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Flashcards in Final Deck (75):
1

characteristics of large organizations

economies of scale
global reach
vertical hierarchy
complex
stable markets
provide longevity, raises, and promotions

2

characteristics of small organizations

responsive, flexible
regional reach
flat structure, organic
simple
niche finding
entrepreneurs

3

big company/small company hybrid

combines large corporation's resources and reach with a small company's simplicity and flexibility

4

4 stages of organization life cycle

1. entrepreneurial stage
2. collectivity stage
3. formalization stage
4. elaboration stage

5

entrepreneurial stage

emphasis is on creating a product and surviving in the marketplace

crisis: need for leadership - must adjust structure to accommodate growth or bring in strong managers

6

collectivity stage

strong leadership and begins to develop clear goals and direction

crisis: need for delegation - top managers don't want to give up responsibility to lower level managers

7

formalization stage

installation of rules, procedures, control systems

crisis: too much red tape - need to eliminate unnecessary red tape

8

elaboration stage

collaboration and teamwork

crisis: need for revitalization - may enter periods of temporary decline, top managers often are replaced

9

6 characteristics of bureaucracy

1. rules and procedures
2. specialization and division of labour
3. hierarchy of authority
4. technically qualified personnel
5. separation of position and incumbent
6. written communications and records

10

incident command system (ICS)

developed to maintain the efficiency and control benefits of bureaucracy yet prevent the problems of slow response to crises

11

3 types of organizational control strategies

1. bureaucratic control
2. market control
3. clan control

12

bureaucratic control

formal control mechanisms to control employee behaviour

13

3 types of authority that explains the creation and control of large organizations

1. rational-legal authority (most corporations)
2. traditional authority (monarchies)
3. charismatic authority (steve jobs)

14

market control

price competition is used to evaluate the output and productivity of an organization

15

clan control

use of social characteristics (corporate culture, shared values, commitments, traditions, and beliefs) to control behaviour

16

organizational decline

associated with environmental decline in the sense that an organizational domain experiences either a reduction in size or shape

17

3 factors causing organizational decline

1. organizational atrophy
2. vulnerability
3. environmental decline or competition

18

organizational atrophy

organizations grow older and become inefficient and overly bereaucratized

19

vulnerability

small organizations that aren't fully established are vulnerable to shifts in consumer tastes

20

environmental decline or competition

reduced resources available to support an organization

21

5 stages of decline

1. blinded
2. inaction
3. faulty action
4. crisis
5. dissolution

22

blinded stage

change that threatens long term survival

solution: develop effective scanning and control systems

23

inaction stage

denial despite signs of deterioration

solution: leader must acknowledge and take action

24

faulty action stage

failure to adjust can result in failure, leaders forced to consider major changes

solution: retrenchment, downsizing, clarification

25

crisis stage

chaos, efforts to go back to basics, sharp changes

solution: major reorganization, severe downsizing

26

dissolution stage

decline is irreversible

solution: close down organization and reduce separation trauma of employees

27

3 techniques to smooth downsizing process

1. communicate more
2. provide assistance to displaced workers
3. help survivors thrive

28

incremental change

series of continual progressions that maintain an organizations' general equilibrium and often affect only one organizational part

29

radical change

transform entire organization (ex. shifting entire organization from a vertical to horizontal structure)

30

4 strategic types of changes

1. technology change
2. product and service changes
3. strategy and structure changes
4. culture changes

31

5 elements for successful change

1. ideas
2. need
3. adoption
4. implementation
5. resources

32

4 techniques to create an ambidextrous organization - technological change

1. switching structures - creating an organic structure for the initiation of new ideas
2. creative departments - initiate change, idea incubator
3. venture teams - small team set up as its own company to pursue innovations
4. corporate entrepreneurship - develop an internal entrepreneurial sprit that will product higher number of innovations

33

skunkworks

separate, small, informal, highly autonomous that focuses on breakthrough ideas for the business

34

new-venture fund

provides resources for employees to develop new ideas, products, or business

35

2 types of idea champions

1. technical champion - generates idea and is devoted to it
2. management champion - supporter of technical champion to promote new idea

36

horizontal coordination model - product change

3 components of organizational design needed to achieve new product innovation

1. specialization
2. boundary spanning
3. horizontal coordination

37

dual-core approach - strategy/structure change

identifies the unique processes associated with administrative change compared to those associated with technical change

org. must adopt frequent administrative changes and need to be structured differently than organizations that rely on frequent technical changes

