COB 300 Management Exam 2

The impact of geography on culture

'Guns, germs, and steel' Food,

Job characteristics model JCM

(JCM) is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes. goal of the model is to create jobs that result in positive personal and work outcomes, such as internal work motivation, satisfaction with one's job, and work effectiveness. GO TO PAGE 191 IN TEXTBOOK

Three-step process to make sense of changes in external environments

1. Environmental scanning: searching the environment for important events or issues that might affect an organization. Managers scan the environment to stay up to date on important factors in their industry and to reduce uncertainty. Affected by organizational strategies. contributes to organizational performance. 2. Interpreting environmental factors: When managers interpret environmental events as threats, they take steps to protect the company from further harm. When managers interpret environmental events as opportunities, they consider strategic alternatives for taking advantage of those events to improve company performance. 3. Acting on threats and opportunities: Because it is impossible to comprehend all the factors and changes, managers often rely on simplified models of external environments called cognitive maps. Cognitive maps summarize the perceived relationships between environmental factors and possible organizational actions.The map shows three kinds of variables. The first variables, shown as rectangles, are environmental factors. The second variables, shown in ovals, are potential actions that the store owner might take, such as a low-cost strategy. The third variables, shown as trapezoids, are company strengths, such as low employee turnover, and weaknesses, such as small size. The plus and minus signs on the map indicate whether the manager believes there is a positive or negative relationship between variables.

How are cultures transmitted?

1. Physical layout (symbols) 2. Language and stories 3. Rituals 4. Rules and Policies 5. Mission/Vision/Values

How does culture impact the workplace? nine Cultural dimensions

1. Power distance: Low power is everyone is equal. In a high power distance culture it means in that culture, people have a lot of respect for authority. 2. Uncertainty avoidance: Higher score do not like change. 3. Institutional collectivism: How much does the individual important vs larger society 4. In-group collectivism: Individual vs there group, family. 5. gender egalitarianism: Equal roles between male and female is high egalitarianism. 6. Assertiveness: 7. Future orientation: 8. Performance orientation: 9. Human orientation:

Core job characteristics

1. Skill variety: Number of different activities performed in a job. 2. Task identity: The degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work. 3. Task significance: The degree to which a job is perceived to have a substantial impact on others inside or outside the organization. 4. Autonomy: The degree to whcih a job gives workers the deiscretion, freedom, and independence to decide how and when to accomplish the job. 5. Feedback: The amount of information the job provides to workers about their work performance.

Issues related to organizational culture

1. Strong vs weak: Strong culture means that people in that organization share those values and standards of behaviors. Weak cultures mean that people are more individualistic, one is not better then another. 2. Subcultures 3. Fit with strategy: There is no one culture or dimensions that are necessarily better then another. Just depends on a strategy.

Reengineering

= fundamental radical processess dramatic fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed About change. Improvement. Reengineering changes an organization's orientation from vertical to horizontal. Instead of taking orders from upper management, lower- and middle-level managers and workers take orders from a customer who is at the beginning and end of each process. Instead of running independent functional departments, managers and workers in different departments take ownership of cross-functional processes. Instead of simplifying work so that it becomes increasingly specialized, reengineering complicates work by giving workers increased autonomy and responsibility for complete processes.

Job enrichment

Attempts to overcome the deficiencies in specialized work by increasing the number of tasks and by giving workers the authority and control to make meaningful decisions about their work.

Simple matrix

managers in different parts of the matrix negotiate conflicts and resources directly

departmentalization

method of subdividing work and workers into seperate organizational units that take responsibility for completing particular tasks. Organizational structure have been created by departmentalizing work using these 5 methods: Functional Product Customer Geographic Matrix

Functional departmentalization

most common org structure, organizes work and workers into separate units responsible for particular business functions or areas of expertise. Not all functionally departmentalized companies have the same functions. the functional departments in the company that uses functional structure depends on the business or industry a company is in. Pros: 1. Allows work to be done by highly qualified specialists 2.Lowers costs by reducing duplication. 3. Departments have similar types of people with similar training and experience, communication and coordination becomes less problematic for departmental managers. Cons: 1. cross- department coordination becomes difficult, managers more concerned about their department then the entire organization.

detail-oriented cultures

organizations that emphasize precision and attention to detail.

