?

<p>Culture (B)</p> Signup and view all the answers

A company that produces customized, high-end furniture would be classified under which of Woodward's groups?

<p>Small batch and unit production (A)</p> Signup and view all the answers

What is the primary strategic focus of an organization adopting a 'Defender' strategy, according to Miles and Snow's strategic framework?

<p>Maintaining stability through retrenchment. (A)</p> Signup and view all the answers

A company is experiencing a significant drop in its resource base after years of success. According to the text, what is the most likely cause of this?

<p>Organizational decline (C)</p> Signup and view all the answers

A company's management team agrees on the nature of a problem and the goals pursued. Which aspect of the problem-solving process is described?

<p>Problem consensus (D)</p> Signup and view all the answers

In a rapidly changing technological landscape, what organizational attribute becomes most critical for sustained success?

<p>Adaptability and continuous learning. (C)</p> Signup and view all the answers

A company prides itself on its employees' satisfaction and strong teamwork. Following the competing values model, what kind of emphasis does the company have?

<p>Human relations emphasis (A)</p> Signup and view all the answers

What is the primary distinction between 'programmed' and 'non-programmed' decisions in an organizational context?

<p>Programmed decisions are routine and well-defined, while non-programmed decisions are novel and poorly defined. (C)</p> Signup and view all the answers

A task environment includes multiple aspects that affect a company. Which of the following is included in a task environment?

<p>Sectors with which the organization interacts directly (D)</p> Signup and view all the answers

A newly formed company has no formal reporting relationships and coordination is based on high motivation. What type of structure is this?

<p>Simple (D)</p> Signup and view all the answers

A company uses rewards and incentives to influence the behavior of its employees. What kind of power is this?

<p>Reward Power (B)</p> Signup and view all the answers

Flashcards

What is an organization?

Social entities with goal-directed behavior, structured coordination, and links to the external environment.

Strategy

Current plans, decisions, and objectives adopted to achieve organizational goals.

Process

Organized tasks transforming inputs into outputs, creating customer value.

Formalization

The degree to which an organization uses rules, procedures, and documentation.

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Specialization

The degree to which tasks are divided into specific tasks

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Hierarchy of Authority

Who reports to whom

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Centralization

The level of hierarchy with authority to make decisions

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Professionalism

The level of formal education of employees

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Learning organization

Continuously adapts and improves by promoting a culture of innovation and knowledge.

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Flexible models

Traditional rigid structures are being replaced, to quickly respond to change.

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Organic structure

Decentralized, flexible, and adaptive contrasted with mechanistic structure.

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Mechanistic

A system marked by rules, procedures and clear hierarchy.

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Buffering roles

Activities that absorb uncertainty from external environment.

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Defender strategy

Seeks stability rather than growth

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Prospector

Innovation, risk-taking, seeking new opportunities and growth.

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Study Notes

  • Organizations are social entities with people, relationships, and interactions
  • Organizations are goal-directed, having several goals of different types
  • Organizations are deliberately structured and coordinated through planning and design
  • Organizations are linked to the external environment, shaping and being shaped by it

Key Problems and Course Content

  • Goal setting is related to mission, goals, and strategy
  • Coordinating efforts is related to structure, decision-making, and power
  • Deciding where to operate is related to the external environment
  • Defining activities and participants is related to technology
  • Ensuring proper actions is related to culture and control

Current Challenges

  • Globalization poses significant challenges
  • Ethics and social responsibility are key considerations
  • Responsiveness to environmental changes and customer needs is crucial
  • Supporting diversity within the organization is important

Organizational Structure and Design Definitions

  • Joint ventures create formally independent organizations controlled partially by parent companies
  • Top management sets goals, strategy, and design to guide organizational endeavors
  • Personnel ratios are the proportions of administrative, clerical and professional support staff
  • Strategy involves plans, decisions, and objectives to achieve organizational goals
  • Processes are organized groups of tasks that transform inputs into outputs, creating value for customers
  • Sectors are subdivisions of the external environment with similar elements

Structural Dimensions

  • Formalization describes the extent of rules, procedures, and written documentation
  • Specialization describes how tasks are divided into separate, narrow jobs
  • Hierarchy of authority describes reporting structure and span of control
  • Centralization refers to the level of hierarchy with decision-making authority
  • Professionalism describes the level of formal education and training of employees
  • Personnel ratios are the proportions of administrative, clerical and professional support staff

Contextual Dimensions

  • Size impacts the organization's structure and processes
  • Organizational technology influences workflow and operations
  • The environment affects the organization's strategy and structure
  • Goals and strategy shape organizational activities
  • Culture influences behavior and decision-making

Stakeholders and Their Expectations

  • Employees expect payment, job satisfaction, and good leadership
  • Suppliers seek revenue and efficiency in transactions
  • Customers desire quality, service, and value
  • Creditors look for creditworthiness and fiscal responsibility
  • Unions want good working conditions, payment levels, and benefits
  • Government requires compliance with the law and fair competition
  • Communities expect corporate citizenship and CSR