38

3 forces for culture change

1. reengineering and horizontal organizing
2. diversity
3. the learning organization

39

organization development (OD)

attempts fundamental changes to improve organizational adaptability

e.g.
large group intervention
team building
interdepartmental activities

40

4 stages of commitment to change

1. preparation
2. acceptance
3. commitment - installation
4. institutionalization - stabilizing the change

41

5 barriers to change

1. excessive focus on costs
2. failure to perceive benefits
3. lack of coordination and cooperation
4. uncertainty avoidance
5. fear of loss

42

7 techniques for change implementation

1. establish a sense of urgency for change
2. establish a coalition to guide the change
3. create a vision and strategy for change
4. find an idea that fits the need
5. develop plans to overcome resistance to change
6. create change teams
7. foster idea champions

43

3 motivations for global expansion

economies of scale
economies of scope
low-cost production factors

44

4 stages of international development

1. domestic
2. international
3. multinational
4. global

45

consortia

groups of firms that venture into new products and technologies

46

globalization strategy

standardization of product design and advertising strategy throughout the world

47

multidomestic strategy

competition in each country is handled independently of other countries

48

international division

a division that is equal in status to other major departments

49

global product division structure

product divisions take responsibility for global operations in their specific product areas

division handles products that are technologically similar and can be standardizes for marketing worldwide

50

global geographic division structure

organization divides its operations into world regions, each reporting to the CEO

mature product lines and stable technologies

51

global matrix structure

both product and geographical structures are implemented to achieve a balance between standardization and globalization

52

transnational teams

work groups made up of multinational members whose activities span multiple countries

53

4 characteristics of transnational teams

1. assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships

2. structures are flexible and ever-changing

3. subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole

4. unification and coordination are achieved primarily through corporate culture, shared vision and values, and management system, rather than through formal structures and systems

54

3 global coordination mechanisms

1. global teams - work groups made up of multinational members whose activities span multiple countries

2. headquarters planning - hq takes active role in planning to keep pieces moving together in the same direction

3. expanded coordination roles - specific organizational roles for coordination to integrate all pieces

55

programmed decisions

repetitive and well defined, and procedures exist for resolving the problem

56

nonprogrammed devisions

novel, ill structured, and poorly defined, and no procedure exists for solving the problem

57

rational approach

ideal method for how managers should make decisions

58

bounded rationality perspective

how decisions actually have to be made under severe time and resource constraints

59

4 types of organizational decision making processes

1. management science
2. carnegie model
3. incremental decision process mode
4. garbage can model

60

management science approach to decision making

- use of statistics to identify relevant variables
- removed human element
- military decisions

61

carnegie model

- final decision is based on a coalition among managers

- decisions made to satisfice rather than to optimize

62

incremental decision process model

- tells more about the structured sequence of activities undertaken from the discovery of a problem to its solution

- 3 major decision phases: identification, development, and selection

63

2 main decision making methods of a learning organization

1. combining carnegie and incremental decision process models

2. garbage can model

64

garbage can model

- pattern or flow of multiple decisions
- think of whole organization

65

4 consequences of garbage can model

1. solutions may be proposed even when problems do not exist
2. choices are made without solving problems
3. problems may persist without being solved
4. few problems are solved

66

2 characteristics of organizations that determine the use of decision approachs

1. problem consensus - agreement among managers about the nature of a problem
2. technical knowledge - understanding about how to solve problems and reach organizational goals

67

rule of law

set of codified principles that describe how people are required to act

68

values-based leadership

relationship between a leader and followers that is based on shared, strongly internalized values that are advocated and acted upon by the leader

69

formal structure and systems

- structure (ethics committee, chief ethics officer)
- disclosure mechanisms (whistleblower policy)
- code of ethics
- training programs

70

NEVL

response to unfavourable conditions

neglect
exit
voice
loyalty

71

3 views of business-society-nature

1. disparate - business takes priority (narrow scan)
2. intertwined - all equally important (broad scan)
3. embedded - nature, society, then business (broad scan)

72

cooperatives

- owned/operated by and for members

- democratically controlled

73

social enterprise

application of entrepreneurial business skills to the creation of an enterprise whose primary purpose is to solve social and environmental problems

74

b corps

benefit corporations

gives legal permission and protection to officers and directors to consider all stakeholders, not just shareholders

additional rights for shareholders to hold directors and officers accountable to these interests

75

cic

community interest companies

- community purpose
- cap on ROI
- restrictions on asset transfer
- asset lock
- community interest report