Geographic departmentalization

organizes work and workers into separate units responsible for doing business in particular geographic areas. Pros: 1. Helps companies respond to demand of different markets. 2. reduce cost by location unique org resources closer to customers. Cons: 1. Lead to duplication of resources. 2. Can be difficult to coordinate departments that are far away from each other and whose managers have very limited contact with each other.

Product departmentalization

organizes work and workers into separate units responsible for producing particular products or services. Pros 1. Allows managers and workers to specialize in one area of expertise. Managers and workers develop a broader set of experiences and expertise related to and entire product line. 2. Product makes it easier for managers to assess work-unit performance. 3. Faster decision making, responsible for entire product line rather than for separate functional departments. Cons: 1. Duplication of job types in different departments, resulting in higher costs. 2. Challenge of coordinating across the different product departments, hard time standardizing policies.

Modular organizations

outsource all remaining business activities to outside companies, suppliers, specialists, or consultants. The primary advantage of modular organizations is that they can cost significantly less to run than traditional organizations because they pay for outsourced labor, expertise, or manufacturing capabilities only when needed. too. The primary disadvantage is the loss of control that occurs when key business activities are outsourced to other companies. Also, companies may reduce their competitive advantage in two ways if they mistakenly outsource a core business activity. First, as a result of competitive and technological change, the noncore business activities a company has outsourced may suddenly become the basis for competitive advantage. Second, related to that point, suppliers to whom work is outsourced can sometimes become competitors

Organizational heroes

people celebrated for their qualities and achievements within an organization. Way an organizational culture is sustained.

Environmental change

rate at which a company's general and specific environments change.

two basic strategies for monitoring customers

reactive and proactive. Reactive customer monitoring involves identifying and addressing customer trends and problems after they occur. Proactive monitoring of customers means identifying and addressing customer needs, trends, and issues before they occur.

Organizational structure

vertical and horizontal organizational structure exists to resolve two opposing forces: economic advantages of job specialization and the problems and costs of coordination and motivation.

Chain of command

vertical line of authority that clarifies who reports to whom throughout the organization. People higher in the chain of command have the right if they choose to given commands, take actions, and make decisions. Key assumptions: unity of command

Visible artifacts

visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room

unity of command

workers should report to just one boss.

Job rotation

Attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills. rotate, less boring. Economic benefits of specialized work. More satisfying.

Power of incentives

Create behavior you are trying to get but doesn't allow for adverse behavior

where should companies decentralize?

One rule of thumb is to stay centralized where standardization is important and to decentralize where standardization is unimportant.

Customer departmentalization

Organizes work and workers into separate units responsible for particular kinds of customers. Pros 1. Focuses the organization on customer needs, rather than on products or business functions. 2. Can specialize and adapt their products to customer needs. Cons: 1. Duplication of resources 2 .Difficult to achieve coordination across different customer departments.

Job specialization

a job is composed of a small part of a larger task or process. simple, easy to learn-steps, lower variety and high repetition. Cons: Boring, low job satisfaction. Pros: Economical, little time to master, efficient

Competitive analysis

a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

Opportunistic behavior

a transaction in which one party in the relationship benefits at the expense of the other

Advocacy groups

concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions Unlike the industry regulation component of the specific environment, advocacy groups cannot force organizations to change their practices.

Coordination and motivation may be resolved through control systems and incentives

control systems= personal 1. personal controls- personal contact with subordinates. Most widely used in small firms. Management by walking around. 2. bureaucratic controls- a system of rules and procedures that directs the actions of subunits. Budgets and capital spending rules. 3. Output controls- setting goals for subunits to achieve and expressing those goals in terms of objective performance metrics. Compare actual performance against targets and intervene selectively to take corrective action. 4. Cultural controls- exist when employees 'buy into' the norms and value systems of the firm. Strong culture implies need for other forms of control.

