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Rotman Commerce
Course Code
John Oesch

of 7
Jan. 26 Notes
Burn Rate the money spent that you dont already have.
Low cost, and an environmental niche
Hires volunteers
Organizational Structure
Division of labour and specialization Adam Smith
However, the extreme of that concept leads to a boring work style
Case Study PMC
Line Authority
Which of the following is not part of functional strategy?
A_ Marketing strategy
B. Human Resource Management
C. Blue Ocean
D. Financial
E. Research and Development
Formal Hierachy Small span of control and inefficient, however information is accurate
Standardized Check Lists are good for routine environments like pilots.
Flat Organization lots of workers per manager
Tall Organization lots of managers, few workers
Buyers can exert power when...
A. Many buyers are attempting to purchase your products
B. They buy from one large supplier
C. Your product is the main source of their income
D. They have a large share of the market for your product
Corporate Strategies:
a.Establish positions
b.Boost combined performance
c.Capture congruence benefits
d.Prioritize investments
e.All of the above
Porsche Functional Strategy:
6 weeks to 3 days to build a car. Efficiency ratings = 1/3 of normal person hours per car.
They didnt reorganize their management entirely but made a turnaround in the 1990’s.
Siloes no communication or exchange between the siloes, a metaphor for a lack of communication in a
A siloed organization is one which functions rarely get involved with one another and coordination is not
Divisional Strcuture
Which Chapters do you want to summarize/make notes & questions for? (Take two)
3, 6, 7, 8, 9, 10
9, 10 Jackie
7, 8 Angela
3, 6 Yefan
Historical Overview (HRM)
Strategic Management Everyone in the company should be thinking about and see how the right
people fit into this plan.
Lincoln Electric Paid by piecework. Its a good fit for what they do, highly productive strategy.
SAP Software company thats tailored to whatever organization that buys it (U of T buys it).
Ambiguous, ill-defined tasks. Customers pay a premium for differentiation.
Strategy implementation diagrams
People, Reward Systems, Managing Culture (Loves money)
Role of HRM in the Strategic Management Process
-Administrative Role
-One-Way Linkage
oHR is involved in implementation, not formulation
-Two-Way Linkage
oHR is involved in implementation and formulation
oTeam informs HR of ideas, HR analyzes them, decides on the plan, and implements it
SHRM Strategic Human Resource Management
Increase in sales and market value in companies with SHRM.
From Chapter 7:
1)A learning Organization attempts to
a)Improve quality
b)Terminate poor performing staff
c)Continously improve processes
d)Provide training to poor performing staff
e)All of the above
f)A, c, d only
2) The Canadian Armed Forces is called a tall organization because
a)Is very decentralized
b)Has a large span of control
c)Is very centralized
d)Is very informal
e)Has a small span of control
3) Betty has been a cashier for 25 years. When she makes an error, she must call for
override. This procedure indicates something about Loblaws.
a)Span of control
d)Centralization (No decision control)
e)All of the above
f)B and C only
4) Which of the following are advantages of functional structure?
a) Expertise develops within each function
b) eliminates duplication of activities
c) employees have clearly defined careers
d) strong culture develops within each function
e) all of the above
f) a, b, and c only
HRM Design
Job Practice figure out what an employee needs to do; motivational or mechanistic
Motivational personal shoe-maker or clothing designer (fit to the clients’
Mechanistic sweatshop in Vietnam or Lincoln Electric (all about
Job Analysis Relevant to managers, and the job incumbent
Recruitment process of attracting the best qualified persons for the job
Internal Lincoln Electric and Most Accounting Firms
External Outside the organization, but with matching skill set, SAP &
Selection Gathering information from applicants that will predict their job success
Intelligence tests, work sample tests, not personality tests
Performance Appraisal What gets measured gets done.
Counterproductive: theft, blame others, fight/argue
Training and Development many MBAs are being paid by their company
Compensation and Benefits how to most effectively pay their people so they can be
productive: Incentives: merit pay, profit sharing, gain sharing, stock options (e.g. Microsoft)
Organizational Justice Many overlook this category; Is this a fair place to work? Who
gets to decide how much you get paid? Who do I approach when its not being fair?