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Final

ORGS 2010 Study Guide - Final Guide: Sensemaking, Social Loafing, Social Exchange Theory


Department
Organization Studies
Course Code
ORGS 2010
Professor
Eleanor Westney
Study Guide
Final

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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

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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.

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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)
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