Module 3 Flashcards
1
Q
Organizational theory
A
Organizations as practical necessities and challenging achievements
2
Q
Weber’s theory of modern bureaucracy
A
Structure
-formally defined and interrelated rules and roles
Technocracy
-roles as full time jobs allocated by qualification
Accountability
- central role for organizational record keeping
3
Q
Bureaucracy
A
Realization of human potential
4
Q
Structural contingency theory
A
Organizations are open systems beholden to their environment
5
Q
Mechanistic organizations
A
- centralized decision making
- defined responsibility
- formal rules as a means of control
6
Q
Organic organizations
A
- distributed decision making
- fluid responsibilities
- more social forms of control
7
Q
Configurational theories
A
Many organizations for both mechanic and organic types
8
Q
Population ecology
A
How different organizations fit into different “food chains” or ecologies
9
Q
Resource dependency
A
Resources shaped by power dynamics
10
Q
Institutional theory
A
Take for granted cultural dynamics and their influence for how we think about organizations
11
Q
Organizational culture
A
How organizations develop their own distinct cultures and how they evolve
12
Q
Sense making and decision making in organizations
A
How particular understandings emerge and spread
13
Q
The purpose of strategy
A
For the pursuit of:
- sustainability
- competing advantage
14
Q
Sustainable
A
Want an advantage that will ensure
15
Q
Competitive advantage
A
Something rewarding at which we excel relative to our competitors
16
Q
Positioning
A
Around a distinct set of activities that create value
17
Q
Operational effectiveness
A
Helpful but relatively easy to copy
18
Q
First order fit
A
Consistency across activities
19
Q
Second order fit
A
Mutual enhancement of activities
20
Q
Strategic position
A
External environment
Internal capabilities
21
Q
External environment
A
How appealing are strategies in light of external environment
22
Q
Strategic choices
A
Corporate strategy
Business strategy
23
Q
Corporate strategy
A
Which industry to compete in and how to manage competition in that industry
24
Q
Industry analysis
A
Making sense of the industry and what can be done to remain competitive in the industry
25
Porters five forces
- market power of buyer
- market power of supplier
- risk of substitution
- risk of new entrants
- rivalry between competitors
26
Market power
Able to capture value
27
VRIO framework
Resources: anything that can be used to create value
Valuable
Rare
Inimitable
Organized
28
Combinations in the VRIO framework
Single framework:competitive disadvantage
Organized and valuable: competitive parity
3/4 frameworks: temporary competitor advantage
29
Organized (VRIO)
Are you doing anything with the resources?
These resources have potential value
30
Valuable (VRIO)
Resources allows you to achieve something of value
31
Rare (VRIO)
Something cannot use/ hard for them to use
32
Inimitable (VRIO)
Difficult for competitors to achieve same result through different means
33
Tactical analysis
How people are likely to react to our strategies? We need tools to predict their reactions
34
Game theory
-form of tactical analysis
Various players with their own reactions and actions
Must know players to make good predictions. Then envision the game you want them to play
35
Schein’s model of organizational culture
Artefact <>espoused beliefs and values <> underlying assumptions
36
Artefacts (schein)
Surface layer (visible) that give us an idea of what the organization might be like
Ex)
Activities (rituals, traditions, rewards and punishments)
Objects (posters, products, furniture/ space of the company)
Language (rules, stories, humour)
37
Espoused beliefs and values (Schein)
Principles or goals that organizations feels have intrinsic worth
-justify the way things are done (therefore can contradict artefacts)
Ex) “we believe in...”
Team spirit
Killer instinct
38
Underlying assumptions
Truth about an organization
-taken for granted until proven untrue
Ex) people work best in teams> team spirit
39
Inertia
In an organization, refers to dynamics that keep and organization running the same way over time
-impedes any effort for change in an organization
40
Pragmatic sources of inertia
Resistance due to self interest (or perceived collective interest)
41
Sources of pragmatic inertia
Loss of enjoyment or motivation
Ex) job is less enjoyable because of a change so you are less inclined to make the change
Fear of failure
Loss of power or prestige
42
Normative inertia
Moral resistance or concerns about appropriateness
43
Sources of normative inertia
Prevailing social norms
-change does not match with organizations essence
Moral disapproval
Evaluations of motivation and good faith
-is the change good for the company or just the individual?
