Read GB 370 Unit 8 Organization

4 cultural types of Competing Values Framework

(1) Adhocracy Culture (2) Clan Culture (3)Hierarchy Culture (4) Market Culture

Appreciative Inquiry (AI) model

- abundance-based, bottom-up, positive approach. Can read more about this in book

emergent or bottom-up approach

- relies on the belief that employees will be more invested in change if they play some role in the process of designing the change

External environmental trends that challenge organizations' survival includes:

-Digital technologies and artificial intelligence (AI): -Blockchain technologies (public electronic ledge, database, openly shared among users)

Factors in the Choice of Centralization

-External environment's complexity and uncertainty -History of the organization -Nature (cost and risk) of the decisions to be made

bureaucratic mode PP

-Max Weber, a 19th-century sociologist. -organizations will find efficiencies when they divide the duties of labor, allow people to specialize, and create structure for coordinating their differentiated efforts PP A logical, rational, and efficient organization design based on a legitimate and formal system of authority. Bureaucracy- application of rules to large groups

An external consultant

-OD specialist hired to provide outside expertise for a short period of time, usually for a major change effort.

Advantages of Product Departmentalization

-all activities associated with one product are integrated and coordinated -speed and effectiveness of decision making are enhanced -performance of individual products or product groups can be assessed

level of change

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

disadvantages of geographic structure

-can be easy for decision-making to become decentralized, as geographic divisions (which can be hundreds if not thousands of miles away from corporate headquarters) often have a great deal of autonomy. -other disadvantages are similar to those of the divisional structure.

Socio-cultural forces

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

Competing Values Framework. (CVF) Chart 4.21

-for diagnosing an organization's cultural effectiveness and examining its fit with its environment. 4.21

vertical organizational structure

-found in large mechanistic organizations; called "tall" structures due to many levels of management.

1st Era

-mid-1800s to late 1970s (earliest structure) -FUNCTIONAL STRUCTURE - mechanistic self-contained, top-down pyramids. - internal organizational- taking in raw materials, transforming those into products, and turning them out to customers. -internal hierarchical control -separate functional specializations in order to adapt to external environments. -grouped people into functions or departments, -developed systems to coordinate and integrate work horizontally and vertically.

4. design

-prioritizing ideas developed in the dream phase. - brainstorm a list of all the possible areas for action that might help them to accomplish the objective. -identify the ideas that have the most promise. -senior leaders will add their voice to endorse the ideas that they want to encourage as actual action initiatives. - invited to join project teams that will carry out specific actions to develop and implement key actions.

organizational design PP

-process of SETTING UP organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives PP -The structural elements and the relationships among the elements used to manage the organization. -A means to implement strategies and plans to achieve organizational goals.

Change management

-process of designing and implementing change. -Most leaders are responsible for some degree of change management.

types of matrix structures

-virtual team designs- used in complex environments. -cross-functional matrix teams - team members from other organizational departments report to an "activity leader" who is not their formal supervisor or boss. - employees from the same department coordinate across another internal matrix team consisting - global matrix teams consisting of employees from different regions, countries, time zones, and cultures who are assembled to achieve a short-term project goal of a particular customer.

Factors Influencing the Span of Management How to know if flat will work? From PP

1. Competence of supervisor and subordinates(the greater the competence, the wider the potential span) 2. Physical dispersion of subordinates(the greater the dispersion, the narrower the potential span) 3. Extent of nonsupervisory work in manager's job(the more nonsupervisory work, the narrower the potential span) 4. Degree of required interaction (the less required interaction, the wider the potential span) 5. Extent of standardized procedures(the more procedures, the wider the potential span) 6. Similarity of tasks being supervised (the more similar the tasks, the wider the potential span) 7. Frequency of new problems (the higher the frequency, the narrower the potential span) 8. Preferences of supervisors and subordinates

Adam Smith PP

1st person to recognize specialization counted "the invisible hand"

Advantages of networked organization

Advantages similar to those stated earlier with regard to organic, horizontal, and matrix structures.

Companies with evolving business models

Amazon,Apple, Netflix, and Google/Alphabet -combine strategic innovation, technology, and organizational meet and shape external environmental demands

mix of cultures and be effective.

Amazon- blends a high-performance Adhocracy Culture with regard to its external expansion and Bezos's leadership style and has a Hierarchy Culture internally with tight control over employees at lower levels. The company propelled its domain from an "online bookstore" "to selling everything online to being the pioneering in adopting cloud computing with AWS . . . to adopting the latest robotics in its warehouses to improve productivity . . . to thinking and testing disruptive technologies like drones It has been criticized, at the same time, for its "toxic cut-throat work environment," Jeff Bezos is overly demanding and sets very high standards for Amazon employees, type of culture extends down to the warehouse employees. Amazon employees have complained that "Work came first, life came second, and trying to find the balance came last." alleged suicide attempt in 2017 of a disgruntled employee who requested a transfer to a different department within in the company but was placed on an employee improvement plan—"a step that could result in his termination from Amazon if his performance didn't improve."50 Amazon has since changed many of its working rules and regulations for warehouse employees.

Disney went from Tall to Flat

Bob Iger made Disney Flat when he bought Pixar The Pixar people just made the movies did not have to market etc.. Disney just let them do their thing Then Pixar made movies that Disney didn't;t know what to do with it but then Disney decided not to care Marketing people just had to figure out how to market it

Limitations of Job Specialization PP

Boredom and dissatisfaction with mundane tasks. Anticipated benefits do not always occur. - Found easier way to make a nail but different people doings each part of the. nail making

Organizing PP

Deciding how to best group organizational activities and resources.

