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COMM 210 Study Guide - Midterm Guide: Research And Development, Red Tape, Formal System

6 pages192 viewsWinter 2017

Course Code
COMM 210
Francois Bastien
Study Guide

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Chandler: Organizational Success
CLAIM: Sucessful firms capitalize on economies of scale and scope; they have a
functional management structure and invest in research and development and
grow from related diversification. This allows them to stay ahead of competition.
Economies of scale: Production rises and cost per unit drops (The
bigger, the better).
Economies of scope: same raw material, different products.
First movers: First to arrive with the product competitive advantage
Research & development: New ideas, innovation.
Related diversification: related industries.
Unrelated diversification:
- Poor corporate strategy
-Separation of top and middle managers.
-Smaller business Short-term thinking
Management hierarchy: separation of upper and lower level
Managerial enterprise: Making investments in management, production
and distribution in order to capitalize in economies of scale and scope.
Greiner: Evolution & Revolution as organizations grow
CLAIM: Organizational growth is done in 5 phases and by implementing the right
strategies and managerial structures, they can resolve the crisis and move on.
*Each phase begins with a period of evolution and has its moments of stability
and growth but eventually ends with a revolutionary period.
*Management practices that work well in one phase can bring crisis in another.
5 Key dimensions of organizational development:
1) Age: the life span of a company determines the number of organizational
practices that have been used.
2) Size: the more the number of employees and volume of sales, the more
the management is going to have to change its org. structure.
3) Stages of evolution: prolonged growth
4) Stages of revolution: turbulence and crisis between periods of evolution,
companies must abandon past practices and effect major org. changes to
manage the next stage of ev. growth.
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5) Growth rate of the industry: the speed at which an organization goes
through the stages us related to the market environment in the industry.
Evolutionary periods:
Shortfast-growing industries
Longslow-growing industries
The 5 phases of growth: (Quiz let to learn)
Emphasis on creating a product and market
Frequent, informal communications
Founders give-up managerial responsibilities
Crisis of leadership: as the company grows, new procedures need to be
implemented to keep everything in order and be efficient.
Solution: hire a strong business manager to give direction.
After the business manager is installed, comes period od sustained
Job assignments become specialized
More formal communication
Structural hierarchy develops
Crisis of autonomy:
The hierarchy created problem between higher and lower ranked
Lower-ranked employees feel more knowledgeable than their higher
ranked bosses.
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