Thursday, August 1, 2019
Busi 3103 Notes
ORGANIZATIONAL THEORY ââ¬â STUDY LIST ââ¬â KEY CONCEPTS PART ONE: INTRODUCTION TO ORGANIZATIONS CHAPTER ONE ââ¬â ORGANIZATIONS AND ORGANIZATIONAL THEORY Administrative principles: closed system management perspective that focuses on the total organization and grows from the insight of practitioners ââ¬â Bureaucratic organizations: organization design based on clearly defined authority and responsibility, formal record keeping and uniform application if standard rules ââ¬â Change strategy: a plan to guide an organizational change ââ¬â Chaos Theory: a scientific theory that suggests that relationships in complex, adaptive systems are made up of numerous interconnections that create unintentional effects and render the environment unpredictable ââ¬â Closed system: autonomous, enclosed and not dependent on the external environment ââ¬â Contextual dimensions: the characteristics of an organization, including size, technology, environment and goals. ââ¬â Contingency: the applicable management approach to deal with unforeseen events ââ¬â Effectiveness: the degree to which an organization achieves its goals ââ¬â Efficiency: the amount of resources used to produce a unit of output ââ¬â Hawthorne studies: studies worker productivity.Managers who treat their employees well facilitate increased employee output ââ¬â Learning organization: everyone is engaged in finding and solving problems enable continuous improvement and capabilities of its own employees ââ¬â Level of analysis: in systems theory, the subsystem on which the primary focus is placed; four levels of analysis characterize the organization ââ¬â Meso theory: combines micro and macro levels of analysis ââ¬â Open System: interacts with the environment for survival ââ¬â Organization: social entities that are goal directed, deliberately structured and linked to the external environment ââ¬â OB: micro approach to organizations with focus on indiv iduals in the organization ââ¬â OT: macro approach to organizations that analyses the whole organization as a unit ââ¬â Role: allows an employee to use their abilities to achieve outcomes and meet goals ââ¬â Scientific management: claims decisions about organization and job design should be based on precise, scientific procedures ââ¬â Stakeholder: any group within or outside an organization that has a stake in the rganizations performance ââ¬â Stakeholder approach: (constituency approach) stakeholder satisfaction indicates the performance of the organization ââ¬â Structural dimensions: describes the internal characteristics of an organization ââ¬â Subsystems: divisions of an organization that perform specific functions for the survival of the organization. Functions include boundary spanning, production, maintenance, adaptation and management ââ¬â System: set of interacting elements of inputs, transformation and output to the environment ââ¬â Task : narrowly defined piece of work assigned to a person PART TWO: ORGANIZATIONAL PURPOSE AND STRUCTURAL DESIGN CHAPTER TWO ââ¬â STRATEGY, ORGANIZATIONAL DESIGN, AND EFFECTIVENESS ââ¬â Analyzer (62) Competing values model: perspective on organizational effectiveness that combines diverse indictors of performance that represent competing management values ââ¬â Defender: business strategy that seeks stability or retrenchment rather than innovation or growth ââ¬â Differentiation strategy: used to distinguish an organizationââ¬â¢s products or services from others in the industry ââ¬â Focus strategy: concentrates on a specific regional market or buyer group Goal approach: concerned with output and whether the organization achieves its output goals ââ¬â Human relations emphasis: competing-values model that incorporates the values of an internal focus and a flexible structure ââ¬â Internal-process approach: looks at internal activities and assesses effectiveness by indicators of internal health and efficiency ââ¬â Internal-process emphasis: competing-values model that looks at the values of internal focus and structural control ââ¬â Low-cost leadership strategy: tries to increase market share by emphasizing low cost compared to competitors ââ¬â Mission: organization reason for existence ââ¬â Official Goals: formally stated definitions of business scope and outcomes the organization strives to achieve (also called mission) ââ¬â Open-systems emphasis: competing-values model that looks at the combination of external focus and flexible structure ââ¬â Operative goals: explain what the organization is trying to achieve, with focus on the actual operating procedures ââ¬â Organizational goals: desired state the organization attempts to reach ââ¬â Prospector: business strategy characterized by innovation, risk aking, seeking new opportunities and growth ââ¬â Rational-goal emphasis: competing-values model that foc uses on structural control and external focus ââ¬â Reactor strategy: business strategy in which environmental threats and opportunities are responded to in an ad hoc fashion ââ¬â Resource-based approach: organizational perspective that assesses effectiveness based on how organizations successfully obtains, integrates and manages valued resources ââ¬â Strategy: set of plans, decisions and objectives that have been adopted to achieve the organizations goals ââ¬â Structure: formal reporting relationships, groupings and