443 final exam

Understand the two dimensions of uncertainty, 1 dynamism and 2 complexity

1 Extent to which the environment is unstable or stable. Greatest impact on uncertainty. 2. Diversity and number of external elements in environment.

six structural tools that help reduce complexity and dynamism:

1. Adding positions and departments 2. Building relationships with suppliers and customers 3.Developing business intelligence 4.Differentiation and integration 5.Organic vs. mechanistic structures 6. Planning, forecasting, and responsiveness

4 types of organizational culture

1. Clan oriented cultures are family-like, with a focus on mentoring, nurturing, and "doing things together." 2. Adhocracy oriented cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and "doing things first." 3. Market oriented cultures are results oriented, with a focus on competition, achievement, and "getting the job done." 4. Hierarchy oriented cultures are structured and controlled, with a focus on efficiency, stability and "doing things right."

Know the four theories in your text that explain the relations between organizations: 1. Resource Dependence 2. Collaborative networks 3. Population Ecology 4. Institutionalism

1. a situation in which organizations depend on the environment but strive to acquire control over resources to minimize their dependence 2. a perspective whereby organizations join together to become more competitive and to share scarce resources to increase value and productivity for all 3. focuses on organizational diversity and adaptation within a population of organizations. 4. Organizations adopt structures and methods that mirror those of other organizations to be perceived as legitimate

1. economies of scale 2. Economies of scope

1. achieving lower costs through large volume production; often made possible by global expansion. 2. achieving economies by having a presence in many product lines, technologies, or geographic areas.

Know the mechanisms that can be used to improve global coordination: 1. Transnational Teams 2. Headquarters Planning 3. Expanded Coordination roles

1. global teams cross-border work groups made up of multiskilled, multinational members whose activities span multiple countries 2. headquarters to take an active role in planning, scheduling, and control to keep the widely distributed pieces of the global organization working together and moving in the same direction. 3. Creating specific organizational roles or positions for coordination is a way to integrate all the pieces of the enterprise to achieve a strong competitive position

Collaborative Networks

Greater influence of and reliance upon business partners

population ecology

Established organizations tend to adapt slowly bc they use their old models new organizations come into the market with new plans and ideas

Global Matrix Structure

HIGH GLOBAL UNIFORMITY, HIGH LOCAL RESPONSIVENESS organizational structure that splits the chain of command between product and area divisions

TRANSNATIONAL ORGANIZATION

High complexity (differentiation) and heavy use of coordination mechanisms (integration).

The framework to asses levels of uncertainty

High moderate. (fashion companies) High (airline) Low. (soft Drinks) Low moderate (universities)

Know different organizational structures that can be used by an organization that operates in an international environment

Domestic organization with international division Global product division Global geographic division Global Matrix Transnational

Which of the two dimensions, complexity or dynamism, has a higher impact on an environment's level of uncertainty?

Dynamism because it can't be predicted.

Resource dependence

To be successful, organizations must reduce environmental uncertainty and dependence by building their autonomy and power over others. Ex: merger gives

Be ready to explain current tendencies by which the largest organizations are becoming larger to gain a competitive advantage.

To stop growing is to stagnate. To be stable means that customers may not have their demands fully met or that competitors will increase market share at the expense of your company. Firms must grow to stay economically healthy.

Be ready to discuss the motivations that organizations have to expand globally:

economies of scale Economies of scope Low cost production factors

Be ready to discuss the ways in which organizational expansion affect the structure of organizations:

o Increased complexity and need for differentiation→ o Higher need for coordination (integration)→ o More challenging transfer of knowledge and innovation

Interorganizational relationships

are resource transactions, flows, and linkages that occur among organizations.

The organizational ecosystem

reflects the relationships within a community of organizations.

economies of scope

the ability to use one resource to provide many different products and services

Define corporate social responsibility

voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders

Are dynamism and complexity correlated? If so, how?

▪ Dynamism. Extent to which the environment is unstable. - Complexity. Diversity and number of external elements in environment.

○ bureaucratic control 1. Clan Control 2. Self Control

○ bureaucratic control→ is the use of rules, policies, hierarchy of authority, written documentation, standardization, and other bureaucratic mechanisms to standardize behavior and assess performance. ○ clan control→ is the use of social characteristics, such as shared values, commitment, traditions, and beliefs, to control behavior. self-control→is similar to clan control, but whereas clan control is a function of being socialized into a group, self-control stems from individual values, goals, and standards.

Be ready to explain how Netflix is addressing the problems of complexity that emerge with large organizational size.

● Netflix grows but puts more scrutiny under its hiring process Increase talent diversity faster than complexity grows so they can continue to run informally in order to attract creativity and self discipline.

Crises for the 4 stages of growth and development

1. Entrepreneur: Crisis: Need for leadership. As the organization starts to grow, the larger number of employees causes problems 2. Collectivity: Crisis: Need for delegation. If the new management has been successful, lower-level employees gradually find themselves restricted by the strong top down leadership 3. Formalization: Too much red tape. 4. Elaboration: Crisis: Need for revitalization. After the organization reaches maturity, it may enter periods of temporary decline.

