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Final ORGS 2010 Full Exam Review.docx

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Organization Studies
ORGS 2010
Eleanor Westney

WEEK TWO – ORGS AS A STRATEGIC DESIGN Strategic Design:  Fundamental concept: Maximization of organizational efficiency and effectiveness o Efficiency: Accomplishing strategic goals with the least possible expenditure of resources o Effectiveness: Ensuring goals are accomplished to the standard necessary to succeed  Managers can make organizations successful by: o Value proposition and Distinctive competitive advantage establishes what activities the organization must carry out to achieve success in its strategies (i.e.: Strong R&D) Key Elements of Organization Design:  Information Processing and Enhancing System  Task: (Complexity and Routine)  Task Interdependence: (Sequential, Pooled, or Reciprocal Interdependence) Organizational Design: Strategic Grouping: Gathers together tasks, functions, or disciplines & separates them from others 1. Grouping by Expertise/Function o Advantages:  It allows the development of deep functional expertise and specialization of knowledge  "Economies of Scope" - makes it relative easy to transfer resources across activities  Allows each group to create separate alignment systems suited to its needs/strengths o Disadvantages:  Individuals develop narrower perspectives/difficulty solving problems individually  Difficulty to assess costs clearly and accountability for overall performance  Few opportunities for managers to gain experience outside their functional areas 2. Grouping by Output/Product o Advantages:  Makes the costs and profits of each business clearer than does the functional structure  Provides managers of the product division a clear strategic focus o Disadvantages:  Makes it difficult for units to share resources and can lead to duplication of activities  Difficult to create new business 3. Grouping by Market (Geography or Customer) o Advantage:  Developing deep customer knowledge and close customer relationships  Allows organizations to tailor its products and services to differentiated customer needs o Disadvantages:  Duplication of activities and resources  Erosion of deep technical expertise  Missed opportunities for synergies and learning Hybrid Structures: Organizational strategies requiring attention to many priorities simultaneously Matrix Organization: o Organizational form that picks two strategic grouping dimensions and gives them equal weight in the organization structure, the manager of each operating unit reports to 2 "bosses" o Business/Functional Matrix: The right side of the matrix contains the traditional functional departments and the left side composed of product groups o Hard to report to two bosses and it gets more complex Front/Back Structure: o Organization divided into the two parts:  Front End: Functions that directly relate to the customer: Marketing, Sales, Support etc.  Back End: Organized by product, Includes tech, development, production, logistics. o Advantages:  Builds close integration of technological development and production in the back end  Builds close customer relationships & deep knowledge of market characteristics in front o Disadvantages:  Poor integration between market needs and technology development  Ensuring integration and synergy between the front and back end is a challenge Strategic Linking Designing structures and processes to connect and coordinate organizational units and subunits whose tasks are interdependent but that have been separated by strategic grouping decisions o Dotted Line Relationships: Lower ranking responsible to supply info to higher ranking person o Liaison Roles: Responsible to coordinate across the groups to specific individuals for info o Integrator Roles: Deals with problems involving several units o Permanent Cross-Unit Groups: Representatives of different task or work groups pooling info o Temporary Cross-Unit Groups: Representatives of different groups focusing on problems o Information Technology Systems: Linking through computer and advanced technology o Planning Processes: People from different groups working together to identify major issues o Co-location: Putting people/subunits that need to exchange information in the same location Alignment Ensuring that the units and individuals assigned certain tasks and activities by the grouping and linking patterns have the resources and the motivation to carry them out effectively Performance measurement systems: o Provides information that signals to organization whether is design is effective o Align individual performance measurement systems of subunit and organization with strategy Rewards and Incentives: o Aligning rewards and incentives with the strategic grouping and linking patterns o Theory X: Views individuals as oriented to material rewards o Theory Y: Belief that most individuals want to do a good job, and that the main challenge in designing reward systems is to avoid misalignment that rewards (incorrect) behaviour Resource Allocation: o Assessing adequacy of resource to carry out the assigned tasks can be difficult Human Resource Development: o Primary activity is the assignment of people to positions, jobs, and tasks. WEEK 3 – ORGS AS A POLITIC SYSTEM  Arena for competition and conflict among individuals, groups, and other organizations whose interests and goals differ and even clash dramatically.  Political systems are built from positions and strength OR "interests and power" Interest: o Recognize and Analyze the interests and what priority the individual/group has Power: o Potential ability to influence behaviour, change course of events, overcome resistance Three variants of power: Influence, authority, and coercion o Authority refers to power that is defined as legitimate by those who are subject to it o "Push it up" - asking someone higher in the organization with authority to resolve the issue o Influence is used when someone does not have formal authority but develops the ability to induce or persuade others to act in ways they would not act in the absence of influence o Coercion is the control of the behaviour of one individual by another who can offer or restrict benefit inflict punishment When does someone have power? Personal Characteristics, Scarce and Valued Expertise, Past Performance/Track Record, Formal Position, Informal Network Position, Linking Structural Holes (holes where there is no direct link between subunits and individuals) Four ways to Assess Power: Reputation, Representational Indicators, Observation of Consequences, and Symbols of Power Using the Political Lens to Take More Effective Action in Organizations 1. Mapping Interests and Power o Understand who is affected by what you want to do, what their interests are, and how much power they have to facilitate or to block what you propose to do  Supporters, Blockers, Potential Stakeholders, Existing Coalitions: (Friends and Allies) 2. Getting "Buy-In" o Getting people to commit themselves to support/participate in something begun by another o Techniques to get them "buy-in":  Escalation of Commitment, Perception of Influence (Asking for feedback/input) 3. Finding Allies and Building a Coalition: o A coalition is a set of allies who act together to support certain