EXAM Flashcards
4 Functional Structure Strengths
Allows economies of scale within functional departments
Enables in-depth knowledge and skill development
Enables organization to accomplish functional goals
Is best with only one or a few products
5 Functional Structure Weaknesses
Slow response time to environmental changes
May cause decisions to pile on top, hierarchy overload
Leads to poor horizontal coordination among departments
Results in less innovation
Involves restricted view of organizational goals
6 Divisional Structure Strengths
Suited to fast change in unstable environment
Leads to customer satisfaction because product responsibility and contact points are clear
Involves high coordination across functions
Allows units to adapt to differences in products regions, customers
Best in large organizations with several products
Decentralizes decision-making
4 Divisional Structure Weaknesses
Eliminates economies of scale in functional departments
Leads to poor coordination across product lines
Eliminates in-depth competence and technical specialization
Makes integration and standardization across product lines difficult
5 Matrix Structure Strengths
Achieves coordination necessary to meet dual demands from customers
Flexible sharing of human resources across products
Suited to complex decisions and frequent changes in unstable environment
Provides opportunity for both functional and product skill development
Best in medium-sized organizations with multiple products
5 Matrix Structure Weaknesses
Causes participants to experience dual authority, which can be frustrating and confusing
Means participants need good interpersonal skills and extensive training
Is time consuming; involves frequent meetings and conflict resolution sessions
Will not work unless participants understand relationships
Requires great effort to maintain power balance
5 Horizontal Structure Strengths
Promotes flexibility and rapid response to changes in customer needs
Directs the attention of everyone towards the production and delivery of value to the customer
Each employee has a broader view of organizational goals
Promotes a focus on teamwork and collaboration
Improves quality of life for employees by offering shared responsibility, decision-making and accountability for outcomes
5 Horizontal Structure Weaknesses
Determining core processes is difficult and time consuming
Requires changes in culture, job design, management philosophy, and information and reward systems
Traditional managers may balk when the when they have to give up power and authority
Requires significant training of employees to work effectively in a horizontal team environment
Can limit in-depth skill development
4 Virtual Network Structure Strengths
Enables even small organizations to obtain talent and resources worldwide
Gives a company immediate scale and reach without huge investments in factories, equipment or distribution facilities
Enables the organization to be highly flexible and responsive to changing needs
Reduces administrative overhead costs
4 Virtual Network Structure Weaknesses
Managers do not have hands-on control over many activities and employees
Requires a great deal of time to manage relationships and potential conflicts with contract partners
There is a risk of organizational failure if a partner fails to deliver or goes out of business
Employee loyalty and corporate culture might be weak because employees feel they can be replaced by contract services
4 Symptoms of Structural Deficiency
decision-making is delayed or lacking in quality
the organization does not respond innovatively to changing environment
employee performance declines and goals are not being met
too much conflict is evident
3 Management Science Model
Problems are analyzable and the variable can be identified and measured
Can quickly solve problems with too many variables for human processing
Complex and lacks transparency. Qualitative data is also needed for decision making.
4 Carnegie Model
Decisions are made to “satisfice”, not optimize
Coalitions because goals are ambiguous and individual managers are limited by cognitive constraints
Short-term solutions as coalitions search the immediate environment
Discussion and bargaining important especially in the problem identification phase
4 Incremental Decision Process Model
Sequence of activities from identification to solution
Major organizational decisions are often a result of many small choices combined
Decision interrupts –> Decision loops
- Identification; 2. Development; 3. Selection
4 Garbage Can Model: Streams of events
Problems – are points of dissatisfaction with current activities and performance. Represent a gap between desired performance and current activities.
Potential solutions – a solution is an idea somebody proposes for adoption. The point is that the solutions exist independent of problems.
Participants – organization participants are employees who come and go throughout the organization. People are hired, reassigned and fired; their perceptions differ.
Choice opportunities – are occasions when an organization usually makes a decision.
4 Garbage Can Model: Consequences
Solutions may be proposed even when problems do not exist.
Choices are made without solving problems
Problems may persist without being solved
A few problems are solved.
Rational model of decision-making
The rational model assumes that human beings make rational and logical decisions, and assumes that decision-making follows a sequence of steps designed to rationally develop a desired solution.
Political model of decision-making
The political model assumes that power and politics (the use of power)
are central for decision-making.
Perception of conflicts: Rational vs Political
In the rational model, conflicts are seen as a distortion or anomaly,
whereas in the political model, conflicts are seen as a natural part of the decision-making process.
3 Properties of Authority
Authority is vested in organizational positions
Authority is accepted by subordinators
Authority flows down the vertical hierarchy
5 Types of Power
Legitimate power – The authority granted by the organization to the formal position.
Reward power – Comes with the ability to bestow rewards, such as promotions, raises, pats on the back etc.
Coercive power – The authority to punish or recommend punishment
‘Expert power – Comes from a persons greater skill or knowledge about the tasks being performed
Referent power – Derived from personal characteristics; the holder is admired or identified with, respected
4 Sources of Conflict
Goal incompatibility – The goal of each department reflects the specific objectives members are trying to achieve. The achievement of one department goals often interferes with another departments’ goal.
Differentiation – Department and divisions within an organization often differ in values, attitudes and standards of behavior and these subcultural differences lead to conflicts. A lack of trust within the organization magnifies these natural differences and the potential for conflict
Task interdependence – Refers to the dependence of one unit on another for material, resources or information. As interdependence increases – the potential for conflict increases.
Limited resources – There is a limited money, physical facilities, staff resources and human resources to share among departments. In their desire to achieve goals or expand empires, groups want to increase their resources.
3 Downsizing implementation
- Communicate more, not less
- Provide assistance to displaced workers
- Help the survivors thrive
3 Causes of organizational decline
- Atrophy
- Vulnerability
- Environmental decline or competition