Structural Coordination

Getting people to work together -management hierarchy -rules and procedures -managerial liaison rolls -task forces -integrating department -electronic coordination

Product Departmentalization

Grouping activities around products or product groups. Just focuses on one product in the organization

Complex + Unstable = 4

High Uncertainty 1. LARGE number of external elements and elements are DISSIMILAR 2. Elements CHANGE frequently and unpredictability Ex: computer firms, aerospace, telecommunications, airlines

Simple + Unstable = 3

High to Moderate Uncertainty 1. SMALL number of external elements and elements are SIMILAR 2. Elements CHANGE frequently and unpredictability Ex: e-commerce, fashion, music industry, toy manufacturers

Internal dimensions of organizations

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

Lewin's Change Model 2nd step

Move -Take Action -Make Changes -Involve people

Rationale for Departmentalization

Organizational growth exceeds the owner-manager's capacity to personally supervise all of the organization. Additional managers are employed and assigned specific employees to supervise.

change agents

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

Authority

Power that has been legitimized by the organization How. much authority should you give the managers?

Lewin's Change Model 3rd step

Refreeze -Make changes permanent - Establish new ways of things -Reward desired outcomes

McKinsey 7-S model

Shared Values (Culture) in middles with these around it- strategy, structure, systems, skills, staff, and style all revolve around and are interconnected with shared values (or culture) in an organization. 4.17

Mechanistic organizational structures

Stable Low uncertainty - top-down hierarchies -formal rules -chain of command is highly centralized and uses formal authority - tasks are clearly defined and differentiated- to be executed by specific specialized experts. -narrow span of control (Bosses and supervisors have fewer people working directly under them) - departmentalization divided into different departments that perform special tasks -vertical communication - structured decision making -traditional structure -U.S. Postal Service

Decentralization

Systematically delegating power and authority throughout the organization to middle- and lower-level managers.

Centralization

Systematically retaining power and authority in the hands of higher-level managers.

1. Specialization

The degree to which people are organized into subunits according to their expertise — human resources, finance, marketing, or manufacturing. -specialization within those functions. For instance, people who work in a manufacturing facility may be well-versed in every part of a manufacturing process, or they may be organized into specialty units that focus on different parts of the manufacturing process, such as procurement, material preparation, assembly, quality control

Job Specialization (Division of Labor) PP

The degree to which the overall task of the organization is broken down and divided into smaller component parts.

Job Design PP

The determination of an individual's work-related responsibilities.

Delegation

The process by which managers assign a portion of their total workload to others.

Departmentalization

The process of grouping jobs according to some logical arrangement.

Organic organizational structures

Unstable, high uncertainty (changing) environment -Less rigid horizontal environment -Flexible, few rules -2 way communication -participatory decision-making -generalize shared tasks -wider span of control (more people reporting to managers). -high tech, computer, aerospace, and telecommunications industries -Contemporary corporations and firms engaged in fast-paced, highly competitive, rapidly changing, and turbulent environments are

Benefits of Job Specialization PP

Workers can become proficient at a task. Transfer time between tasks is decreased. Specialized equipment can be more easily developed. Employee replacement becomes easier.

external environment

all outside factors and influences that impact the operation of a business

external organizational complexity

amount of complexity from the external environment country, the markets, suppliers, customers and stakeholders

The open systems model serves

as a feedback loop continually taking in resources from the environment, processing and transforming them into outputs that are returned to the environment.

2 axis of Competing Values Framework flexibility versus stability and control

culture functions better in a stable, controlled environment or a flexible, fast-paced environment?

5-D cycle:

define discover dream design destiny

Largest bureaucratic organization?

government

Participatory management

inclusion of employees about key business decisions -emergent approach to change.

Globalization

integrated global economy - free trade, capital flows, communications, and cheaper foreign labor market

2 axis of Competing Values Framework external focus versus internal focus

is culture is externally or internally oriented?

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.

Chart 14.16 organization of the internal environment Formal Subsystem

leadership strategy management goals marketing operations structure.

major sectors of a task environment

marketing technology government financial resources human resources.

formal organization explains how an organization ______ function, while the informal organization is how the organizational ________ functions.

should and actually

Lewin's Change Model

shows organizational change occurring in three phases (10.8). -very basic process that accompanies most organizational changes -many people prefer a stable, predictable organization, and they become accustomed to the routines that exist in their organizational environment. -common routines and behaviors need to be disrupted. When past routines and behaviors are no longer available, people naturally adjust. As they react to a new reality, they establish new routines and patterns of behavior.

general macro environments and forces that are interrelated and affect organizations:

sociocultural technological economic government and political natural disasters human-induced problems

An internal consultant

someone who works as an employee of an organization and focuses on how to create change from within that organization.

organizational structure

system for CONNECTING the activities that occur within a work organization. -People rely on structures to know what work they should do, how their work supports or relies on other employees, and how these work activities fulfill the purpose of the organization itself.

environmental complexity

the number of elements in the environment- competitors, suppliers, and customers

Who sets the culture?

top-level leader or founder. This individual's vision, values, and mission set the "tone at the top," which influences both the ethics and legal foundations, modeling how other officers and employees work and behave.

boundary conditions

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

managed change

How leaders 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.