policies and activities. It can be built to support a specific course of action 4. Building a (Informal) Network o Effective network extends in three directions:  Upward, Horizontally, Downward o The key challenge is how to effectively expand and improve your network o To construct effective networks, invest in reciprocity (share info) and trust (rewards) 5. Building your Negotiation Skills o Negotiation is a central element of managerial capability in an increasingly networked organizational world. (Recognize interest & influence those people you are negotiating with) WEEK 4 – ORGS AS A CULTURE Cultural Perspective: o Focuses on what people believe and value – How the organization develops those views The Centrality of Symbolism o Organizations focus on values, languages, beliefs, founding legends, social norms, myths, etc. o Symbols carry denotative and connotative meanings  Denotative: refer to the direct, instrumental uses of a symbol  Connotative: refer to the expressive, more general and broader uses of a symbol o Symbolism is the elementary of fundamental process that makes organizational behaviour both possible and meaningful Toward a Working Definition of Culture: o Culture refers to a way of life shared by members of a given society and includes knowledge, belief, art, morals, law, and other abilities and habits acquired by members of the society. o Structure represents institutional conditions that characterize the communal, economic and political life of a given society. Culture and Control: o Coercive theory: people will respond only when management holds a symbolic wipe at them o Exchange theory: people work for tangible rewards like money and things that money will buy o Motivate employees by:  Altering organizational structure in the hope that the culture will follow.  Create a preferred kind of organizational culture directly by recruitment, selection, training, placement and long term career development programs/policies Subculture and Segmentation: o Subcultures are groups of people who share common identities based on characteristics that often transcend or override their organizationally prescribed roles and relationships o Sub-cultural groupings emerge from ethnicity, occupational interests, educational background o Managers develop their own sense of culture beyond that of their employing organization Toward a Cultural Diagnosis of Organizations:  World is increasingly interconnected and new communication, production, and transportation technologies alter the way business is conducted at home and around the world  Six features of cultural lens on organizations: o Symbols and meaning: trying to figure out what things mean to what people o Identity o Social Control: Acting in a way that benefits the goals of an enterprise o Subcultures: Provides alternative identities for employees and allow meanings that flow from groups outside the firm's boundaries o Cultural Relatively: Strong cultural models claim that national, local, or firm specific culture explains organizational behaviour o Habits and History: Culture emerges slowly and unevenly and is dependent on what has worked in the past to sustain group endeavours. Built on traditions and experiences of success Key Framework: The Three Lenses Strategic Design: Grouping, Linking, Aligning Political: Interests, Power and Influence Cultural: Artefacts and symbols, values and shared assumptions, identity, mental models Organization as an Environment: - Strategic Design: Definition of task and expected outcomes; source of information and expertise - Political: Key organizational Stakeholders, their interests, and their power - Cultural: Shared framing of what makes a good team Teams in Organizations: - Strategic Design: Improving the flow of resources, work, and information into and out of the team - Political: Identifying key stakeholders and their interests, power, and influence; building coalitions with external stakeholders to further the team’s interests - Cultural: Identifying the external expectations facing the team, and changing those that lower the team’s chance for (perceived) success “Social loafing:” Can lead to: - Loafer Apathy: Slacking and poor quality leads to other members doing more work - Loader Social Disconnectedness: Disrupting, Distracting, Poor quality leads to poor performance The Organization as a Strategic Design: o View of the organization: input-throughput-output system o Takes inputs from the environment, adds value to them in some way, and conveys the resulting product or service to clients or customers so that it gains the resources to continue the process o Grouping (differentiation), linking *integration, and aligning o View of the environment: resource base (source of inputs), competitive market, “organization-set” o Maps the resource environment primarily in terms of the input-set and the output-set. The input set includes the organizations that provide required inputs (materials, human resources, technology, and knowledge). The output set includes customers, distributors, retailers, etc. that provide whatever infrastructures required for getting the output to the customer. Two elements: o Regulatory Set: the organizations that have formal authority to regulate the organization's own internal processes and those that affect the size of the input and output sets o Organizational Set: looks at competitors and potential competitors with whom the organization interact o Role of the Leader: “organizational architect”, strategist o Stimuli for Change: Lack of internal alignment, lack of “fit” between organization and environment o Obstacles to Change: Inadequate information (they don’t get it), inadequate analysis (the case isn’t convincing) The Organization as a Political System: o Key processes: conflict, negotiation, coalition building, networking o View of the environment: external stakeholders o Role of leader: forging coalitions, identifying/leveraging interests, negotiating, resolving conflict o Stimuli for change: shifts in dominant coalition, in power of stakeholders o Obstacles to change: entrenched interests (“they won’t buy in because they stand to lose”) Using the Politics Lens: - Mapping interests & power: o Commitment chart o Stakeholder mapping - Getting “Buy-in”  Escalation of commitment o Asking for input o Leveraging peer influence through networks - Finding allies & building a coalition - Building a network - Negotiating: trying to reach an agreement between two parties (or more) who have at least some different interests - distributive or integrative bargaining The Organization as a Cultural System: - View of the organization: a social construct – what we think it is - Key concepts: identity, symbols, values, basic assumptions - Key processes: meaning and interpretation, legitimating, socialization - View of environment:”institutional field” - Institutional Field to analyze the interactions between organizations and their environments that focus on shared beliefs, values, and mind-sets o Institutionalization: process where certain organizational patterns are accepted as legitimate o Draws a more extensive map of the environment: it includes a much wider set of social actors that do not themselves engage in direct transactions with the organization o
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