Week 2 Organizational Environment, Structure, and Change

Kotter's 8 step model of organizational change

1. establish a sense of urgency for change 2. form a guiding coalition to lead change 3. create new vision and strategy 4. communicate the vision and strategy 5. empower others to act, encourage risk taking, and creative problem solving 6. plan for, create, and reward short term wins 7. consolidate wins and improvements, assess and adjust as necessary 8. reinforce the change with new org structure and cultural climate`

Horizontal organizational strructures

A "flatter" organizational structure often found in matrix organizations where individuals relish the breath and development that their team offers.

organization-level change

A change that affects an entire organizational system or several of its units.

strategic change

A change, either incremental or transformational, that helps align an organization's operations with its strategic mission and objectives.

formal organization

A fixed set of rules of organizational procedures and structures.

Networked-team structure

A form of the horizontal organization.

flat organization

A horizontal organizational structure in which many individuals across the whole system are empowered to make organizational decisions.

appreciative inquiry model

A model specifically designed as an abundance-based, bottom-up, positive approach.

complex adaptive systems (CAS)

A model that views organizations as constantly developing and adapting to their environment, much like a living organism.

McKinsey 7-S model

A popular depiction of internal organizational dimensions.

virtual structure

A recent organizational structure that has emerged in the 1990's and early 2000's as a response to requiring more flexibility, solution based tasks on demand, less geographical constraints, and accessibility to dispersed expertise.

An Organization's Culture can be understood and defined by which of the following?

All answers are correct

structural change

Changes in the overall formal relationships, or the architecture of relationships, within an organization.

complex-stable environments

Environments that have a large number of external elements, and elements are dissimilar and where elements remain the same or change slowly.

simple-unstable environments

Environments that have a small number of external elements, and elements are similar and where elements change frequently and unpredictably.

simple-stable environments

Environments that have a small number of external elements, and elements are similar, and the elements remain the same or change slowly.

horizontal organizational structure

Flat organizational structure in which many individuals across the whole system are empowered to make organizational decisions.

Market culture

Focuses on delivering value, competing, delivering shareholder value, goal achievement, driving and delivering results, speedy decisions, hard driving through barriers, directive, commanding, competing and getting things done.

individual-level change

Focuses on how to help employees to improve some active aspect of their performance or the knowledge they need to continue to contribute to the organization in an effective manner.

clan culture

Focuses on relationships, team building, commitment, empowering human development, engagement, mentoring, and coaching.

internal dimensions of organizations

How an organization's culture affects and influences its strategy.

managed change

How leaders in an organization intentionally shape shifts that occur in the organization when market conditions shift, supply sources change, or adaptations are introduced in the processes for accomplishing work over time.

technological change

Implementation of new technologies often forces organizations to change.

socio-cultural environmental forces

Include different generations' values, beliefs, attitudes and habits, customs and traditions, habits and lifestyles.

participatory management

Includes employees in deliberations about key business decisions.

appreciative conversations

Intense, positively framed discussions that help people to develop common ground as they work together to cocreate a positive vision of an ideal future for their organization.

culture change

Involves reshaping and reimagining the core identity of the organization.

abundance-based change

Leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work.

deficit-based change

Leaders assume that employees will change if they know they will otherwise face negative consequences.

conventional mindset

Leaders assume that most people are inclined to resist change and therefore need to be managed in a way that encourages them to accept change.

positive or appreciative mindset

Leaders assume that people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability.

vertical organizational structure

Organizational structures found in large mechanistic organizations; also called "tall" structures due to the presence of many levels of management.

emergent or bottom-up approach

Organizations exist as socially constructed systems in which people are constantly making sense of and enacting an organizational reality as they interact with others in a system.

change agents

People in the organization who view themselves as agents who have discretion to act.

top-down change

Relies on mechanistic assumptions about the nature of an organization.

organization development (OD)

Techniques and methods that managers can use to increase the adaptability of their organization.

An organization with a horizontal structure is also known as a flat organization because it often features only a few levels of organizational hierarchy.

True

Organizational Culture directs how the members of the organization should behave.

