MGT 3379 Exam 4

strategic constituency satisfaction

- A strategic constituency is any group of individuals who have some stake in the organization - for example, resource providers, users of the organization's products or services, producers of the organization's output, groups whose cooperation is essential for the organization's survival, or those whose lives are significantly affected by the organization

goal accomplishment

- Key organizational results or outputs are compared with previously stated goals or objectives - Goal accomplishment is the oldest and most widely used effectiveness criterion for organizations - Deviations, either plus or minus, require corrective action

organizational development (OD)

- OD is about planned change aimed at increasing an organizations ability to improve itself as a human and effective system - OD takes theories and results from the lab and applies them into real life work settings - OD takes a distinctively democratic and participative approach to solving conflicts and problems

holistic wellness

- a broad interdisciplinary approach that goes beyond stress reduction by advocating that people strive for personal wellness in all aspects of their lives - involved inexpensive but often behaviorally difficult lifestyle changes

change agent- employee relationships

- above points build trust and improve agent recipient relationship

three general types of change

- adaptive - innovative - radically innovative

resistance to change

- any thought, emotion, or behavior that does not align with real or potential changes to existing routines - people resist both actual and imagined events - resistance is one of the three possible influence outcomes—the other two being compliance and commitment - viewing change in this way is helpful because managing resistance and change are fundamentally attempts to influence employees to think, feel, or behave differently

radically innovative change

- at the high end of the continuum of complexity, cost, and uncertainty - the most difficult to implement and tend to be the most threatening to managerial confidence and employee job security - At the same time, however, radically innovative changes potentially realize the greatest benefits - must also be supported by an organization's culture - Organizational change is more likely to fail if it is inconsistent with any of the three levels of organizational culture: observable artifacts, espoused values, and basic assumptions

systems model of change

- based on the notion that any change, no matter how large or small, has a cascading effect throughout an organization - this model includes inputs, strategic plans, target elements of change, and outputs - practical model to diagnose what to change and how to evaluate the success of a change effort

internal forces for change

- comes from within the organization - forces may be subtle (low job satisfaction) - may manifest in outward signs (low productivity, conflict, or strikes)

manipulation and co optation

- commonly used when other tactics will not work or are to expensive - pro: it can be relatively quick and inexpensive to fix a resistance problem - con: leads to future problems if people feel manipulated

facilitation and support

- commonly used when people are resisting because of adjustment problems - pro: no other approach works as well with adjustment problems - con: can be time consuming and expensive and still fail

organizational processes and practices

- dont assume people are consciously resisting change - important for management to obtain employee feedback about obstacles to change - consider modifying the targeted elements of change

a contingency approach to overcoming resistance change

- education and communication - participation and involvement - facilitation and support - negotiation and agreement - manipulation and co optation - explicit and implicit coercion

biofeedback

- electronic monitors trains people to detect muscular tension, muscle relaxation is then used to alleviate this symptom of stress - expensive due to cost of equipment but can be used to evaluate effectiveness of other stress reducing programs

how does OD influence organizational outcomes

- employee satisfaction with change was higher when top management was highly committed to the change effort - varying one target element of change created changes in other target elements. also, there was a positive relationship between individual behavior change and organizational-level change. - interventions using more than one OD technique were more effective in changing job attitudes and work attitudes than interventions that relied on only one human process or structural approach. - US and European firms used OD interventions more frequently than firms from China and Japan, and some OD interventions are "culture free" and some are not.

methods of overcoming resistance to change

- employees are more likely to resist when they perceive that the personal costs of change outweigh the benefits so managers should: 1. provide as much information as possible to employees 2. inform employees about the reasons/rationale 3. conduct meetings to address employees questions 4. provide employees the opportunity to discuss how to the proposed change might affect them

innovative change

- falls midway on the continuum of complexity, cost, and uncertainty - more complex, as organizations need to learn new behaviors, as well as create, implement, and enforce new policies and practices - these situations have both more uncertainty and cause more fear than adaptive changes

open boundary (hollow, modular, virtual) pros

- generate superior returns - focus on what they do best - taps into people specialties

open boundary (hollow, modular, virtual) cons

- give up expertise and control when outsourced - have to get results from people without having direct authority - need partners that can be trusted

general effectiveness criteria

- goal accomplishment - internal processes - strategic constituency satisfaction - resource acquisition

the seeds of innovation

- hard work in a specific direction: Most innovations come from dedicated people diligently working to solve a well-defined problem. This hard work can span many years - hard work with direction change: Innovations frequently occur when people change their approach toward solving a problem. In other words, hard work closes some doors and opens others - curiosity and experimentation: Innovations can begin when people are curious about something of interest, and experimentation is used to test for the viability of curious ideas. This seed of innovation requires an organizational culture that supports experimentation - wealth and money: Innovations frequently occur because an organization or an individual simply wants to make money. - necessity: Many innovations grow from the desire to achieve something or to complete a task that is needed to accomplish a broader goal - combination of seeds: Many innovations occur as a result of multiple factors

key internal forces for change

- human resource problems or prospects: these problems stem from employee perceptions about how they are treated at work and the match between individual and organization needs and desires - managerial behaviors and decisions: excessive interpersonal conflict between managers and their subordinates or the board of directors is a sign that change is needed

horizontal structure pros

- improve communication and coordination - teams can come up with creative solutions - develop new products faster - knowledge sharing

recipient characteristics

- includes a variety of individual differences: dispositional resistance to change, surprise and fear of the unknown, fear of failure, loss of status and or job security, peer pressure, and past success - represent the actions (engaging in new behaviors) or inactions (failing to engage in new behaviors) displayed by recipients - recipient perceptions of change can contribute to resistance