Contemporary Organizational Design

  • Learning organizations continuously adapt and improve through innovation and knowledge sharing
  • Traditional rigid structures are replaced by adaptive, decentralized models
  • Organic structures are decentralized, flexible, and adaptive
  • Mechanistic structures are rigid, hierarchical, and rule-based

Contingency

  • Effectiveness measures focus on different organizational aspects
  • An organization's situation dictates the management approach
  • Contingency decision-making framework brings together problem consensus and technical knowledge dimensions

Contingency Decision-Making Framework Approaches

  • The goal approach focuses on outputs and achieving desired levels
  • The resource-based approach evaluates resource acquisition for high performance
  • The internal process approach assesses effectiveness through internal activities & efficiency

Other definitions

  • Merger is the unification of two or more organizations into a single unit
  • Acquisition is the purchase of one organization by another
  • Buffering roles are activities that absorb uncertainty from the environment
  • Official goals are mission statement, desired outcomes, the organization is trying to achieve
  • Mechanistic organization are systems marked by rules, procedures, a clear hierarchy of authority, and centralized decision-making.

Strategic Frameworks: Miles and Snow

  • Defender strategy seeks stability rather than innovation
  • Prospector strategy focuses on innovation and risk-taking
  • Analyzer strategy balances stability with innovation

Strategic Frameworks: Porter's

  • Differentiation is providing unique products or services
  • Low-cost leadership is about increasing market share by emphasizing low cost
  • Focus strategy concentrates on a specific market or buyer group

Competing Values Model

  • Human relations emphasis prioritizes employee satisfaction and teamwork
  • Open system emphasis values flexibility and external relations
  • Internal process emphasis focuses on stability and internal efficiency
  • Rational goal emphasis emphasizes productivity and profit

Mintzberg's 5 Parts of an Organization

  • Technical core
  • Top management
  • Middle management
  • Technical support
  • Administrative support

Chapter 4: Definitions

  • Full-time integrator: A permanent position within an organization responsible for coordinating activities and ensuring collaboration across different departments
  • Task force: A temporary committee composed of representatives from each organizational unit affected by a problem
  • Emphasis on control: Focus on specialized tasks, hierarchy, rules, regulations, formal reporting system, few teams, and centralized decision-making.
  • Emphasis on learning: Focus on shared tasks, a relaxed hierarchy, few rules, face-to-face communication, many teams, informal processes, and decentralized decision-making
  • Simple structures: Develops in newly founded organizations.
  • No form reporting relationship or chain of command
  • Coordination based on friendship and high motivation

Functional Groupings

  • Structures based on function (HR, Marketing, etc.)
  • Concentrates employees with similar knowledge and expertise

Divisional Structures

  • Groups activities according to specific output divisions
  • Groupings can be based on products, services, projects, or divisions

Matrix Structures

  • Hybrid structure, combining two structures
  • Emphasizes horizontal linkages and dual authority structures
  • Is suitable when resources need to be shared, pressure exists to develop new knowledge, and the organization operates in a complex, unstable environment

Horizontal Structure

  • The structure is created around the cross-functional process
  • Self-directed teams are the basis of organization design and performance
  • Process owners are responsible for the entire process end-to-end
  • People on the team are given authority for decisions

Virtual Structure

  • Extends the concept of horizontal coordination and collaboration beyond the boundaries of the organization
  • Most common strategy is outsourcing by contracting out certain tasks/functions

Chapter 5: Definitions

  • Formal strategic alliance: A strategic alliance is a close and collaborative relationship between two or more entities that share assets, strengths, risk, rewards, and control
  • Cooptation occurs when leaders from important sectors in the environment become part of an organization
  • Alliance building is the process of selecting the most effective members for the team and bringing those members together
  • Task environment is a part of the organizational environment, includes those sectors that the organization interacts directly and that have a direct effect on the organization’s ability to achieve its goals.

Definitions for External and Organizational Environments

  • General environment includes sectors that do not directly affect the daily operations of a firm but indirectly influence it
  • Organizational domain is the spectrum of products and services organizations can provide, also includes stakeholders and customers

Classic VS Boundary-spanning approach

  • Classic approach focuses on internal efficiency, hierarchy, and structure
  • Boundary-spanning approach links and coordinates an organization with key elements in the external environment
  • Organic organization system is marked by free-flowing, adaptive processes, and decentralized decision making
  • Resource dependence is when organizations depend on the environment and strive to acquire control over resources to minimize their dependence
  • Resource interdependence occurs when group members combine resources for a task

Internal Process and Decision Making Definitions

  • Internal integration is a state in which organization members develop a collective identity and know how to work together effectively
  • Business intelligence is high-tech analysis of internal and external data to identify patterns
  • Executive recruitment is the use of a personnel firm to locate candidates
  • Programmed decisions are repetitive and well-defined procedures

Chapter 8: Technology Definitions

  • Technology includes the tools, techniques and actions used to transform organizational inputs into outputs.
  • Core technology is the work process that is directly related to the organization's mission
  • Non-core technologies are the work processes that support the organization's main mission but are not directly involved in producing its primary outputs

