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soc of orgs final > FINAL new content 8-12 > Flashcards

FINAL new content 8-12 Flashcards

1
Q

porter’s competitive advantage

A
  • something it can do better than competitors

3 forms of competitive strategy:
1. Cost Leadership: org offers a prod at lower price than competitors
2. Differentiation: org offers a dissimilar prod relative to competitor. Unique offerings allow
an org to stand out
3. Focus (aka segmentation strategy): org targets a market niche rather than seeking to engage all possible customers (Exp: demographic, or geographic focus)

**it is difficult to sustain a competitive advantage over time

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2
Q

virtual organizations:

A

a temporary network of independent
companies, linked to achieve certain goals

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3
Q

Organizational strategies contributing to a rise in virtual organizations (means of externalisation)

A
  1. Subcontracting
  2. Offshoring
  3. Supply chains
  4. Platform capitalism
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4
Q

virtual organizations: subcontracting (aka outsourcing)

A

Hiring other
organizations to complete certain
“non‐essential” business operations

Central to this distinction the delineation of firm boundaries
- See Vertical Disintegration and Horizontal Disintegration

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5
Q

virtual orgs: offshoring

A

Sending business ops to a diff country. This may be with the same or a different company.

Often done for:
cmtec
Cost‐ arbitrage
Market access
Talent acquisition
Extended work days across multiple time zones
Country offset quotas

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6
Q

virtual organizations:
Supply chains

A

covers the various steps of the manufact. and delivery of a product/service when those steps span multiple intermediate firms
- exchange relationships are global for major products
- large power imbalances between lead firms and suppliers

Lead firms ( entities that coordinate production and typically control intellectual
property) PROFIT MOST
** lead firm cost‐to‐retail‐price ratios have increased with time

In the last decade, we’ve seen a modest reversal in externalization
trends:
Re‐integration: Moving externalized organizational activities back in house

Reshoring: Moving organizational activities located abroad back in house

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7
Q

virtual organizations:
Platform capitalism

A

Sharing economy: an econ system where assets/services are exchanged between private indiv through a facilitating platform
E.g. uber and airbnb

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8
Q

Factors reducing organizations’
externalization of activities

A
  • Labor arbitrage declines
  • Supply chain disruptions are costly
  • Covid‐19 and the rise of nationalism
  • New virtual communication tools
  • Substantial risks (IP loss, reputational liabilities)

lscns

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9
Q

sharing economy:
What’s new?
What items are in greatest demand on sharing economy platforms?

A
  • Advancements in internet and technologies reduced coordination costs–>Now more complex tasks outside the boundaries of the firm can be achieved
  • concept of sharing isn’t new but intro of tech has allowed such systems to achieve large scale
  • orgs controlling such platforms generally externalize much of the workforce, risk, task knowledge, and even products/services associated with their industry
    ________
  • Low use, high‐value items typically experience the greatest demand
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10
Q

sources of power

A

Personal: results from individual
characteristics. These may include individual attributes, human capital, experience, and effort

Positional: Resultant from the formal roles an individual
may hold in an organization or society (exp: those at the top of a hierarchy, or those with decision making authority)

Relational: Derived from the (personal and professional)
relationships an individual has with others

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11
Q

Other network characteristics:

A
  • Network closure
  • Network centrality
  • Network range
  • Frame‐switching
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12
Q

Davis’ alternatives to corporations

A
  • cooperatives and mutuals:
  • commons‐based peer production:
  • platform capitalism:
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13
Q

formal control

A
  • Hierarchy and reporting
    relationships
  • Explicit instructions for how
    to behave in a given
    situation
  • Extrinsic rewards that
    encourage desired behavior
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14
Q

social control

A

Culture is a form of social control: It guides the actions of workers in
conditions of uncertainty

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15
Q

strong vs weak culture

A

strong: consistently embodied, intensely held and widely shared
ciw

weak: highly variable

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16
Q

culture levels

A

Macrocultures: Nations, ethnic and religious groups, occupations with
global presence

org. cultures: Present within private, public, nonprofit,
and government organizations

org. subcultures: groups within orgs

microculture: Small collectives that may exist within or outside of orgs

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17
Q

seven primary characteristics of org. culture

A

IAOPTAS

1) Innovation & risk taking: experiment and embrace uncertainty?

2) attention to detail

3) outcome
orientation: Does leadership focus on results
rather than how results are achieved?

4) people orientation: Does management take into
consideration how decisions impact employees?

5) team orientation: groups vs indiv?

6) aggressiveness : competitive or easygoing?

7) stability: Do organizational activities emphasize continuity
over change?

