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SBL > Chapter 13 - Enabling success and strategic change > Flashcards

Chapter 13 - Enabling success and strategic change Flashcards

1
Q

What are the different types of organisational structure?

A
  • Simple/entrepreneurial - sole traders
  • Functional - organised according to type of work
  • Divisional - semi-autonomous units based on geography, product or market
  • Holding company - divisions are separate legal entities
  • Transnational structure - some independence for national units with certain functions run globally e.g. R&D function based in one country used globally
  • Matrix - used for project work, co-working across functions
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2
Q

What are the advantages of a simple structure?

A
  • Decision making quick
  • Strong control
  • Strong goal congruence
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3
Q

What are the disadvantages of a simple structure?

A
  • Not effective once passed certain size

- Reliance on leader

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4
Q

What are the advantages of a functional structure?

A
  • Work based on specialism
  • Economies of scale
  • Clear career progression
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5
Q

What are the disadvantages of a functional structure?

A
  • Co-ordination and communication problems

- Silos - people do not understand how whole business works

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6
Q

What are the advantages of a divisional structure?

A
  • Specialism
  • Clear accountability to divisional managers
  • Authority to divisional managers - prepared for senior management
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7
Q

What are the disadvantages of a divisional structure?

A
  • Duplicate each others functions - waste

- More bureaucratic due to performance measures by strategic apex

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8
Q

What are the disadvantages of a holding structure?

A

Complexity of management and reporting

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9
Q

What are the advantages of a transnational structure?

A
  • Improve responsiveness to local condition

- Economies of scale

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10
Q

What are the disadvantages of a transnational structure?

A
  • Complex relationships

- Difficulties in control

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11
Q

What are the advantages of a matrix structure?

A
  • Flexible deployment of staff as requirements change

- Improved communication

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12
Q

What are the disadvantages of a matrix structure?

A
  • Increased potential manager conflict

- Complexity leading to slow decisions

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13
Q

Define decentralisation

A

A greater degree of delegated authority to regions or sub-units

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14
Q

What are the advantages of centralisation?

A
  • Control
  • Standardisation
  • Corporate view
  • Experience
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15
Q

What are the advantages of decentralisation?

A
  • Reduce workload of senior management
  • Job satisfaction for delegates
  • Local knowledge
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16
Q

What are the approaches to running divisionalised conglomerates?

A
  • Strategic planning style - divisional managers make contributions to strategic thinking
  • Strategic control style - centre leaves planning to divisional managers
  • Financial control style - controlled by strict financial targets
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17
Q

Define a boundary-less organisation

A

Those which have structured their operations to allow for collaboration with external parties

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18
Q

Define hollow structure

A

Non-core processes are outsourced

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19
Q

Define modular structure

A

Production processes are outsourced

20
Q

Define a network structure

A

Groups of organisations who co-operate to deliver services to customers e.g. building contractor manages other specialists such as electriction

21
Q

Define a virtual structure

A

Appears as single entity from outside but is a network of nodes linked through technology

22
Q

Define internal partnering

A

Working between functions to increase co-operation and efficiency

23
Q

What are the advantages of outsourcing?

A
  • Removes uncertainty about cost - long-term contract
  • Arrangements can be established for many years - future planning
  • Greater skills and knowledge
  • Flexibility - resources scaled up or down depending on demand
24
Q

What are the disadvantages of outsourcing?

A
  • Sharing confidential information
  • Potentially locked in unsatisfactory contract
  • Does not encourage awareness of potential costs and benefits of certain processes
  • If decision made to move back in house there is no guarantee specialist skills available in market
25
Q

Define offshoring

A

Outsourcing involving an external entity based in a different country

26
Q

Define shared servicing

A

Shared service centres consolidate transaction-processing activities of many operations within organisation - alternative to outsource

27
Q

What are the advantages of shared servicing?

A
  • Reduction in premises and other overhead costs
  • Knowledge sharing leads to improvement of quality of service
  • Standard approach across organisation
28
Q

What are the disadvantages of shared servicing?

A
  • Loss of business-specific knowledge e.g. if there is a finance function for whole organisation, rest of organisation may have lack of understanding
  • Removed from decision making - unable to provide meaningful financial information
  • Weakened relationships - geographical distance
29
Q

Define a global business service

A

A service that brings together existing shared service and outsourcing arrangements to form an integrated framework to co-ordinate global operations in areas such as IT, finance, procurement

30
Q

What does the Baldrige Criteria do?

