Chapter 2 Quiz Flashcards
You recently transferred from a smaller manufacturing firm to a larger one and discovered that, although entirely different, both compensation systems are effective - how is this possible?
Both systems fit the organization and its strategy.
What can you determine by examining a firm’s contextual variables?
the type of STRUCTURE the organization should be using
Knowing which organization structure to use requires first understanding which of the following aspects?
CORPORATE STRATEGY (also known as a business strategy or competitive strategy)
A strategic framework is used as a tool to help determine which aspect of compensation?
The most effective compensation system
What can you determine by examining a firm’s structural variables?
the managerial strategy a firm is actually using
Which of the following is classified as a “main” managerial strategy?
The Human Relations Management Strategy
Assumes most employees inherently dislike work but can be induced to work in order to satisfy social needs (building a positive social environment where employees are treated as apart of a family - nurturing)
You are in the process of designing a new reward system for your firm. What is the most important single determinant of what will or will not be successful reward system for your firm?
A particular Managerial Strategy used
Which of the following variables indicates to management the most appropriate managerial strategy to use in an organization?
Contextual variables
What determines the contextual variables?
Organizational goals
You have recently been hired by a manufacturing company in Vancouver, BC. You conclude that the company is using a high-involvement management strategy. Which of the following variables would you review to support your aforementioned conclusion?
Structural Variables
Which of the following sets of strategies reflects different assumptions about employees and how they should be managed (managerial strategies)?
Classical, Human Relations and High-Involvement
Which of the following characteristics are common in a classical organization?
Strong Management control over employees
Which of the following rewards are normally associated with a HIGH-INVOLVEMENT managerial strategy?
Providing employees with the opportunity to grow professionally
Which reward strategy is appropriate for companies using a human relations approach to management?
Rewards are mainly extrinsic and focus on loyalty to the organization
Richard, a new employee, is told by a more experienced employee to do only the minimum and not attempt to be a “superstar”. What is Richard experiencing?
Company culture
Which of the following key cultural values would be detrimental to a high-involvement organization?
- Honesty
- Trustworthiness
- Doing things the way they have always been done
- Open communication
Doing things the way they have always been done.
Which of the following organizational variables would complement a classical management strategy?
- Strong policies and procedures dictating work processes
- high level of horizontal communication
- Significant autonomy given to employees
Strong policies and procedures dictating work processes
Marie is a new owner of a large apple farm in BC. She hires seasonal workers to pick apples during the months of October and November each year. Historically, there has been an abundance of labour supply. Which managerial strategy should you adopt to increase the farm’s performance? What does this strategy assume?
Classical
Assumes that most employees inherently dislike work, but can be induced to work in order to satisfy their economic needs (threaten economic needs in order get employees to behave the way they want - punitive)
A prospector strategy, short life cycle products, a highly skilled work force, and a relatively small organization would be a combination of variables for which managerial strategy? What does this strategy assume?
High-involvement
Assumes that work can be intrinsically motivating if the organization is structured properly (focus on intrinsic rewards and treating employees fair and equitably - light touch)
What are the five main contextual variables?
ORGANIZATION’S ENVIRONMENT (most important one) - stable vs. unstable, simple vs. complex
BUSINESS STRATEGY (also known as CORPORATE STRATEGY or competitive strategy) - plan for how organization will achieve goals
TECHNOLOGY
SIZE
WORKFORCE
What is organization structure?
The means through which an organization generates the behaviours necessary to execute its business strategy
What are structural variables?
They are dimensions of organization structure and are levers used to produced desired behaviours within an organization.
The five structural variables are:
Rewards System
Job design - describes the manner in which the total task of an organization is separated into separate jobs
Coordination and departmentalization - describes the methods used to coordinate the work of individual employees and subunits in an organization
Communication and information - describes the nature of and methods for communication
Decision making and leadership - describes the nature of the decision-making and leadership processes used in an organization
Control system - describes the nature of the processes used to control employee behaviour in an organization
What is the contingency approach to organizational design
Based on the premise that the best type of structure for an organization depends on the key contingencies (contextual variables) associated with that organization
What is a managerial strategy
A managerial strategy is one of three main patterns or combinations of structural variables that can be adopted by an organization:
Is it better to use a single managerial strategy or a mix of structural elements?