systems of an organization CHAPTER THREE ââ¬â FUNDAMENTALS OF ORGANIZATIONAL STRUCTURE Centralized: level of hierarchy with authority to make decisions ââ¬â Chain of command: formal line of authority to make decisions Decentralized: decision making and communication that is spread out across the company ââ¬â Departmental grouping: structure where employees share a common supervisor and resources, are jointly responsible for performance, and te nd to identify and collaborate with each other ââ¬â Divisional grouping: people are organized according to what the organization produces ââ¬â Divisional structure: structuring based on individual products, services, product groups, major projects, or profit centers (also called product structure or strategic business units) ââ¬â Functional grouping: grouping of employees who perform similar functions or work processes or who bring similar knowledge and skills to bear on a task ââ¬â Functional matrix: structure in which functional bosses have primary authority, and product or project managers simply coordinate product services ââ¬â Functional structure: grouping of activities by common function ââ¬â Horizontal grouping: organizing of employees around core work processes rather than by function, product or geography ââ¬â Horizontal linkage: amount of communication and coordination that occurs horizontally across organizational departments ââ¬â Horizont al structure: structure that eliminates both the vertical hierarchy and departmental boundaries by organizing teams of employees around the core work processes, the end to end work, information, and material flow that provide value directly to customers ââ¬â Hybrid structure: combines various structural approaches (functional, divisional, geographical, and horizontal) tailored to specific strategic needs ââ¬â Integrator: a position or department that is reated to coordinate several departments ââ¬â Liaison role: person that is responsible to communicating and achieving coordination with another department ââ¬â Matrix structure: strong form of horizontal linkage in which both product and functional structures (horizontal and vertical) are implemented simultaneously ââ¬â Multifocused grouping: a structure in which an organization embraces structural grouping alternatives simultaneously ââ¬â Organizational structure: designates formal reporting relationships, in cluding the number of levels in the hierarchy and the span of control of managers and supervisors; identifies the grouping together of individuals into departments and of departments into the total organization; and includes the design of systems to ensure effective communication, coordination and integration of efforts across departments ââ¬â Outsourcing: contracting out certain functions, e. g. anufacturing,ITâ⬠¦to other organization ââ¬â Process: organized group of related tasks and activities that work together to transform inputs into outputs that create value for customers ââ¬â Product matrix: a variation of the matrix structure in which project or product managers have primary authority, and functional managers simply assign technical personnel to projects and provide advisory expertise ââ¬â Re-engineering: redesigning a vertical organization along its horizontal workflows and processes ââ¬â Symptoms of structural deficiency: signs of the organization structure being out of alignment, including delayed or poor quality decision making, failure to respond innovatively to environmental changes, and too much conflict ââ¬â Task force: temporary committee composed of representatives from each department affected by a problem Teams: permanents task forces often used in conjunction with a full time integrator ââ¬â Vertical information system: periodic reports, written information and computer based communications distributed to managers ââ¬â Vertical linkages: communication and coordination activities connecting the top and bottom of an organization ââ¬â Virtual cross-functional teams: teams comprising individuals from different functions who are separated in space and time as well ââ¬â Virtual network grouping: organization that is loosely connected cluster of separate components ââ¬â Virtual network structure: the firm subcontracts many or most of its major processes to separate companies and coordinates their a ctivities from a small headquarters or organization ââ¬â Virtual team: made up of organizationally or geographically dispersed members who are linked through advanced information and communications technologies. Members frequently use the internet and collaborative software to work together, rather than meeting face to face SLIDES ONLY ââ¬â BCG matrix (10): Consider market share and growth for product portfolios PART THREE: OPEN-SYSTEM DESIGN ELEMENTS CHAPTER FOUR ââ¬â EXTERNAL ENVIRONMENT ââ¬â Boundary spanning roles: activities that link and coordinate an organization with key elements in the external environment ââ¬â Boundary scanning roles (Slide only) Buffering roles: activities that absorb uncertainty from the environment ââ¬â Cooptation: when leaders from important sectors in the environment are made part of an organization ââ¬â Differentiation: the differences (cognitive and emotional) among managers in various functional departments of an organiz ation and formal structure differences among these departments ââ¬â Direct