C.2 Goals, Strategy, and Organizational Culture Flashcards
Social Constructionist Perspective
The purpose of business is whatever people decide it is
Business is a S.I.
Social Invention
Three types of business goals
- Official - What is the value system
- Operative - What do employees work towards?
- Informal - Culture
Official goals
Mission
- vision
- shared values and beliefs
- reason for being
Operative goals
Ends sought through actual operating procedures of the org and explain what the org is trying to do
categories of operating goals
- Overall performance
- resources
- market standing
- employee development
- innovation and change
- productivity
goal-setting theory
evidence that goals affect motivation and performance
want goals that are 1. 2. 3. 4.
- specific
- measurable
- achievable
- realistic
culture (informal) goals
set of values, norms, guiding beliefs, and understandings that is shared by members of an organization and is taught to new members
purpose of culture goals
- internal integration: save cost when hiring
- external adaptation
ways you can interpret culture
- rites and ceremonies
- stories
- symbols
- language
Relationship of Environment and Strategy to Org Culture: Chart
lmfao just look up the chart picture, i guess
adaptability culture
constantly changing culture, care about external culture (e.g. Tech companies, Google)
mission culture
environment does not change a lot, focuses on external employees instead of internal employees (e.g. Mcdicks, Coca Cola)
clan culture
keep employees as happy as possible instead of prioritizing shareholders (e.g. WestJet)
bureaucratic culture
environement does not change a lot. employees are highly skilled professionals, ensure employees are trained (e.g. Government)
competitive scope:
broad
competitive advantage: low-costt
strategy: low cost leadership
example: walmart
competitive scope: broad
competitive advantage: uniqueness
strategy: differentiation
example: Apple
competitive scope: narrow
competitive advantage: low cost
strategy: focused low-cost leadership
example: DVD rental boxes, Claire’s
competitive scope: narrow
competitive advantage: uniqueness
strategy: focused differentiation
example: no children resort
needs of environment: external
strategic focus: flexibility
adaptability culture
needs of environment: external
strategic focus: stability
mission culture
needs of environment: internal
strategic focus: flexibility
clan culture
needs of environment: internal
strategic focus: stability
bureaucratic culture
Mike & Snow’s Strategy Typology
- prospector
- defender
- analyzer
- reactor
prospector
innovate, take risks, seek opportunities, grow
defender
stability, retrenchment
analyzer
innovate but maintain stability.
reactor
react to threats and opportunities
Principle of Fit - McKinsey 7S Model
Hard S's: easy to determine, thus easy to copy - Structure - Systems - Strategy Soft S's - hard to interpret, thus hard to imitate - Shared values - Skills - Style - Staff