Simple + Stable = 1

Low Uncertainty 1. SMALL number of external elements and elements are SIMILAR 2. Elements remain the SAME or change Ex: soft drink bottlers, container manufacturers, food processors

Complex + Stable = 2

Low to Moderate Uncertainty 1. LARGE number of external elements and elements are DISSIMILAR 2. Elements remain the SAME or change slowly Ex: universities appliance manufacturers, chemical companies, insurance companies

Chart 14.16 organization of the internal environment Informal Subsystem

Managers culture Relationships norms politics leadership

internal complexity

amount of complexity that is internal to the organization -products, technologies, human resources, processes and organisational structure.

A business structure

designed to address organizational needs.

Organizations PP

groups of people formed together to serve a purpose through structured and goals and plans. - companies, firms, corporations, institutions, agencies, associations, groups, consortiums, and conglomerates --types of organizations: not-for-profit, for-profit, public, private, government, voluntary, family owned and operated, and publicly traded on stock exchanges..

2. Command and Control

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

scope of change

-refers to the the required change will disrupt current patterns and routines.

disdvantages of networked organization

(1) Establishing clear lines of communication to produce project assignments and due dates to employees is needed. (2) Technology is crucial Delays in communication result from computer crashes, network traffic errors and problems; electronic information sharing across country borders can also be difficult. (3) Not having a central physical location where all employees work, or can assemble occasionally to have face-to-face meetings and check results, can result in errors, strained relationships, and lack of on-time project deliverables.

weakness of a bureaucratic structure

-can become so focused on their own part of the organization and fail to understand or connect with broader organizational activities.

Global Risks Perception Survey (GRPS) predicts the following trends in the external environment

(1) persistent inequality and unfairness (2) domestic and international political tensions (3) environmental dangers (4) cyber vulnerabilities. (5) "[o]rganizations are no longer judged only for their financial performance, or even the quality of their products or services. Rather, they are being evaluated on the basis of their impact on society at large—transforming them from business enterprises into social enterprises."

2nd Era

- 1960s- 1990s -HORIZONTAL ORGANIZATIONAL -More-complex environments, markets, and technologies strained mechanistic organizational structures. -Competition from Japan in the auto industry and complex transactions in the banking and insurance emphasized customer value, demand and faster interactions, quality, and issued the need for more organic organizational designs and structures. -higher levels of integration and speed of informational processing. -Computers came -reengineering along workflow processes that link organizational capabilities to customers and suppliers. -Ford, Xerox Corp., Lexmark, and Eastman Kodak -flattened hierarchical, hybrid structures and cross-functional teams.

informal organization

- INVISIBLE network of interpersonal relationships that SHAPE how people actually connect with one another to carry out their activities. -EMERGENT, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships. -usually complex, impossible to control, and has the potential to significantly influence an organization's success.

Product structures

- business organizes its employees according to product lines or lines of business. For example, employees in a car company might be organized according to the model of the vehicle that they help to support or produce. Employees in a consulting firm organized around a particular kind of practice that they work in or support. -become highly attuned to their own line of business or their own product.

5. Formalization

- degree of definition in the roles that exist throughout an organization. A highly formalized system (e.g., the military) has a very defined organization, a tightly structured system, in which all of the jobs, responsibilities, and accountability structures are very clearly understood. a loosely structured system (e.g., a small, volunteer nonprofit) relies heavily on the emergent relationships of informal organization.

Intentionality

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

set up the formal organization

- design the administrative responsibilities and communication structures that should function within an organizational system. -describe how flow of information and resources should occur within an organization. - identify the essential functions -hire people to fill these functions. - help employees learn their functions and how these functions should relate to one another.

disadvantages of a divisional structure

- divisions can easily become isolated and insular from one another and that different systems, such as accounting, finance, sales -may suffer from poor and infrequent communication and coordination of enterprise mission, direction, and values. -incompatibility of systems (technology, accounting, advertising, budgets) can occur, which creates a strain on company strategic goals and objectives.

Virtual structures

- emerged in the 1990s -response to requiring more flexibility, solution-based tasks on demand, fewer geographical constraints, and accessibility to dispersed expertise. -Related modular and digital organizations, - dependent on information communication technologies (ICTs). - "boundaryless organization." -Examples that use virtual teams are Uber, Airbnb, Amazon, Reebok, Nike, Puma, and Dell.

2. discover

- examples of the desired future. The question "who are we when we are at our best?" For example, British Airways asked its employees to describe examples of exceptional customer service anywhere in its organization. By sharing stories of exceptional customer service, they found examples of exemplary service, even though the dominant narrative was that they had challenges in this area. Finding existing examples of the desired future—no matter how small—causes people to see that a positive alternative is possible..

advantage of functional structure

- excels in a high degree of specialization and a simple and straightforward reporting system within departments -offers economies of scale -not difficult to scale if the organization grows. From PP -Each department can be staffed by functional-area experts. -Supervision is facilitated in that managers only need be familiar with a narrow set of skills. -Coordination inside each department is easier.

A functional need

- feature of the organization or its environment that is necessary for organizational success.

organizational development (OD)

- field that SPECIALIZES in change management. -OD specialists draw on social science to guide change processes that simultaneously help a business achieve its objectives while generating well-being for employees and sustainable benefits for society.

mechanistic bureaucratic structure.

