Final Flashcards
characteristics of large organizations
economies of scale global reach vertical hierarchy complex stable markets provide longevity, raises, and promotions
characteristics of small organizations
responsive, flexible regional reach flat structure, organic simple niche finding entrepreneurs
big company/small company hybrid
combines large corporation’s resources and reach with a small company’s simplicity and flexibility
4 stages of organization life cycle
- entrepreneurial stage
- collectivity stage
- formalization stage
- elaboration stage
entrepreneurial stage
emphasis is on creating a product and surviving in the marketplace
crisis: need for leadership - must adjust structure to accommodate growth or bring in strong managers
collectivity stage
strong leadership and begins to develop clear goals and direction
crisis: need for delegation - top managers don’t want to give up responsibility to lower level managers
formalization stage
installation of rules, procedures, control systems
crisis: too much red tape - need to eliminate unnecessary red tape
elaboration stage
collaboration and teamwork
crisis: need for revitalization - may enter periods of temporary decline, top managers often are replaced
6 characteristics of bureaucracy
- rules and procedures
- specialization and division of labour
- hierarchy of authority
- technically qualified personnel
- separation of position and incumbent
- written communications and records
incident command system (ICS)
developed to maintain the efficiency and control benefits of bureaucracy yet prevent the problems of slow response to crises
3 types of organizational control strategies
- bureaucratic control
- market control
- clan control
bureaucratic control
formal control mechanisms to control employee behaviour
3 types of authority that explains the creation and control of large organizations
- rational-legal authority (most corporations)
- traditional authority (monarchies)
- charismatic authority (steve jobs)
market control
price competition is used to evaluate the output and productivity of an organization
clan control
use of social characteristics (corporate culture, shared values, commitments, traditions, and beliefs) to control behaviour
organizational decline
associated with environmental decline in the sense that an organizational domain experiences either a reduction in size or shape
3 factors causing organizational decline
- organizational atrophy
- vulnerability
- environmental decline or competition
organizational atrophy
organizations grow older and become inefficient and overly bereaucratized
vulnerability
small organizations that aren’t fully established are vulnerable to shifts in consumer tastes
environmental decline or competition
reduced resources available to support an organization
5 stages of decline
- blinded
- inaction
- faulty action
- crisis
- dissolution
blinded stage
change that threatens long term survival
solution: develop effective scanning and control systems
inaction stage
denial despite signs of deterioration
solution: leader must acknowledge and take action
faulty action stage
failure to adjust can result in failure, leaders forced to consider major changes
solution: retrenchment, downsizing, clarification
crisis stage
chaos, efforts to go back to basics, sharp changes
solution: major reorganization, severe downsizing
dissolution stage
decline is irreversible
solution: close down organization and reduce separation trauma of employees
3 techniques to smooth downsizing process
- communicate more
- provide assistance to displaced workers
- help survivors thrive
incremental change
series of continual progressions that maintain an organizations’ general equilibrium and often affect only one organizational part
radical change
transform entire organization (ex. shifting entire organization from a vertical to horizontal structure)
4 strategic types of changes
- technology change
- product and service changes
- strategy and structure changes
- culture changes