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BU398 - Organizational Behaviour II > Midterm Review > Flashcards

Midterm Review Flashcards

1
Q

What is the definition of “Organization”?

Social entities that are…

1.
2.
3.
4.
A

Social entities that are:

1. Goal directed
2. Designed as deliberately structured and coordinated activity systems, and
3. Linked to the external environment (Open Systems)
4. Socially constructed
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2
Q

Open System vs. Closed System

A

An open system must interact with the environment to survive; it both consumers resources and exports resources to the environment.

A closed system would not depend on its environment; it would be autonomous, enclosed, and sealed off from the outside world.

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3
Q

What are the elements of Mintzberg’s Framework?

A

Technical Core: includes people who do the basic work of the organization.

Management: a distinct subsection, responsible for directing and coordinating other parts of the organization. Can be broken into top management (provides direction, strategy, goals, and policy) and middle management (implementation and coordination at department level).

Technical Support: helps the organization adapt to the environment.

Administrative Support: responsible for the smooth operation and upkeep of the organization, including its physical and human elements.

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4
Q

What are the dimensions of organizational design?

A
  1. Structure
    - Formalization, specialization, hierarchy of authority, centralization, professionalism, personnel ratios.
  2. Context
    - Culture, environment, goals & strategy, size, technology.
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5
Q

What is strategy? How is it different from goals?

A

Strategy defines the organization’s intentions.

Goals are the “what”, strategy is the “how”.

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6
Q

What is an organization’s “mission”?

A

Mission: An organization’s official goals, reason for existence, scope and outcomes organization trying to achieve.

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7
Q

What are the types of goals?

A
  1. Official Goals: mission; organization’s reason for existence.
  2. Operative Goals: well-defined, specific, and measurable and are short term; provide a sense of direction.
  3. Informal Goals: undefined; organizational culture.
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8
Q

What are the factors of Porter’s Competitive Strategies?

A

Competitive Advantage (low cost/uniqueness) and Competitive Scope (broad/narrow)

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9
Q

What are Porter’s Competitive Strategies? Give an example of each.

A

Low Cost Leadership
- Overall low-cost provider of a product/service that appeals to a broad range of customers (ex. Walmart, Sam’s Club).

Broad Differentiation
- Differentiate the product offerings from rivals’ (so reduce competition) that appeal to a broad range of buyers (ex. Whole Foods, DuckDuckGo).

Focused Low Cost Leadership
- Focused (market-niche) strategy based on lower cost (ex. Maybelline).

Focused Differentiation
- Focused (market-niche) strategy based on differentiation (ex. Rolls-Royce).

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10
Q

Miles & Snow’s Typology

A

Prospector - innovate, take risks, seek out new opportunities, and grow (ex. Apple, Google, Cathay Pacific)

Defender - Stability, retrenchment (ex. Hudson’s Bay Company, Dell)

Analyzer - Innovate but maintain stability (ex. Roche)

Reactor - Reacts to threats and opportunities ad hoc (ex. Nokia)

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11
Q

What are the functions of organizational culture?

A

Internal integration - integrate members so that they know how to relate to one another (social capital)

External adaptation - organization meets its goals and deals with outsides.

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12
Q

What are the ways in which to interpret an organization’s culture?

A

Rites & Ceremonies - passage, employee enhancement, integration

Stories - narratives usually based on true events

Symbols - can be intangible symbols or physical artifacts.

Language - slogans, acronyms, jargon, etc.

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13
Q

What are the factors of organizational culture?

A

Needs of the Environment (flexibility/stability) and Strategic Focus (external/internal)

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14
Q

What are the four types of organizational culture?

A 
Adaptability Culture (Flexible - External)
Mission Culture (Stable - External)
Clan Culture (Flexible - Internal)
Bureaucratic Culture (Stable - Internal)
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15
Q

What are the six structural dimensions of an organization?

A
  1. Formalization
  2. Specialization
  3. Hierarchy of authority
  4. Centralization
  5. Professionalism
  6. Personnel ratios
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16
Q

What are the 6 basic elements of organizational structure?