- hierarchical form of organizing designed to generate a high degree of standardization and control. -highly vertical organizational structure, or a "tall" structure, due to the presence of many levels of management. -tends to dictate roles and procedure through strong routines and standard operating practices. (1) centralized authority (2) formalized procedures and practices (3) specialized functions. usually resistant to change.

Group-level change

-centers on the relationships between people -focuses on helping people to work more effectively together. -Team development, or teambuilding,

4. Centralization

- how to manage the flows of resources and information in an organization - highly centralized 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. In contrast, a diffuse organization distributes resources more broadly throughout an organizational system along with the authority to make decisions about how to use those resources.

3. dream

- ideal future possibilities for the organization. - think about what the organization might do if it were to build on its strengths. - "What could be?" is a commonly used question to encourage this exploration. -encourage employees to innovate about the future. Ex: They might have employees work in groups to design prototypes of a process or write a mock newspaper article about a future successful project. -encourage employees to think as expansively as possible about the possibilities for change, usually in a fun and inviting way.

conventional mindset

- leaders assume that people are inclined to resist change and need to be managed in a way that encourages them to accept change. -people in an organization need to be managed or controlled. - leaders assume that their perspectives are more informed sound and logical than the perspectives of employees. -They convince employees about the correctness of their decisions, relying on logic to prove the point. - inclined to use methods that may be seen by employees as manipulative or coercive. -conventional mindset is the default, or dominant mode of change in most organizations

3rd Era

- mid-1990s to the present. -factors contributed: the Internet; global competition — from China and India with low-cost labor; automation of supply chains; and outsourcing of expertise to speed up production and delivery of products and services. -everything did not have to be produced within the confines of an organization, especially if corporations were cutting costs and outsourcing different functions of products to save costs. - further extensions of the horizontal and organic types of structures evolved: the divisional, matrix, global geographic, modular, team-based, and virtual structures were created.

Kotter's change model

- most widely use - aligns with mechanistic view of structure and it may be useful in organizations where there is a strong, hierarchical structure. -useful where the desired change is reasonably predictable and where leaders are empowered to drive the change down through an organization. - challenge employees may resist change if they have had no hand in shaping the plans -used when leaders hold a deficit-based view and are generally inclined to take a top-down approach from a conventional perspective. -where leaders need to clearly define and implement a large-scale change,.

technological change.

- new technologies forced upon an organization - induces structural change because it requires different ways of connecting across an organizational system. -For example, an industry upgrade in software platform may require that employees learn new ways of working. Upgraded machinery or hardware require employees to learn new procedures or restructure the way that they interact with one another.

Organizational Lifestyle 2. survival and early success phase

- occurs as an organization begins to scale up and find continuing success. - develops more formal structures around more specialized job assignments. -Incentives and work standards are adopted. - communication formal tone -introduction of hierarchy with upper- and lower-level managers. - impossible for every employee to have personal relationships with every other employee in the organization. -introduce mechanistic structures that support the standardization and formalization required to create effective coordination across the organization.

Organizational Lifestyle 3. sustained success or maturity phase

- organization expands and the hierarchy deepens - multiple levels of employees. -Lower-level managers greater responsibility -Top executives rely on lower-level leaders to handle administrative issues so that they can focus on strategic decisions that affect the overall organization. - mechanistic structures of the organization are strengthened, and functional structures introduced. -tension emerges over how to find balance in the structure. - need elements of a mechanistic bureaucracy while maintaining an environment that allows for the innovation and flexibility that is a feature of an organic structure.

clan culture

- people-oriented, relationships, team building, commitment, empowering human development, engagement, mentoring, and coaching. -Organizations that focus on human development, human resources, team building, and mentoring -internal focus with a flexibility

differentiation

- process of organizing employees into groups that focus on specific functions in the organization. -differentiated tasks should be organized in a way that makes them complementary, where each employee contributes an essential activity that supports the work and outputs of others in the organization.

organic bureaucratic structure

- relies on the ability of people to self-organize and make decisions without much direction such that they can adapt quickly to changing circumstances. -common to see a horizontal organizational structure, which many individuals across the whole system are empowered to make organizational decision. -also known as a flat organization because it often features only a few levels of organizational hierarchy.

3. Span of Control

- scope of the work that any one person in the organization will be accountable for -top-level leaders are responsible for all of the work of their subordinates -mid-level leaders are responsible for a narrower set of responsibilities - ground-level employees perform very specific tasks.

OD consultant

- someone who has expertise in change management processes.

geographic structure

- structure is organized by locations of customers that a company serves. -design to serve customers faster and with relevant products and services -evolved as companies became more national, international, and global. - resemble and are extensions of the divisional structure.

theory of Open Systems

- view of organizations as open systems that take in resources and raw materials at the "input" phase from the environment in a number of forms -Whatever the "input resource", (information, raw materials, students entering a university), those resources will be transformed by the internal processes of the organization. - "through-put" -The internal organizational systems then process and transform the inputs through education, manufacturing processes etc.. -"outputs" move the changed material (resources) to the and back into the environment as products, services, graduates, etc. SEE CHART 4.15

unifying framework (developed by Lewin and Stephens) - the integration of internal organizational and how these work in practice to align with the external environment.