True

sources of stress

environmental organizational personal

circular structure

executives at the center with concentric rings grouped by managers, specialists, and workers (flatter: 4 to 6 rings) smaller, entrepreneurial, creative, and corporate social responsibility focused organizations teams and projects focus

allostasis

finding stability through changing behavior and attitudes associated with demands and resources

how is culture created/sustained within an organization

founders selection top management socialization -prearrival stage -encounter stage -metamorphosis stage

Organizational Culture starts with the ________ of the company and grows ________ over time.

founders, organically

Which of the following is an inclusive concept that involves all outside factors and influences that impact the operation of a business that an organization must respond or react to in order to maintain its flow of operations?

general environment

an organization's external environment is also known as its

general environment

XY Deliveries, a package delivery company, is organized as XY North, XY South, XY East, XY West, and XY Central divisions in the United States, Which of the following best describe the structure at XY Deliveries?

geographic structure

economic external forces

globalization competitors and supply chain currency exchange rates employment and wage rates lending policies of financial institutions

government and political forces - external forces

government legislation international law wars local regulations taxation trade union activities

Which of the following profile of an organization emphasizes efficiency, process and cost control, organizational improvement, technical expertise, precision, problem solving, elimination of errors, logical, cautious and conservative, management and operational analysis, and careful decision-making?

hierarchy culture

technological external forces include

information tech and the internet net production forces how technology is sold and serviced

characteristics of organizational culture

innovation and risk taking attention to detail outcome orientation people orientation team orientation aggressiveness stability

culture as a liability

institutionalization, barriers to change, barriers to diversity, barriers to mergers/acquisition, and coherence around negativity and dysfunctional management

planned vs. reactionary change

internally intentional vs. externally (environmentally) forced

stress is associated with

interplay of demands and resources

complex+unstable=4 elements

large number of external elements, elements are dissimilar elements change frequently and unpredictably

chain of command is

line of authority from the top to the bottom authority (position power) and Unity of Command (boss)

Which of the following refers to the scenario when an organization concentrates resources in only one or very few locations, or only a few individuals are authorized to make decisions about the use of resources?

centralization

planned change

change activities that are intentional and goal-oriented An intentional activity or set of intentional activities that are designed to create movement toward a specific goal or end.

action research

change process based on the systematic collection of data and change action based on the scientific method (diagnosis, analysis, feedback, action, and evaluation) data analytics and data driven decision making criticism: lack of human component

six dimensions of change

changing nature of the workforce technology shifts and disruptions economic shocks competition social trends world politics

forces of change

changing workforce, technology, economic shocks, competition, social trends, globalization

how to overcome change resistance

communication participation building support and commitment developing positive relationships implementing changes fairly selecting people who accept change avoid manipulation, cooptation and coercion (only effective with short-term)

boundary spanning is

coordination and relationships outside (between) groups, teams, and departments liaison roles and project management

Which of the following represents is one of the most difficult kinds of changes to create within an organizational system?

culture change

strong culture

culture in which the core values are intensely held and widely shared (greater perceived achievement) strong cultures need less formalization (have more influence on attitudes and behaviors) strength of culture determines the influence the culture has on the "functions of culture"

positive organizational culture

culture that emphasizes building on employee strengths, rewards more than it punishes, and encourages individual vitality and growth whole person concept

formalization is

degree of job standardization formal with minimal discretion, informal with much freedom to determine what, when, and how to do the work

paradox theory

the key paradox in management is that there is no final optimal status for an organization do organizations refreeze? or constant state of change?

environmental complexity

the number and the intensity of external factors in the environment that affect organizations

how is organizational culture communicated

through organization's vision and mission

Early organizational theorists broadly categorized organizational structures and systems as either mechanistic or organic.

true

In cell 4 of the Company Industry Fit model, an environment characterized by a high degree of uncertainty with complex and unstable elements, industries and firms such as computer, aerospace, airlines, and telecommunications firms would operate more effectively.

true

lewin's three-step model

unfreezing, movement, refreezing driving forces: forces that direct behavior away from status quo restraining forces: forces that maintain behavior towards the status quo

organic environment

unstable, high uncertainty environment less rigid, horizontal organization flexible, few rules two-way communication participatory decision-making generalized shared tasks wide span of control

innovation

useful application of new ideas to create and improve on a product, process, or service organic structures, abundant resources, and interunit communication (boundary spanning)

centralization/decentralization is

where the authority of decision making lies within an organization centralized in top management; decentralized down to supervisors and front-line employees

7 key elements of organizational design/structure

work specialization departmentalization chain of command span of control centralization and decentralization formalization boundary spanning

organizational structure key elements

work specialization (breaking down a job into a number of steps) departmentalization (grouping jobs together by common task) chain of command (who reports to whom) span of control (number of directs) centralization vs. decentralization (how decisions are made) formalization boundary spanning - relationships outside of the formal assigned groups in an organization that cross functions, divisions, and locations

geographic structure

An Organizational option aimed at moving from a mechanistic to more organic design to serve customers faster and with relevant products and services; as such, this structure is organized by locations of customers that a company serves.

divisional structure

An organizational structure characterized by functional departments grouped under a division head.

matrix structure

An organizational structure close in approach to organic systems that attempt to respond to environmental uncertainty, complexity, and instability. An organizational structure that groups people by function and by product team simultaneously.

