BUS 374 Study Guide - Summer 2018, Comprehensive Midterm Notes - Exelis Visual Information Solutions, Interaction, Trust Law
BUS 374
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Org Size: Is Bigger Better?
• Pressures for orgs to grow → to stay econ healthy; stop growing = stagnate, demands not full
et, opetitors ↑ arket share at ep of our opa
• Dilemmas of org size:
o Large
▪ Huge resources, econ of scale needed to compete globally
▪ Get back to business faster following a disaster, gives employees a sense of
security/belonging
▪ Standardized, mechanistically run, complex
o Small
▪ Quiker reatio to ∆ig ustoer eeds or shiftig ei & ark od’s
▪ Bigger =/= mean better performance
▪ Small bus account for tremendous portion of G/S provided
▪ Flatter, organic, free-flowing mgmt. style that encourages entre & innovation
o Big/Small Hybrid
▪ Small are emphasized on being fast/flex in responding to envi; but they can be
victims of success as they grow large (shift to mechanistic structure emphasizing
vertical hierarchies)
▪ Big are more committed to existing prod/tech, hard time supporting innovation
• Deelopet of e org fors + ↑ use of teh = akes it easier tha eer for opaies to e
simultaneously large & small, capturing adv of each
Org Life Cycle
• Life cycle = suggests that orgs are born, grow older, eventually die
o Org structure, leadership style, admin systems follow fairly predictable pattern through
stages in life cycle
• Stages in life cycle development:
o Entrepreneurial stage
▪ Emphasis on creating G/S, surviving in marketplace
▪ Informal, nonbureaucratic
▪ Growth from creative new G/S
▪ But as org starts to grow, larger # of employees causes problems → so
entrepreneurs must either adjust structure of org to accommodate continued
growth or bring in strong mgrs. who can do so
o Collectivity stage
▪ Leadership crisis resolved = strong leadership obtained, org begins to develop
clear goals/direction
▪ Dpts established along w/hierarchy of authority, job assignments, beg stage of
labor
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▪ If new mgmt successful, lower level employees gradually find themselves
restricted by strong top-down leadership; lower level mgrs. begin to acquire
ofidee i o f’al areas, at ore disretio
• Autonomy crisis occurs when top mgrs., who were successful b/c of
strong leadership/vision, =/= want to give up resp
o Formalization stage
▪ Installation, use of rules/procedures/control systems
▪ Less freq & more formal CMNS
▪ Top mgmt. concerned w/strategy & planning, leaves ops to middle mgmt.
▪ Prod groups or other decentralized units may be formed to improve
coordination, may introduce incentive systems based on profit
▪ Proliferation of systems & programs may begin to strangle mid-level execs →
org seems bureaucratized, innovation is restricted
o Elaboration stage
▪ New sense of collab & teamwork → mgrs. develop skills for confronting probs &
working tgt
▪ Soial otrol, self disiplie redue eed for add’l foral otrols
▪ Formal systems may be simplified & replaced by mgr teams & task forces
▪ After org reached maturity, may enter periods of temporary decline → need for
renewal
o
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Document Summary
Life cycle = suggests that orgs are born, grow older, eventually die: org structure, leadership style, admin systems follow fairly predictable pattern through stages in life cycle, stages in life cycle development, entrepreneurial stage. Leadership crisis resolved = strong leadership obtained, org begins to develop clear goals/direction: dpts established along w/hierarchy of authority, job assignments, beg stage of labor. Innovative structural solutions overcome probs of bureaucracy in rapidly changing envi. Increasing professionalism of employees: professional partnership orgs partnerships where the branches have substantial autonomy & decentralized authority to make necessary decs, work w/consensus orientation rather than top-down direction. Job-shop operations that manu & assemble small orders to meet spec needs of customers: custom work is the norm, s(cid:373)all (cid:271)at(cid:272)h p(cid:396)od"(cid:374) = (cid:396)elies hea(cid:448)il(cid:455) o(cid:374) hu(cid:373)a(cid:374) ope(cid:396)ato(cid:396) not highly mechanized, large batch & mass p(cid:396)od"(cid:374) Lean manu = highly trained employees used @ e(cid:448)e(cid:396)(cid:455) stage of the p(cid:396)od"(cid:374) p(cid:396)o(cid:272)ess, (cid:449)ho (cid:272)ut (cid:449)aste. Integration create common bonds & good feelings among employees.