Flat vs tall organizations

determined by span of control. How many people report to a given manager. All else equal, flatter is better. Flat= can make faster decision. Better flow of information. High levels of motivation. Cheaper.

Uncertainty

extent to which managers can understand or predict which environmental changes and trends will affect their businesses When environmental change and complexity are at high levels and resource scarcity is high (i.e., resources are scarce), uncertainty is high, and managers may not be at all confident that they can understand, predict, and handle the external forces affecting their businesses. When environmental change and complexity are at low levels and resource scarcity is low (i.e., resources are plentiful), uncertainty is low, and managers feel confident that they can understand, predict, and react to the external forces that affect their businesses.

Empowerment

feeling of intrinsic motivation in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination can lead to changes, active roles.

people-oriented cultures

high, see as individuals, well-being, not just workers to be exploited to make output.

Job enlargement

increases the number of different tasks that a worker performs within one particular job. Instead of being assigned just one task, workers with enlarged jobs are given several tasks to perform. Leads to more stress, more work.

Internal motivation

is motivation that comes from the job itself rather than from outside rewards such as a raise or praise from the boss.

Problems with coordination and motivation can also be resolved through

job rotation job enlargmeent job enrichment Job characteristics model (JCM)

Why why aren't all orgs flat?

limited by task interdependence and task complexity. Parkinson's law= managers create subordinates not rivals. Managers make work for each other. Work expands to fill the time available for its completion. We expand the amount of time to do stuff if we have more time. Slack till its due.

line authority vs. staff authority

line authority; the right to command immediate subordinates in the chain of command. staff authority: right to advise, but not command others who are not subordinates in the chain of command.

line vs staff function

line function: an activity that contributes directly to creating or selling the company's products. Staff function: accounting, human resources, or legal services, does not contribute directly to creating or selling the company's products but instead supports line activities.

Decentralization

location of a significant amount of authority in the lower levels of the organization. Decentralized IF it has a high degree of delegation at all levels. Workers closest to problems are authorized to make decisions to solve the problems on their own without the need of managers. Pros: Develops capable employees, faster decision making, satisfied customers, outperformed other companies.

Business confidence indices

Because economic statistics can be poor predictors, some managers try to predict future economic activity by keeping track of business confidence. Business confidence indices show how confident actual managers are about future business growth.

National culture

Differences in geography (climate, etc...), history, tech, religion, government, family. Elements of culture. Outcomes: Consumption decisions and behaviors, management style.

Sociocultural changes and trends influence organizations in two important ways.

First, changes in demographic characteristics, such as the number of people with particular skills or the growth of or decline in the number of people with particular population characteristics (marital status, age, gender, ethnicity) affect how companies staff their businesses. Second, sociocultural changes in behavior, attitudes, and beliefs also affect the demand for a business's products and services.

Thomas Reuter's org chart

Focuses on accountability, responsibility, and positions within the chain of command. 1. financial and risk: trading, investors, marketplaces, governance 2. legal: US law firm solutions, corporate, governmental and Academic, global businesses 3. tax and accounting: Professional, corporate, knowledge solutions, government. 4. intellectual property and science: Intellectual property solutions, life sciences, science and scholarly research.

Centralization of authority

Location of most authority at the upper levels of the organization. Managers make most decisions.

Creating and maintaining organizational culture

Main source of culture is the founder.

Empowering workers

Means permanently passing decision-making authority and responsibility from managers to workers. For workers to be fully empowered, companies must give them the information and resources they need to make and carry out good decisions and then reward them for taking individual initiative.

Job characteristics Model

Redesigning jobs: Combining tasks, forming natural work units, establishing client relationships, vertically loading the job, opening feedback channels Core job characteristics= Skill variety, task identify, task significance, autonomy, feedback critical physchological states= experienced meaningfulness of the work, experienced responsibility for the outcomes of work, knowledge of the actual results of work activity. Personal and work outcomes = high internal work motivation: high growth satisfaction, high general job satisfaction, high work effectiveness.

