Test 2
What is a smart factory?
Automated factory. one which computer guided machines handle routine tasks and factory plants are digitally connected to one another and to suppliers and customers in digital supply chain network.
Who developed a framework for noncore departmental technology?
Charles Perrow
What is a resource dependent organization?
Dissimilar organizations, competitive, striving for independence and autonomy. traditional view of relationships between organizations; rational ways organizations try to minimize their dependence on other organizations for the supply of importance resources and try to influence the environment to make resources available.
What is a collaborative network?
Dissimilar, cooperative, companies join together to share scarce resources. organizations allow themselves to become dependent on other organizations to increase value and productivity for all; emerging alternative to resource-dependence theory
What is institutional isomorphism?
Institutional similarity, emergence of common structure and approach among organizations in same field
Who did the first and most influential study about technical complexity?
Joan Woodward
What are some findings Joan Woodward had?
Joan Woodward, first and most influential study of manufacturing technology. More management as more technical complexity. Direct to indirect labor ratio decreases with technical complexity because more indirect workers required to support and maintain complex machinery. Span of control, formalized procedures, and centralization are high for mass production technology. Small batch production and continuous process technology requires highly skilled workers to run machines; relies on oral communication. Mass production standardized so less skilled and less verbal communication.
What is globalization strategy (global product structure)?
Product, design, manufacturing, and marketing strategy are standardized throughout the world, which is less costly. Product division takes responsibility for global operations in their specific area. Attempting to achieve global goals because it provides straightforward way to effectively manage variety of businesses and products around the world. Top managers at headquarters with broad perspective on competition, enabling quicker change. Uses economies of scale.
What is the one dimension of noncore departmental technology?
Routine vs nonroutine a. nonroutine: Technology high in variety tend to be low analyzability b. routine: Technology low in variety tend to be high in analyzability
What is population ecology?
Similar, competitive. Organizations within population compete for similar resources or similar customers. Older organizations adapt too slowly, but new ones can fit into the gaps. New organizations fill niches left open by established organizations and how a rich variety of new organizational forms benefits society; focuses on organizational diversity and adaptation within a population of organizations
What is instutionalism?
Similar, cooperative. Concerned with set of intangible norms and values that shape behavior. why and how organizations legitimize themselves in the larger environment and design structures by borrowing ideas from each other; how organizations survive and succeed through congruence between organization and expectation from environment
What is an organizational ecosystem?
a system formed by the interaction of a community of organization and their environment. Cuts across traditional industry lines.
What are some technologies in a smart factory?
a. Computer-aided design (CAD): computers used to assist in drafting, design, and engineering of new parts. b. Computer-aided manufacturing (CAM): computer-controlled machines in materials handling, fabrication, production, and assembly increase speed which items can be manufactured. Allows shifting production line from one product to another. c. Robots: can communicate and collaborate with humans, help with manufacturing process such as delivering parts, can detect objects d. 3D Printing (additive manufacturing): builds objects one successive layer of material at a time. Less waste, get products quicker, and enables on-site production
What are the four stages of international evolution?
a. Domestic stage: company domestically oriented but managers aware of global environment and may want to consider initial foreign involvement to expand production volume and realize economies of scale. Market potential limited. Foreign sales handled through export department. Freight forwarding, custom problems, and foreign exchange handled by outsiders b. International stage: company takes exports seriously and thinks multidomestically (competitive issues in each country are independent of other countries). Replaced export department with an international division and specialists hired to handle sales, service, and warehousing abroad c. Multinational stage: extensive experience in a number of international markets and has established marketing, manufacturing, or R&D in several foreign countries. Organization obtains large percentage of revenues from outside of home country. Has business units, suppliers, manufacturers, and distributors scattered across world d. Global stage: company transcends any single country; subsidiaries are interlinked so that competitive position in one country influences activities in other countries. Don't think of themselves as single home country. "Stateless corporation".
