Unit 10 Flashcards
What are the 2 causes of change?
Internal/External
What is incremental change?
Small changes responding to opportunities and threats
What is disruptive change?
Arisen from changes in external environment
What does Lewin’s Force Field Analysis assess?
Driving forces and resisting forces to change
What is restructuring?
Changing capital structure or business scope
What is delayering?
Removing layers of the hierarchy
What is an organic structure characterised by?
Informal, flexible, accepts change
What is a mechanistic structure characterised by?
Formal, centralised, no perceived need for change, resist change
What are Kotter and Schlesinger 4 resistors to change?
Self-interest, misunderstanding, different assessment, low tolerance
What are the 6 ways to overcome barriers to change?
Education, manipulation, coercion, negotiation, facilitation, participation
What are Handy’s 4 classifications of organisational culture?
Power, person, role, task
What is organisation culture?
Unspoken way things are done within a business
What are Handy’s 6 dimensions of international culture?
Masc v Fem, Long-term orientation, Uncertainty avoidance, power distance, indulgence v restraint, individualism v collectivism
What is a strong culture?
Embedded and staff understand
What is a weak culture?
Little alignment of values and inconsistent behaviour
What are 3 reasons for changing organisational culture?
Poor performance, new leadership, external environment
What are Johnson and Scholes’s 6 problems when changing organisational culture?
Power structures, symbols, stories, routines, control systems, organisational structures
What are the 4 sections of Schein’s model?
Paradigm, behaviours, beliefs, values
What is strategy?
The choices a business makes to achieve its objectives
What is a functional structure?
Business organised into different departments based on expertise
What is a product-based structure?
Assign employees to specific divisions for their product
What is a regional structure?
Divisions based in different geographical areas
What is a matrix structure?
Traditional departments in functional structure have project teams
What is critical path analysis?
Planning method to help a business complete a project in the shortest amount of time possible
What is considered the critical path?
Longest duration to complete a task
What goes in the left half of each task?
Node
What goes in the top right quadrant?
Earliest start time
What goes in the bottom right quadrant?
Latest finishing time
What is the EST where the activities meet?
Highest figure
What is the LFT where activities meet?
Lowest figure
What is a float and how do we calculate it?
The time an activity can be delayed without the project time increasing. LFT - activity duration - EST
What is a planned strategy?
Strategy following corporate objectives
What is an emergent strategy?
Strategy that adapts to external changes
What is strategic drift?
When a strategy fails to adapt to the external environment
What is corporate governance?
The system by which a company is directed and controlled
Who is responsible for corporate governance?
Board of directors
What is strategic planning?
Planning to achieve long term goals
Why is strategic planning useful?
Informs internal stakeholders of where the business is heading which helps reduce uncertainty and risk
What is the issue with strategic planning?
Does not consider changes in the external environment
What is contingency planning?
A plan to overcome unexpected events
Why are contingency plans useful?
Reduce damage from external changes
What is the issue with contingency planning?
Impossible to plan for every eventuality + opportunity cost
Draw the strategic drift model.
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