A
  1. Chain of Command - unbroken line of authority.
  2. Span of Control - number of subordinates a manager can effectively control.
  3. Centralization - where are the decisions made?
  4. Specialization - degree to which activities or tasks are divided into individual jobs - “division of labour”.
  5. Formalization - jobs are structured based on rules and procedures.
  6. Departmentalization - the process of grouping activities together.
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17
Q

The departmentalization structure in which activities are grouped together by common function (i.e. finance, marketing, etc.) is called what?

A

Functional Structure

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18
Q

The departmentalization structure in which activities are group together by product/organizational output in called what?

A

Divisional Structure

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19
Q

What are the seven types of departmentalization?

A
  1. Functional
  2. Divisional
  3. Geographical
  4. Matrix
  5. Horizontal
  6. Virtual
  7. Hybrid
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20
Q

True or False?

If an organization has only 1 product, it must have a functional structure.

A

True

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21
Q

What is the best departmentalization strategy for an organization with multiple products?

A

Divisional

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22
Q

What is the departmentalization structure that is most efficient?

A

Functional

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23
Q

The departmentalization strategy in which all activities (and people) required to produce and market products or services to a particular region are grouped is called what?

A

Geographical Structure

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24
Q

The departmentalization structure that combines both functional and divisional structures is called what?

A

Matrix Structure

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25
Q

What conditions make a Matrix Structure beneficial?

A
  • Sharing resources (people and equipment) across product lines
  • Environment demands multiple critical outputs (both in-depth functional specialization and product innovation are needed to succeed)
  • Complex & unstable environment
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26
Q

The departmentalization structure in which activities (and people) are group around core processes is called what?

A

Horizontal Structure

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27
Q

What is a “process” in a horizontal structure?

A

An organized group of related tasks and activities that work together to transform inputs into outputs that create value for customers.

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28
Q

What departmentalization strategy has the best response to customer needs and also is said to improve quality of life for employees because of shared responsibility, decision-making, and accountability?

A

Horizontal Structure

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29
Q

The departmentalization structure in which functions such as accounting, marketing, design, manufacturing, distribution, HR, etc. are outsourced to separate companies and coordinated by the central hub, is called what?

A

Virtual Network Structure

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30
Q

What type of departmentalization structure would help to extend the capacity for small organization’s and increase scale?

A

Virtual Network Structure

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31
Q

What are the two types of information linkages within organizations?

A

Vertical Information Linkage:

  • Hierarchy
  • Rules and plans - coordination without the need for interpersonal communication.
  • Vertical information systems (e.g., reports, memos)

Horizontal Information Linkage:

  • IT systems
  • Task forces
  • Direct contact
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32
Q

What is the term that is defined as “all elements outside the boundary of the organization that have the potential to affect the organization”?

A

Organizational Environment

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33
Q

What are the factors of Environmental Uncertainty?

A

Complexity (simple/complex) and Change (stable/unstable)

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34
Q

What are the two subdivisions of the environment (environmental sectors)?

A

Task Environment: “core” environment; direct impact

General Environment: everything else; indirect impact

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35
Q

What would be the level of environmental uncertainty in the case that there are a small number of similar, external elements, and the elements remain the same or change slowly?

A

Low uncertainty (simple + stable)

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36
Q

What would be the level of environmental uncertainty in the case that there are a large number of dissimilar, external elements that remain the same or change slowly?

A

Low-moderate uncertainty (complex + stable)

37
Q

What would be the level of environmental uncertainty in the case that there are a small number of similar, external elements that change frequently and unpredicatbly?

A

High-moderate uncertainty (simple + unstable)

38
Q

What would be the level of environmental uncertainty in the case that there are a large number of dissimilar, external elements that change frequently and unpredicatbly?

A

High uncertainty (complex + unstable)

39
Q

What are the ways in which organizations can adapt to uncertainty in the environment?

A
  1. Organizational structure (mechanistic vs. organic, formal vs. teamwork, centralized vs. decentralized)
  2. Departmentalization (few vs. many, boundary-spanning vs. not, differentiation)
  3. Role integration (between departments)
  4. Planning, forecasting, and responsiveness (strategic focus, internal vs. external, proactive vs. reactive)
40
Q

When organizations “team up” to share scarce resources, this is known as a(n) ____________ ____________.