interlock: occurs when a member of the board of directors of one company sits on the board of another ââ¬â Domain: an organizations chosen environmental field of activity ââ¬â General environment: sectors that may not directly affect the daily operations of a firm but will indirectly influence it ââ¬â Green environment: natural environment Indirect interlock: occurs when a director of one company and a director of another are both directors of third company ââ¬â Integration: the quality of collaboration between departments of an organization ââ¬â Interlocking directorate: formal linkage that occurs when a member of the board of directors of one company sits on the board of another company ââ¬â Mechanistic: an organization system marked by rules, procedures, a clear hierarchy of authority, and centralized decision making ââ¬â Organic: free flowing, adaptive processes an unclear hierarchy of authority, and decentralized decision making ââ¬â Organizational environment: all elements that exist outside the boundary of the organization and have potential to affect all or part of the organization ââ¬â Resource dependence: a situation in which organization depends on the environment, but strive to acquire control over resources to minimize their dependence ââ¬â Sectors: subdivisions of the external environment that contain similar elements ââ¬â Simple-complex dimension: the number and dissimilarity of external elements relevant to an organizations operations ââ¬â Stable-unstable dimension: the state of an organizationââ¬â¢s environmental elements ââ¬â Task environment: sectors with which the organization interacts directly and that have a direct effect on the organizationââ¬â¢s ability to achieve its goals ââ¬â Uncertainty: occurs when decision makers do not have sufficient information about the environmental factors and have a d ifficult time predicting external changes CHAPTER FIVE ââ¬â INTERORGANIZATIONAL RELATIONSHIPS Coercive forces: external pressures such as legal requirements exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations ââ¬â Collaborative networks: an emerging perspective whereby organizations allow themselves to become dependent on other organizations to increase value and productivity for all ââ¬â Generalist: an organization that offers a broad range of products or services and serves a broad market ââ¬â Institutional environment: norms and values from stakeholders that organizations try to follow in order to please stakeholders ââ¬â Institutional perspective: under high uncertainty, organizations imitate others in the same institutional environment ââ¬â Institutional similarity: common structures, management approaches and behaviors established by organizations in the same field. Interorganizational relationships: r esource transactions, flows and linkages that occur among two or more organizations ââ¬â Legitimacy: an organizations actions are desirable, proper and appropriate within the environmentââ¬â¢s systems of norms, values and beliefs ââ¬â Mimetic forces: under uncertainty, this is the pressure to copy or model other organizations that appear to be successful in the environment ââ¬â Niche: domain of unique environmental resources and needs ââ¬â Normative forces: pressures to adopt structures, techniques or management processes because they are considered by the community to be up to date and effective ââ¬â Organizational ecosystem: system formed by the interaction of a community of organizations and their environment, usually cutting across traditional industry lines ââ¬â Organizational form: an organizationââ¬â¢s specific technology, structure, products, goals, and personnel ââ¬â Population: set of organizations engaged in similar activities with simila r resources and utcomes ââ¬â Population-ecology perspective: the focus is on organizational diversity and adaptation within a community or population or organizations ââ¬â Retention: The preservation and institutionalization of selected organizational forms ââ¬â Selection: process by which organizational variations are determined to fit the external environment, variations that fail to fit the needs if the environment are selected out and fail ââ¬â Specialist: an organization with a narrow range of goods or services or serves a narrow market ââ¬â Struggle for existence: principle of the population ecology model that states that organizations are engaged in a competitive struggle for resources and fighting to survive ââ¬â Variation: new organizational forms that respond to the needs of the external environment (mutations in biology) SLIDES ONLY ââ¬â Agency theory (9-13): The relationship between Shareholders and Managers is dominated by this question, How can the Agent shareholder/owner make sure that the managers are acting in their best interest? ââ¬â Transaction cost theory (21-25): The inclusion of all costs are considered whenà makingà aà decisionà and not just theà market prices. CHAPTER SIX ââ¬â DESIGNING ORGANIZATIONS FOR THE INTERNATIONAL ENVIRONMENT Consortia: groups of firms that venture into new products and technologies ââ¬â Domestic stage: first stage of international development in which a company is domestically orientated while managers are aware of the global environment ââ¬â Economies of scale: achieving lower costs through large volume production, often made possible by global expansion