What are the three motivations for global expansion?
a. Economies of scale: new technologies and production methods allow for larger volume production; lowest cost per unit of production b. Economies of scope: number and variety of products and services a company offers as well as number and variety of regions, countries, and market it serves c. Low-cost production: opportunity to obtain raw materials, labor, and other resources at lowest possible cost
What are the five characteristics of an HRO?
a. Preoccupation with failure: focusing on preventing and eliminating catastrophes vs reacting to them. Correct small errors. Near misses seen as learning opportunity. b. Reluctance to simplify interpretations: don't over simplify because could result in overlooking. This allows abnormalities to accumulate without inquiry. c. Sensitivity to operations: manuals and policies should change along with complexity o work systems Situational awareness. Mindful attention to operations. d. Defense to expertise: mechanisms in place to identify individuals with great expertise relevant to event and give them authority. This overcomes regular hierarchy e. Commitment to resilience: ensure things go right and to prevent things from going wrong. Alert to small mistakes. Respond with quick situational assessments, containing errors, and improvising solutions with difficulties arise.
What are some differences that core service technology has from manufacturing?
a. Produces intangible output b. Simultaneous production and consumption c. Labor and knowledge intensive d. Direct interaction between customer and employee e. Human element f. Quality of service is perceived g. Rapid response time h. Site selection much more important
What are the three strategies for survival?
a. Struggle for existence: competition, competitive struggle over resources b. Generalist: organizations with wide niche or domain, that offer broad range of products or services or that serve broad market c. Specialist: provide narrower range of goods or services or that serve a narrower market are specialists
What are the three parts of ecological change?
a. Variation: large appearance of new, diverse forms in a population of organizations, initiated by entrepreneurs and established with venture capital by large corporations or set up by governments seeking to provide new services b. Selection: whether or not new organizational form is suited to environment and can survive. Only a few variations are selected in and can survive long-term. Some fill niche, others fail to meet needs of environment c. Retention: preservation and institutionalism of selected organizational forms. Certain technologies, products and services are highly valued by environment
What is cultural intelligence?
ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses
What is global standardization?
activities standardized across countries
What is a megacommunity approach?
businesses, governments, and nonprofit organizations join together across sectors and industries to tackle huge problems of mutual interest, such as energy development, world hunger, or cyber crime
What is export strategy (International division)?
companies begin to explore international opportunities, they typically start with an export department that turns into an international division. Division has status equal to other major departments or divisions within the company. Organized by geographic interests or product line. Has its own hierarchy to handle business
What is multidomestic (localization) global strategy (global geographic structure)?
competition in each country is handled independently of competition in other countries. Encourages product design, assembly, and marketing tailored to specific needs of each country. Emphasize adaptation to regional or local market needs through multidomestic strategy. Divides world into geographic regions, with each geographic region reporting to CEO. Each division has full control over functional activities in geographic area. Low cost manufacturing plus meeting different needs across countries. Some products, like personal-care products, or fast foods sometimes, have different expectations in different companies. Differentiation and customization to meet local needs. Services need to be local
What is an institutional environment?
composed of norms and values from stakeholders
What is noncore technology?
department work process that is important to the organization but is not directly related to its primary mission.
What is core service technology?
different than manufacturing; service organizations accomplish their primary purpose through production and provision of services.
What is a niche?
domain of unique environmental resources and needs sufficient to support it
What is local responsiveness?
each global affiliate acting autonomously
What is legitmacy?
general perception that an organization's actions are desirable, proper, and appropriate within environment's system of norms, values, and beliefs
What is a Highly Reliable Organization (HRO)?
has developed technologies in safe and reliable manner. Failing is not an option
What are the four global strategies?
i. Globalization strategy (Global product structure) ii. Multidomestic (localization) global strategy (global geographic structure) iii. Glocalization strategy (Global matrix structure) iv. Export strategy (International Division)
What were Joan Woodwards 3 groups of technical complexity?
