MADM 701 - Heller - Module 2

What is generative learning?

employees examine effect of decisions and change behavior as needed

What is adaptive learning?

employees simply react to environmental changes with standard responses leading to short-term solutions

What is network radical redesign?

find where to add value in supply chain, hire firm to do it, like Harley Davidson

The more ___ in a company, the better the organization overall.

givers

What is base pay?

- Amount of money paid on regular basis; often determined by market conditions - Typically coupled with merit pay for salary increases

***What are some guidelines for culture change?

- Assess current culture and set realistic goals - Hire outside personnel - Make changes from top down - Include employees in change - Take out reminders of previous culture - Expect problems and resistance to change - Move quickly and stay the course

What are the characteristics of organizational culture?

- Behavioral regularities—common language and rituals - Norms—behavior standards including how much work to do - Dominant values—major values expected to be shared - High product quality, low absenteeism, high efficiency - Philosophy—beliefs how to treat employees and/or customers - Rules—guidelines related to getting along in the organization - Organizational climate—overall "feeling" conveyed - Physical layout, the way participants interact, and the way members of the organization treat customers and other outsiders

What is merit pay?

- Compensation tied to measures of performance achievements during a specific time period - High pay achieved at high performance levels - Merit criteria can be hard to measure - Merit pay can be seen as "catch-up" pay

What is hollow design?

- Core competencies such as product design and marketing kept in house - Entire noncore processes such as manufacturing or customer service outsourced to vendors who do them cheaper and faster

What is profit-sharing?

- Employees share in increased organizational profits with other employees - Not all organizational profit increases and decreases are a direct result of employee efforts

Cultural values

- Everyone has useful ideas and closest to problem usually have best - Learning flows up and down and new ideas are important - Mistakes are learning opportunities

What is a bonus?

- Extra pay for performance that meets certain criteria or is at a level above expectations - Bonus pay favored over fixed pay increases

What is Network Design?

- Horizontal, Hollow, and Modular - Alternatives to traditional hierarchical or functional designs - Called network designs because they are boundaryless due to information technology and globalization

What types of issues can be faced when changing organizational cultures for M&s, relationship enterprises and economic crisis?

- M&A: different structures, power bases, and emotions - Relationship Enterprises: separate companies acting as single firm - Economic Crisis: effect of culture on ethics and long-term survival

Talk about the effectiveness of pay

- Money can be a motivator - The more people get, the more they want - Pay cut seen as "insult" and indication of low value - Money means different things to different people - Rewarding team performance is effective

What are stock options?

- Opportunity to buy shares of stock in the future at a predetermined fixed price - Typically used with senior-level managers - If executives increase organizational performance, value of company stock will also rise

What is an group incentive plan pay for performance?

- Pay everyone to work together to reduce cost and increase productivity - Gainsharing, profit sharing, employee stock ownership plan - Limitations—equal reward distribution to non-deserving individuals, long time until received, reward expectation over time

What is an individual incentive plan pay for performance?

- Pay people based on output or quality - Commission, bonus, stock options - Limitations—excessive pay leading to poor ethical decisions and competition between individuals

What is recognition as a reward?

- Recognition versus Money - Recognition can happen anytime - Recognition can take different forms, large or small - Recognition of and help with work/family responsibilities increases employee loyalty - Recognition of creativity important for competitive advantage - Recognition program must be fair and recipients viewed as deserving

What are benefits as rewards?

- Traditionally Offered Benefits - Mandated Benefits (Social Security, Workers' Compensation, Family and Medical Leave Act) - Traditional Benefits(Life, Disability, and Health Insurance, Pension (IRA, 401K),Time Off (paid time off, vacation, sick leave)) •Newer Benefits (Wellness Programs, Life Cycle Benefits (childcare, elder care))

How does an organizational culture start?

1. A single person (founder) has idea for new business 2. Founder brings in key people with common vision 3. Founding group acts together to create an organization by raising capital, obtaining patents, incorporating, finding a location, etc.) 4. Others brought into company; common history is built Mcdonalds and Walmart did this

How to support givers to keep them at the top?

1. Protect givers from burnout (set boundaries) 2. Encourage help-seeking (helps others become givers too!) 3. Get the right people on the bus (one taker will make givers stop helping) Keep the wrong people off the bus!

Once an organizational culture is started and begins to develop, there are a number of practices that can help solidify the acceptance of core values and ensure that the culture maintains itself. These practices can be described in terms of several socialization steps. What are they?

1. Selection•Careful selection of entry-level candidates using standardized procedures to find personal styles and values that "fit" with culture 2. Job Placement: Teach vulnerability, promote cohesiveness 3. Job Mastery: Provide field experience, training program 4.Measuring/Rewarding Performance: Reinforce cultural values 5. Adherence to Important Values: Get employees to accept values, trust organization 6. Reinforcing the Stories and Folklore: Validate culture and way of doing things 7. Recognition and Promotion: Reward culture role models

What is a virtual organization?

