Quiz 2 (Mod 3/4) Flashcards
Parkinsons Law
British Navy
less ships, more admins
If left uncontrolled, hierarchies grow taller and more inefficient because officials want subordinates, want to spend more time controlling than doing
Tall Organization
hierarchy has many levels relative to its size
Flat organization
hierarchy has few levels relative to its size
flat H strength
- employees are more autonomous = more creativity and innovation as managers have less time to micromanage
- employees network informally and go to themselves when the need help rather than managers because they are too busy
flat H problem
less opportunity for promotion
few managers = weaker control and coordination problems as well as burn out
tall H strength
high level of control and insight
managers oversee fewer employees and can direct activities daily
leads to highly predictable and routinized activities
tall H problems
communication takes very long times
more managers = more wages/more expensive
motivation is an issue, there is a major difference between top paycheck and bottom paycheck
minimum chain of command
keeping the org flatter is better, the problems of tall firms usually outweigh the benefits
what do tall firms do better
better control over employees
decisions go through more layers, more review
horizontal differentiation
add separate lines of reporting with the same amount of levels. kitchen manager/dining manager same level
decentralize
allows employees to make own choices, coupled with standardization
standardize
increase guidelines and rules of behavior for employees without needing direct supervision while still allowing for greater creativity and autonomy
span of control
the number of subordinates each manager directly oversees
as the company grows, increase the span of control
span of control limit
managers exponentially have to manage more relationships with more employees, 3 for two subs, 6 for three subs
when to reduce the span
when employees have complex or dissimilar tasks
when to increase span
when employees have routine or similar tasks
Where is a company’s strategy set and governed?
The Boardroom
What stakeholders are sometimes hidden?
Suppliers, service employees, partners, the doers
Customers are the most visible
When shareholders rule supreme, how does this affect whether companies focus on customers’ short-term desires versus their long-term needs?
Many do focus short term for the profit, but the focus needs to be on long term to preserve the customers and keep them healthy - they should not be harmed from the goods companies produce.
What is the fundamental problem we have, in dealing with social problems: Why can’t we make a large-scale impact on these problems; what are we limited by?
progress can be shown but it cannot scale large enough because the resources are not available. scarcity is growing, more problems, less money
What is “shared value”? What does that term refer to?
addressing a social issue with a business model
meeting important needs
creates social and economic value simultaneously
dabbawalla accomplishments
5k people delivering 400k lunch per day
dabbawalla org structure
flat
governing body
team leads/supervisors
dabbawalla
equal shareholders, earnings are equal divided
size guidelines
1k members 4 levels
3k members 7 levels
10k-100k 9-10 levels
