mmodule 4 Flashcards
environmental uncertainity
decision makers do not have sufficient info about enviro factors and they have a difficult time predicting external changes
three sources of uncertainty
complexity, dynamism, richness
transaction cost theory
understand and address transaction costs
contingency theory
management approach in which the design of an orgs structure is tailored to the sources of uncertainty facing an org
differentiation
differences in cognitive and emotional orientation of amond managers and differences in formal structures in diff functional depts
integration
quality of collaborate among the depts
resource dependency theory
the goal of an org is to minimize its dependence on other orgs for the supply of scarce resources in its enviro and to find ways of influencing them to make resources available
bounded rationality
human beings have only limited resources and skills and ability to deal with the environment
opportunism
some people that orgs interact with act opportunistically
small number
when orgs depend on few or scarce number of external resources
risk of specific assets
a specific asset are investments that create value in one particular exchange but have no value in any other exchanges
red queen theory
evolving in the face of competition to survive
Simple complex dimension
number and dissimilarity of external elements relevant to an organization’s operations
stable-unstable dimension
whether elements in the environment are
dynamic
dynamism
how fast and how quickly an environment changes
stable to unstable
richness
amount of resources available to support a domain
rich to poor
symbiotic interdependencies
Interdependencies that exist
between an organization and
its suppliers and distributors
competitive interdependencies
Interdependencies that exist
among organizations that
compete for scarce inputs and
outputs.
cooptation
A strategy that manages
symbiotic interdependencies by
neutralizing problematic forces
in the specific environment.
Keiretsu
A group of organizations, each
of which owns shares in the
other organizations in the
group, that work together to
further the group’s interests.
