TEIO32 Organization

What are the pros and cons with global expansion?

+ Finding new markets, reach more customers + Diversify assets + Access new talent + Cheap labor - Differentiation (all markets are not equal) - Harder to coordinate - Hard to transfer knowledge

What are the strengths of outsourcing? (virtual network)

+ world wide talents and resources + big scale and reach without huge investments + highly flexible + low administrative cost

What are the three key components of organizational structure?

- Formal reporting relationships - Grouping of individuals into departments and of departments into the total organization - Design of systems to ensure effective communication and collaboration

What are the weaknesses of outsourcing? (virtual network)

- managers have low control - time consuming to manage relationships - employee loyalty and culture may be weak - risk of organizational failure

What are Porter's competitive strategies?

1. Low cost leadership - lower costs than competitors 2. Differentiation - attempting to make products that stands out from others in the industry 3. Focus - focusing on a specific market and understanding the needs

What are the four principles of scientific management?

1. Replace inexact methods for determining each element of a workers job with scientific determination 2. Scientific selection and training of workers 3. Cooperation of management and labor to accomplish work objectives, in accordance with the scientific method 4. More equal division of responsibility between managers and workers.

What are the three conditions to matrix structure?

1. Share resources across product lines 2. Two or more critical outputs required (products, technical knowledge) 3. Environment is complex and uncertain

What are the three aspects of determining culture?

1. The general relationship between the employees and the organization 2. The hierarchical system of authority that defines the roles of managers and subordinates 3. The general views that employees holds about the business purpose, destiny, goals and their places in them

What is a strategy?

A plan for interaction with competitive environment.

What is an organization?

A social entity that is goal directed, designed as deliberately structured and coordinated activity system and linked to the external environment.

What is the difference between a traditional and a learning organization?

A traditional organization design emphasizes vertical communication and control A learning organization design emphasizes communication and collaboration

What might a dysfunctional culture do?

Act as an barrier to change Act as an barrier to diversity Make it hard to put two organizations together

Describe 4 culture types

Adaptability - focus on the external environment to be felxible and quickly adapt to customer needs Mission - emphasizes to have a clear vision of the organizations mission, purpose and goals Clan - focus on the involvement and participation of employees and on external expectation Bureaucratic - internal focus and a consistent orientation to keep a stable environment

What is structural alignment?

Aligning the structure with the organizations goals

What are the strengths of a functional structure?

Allows economies of scale Allows in-depth knowledge and skill development Enables to accomplish functional goals

What is a mission statement?

Answers the question: What does the organization do? Describes mission and goals Business scope A mission statement is used to communicate with stakeholders

What is a stakeholder?

Any group that has a stake in the organizations performance

What are some underlying values?

Assumptions Beliefs Attitudes Feelings

What is stakeholders approach?

Balancing the needs of groups in and outside the organization that has a stake in the organizations performance

What is a learning organization?

Based on equality, open information, little hierarchy and a culture that encourages adaptability and participation

What are the cultures internal functions?

Boundary defining Gives a sense of identity Commitment to something larger than ones individual self interest Social glue that helps hold the organization together Shapes attitudes and behavior of employees

What are some observable symbols?

Ceremonies Stories Slogan Behaviour Dresscode Physical setting

Name some characteristics of culture

Culture is shared Culture helps members to solve problems Culture is taught to newcomers Culture strongly influences behaviour

How does Henry Mintzberg describe culture?

Culture is the soul of the organization, the beliefs and values and how they are manifested. I think of the structure as the skeleton, flesh and blood and the culture is what holds the thing together and gives it life force.

How does Richard Daft describe culture?

Culture is the values, norms and guiding beliefs that are shared by the members of the organization. Taught as the correct way to think, feel and behave.

What might bad structural alignment lead to?

Delayed decision making Lacking quality Organization might not respond to changes Employee performance might decline Conflicts in the organization

What are the weaknesses of a matrix structure?

Dual authority - might be confusing Time consuming Needs common understanding Needs much effort to maintain power balance

What is effectiveness?

Effectiveness refers to what degree an organization achieves it's goals

What is efficiency?

Efficiency refers to the amount of resources used to achieve the organizations goals

What are the strengths of a horizontal structure?

