MGT363 Exam Notes Great exam notes for MGT363. Includes all the key concepts that you will need to know for the exam. If it is an open book test, this will be all you will need!

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University of Toronto Mississauga
Ann Armstrong

CH1 Organizations and Organizational Theory Closed System would not depend on its environment it would be autonomous enclosed and sealed off from the outside world True closed systems cannot existOpen System must interact w the environment to survive it both consumes resources and exports resources to the environment Todays orgs have to feel at home anywhere in the world Every Org has 5 Parts 15 1 Technical Coreppl who do the basic work for the organization 2 Technical Supportfunctions that help the org adapt to the environment 3 Administrative Supportresponsible for the smooth op and upkeep of the org including its physical and human elements 4 Top Managementresponsible for directing and coordinating other parts of the organization 5 Middle Managementresponsible for mediating between top mgm and the technical core Design the org so that the 5 basic parts adequately perform the subsystem functions of production maintenance adaptation management and boundary spanning Try to maintain a balance among the 5 parts so that they work together for organizational effectiveness ORG TYPES AND BASIC COMPONENTS 16 Structural Dimensions 16 provide levels to describe the internal characteristics of an organization They create a basis for measuring and comparing organizations 1 Formalizationpertains to the amount of written documentation in the organization 2 Specializationthe degree to which organizational tasks are subdivided into separate jobs 3 Hierarchy of Authoritydescribes who reports to whom and the span of control for each manager 4 Centralizationrefers to the hierarchical level that has authority to make a decision 5 Professionalismthe level of formal education and training of employees 6 Personnel Ratiosrefer to the deployment of people to various functions and departments Contextual Dimensions 19 characterize the whole org including its size technology environment and goals1 Sizethe organizations magnitude as reflected in the number of people in the organization 2 Organizational Technologyrefers to the tools techniques and actions used to transform inputs into outputs 3 Environmentincludes all elements outside the boundary of the organization 4 Goals and Strategydefine the purpose and competitive techniques that set it apart from other organizations 5 Culturethe underlying set of key values beliefs understandings and norms shared by employees Efficiency 21 refers to the amount of resources used to achieve the orgs goals It is based on the quantity if raw materials money and employees necessary to produce a given level of output Effectiveness a broader term meaning the degree to which an organization achieves its goalsEfficiency is doing things right while effectiveness is doing the right thingto be effective orgs need clear focused goals and appropriate strategies for achieving them Scientific Management 24 postulates that decisions about orgs and job design should be based on precise scientific study of individual situationsdevelop precise standard procedures for doing each job select workers with appropriate abilities train workers in the standard procedures carefully plan work provide wage incentives to increase outputGood for machinelike orgs Contingency means that 1 thing depends on other things and for organizations to be effective there must be a good goodness of fit btwn their structure and the conditions in their external environment The correct management approach is contingentdepends onthe organizations situation many orgs are shifting from strict vertical hierarchies to flexible decentralized structures that emphasize horizontal collaboration widespread information sharing and adaptability Learning Organization 27 promotes communication and collaboration so that everyone is engaged in identifying and solving problems enabling the organization to continuously experiment improve and increase its capabilitybased on equality open information little hierarchy and a culture that encourages adaptability and participation enabling ideas to bubble up from anywhere to help the organization seize opportunities and handle crisesChaos theory relationships in complex adaptive systemsincluding organizationsare nonlinear and made up of numerous interconnections and divergent choice that create unintended effects and render the universe unpredictable Therefore organizations should be viewed more as natural systems than welloiled predictable machines we now have ebusiness globalization diversity ethical concerns shift in technology NowDecentralized structure vertical to horizontalLearning organizations flexibility and adaptabilityRoutine tasks to empowered rolesFormal control systems to shared informationCompetitive to collaborative strategy with suppliers customer even competitionRigid to adaptive cultureCH2 Strategy Organizational Design and Effectiveness Strategies are derived from analyzing the environment If the org design constrains goals and strategy the design is changed also past performance is assessed to set new goals Therefore the goals strategy and organizational design structure greatly impact effectiveness in todays required learning structure Mission orgs reason for existencewhat they are working towards Operative goals performance resources market goals share in market employee development RDProductivity What they have to do to get thereFramework for selecting strategy and design Porters 4 strategies 1 Lowcost leadership 2 Differentiation 3 Focused lowcost leadership 4 Focused differentiationMiles and snows strategy typology Prospector strategy a learning orientation b fluid flexible and decentralized structure c strong research capability and d values creativity innovation and risktaking Defender strategy a efficiency orientation b centralized authority and tight cost control and c close supervision and little employee empowerment Analyzer strategy a balances learning and efficiency b tight cost control with adaptability c efficient production for stable product lines and d values creativity innovation and risktaking Reactor strategy a no clear organizational approach b knee jerk responses to changing conditions and c design characteristics may shift abruptly Effectiveness Approaches 65Resourcebased focus is on obtaining and managing resources successfully It is useful when other indicators of performance are difficult to obtain Eg it is hard for a nonprofit to measure output goals or internal efficiencies Shortcomings Since it assumes stability in market it fails to adequately consider the changing value of various resources as the competitive environment and customer needs changeInternalfocus is on efficient use of resources and harmonious internal functioning Focus based on human relations effectiveness as happy committed actively involved employees and a positive org culture are considered important measures of effectiveness Shortcomings Total output and relationship with external environment are not considered Evaluations of internal health are often subjective bc theyre not quantifiableGoalsfocus is on identifying an organizations output goals and seeing how the organization achieves them Eg level of output profit or client satisfaction Important to consider operative goals as official goals are abstract and difficult to measure Problems Multiple goals and subjective indicators of goals attainment ie there are multiple indicators and different departments have different goals Eg Walmart wants to take a hit to revenue by decreasing margins while increasing expenses yet they want to increase profit margins Integrated effectiveness modelThe competingvalues model tries to balance bw various parts of the organization rather than focusing on one combining several indicators into one It considers different expectations from different stakeholders It considers following dimensions Focus The dominant values concern issues that are internal or external Structure Stable management values efficiency and topdown control or Flexibility values learning and change Result4 approaches sub goals facilitate primary goals FlexibilityHuman relations emphasis internal focus and flexible Opensystems emphasis external focus and flexible structurestructure Primary goals growth and resource acquisitionPrimary goal human resource development Sub goals flexibility readiness external evaluationSub goals cohesion morale training External InternalInternalprocess emphasis internal focus and structural Rationalgoal emphasis structural control and external focus controlPrimary goals productivity efficiency profit Primary goal stability equilibriumSub goals planning goal setting Sub goals information management communication ControlConclusion 4 competing values exist but depending on the type of organization priority is given to some over the others Eg a young organization is focused on open system and human relation bc they are not well established and is in a learning phase
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