4 critical high-level internal processes that managers are encouraged to measure and manage. These processes influence productivity, efficiency, quality, safety, and a host of other internal metrics

- innovation - customer service and satisfaction - operational excellence - being a good corporate citizen

cognitive restructuring

- irrational or maladaptive thoughts are identified and replaced with those that are rational or logical - expensive because it requires a trained psychologist or counselor

innovation

- is the creation of something new that makes money; it finds a pathway to the consumer - more likely to occur when organizations have the proper supporting forces

key assumptions underlying lewins change model

- learn and unlearn: the change process involves learning something new, as well as discontinuing or unlearning current attitudes, behaviors, or organizational practices - motivation: change will not occur unless there is motivation to change. This is often the most difficult part of the change process - people make or break: people are the key to all organizational changes. Any change, whether in terms of structure, group process, reward systems, or job design, requires individuals to change. Organizations don't change if employee behaviors don't change - resistance: resistance to change is found even when the goals of change are highly desirable. -reinforce: effective change requires reinforcing new behaviors, attitudes, and organizational practices.

physical and mental health problems caused by stress

- lessened ability to ward off illness and infection - high blood pressure - coronary artery disease - tension headaches - back pain - gas problems - psychological well being

horizontal structure cons

- lines of authority less clear - works when specialization is not important - requires employees to rise to the challenge of empowerment

how to manage stress

- muscle relaxation - biofeedback - meditation - cognitive restructuring- most effective - holistic wellness - leisure activities

4 components of readiness for change

- necessity for change - top management support for change efforts - personal ability to cope with changes - perceived personal consequences of change

practical research insights

- no one type (mechanistic or organic) is superior to the other- depends on the environment - mechanistic: works when environment is stable and certain - organic: works when environment is unstable and uncertain

the 3 levels of organizational culture

- observable artifacts - espoused values - basic underlying assumptions

failure

- occurs when an activity fails to deliver its expected results or outcomes - failure or mistakes are generally feared and penalized, which creates an environment of risk aversion. This in turn reduces innovation - organizations learn from both success and failure, but learning is stronger and longer lasting when it is based on failure

4 targeted elements of change

- organizational arrangements - social factors - methods - people

external forces for change

- originate outside the organization - can apply to the organization, competitors, or the entire industry - dramatically affects why an organization exists and which markets it will participate in and how - external changes can either present new opportunities for organizations to realize and grow or they can cause the ultimate demise or failure of a business

systems model of change - strategic plans

- outlines an organizations long term direction and the actions necessary to achieve planned results - based on SWOT analysis: strengths, weaknesses, opportunities, and threats—analysis. This analysis aids in developing an organizational strategy to attain desired goals, such as profits, customer satisfaction, quality, adequate return on investment, and acceptable levels of turnover and employee satisfaction.

leader reactions to critical incidents

- people learn and pay attention to emotions exhibited by leaders - positive emotions spread - negative emotions travel faster and further

design of physical space

- physical spacing among people and buildings - location of office furniture

meditation

- practitioners relax by redirecting their thoughts away from themselves often following a structured procedure to significantly reduce mental stress - least expensive, simple to implement, and can be practiced almost anywhere

2 types of cognitive appraisals

- primary appraisal: perceptions of whether a stressor is irrelevant, positive, or negative - secondary appraisal: perceptions of how able you are to deal or cope with a given demand

overcoming resistance to change

- resistance is a form a feedback - managers must understand why it is occurring before trying to overcome it

change agent - recipient relationship

- resistance is reduced when there is a positive trusting relationship

dispositional resistance to change

- stable personality trait - individuals with a high dispositional resistance to change are "less likely to voluntarily initiate changes and more likely to form negative attitudes toward the changes [they] encounter

core innovation

- targeted at existing customers and they rely on optimizing existing products/services for existing customers - more incremental and are less likely to generate significant amounts of new revenue

unfreezing

- the focus of this stage is to create the motivation to change - individuals are encouraged to replace old behaviors and attitudes with new ones (desired by management) - the initial challenge in the unfreezing process is creating and communicating a convincing reason to change

refreezing

- the goal of this stage is to support and reinforce the change. - change is supported by helping employees integrate the changed behavior or attitude into their normal way of doing things - this is accomplished by first giving employees the chance to exhibit the new behaviors or attitudes - once this happens, positive reinforcement is used to encourage the desired change.

adaptive change

- the least complex, costly, and uncertain. - involves reimplementation of a change in the same organizational unit at a later time or imitation of a similar change by a different unit - adaptive changes are not particularly threatening to employees because they are familiar

organizations can support innovation by providing the appropriate resources:

- the necessary human capital - the right organizational culture and climate - the appropriate resources - the required structure and processes

occupational stress- cognitive appraisals

- the process by which people evaluate the meaning of events and demands (e.g., stressors) for their own well-being - put another way, what makes stressors actually stressful is how they are cognitively appraised.

changing

- this is where the rubber meets the road and change occurs. - because change involves learning and doing things differently, this stage entails providing employees with new information, new behavioral models, new processes or procedures, new equipment, new technology, or new ways of getting the job done.

three stages of lewins change model

- unfreezing - changing - refreezing

muscle relaxation

- uses slow deep breathing and systematic muscle tension relaxation - inexpensive and easy to use, may need a trained professional to implement

surprise and fear of the unknown

- when innovative or radically different changes are introduced without warning, affected employees become fearful of the implications - the same is true when managers announce new goals without explaining the specific plans for how the goals will be achieved.

escape strategy

- you avoid or ignore stressors - can be beneficial if you have no control over the stressors or their causes.

causes of resistance to change

1. change agents characteristics, actions, inactions, and perceptions 2. quality of the relationship between change agents and change recipients

how to fight fatigue

1. staffing 2. scheduling 3. environment 4. education

innovation vs integration

Innovation also is different from integration, which involves actions associated with getting multiple people, units, departments, functions, or sites to work together in pursuit of a goal, idea, or project

innovation vs invention

Innovation is different from invention, which entails the creation of something new, and creativity, which was defined in Chapter 11 as a process of developing something new or unique

Organizational Culture

The set of shared, take for granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments

Organization

a system of consciously coordinated activities or forces of two or more persons

loss of status and/or job security

administrative and technological changes that threaten to alter power bases or eliminate jobs generally trigger strong resistance.

which level of organizational culture is hardest to change?

basic underlying assumptions

readiness for change

beliefs, attitudes, and intentions regarding the extent to which changes are needed and the capacity available to successfully implement those changes

impacts outcomes at multiple levels

culture affects outcomes at the individual, group/team, and organizational levels

open system

depends on the constant interaction with the environment for survival

Staff personnel

do background research and provide technical advice and recommendations to their line managers

symptom management strategy

focus on reducing symptoms of stress such as relaxation, meditation, medication, or exercise to manage the symptoms of occupational stress.

internal processes

focuses on "what the organization must excel at" to effectively meet its financial objectives and customers' expectations

line managers

generally have the authority to make decisions for their units

stress outcomes

has psychological/attitudinal, behavioral, cognitive, and physical health consequences or outcomes

slogans, language, acronyms, and sayings

have a profound effect on the organization over time because they are easy to remember and repeat.

Sense making device

helps employees understand why the organization does what it does and how it intends to accomplish its long term goals

Jane works in an organization where quality and efficiency are highly valued. this organizations culture is likely:

hierachy

general idea behind organizational design

is that organizations are more effective or successful when their structure supports the execution of corporate strategies.

learned over time

it is passed on to new employees through the process of socialization and mentoring

large organizations have what characteristic

narrower spans of control

division of labor

occurs when the common goal is pursued by individuals performing separate but related tasks

Using the contingency approach to organizational design, which one of these would be the best structure for an organization that has a small staff and does not have the technical expertise needed to be successful?

open boundary structure

...

organizational culture influences the type of organizational structure adopted by a company and a host of internal processes (including human resource practices, policies, and procedures) implemented in pursuit of organizational goals. these organizational characteristics then affect a variety of group and social processes

information distribution

pertains to the processes or systems that people, groups, or organizational units use to share information among themselves

stories, legends, myths

powerful way to send messages to others about the values and behaviors that are desired by the organization.

Span of control

refers to the number of people reporting directly to a given manager

Social system stability

reflect the extent to which the work environment is perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed

developmental relationship strength

represents the quality of relationship among the individual and those involved in his or her developmental network

organizational systems

reveal basic dimensions of organizational structure

role modeling, coaching, training

structure training to provide an in-depth introduction about their organizational values' basic underlying assumptions.

Janice is experiencing a stressful situation at work. She reacts to the situation by going out drinking after work. Which coping strategy is Janice using?

symptom management strategy

transformational innovation

targeted at creating new markets and customers and they rely on developing breakthroughs and inventing things that don't currently exist

Organizational socialization

the process by which a person learns the values, norms, and required behaviors which permit them to participate as a member of an organization

Mentoring

the process of forming and maintaining intensive lasting developmental relationships between a variety of developers and a junior person

seed of innovation definition

the starting points for organization innovation

organization design

the structures of accountability and responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures

Influences our behavior at work

this is why "culture eats strategy for breakfast"

presenteeism

when employees show up but are sick or are in no condition to work productively

boundary-less organization

where management has largely succeeded in breaking down barriers between internal levels, job functions and departments, as well as external barriers between the association (organization) and those whom it does business

realistic job preview

- involves giving recruits a realistic idea of what lies ahead by presenting both positive and negative aspects of the job. - Research revealed that RJPs were related to higher performance and to lower attrition from the recruitment process. Results also demonstrated that RJPs lowered job applicants' initial expectations and led to lower turnover among those applicants who were hired.