A

interorganizational relationship

41
Q

What are the 5 ways to establish interorganizational linkages?

A
  1. Ownership
  2. Formal strategic alliances
  3. Cooptation, interlocking directorates
  4. Executive recruitment
  5. Advertising and public relations
42
Q

What is the term defined as “the general perspective that an organization’s actions are desirable, proper, and appropriate within the environment’s system of norms, values, and beliefs.

A

Legitimacy

43
Q

What is isomorphism in the organizational context?

A

Institutional isomorphism is the emergence of a common structure and approach among organizations in the same field. Isomorphism is the process that causes one unit in a population to resemble other units that face the same set of environmental conditions.

44
Q

What are the three core forces/mechanisms of isomorphism and where do they stem from?

A

Mimetic Forces, which result from responses to uncertainty;

Coercive Forces, which stem from political influence; and

Normative Forces, which result from common training and professionalism.

45
Q

What are the four stages of organizational development?

A
  1. Entrepreneurial Stage
  2. Collectivity Stage
  3. Formalization Stage
  4. Elaboration Stage
46
Q

“Need for leadership” is the Crisis of which organizational development stage?

A

Entrepreneurial stage

47
Q

“Need for delegation with control” is the Crisis for which organizational development stage?

A

Collectivity stage

48
Q

“Need to deal with many rules and regulations” is the Crisis for which organizational development stage?

A

Formalization stage

49
Q

“Need for revitalization” is the Crisis for which organizational development stage?

A

Elaboration stage

50
Q

Which organizational development stage is characterized by a mostly informal structure, a major product/service with minor variants, and a reward system emphasizing personal achievement and contribution to growth.

A

Collectivity stage

51
Q

Which organizational development stage is characterized by formal procedures, a top management style focusing on delegation with control, a full line of products/services, and a goal of internal stability and market expansion?

A

Formalization stage

52
Q

Which organizational development stage is characterized as informal, a “one-person show”, an individualistic management style, and a goal of survival?

A

Entrepreneurial stage

53
Q

What organizational development stage is characterized by multiple products lines, institutionalized R&D, and a goal of competing on reputation?

A

Elaboration stage

54
Q

True or False?

Organizations will hit stages where what worked before is now holding them back and needs to change.

A

True

55
Q

True or False?

Structure will become less formalized over time.

A

False - structure will become MORE formalized over time.

56
Q

True or False?

Organizations can be only mechanistic or organic, never both.

A

False - sometimes organizations can grow by having some parts of the organization that are mechanistic and other parts that are more organic.

57
Q

True or False?

Larger organizations are typically more bureaucratic.

A

True

58
Q

What are the three methods to reduce bureaucracy within an organization?

A
  1. Incident command system
  2. Cutting layers of hierarchy - lean organizations
  3. Increasing professionalism of employees
59
Q

What are the three control strategies?

A
  1. Bureaucracy Control
  2. Market Control
  3. Clan Control
60
Q

What are the three types of authority?

A

Rational - Legal Authority: Formalistic belief in the content of the law (legal) or natural law (rationality).

Traditional Authority: The ability and right to rule is passed down, often through heredity or status.

Charismatic Authority: Leader whose mission and vision inspire others.

61
Q

What are the 5 stages of Organizational Decline?

A 
Stage 1: Blinded
Stage 2: Inaction
Stage 3: Faulty Action
Stage 4: Crisis
Stage 5: Dissolution
62
Q

What are the three main causes of organizational decline?

A

Organizational Atrophy

  • Becomes overly bureaucratic; can’t adapt to environment
  • Often follows long periods of success

Vulnerability

  • Can’t prosper in current environment (e.g., shift in consumer taste); may need to change domains
  • Usually small organizations, start-ups

Environmental Decline or Competition
- Capacity of the environment to support organizations (due to contraction or competition)

63
Q

What are the steps in Kurt Lewis’ Model of Change?

A
  1. Unfreeze
  2. Change
  3. Refreeze
64
Q

What happens during the Unfreeze stage in Kurt Lewis’ Model of Change?

