Exam 1 - MGMT 443 Mendez Chico State

Centralization

Hierarchical level that has authority to make decisions (mechanistic) Top folks have all the power. Think military. Decentralized would be more like a fast food franchise where managers can have the control.

Vertical Linkages (names and definitions)

Hierarchical referral: The person in command (going up the ladder) Rules and plans: if problems are repetitious a rule or procedures can be established so employees know how to respond without communicating directly with their manager Vertical info systems: Another strategy for increasing vertical information capacity. IT INCLUDES periodic reports, written information, and computer base communications distributed to managers.Information systems make communication up and down the hierarchy more efficient.

Specialization

Is the degree to which organizational tasks are subdivided into separate jobs. If specialization is extensive each employee performs only a narrow range of tasks. If specialization is low employees have a wide range of their jobs (mechanistic)

Horizontal Linkages

Liaison roles: Direct contact. A liaison person is located in one department but has the responsibility for communicating and achieving coordination and collaboration with another department. Usually links only 2 departments Task forces: When it is a more complex device, a task force is used. A task force is a temporary committee composed of representatives from each other organizational unit affected by a problem. Full-time integrator: create a full time position or department solely for the purpose of coordination. A full time integrator frequently has a title such as product manager, project manager, program manager, or brand manager. The integrator DOES NOT report to one of the functional departments being coordinated. They are located outside the department and has the responsibility for coordinating several departments Cross-functional or cross geographical teams: is a group of people with different functional expertise working toward a common goal. It may include people from finance, marketing, operations, and human resources departments. Typically, it includes employees from all levels of an organization. Relational coordination: refers to frequent, timely, problem-solving communication carried out through relationships of shared goals, shared knowledge and mutual respect.

Outcomes of high and low levels of structural dimensions:

There are 2 types of organizations, there is Hierarchical or a Flat organization. Hierarchical has High efficiency, but it is demotivational and has a culture of politics. Flat organizations has lower efficiency but is more motivational and is a learning organization.

UNIT 1

UNIT 1

UNIT 2

UNIT 2

UNIT 3

UNIT 3

UNITS 4, 5, 6 & 7

UNITS 4, 5, 6 & 7

Vertical and horizontal complexity

Vertical complexity is the number of levels in the hierarchy. Different organizational levels possess different stores of knowledge and expertise. Horizontal complexity is the number of departments or occupational specialties existing horizontally across the organization.

Conclusions at the end of round 2 (cards):

Why didn't we work together as a class? Our competitive instincts were stronger than our instincts to collaborate.

Recall the symptoms of structural deficiency in organizations (be ready to diagnose a problem of structural deficiency in a short case if needed).

- Absence of collaboration/coordination - Poor or delayed decision making - Organization cannot meet changing needs - Employee performance declines - Goals are not met - Dysfunctional conflict

Organizational Structures: Virtual

Advantages - Enables even small organizations to obtain talent and resources worldwide - Gives a company immediate scale and reach without huge investments in factories, equipment, or distribution facilities - Enables the organization to be highly flexible and responsive to changing needs - Reduces administrative overhead cost Disadvantages: - Managers do not have hands on control over many activities and employees - Requires a great deal of time to manage relationships and potential conflicts with contract partners - There is a risk of organizational failure if a partner fails to deliver or goes out of business - Employee loyalty and corporate culture might be weak because employees can feel they can be replaced by contract services

Organizational Structures: Matrix

Advantages: - Archives coordination necessary to meet dual demands from customers - Flexible sharing of human resources across products - Suited to complex decisions and frequent changes in unstable environment - Provides opportunity for both functional and product skill development - Best in medium sized organizations with multiple products Disadvantages: - Causes participants to experience dual authority, which can be frustrating and confusing - Means participants need good interpersonal skills and extensive training - Is time consuming, involves frequent meetings and conflict resolutions sessions - Will not work unless participants understand it and adopt collegial rather than vertical-type relationships - Requires great effort to maintain power balance

Organizational Structures: Front/Back Hybrid

Advantages: - Dual capacities - Back is for quality product - Front is for the needs of customers - Main focus on product and customers Disadvantages: - More time consuming - Knowledge of the job/ less product knowledge - More channels of communication - Frustration/ambiguity between the front and back

Organizational Structures: Horizontal

Advantages: - Promotes flexibility and rapid response to changes in customer needs - Directs the attention of everyone toward the production and delivery of value to the customer - Each employee has a broader view of organizational goals - Promotes to focus on teamwork and collaboration - Improves quality of life for employees by offering them the opportunity to share responsibility, make decisions, and be held accountable four outcomes Disadvantages: - Determining core processes is difficult and time consuming - Requires changes in culture, job design, management philosophy, and information and rewards systems - Traditional managers may hesitate when they have to give up power and authority - Requires significant training of employees to work effectively in a horizontal team environment - Can limit in-depth skill development