rites and rituals

- planned and unplanned activated and ceremonies - used to celebrate important events or achievements

Sustainability

- represents a company's ability to make profit without sacrificing the resources of its people, the community, and the planet - referred to as "being green"

mechanistic organization

- rigid bureaucracies with strict rules, narrowly defined tasks, and top-down communication - The "orderliness" of this structure is expected to produce reliability and consistency in internal processes, thereby resulting in higher efficiency, quality, and timeliness. - It is important to note that being mechanistic does not mean that an organization should not be responsive to employee and customer feedback

four psychosocial functions that enhanced career development

- role modeling - acceptance and confirmation - counseling - friendship

five career functions that enhanced career development

- sponsorship - exposure and visibility - coaching - protection - challenging assignments

how a company handles basic HR duties

for recruitment, selection, development, promotion, layoffs, and retirement of people—defines and perpetuates a company culture.

product innovation

a change in the appearance or the performance of a product or service or the creation of a new one

process innovation

a change in the way a product or service is conceived, manufactured or distributed

stress

an adaptive response to environment demands, referred to as stressors, that produce adaptive responses that include physical, emotional, and behavioral reactions

internal virtual structures primarily relies on the use of of information technology but also requires managers to consider 3 key issues:

- Do I have the right people? Not everyone is suited to work virtually. This implies that it is essential for managers to consider the personal characteristics, needs, and values of people who might work virtually. - How often should people get together? There is no clear answer to this question. Our recommendation is to use a contingency approach. More frequent contact is needed at the start of a project, and we suggest that regular milestone meetings should be held online - What type of technology should be used to coordinate activities? Of course remote workers can stay connected with a host of technology. The choice depends on the skills and resources at hand

Hierarchy of authority

- also called the chain of command - a control mechanism dedicated to making sure the right people do the right things at the right time - managers have maintained the integrity of the hierarchy of authority by adhering to the unity of command principle - unity of command principle specifies that each employee should only report to one manager

hollow structure

- also known as a network structure - is designed around a central core of key functions and outsources other functions to other companies or individuals who can do them cheaper or faster - The more processes that are outsourced, the more the resulting organization is "hollow"—and focused on what it does best - A hollow structure is useful when an organization is faced with strong price competition and there are enough companies to perform the required outsourced processes

practical application of organizational socialization research

- Effective onboarding programs result in increased retention, productivity, and rates of task completion for new hires. This reinforces the conclusion that managers should avoid a haphazard, sink-or-swim approach to organizational socialization because formalized and proactive socialization tactics positively affect new hires. - More and more organizations use socialization tactics to reinforce a culture that promotes ethical behavior. Managers are encouraged to consider how they might best set expectations regarding ethical behavior during all three phases of the socialization process. - Managers need to help new hires integrate within the organizational culture and overcome the stress associated with working in a new environment. The type of orientation program used to socialize employees affects their expectations and behavior. - Support for the stage model is mixed, different techniques are appropriate for different people at different times Although there are different stages of socialization, they are not identical in order, length, or content for all people or jobs. Managers are advised to use a contingency approach toward organizational socialization - Managers should pay attention to the socialization of diverse employees. Research has demonstrated that diverse employees, particularly those with disabilities, experienced different socialization activities than other newcomers. In turn, these different experiences affected their long-term success and job satisfaction.

workflow and organizational structure

- Hierarchical structures are more likely to embed an orientation toward control and authority than a flatter organization - leaders from many organizations are increasingly reducing the number of organizational layers in an attempt to empower employees and increase employee involvement.

Organizational activities and processes

- Leaders pay special attention to those activities, processes and outcomes that they can measure, and control. - This in turn sends strong messages to employees about acceptable norms and behavior.

Conclusions about organizational culture

- Organizational culture is related to measures of organizational effectiveness. This means that an organization's culture can be a source of competitive advantage. - Employees are more satisfied and committed to organizations with clan cultures. These results suggest that employees prefer to work in organizations that value flexibility over stability and control and those that are more concerned with satisfying employees' needs than customer or shareholder desires. - Innovation and quality can be increased by building characteristics associated with clan, adhocracy, and market cultures into the organization. Managers may want to use a combination of all three types of culture to produce these outcomes. - An organization's financial performance (growth in profit and growth in revenue) is not strongly related to organizational culture. Managers should not expect to increase financial performance immediately by trying to change their organization's culture. (This is not an argument against all cultural change. Some changes in culture can improve competitive advantage, which then results in financial benefits.) - Companies with market cultures tend to have more positive organizational outcomes. Managers are encouraged to consider how they might make their cultures more market oriented.

organizational memory

- Organizational memory is not an object. Rather, it represents the combined process of "encoding, storing, and retrieving the lessons learned from an organization's history, despite the turnover of personnel. - Learning will not last unless the organization finds a method to save it. Knowledge needs to put into some type of repository or organizational memory if it is to be used in the future.