ââ¬â Economies of scope: achieving economies by having a presence in many product lines, technologies or geographic areas ââ¬â Factors of production: supplies necessary for production e. g. raw materials, land, labor ââ¬â Global companies: no longer thinks of itself as having a home country â⠬â Global geographic structure: an organization divides its operation into world regions, each of which reports to the CEO ââ¬â Global matrix structure: A horizontal linkage in an international organization in which both product and geographical structures are implemented simultaneously to achieve a balance between standardization and globalization. ââ¬â Global product structure: product divisions take responsibility for global operations in their specific product areas ââ¬âGlobal stage: stage in international development in which the company transcends any one country ââ¬â Global teams: work groups comprising MNC members whose activities span in different countries (transnational teams) ââ¬â Globalization strategy: standardization of product design and advertising strategy throughout the world ââ¬â International division: equal in status to other major departments within the company and has its own hierarchy to handle business in various countries ââ¬â International stage: 2nd stage of international development where company takes exports seriously and is multidomestic ââ¬â Joint venture: separate entity of sharing developments and production costs and penetrating into a new market between two or more firms ââ¬â Multidomestic: company that responds to local customers and competition in each country independent of other countries ââ¬â Multidomestic strategy: competition in each country is handled independently of competition in other countries ââ¬â Multinational stage: stage of international development where a company has marketing and production facilities in many countries and more than one third of its sales outside its home country ââ¬â Power distance: level of inequality people are willing to accept within an organization ââ¬â Standardization: all branches of the company at all locations operate in the same way ââ¬â Transnational model: horizontal organization with multiple centers, subsidiary ma nagers who initiate strategy and innovations for the company as a whole, and unit and coordination achieved through corporate culture and shared vision and values ââ¬â Uncertainty avoidance: level of tolerance for and comfort within, uncertainty and individualism within a culture SLIDES ONLY ââ¬â Core competency (5,6) ââ¬â Diversification (7-11) PART FOUR: INTERNAL DESIGN ELEMENTS CHAPTER SEVEN ââ¬â MANUFACTURING AND SERVICE TECHNOLOGIES Analyzability: a dimension of technology in which work activities can be reduced to mechanical steps and participants can follow an objective, computational procedure to solve problems ââ¬â Continuous process production: completely mechanized manufacturing process with no sorting or stopping ââ¬â Core technology: work process directly related to the organization mission ââ¬â Craft technology: technology used for stable stream of activities where the conversion process is not well understood or analyzable ââ¬â Engineer ing technologies: technology used when there is a substantial variety in the tasks performed, but activities are handled on the basis of established formulas, procedures, and techniques ââ¬â Flexible manufacturing systems: using computers to link manufacturing components e. g. obots, machines, product design and engineering analysis to enable fast switching from one product to another ââ¬â Intensive technologies: variety of products or services provided in combination to a client ââ¬â Interdependence: the extent to which departments depend on each other for resources or materials to accomplish their tasks ââ¬â Job design: the assignment of goals and tasks to be completed my employees ââ¬â Job enlargement: the designing of jobs to expand the number of different tasks performed by an employee ââ¬â Job enrichment: the designing of jobs to increase responsibility, recognition and opportunities for growth and achievement ââ¬â Job rotation: moving employees fro m job to job to give them a greater variety of tasks and alleviate boredom ââ¬â Job simplification: the reduction of the number and difficulty of tasks performed by a single person ââ¬â Joint optimization: the goal of the sociotechnical system approach, which states that organization will function best only if its social and technical systems are designed to fit the needs of each other ââ¬â Large-batch production: manufacturing process with long production runs of standardized parts ââ¬â Lean manufacturing: uses highly trained employees at every stage of the production process who take painstaking approach to details and continuous problem solving to cut waste and improve quality ââ¬â Long-linked technology: the combination, within one organization, of successive stages of production, with each stage using as its inputs the production of the preceding stage ââ¬â Mass customization: the use of computer integrated systems and flexible work processes to enable c ompanies to mass produce a variety of products or services designed to exact customer specification ââ¬â Meditating technology: the provision of products or services that mediate or link clients from the external environment and allow each