Chapter 11 Flashcards
(31 cards)
concerns the organization,
coordination, and integration of how work gets done
• Key to gaining and sustaining a competitive advantage
STRATEGIC IMPLEMENTATION
Managers attempt to coordinate implementation efforts (work)
and motivate employees through ____
ORGANIZATIONAL DESIGN
____ 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
Implies that organizational design must be flexible enough to accommodate the
formulated strategy and future growth/expansion
STRUCTURE FOLLOWS STRATEGY
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
___ determines how the work
efforts of individuals and teams are orchestrated and how
resources are distributed
ORGANIZATIONAL STRUCTURE
Four (4) key elements of an organizational structure
- Specialization
- Formalization
- Centralization
- Hierarchy
describes the degree to which a task is divided into separate jobs (i.e., degree of labor division)
SPECIALIZATION
captures the extent to which employee behavior is
steered by explicit and codified rules/procedures
FORMALIZATION
refers to the degree to which decision making is
concentrated at the top of the organization
CENTRALIZATION
determines the formal, position-based reporting lines and
stipulates who reports to whom
HIERARCHY
a firm’s
resistance to change the status quo
ORGANIZATIONAL INERTIA
the founder(s) tend to make all the important decisions and run the day-to-day operations
SIMPLE STRUCTURE
groups employees into distinct
functional areas based on domain expertise
A FUNCTIONAL STRUCTURE
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
consists of several distinct
strategic business units (SBUs)
The MULTIDIVISIONAL FORM
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)
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
___ describes the collectively shared values and
norms of an organization’s members
ORGANIZATIONAL CULTURE
Employees learn and effect a firm’s culture through ___
whereby values and norms are internalized
SOCIALIZATION
Culture is expressed through ___
Artifacts
Artifacts
elements of the firm
Rules of conduct
written rules defining appropriate behavior
Vocabulary
the language, acronyms, jargon, slang, signs, slogans, songs, etc
that define the organization