Technology

Technology is the knowledge, tools, and techniques used to transform inputs (raw materials, information, and so on) into outputs (products and services). For example, the inputs of authors, editors, and artists (knowledge) and the use of equipment like computers and printing presses (technology) transformed paper, ink, and glue (raw materials) into this book (the finished product). Although technological changes can benefit a business, they can also threaten it. Companies must embrace new technology and find effective ways to use it to improve their products and services or decrease costs. If they don't, they will lose out to those companies that do.

Matrix Departmentalization

Two or more forms of departmentalization are used together. Combines for example the product and functional forms of departmentalization. How is this different from other forms of departmentalization? 1. Employees report to two bosses, one from each core part of the matrix. 2. Matrix structures lead to much more cross-functional interaction than other forms of departmentalization. 3. Requires significant coordination between managers in the different parts of the matrix. Pros: 1. Allows companies to manage in an efficient manner large, complex tasks Efficiency comes from avoiding duplication. Cons: 1. High level of coordination is required to manage complexity involved in running large, ongoing projects at various levels of completion. 2. Disagreement or musunderstanding ois common

Inter-organizational process

a collection of activities that take place among companies to transform inputs into outputs that customers value. Keep customers happy.

consistent organizational cultures

a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes. Consistent with its code of conduct to "Do no harm to people. Protect the environment, and comply with all laws and regulations," when Royal Dutch Shell, the multinational energy company, buys smaller drilling companies, the first thing it does is shut down the drilling rigs for several weeks to retrain the workers in terms of safety and environmental procedures. Having a consistent or strong organizational culture doesn't guarantee good company performance. When core beliefs are widely shared and strongly held, it is very difficult to bring about needed change. Consequently, companies with strong cultures tend to perform poorly when they need to adapt to dramatic changes in their external environments

Company mission

a company's purpose or reason for existing.

Media advocacy

an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage

Product boycott

an advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service

Public communications

an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out

Suppliers

are companies that provide material, human, financial, and informational resources to other companies.

external environments

are the forces and events outside a company that have the potential to influence or affect it. 3 characteristics: Resource scarcity Environmental change Environmental complexity

Mainfest destiny and monroe doctrine

basis of US foreign policy in the 19th and 20th centuries. Manifest destiny meant that Americans were a chosen people ordained by God to create a model society. It referred to the territorial expansion of the united state from the Atlantic to the pacific. Monroe Doctrine: 3 basic premises 1. No further European colonization in the new world 2. Abstention of the united states from European political affairs 3. Nonintervention by European governments in the governments of the western hemisphere.

Degree of centralization

centralization: Location of maximum authority at the upper levels of the firm decentralization: Location of a significant authority in the lower levels of the firm. Standardization: Solving problems by applying....

Organic organizations

characterized by broadly defined jobs and responsibilities, loosely defined. Changing roles, decentralized authority, horizontal communication Works best in dynamic, changing business environment.

Mechanistic organizations

characterized by specialized jobs and responsibilities precisely defined, unchanging roles and a rigid chain of command based on centralized authority and vertical communication. Works best in stable, unchanging business environment. chapter—departmentalization, authority, and job design mechanistic organizational designs focus on organizational structure, whereas organic organizational designs are concerned with organizational process

Organizational process

collection of activities that transform inputs into outputs that customers value. How do things get done?

punctuated equilibrium theory

companies go through long periods of stability (equilibrium) during which incremental changes occur; followed by short, complex periods of dynamic, fundamental change (revolutionary periods); and finishing with a return to stability (new equilibrium). 4

Competitors

companies in the same industry that sell similar products or services to customers.

outcome-oriented cultures

companies that emphasize achievement, results and action as important values embrace an outcome-oriented culture.

Team-oriented cultures

companies that emphasize cooperation and collaboration among employees display a team-oriented culture

stable cultures

companies that emphasize predictable, rule-oriented, and bureaucratic adherence to rules and regulations exhibit stable cultures.

Innovative cultures

companies that have innovative cultures are flexible, adaptable, and experiment with new ideas.