department to work independently ââ¬â Noncore technology: a department work process that is important to the organization but is not directly related to the central mission ââ¬â Nonroutine technologies: there is high tasks variety and the conversion process is not analyzable or well understood ââ¬â Pooled interdependence: the lowest form of interdependence among departments in which work does not flow between units ââ¬â Reciprocal interdependence: the highest level of interdependence in which the output of one operation is the input of the second, and then the output of the second operation is the input of the first. Routine technologies: technology thatââ¬â¢s characterized by little task variety and the use of objective, co mputational procedures ââ¬â Sequential interdependence: serial form of interdependence in which the output of one operation becomes the input of another operation ââ¬â Service technology: characterized by simultaneous production and consumption, customized output, customer participation, intangible output and being labour intensive ââ¬â Small-batch production: manufacturing process, often custom work that is not highly mechanized and relies heavily on the human operation ââ¬â Sociotechnical systems approach: combines the needs of people with the need for technical efficiency ââ¬â Task variety: the frequency of unexpected and novel events that occur in the conversion process ââ¬â Technical complexity: the extent of mechanization in the manufacturing process Technology: tools, techniques and actions used to transform organizational inputs into outputs SLIDES ONLY ââ¬â History of commercial technology (7) ââ¬â Historical context of technology ââ¬â Wo odward, Perrow, and Thompson (10-30) CHAPTER NINE ââ¬â ORGANIZATIONAL SIZE, LIFE CYCLE, AND DECLINE bureaucracy| An organizational framework marked by rules and procedures, specialization and division of labour, hierarchy of authority, technically qualified personnel, separation of position and person, and written communications and records (p. 30)| bureaucratic control| The use of rules, policies, hierarchy of authority, written documentation, standardization, and other bureaucratic mechanisms to standardize behaviour and assess performance (p. 336)| centralization| Level of hierarchy with authority to make decisions (p. 332)| charismatic authority| Based in devotion to the exemplary character or heroism of an individual and the order defined by him or her (p. 337)| clan control| The use of social characteristics, such as culture, shared values, commitments, traditions, and beliefs, to control behaviour (p. 338)| collectivity stage| The life-cycle phase in which an organization has strong leadership and begins to develop clear goals and direction (p. 24)| downsizing| Intentionally reducing the size of a companyââ¬â¢s workforce by laying off employees (p. 343)| elaboration stage| The organizational life-cycle phase in which the red-tape crisis is resolved through the development of a new sense of teamwork and collaboration (p. 326)| entrepreneurial stage| The life-cycle phase in which an organization is born and its emphasis is on creating a product and surviving in the marketplace (p. 324)| Formalization| The degree to which an organization has rules, procedures, and written documentation (p. 332)| formalization stage| The phase in an organizationââ¬â¢s life cycle involving the installation and use of rules, procedures, and control systems (p. 26)| incident command sytem| Developed to maintain the efficiency and control benefits of bureaucracy yet prevent the problems of slow response to crises (p. 334)| life cycle| A perspective on organizational g rowth and change that suggests that organizations are born, grow older, and eventually die (p. 323)| market control| A situation that occurs when price competition is used to evaluate the output and productivity of an organization (p. 337)| organizational decline| A condition in which a substantial, absolute decrease in an organizationââ¬â¢s resource base occurs over a period of time (p. 340)| personnel ratios| The proportions of administrative, clerical, and professional support staff (p. 32)| rational-legal authority| Based on employeesââ¬â¢ belief in the legality of rules and the right of those in authority to issue commands (p. 337)| self-control| A personââ¬â¢s values are brought into line with the organizationââ¬â¢s values to control behaviour (p. 339)| traditional authority| Based in the belief in traditions and the legitimacy of the status of people exercising authority through those traditions| SLIDES ONLY ââ¬â Organizational birth and early life (4,5) â⬠â Nandyââ¬â¢s Model (6-9) ââ¬â Genierââ¬â¢s Model (10, 11,18,19) PART FIVE: MANAGING DYNAMIC PROCESSES CHAPTER TEN ââ¬â ORGANIZATIONAL CULTURE AND ETHICAL VALUES adaptability culture| A culture characterized by strategic focus on the external environment through flexibility and change to meet customer needs (p. 60)| bureaucratic culture| A culture that has an internal focus and a consistency orientation for a stable environment (p. 363)| chief ethics officer| High-level executive who oversees all aspects of ethics, including establishing and broadly communicating ethical standards, setting up ethics training programs, supervising the investigation of ethical problems, and advising managers in the ethical aspects