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SOH > Management & Organization > Flashcards

Management & Organization Flashcards

1
Q

Mount Everest Case Key Lessons for managers

A

1) Individuals are subject to cognitive biases that impact performance (overconfidence, sun cost fallacy, recency bias)
2) Groups do well with a sense of psychological safety
3) Organizations can be impacted by factors outside of control

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2
Q

4 Essential principals from Mt Everest Case

A

-Leaders should be led by group needs
-Inaction can sometimes be the most difficult but wisest action
-if your words don’t stick you haven’t spoken
-leading upwards can feel wrong when its right

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3
Q

What is strategy? (quote)

A

“An integrated set of choices that position an organization within its environment to achieve it’s vision over the long term”

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4
Q

Two generic strategies

A

1) differentiation
2) Cost leadership
*) avoid being stuck in the middle

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5
Q

Strategy is in the middle of the diagram. What does internal analysis refer to?

A

1) Goals/values
2) Resources/capabilities
3) Structures/systems

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6
Q

Strategy is in the middle of the diagram. What does external analysis refer to?

A

1) competitors
2) customers
3) suppliers

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7
Q

Strategy within the hierarchy of organization objectives

A

Mission
Vision
Strategy
Tactics

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8
Q

Characteristics of an effective strategy

A

Choice (choosing what to do and what not to do ensures limited resources are focused on important issues)
Clarity (provides coherent sense of what firm is trying to achieve to internal stakeholders and a sense of what the firm offers to external constituents)
Commitment ( sense of direction over long term)
Congruence ( activities supporting strategy are mutually reinforncing)

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9
Q

5 Elements of strategy

A

Arenas
Vehicles
Differentiatiors
Staging
Economic Logic

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10
Q

Arenas (1)

A

What business are we in? which product categories? which market segments? which geographical areas? which value-creation stages?

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11
Q

Vehicles (2)

A

How will we grow and reach our goal? Internal development? Joint ventures? acquisitions? licensing?

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12
Q

Differentiators (3)

A

How will we differentiate from competitors? price? image? custimization? services? styling?
Requires trade-offs to be made, don’t be stuck in the middle

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13
Q

Staging (4)

A

What will be the order and speed of implementing initiatives?
Speed of expansion, choosing whether to expand product line or geographical reach first

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14
Q

Economic Logic (4)

A

How will be obtain returns/ what is our business plan.

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15
Q

External analysis (5 forces that shape strategy)

A

1) threat of new entrants
2) threat of substitutes
3) bargaining power of suppliers
4) bargaining power of buyers
5) industry rivalry

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16
Q

Barriers to entry (1)

A

Warren buffet quote: “the most important thing to me is figuring out how big a moat there is around a business.”
Some reasons for barriers to entry:
1) economies of scale
2) switching costs
3) capital requirements
4) brand loyalty/reputation
5) access to distribution channels
6) government regulation
7) expected retaliation

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17
Q

Substitutes (2)

A

Different products can serve similar needs. These can be from very different industries and thus easy to overlook

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18
Q

Bargaining power of suppliers (3) is large when…

A

-few suppliers
-industry is not particularly important to suppliers
-product is differentiated and thus it is costly for buyers to switch suppliers
-suppliers can threaten to integrate forwards
-there is no substitute

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19
Q

Bargaining power of buyers (4) is large when…

A

-few buyers
-industry products are undifferentiated
-Buyers can threaten to integrate backwards
-buyers face few switching costs when changing vendors

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20
Q

Rivalry among competitors (5) is greatest when…

A

-number of competitors is high
-industry growth is slow
-barriers to exit are high
-rivals are committed beyond just financially
-firms cannot read each others signals well

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21
Q

To neutralize supplier power___
To neutralize buyer power____
To stop rivals from driving down prices___
To scare of new entrants___
To limit threat of substitutes___

A

1) standardize specification for parts so you can easily switch vendors
2) expand range of services so its harder for customers to leave you
3) invest into products highly differentiated from competitors
4) increased fixed costs required to compete like R&D
5) offer better value through wider product accessability

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22
Q

Why within the same industry do some firms outperform others?

