MGT363H5 Final: MGT363 Exam Review 2016

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Loretta Howard

MGT363 EXAM REVIEW: CHAPTERS 9, 10, 11, 12 Chapter 9 – Organizational Culture and Ethical Value • Social capital – the quality of interactions among people and whether they share a common perspective. A high degree of social capital means relationships are based on trust, mutual understandings, and shared norms. • Culture is the set of values, norms, guiding beliefs, and understandings that is shared by members of an organization and is taught to new members. This can be seen by underlying values, assumptions, beliefs, attitudes, feelings as well as symbols, behaviour, clothing and the physical setting. o Internal integration: Members develop a collective identity and learns how to work together effectively. o External adaptation: How the organization meets goals and deals with outsiders. It can help the organization respond to competitors. • Rites and ceremonies – special occasions that reinforce specific values and create a bond among people for sharing an important understanding. o Passage – introduction and employee training o Enhancement – annual employee award night o Renewal – new development activities o Integration – office holiday party • Stories – narratives based on true events that are shared with employees and are told to all staff to inform them about the values of an organization. • Heroes – company models who serve as influence for serving cultural norms • Legends – events are historic and are embellished with fictional details. • Myths – consistent with values of the organization but not supported by facts. • Language – organizations use a specific saying, slogan, metaphor, or other form of language to convey special meaning to employees and customers. Organization Designs 1. Adaptability culture – characterized by strategic focus on the external environment through flexibility and change to meet customer needs. 2. Mission culture – characterized a clear vision of the organization’s purpose and on the achievement of goals, such as sales growth, profitability, or market share. 3. Clan culture – a primary focus on the involvement and participation of the organization’s members and on rapidly changing external environment. 4. Bureaucratic culture – has an internal focus and a consistency orientation for a stable environment. This organization supports a methodical approach. • Culture strength – the degree of agreement among members of an organization about the importance of specific values. • Subcultures – reflect the common problems, goals, and experiences that members of a team or department. MGT363 EXAM REVIEW: CHAPTERS 9, 10, 11, 12 • Culture can play an important role in creating an organizational climate that enables learning and innovative response to challenges, and competitive threats. o Whole is more important and boundaries between parts are minimized o Equality and trust are primary values. o The culture encourages risk taking, change, and improvement. • Ethics – the code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong. • Rule of law – a set of principles and regulations that describe how people are required to act, generally accepted in society, and are enforceable in the courts. • Managerial ethics – principles that guide the decisions of managers about whether they are right or wrong. • Social responsibility – extension of management’s obligation to make choices and take action so that the organization contributes to the welfare and interest of stakeholders, employees, customers, the community, and the broader society. • Ethical dilemma – arises in a situation in which values are in conflict. • Values-based leadership – relationship between a leader that is based on shared, strongly internalized values advocated and acted upon by the leader. • Ethics committee – group of executives who oversee company ethics. • Chief ethics officer – executive who oversees all aspects of ethics, including establishing ethical standards, supervising the investigation of ethical problems, and advising managers of ethical corporate decisions • Ethics hotlines – employees can use to seek guidance/ report weird behaviour. • Whistle-blowing – an employee reporting illegal, immoral, or illegitimate practices on the part of the organization. • Code of ethics - a formal statement of the company’s values concerning ethics and social responsibility; it clarifies to employees what the company stands for. • Social audit - measures and reports the ethical, social, and environ- mental impact of a company’s operations. Chapter 10 – Innovation and Change Forces driving the need for organizational change: • Global changes, competition, new markets, expansion • More threats • More opportunities • Large developments/improvements in an organization Incremental changes - represents a series of continual progressions that maintain the organization’s general equilibrium and often only reflect part of an organization Radical changes - breaks the frame of reference for the organization, often transforming an entire entity within an organization dramatically MGT363 EXAM REVIEW: CHAPTERS 9, 10, 11, 12 Product and service changes - changing outputs of products such as improving existing products or entirely new product lines. New products and services are designed to increase the market share or to develop new markets, customers, or clients. Strategy and structure changes - pertain to the administrative domain in an organization. The administrative domain involves the supervision and management of the organization. These changes include changes in structure, management, policies, rewards, labour relations, coordination devices, information and control systems, and accounting and budgeting systems. Culture changes - changes in the values, attitudes, expectations, beliefs, abilities, and behaviour of employees. Technology changes - changes in an organization’s production process, including its knowledge and skill base, that enable distinctive competence. These changes are designed to make production more efficient or to produce greater volume. Organizational change - considered the adoption of a new idea or behaviour by an organization. Organizational innovation - the adoption of an idea or behaviour that is new to the organization’s industry, market, or general environment. Change Process 1. Idea 2. Needs 3. Adoption 4. Implementation 5. Resources Organic structure - Consists of decentralization meaning authority to control tasks is delegated, Employees work together and coordinate tasks, much verbal communication, task forces and teams are primary integrating mechanisms Mechanistic structure - Consists of centralization meaning decision-making is kept as high as possible, employees work separately and specialize in one task, much written communication, hierarchy of authority is well defined Ambidextrous approach—to incorporate structures and management processes that are appropriate to both the creation and the implementation of innovation. Techniques for Encouraging Technology Change • Switching structures - an organization creates an organic structure when such a structure is needed for the initiation of new ideas. MGT363 EXAM REVIEW: CHAPTERS 9, 10, 11, 12 • Creative departments - staff departments, such as research and development, engineering, design, and systems analysis, create changes for adoption in other departments. • Idea incubator - provides a safe harbour where ideas from employees in an organization can be developed without interference from bureaucracy/politics. • Venture teams are a technique used to give free rein to creativity, they often are given a separate location and facilities so they are not constrained by organizational procedures. • Skunkworks - a separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business. • New-venture fund - provides financial resources for employees to develop new ideas, products, or businesses. • Corporate entrepreneurship - to facilitate idea champions facilitate idea champions, going by a variety of names, including advocate, intrapreneur, or change agent. • Technical/product champion - the person who generates or adopts and develops an idea for a technological innovation • Management champion - acts as a supporter and sponsor to shield and promote an idea within the organization. Horizontal Coordination - The company’s department interacts with the environment concerning two main factors which are the technical developments and the customer’s needs. Technical, marketing, and production teams share ideas and information. They all coordinate and collaborate with each other, so the decision to launch a new product is ultimately a joint decision among all three departments. Horizontal coordination, using mechanisms such as cross-functional teams, increases the information for new product development. Time-based competition - delivering products and services faster than competitors, giving companies a competitive edge. Dual-core approach - change compares administrative and technical changes such as the design and structure of the organization itself, including restructuring, downsizing, teams, control systems, information systems, and departmental grouping. Forces for Culture Change • Re-engineering and horizontal organizing • Diversity • Learning organization Culture Changes • Organization development - Focuses on the human and social aspects of the organization as a way to improve the organization’s ability to solve problems. • Large group intervention approach - Brings together participants from all parts of the organization, including key stakeholders from outside the organization as well—in an off-site setting to discuss problems or opportunities and plan for change. MGT363 EXAM REVIEW: CHAPTERS 9, 10, 11, 12 • Team building - Promotes the idea that people who work together can work as a team. A work team can be brought together to discuss conflicts, goals & decision- making processes. • Interdepartmental activities - Representatives from different departments are brought together in a mutual location to expose conflicts, diagnose the cause and plan improvement. Barriers to Change • Excessive focus on costs. • Failure to perceive benefits. • Lack of coordination and cooperation. • Uncertainty avoidance. • Fear of loss. Experience Change Model 1. Understand 2. Enlist 3. Vision 4. Motivate 5. Communicate 6. Act 7. Consolidate Kotter’s Seven Steps for Implementing Change • Establish a sense of urgency for change • Establish a coalition to guide the change • Create a vision and strategy for change. • Find an idea that fits the need. • Develop plans to overcome resistance to change. • Create change teams. • Foster idea champions. Chapter 11 – Decision-Making Processes • Organizational decision making - defined as the process of identifying and solving problems. • Problem identification stage - Information about environmental and organizational conditions is monitored to determine if performance is satisfactory • Problem solution stage - When alternative courses of action are considered and one alternative is selected and implemented. Programmed decisions - Repetitive and well defined, and procedures exist for resolving the problem. They are well structured because criteria of performance are normally clear and good information is available. MGT363 EXAM REVIEW: CHAPTERS 9, 10, 11, 12 Non-programmed decisions - are ill structured, and poorly defined, and no procedure exists for solving the problem. They are used when
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