MGMT 7-9

Interorganizational Process

A collection of activities that take place among companies to transform inputs into outputs that customers value

Design Iteration

A cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype

S-curve Pattern of Innovation

A pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits

Incremental Change Phase of the Technology Cycle

A phase in which companies innovate by lowering the cost and improving the functioning and performance of the dominant design

Virtual Organizations

An organization that is a part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services

Modular Organizations

An organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

Organic Organization

Characterized by broadly defined jobs and responsibilites; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge

Mechanic Organization

Characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication

Franchise

Collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee

Organizational development

Collection of planned change interventions designed to improve an organization long-term health and performance

Multinational Companies

Corporations that own businesses in two or more countries

Wholly owned Affiliate

Foreign offices, facilities and manufacturing plants that are 100% owned by the patent company

Reengineering

Fundamental rethinking and radical design of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed

- Power Distance - Individualism - Masculinity/ Femininity - Uncertainty avoidance - Short-term/long-term orientation

How do cultures differ? (5)

Geographic Departmentalization

Organizing work and workers into separate units responsible for doing business in particular geographic areas

Functional Departmentalization

Organizing work and workers into separate units responsible for particular business functions or areas of expertise

Customer Departmentalization

Organizing work and workers into separate units responsible for particular kinds of customers

Product Departmentalization

Organizing work and workers into separate units responsible for producing particular products or services

Empowerment

Permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources that they need to make and carry out good decisions

Policy Uncertainty

Risk associated with changes in laws and government

Political Uncertainty

Risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest and other influential events

Exporting

Selling domestically made products to foreign markets

Standardization

Solving problems by consistently applying the same rules, procedures, and processes

Goals of the Compression Approach

Squeeze or compress development time as much as possible, and the general strategy is to create a series of planned steps to accomplish this goal

Departmentalization

Subdividing work and workers into separate organizational units responsible for completing particular tasks

Regional Trading Zones

Tariff and non-tariff barriers are reduced or eliminated for countries within the trading zone

Intraorganizational Process

The collection of activities that take place within an organization to transform inputs into outputs that customers value

Staff Authority

The right to advise but not command others who are not subordinates in the chain of command

Line Authority

The right to command immediate subordinates in the chain of command

Organizational Structure

The vertical and horizontal configuration of departments, authority, and jobs within a company

Develops employee capabilities throughout the company and leads to faster decision making and more satisfied customers and employees, a study showed that companies with a higher degree outperformed those with a lower degree in terms of return on assets, investment, equity, and return on sales

What are some advantages to decentralization?

Skill Variety Task Identity Task Significance Autonomy Feedback

What are the Five Core Job Characteristics?

1. Challenging Work 2. Organizational encouragement 3. Supervisory encouragement 4. Work group encouragement 5. Freedom 6. Lack of organizational impediments

What are the components of a creative work environment? (6)

-education and communication -participation -negotiation -top-management support -coercion

What are the methods for managing resistance change?

Self-interest, misunderstanding and distrust, and a general intolerance for change

What are the sources of resistance to change?

Avoidance Strategy, Control, and Cooperation

What are the three methods for dealing with political risks?

-Job Rotation- attempts to overcome the disadvantages of job specialization by periodically moving workers from one job to another Enlargement- increases the number of different tasks that a worker performs within one particular job -Enrichment- attempts to overcome the deficiencies in specialized work by increasing the number of tasks and by giving workers the authority and control to make meaningful decisions about their work

What are the three methods used to improve specialized jobs?

-Unfreezing -Change -Refreezing

What are the three steps in the basic process of managing organizational change outlined by Kurt Lewin?

Purchasing Power and Foreign Competitors

What are the two factors that help companies determine the growth potential of foreign markets?

Political Uncertainty and Policy Uncertainty

What are the two types of political risks?

Pooled, Sequential, Reciprocal

What are the types of Task Interdependence?

The status quo; the existing conditions in an organization

What do resistance forces support?

General Agreement on Tariffs and Trade

What does GATT stand for

Unity of command- workers should report to just one boss

What is one of the key assumptions underlying the chain of command?

Entry

What is the first step for an organizational intervention?

Joint Venture- when two existing companies collaborate to form a third company

What is the most common strategic alliance called?

Stay centralized where standardization is important and to decentralize where standardization is unimportant

What is the one rule of thumb for determining when to be centralized versus decentralized?

Being so easy to learn, they get bored quickly

What is the primary disadvantage to job Specialization?

It can reduce the uncertainty that expatriates feel, the misunderstandings that take place between expatriates and natives, and the inappropriate behaviors that expatriates unknowingly commit when they travel to a foreign country

What is the purpose of pre-departure language and cross-cultural training?

Government imposed regulations that increase the cost and restrict the number of imported goods, trying to protect American businesses

What is the purpose of trade barriers?

large systems, small groups, or people

What type of people does organizational development aim to change?

Global Consistency

When a company has many company offices, plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures, to adapt to differences in foreign customers, governments, and regulatory agencies

Local Adaption

When a multinational company modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies

Coercion

Which method for managing resistance change should only be used as a last resort or under crisis conditions?

Matrix Organization

Which type of departmentalization violates the unity of command principle?

Compression Approach to Innovation

assumes that innovation is a predictable process, that incremental innovation can be planned using a series of steps, and that compressing the time it takes to complete those steps can speed up innovation

Experimental Approach to Innovation

assumes that innovation is occurring within a highly uncertain environment and that the key to fast production innovation is to use institution, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding

Technology Cycles

begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology

Change Agent

clarifies the problem, gathers information, works with decision makers to create and implement an action plan, helps to evaluate the plan's effectiveness, implements the plan throughout the company, and then leaves (if from outside the company) after making sure the change intervention will continue to work

Licensing

domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce its product, or sell its service, or use its brand name in a particular foreign market

Innovation Stream

patterns of innovation over time that can create sustainable competitive advantage

Global Business

the buying and selling of goods and services by people from different countries

Organizational Processes

the collection of activities that transform inputs into outputs that customers value

Change Agent

the person formally in charge of guiding a change effort

Organizational Innovation

the successful implementation of creative ideas in organizations