Be familiar with the four stages of organizational growth and maturity:

1. Entrepreneurial stage→ the life cycle stage in which an organization is born and its emphasis is on creating a product and surviving in the marketplace.(Self-control) 2. Collectivity stage→ the life cycle phase in which an organization has strong leadership and begins to develop clear goals and direction. (Clan-control) 3.Formalization stage→ the life cycle stage that involves the installation and use of rules, procedures, and control systems. *employees are empowered* 4. Elaboration stage→ a mature stage of the life cycle in which a red tape crisis is resolved through the development of a new sense of teamwork and collaboration.

4. Supply sourcing 5. Trade association 6. Board Interlock

4. Sourcing is the location, acquisition and management of all the vital inputs required for an organisation to operate. 5. is an organization founded and funded by businesses that operate in a specific industry. 6. refers to the practice of members of a corporate board of directors serving on the boards of multiple corporations

institutionalism

Organizations adopt structures and methods that mirror those of other organizations to be perceived as legitimate (desirable, proper, appropriate).

o Are dynamism and complexity correlated? If so, how?

Yes. As the environment becomes more complex, events become less stable, financial resources become less available, and level of uncertainty increases.

6 structural tools to help reduce complexity and dynamism

- Adding positions and departments: to develop greater depth and knowledge - Building relationships: close communication - Differentiation: involves the specialization of functional departments (marketing, HR, legal...) to gain depth in that functional knowledge. - Integration: involves greater horizontal coordination - horizontal linkages. - Organic vs Mechanistic Structures ▪ Organic structures facilitate a flexible adaptation to unstable environments. - Planning, Forecasting, and Responsiveness ▪ In-depth departmental knowledge and integration across departments

Compare and contrast resource dependence and collaborative networks:

- Resource dependence is every man from themselves when it comes to collecting scarce resources. Collaborative networks is coming together and helping each other with processes and the collection of scarce resources.

1. An environment of High Uncertainty has what level of complexity and dynamism? 2. An environment of High-Moderate Uncertainty has what level of complexity and dynamism? 3. An environment of Low Uncertainty has what level of complexity and dynamism? 4. An environment of Low-Moderate Uncertainty has what level of complexity and dynamism?

1. High Dynamism, High Complexity 2. High Dynamism, Low Complexity 3. Low dynamism, low complexity 4. Low Dynamism, High Complexity

Know the various parts of the environment that affect an organization: 1. Task Environment 2. General Environment 3. Domain 4. Sectors

1. sectors with which the organization interacts directly and that have a direct impact on the organization's ability to achieve its goals. 2. those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it. 3. the chosen environmental field of action; the territory an organization stakes out for itself with respect to products, services, and markets served 4. subdivisions of the external environment that contain similar elements

1 - Mergers and Acquisitions 2. Joint venture 3. Strategic Alliance

1. the consolidation of companies or assets 2. is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task 3. is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project

1. interorganizational relationships 2. organization's ecosystem

1. two or more companies working together 2. An organizational ecosystem is a system formed by the interaction of a community of organizations and their environment

Explain the relationship between culture and performance

A strong culture produces employees with a well-tuned sense of direction and helps create common definitions of success, so your company can grow as a team.

Understand the advantages and disadvantages of large organizations.

Pros: Ecs. of scale, scope, Less vulnerable to economic downturns, Access to resources, Can take greater risks. Cons: Rigid to changes in the environment, Less adaptive to customer needs, Lower innovation More specialized, less empowered jobs, less employee commitment

Identify some sources of ethical values and principles

Religion Law culture profitability

Be ready to explain how the growth of an organizational size affects the organizational structure. Does it need to be more or less complex? Does it need to be more mechanistic or organic? Be ready to answer these questions and explain why.

Start off Organic, move into mechanistic and taller hierarchies and centralized

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

Know the various solutions to the problems of bureaucracy that emerge with large size. Be ready to discuss characteristics of each of these structures and how they allow the organization to prevent problems of red tape in organizations:

o Multi-divisional form→ refers to an organizational structure by which the firm is ++separated into several semi autonomous units which are guided and controlled by (financial) targets from the center. o Diversified conglomerate→ (breaking up comps into separate pieces under one name) Conglomerate diversification is growth strategy that involves adding new products or services that are significantly different from the organization's present products or services. o Incident command system→is a management system designed to enable effective and efficient domestic incident management by integrating a combination of facilities, equipment, personnel, procedures, and communications operating within a common organizational structure. o Holacracy→ is a method of decentralized management in which authority and decision-making are distributed throughout a holarchy of self-organizing teams rather than being vested in a management hierarchy.

Be ready to explain the ways in which the changing nature of relationships is affecting the organizational structure:

o Need for greater horizontal coordination through the use of boundary spanning roles. o Need to generate collaborative management roles based on communication and trust rather than authority