horizontal design

- Organizations defined by a horizontal approach work hard to flatten hierarchy and organize people around specific segments of the workflow - A horizontal structure, sometimes called a team or process structure, relies on a horizontal workflow and attempts to dissolve departmental boundaries and reporting relationships as much as possible

traditional designs

- Organizations defined by a traditional approach tend to have functional, divisional, and/or matrix structures - Each of these structures relies on a vertical hierarchy and attempts to define clear departmental boundaries and reporting relationships

open design

- Organizations defined by an open approach tend to have hollow, modular, or virtual structures - Each of these structures relies on leveraging technology and structural flexibility to maximize potential value through outsourcing and external collaboration

4 Characteristics of Organizational Culture

- Shared concept - learned over time - influences our behavior at work - impacts outcomes at multiple levels

information interpretation

- This step is all about making sense of the information that organizations have acquired and distributed - It is important to remember that this step is affected by the perceptual biases discussed in Chapter 4 and the decision making biases reviewed in Chapter 11.

networked virtual structures

- This structure is used to establish a collaborative inter-organizational network of independent firms or individuals in order to create a virtual entity - The networked individuals or companies join forces because they each possess core competencies needed for a project or product - Once again, a variety of information technology is used to coordinate the efforts of the different members within the network

closed system

- a self sufficient entity - it is "closed" to the surrounding environment

information acquisition

- also known as scanning - refers to the process through which an organization obtains information from internal and external sources - Because this is the first step of learning, it is advantageous for organizations to include breadth in their acquisition of information.

the three phase model of organizational socialization

- anticipatory socialization - encounter - change and acquisition

encounter

- begins when employment contract has been signed - employees come to learn what the organization is really like. It is a time for reconciling unmet expectations and making sense of a new work environment. - Many companies use a combination of orientation and training programs to socialize employees during the encounter phase. Onboarding is one such technique. Onboarding programs help employees to integrate, assimilate, and transition to new jobs by making them familiar with corporate policies, procedures, culture, and politics and by clarifying work-role expectations and responsibilities.

Types of organizational culture

- clan culture - adhocracy culture - market culture - hierarchy culture

matrix structure

- combines a vertical structure with an equally strong horizontal overlay. This generally combines functional and divisional chains of command to form a grid with two command structures, one shown vertically by function, and the other shown horizontally, by product line, brand, customer group, or geographic region - Organizations use matrix structures when they need stronger horizontal alignment or cooperation in order to meet their goals. - Such a structure can provide a reasonable counterbalance among important stakeholders - Application of a matrix structure is not easy. Matrix organizations have a bad reputation for being too complex and confusing. The reality is that it takes much more collaboration and integration to effectively implement this structure

negotiation and agreement

- commonly used when someone or some group will clearly lose out in a change and that group has considerable power to resist - pro: sometimes it is relatively easy to avoid major resistance - con: to expensive if it alerts others to negotiate for compliance

explicit and implicit coercion

- commonly used when speed is essential and the initiators of change posses considerable power - pro: it is speedy and can overcome any kind of resistance - con: risky if it leaves people mad at the initiators

participation and involvement

- commonly used when the initiators do not have all the information they need to design change and others have considerable power to resist - pro: people who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan - con: time consuming if participators design an inappropriate change

education and communication

- commonly used when there is a lack of information or inaccurate information and analysis - pro: once persuaded, people will often help with the implementation of the change - con: time consuming if a lot of people are involved

systems model of change - target elements of change

- components of an organization that may change - used to diagnose problems and identify change related solutions

kotters steps for leading organizational change purpose

- concentrates on effective implementation - does not help in diagnosing the need for or targets for change - provides specific recommendations about behaviors and activities needed to lead organizational change

control strategy

- consists of using behaviors and cognitions to directly anticipate or solve problems - has a take charge tone - health and other benefits for control coping - people are more apt to use control coping when they possess high self-esteem, self-efficacy, and problem-solving skills

occupational stress- coping strategies

- control strategy - escape strategy - symptom management strategy

5 elements that drive organizational culture

- the founders values - the industry and business environment - the national culture - the organizations vision and strategy - the behavior of leaders

common denominators of organizations

- coordination of efforts - aligned goals - division of labor - hierarchy of authority

change agent characteristics

- decisions that disrupt cultural traditions or group relationships - personality conflicts - lack of tact or poor timing - leadership style - failing to legitimize change

undesirable effects of workplace stress

- decreases in job satisfaction, organizational commitment, organizational citizenship behavior, positive emotions, and performance. - increases in emotional exhaustion, burnout, absenteeism, and turnover.

key external forces for change

- demographic characteristics - technological advancements: technology is a common and often cost-effective tool for improving productivity, competitiveness, and customer service - shareholder, customer and market changes - social and political pressures

Drivers and flow of organizational culture

- drivers of culture - organizational culture - organizational structure and internal processes - group and social processes - work attitudes and behaviors - outcomes

Divisional structure

- employees are segregated into organization groups based on similar products or services, customers or clients, or geographic regions - sometimes called a product structure or profit center approach - As with functional structures, some organizations have concluded that using a divisional structure can also create silos within the organization

change and acquisition

- employees master important tasks and roles and adjust to their groups values and norms - This will occur only when employees have a clear understanding about their roles and they are effectively integrated within the work unit. - Finally, success during this phase is enhanced when companies take a long-term approach toward socialization.