A

Look inside for sustained basis of advantage (Internal Analysis: RBV)

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23
Q

Firm Specific Advantages

A

“secret sauce”
-competative advantages a firm has which allows it to succeed in its industry
-could be understanding/access to local markets, unique access to talent, organizational culture.
Ex: Walmart with inventory management; apple with capacity for innovation

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24
Q

Organizational structure (what is it and 5 points)

A

How an organization arranges people/activities to meet goals) (formal organization)
-division of labor
-vertical + horizontal coordination
-reporting relationships
-locus of decision making
-patterns of info flow

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25
Q

Fundamental principle of organizational design

A

The more differentiation there is, the greater need for integration (coordination across levels and between units)

26
Q

What is integration (in organizational design)

A

coordination across levels and between units

27
Q

Dimensions of org structure

A

-specialization
-centralization
-formalization
-chain of command
-span of control

28
Q

How does structure affect organizational performance? (roughly)

A

How effectively information
and knowledge flow
* How flexible and adaptable an
organization is
* Level of efficiency and control
* Speed and quality of decision
making

29
Q

How does structure affect people and interpersonal processes (roughly)

A
  • Impacts quality of
    communication & coordination
  • Can intensify or mitigate
    conflict & politics
  • Affects employee attitudes and
    stress
30
Q

Dimensions of organizational structure (5)

A

Specialization
Centralization
Formalization
Chain of command
Span of control

31
Q

Specialization

A

-process of dividing up the many tasks within an organization
-the more tasks are divided into narrowly-defined jobs, the greater the degree of specialization

32
Q

Centralization

A

extent to which decision making authority is centralized v. spread out

33
Q

Formalization

A

extent to which an organization relies on rules and procedures

34
Q

Chain of command

A

-Who reports to who
-Formal right to make decisions, issue orders, allocate resources

35
Q

Span of control

A

-number of employees that report to a given supervisor
-narrow (tall) (cost leadership)
-wide (flat) (differentiation)

36
Q

Types of org structures (3)

A

Functional, divisional, combo (matrix)

37
Q

Divisional structure

A

Departments are formed on the basis of organizational outputs, customer, or geographic groupings as opposed to job roles.

38
Q

Strengths/weaknesses of divisional structure

A

STRENGTHS
* More flexible/adaptable
* Better customer service: each unit deals with just one product
* Better coordination between departments
* Reduced burden on top managers

WEAKNESSES
* Reduces economies of scale
* Can introduce duplication and redundancy
* Lack of coordination and increased conflict across divisions
* May threaten clarity of org identity

39
Q

Functional structure strengths and weaknesses

A

STRENGTHS
* Efficient - economies of scale
* Cultivates specialization

WEAKNESSES
* Poor inter-function coordination
* Slow response to environmental changes
* Clunky in large sizes
* Overly centralized

40
Q

Combo/matrix structure strengths and weaknesses

A

– everyone gets two lines of reporting

STRENGTHS
* Flexible/adaptable
* Provides better information flow, which can improve coordination
* Saves on functional resources (e.g. IT and HR)

WEAKNESSES
* More potential for conflict (e.g. between functional and divisional)
* Less efficient: requires more meetings, constant coordination
* Two boss problem: can be confusing/frustrating for employees

41
Q

Functional structure

A

groups employees by specialty, skill, or related roles.