Organizational Structures: Functional (Mechanistic)

Advantages: - Increases economies of scale within functional departments - Enables in-depth knowledge and skill development - Enables organization to accomplish functional goals - Is best with only one or a few products Disadvantages: - Slow response time to environmental changes - May cause decisions to pile on top; hierarchy overload - Leads to poor horizontal coordination among departments - Results in less innovation - Involves restrictive view of organizational goals

Organizational Structures: Divisional (geographic, product, customer) (MECHANISTIC)

Advantages: - Suited to fast change in unstable environment - Leads to customer satisfaction because product responsibility and contact points are clear - Involves high coordination across functions - Best in large organizations with several products - Allows unit to adapt to differences in products, regions, customers - Decentralizes decision making Disadvantages: - Eliminates economies of scale in functional departments - Leads to poor coordination across product lines - Eliminates in-depth competence and technical specialization - Makes integration and standardization across product lines difficult

Organizational Structures: Holacracy

Based on hierarchy of circles, self-managed teams

Structural dimensions:

Centralization Formalization Specialization Hierarchy of authority (span of control) Vertical Complexity Horizontal Complexity

Contingency Factors (5)

Culture: is the underlying set of key values, beliefs, understandings, and norms shared by employees Size: is typically measured by the number of employees Goals and Strategy: define the purpose of competitive techniques that set it apart from other organizations. Goals = statement of company intent. Strategy = plan of action Environment: Elements outside the boundary of the organization. Key elements include industry, government, customers, suppliers, and financial community. Technology: Refers to the tools, techniques, and actions used to transform inputs into outputs

Miles and Snow's Strategy Typology

Defender: Never take risks or new opportunities. The defender strategy is concerned with stability. They do not care about growth or innovating. They are concerned with internal efficiency and control to produce reliable high quality products for steady customers. Prospector: This strategy is to innovate, take risks, seek out new opportunities, and grow. Suited to a dynamic, growing environment, where creativity is more important that efficiency. Analyzer: Tries to maintain stable business while innovating. In between defender and prospector. Attempts to balance efficient production for current product or service lines with the creative development of new product lines. Reactor: Not really a strategy, rather it responds to environmental threats and opportunities when necessary.

Hierarchy of authority (span of control)

Describes who reports to whom and the span of control for each manager. Span of control is the number of employees reporting to a supervisor (mechanistic)

Porter's Competitive Strategies

Differentiation vs. Low Cost Leadership Differentiation: the organization attempts to distinguish its products or services from others in the industry Low cost leadership: tries to increase market share by keeping costs low compared to competitors.

What type of structure (mechanistic or organic) is likely to support each of the two types of Porter's strategies in an organization?

Differentiation: organic Low cost leadership: mechanistic

Mechanistic vs. Organic Structures

Mechanistic: Highly centralized authority. Formalized procedures and practices. Specialized functions. Simpler to organize but rapid change is challenging. (Employees are found to work on their own assigned tasks. Decisions are kept as high up the chain as possible. Employees have little to no interaction with higher ups. Strict company policies or operating standards with much documentation) Organic: Flatness: communications and interactions are horizontal. Low specialization: knowledge resides wherever it is most useful Decentralization: a great deal of formal and informal participation in decision making (Employees are found working in groups and share input on tasks. teams handle one task. Communication is open between employees, managers and executives, though they are typically just known as 'the owner'. greater scale of verbal communication between parties. more face-to-face time within the hierarchy of power.The structure of the business is more adaptable and flexible to changes.Organic organizations have quickly realized that a happy workplace makes for a happy employee.)

Formalization

Pertains to the amount of written documentation in the organization. Includes job descriptions, regulations, and policy manuals (mechanistic)

Strategy types:

Porter's Competitive strategies Miles & Snow's strategy typology

Organizational Structures: Simple

Pretty straight-forward

Organizational Goals

Strategic Intent: Means that the organization's energies and resources are directed towards a focused, unifying, and compelling overall goal. Operating goals: Serves specific purpose. Provides employees with a sense of direction and motivation. Offer decision guidelines. Define standards of performance. Strategy: A plan for interacting with the competitive environment to achieve organizational goals.

Recall the five elements that compose Galbraith's model of Organizational Design:

Strategy Structure Processes (including decision-making) Human resources policies (including compensation) Culture.

How is a contingency factor different from a structural dimension?

Structural dimensions- There are 2 types of organizations, there is Hierarchical or a Flat organization. Hierarchical has High efficiency, but it is demotivational and has a culture of politics. Flat organizations has lower efficiency but is more motivational and is a learning organization. Contingency Factors- is anything that would be a barrier before being able to start a project or do business. Essentially it is a prerequisite before doing something.

Organizational Structures: Lattice

flat, no chain of command, no authority, direct communication, leaders have followers