A

Provides a framework for assessing performance, with a view to improve performance and achieve excellence through identifying strengths, opportunities and areas for improvement.

Key to answering questions is asking HOW the business meets the criteria

31
Q

What are the core values and concepts found in high-performing organisations according to the Baldrige Criteria?

A
  • Visionary leadership
  • Ethics and transparency
  • Societal responsibility
  • Customer-focused excellence
  • Delivering results
32
Q

What are the seven criteria in the Baldrige Criteria?

A

SCWOLAR
- Strategy - implementation and development

  • Customers - meeting needs of customers, listen to them, engage
  • Workforce - skilled and motivated staff, environment
  • Operations - efficiency and effectiveness
  • Leadership - governance, performance expectations
  • Analysis, measurement and knowledge management - provide feedback to leaders about results
  • Results - compared to other organisations, over time
33
Q

What are the four dimensions for Baldrige Criteria 1-6?

A
  • Approach - how do they accomplish work?
  • Deployment - how consistently are key processes used?
  • Learning - how well has organisation improved key approaches? How have improvements been shared?
  • Integration - how well are approaches aligned to current and future needs?
34
Q

What are the four dimensions for results in the Baldrige Criteria?

A
  • Levels - current performance level?
  • Trends - improving, staying the same?
  • Comparisons - performance against other organisations?
  • Integration - use the results in decision making?
35
Q

Define empowerment

A

Making workers responsible for achieving and setting targets

36
Q

Define delayering

A

Reducing the number of management levels from bottom to top

37
Q

Define talent management

A

Attracting and identifying, developing and retaining individuals within organisation who are important for future success

38
Q

What are the advantages of talent management?

A
  • Create learning organisation where they challenge assumptions and improve
  • Help develop new products
  • Succession planning`
39
Q

What are the activities associated with talent management?

A
  • Coaching in leadership skills
  • Attending networking events with other talented individuals
  • Communication with senior management
40
Q

What does the Balogun and Hope Hailey model do?

A

Analyses change on axes of ‘nature’ and ‘scope’.

41
Q

What are the categories of the ‘nature of change’ axis in the Balogun and Hope Hailey model?

A
  • Incremental - built on existing methods

- Big bang - rapid response requirements

42
Q

What are the categories of the ‘scope of change’ axis in the Balogun and Hope Hailey model?

A
  • Realignment - within existing paradigm

- Transformation - replaces paradigm

43
Q

What are the sections in the Balogun and Hope Hailey diagram?

A
  • Adaptation - incremental, realignment - does not require development of new paradign
  • Evolution - incremental, transformation - incremental process leading to new paradigm e.g. learning process
  • Reconstruction - big bang, realignment - existing paradigm with rapid and extension action e.g. cost cutting
  • Revolution - big bang, transformation - rapid wide changing response e.g. strategic drift crisis
44
Q

What are the eight headings proposed by Balogun and Hope Hailey for contextual features of change?

A

Some Times Dips Candy Canes Red & Purple

  • Status symbols - preservation of organisational characteristics
  • Time available
  • Diversity of general experience
  • Capability to manage and implement
  • Capacity to undertake change
  • Readiness of workforce - could have resistance
  • Power to effect change
45
Q

What is the POPIT model (four-view model)?

A

Interrelated aspects when analysing opportunities for organisational improvement. It helps identify where problems lie in each of the four aspects.

  • People - skills, motivation
  • Organisation - management support, cross-functional working
  • Processes - IT support, manual processes
  • IT - information systems
46
Q

What does Lewin’s three-stage model do?

A

Suggests that organisational changes have three steps

  • Unfreeze - creating motivation to change, highlight forces driving change, weaken restraining forces
  • Change - identifying new norms, communication them, five styles of change management used here
  • Refreeze - setting policies, new standards, positive reinforcement
47
Q

What are the approaches to the unfreeze stage of Lewin’s model?

A
  • Remove individuals from routines
  • Confront perceptions
  • Reinforce willingness to change
  • Consult individuals about change

SBL (15 decks)

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