42
Q

Nine tests or organizational design (4/5)

A
  1. market advantage test
  2. parenting advantage test
  3. people test
  4. feasibility test
  5. specialist cultures test
  6. difficult lines test
  7. redundant-hierarchy test
  8. accountability test
  9. flexibility test
43
Q

4 tests of fit

A
  1. market advantage test
    -Does your design direct sufficient management attention to your sources of competitive advantage in each market
  2. parenting advantage test
    -does your design help the corporate parent add value to the organization
  3. people test
    - does your design reflect the strengths, weaknesses, and motivations of your people
  4. feasibility test
    - have you taken account of the constraints that may impede the implementation of your design
44
Q

5 tests of good design

A
  1. Specialist cultures test
    - does your design protect units that need distinct cultures
  2. difficult links test
    -doesyour design provide coordination solutions for problematic links
  3. redundant-hierarchy test
    -does your design have too many parent levels and units
  4. accountability test
    -does your design support effective controls
  5. flexibility test
    -does your design facilitate development of new strats and provide flexibility to adapt to change
45
Q

What is culture? (informal organization)

A

The set of values, attitudes, beliefs, and expected behaviors shared by members of an organization.
-the “personality” of an org

46
Q

Techniques to build culture (RRRPPP)

A

Reference group affiliation
-People identify with those they are organizationally close to
Reward system
-conformity with expectations is rewarded
Role Modeling
-Role modeling and mentoring so members learn appropriate behavior
Peer Pressure
- conform!
Performance review
- assessed based on conformity with strategy
Psychological review

47
Q

Iceberg Model

A

ARTIFACTS
-tangible aspects that can be seen/heard
—-physical (dress, objects, layout), verbal (stories, jokes)
—-Norms and rules of conduct

VALUES (ESPOSED AND ENACTED)
-shared statements about good and bad
—–shared principals, standards, and goals
—— what is actually prioritized, rewarded, punished
ASSUMPTIONS
-Taken for granted beliefs about reality/human nature
—–often unspoken/out of immediate awareness

48
Q

Functions of organizational culture (3)

A

Control system
-influences decisions and behaviors
Social Glue
-connects and bonds people
Sensemaking
-helps people understand what is happening in org and why

49
Q

Hofstede’s national cultural dimensions

A

-power distance
-uncertainty avoidance
-individualism/collectivism
-masculinity/femininity

50
Q

Power Distance

A

Extent to which less powerful members of organizations accept that power is distributed unequally.

51
Q

Uncertainty avoidance

A

Extent to which people feel threatened by uncertainty and try to avoid it

52
Q

Individualism / collectivism

A

Tendency of people to look after themselves/ their family or tendency to belong to groups and to look after each other

53
Q

Masculinity / femininity

A

Cultural characteristics in which dominant values in society are success/money/things or caring for others/quality of life

54
Q

Cost of strong culture

A

-Cult-like
- unwillingness to question shared values
-insulation from outside viewpoints
-lack of diverse perspectives

55
Q

Benefit of strong culture

A

-ability to attract and retain employees
-high motivation to achieve vision
-competative advantage from employing uniquely skilled/talented people

56
Q

What is leadership

A

the process of directing, controlling, motivating and inspiring staff toward the realization of stated organizational goals

57
Q

Leadership from three perspectives

A

Trait theories

  • assume certain measurable characteristics exist that are unique to leaders

Behavioral theories

-attend to only observable behaviors and how leaders act

Situational approach

-emphasizes contextual factors as key

58
Q

Leadership types

A

Transactional leaders
-planning, budgeting, meeting shedules
-less people focused, more task focused
Charismatic leaders
- motivate people, unify them for vision
-unlikely to follow through, maybe cult-like
Transformational leaders
- inspire change and innovation
-deal mainly with abstract and intangible things like vision and change

59
Q

Three main functions of a leader

A

1) deciding on the organizations mission and how to accomplish it (strategy)
2) Generating support for the mission
3) Setting the tone for behavior in the org

60
Q

Leadership v. Management

A

LEADERSHIP
-setting direction
-aligning people
-providing motivation
-build and communicate vision

Management
-planning and budgeting
-organizing and staffing
-controlling and solving problems
-carrying out vision

61
Q

How to effectively lead

A

1) modeling
2) get to know your followers
3) framing
4)rhetorical techniques
5) persuasion

62
Q
A

SOH (3 decks)

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