A single managerial strategy is generally more effective than an inconsistent mix of structural elements. Structural elements and associated human resource policies must be complimentary
(Inconsistency Example: decision making at lower levels but communicating adequate info to lower-level staff for them to make informed decisions. Complimentary Example: high involvement organizations hiring highly skilled autonomous staff would require comprehensive recruitment processes while classical organizations with low skilled staff would require less sophisticated selection process).
What is organizational culture?
The set of core values and understandings shared by members of an organization
What are the two main ways of classifying an organization’s business strategy?
Miles and Snow Typology of Corporate Strategy
Porter’s Typology of Business Strategy
What is the Miles and Snow Typology of Corporate Strategy?
There are 4 main types of business strategies
1) DEFENDER - dominating a narrow product or service market segment
* best suited for classical strategy (manufacturing) and human relations (client service enterprise) strategy
2) ANALYZER - exploiting new opportunities at a relatively early stage while maintaining a base of traditional products/services
* high involvement or new products, classical approach for traditional products but in reality sine difficult to practice two strategies in same firm. compromise with human relations strategy
3) PROSPECTOR - identifying and exploiting new opportunities quickly
* best suited for high-involvement strategy
4) REACTOR (residual) - firms that don’t have a distinct overall strategy
What is Porter’s Typology of Business Strategy?
There are four types of business strategies:
1) LOW-COST - depends on providing low-cost products or services to a broad range of customers (i.e. walmart)
2) FOCUSED LOW-COST - depend on providing low-cost services to a narrow range of customers
* low-cost strategies best suited for classical managerial strategy because of emphasis on tight cost control
3) DIFFERENTIATOR - depends on providing unique products or services to a broad range of customers
4) FOCUSED DIFFERENTIATOR - depends o providing unique products or services to a narrow range of customers
* differentiator strategies best suited for high-involvement
What are the three ways that an organization’s technology can be classified?
Thompson’s Typology of Technology
Perrow’s Typology of Technology
Woodward’s Typology of Technology
What is Thompson’s Typology of Technology?
Three main types of technologies:
LONG-LINKED - divides total task of producing product or service into a series of small sequential steps performed by different employees (i.e. automobile assembly line)
*classical strategy
MEDITATING TECHNOLOGY - uses standardized transactions to connect parties wishing a mutually beneficial relationship (i.e. banks connect money lenders to money borrowers)
INTENSIVE TECHNOLOGY - requires that each item or case be dealt with individually, depending on specific nature of each case (i.e. hospitals, consulting firms
*high-involvement strategy
What is Perrow’s Typology of Technology
Concerns the degree to which the technology is routine or non-routine
ROUTINE - relatively few exceptions to the standard work process, and those that do occur can be dealt with in a standardized way (i.e. washing machine manufacturer)
*classical or human relations
NON-ROUTINE - many exceptions are inherent in the production process, and there is no standardized way to deal with these exceptions (i.e. consulting firms)
*high-involvement
CRAFT TECHNOLOGY - few exceptions occur in the production process, but there is no standardized way to deal with them when they do occur (i.e. specialty glass blowing)
*high involvement
ENGINEERING TECHNOLOGY - many exceptions occur in production or service delivery process, but there are standardized ways of dealing with them (i.e. accounting firm with different clients but standardized procedures)
*high-involvement
What is Woodward’s Typology of Technology?
Manufacturing technologies can be divided into three main types:
1) UNIT/SMALL BATCH TECHNOLOGY - one-of-a-kine items or small batches of them, and is analogous to the intensive technology
* high involvement
2) LARGE BATCH TECHNOLOGY - produces large amounts of a single item in a standardized way, and is analogous to the long-linked technology
* classical
3) PROCESS TECHNOLOGY - produces the product in a continuous flow, and has no equivalent in other technologies discussed. Workers need to be highly knowledgeable and diligent to monitor and painting flow of product (i.e oil refinery, electrical power plant)
* at minimum human relations and possibly high-involvement
What type of managerial strategies do small vs. large size organizations use?
larger - classical or human relations
small to medium sized - high involvement
Highly skilled, well-educated or professional employees are more suited for what managerial strategy?
High involvement
Employees with relatively low skill are generally suited for what managerial strategy?
Classical
Also for human relations, but they do not need to depend on poor economic circumstances for motivation as they offer both economic and social rewards
