ch 11 strategic management

core rigidity

a former core competency that turned into a liability because the firm has failed to hone, refine, and upgrade the competency as the environment changed.

organizational structure

a key building block of organizational design that determines how the work efforts of individuals and teams are orchestrated and how resources are distributed

strategic control-and-reward systems

a key building block of organizational design;internal governance mechanisms put in place to align the incentives of principals (shareholders) and agents (employees)

founder imprinting

a process by which the founder defines and shapes an organization's culture, which can persist for decades after his or her departure

groupthink

a situation in which opinions coalesce around a leader without individuals critically evaluating and challenging and challenging that leader's opinions and assumptions

formalization

an element of organizational structure that captures the extent to which employee behavior is steered by explicit and codified rules and procedures

specialization

an element of organizational structure that describes the degree to which a task is divided into separate jobs

hierarchy

an element of organizational structure that determines the formal, position based reporting lines and thus stipulates who reports to whom

centralization

an element of organizational structure that refers to the degree to which decision making is concentrated at the top of the organization

exploitation

applying current knowledge to enhance firm performance in the short term

input controls

mechanisms in a strategic control and reward system that seek to define and direct employee behavior through a set of explicit, codified, rules and standard operating procedures that are considered prior to the value-creating activities

output controls

mechanisms in a strategic control and reward system that seek to guide employee behavior by defining expected results (outputs), but leave the means to those results open to individual employees, groups, or sbus

organizational culture

the collectively shared values and norms of an organization's members; a key building block of organizational design

span of control

the number of employees who directly report to a manager

strategy implementation

the part of the strategic management process that concerns the organization, coordination, and integration of how work gets done. It is key to gaining and sustaining competitive advantage.

organizational design

the process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization

mechanistic organization

organizational form characterized by a degree of specialization and formalization, and a tall hierarchy that relies on centralized decision making

organic organization

organizational form characterized by a low degree of specialization and formalization, a flat organizational structure, and decentralized decision making.

simple structure

organizational structure in which the founders tend to make all the important strategic decisions as well as run the day-to-day operations

matrix structure

organizational structure that combines the functional structure with the M FORM

multidivisional structure

organizational structure that consists of several distinct strategic business units, each with its own profit and loss responsibility

functional structure

organizational structure that groups employees into distinct functional areas based on domain expertise

exploration

searching for new knowledge that may enhance future performance