44
Cognitive inertia
Resistance based on sense and understanding
| -how we understand the world around us
45
Sources of cognitive inertia
Habituation
- without thinking you do something a certain way
- difficult to change
Uncertainty and ambiguity
-Unsure what should be done
Taken-for-grantedness
-organization is so part of our lives that we don’t think about them (until they change)
Exhaustion
- people too tired to implement change
- common in organizations that see lots of change
46
Responses to change
Active resistance
Passive resistance
Compliance
Enthusiastic support
47
Enthusiastic support
Aim when enacting change
48
Compliance
People unlikely to fix problems when they arise and could lead to failure
-form of mild inertia
49
Passive resistance
People hope change will fail
| Will not work to make change a success
50
Active resistance
People trying to make change fail and maintain status quo
51
Disrupting existing structures
Sense making
Questioning moral associations or social norms
Subverting existing controls and sanctions
52
Sense making (disrupting existing structures)
Undermine existing assumptions and beliefs
53
Questioning moral associations and norms
Why are things done the way they are done?
Explain how change matches with values
54
Subverting existing controls and sanctions
People trying to implement change are not punished
55
Building momentum
Sense making
Coalition building
Building spaces for mora support and communication
56
Sense making (building momentum)
- Define change goals
- advocate change goal to make people believe in its necessity
- coordinate plan for change
57
Coalition building
Influential people help others see their self interest in supporting the change
58
Building spaces for moral support and communication
Leave physical space for people to talk and re-energize each other
59
Entrenchment (of a new model)
Enabling and policing change
Valorizing and demonizing
Normalizing and routinizing
60
Enabling and policing change
Reward and punishment
61
Valorizing and demonizing
Celebrate those who embrace change and cast in bad light those that don’t
62
Normalizing and routinizing
People start to take the change for granted
63
Institutional theory
The facts of social life and how we observe that people in a society act
64
Three dimension that institutions influence people on once established
Regulative/ pragmatic: mechanisms that keep people interested in institution for self interest
Normative: institution in place so it makes sense to take it into account
- not doing so has negative consequences
- socially entrenched
Cognitive: institution is so obvious we take it for granted
65
Institutional logics
Whole set of roles and relationships that define a recognizable area of social life
66
Social legitimacy of organizations
Belief that organization is competent, moral, and rational
The social value that stakeholders base their investment in a company on
67
Institutional logics
Shape social evaluations
68
Substantive decisions
Governance, routines, incentives
-organizations can align themselves this way to achieve legitimacy
69
Symbolism and rhetoric
Adopt motivations, justifications and gestures
-keeps people motivated and invested in institution
70
Corporate social responsibility (CSR)
Stakeholders believe that corporation has duty to act ethically for the good of society
71
Two approaches to instrumental justification of CSR
Cosmetically: Good PR and token/serious gestures
-people see you are a good organization
Strategic: seek profitable lines of good behaviour
72
Ethical justification of CSR
Organization cannot just be about business because they shape the environment around them
73
Levers
- work specialization
- departmentalization
- chain of command
- span of control
- centralization
- formulization
- boundary spanning
74
Span of control
Number of subordinates supervised by a manager
75
Work specialization
Specialize in a single task/job
76
The principal of liking
People like people who like them
77
Similarity
Used to create bonds in an organization
78
Praise
Charm and disarm
-for a poor worker, find a trait you like about them and compliment them about it. They are likely to improve their work.
79
The principal of reciprocity
People inclined to treat you how you treat them
80
Principle of consistency
People align with their commitments
81
Principle of social proof
People follow the lead of similar others
82
Principle of authority
People defer to experts
83
Principle of scarcity
People want more of what they have less of
84
First dimension of power
Visible in organization
| -preferences and decisions common and visible
85
Second dimension
Visible in agenda
| -sets behaviours of groups and individuals
86
Third dimension of power
Subtle
| -look beyond human behaviour