of decisions (p. 379)| clan culture| A culture that focuses primarily on the involvement and participation of the organizationââ¬â¢s members and on rapidly changing expectations from the external environment (p. 362)| code of ethics| A formal statement of the companyââ¬â¢s values concerning ethics and social responsibility (p. 80)| culture| The set of values, guiding beliefs, understandings, and ways of thinking that are shared by members of an organization and are taught to new members as correct (p. 356)| culture strength| The degree of agreement among members of an organization about the importance of specific values (p. 364)| ethical dilemma| When each alternative choice or behaviour seems undesirable because of a potentially negative ethical consequence (p. 372)| ethics| The code of moral principles and values that governs the behaviour of a person or group with respect to what is right or wrong (p. 369)| ethics committee| A group of executives appointed to oversee company ethics (p. 378)| ethics hotline| A telephone number that employees can call to seek guidance and to report questionable behaviour (p. 79)| external adaptation| The manner in which an organization meets goals and deals with outsiders (p. 357)| heroes| Organi zational members who serve as models or ideals for serving cultural norms and values (p. 359)| internal integration| A state in which organization members develop a collective identity and know how to work together effectively (p. 357)| language| Slogans, sayings, metaphors, or other expressions that convey a special meaning to employees (p. 359)| legends| Stories of events based in history that may have been embellished with fictional details (p. 359)| managerial ethics| Principles that guide the decisions and behaviours of managers with regard to whether they are morally right or wrong (p. 72)| mission culture| A culture that places emphasis on a clear vision of the organizationââ¬â¢s purpose and on the achievement of specific goals (p. 361)| myths| Stories that are consistent with the values and beliefs of the organization but are not supported by facts (p. 359)| rites and ceremonies| The elaborate, planned activities that make up a special event and often are conducted for th e benefit of an audience (p. 357)| rule of law| That which arises from a set of codified principles and regulations that describe how people are required to act, are generally accepted in society, and are enforceable in the courts (p. 371)| social audit| Measures and reports the ethical, social, and environmental impact of an organizationââ¬â¢s operations (p. 83)| social capital| The quality of interactions among people, affected by whether they share a common perspective (p. 355)| social responsibility| Managementââ¬â¢s obligation to make choices and take action so that the organization contributes to the welfare and interest of society as well as itself (p. 372)| stories| Narratives based on true events that are frequently shared among organizational employees and told to new employees to inform them about an organization (p. 359)| subcultures| Cultures that develop within an organization to reflect the common problems, goals, and experiences that members of a team, departme nt, or other unit share (p. 365)| symbol| Something that represents another thing (p. 59)| values-based leadership| A relationship between a leader and followers that is based on strongly shared values that are advocated and acted upon by the leader (p. 377)| whistle-blowing| Employee disclosure of illegal, immoral, or illegitimate practices on the part of the organizationââ¬â¢s officers and employees| SLIDES ONLY ââ¬â Deal and Kennedy ââ¬â Popular Typology of Organizational Culture (12,13) ââ¬â Utilitarian ethics model (27) ââ¬â Moral rights ethics model (28) ââ¬â Justice ethics model (29) ââ¬â Forces acting on managerââ¬â¢s ethics moment (30) CHAPTER ELEVEN ââ¬â INNOVATION AND CHANGE ambidextrous approach| A characteristic of an organization that can behave in both an organic and a mechanistic way (p. 402)| change process| The way in which planned changes occur in an organization (p. 99)| creative departments| Organizational departments that initi ate change, such as research and development, engineering, design, and systems analysis (p. 403)| creativity| The generation of novel ideas that may meet perceived needs or respond to opportunities (p. 399)| culture changes| Changes in the values, attitudes, expectations, beliefs, abilities, and behaviour of employees (p. 397)| dual-core approach| An organizational change perspective that identifies the unique processes associated with administrative change compared to those associated with technical change (p. 411)| horizontal coordination model| A model of the three components of organizational design needed to achieve new product innovation: departmental specialization, boundary spanning, and horizontal linkages (p. 07)| idea champions| Organizational members who provide the time and energy to make things happen; sometimes called advocates, intrapreneurs, and change agents (p. 404)| idea incubator| Safe harbour where ideas from employees throughout the organization can be develop ed without interference from bureaucracy or politics (p. 403)| incremental change| A series of continual progressions that maintains an organizationââ¬â¢s general equilibrium