A
  1. Determine what needs to change.
  2. Ensure strong support from upper management.
  3. Create the need for change.
  4. Manage and understand the doubts and concerns.
65
Q

What happens during the Change stage in Kurt Lewis’ Model of Change?

A
  1. Communicate often.
  2. Dispel rumors.
  3. Empower action.
  4. Involve people in the process.
66
Q

What happens during the Refreeze stage in Kurt Lewis’ Model of Change?

A
  1. Anchor the changes into the culture.
  2. Develop ways to sustain the change.
  3. Provide support and training.
  4. Celebrate success!
67
Q

What are the four types of change?

A
  1. Technology
  2. Products and Services
  3. Strategy and Structure
  4. Culture
68
Q

New ways of working, changes in production process, operations, and more efficient production are examples of which type of change?

A

Technology

69
Q

Changes in outputs (e.g., new product lines) would be which type of change?

A

Products and Services

70
Q

Administrative changes such as changes in structure, policies, or rewards, is an example of which type of change?

A

Strategy and Structure

71
Q

Changes in values, attitudes, and behaviours describes which type of change?

A

Culture

72
Q

What are the five elements for successful change?

A
  1. Ideas
  2. Needs
  3. Adoption
  4. Implementation
  5. Resources
73
Q

What is the Ambidextrous Approach to organizational design?

A

Incorporating structures and management processes that are appropriate to both the creation (organic) and the implementation (mechanistic) of innovation.

74
Q

What are the four ways to create an ambidextrous organization?

A
  1. Switching Structures: on demand organic structure
  2. Creative Department: separate structure for innovation (R&D department)
  3. Venture Teams: small company within organization (possible separate location, facilities)
  4. Corporate Entrepreneurship: promotes entrepreneurial spirit (culture)
75
Q

What is the challenge and solution for a Technology change?

A

Challenge:
- How can organizations design themselves to achieve both innovation and efficiency?

Solution:
- Ambidextrous organization

76
Q

What is the challenge and solution for a Product/Service change?

A

Challenge:
- Creating a successful product.

Solution:
- Boundary-spanning marketing department that talks to boundary-spanning R&D department that both talk to production department, overseen by a senior manager (Horizontal Coordination Model).

77
Q

What is the challenge and solution for a Strategy/Structure change?

A

Challenge:
- How do you get everyone on board for big strategy/structure/goal/policy changes?

Solution:
- Use the hierarchy, centralized decision making, formalization and vertical communication of a Mechanistic org design.

78
Q

What is the challenge and solutions of a Culture change?

A

Challenge:
- How do you modify the beliefs, values, and behaviours, of a group of people?

Solution:

  • Organizational development initiatives
  • Use behaviour modification (e.g., role models, reward/punishment)
  • Change the symbols, rituals, stories
  • Leverage HR systems (e.g., selection, training, performance management, rewards and incentives)
79
Q

What are the barriers to change?

A
  • Excessive focus on cost
  • Failure to perceive benefits
  • Lack of coordination and cooperation
  • Uncertainty avoidance
  • Fear of loss (power, status, position)
80
Q

What are the ways to lead change?

A
  • Establish sense of urgency
  • Establish a coalition to guide change
  • Create a vision/strategy for change
  • Find an idea that fits the need
  • Develop plans to overcome resistance to change
  • Create change teams
  • Foster idea champions
81
Q

How are technology changes facilitated?

A

Ambidextrous organization

82
Q

How are product/service changes facilitated?

A

Horizontal Coordination Model

83
Q

How are strategy and structure changes facilitated?

A

Mechanistic org design (dual-core approach)

84
Q

How are culture changes facilitated?

A

Organizational development interventions

85
Q

What are the three views of business, nature, and society?

A
  1. Disparate View
  2. Intertwined View
  3. Embedded View
86
Q

In which view of BSN does business take priority and society and nature are only considered if they align with the interests of the business.

A

Disparate View

87
Q

In which view of BSN are the three elements equally important and intricately connected?

A

Intertwined View

88
Q

In which view of BSN does nature take priority, followed by society, with business last?

A

Embedded View

BU398 - Organizational Behaviour II (1 decks)

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