Module 3 - Strategy and Organizational Culture Flashcards
What are the two ways that organizational theory is a practical activity?
practical because organizations are…
1) Practical necessities: organizations are really needed like eveerywhere
2) Challenging acheivements: need to get past challenges because things need to get done through organizations.
How is an organization like a machine?
- Has parts that fit together to create the whole
- ppl argue it can be designed a certain way and optimized
- one part breaks, the whole fails / there is a large issue
What was Henri Fayol’s explanation of a mechanic organization and what it needs to survive?
Organization needs many different functions, need understand what it needs to survive,
5 tasks to keep machine intact:
- plan and forecast (be prepared for changing circumstances)
- organize tasks etc so everyone know what do
- give commands so same ^
- coordinate organizational activities so they fit together to serve a goal
- have control (make sure plans/commands followed in practice)
** understand organization as whole and how all parts/actions/decisions have a place/impact
How did Taylor explain task design for a mechanic organization?
Scientific management, ‘design better parts for the machine’, use experiments to identify how to improve efficiency (lightbulbs in factory exp)
- observe ppl at work, see what could be changed
- he inspired Henry Ford to set up production line shit
What is the other side of understanding an organization?
Organic! Human relations - psychological or sociological effects on relationships and organizations
How would one expand organically on the effective tasks laid out in the mechanic view of an organization?
Attempt to undesrtanf the people behind the tasks! how motivated, why care, what feelings abt tasks and supervisors
- argue success only from employees that want to work and care abt company success
- work to exert managerial control over not only bodies (actions) but also minds and hearts
What did Elton Mayo say about some people and their feelings in the organization?
He wanted to clamp down on agitators (those who wanted better work conditions/pay). Said they dont see world as group collaboration, believes workplace is a scene of exploitation where they and their peers suffer.
– wanted to get ppl to accept place in life and do what told
What is the difference between an organic and mechanistic organization?
Mechanistic = well-oiled machine, perfect to acheieve a certain task, intended to maximize efficiency Organic = company is an organism, able to match with changing times, depend on motivation and commitment, more focused on workplace psychology and sociology
How would one argue that social systems are needed in organizations?
A community is created, so people contribute to a group goal or purpose and get to feel that nice shared purpose and relationships, this leads to success.
What was Weber’s theory of modern bureaucracy?
used characteristics of modernity for a new type of bureaucratic organization.
- allowed for concentration and mobilization of power for state and market firms
(contrast old setup where leaders were chosen by family/lineage and jobs were source of prestige not sign of poverty/etc)
Formal rationalization - the ppls way of making sense of the world (rules, etc = more predictable)
What did the structure part of modern bureaucracy consist of?
Formally defined and interrelated roles and rules
- specific duties
- some offices underneath other offices
- authority based on regulations rather than charisma or private status
What is the technocracy part of modern bureaucracy?
Roles as full time jobs, allocated by qualification
- expertise required rather than patronage
- rewardsd for those proven goo
- organized and exact
Accountability part of modern bureaucracy
Central role for organizational record keeping
- trend toward formal rationalization
- document justifiability of decisions
What was the great debate regarding bureaucracy?
Between 1) bureaucracy as realization of human potential and 2) bureaucracy as destruction of human spirit
1: make easier to organize and coordinate, help with precision and machine-like org.
2: fear that could trap people in system that didn’t care abt their individuality/personal circumstances (reduced to cogs in machine)
What is the two-sided debate related to bureaucracy/organization types? What was the result?
Debates over mechanistic vs organic orgs
and
Debates over merits and costs of bureaucracy: mechanistic bureaucracy good for human potential bad for dehumanizing
(debates gave rise to Structural Contingency Theory)
What is structural contingency theory?
- orgs are open systems and depend on their environments (diff charactersitcs req diff setup = rigid vs fluid job descriptions, centralized vs decentralized decision making)
- Best org design reflects enviro pressures (influenced by nature of task, tech change, stakeholder demands)
Related to structural contingency theory, how best do organic and mechanistic organizations fit in?
Organic = best for turbulent env. bc more fluid and adaptable Mechanic = stable env. w/ defined responsibilities and well understood tasks
What are configurational theories?
consist of distinct combinations of features (set blueprints?) including variations in fit and performance
- understand when certain characteristics help or harm
- TYPES of coherent organization we might see
What does the existence of structural contingency and configuration theories prove?