and often affects only one organizational part (p. 394)| large group intervention| An approach that brings together participants from all parts of the organization (and may include outside stakeholders as well) to discuss problems or opportunities and plan for change (p. 15)| management champion| A manager who acts as a supporter and sponsor of a technical champion to shield and promote an idea within the organization (p. 405)| new-venture fund| A fund that provides financial resources to employees to develop new ideas, products, or businesses (p. 404)| organization development| A behavioural science field devoted to improving performance through trust, open confrontation of problems, employee empowerment and participation, the design of meaningful work, cooperation between groups, and the full use of human potential (p. 415)| organizational change| The adoption of a new idea or behaviour by an organization (p. 98)| organizational innovation| The adoption of an idea or behaviour that is new to an organizationââ¬â¢s industry, market, or general environment (p. 398)| product and service changes| Changes in an organizationââ¬â¢s product or service outputs (p. 396)| radical change| A breaking of the frame of reference for an organization, often creating a new equilibrium because the entire organization is transformed (p. 394)| skunkworks| Separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business (p. 404)| strategy and structure changes| Changes in the administrative domain of an organization, including structure, policies, reward systems, labour relations, coordination devices, anagement information control systems, and accounting and budgeting (p. 396)| switching structures| An organization creates an organic structur e when such a structure is needed for the initiation of new ideas (p. 403)| team building| Activities that promote the idea that people who work together can work together as a team (p. 416)| technical champion| A person who generates or adopts and develops an idea for a technological innovation and is devoted to it, even to the extent of risking position or prestige; also called product champion (p. 405)| technology changes| Changes in an organizationââ¬â¢s production process, including its knowledge and skills base, that enable distinctive competence (p. 97)| time-based competition| Delivering products and services faster than competitors, giving companies a competitive edge (p. 409)| venture teams| A technique to foster creativity within organizations in which a small team is set up as its own company to pursue innovationsà | SLIDES ONLY ââ¬â Four Pââ¬â¢s (10) ââ¬â Leavittââ¬â¢s diamond (11) ââ¬â Triggers for change (12) ââ¬â Forces against change (13) ââ¬â Lewinââ¬â¢s three step change management (14) ââ¬â Change management five action steps (15-24) CHAPTER TWLEVE ââ¬â DECISION MAKING PROCESSES bounded rationality perspective| How decisions are made when time is limited, a large number of internal and external factors affect a decision, and the problem is ill-defined (p. 34)| Carnegie model| Organizational decision making involving many managers and a final choice based on a coalition among those managers (p. 445)| coalition| An alliance among several managers who agree through bargaining about organizational goals and problem priorities (p. 445)| contingency decision-making framework| A perspective that brings together the two organizational dimensions of problem consensus and technical knowledge about solutions (p. 458)| decision learning| A process of recognizing and admitting mistakes that allows managers and organizations to acquire the experience and knowledge to perform more effectively in the future (p. 62) | escalating commitment| Persisting in a course of action when it is failing; occurs because managers block or distort negative information and because consistency and persistence are valued in contemporary society (p. 463)| garbage can model| Model that describes the pattern or flow of multiple decisions within an organization (p. 453)| high-velocity environments| Industries in which competitive and technological change is so extreme that market data are either unavailable or obsolete, strategic windows open and shut quickly, and the cost of a decision error is company failure (p. 461)| imitation| The adoption of a decision tried elsewhere in the hope that it will work in the present situation (p. 60)| incremental decision process model| A model that describes the structured sequence of activities undertaken from the discovery of a problem to its solution (p. 447)| inspiration| An innovative, creative solution that is not reached by logical means (p. 460)| intuitive decision making | The use of experience and judgment, rather than sequential logic or explicit reasoning, to solve a problem (p. 439)| management science approach| Organizational decision making that is the analog to the rational approach by individual managers (p. 443)| nonprogrammed decisions| Novel and poorly defined, these are made when no procedure exists for solving the problem (p. 433)| organizational decision making| The organizational process of identifying and solving problems (p. 33)| organized anarchy| Extremely organic organizations characterized by highly uncertain conditions (p. 453)| pointââ¬âcounterpoint| A decision-making technique that divides decision makers into