i. Group 1 small batch and unit production: manufacture and assemble small orders to meet specific needs of customers. Custom work. Relies heavily on human operator. ii. Group 2 Large batch and mass production: manufacturing process characterized by long production runs of standardized parts. Output often goes into inventory. Customers don't have special needs. Traditional assembly lines like automobiles. iii. Group 3 Continuous process production: entire process mechanized. No starting or stopping. One step beyond assembly line. Highly predictable. Chemical plants, oil refineries, liquor producers, pharmaceuticals, nuclear power plants
What are the three mechanisms behind institutional adaptation?
i. Mimetic forces: pressure to copy or model other organizations; concept of benchmarking; managers facing high uncertainty and they are aware of innovation so they look to act similarly ii. Coercive forces: external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations. This pressure is from another organization, or the law, etc. External force iii. Normative forces: pressure to achieve standards of professionalism and to adopt techniques that are considered by the professional community to be up to date and effective
What is an operations role vs a collaborative role?
i. Operations roles: traditional vertical authority and are accountable for business results primarily through direct control over people/resources. (this is the older way of managing) ii. Collaborative roles: don't have direct authority over horizontal colleagues or partners, but are nonetheless accountable for specific business results. This is achieved through personal communication and assertively seeking out needed info/resources (this is the newer way and becoming more common)
What is noncore departmental technology?
not within technical core, has own production process that consists of technology
What is organizational form?
organization's specific technology, structure, products, goals, and personnel which can be selected or rejected by environment
How do organizations adapt to complexity and dynamism?
reducing separation and increasing collaboration between companies, sometimes even between competitors. Globalization and rapid advances make it hard to keep up, so webs of organizations are emerging. Organizations think of themselves as teams.
What is a population?
set of organizations engaged in similar activities with similar patterns of resource utilization and outcomes
What is glocalization strategy (Global matrix structure)?
trying to achieve both global integration and local responsiveness. Product or service is more likely to succeed when it is customized for the locality or culture in which it is sold. Works best when pressure for decision making balances the interests of both product standardization and geographic localization, and when coordination to share resources is important. Global uniformity and local diversification and responsiveness. Hard to achieve since requires close global coordination and local flexibility Worldwide standards and training operations, but local preferences
What is mass customization?
using mass-production technology to quickly and cost-effectively assemble goods to fit demands of individual customers
What is core technology?
work process that is directly related to organization's mission. Raw material inputs, transformation work process that changes or adds value to raw material, and then produces ultimate product or service output sold to consumers
What is technology?
work processes, techniques, machines, and actions used to transform organizational inputs into outputs. An organization's production process and includes work procedures as well as machinery
What are the different 6 types of resource-dependent relationships?
1. Acquisition/merger: greatest amount of control over joint outcomes because firm absorbs all resources, assets, and liabilities of target organization 2. Joint venture: less control than full ownership; new and distinct organizational entity set up by two or more organizations to jointly develop an innovative product or shared technology 3. Strategic alliance: less formal and less binding than joint venture. Collaborative agreement between two or more organizations that contribute resources to common endeavor while maintaining their individuality. 4. Supply chain: contracts with key suppliers to acquire resources. Collaborate with other companies that need similar resources 5. Trade association: federation that allows organizations, often in same industry, to share information and monitor one another's activities 6. Board interlock: director serves on boards of multiple companies, creating connection
What are the four organization collaboration types?
1. Resource dependence: dissimilar but competitive 2. Collaborative network: dissimilar but cooperative 3. Population ecology: similar but competitive 4. Institutionalism: similar but cooperative
What are the four categorizations of nondepartmental technology?
1. Routine: little task variety and uses objective, computational procedures. Formalized and standardized. 2. Craft: fairly stable stream of activities, but conversion process is not analyzable or well-understood. Needs lots of training and experience. 3. Engineering: complex because lots of variety in tasks. But these tasks handled on formulas, procedures, and techniques 4. Nonroutine: high task variety, and conversion process is not analyzable or well understood
What are the two dimensions of departmental activities?
1. Task Variety: number of exceptions in the work, performed the same way each time 2. Analyzability: work can be reduced to mechanical steps and participants can follow objective, computational procedure to solve problems. If it non-analyzable, no store techniques or procedures say exactly what to do