A company outside a company created to respond to an exceptional market opportunity that is often temporary Key attributes •Technology—informational networks to increase connections •Opportunism—less permanent, less formal partnerships•No borders—more cooperation among competitors & suppliers •Trust—more dependence on other companies •Excellence—core competency from all leading to best overall company •

learning organization theory

A theory of formal organizations that developed on the premise that rational planning is not sufficient for an organization to survive in a rapidly changing environment such as the one in which we live, that formal organizations must become complex systems that are capable of constant learning

How to catch the agreeable taker?

Can you give me the names of 4 people who's careers you have fundamentally improved? Takers will give names of bosses Givers will name people below them

What is commission beyond sales?

Commission determined by customer satisfaction and sales team outcomes

What is organizational design?

Creation or reshaping of the organization's structure

_____ givers give the critical feedback that nobody wants to hear.

Disagreeable

What is organizational learning?

Emphasizes innovation and creativity over adapting to change

What are Employee Stock Ownership Plans (ESOPs)?

Employees gain a major stake in the ownership of the firm by being given stock or being allowed to purchase stock at a price below market value

What is gain sharing?

Employees share with the group or team the net gains from productivity improvements - Reduced product damage, complaints, and accidents

What's the difference between adaptive learning and generative learning?

Generative learning describes a style of learning that incorporates existing knowledge combined with new ideas, while adaptive learning is data-driven and is continually modifying the pathways of learning to change and improve over time for each individual. Using adaptive learning allows you to identify knowledge gaps and changes the content in order to provide a better experience for each individual, creating a unique and truly enjoyable learning environment.

Givers are the worst performers. So who are the best performers?

Givers! They are overrepresented at the bottom AND the top. Not takers: they tend to rise quickly and also fall quickly.

What are the 3 radical redesigns?

Greenfield, Rediscovery, network

What is horizontal design?

Improves coordination and communication Principles - Organized around workflow process, not the task - Flattened hierarchy and use of teams to manage everything - Team performance rewarded - Customer satisfaction as driver of performance - Supplier and customer contact maximized - Fully informed and trained employees

What are the two types of Pay for Performance?

Individual Incentive Plans and Group Incentive Plabs

There's givers and takers. What are most people?

Matchers (I'll scratch your back if you scratch mine)

What is money as a reward?

Money associated with achievement and recognition, status and respect, freedom and control, and power

Is agreeableness/disagreeableness correlate with givers and takers?

No

What is the contingency approach?

No single best way to organize; design must be fitted to existing environmental conditions

What is modular design?

Parts of product or service outsourced instead of entire processes (e.g., Nissan example where frame, dashboard, and seats are made by subcontractors)

What is rewarding leadership effectiveness?

Pay based on employee satisfaction measure to recognize people management skills of leaders

What is pay for knowledge?

Pay given for acquiring additional training

What is skill pay?

Pay given for demonstrated skills rather than the job performed

What is incentive pay?

People paid based on incentives met (e.g., commission)

What are takers?

People who are self-serving in their interactions. Its all about what can you do for me.

What is a giver?

People who say What can I do for you?

What was Chester Barnard's contribution to organization theory?

Proposed a comprehensive theory of cooperation in formal organizations. •Formal organization—system of coordinated activities of 2 or more •Believed that authority should come from the bottom up•Put emphasis on importance of human element in organization

Define organizational culture.

Shared norms and values that guide employee behavior

What are open-systems?

System made up of interacting parts from external environment

What is pronia?

The delusion that other people are plotting your well-being

What are life cycle benefits?

These are based on a person's stage of life and include such things as child care and elder care.

What is Network Design (quiz)?

creating distribution networks based on tradeoff decisions between cost & sophistication of distribution system

What is meant by presence of tension, which is a characteristic of learning organizations?

creative tension/motivation to learn

What is rediscovery radical redesign?

return to previously successful design like General Electric

Organizational culture perceptions not shared to same degree, resulting in a dominant culture and subcultures. What is a dominant culture?

set of core values shared by majority

Organizational culture perceptions not shared to same degree, resulting in a dominant culture and subcultures. What is a subculture?

set of values shared by a small minority. Typically a result of problems or experiences shared by certain unit

What is meant by systems thinking, which is a characteristic of learning organizations?

shared vision and openness to new ideas

What are the two types of learning?

single loop and double loop

What is the Greenfield radical redesign?

start from clean slate, totally different design, Southwest, Google

The agreeable takers is AKA the ____

taker

Paranoia is caused by ___

takers

When we feel safe, the natural reaction is

trust and cooperation (think Paleolithic era: Danger!)

What is the agency theory?

•Explains how managers differ from owners in using pay and other compensation to run the organization•Owners concerned with increasing stockholder value•Managers concerned with job tenure and short-term performance

What are the 3 characteristics of learning organizations?

•Presence of Tension—creative tension (motivation to learn) •Systems Thinking—shared vision and openness to new ideas •Culture—high value placed on process of learning

What are the key attributes of a virtual organization?

•Technology—informational networks to increase connections •Opportunism—less permanent, less formal partnerships•No borders—more cooperation among competitors & suppliers •Trust—more dependence on other companies •Excellence—core competency from all leading to best overall company

What is meant by culture, which is a characteristic of learning organizations?

high value placed on process of learning

What is single loop learning?

improving organization's capacity to achieve known objectives (routine and behavioral learning)

What is double loop learning?

reevaluating objectives and the beliefs surrounding them (changing the organizational culture)