-CEO and other top-level leaders who scan the external environment to identify uncertainties and resources before using a SWOT analysis (identifying strengths, weaknesses, opportunities, and threats) to confirm and update the domain of an organization and then to define the vision, mission, goals, and strategies. -Once the enterprise goals and strategies are developed, the organizational culture, structure, and other systems and policies can be established (human resources, technologies, accounting and finance, and so on). Chart 4.18 -after a CEO and the top-level team identify opportunities and threats in the environment, they then determine the domain and purpose of the organization from which strategies, organizational capabilities, resources, and management systems must be mobilized to support the enterprise's purpose.

open vs closed system

-Closed systems are less sensitive to environmental resources and possibilities, -open systems are more responsive and adaptive to environmental changes. For example, during the 1980's the then Big 3 U.S. auto manufacturers (Ford, General Motors and Chrysler) were pressured by Japanese auto manufacturers' successful 4-cylinder car sales that hit the U.S. like a shock wave. The Detroit producers experienced slumping sales, plant closures, and employee lay-offs in response to the Japanese wave of competition. It seemed that the U.S. auto makers had become closed or at least insensitive to changing trends in cars during that time and were unwilling to change manufacturing processes. Amazon's business model, continues to pressure retailers to innovate and change processes and practices to compete in this digital era.

Economic forces

-Globalization -competitors in supply chain -currency exchange rates -employment and wage rates -Lending policies and financial institutions

Succession

-How to leave? Before leaving -Good Processes -Good People with clear roles Then GO, Get Out, Split

Technological forces

-Information technology and the Internet -new production forces -how technology is sold and serviced

culture change.

-Organizational culture refers to the common patterns of thinking and behaving within an organization. Culture is rooted in the underlying beliefs and assumptions that people hold of themselves and of the organization. These beliefs and assumptions create mindsets that shape the culture. - most difficult kinds of changes - involves reshaping and reimagining the core identity of the organization. -requires many years to achieve

Organization Design Concepts PP

-Organizations are not designed and then left intact. -Organizations are in a continuous state of change. -Designs for larger organizations are extremely complex and have many nuances and variations.

formal organization

-SET OF relationships, responsibilities, and connections that exist ACROSS an organization. The traditional organizational chart Exhibit 10.2, is perhaps the most common way of depicting the formal organization. The typical organization has a hierarchical form with clearly defined roles and responsibilities.

Organizational Structure

-The system of task and reporting relationships that control and motivate colleagues to achieve organizational goals. Lecture: The set of building blocks that can be used to configure an organization.

Matrix comes and goes

-The term cycles in and out. -Technology was supposed to help but doesn't solve root issues -Don't hear it called a matrix anymore, "cross-cuts" -Problems --Power struggles are baked in --Decision authority? --Creates a lot of overhead almost no matter what ---Can't really collapse it when the market shrinks -Where do you put a direct hierarchy and then a matrix? A matrix in a matrix gets pretty trippy

Reasons for Delegation

-To enable the manager to get more work done by utilizing the skills and talents of subordinates. -To foster development of subordinates by having them participate in decision making and problem solving.

Matrix Design From PP

-Two overlapping bases of departmentalization: --A set of product groups or temporary departments are superimposed across the functional departments. -Employees in the matrix belong to their departments and the project team: --A multiple command structure in which an employee reports to both departmental and project managers. -useful when: --Strong environmental pressure. -- Large amounts of information to be processed. __ Pressure for shared resources.

Organization-level change

-change that affects an entire organizational system or several of its units. -Strategic planning and implementation is most common type of organization-level change. -Higher-level change programs usually require changes at lower levels —an organization-level change may require change at both team and individual levels as well.

strategic change

-change, that helps align an organization's operations with its strategic mission and objectives. -necessary for an organization to achieve the focus it needs to make needed transfer missions and work it does feel to stay competitive in the current or larger organization, larger market environment, or societal environment.

structural change.

-changes in the overall formal relationships within an organization. -Changes made to support broader objectives such as to centralize or decentralize operations, empower employees, or find greater efficiencies. -Examples: reorganizing departments or business units, adding employee positions, or revising job roles and assignments.

disadvantages of matrix structure

-confusion and conflicts employees experience in reporting to two bosses. - employees (including their bosses and project leaders) require good interpersonal communication, conflict management, and political skills to manage up and down the organization. - must "learn how to collaborate with colleagues across distance, cultures and other barriers. -suffer from of divided loyalties where both team and functional goals compete for their time and attention -multiple bosses and often work on multiple teams at the same time. From PP -Employees are uncertain about reporting relationships. -Managers may view design as an anarchy in which they have unlimited freedom. -The dynamics of group behavior may lead to slower decision making, one-person domination, compromise decisions, or a loss of focus. -More time may be required for coordinating task-related activities.

organizational change

-constant CHANGE that occur within an organizational system - as people enter or leave the organization, market conditions shift, supply sources change, or adaptations are introduced in the processes for accomplishing work.

Advantages of virtual structures

-cost savings, -decreased response time to customers -greater access to a diverse labor force not encumbered by 8-hour workdays -less harmful on the environment.

Adhocracy Culture

-creating, innovating, visioning the future, managing change, risk-taking, rule-breaking, experimentation, entrepreneurship, and uncertainty. -an external focus with a flexibility orientation - fast-paced industries as filming, consulting, space flight, and software development. Facebook and Google's cultures . -larger organizations may have different cultures for different groupings of professionals, even though the larger culture is still dominant.