two groups and assigns them different, often competing, responsibilities (p. 462)| problem consensus| The agreement among managers about the nature of problems or opportunities and about which goals and outcomes to pursue (p. 457)| problem identification| The decision-making stage in which information about environm ental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings (p. 33)| problem solution| The decision-making stage in which alternative courses of action are considered and one alternative is selected and implemented (p. 433)| problemistic search| When managers look around in the immediate environment for a solution to resolve a problem quickly (p. 446)| programmed decisions| Repetitive and well-defined procedures that exist for resolving problems (p. 433)| rational approach| A process of decision making that stresses the need for systematic analysis of a problem followed by choice and implementation in a logical sequence (p. 434)| satisficing| The acceptance by organizations of a satisfactory rather than a maximum level of performance (p. 46)| technical knowledge| Understanding and agreement about how to solve problems and reach organizational goals (p. 458)| ââ¬â Organizational Learning: Single and Double -Loop Learning (Slide only) CHAPTER THIRTEEN ââ¬â CONFLICT, POWER, AND POLITICS authority| A force for achieving desired outcomes that is prescribed by the formal hierarchy and reporting relationships (p. 481)| centrality| A trait of a department whose role is in the primary activity of an organization (p. 488)| collective bargaining| The negotiation of an agreement between management and workers (p. 498)| competition| Rivalry between groups in the pursuit of a common prize (p. 75)| confrontation| A situation in which parties in conflict directly engage one another and try to work out their differences (p. 498)| coping with uncertainty| A source of power for a department that reduces uncertainty for other departments by obtaining prior information, prevention, and absorption (p. 489)| decision premises| Constraining frames of reference and guidelines placed by top managers on decisions made at lower levels (p. 483)| dependency| One aspect of horizontal power: when one department is dependent on another, the latter is in a position of greater power (p. 487)| domains of political activity| Areas in which politics plays a role.Three domains in organizations are structural change, management succession, and resource allocation (p. 491)| financial resources| Control over money is an important source of power within an organization (p. 488)| intergroup conflict| Behaviour that occurs between organizational groups when participants identify with one group and perceive that other groups may block their groupââ¬â¢s goal achievements or expectations (p. 475)| labour-management teams| Teams designed to increase worker participation and to provide a cooperative model for addressing unionââ¬âmanagement issues (p. 498)| negotiation| The bargaining process that often occurs during confrontation and enables the parties to systematically reach a solution (p. 98)| network centrality| Top managers increase their power by locating themselves centrally in an organizatio n and surrounding themselves with loyal subordinates (p. 484)| nonsubstitutability| A trait of a department whose function cannot be performed by other readily available resources (p. 489)| organizational politics| Activities to acquire, develop, and use power and other resources to obtain a preferred outcome when there is uncertainty or disagreement about choices (p. 490)| political model| A definition of an organization as being made up of groups that have separate interests, goals, and values in which power and influence are needed to reach decisions (p. 79)| political tactics for using power| These include building coalitions, expanding networks, controlling decision premises, enhancing legitimacy and expertise, and making a direct appeal (p. 494)| power| The ability of one person or department in an organization to influence others to bring about desired outcomes (p. 480)| power sources| There are five sources of horizontal power in organizations: dependency, financial resource s, centrality, nonsubstitutability, and the ability to cope with uncertainty (p. 487)| rational model| A description of an organization characterized by a rational approach to decision making, extensive and reliable information systems, central power, a norm of optimization, uniform values across groups, little conflict, and an efficiency orientation (p. 79)| sources of intergroup conflict| Factors that generate conflict, including goal incompatibility, differentiation, task interdependence, and limited resources (p. 476)| strategic contingencies| Events and activities inside and outside an organization that are essential for attaining organizational goals (p. 486)| tactics for enhancing collaboration| Techniques such as integration devices, confrontation and negotiation, intergroup consultation, member rotation, and shared mission and superordinate goals that enable groups to overcome differences and work together (p. 497)| tactics for increasing power| These include entering areas of high uncertainty, creating dependencies, providing resources, and satisfying strategic contingenciesà |
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