Flexibility Rapid changes Focus on the production and teamwork Employees lacking responsibility

What are some _structural_ dimensions of organization design?

Formalization, specialization, hierarchy of authority, centralization, professionalism, personnel ratios

Name some current challenges for organizations today

Globalization, speed or responsiveness, diversity, the digital workspace

What are the strengths of a matrix structure?

Good communication Flexible sharing of manpower Functional and product skill development Good for medium-sized organizations with multiple products

What are the weaknesses of a horizontal structure?

Hard to determine the core process Traditional managers may not give up their authority Can limit in-depth skill development

Name some vertical organization information sharing characteristics.

Hierarchical Rules enabling employees to be coordinated Plans providing standing information for employees (ex. budget) Vertical information systems is a strategy for increasing vertical information capacity such as reports

Name some horizontal organization information sharing characteristics.

Information systems enable information exchange throughout the organization Direct contact Task forces - temporary teams with a representative from each department Full time integrator for coordination between groups Teams is the strongest linkage

What is contemporary organization design?

It is not top-down hierarchy but more authority to the workers that can decide things without approval. More satisfied workers, increased productivity -> off-loading for managers

What is organizational design used for?

It is used to implement goals and strategy thereby it influences the conditions for success and achieving the organizations purpose. Organizational design is a political process

What are the weaknesses of a divisional structure?

No economies of scale Poor coordination between product lines Makes standardization across product lines difficult

Explain two perspectives on organizations: (hint: open, closed)

Open system organization - pays attention to the open boundary between the organization and it's context Closed system organization - focuses on the organization without considering dependence upon or capacity to influence elements compromising it's context

What is organizational environment?

Organizational environment is defined as all elements that exists outside the boundary of the organization and has the potential to affect the organization

What is strategic intent?

Organizations resources are directed toward a focused goal

Name some major stakeholders

Owners - wants financial return Employees - wants to be payed and be satisfied with their job Customer - wants good quality Managers - wants efficiency

What is a divisional structure?

President Electronics Mechanics R&D Manufacturing R&D Manufacturing

What is a functional structure?

President R&D Manufacturing Marketing Electronics, ..., ...

What are Miles and Snow's strategy typology?

Prospector - Learning organization, flexible, decentralized, risk taking, innovation Defender - Efficiency orientation, centralized, tight costs Analyser - Balance between learning organization and efficiency Reactor - Catch up with the market, reactive response

What are operative goals?

Relates to the key tasks of the organization. They are well-defined. Operative goals motivates employees

Namne three key indicators of organization design

Required work activities Reporting relationships Departmental grouping options

Name some learning organization characteristics.

Shared tasks Relaxed hierarchy Few rules Horizontal face-to-face communication Decentralized decision making

What are some _contextual_ dimensions of organization design?

Size of the organization, goal and strategy, culture, environment, organizational technology

What are the weaknesses of a functional structure?

Slow response time May cause decisions to pile on top (hierarchy overload) Poor horizontal coordination Less innovations Restricted view of goals

Name some vertical organization characteristics.

Specialized tasks Strict hierarchy Many rules Vertical communication and reporting systems Few teams and task forces Centralized decision making

What are the strengths of a divisional structure?

Suited for fast change Customer satisfaction High coordination Good for large organizations with several products Decentralized decision making

Describe the types of environments

Task environment - Sectors that the organization interacts with and have a direct impact (market, raw material, HR, industries) General environment - Sectors that might not have a direct impact daily but will affect it indirectly (government, economics, tech)

What is organic environment?

Tasks are adjusted through teamwork Less hierarchy Horizontal communication

What is mechanistic environment?

Tasks are specialized Strict hierarchy Vertical communication

What is a horizontal structure?

Teams are the basis of the organization Teams have authority to make decisions Can increase an organizations flexibility The culture promotes openess, trust and collaboration

What is the definition of culture?

The pattern of shared beliefs, values and assumptions considered to be the appropriate way to think and act within an organization

What is scientific management?

To achieve production efficiencies by systemizing and standardizing jobs to achieve the "one best way"

On how many levels do culture exists and which ones?

Two, observable symbols and underlying values