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