Woodward

  • The model assesses a specific aspect of the manufacturing process of firms, and assess technical complexity
  • High mechanization- automated, standardized, capital-intensive, centralized control
  • Low mechanization- labor-intensive, flexible, customized, a skilled workforce-dependent

Group 1 - Small Batch and Unit Production

  • Small orders to meet specific requirements
  • Relies heavily on the human operator, not highly mechanized
  • Plane, handyman

Group 2 - Large Batch and Mass Production

  • Characterized by long production runs of standardized parts
  • Output often goes into inventory since customers do not have special needs is TV

Group 3 - Contiguous Process Production

  • The entire process is mechanized is beer

Technological Uncertainty

  • Non-routine technology high uncertainty, unique problem-solving, little reliance on standard procedures
  • Craft technology low task variety, skilled expertise, reliance on experience-based judgment
  • Routine technology little task variety and the use of objective, computational procedures

Other types of technology

  • Engineering technology complex and varied tasks, follows established routines, formulas and analytical methods and requires expertise.

Characteristics of service technology

  • Intangible output
  • Simultaneous production and consumption
  • Labour- and knowledge intensive
  • Customer interaction generally high
  • Human element very important
  • Quality is perceived and difficult to measure
  • Rapid response time is usually necessary
  • Site of facility is extremely important

Characteristics of manufacturing technology

  • Tangible products
  • Products can be inventoried for later consumption
  • Capital asset intensive
  • Little direct customer interaction
  • Human element may be less important
  • Quality is directly measured
  • Longer response time is acceptable
  • Site of facility is moderately important

Other Definitions

  • Job enlargement involves expanding job tasks.
  • Job enrichment involves increasing responsibility and recognition.
  • Job rotation involves moving employees between jobs.
  • Job simplification involves reducing task difficulty.
  • Joint optimization aligning social and technical systems effectively.
  • Sociotechnical systems approach is a balance of people and technical efficiency.
  • Lean manufacturing uses trained employees for continuous improvement.
  • Analyzability is the degree to which work can be reduced to mechanical steps.

Chapter 10: Size Definitions

  • Large organizations have economies of scale and global reach
  • Small organizations are responsive and flexible and have local reach

Bureaucracy Characteristics

  • The most formally rational system for organizing
  • Way to remove nepotism and arbitrariness
  • A threat to pluralism and other values

Other Definitions

  • Organizational cycle Life-cycle approach impact all stages of product.
  • Incident command system maintains efficiency prevents slow response to crisis.

Chapter 11: other

  • Organizational social interactions among people, trust is important to reach goals
  • Whistle-blowing is Employee disclosure of illegal, immoral practices
  • Values-based has strong leader follower relationships
  • Symbolic leadership focuses meanings values and interpretation

Culture type definitions

  • Code of ethics
  • Code of conduct
  • Adaptability culture(external, flexibility)
  • Mission culture ( external, stability)
  • Clan culture( internal flexibility)
  • Bureaucratic culture( internal, stability)

Chapter 13: Other Definitions

  • Organizational there decrease substantial resource base
  • Organizational atrophy when inefficient overly bureaucratized, success deteriorates
  • Vulnerability reflects strategic inability

Organizational Decline Definitions

  • Blinded stage
  • Inaction stage
  • Faulty action stage
  • Crisis stage
  • Dissolution stage

Problem Solving Definitions

  • Identification stage: the problem is recognized
  • Solution stage: action to resolve problems

other Definitions

  • Problem consensus is agreement among managers and pursue outcomes
  • Problemistic search around and resolve problem quickly
  • Programmed decisions repetitive, well defined procedures Intuitive decision experience and judgment use solving problems
  • Incremental decision describing structure activities discovery

Chapter 14: Decision Making Definitions

  • Management science - organizational decision rational individuals
  • Garbage car describes the pattern within an organization

Organizations Definitions

  • Organized anarchy organic character highly uncertain conditions
  • Escalating commitment persisting action is fallen
  • High velocity rate is competitive extreme

Other Definitions

  • Bounded decisions made numbers affect decision
  • Carnegie satisficing optimization
  • Satisficing accept satisfactory rather maximize performance

Rational Approach Definitions

  • Monitor decision environment
  • Define the problem issue
  • Develop alternative solutions
  • Choose the best alternative
  • Implement the chosen
  • Intergroup conflict behavior organizational
  • Goal incompatibility.
  • Differentiation.
  • Task interdependence
  • Limited resources

Collaboration Definitions

  • techniques such integrations confronts
  • Intergroup consultation shared missions
  • The ability influence produce

Vertical powers Definitions

  • Vertical powers control information
  • Formal position
  • Referent leader must be respected

Other power definitions

  • Expertise has knowledge
  • Legitimate formal power authority to given
  • Reward influence incentives
  • Coercive threating consequence
  • Authority relies acceptance subordination
  • Politics serving in exercise

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