Kotter's change model

An overall framework for designing a long-term change process.

unplanned change

An unintentional activity that is usually the result of informal organizing.

Mechanistic organizational structures

Best suited for environments that range from stable and simple to low-moderate uncertainty and have a formal "pyramid' structure.

disturbances

Can cause tension amongst employees, but can also be positive and a catalyst for change.

group-level change

Centers on the relationships between people and focuses on helping people to work more effectively together.

complex-unstable environments

Environments that have a large number of external elements, and elements are dissimilar and where elements change frequently and unpredictably

adhocracy culture

Creates an environment of innovating, visioning the future, accepting of managing change, and risk taking, rule-breaking, experimentation, entrepreneurship, and uncertainty.

boundary conditions

Define the degree of discretion that is available to employees for self-directed action.

corporate culture

Defines how motivating employees' beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in.

mechanistic bureaucratic structure

Describes organizations characterized by (1) centralized authority, (2) formalized procedures and practices, and (3) specialized functions. They are usually resistant to change.

competing values framework

Developed by Kim Cameron and Robert Quinn this model is used for diagnosing an organization's cultural effectiveness and examining its fit with its environment.

Hierarchy culture

Emphasizes efficiency, process and cost control, organizational improvement, technical expertise, precision, problem solving, elimination of errors, logical, cautious and conservative, management and operational analysis, careful decision making.

Technological forces

Environmental influence on organizations where speed, price, service, and quality of products and services are dimensions of organizations' competitive advantage in this era.

Natural disaster and human induced environmental problems

Events such as high-impact hurricanes, extreme temperatures and the rise in CO2 emissions as well as 'man-made' environmental disasters such as water and food crises; biodiversity loss and ecosystem collapse; large-scale involuntary migration are a force that affects organizations.

Lewin's change model

Explains a very basic process that accompanies most organizational changes.

In deficit-based change, leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work

False

bureaucratic model

Max Weber's model that states that organizations will find efficiencies when they divide the duties of labor, allow people to specialize, and create structure for coordinating their differentiated efforts within a hierarchy of responsibility.

geographic structures

Occur when organizations are set up to deliver a range of products within a geographic area or region.

product structures

Occurs when businesses organize their employees according to product lines or lines of business.

transformational change

Significant shifts in an organizational system that may cause significant disruption to some underlying aspect of the organization, its processes, or its structures.

simple + stable=1 low uncertainty - elements

Small number of external elements, elements always similar; elements reman the same or change slowly

incremental change

Small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization.

OD Consultant

Someone who has expertise in change management processes.

organizational development (OD)

Specialized field that focuses on how to design and manage change.

level of organization

The breadth of the systems that need to be changed within an organization.

centralization

The concentration of control of an activity or organization under a single authority.

informal organization

The connecting social structure in organizations that denotes the evolving network of interactions among its employees, unrelated to the firm's formal authority structure.

specialization

The degree to which people are organized into subunits according to their expertise—for example, human resources, finance, marketing, or manufacturing.

intentionality

The degree to which the change is intentionally designed or purposefully implemented.

scope of change

The degree to which the required change will disrupt current patterns and routines.

organizational design

The process by which managers define organizational structure and culture so that the organization can achieve its goals.

span of control

The scope of the work that any one person in the organization will be accountable for.

organizational structure

The system of task and reporting relationships that control and motivate colleagues to achieve organizational goals. defines how tasks and jobs are formally divided and grouped in organizations based on the Key Elements of Organizational Design

Organic bureaucratic structure

Used in organizations that face unstable and dynamic environments and need to quickly adapt to change.

organizational culture

a system of shared meaning held by members that distinguishes the organization from other organizations descriptive term, not an evaluative term

Terry, a new HR Director, has implemented a new policy within the company she works for. She has received quite a bit of resistance from the employee population. Some of the reasons may be:

all of the answers are correct

departmentalization is

basis by which jobs are grouped together to coordinate common tasks functional, product/service, geographic, process & customer

five basic functions of every culture

boundary-defining, distinction between organizations sense of identity for organization members facilitates commitment to something larger than self-interest social system that holds organization together sense-making and control mechanism that guides attitudes and behavior

According to the environment-industry-organization fit model, industries and firms such as computer, aerospace, airlines, and telecommunications firms would operate more effectively in which of these cells?

