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Chapter 8-11

Chap 8-11 OB Lists.docx

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Joel Marcus

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Chapter 8: Information Technology and Control Information for Decision Making and Control MIS – Management Info System - provides info/support for rapid/efficient managerial decision making EIS – Executive Info System - facilitates decision making at highest levels of management DSS – Decision Support System - enables all managers to test alternatives and choose the best one Feedback Control Model – cycle of setting goals, establishing standards of performance, measuring actual performance and comparing to standards, and changing activities based on feedback a) Management Control System – formalized routines, reports, and procedures that use info to maintain/alter patterns in organizational activity - targets set in advance, outcomes are compared to targets, differences reported to managers 4 elements: budget/financial reports, statistical reports, reward systems, quality control systems b) Balanced Scorecard – comprehensive management control system balancing traditional financial measures with operational measures relating to an organization’s critical success factors - examines financial performance, customer service, internal business processes and capability for learning/growth Adding Strategic Value: Strengthening Internal Coordination a) Intranets (private networks) b) Enterprise Resource Planning (ERP) - collects, processes and provides information about the company - helps show the ‘big picture’; how decisions in one part of an organization affect others c) Knowledge Management - efforts to systematically find, organize, and make available a company’s intellectual capital and to foster a culture of continuous learning and knowledge sharing so an organization’s activities build on existing knowledge Adding Strategic Value: Strengthening External Relationships a) Extranets b) Integrated Enterprise - organization that uses information technology to enable close coordination with the company - uses information linkages and horizontal relationships c) Customer Relationship Management (CRM) - systems that track customer interactions with the firm; allow employees to look up unresolved orders/service records while coordinating sales, marketing, and customer service d) E-Business Organizational Design i) In-House Division  tight integration with Internet and traditional operations ii) Spin-Off  gives Internet operation more flexibility/focus iii) Strategic Partnership  offers a middle ground between the above two options Chapter 9: Organization Size, Life Cycle, Decline Organizational Life Cycle 1. Entrepreneurial stage - create product/service - there is a need for leadership 2. Collectivity Stage - leadership - there is a need for delegation 3. Formalization Stage - rules/procedures - there is too much red tape 4. Elaboration Stage - collaboration/teamwork - there is a need for revitalization Organizational Control Strategies 1. Bureaucratic control - use of rules/policies/hierarchy of authority Three Types of Authority a) Rational-Legal Authority - employees’ beliefs in legality of rules and rights of authority figures b) Traditional Authority - beliefs in tradition, legitimacy of status of those w/ authority c) Charismatic Authority - devotion of heroism of an individual 2. Market control - use of prices and competition 3. Clan control - social characteristics are used (tradition, shared values/beliefs) Factors Affecting Organizational Decline 1. Organizational Atrophy - overly bureaucratic; can’t adapt 2. Vulnerability - vulnerable to shifts in consumer tastes 3. Environmental Decline or Competition - reduced energy/resources available to support org. Model of Decline Stages Stage Characteristics Solution 1. Blinded Stage Organization may need to Develop effective scanning and tighten up (may have excess control systems personnel, slow processes) 2. Inaction Stage Denial occurs; leaders persuade Leaders must acknowledge employees that all is fine decline and take prompt action to realign the organization with the environment 3. Faulty Action Stage Serious problems are being Retrenchment/downsizing faced; failure to adjust could result in organizational failure, major changes are necessary 4. Crisis Stage Organization is facing a panic Major reorganization, workforce downsizing may be severe 5. Dissolution Stage Irreversible decline, suffering Close down organization loss of market/reputation appropriately Techniques for Smoothing Downsizing Process: Communicate more, treat employees respectfully, provide assistance to displaced workers, help the survivors thrive Chapter 10: Organizational Culture & Ethical Values Layers of Culture a) Artifacts of Organizational Culture - material symbols, language, ritual, stories b) Underlying layer - beliefs, values, assumptions Culture Serves as 2 Critical Functions in Organizations a) Internal Integration - members of org. develop a collective identity, know how to work together b) External Adaptation - manner in which the organization meets goals and deals with outsiders Observable Aspects of Culture 1) Rites and Ceremonies a) Passage - ex. US Army Basic Trainin
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