Market Culture

-delivering value, competing, delivering shareholder value, goal achievement, driving and delivering results, speedy decisions, hard driving through barriers, directive, commanding, and getting things done. results-oriented, competitive -marketing-and-sales-oriented company that works on planning and forecasting but also getting products and services to market and sold. - external focus with a stability/control orientation. -Oracle under the dominating, hard-charging executive chairman Larry Ellison characterized this cultural fit.

advantages of a divisional structure

-each specialty area can be more focused on the business segment and budget that it manages - everyone can more easily know their responsibilities and accountability expectations - customer contact and service can be quicker -coordination within a divisional grouping is easier, since all the functions are accessible. -helpful for large companies since decentralized decision-making means that headquarters does not have to micromanage all the divisions.

Advantages of Bureaucratic Model PP

-efficiency in function -prevention of favoritism -I tough question of departmentalizationrecognition of requirement for expertise -Very consistent with how they do things so have to have a lot of rules -everyone treated fairly -efficient

Hierarchy Culture

-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. -internal focus with a stability/control orientation -bureaucratic and structured, process-oriented -U.S. Postal Service, the military, and other government agencies.

advantages of geographic structure

-enables each geographic organizational unit (like a division) the ability to understand, research, and design products and/or services with the knowledge of customer needs, tastes, and cultural differences. -Headquarters must ensure effective coordination and control over each somewhat autonomous geographically self-contained structure. - other advantages are similar to those of the divisional structure.

Geographic structures

-exist where organizations are set up to deliver a range of products within a geographic area or region. -set up based on a territory or region. -Managers of a particular unit oversee all of the operations of the business for that geographical area.

Networked team structures

-form of the horizontal organization. - more informal and flexible. -Networks have two characteristics: clustering and path length. (Clustering refers to the degree a network is made up of tightly knit groups) (path lengths is a measure of distance) -naturally forms after being initially assigned. - connected together by informal networks and the demands of the task, rather than a formal organizational structure. - being adapted to larger companies that require more reach and scope and quicker response time with customers:

government and political forces

-government legislation -international law -wars -local regulations -taxation -trade union activities

Individual-level change

-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 -include leadership development, training, and performance management.

5. destiny

-implement the plans they have developed. - work agreed-upon action steps for a period of time. -meet with other employee-based groups to check in, report on progress, and adjust their plans. - create celebrative events to commemorate key successes.

appreciative conversations

-intense, positively framed discussions help people to develop common ground as they work together to co-create a positive vision of an ideal future for their organization. -intentionally invite dialogue that generates a narrative for a positive organizational reality. This

Planned change

-intentional activities to create movement toward a specific goal or end. - involve large groups of people and step-by-step or phase-by-phase activities that unfold over a period of time. -effective leaders identify clear objectives for the change, the specific activities that will achieve those objectives, and the indicators of success.

disadvantage of functional structure

-isolation of departments from each other since they tend to form "silos," (closed mindsets not open to communicating across departments) - lack of quick decision-making and coordination of tasks across departments -competition for power and resources. From PP -Decision making becomes slow and bureaucratic. -Employees narrow their focus to their department and lose sight of broader goals and issues. -Accountability and performance are difficult to monitor.

positive or appreciative mindset

-leaders assume people are inclined to embrace change when they are respected as individuals with intrinsic worth, agency, and capability. -employees seen as partners, sometimes even as champions of change, who can do significant things. - involve employees through meaningful dialogue and seek to lead with a sense of purpose. -start by highlighting the values that people may hold in common to establish an environment in which employees develop a strong sense of connection with one another. -involve employees through participatory processes that allow them to develop common goals and processes for achieving significant changes.

advantages of matrix structure

-maintains control over employees who work on teams that cut across functional areas, creating horizontal coordination that focuses projects that have deadlines and goals to meet within and in addition to those of departments. -provided faster information sharing, coordination, and integration between the formal organization and profit-oriented projects and programs --provides flexibility and helps integrate decision-making in functionally organized companies.. From PP -Enhances organizational flexibility. -Creates high motivation and increased organizational commitment for team members. -Gives team members opportunity to learn new skills. -Provides an efficient way for the organization to use its human resources. -Uses team members as bridges to their departments for the team. -Useful as a vehicle for decentralization.

Disadvantages of Product Departmentalization

-managers may focus on their product to the exclusion of the rest of the organization -administrative costs may increase due to each department having its own functional-area experts -if product is a "dog" will be hard to find people to work on it

Divisional structures

-many functional departments grouped under a division head. -Each functional group in a division has its own marketing, sales, accounting, manufacturing, and production team. - resembles a product structure that also has profit centers. - can be grouped by different markets, geographies, products, services, or other whatever is required by the company's business. -market-based structure -ideal for an organization that has products or services that are unique to specific market segments - effective if that organization has advanced knowledge of those segments.

Top-down change

-mechanistic assumptions about the nature of an organization. -small group of individuals will design a process and instruct others throughout the organization as to how the process of change should unfold. -Most employees play a passive role during the design process and are generally expected to follow the directions given to them by leaders in the organization. - this approach to change relies on the formal organization to drive the legitimacy of the change.

Corporate culture

-motivating employees' beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in. -Culture is both the personality and glue that binds an organization.