Success comes from combos of characteristics
- formalization not always the answer but pretty important for keeping organized
- switching is difficult and one characteristic may affect many others (also ppl struggle to adapt)
What are the three additional theories related to the
organizations environment that sprouted from structural contingency theory?
1) Population ecology: use biology concepts to understand org (food chain, competition, symbiotic relationships)
2) Resource dependency: political theory focus on how orgs shaped by power relations
3) institutional theory: sociology/psychology explore broader culture dynamics taken for granted shit, how it all impacts success
What are the three main characteristics/aspects of orgs that were being focused on after structural contingency theory showed up?
1) Organizational culture: how develop distinct character, how then shape the way ppl in org act, how this evolves
2) Sense-making and decision-making: how info travels, how decisions made, how ppl come to believe things abt org
3) Technology: how new techs get legitimized, how tech is adapted to fit what org do
What is a structural lever? Organizational design? How do these two concepts interact?
Structural levers are inputs to organizational design
Organizational Design is characterized by different organizational configurations, like configurational theories where theres diff stuff that works for diff situations
–> they each impact one another, and also impact organizational outcomes (profitabliliyy, incentives, capabilities)
What are the 7 structural levers in organizational design?
- work specialization
- departmentalization
- centralization
- formalization
- chain of command
- span of control
- boundary spanning
What is work specialization structural lever and what are strengths and weaknesses?
High when jobs are narrowly divided b/t employees, meaning roles are strict and very focused/specialized!
S: efficient and productive
W: no multitasking/changing = boring unfulfilling job
What is departmentalization structural lever and what are strengths and weaknesses?
High when lots division, activities are grouped into departments
S: productive, coordination, mechanistic
W: harder to manage, bureaucratic
What is chain of command structural lever and what are strengths and weaknesses?
High when there are more levels of management
S: clear accountabilities, easier communication bc always defined leader to talk to vs big blob of equal employees
W: slower decision making, harder to assess goals in lower chains
What is span of control structural lever and what are strengths and weaknesses?
High/wider when there is one manager for lots of subordinates aka flatter management
S: cost effective, empowered employees
W: less communication and control, need really good leaders
What is centralization structural lever and what are strengths and weaknesses?
High when direction/decisions only made by senior management
S: uniform decisions, economized efforts
W: concentreated power so reduced autonomy in employees
** work w formalization
What is formalization structural lever and what are strengths and weaknesses?
High when org has very explicit written rules, policies, job descriptions
S: clear frameworks, streamlined
W: reduced autonomy, less freedom for individual situations and certain employee needs
** work w centralization
Normally new/small company less formalized!
What is boundary spanning structural lever and what are strengths and weaknesses?
High if there’s someone sent around to understand everything and coordinate bt both internal and external parts
S: enhance org learn and agility, low cost
W: conflicts, emotional labour bc person becomes less part of a specific team
What are the 4 most common organizational design configurations?
Informal: flat, few rules, no hierarchy, little formalization, fluid
Functional: formal, hierarchy, goals, specializations based on roles/functions (aka “the accounting department”)
Divisional: formal, hierarchy, goals, specializations based on product/customer/geographic lines (aka “the europe division” etc)
Matrix: formal, hierarchy, goals, specialization based on both roles/functions and product/geography so ppl accountable to two diff supervisors (aka “europe division accounting dept”) **almost never in small orgs
What is the fuckin point of strategy? How define each aspect of this point of strategy?
THE PURSUIT OF A SUSTAINABLE COMPETITIVE ADVANTAGE
–> competitive advantage = something rewarding at which the company excels relative to competitors (quality, service, etc) - reward is often profit but cuold be other stuff like efficiency/provide better services
What is positioning?
Finding somewhere you can excel relative to others bc of a set of activities you can do that others cannoy copy without abandoning their own shit
What is operational effectiveness and how does it relate to competitive advantage?
OE = do what you do as effectively as possible
- easy to copy then bc everyone selling same product/etc can increase efficiency, so end up work really hard, but everyone else does to so no one actually gets ahead AKA COMPETITVE PARITY
- need OE to reinforce distinct position, but OE cant be the only thing that creates your position