Chapter 11 Flashcards Preview

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Flashcards in Chapter 11 Deck (31):
1

concerns the organization,
coordination, and integration of how work gets done
• Key to gaining and sustaining a competitive advantage

STRATEGIC IMPLEMENTATION

2

Managers attempt to coordinate implementation efforts (work)
and motivate employees through ____

ORGANIZATIONAL DESIGN

3

____ is the process of creating, implementing,
monitoring, and modifying the structure, processes, and procedures of an
organization
• The goal is to allow managers to translate strategy into reality

ORGANIZATIONAL DESIGN

4

Implies that organizational design must be flexible enough to accommodate the
formulated strategy and future growth/expansion

STRUCTURE FOLLOWS STRATEGY

5

Three (3) levers of organizational design

Structure – determines how work efforts of individuals and teams are orchestrated
• Culture – shared norms and values of organizational members
• Control systems – internal governance mechanisms used to align incentives of
employees with owners

6

___ determines how the work
efforts of individuals and teams are orchestrated and how
resources are distributed

ORGANIZATIONAL STRUCTURE

7

Four (4) key elements of an organizational structure

• Specialization
• Formalization
• Centralization
• Hierarchy

8

describes the degree to which a task is divided into
separate jobs (i.e., degree of labor division)

SPECIALIZATION

9

captures the extent to which employee behavior is
steered by explicit and codified rules/procedures

FORMALIZATION

10

refers to the degree to which decision making is
concentrated at the top of the organization

CENTRALIZATION

11

determines the formal, position-based reporting lines and
stipulates who reports to whom

HIERARCHY

12

a firm’s
resistance to change the status quo

ORGANIZATIONAL INERTIA

13

the founder(s) tend to make all the
important decisions and run the day-to-day operations

SIMPLE STRUCTURE

14

groups employees into distinct
functional areas based on domain expertise

A FUNCTIONAL STRUCTURE

15

Drawbacks to functional structure

• Can lack effective communication channels between departments
• E.g., R&D manager may not effectively communicate with marketing,
misunderstanding the design changes that consumers demand
• Puts more pressure on CEO to coordinate effectively
• One remedy might be to set up temporary CROSS-FUNCTIONAL
TEAMS that include members from different functional areas
• Difficult to address a higher level of diversification, which often comes
from further growth
• Thus, managers may find it necessary to again restructure

16

consists of several distinct
strategic business units (SBUs)

The MULTIDIVISIONAL FORM

17

A MATRIX STRUCTURE

combines the M-FORM and FUNCTIONAL
structures
• Each SBU is organized under a single corporate office (M-form), but a second
layer of structure is provided by either:
• Geographic region (i.e., North America, South America, etc)
• Functional area (i.e., R&D, marketing, accounting, etc)
• Product/service offering (i.e., product/service 1, 2, 3, etc)
• Allows firms to gain benefits from M-form (i.e., domain expertise, economies
of scale, efficient information processing) with benefits of functional structure
(i.e., responsiveness and decentralized focus)

18

Drawbacks of a Matrix structure

Difficult to implement
• Reporting structures are not very clear (e.g., employees have >1 boss)
• Can slow decision-making and increase administrative costs

19

___ describes the collectively shared values and
norms of an organization’s members

ORGANIZATIONAL CULTURE

20

Employees learn and effect a firm’s culture through ___
whereby values and norms are internalized

SOCIALIZATION

21

Culture is expressed through ___

Artifacts

22

Artifacts

elements of the firm

23

Rules of conduct

written rules defining appropriate behavior

24

Vocabulary

the language, acronyms, jargon, slang, signs, slogans, songs, etc
that define the organization

25

Rituals

rites, ceremonies, and taboos

26

Myths and stories

—the history, saga, myths, and legends of the firm

27

FOUNDER IMPRINTING

the influence of the founder(s) on the definition and
shape of a firm’s culture

28

How does a culture change?

• Very difficult to change, especially over time, BUT CAN CHANGE WHEN:
• New leadership emerges
• Merger or acquisition

29

STRATEGIC CONTROL-AND-REWARD SYSTEMS

are internal
governance mechanisms put in place to align the incentives of
principals (owners) and agents (employees)

30

INPUT CONTROLS

seek to define and direct employee
behavior through a set of explicit, codified rules and standard
operating procedures

31

OUTPUT CONTROLS

seek to guide employee behavior by
defining expected results (outputs)