Matrix structures

-move closer to organic systems in an attempt to respond to environmental uncertainty, complexity, and instability. - originated at a time in the 1960s when U.S. aerospace firms contracted with the government. -use teams to combine vertical with horizontal structures. -authority along two dimensions: employees report to a functional, departmental boss and simultaneously to a product or project team boss. -To succeed in these types of horizontal organizational structures, organizational members "should focus less on the structure and more on behaviors.

complex adaptive systems (CAS)

-organization is constantly developing and adapting to its environment - bottom-up, emergent approach to the design of change, relying on the ability of people to self-manage and adapt to their local circumstances Can read more about this in the book.

a matrix structure

-organization that has multiple reporting lines of authority. -For example, an employee who specializes in a particular product might have both the functional reporting line and a geographic reporting line. This employee has accountability in both directions. The functional responsibility has to do with her specialty as it correlates with the strategy of the company as a whole. her geographic accountability is to the manager who is responsible for the region or part of the organization in which she is currently working. -challenge is that an employee may be accountable to two or more managers, and this can create conflict if those managers are not aligned. - benefit employees may be more inclined to pay attention to the needs of multiple parts of the business simultaneously.

Organizational Lifestyle 1. entrepreneurship phase

-organization very small and agile, focusing on new products and markets. - focus on a variety of responsibilities, and they often share frequent and informal communication with all employees in the new company. -Employees have informal relationship, and work assignments are very flexible. - loose, organic organizational structure

Disadvantages of Bureaucratic Model PP

-organizational inflexibility and rigidity -neglect of social and human processes -belief in one best way to design organizations but not always a 1 best way

CEO Leaves

-really hard to tell when a CEO is 'fired' No one makes enemies for free Indications that a CEO left -Market price for stock goes up -Old person returns as 'interim' -Board Chair steps in as 'interim'

transformational change

-significant shifts in an organizational system that may cause significant disruption to some underlying aspect of the organization, its processes, or structures. - can be invigorating for some employees, but also highly disruptive and stressful for others. -Examples: large systems changes and organizational restructuring. Culture change often requires transformational change to be successful.

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. -LEAN and Six Sigma, which are used to find relatively small changes that can generate greater efficiencies in a process. can improve its product-line efficiencies by identifying small discrepancies in process, then fixing them in a systematic way. Incremental change does not typically challenge people to be at the edge of their comfort zone.

Disdvantages of virtual structure

-social isolation of employees who work virtually -lack of trust among employees and between the company and employees -reduced collaboration among separated employees and the organization's officers

nine resilience lens

-the capacity organization to adapt and prosper in the face of high-impact, low-probability risks.

functional structure

-the earliest and most used organizational designs. -organized by departments and expertise areas, like R&D (research & development), production, accounting, and human resources. - pyramid structures - governed as a hierarchical, top-down control system. -Small companies, start-ups, and organizations working in simple, stable environments use this structure, as do many large government organizations and divisions of large companies for certain tasks.

1. define

-the objective for change and inquiry is established. -leaders will create a guiding group, often called a steering committee -they will decide on a way of describing an objective that invites people to think about ideal possibilities for the organization. For example, British Airlines turned a baggage-claim problem into an exploration of excellent customer service, and Avon turned a problem with sexual harassment into an opportunity to explore what it would take to create exceptional employee engagement.

unplanned change

-unintentional and the result of informal organizing. -completely spontaneous, occurring simply because employees in some part of an organization want to initiate change. - sometimes it occurs as a byproduct of a planned change process because it is difficult for leaders to anticipate all the consequences of a planned change effort. Employees react in unpredictable ways, technologies don't work as expected, changes in the marketplace don't happen as expected, or other actors may react in unanticipated ways.

Natural disasters in human induced problems

-weather -extreme storms -pollution -health, food, stress

Organizational Lifestyle 4. renewal or decline phase

-when an organization expands to the point that its operations are far-flung and need to operate somewhat autonomously. - Functional structures become essential, and subunits may begin to operate as independent businesses. - tensions in the company between mechanistic and organic inclinations may be out of balance. -organization has to be reorganized or restructured to achieve higher levels of coordination between and among different groups or subunits. -Managers need to address fundamental questions about the overall direction and administration of the organization.

Problems in Delegation: Subordinate

1) Reluctant to accept delegation for fear of failure. 2) Perceives no rewards for accepting additional responsibility. 2) Prefers to avoid any risk and responsibility.

Problems in Delegation: Manager

1) Reluctant to delegate 2) Subordinate's success threatens superior's advancement 3) lack of trust in the subordinate to do well 4) Disorganization prevents planning work in advance

5 elements of bureaucracy for determining an appropriate structure

1)specialization 2)command-and-control 3)span of control 4)centralization 5) formalization

Characteristics:of Bureaucratic Model From PP

1. A division of labor with each position filled by an expert. 2. A consistent set of rules ensuring uniformity in task performance. 3. A hierarchy of positions that creates a chain of command. 4. Impersonal management; with the appropriate social distance between superiors and subordinates. 5. Employment and advancement based on technical expertise, and employees protected from arbitrary dismissal.

Factors to consider when designing an organizational structure:

1. Bureaucracy 2. Specialization 3. Command-and-Control 4. Span of Control 5. Centralization 6. Formalization

Why Delegation Isn't The Perfect Answer:

1. Coordination The process of linking the activities of the various departments of the organization. 2. The Need for Coordination Where departments and work groups are interdependent; the greater the interdependence, the greater the need for coordination.