espoused values

- explicitly stated values and norms that are preferred by an organization - They are generally established by the founder of a new or small company and by the top management team in a larger organization. Most companies have a short of list of espoused values. Because espoused values represent aspirations that are explicitly communicated to employees, managers hope that those values will directly influence employee behavior. Unfortunately, aspirations do not automatically produce the desired behaviors because people do not always "walk the talk."

adhocracy culture

- external focus and value flexibility - Creation of new products and services is the strategic thrust of this culture, which is accomplished by being adaptable, creative, and fast to respond to changes in the marketplace. - Adhocracy cultures do not rely on the type of centralized power and authority relationships that are part of market and hierarchical cultures. They empower and encourage employees to take risks, think outside the box, and experiment with new ways of getting things done. - recent article in The Wall Street Journal noted that adhocracy-type cultures are decreasing in the United States as many companies are becoming risk averse.

organic organization

- flexible networks of multitalented individuals who perform a variety of tasks - more likely to use horizontal designs or those that open boundaries between organizations.

12 mechanisms for creating culture change

- formal statements - design of physical space - slogans, language, acronyms, and sayings - role modeling, training, coaching - explicit rewards, status symbols - stories, legends, myths - organizational activities and processes - leader reactions to critical incidents - rites and rituals - work flow and organizational structure - organizational systems and procedures and organizational goals

mixing effectiveness criteria : practical guidelines

- goal accomplishment approach: appropriate when goals are clear, consensual, time bound, and measurable - internal process approach: appropriate when organizational performance is strongly influenced by specific processes - strategic constituency approach: appropriate when powerful stakeholders can significantly benefit or harm the organization - resource acquisitions approach: appropriate when when inputs have a traceable effect on results or output

functional structure

- groups people according to the business functions they perform, for example, manufacturing, marketing, and finance - A manager is responsible for the performance of each of these functions, and employees tend to identify strongly with their particular function, such as sales or engineering - Some organizations have concluded that using a functional structure divides people too much, ultimately creating silos within the organization. This in turn detracts from the extent to which employees collaborate and share best practices across functions

categories of organizational design

- horizontal - open - traditional

what can be done to improve organizational learning?

- improve on the five steps of organizational learning - realize leader behavior and organizational culture drive organizational learning

occupational stress- potential stressors

- individual level: job demands are the most common, but work overload, unclear or conflicting expectations, everyday hassles, perceived control over events occurring in the work environment, and job characteristics can also be problematic - group level: managers create stress for employees by (1) exhibiting inconsistent behaviors, (2) failing to provide support, (3) showing lack of concern, (4) providing inadequate direction, (5) creating a high-productivity environment, and (6) focusing on negatives while ignoring good performance - organizational level: organizational culture is a potential stressor in itself. For instance, a high-pressure environment that fuels employee fear about performing up to standard can increase the stress response. The increased use of information technology is another source of organizational stress, as continual connectivity causes employees to be "on call" anytime - extra organizational: those caused by factors outside the organization. Socioeconomic status is another extra-organizational stressor. Stress is higher for people with lower socioeconomic status, which represents a combination of income, education, and occupation.

5 subprocesses of organizational learning

- information acquisition - information distribution - information interpretation - knowledge integration - organizational memory

myths about innovation

- innovation involves and epiphany or eureka moment - innovation can be systematized

systems model of change - inputs

- intended change must align with: mission: the reason an organization exists vision: a compelling future state for an organization - readiness for change

Clan culture

- internal focus and they value flexibility rather than stability and control -effectiveness achieved by encouraging collaboration, trust, and support - Employee focused and strives to instill cohesion through consensus and job satisfaction and commitment through employee involvement. Clan organizations devote considerable resources to hiring and developing their employees, and they view customers as partners. Collaborating is the strategic thrust of this culture.

hierarchy culture

- internal focus, which produces a more formalized and structured work environment, and values stability and control over flexibility. - This orientation leads to the development of reliable internal processes, extensive measurement, and the implementation of a variety of control mechanisms. - Effectiveness in a company with this type of culture is likely to be assessed with measures of efficiency, timeliness, quality, safety, and reliability of producing and delivering products and services. - Hierarchical cultures have been found to have both negative and positive effects.

types of virtual structures

- internal virtual structure - networked virtual structure

fear of failure

- intimidating changes on the job can cause employees to doubt their capabilities - self-doubt erodes self-confidence and cripples personal growth and development.

virtual structure

- is one whose members are geographically apart, usually working with e-mail and other forms of information technology, yet which generally appears to customers as a single, unified organization with a real physical location - The primary benefits of virtual structures are the ability for organizations to tap into a wider talent pool, to increase the speed in getting things done, and to reduce costs because there is less need for physical facilities and travel budgets - The nature of virtual organizations has expanded since their inception. Today, virtual structures are classified into two different types: internal and networked

anticipatory socialization

- occurs before an individual actually joins an organization - it is represented by information people have learned about different careers occupations, professions, and organizations - learned from current employees, social media and internet

decentralized decision making

- occurs when important decisions are made by middle and lower-level managers - used in organic organizations - more adaptive to changing situations

knowledge integration

- occurs when information is integrated across different sources - Integration leads to shared understanding among individuals and groups.

centralized decision making

- occurs when key decisions are made by top management - used in mechanistic organizations - more tightly controlled

learning organization

- one that proactively creates, acquires, transfers knowledge and that changes its behavior on the basis of new knowledge and insights - It is important to understand how organizations learn because learning is essential to an organization's continuous improvement and renewal over time. - As such, it is no surprise that organizational learning is positively associated with organizational performance and innovation.