18
Q

Process of creating and
sustaining culture (know diagram)

A

P.S-T.S-O

1) philosophy of org. founders

2) selection criteria (recruitment process, fit to culture)

3) top
management (leadership affects culture)/ socialization
(institutional practices vs individual
practices)

4) org culture (inert, deeply ingrained , powerful form of social control)

19
Q

Schein’s Model

A

ARTIFACTS “surface level of culture”:
Easy to observe but difficult to decipher; surface clues may convey
multiple meanings
(what you observe)

ESPOUSED VALUES:
- Ideals, goals, aspirations and rationalizations
- One’s sense of what ought to be, which may be distinct from what is
- Certain org. beliefs and values may become tacit assumptions even if
they are not related to key organizational outcomes
- May not necessarily be
aligned with underlying
behavior or associated artifacts
(what you are told)

BASIC ASSUMPTIONS:
- Unconscious, taken‐for‐granted beliefs and values
- Determine behavior, perception, thoughts and feelings
- Largely consistent adoption among group members: Consensus borne
of repeated success in implementing certain beliefs and values
- Generally nonnegotiable
(what you take for granted)

20
Q

Culture alignment

A

affecting culture:
- people, strategy, org tasks, environment

poorly aligned culture–>

  • Barrier to Change: Culture is often highly inert (difficulty to alter), even
    in highly dynamic business environments
  • Barrier to Diversity: Cultural reproduction may minimize diversity in
    thought, background, and even demographics by selecting new
    members based on “cultural fit”
  • Barrier to Mergers and Acquisitions: Cultural differences can derail
    attempts to combine organizations
21
Q

Competing Values Framework
(CVF)- know how to draw it

A
  • Hierarchy
  • Adhocracy
  • Market, and
  • Clan

seeks to classify firms on two axis:
▪ Horizontal Axis: internal vs external orientation
▪ Vertical Axis: flexible structure vs stable structure

▪clan cultures = correlated more w/
employee satisfaction measures
▪market cultures = more superior operational/ financial
performance
▪strong cultures = positively associated with
outcomes (“ends”) valued by Hierarchy and Adhocracy
cultures

22
Q

klein

A

 Common lessons across Lincoln
Electric, Southwest and SAS (see
Klein conclusion)

23
Q

environments

A

impact organizational success and survival:

Internal environments (Formal/informal structure, culture, employees)

Task environment (Competitors, customers, suppliers, pressure groups)

General environment (Economic, political, legal, social, tech factors)

24
Q

porters five forces

A

1) Rivals, 2)
Threat of New Entrants, 3) Buyers, 4)
Threat of Substitutes, 5) Suppliers

25
Q

Contingency Theory

A

firm’s have a “technical core” of
essential operations that should be protected/ defended

26
Q

Resource Dependence Theory

A

focuses on organizational
relationships that confer relational power and dependence
- Buffering and Bridging strategies seek to address external dependencies

27
Q

Org. buffering strategies

A

seek to resist or control changes in the task and
general environment (Meznar and Nigh 1995)
1. Forecasting and Stockpiling: Track necessary inputs and anticipate
resource availability
2. Leveling (also termed Smoothing): Attempt to increase supplier
production or raise demand for the focal firm’s offerings, for
instance, through advertising
3. Adjusting Scale: For instance by downsizing production

28
Q

Isomorphism

A

lead orgs to adopt similar forms and practices:

Coercive isomorphism – Pressure from powerful external actors.
Examples: political influence, laws, regulation

Mimetic Isomorphism – Imitation of peers in response to uncertainty

Normative isomorphism – Prevailing rules, beliefs and customs
deemed legitimate. Exp: licensing, or formats (Bluray vs HD DVD)

29
Q

Institutional theory

A

Orgs become
infused with value

30
Q

Neoinstitutionism

A

LSC
organizations may also
achieve increased legitimacy, survival, and control through
decoupling (the gap between
espoused policies/practices and actual policies/practices e.g 98% of criminal cases are not settled in court,
but through plea agreements)

31
Q

Porter’s National Competitive
Advantage (i.e., Porter’s Diamond)

A

1) Factor conditions; 2) Demand conditions; 3) Related and supporting
industries; 4) Firm Strategy

32
Q

Orgs.’ Strategic Responses to
their Institutional Envis. (Oliver
1991)

A

Acquiescing: An organization conforms to environmental expectations
(more likely if a consensus exists or if org. focus is narrow)

Compromising: Negotiated solutions; involves nuance and balancing;
More likely in conflicted or unclear environments

Avoiding: Decoupling. Shield the organization from inspection, or assert
adherence with external demands w/o associated change

Defying: Disregard norms/regulations/audience expectations. Rarely
successful

Manipulation: Forge linkages with sources of power; impression
management; obtain endorsements; advertising

33
Q

vertical disintegration

A

occurs when business
functions are moved to
an external firm rather
than keeping
production in‐house

34
Q

horizontal disintegration
BF–>E,rrp

A

occurs
when business functions are moved
to an external firm, but reporting
relationships are preserved

35
Q

org culture

A

system of shared meaning held by members
that details key values, beliefs, and norms that have worked well enough
to be considered valid

36
Q

org. bridging strategies

A

shaping the nature of dependencies in the task and
general environment (Meznar and Nigh 1995)
1. Negotiating : The focal firm engages in bargaining efforts with
suppliers or wider‐scale coordination efforts
2. Pooling of resources: Joint ventures, strategic alliances,
associations/cartels
3. Merging: Purchasing the organization(s) that holds key resources,
for instance through vertical integration or horizontal integration.

37
Q

clan

A

Aim: Collaborate
Means: Cohesion, participation,
communication, empowerment
Ends: Morale, people
development, commitment

38
Q

hierarchy

A

Aim: Control
Means: Consistency, process control, measurement
Ends: Efficiency

39
Q

Adhocracy

A

Aim: Create
Means: Adaptability, diversity
of thought, agility
Ends: Innovation and novelty

40
Q

Market

A

Aim: Compete
Means: Customer focus
Ends: Market share, profit

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