Departments can be divided by

1. Function Ex: accounting department, marketing department 2. Geography By location- Might have a district manager 3. Customer group Put who you are selling to in different groups

2 categories of organizational structures

1. Mechanistic 2. Organic

Coordinating Activities: Forms of Interdependence

1. Pooled interdependence When units operate with little interaction; their output is simply pooled at the organizational level. 2. Sequential interdependence When the output of one unit becomes the input of another unit in sequential fashion. 3. Reciprocal interdependence When activities flow both ways between units.

strategies for dealing with external complexity:

1. assemble a set of self-managing teams 2. develop simple rules to help with creativity and innovation ... to keep the infrastructure and processes simple, while permitting complex outputs and behaviors 3. building on their own capabilities. If companies attempt to manage too much complexity it would lead to chaos.

8 Steps Kotter's change model

1. establish a sense of urgency. why the change is necessary. 2. form a powerful guiding coalition -assemble a group of influential people to help shape the planned change 3. create a vision of change -outline the scope of the change, the reason for the change, and what will be better or different as a result of the change. 4. communicate the vision -explain why the change is needed -how the change should unfold. - answer questions and clarify problems. 5. remove any obstacles. 6. create small wins. encourage people to support changes to help them to see the path to success. 7. consolidate improvements 8. anchor the changes

Order of organizational structures starting with the earliest

1. functional (Era 1) 2. divisional (Era 1) 3. geographic (End era 1 start era 2) 3. matrix (Era 2) 4. network/team (End era 2 start era 3) 4, virtual (Era 3)

2 crucial purposes of organizational culture

1. helps an organization adapt to and integrate with its external environment by adopting the right values to respond to external threats and opportunities 2. creates internal unity by bringing members together so they work more cohesively to achieve common goals.

3 ways in which self-organizing structures can be altered

1. leader can influence the boundary conditions that establish the limits for emergent activity. 2. self-organizing is altered through the introduction of disturbances to the system. 3. reminder to pay particular attention to the flows and connections that exist among employees across an organizational system.

Lewin's Change Model 1st step

1. organization must be "unfrozen" in that existing norms, routines, and practices need to be disrupted.

3 categories of nine resilience lens

1. structural resilience- the systemic dynamics within the organization itself. 2. integrative resilience- complex interconnections with the external context. organizations must be part of and aware of their contexts: geographically and the health of "individuals, families, neighborhoods, cities, provinces, and countries" that are affected. organizations must rely on their social cohesion—such as the social capital an organization has to fall back on in times of crisis—which is a strong source of resilience. 3. transformative resilience requires that mitigating some risks requires transformation. proactively change or it will end up being changed by external circumstances." organizational foresight, not forecasting. need to apply different search, environmental scanning, and new discovery techniques "to engage with the uncertainty of multiple futures through innovation and experimentation. In practice, Google, Amazon, Facebook, SpaceX, Tesla, Airbnb, Uber, and the resilience of other industry and organizational pioneering will be required.

a leader needs to pay attention to the key conditions that allow for informal self-organizing to occur. There are three basic questions to consider:

1. what degree do people feel empowered to act as change agents in the system? (do they feel empowered to make changes) 2. how connected are people to one another in the organization? (relationships) 3. what extent are flows of information and energy passing through the connections that exist between people? (feedback)

Horizontal organizational

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

flat organization

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

traditional business models,

Blockbuster, Toys R Us, Borders, Sun Microsystems, Motorola, Digital Equipment Corporation, Polaroid, and Kodak - not succeeding strategically, operationally, and organizationally by not realizing and/or adapting to changing external environments

informal organization can be mapped

Exhibit 10.3 - chart called a network map, because it depicts the relationships that exist between different members of a system. -Some members are more central than others, and the strength of relationships may vary between any two pairs or groups of individuals. -relationships are constantly in flux, as people interact with new individuals, current relationships evolve, and the organization itself changes over time.

Tall vs. Flat Organizations

Tall Organizations - more expensive because of the number of managers involved. - communication problems because of the number of people through whom information must pass. Ex: government very beuqacratic Mangers have mangers who have managers Flat -higher levels of employee morale and productivity. -more administrative responsibility for the relatively few managers. - more supervisory responsibility for managers due to wider spans of control. -more flexible -clear goals- workers already know what they need to do - works well for sales, creative, teachers (principal not telling them what to teach each day) -Only works if manager is ok with letting go of control and allowing them to do their own thing -Flat is better it works cause you don't have to Spd as much money on mangers

domain

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

domains that once were considered stable

have become more complex and unstable—e.g., toys, public utilities, the U.S. Postal Service, and higher education. Example: -traditional organizations and structures. ttraditionally stable and somewhat unchanging domain of higher education has become more complex with the entry of for-profit educational institutions, MOOCs (massive open online courses), internal company "universities," and other certification and degree programs outside traditional private institutions. -Sharing-economy companies such as Uber and Airbnb have redefined the transportation domain in which taxis operate and the hospitality domain in which hotels and bed and breakfasts serve. -New business models that use mobile phones, ICTs (information communication technologies), and apps remove middle management layers in traditional organizations and structures.

The following 4 terms

illustrates a classic and relevant depiction of how scholars portray environment-industry-organization "fit," that is, how well industries and organizations align with and perform in different types of environments. Environmental Complexity- the number of elements in the environment: competitors, suppliers, and customers -Simple- Small -Complex- Large Environmental Change -Stable- Same -Unstable- Change