Four functions of organization culture

- organizational identity - collective commitment - social system stability - sense making device

4 factors when determining span of control

- organizational size - skill level - organizational culture - managerial responsibilites

Basic underlying assumptions

- organizational values that have become so taken for granted over time that they become assumptions that guide organizational behavior. - They represent deep-seated beliefs that employees have about their company and thus constitute the core of organizational culture. - As you might expect, basic underlying assumptions are highly resistant to change.

contingency approach to organizational design

- organizations tend to be more effective when they are structured to fit the demands of the situation - One of the first design considerations is whether the organization would flourish with centralized or decentralized decision making. This distinction underscores the difference between mechanistic and organic organizations

internal virtual structures

- pertain to work arrangements that are used to coordinate the work of geographically dispersed employees working for one organization

matrix structure pros and cons

- pros: combines advantages of functional and divisional - cons: violates unity of command, decision making can be slow, political behavior can occur, requires extensive communication

divisional structure pros and con

- pros: increased focus on customers and products, flexibility in decision making - cons: divisions may focus on their own customer groups or products and exclude the rest of the organization

functional structure pros and cons

- pros: saves money, easy to apply quality standards - cons: works best in a stable environment, not applicable today

competing values framework (CVF)

- provides a practical way for managers to understand, measure, and change organizational culture - This research showed that measures of organizational effectiveness varied along two fundamental dimensions or axes. One axis pertained to whether an organization focuses its attention and efforts on internal dynamics and employees or outward toward its external environment and its customers and shareholders. The second was concerned with an organization's preference for flexibility and discretion or control and stability. Combining these two axes creates four types of organizational culture that are based on different core values and different sets of criteria for assessing organizational effectiveness.

resource acquisition

- relates to inputs rather than outputs - An organization is deemed effective in this regard if it acquires necessary factors of production such as raw materials, labor, capital, and managerial and technical expertise.

systems model of change - outputs

- represent the desired end results or goals of a change - should be consistent with organizations strategic plan - can be at the individual, group, or organizational level .....Change efforts are more complicated and difficult to manage when they are targeted at the organizational level. This occurs because organizational-level changes are more likely to affect multiple target elements of change shown in the model

key issues when making organizational design decisions

- strategy and goals: An organization's strategy is the cornerstone of determining the most appropriate design. Because corporate strategy requires an organization to decide how it will compete given both internal and external considerations, it is essential that organizational design be developed in tandem with establishing strategy. - technology: Technology represents the information technology, equipment, tools, and processes needed to transform inputs to outputs. Technology enables products and serviced to be created and distributed. This implies that the technology being used by a company is a key consideration in deciding the best way to organize in pursuit of strategic goals. - size: Size is indicated by things such as the number of employees, volume of sales, amount of assets, and geographical locations. Greater size generally requires more complex organizational designs - human resources: Human resources refers to the level of employees' human capital. Highly skilled employees typically prefer designs that allow freedom, autonomy, and empowerment. Flexible structures that allow for decentralized decision making are more likely to be a good design choice for organizations employing a large segment of highly skilled and professional employees.

good stress illustrates that

- stress is not merely a nervous tension - stress can have positive consequences - stress is not something to be avoided - the complete absence of stress is death - these points make it clear that stress is inevitable and needs to be managed, not escaped

Market culture

- strong external focus and value flexibility and control - Competition is the strategic thrust of these organizations. They have a strong desire to deliver results and accomplish goals. - Because this type of culture is focused on the external environment, customers and profits take precedence over employee development and satisfaction. The major goal of managers is to drive toward productivity, profits, and customer satisfaction.

explicit reward, status symbols

- strong impact on employees due to its highly visible and meaningful nature - reward systems are one of the strongest ways to embed organizational culture

past success

- success can breed complacency - it also can foster a stubbornness to change because people come to believe that what worked in the past will work in the future

horizontal structure

- teams or workgroups, either temporary or permanent, are created to improve collaboration and work on common projects - This horizontal approach to organizational design tends to focus on work processes. A process consists of every task and responsibility needed to meet a customer need, such as developing a new product or filling a customer order. Completing a process requires input from people in different functions, typically organized into a cross-functional team

modular structure

- the company assembles product parts, components, or modules provided by external contractors - like a hollow organization, uses outsourcing. But instead of outsourcing processes, it outsources parts of a product, such as components of a jet or subroutines of a software program. - The modular organization also is responsible for ensuring that the parts meet quality requirements, that the parts arrive in a timely fashion, and that the organization is capable of efficiently combining the parts into the final whole - This design is useful when a company can identify product modules and create design interfaces that allow it to assemble parts into a working order.