Aggressive cultures

companies with aggressive cultures value outperforming competitors through competitive actions.

Environmental Complexity

complexity refers to the number and the intensity of external factors in the environment that affect organizations. Simple environments have few environmental factors, whereas complex environments have many environmental factors. The dairy industry is an excellent example of a relatively simple external environment.

Industry regulation

regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions City Mayor Michael Bloomberg passed a controversial new law requiring restaurants, movie theaters, and other food service locations in the city to limit the size of sugary drinks

Authority

right to give commands, take actions, and make decisions to achieve org objectives. Characterized by: 1. Chain of command 2. Line versus staff authority 3. Delegation of authority 4. Degree of centralization.

Culture

shared norms and values Culture influences every single aspect of business communication: 1. How to show politeness and respect 2. How much information to give 3. How to motivate people Types of culture: 1. Organizational culture 2. National culture 3. Personal culture Managers must also guard against ethnocentrism: a belief in the superiority of one's own culture. "My culture is right, your culture is wrong."

Standardization

solving problems by consistently applying the same rules, procedures, and processes.

complex matrix

specialized matrix managers and departments are added to the organizational structure. Different parts of the matrix might report to the same matrix manager.

Organizational stories

stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions. Way an organizational culture is sustained.

job specialization

taking complex tasks and instead of asking this guy to build the whole car have them build just a part of it.

resource scarcity

the abundance or shortage of critical organizational resources in an organization's external environment

Delegation of authority

the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible. Tranfers: 1. Responsibility 2. Authority 3. Accountability

Intraorganizational process

the collection of activities that take place within an organization to transform inputs into outputs that customers value

Specific environment

the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business

Supplier dependence

the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product for over a decade Apple has been highly dependent on Samsung for the computer chips

Buyer dependence

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products While Samsung is one of Apple's key suppliers (i.e., supplier dependence), Apple, in turn, is Samsung's key buyer of computer components.

General environment

the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations

4 components of the general environment

the economy, the tech, sociocultural, and political/legal trends that indirectly affect all organizations.

Relationship behavior

the establishment of mutually beneficial, long-term exchanges between buyers and suppliers DreamWorks Studios, which makes films and TV shows, has had a long-term strategic relationship with HewlettPackard (H-P), which makes computers and software.

Internal environment

the events and trends inside an organization that affect management, employees, and organizational culture. Because they affect what people think, feel, and do at work. The key component in internal environments is organizational culture, or the set of key values, beliefs, and attitudes shared by members of the organization.

Task interdependence

the extent to which collective action is required to complete an entire piece of work 3 kinds: In pooled interdependence, each job or department contributes to the whole independently. In sequential interdependence, work must be performed in succession, as one group's or job's outputs become the inputs for the next group or job. Finally, in reciprocal interdependence, different jobs or groups work together in a back-and-forth manner to complete the process. Reengineering decreases sequential interdependence, pooled interdependence, increases reciprocal interdependence.

Globalization

the influence of cultural differences

Job design

the number, kind and variety of tasks that individual workers perform in doing their jobs.

Behavior substitution

the process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture.Choose behaviors that are central to and symbolic of the old culture you're changing and the new culture that you want to create.

Behavior addition

the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create. Choose behaviors that are central to and symbolic of the old culture you're changing and the new culture that you want to create.

Dynamic environments

the rate of environmental change is fast. Tech

stable environment

the rate of environmental change is slow. Wholefoods

Organizational culture

the values, beliefs, and attitudes shared by organizational members. Company founder influences organizational culture. Related to organizational success. Cultures need to reinforce important values and behaviors, but a culture becomes dysfunctional if it prevents change. One of the surest ways to do that is to discourage open discussion and disagreement. Three levels: 1. Seen 2. Heard 3. Believed Instead, managers should focus on the parts of the organizational culture they can control. These include observable surface-level items, such as workers' behaviors and symbolic artifacts, and expressed values and beliefs, which can be influenced through employee selection. A system of shared assumptions, values, and beliefs that indicate appropriate and inappropriate behavior within a given organization.