cell 4

organizational change

making things different in an organization

ethical culture (ethical work climate)

managers as role models communicating ethical expectations provide ethical training (code of ethics) reward ethical acts, punish unethical ones provide protective mechanisms

subcultures

minicultures within an organization, typically defined by department and/or geographical separation

span of control is

number of employees a manager is expected to effectively and efficiently direct determines levels of organizational hierarchy trend towards wider spans of control

______ organizational structures work best in unstable, complex, changing environments.

organic

characteristics of cultural sustainability

organization practices that can be sustained over long periods of time tools and/or structures that support culture and are not damaged by processes cultures of innovation/creativity cultures of corporate social responsibility

team structure

organization that replaces departments with teams; horizontal boundaries are eliminated through boundary spanning inside and outside the organization; more project-focused work design

Which of the following represents the label for a field that specializes in change management?

organizational development

Which term describes a system for accomplishing and connecting the activities that occur within a work organization?

organizational structure

how do we learn about organizational culture

orientation/onboarding stories rituals symbols language

levels of organizational culture

overall organizational culture (dominating) sub-cultures

stress

positive or negative psychological and physical response that occurs to environmental pressures

how to influence organizational cultural change

positive organizational culture spiritual culture

technology

process of transferring inputs to outputs

A code of ethics is a mechanism which works to establish a strong organizational culture by ________.

reducing ambiguities in how employees should act

Organizational Culture can be defined by ________ basic characteristics.

seven

characteristics of an ethical work climate

shared concept of right and wrong behavior reflects true core values shapes ethical decision-making of members independence v. law and code

Organizational Culture is a system of ________ held by members that distinguishes the organization from other organizations.

shared meaning

organizational climate

shared perceptions organization members have about the organization and work environment evaluative component of positive, negative

3 things that must exist to be a learning organization

shared vision/strategies everyone understands and works towards open communication/psychological safety (vertical and horizontal) sublimate personal self-interests and departmental interests to organization's shared interests/vision

in what 5 basic ways can an organization be structured?

simple - new, young organizations bureaucratic - high specialization, formalization, and centralization functional - work and people grouped by specialties, roles, and tasks divisional - groups employees into units by product, customer, or geographic market matrix - combines functional and divisional structure resulting in dual lines of authority in the chain of command

According to the environment-industry-organization fit model, Cell 3 represents which of these environments?

simple-unstable environment

virtual organization

small core business that outsources most of its major business functions

simple + unstable=3 High to moderate uncertainty - element

small number of external elements, elements similar elements change frequently and unpredictably

challenge stressors

stressors associated with workload, pressure to complete tasks, and time urgency

hindrance stressors

stressors that are barriers to reaching info (e.g., lack of info)

Which of the following is an element of government and political forces?

taxation

work specialization is

the degree to which tasks in an organization are subdivided into separate jobs (division of labor - steps) focus on efficiency

culture as an asset

positive, ethical, sustainable, innovative, inclusive

Mechanistic environment

stable, low uncertainty environment top-down hierarchy narrow span of control specialized tasks formal rules vertical communication structured decision-making

command-and-control

The way in which people report to one another or connect to coordinate their efforts in accomplishing the work of the organization.

sociocultural external forces

demographic trends lifestyle changes availability skills attitudes toward work gender issues willingness to move ethics

Two dimensions of environment-industry-organization fit model are.

environmental complexity and environmental change

complex+stable=2 low to moderate uncertainty elements

large number of external elements, elements are dissimilar elements remain the same or change slowly

spiritual culture

life is nourished by meaningful work that takes place in the context of community benevolence, sense of purpose, trust, respect, and open-mindedness

functional structure

The earliest and most used organizational designs

Government and political environment forces

The global economy and changing political actions increase uncertainty for businesses, while creating opportunities for some industries and instability in others.

Organic Organizational Structures

The opposite of a functional organizational form that works best in unstable, complex changing environments.

change management

The process of designing and implementing change.

entrepreneurship

The process of designing, launching, and running a new business.

formalization

The process of making a status formal for the practice of formal acceptance.

differentiation

The process of organizing employees into groups that focus on specific functions in the organization.

domain

The purpose of the organization from which its strategies, organizational capabilities, resources, and management systems are mobilized to support the enterprise's purpose.

dominant culture

culture that expresses "core values" that are shared by a majority (dominant group) of the organization's members core values are the primary or dominant values accepted throughout the organization

natural disasters and human-induced problems - external forces

weather extreme storms pollution health, food, stress