distinction between open and closed system

- the distinction is the matter of degree - because the world is partly closed and partly open, the key question is: how great a role does the environment play in the functioning of a system?

observable artifacts

- the physical manifestation of an organizations culture - its important to remember that artifacts are easier to change than the less visible aspects of organizational culture - Examples: Acronyms, manner of dress, awards, myths and stories told about organization, published lists of values, observable rituals and ceremonies, special parking spaces, decorations

formal statements

- using formal statements of: organizational philosophy, mission, vision, values, and materials used for recruiting, selection, and socialization. - represent observable artifacts

Enacted values

- values and norms that are actually exhibited or converted into employee behavior - They represent the values that employees ascribe to an organization based on their observations of what occurs on a daily basis. It is important for managers to reduce gaps between espoused and enacted values because they can significantly influence employee attitudes and organizational performance

personal and organizational implications

- you should foster a broad developmental network because the number and quality of your contacts will influence your career success - look to the consistency or congruence between your career goals and the type of developmental network at your disposal - a developers willingness to provide career and psychological assistance depends on the protege ability and potential and the quality of interpersonal relationship - become proficient at using social networking tools such as twitter linked in and Facebook - develop a mentoring plan - incorporate mentoring into the organizations leadership development programs

Truths about culture change

-Leaders are the architects and developers of organizational culture. This suggests that culture is not determined by fate. It is formed and shaped by the ongoing behavior of everyone who works at a company. -Changing culture starts with targeting one of the three levels of organizational culture—observable artifacts, espoused values, and basic underlying assumptions. The fastest way to start a culture change project is through the use of observable artifacts. That said, culture will not change in a significant way unless managers are able to change basic underlying assumptions. It takes time to change this deep seated aspect of culture. -Consider how closely the current culture aligns with the organization's vision and strategic plan. Remember the quote "culture eats strategy for breakfast" whenever you pursue culture change. It is essential that an organization's culture is consistent with its vision and strategic goals. A vision represents a long-term goal that describes "what" an organization wants to become. A strategic plan outlines an organization's long-term goals and the actions necessary to achieve those goals. -Use a structured approach when implementing culture change. Culture change is frequently met with resistance. This happens because people become accustomed to the culture and they prefer to leave things as they are.

counterproductive behaviors of stress

-yelling, verbal abuse, and violence toward others - frequency of drinking and taking illicit drugs

how OD works

1. diagnosis- what is the problem and its causes? 2. intervention- what can be done to solve the problem? 3. evaluation- is the intervention working? 4. feedback- what does the evaluation suggest about the diagnosis and the effectiveness of how the intervention was implemented?

kotters 8 steps for leading organizational change

1. establish a sense of urgency- unfreeze the organization by creating a compelling reason why change is needed 2. create the guiding coalition- create a cross functional, cross level group of people with enough power to lead change 3. develop a vision and strategy- create a vision and strategic plan to guide the change process 4. communicate the change vision- create and implement a communication strategy that consistently communicates the new vision and strategic plan 5. empower the broad based action- eliminate barriers to change and use target elements of change to transform the organization. encourage risk and creative problem solving 6. generate short term wins- plan for and create short term wins or improvements. recognize and reward people who contribute to the wins 7. consolidate gains and produce more change- the guiding coalition uses credibility from short term wins to create more change. additional people are brought into the change process as change cascades throughout the organization. attempts are made to reinvigorate the change process 8. anchor new approaches in the culture- reinforce the changes by highlighting connections between new behaviors and processes and organizational success. develop methods to ensure leadership development and succession

4 attributes to dispositional resistance to change

1. routine seeking- extent to which you enjoy and seek out stable environments 2. emotional reaction- degree to which you feel stressed and uncomfortable when change is imposed. 3. short term focus- extent you are preoccupied with inconveniences in the near term due to the changes instead of long-term benefits 4. cognitive rigidity- stubbornness or lack of willingness to consider alternative ways of doing things.

ABCDE

A - name the event or problem B - list your beliefs about the event or problem C - identify the consequences of your belief D - formulate a counterargument to your initial thoughts and beliefs. it is important to remember pessimistic thoughts are generally over reactions so the first step is to correct inaccurate or distorted thoughts E - describe how energized and empowered you feel at the moment

Grid X (GXC) Corporation has a need for rapid communication and a resulting need for creating new products with a reduced cycle time. Which organizational design would likely be best for GXC?

Horizontal

The sequence of organizational culture ultimately affects

employees work attitudes and behaviors and a variety of organizational outcomes

Managers at Storm Kayak Corporation (SKC) changed their marketing strategy to target baby boomers. Which change force did SKC experience?

external- domestic/international competition

coordination of effort

is achieved through formulation and enforcement of policies rules and regulations

shared concept

organizational culture consists of beliefs and values that are shared among a group of people

change agent

someone who is a catalyst in helping organizations to deal with old problems in new ways

peer pressure

someone who is not directly affected by a change may actively resist it to protect the interests of his or her friends and coworkers.

aligned goals

start from the development of a companywide strategic plan. these strategic goals are then cascaded down through the organization so the employees are aligned in their pursuit of common goals

good stress

stress associated with positive emotions and outcomes called eustress