Strategy - Week 1 Flashcards
the challenge of human relations
the realization that organizations were not just a machine full of cogs, but a group of human beings
- these people needed incentives to be motivated for working
Mechanistic vs Organic organizations ***
Compares two types of organizations:
one that focuses on maximizing task efficiency, while the other focuses on motivation and commitment
Weber’s theory of modern bureaucracy: What were the 3 distinct characteristics?
Structure
Technocracy
Accountability
Define structure in the context of Weber’s theory
well defined hierarchies, where people asserted power based on their position rather than charisma
Define technocracy in the context of Weber’s theory
Roles as full-time jobs, allocated by qualification and merit
Define accountability in the context of Weber’s theory
A central role for organizational record keeping
what is the debate behind Bureaucracy?
one one hand it can maximize efficiency and push new limits
while also it can dehumanize people and make them feel insignificant
define mechanistic organizations
centralized decision making, defined responsibilities, and formal rules of control; maximizes efficiency
define organic organizations
distributed decision making, fluid responsibilities, more social forms of control; emphasis on people and culture
What organizations are more effective in TURBULENT environments
organic, because they can adapt and change easier
What organizations are more effective in STABLE environments
mechanistic, because they’re more resilient and process oriented
configurational theories
success comes from the combination of characteristics
each department of the business needs to be operating in sync for each respective structure to work
contingency theories
the impact of structure is dependent on the fit and task environment
divisional organization vs functional
a divisional organization hires/organizes employees based on product lines, countries, etc
while functional organizations segment their employees based on the function of work they’re performing like accounting in the accounting dept.
define boundary spanning in an organization
how much employees interact with others in different depts. or hierarchies
“a low boundary spanning organization has minimal communication b/w jr’s and sr’s