Organizational Theory & Design Exam #1

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1. Adapting to -Organizations need the right fit between 7. Dimensions of -Simple, stable environment:
Complexity + internal structure + external environment Environmental uncertainty low
Dynamism -Can add positions + departments, build Uncertainty -Complex stable environment: greater
relationships, differentiation + integration, uncertainty
organic vs. mechanistic, planning, forecasting -Simple, unstable environment: even
+ responsiveness great uncertainty
-Complex, unstable environment:
2. Assessing Goal Approach: identifying an organization's
greatest uncertainty
Organizational output goals + assessing how well the
Effectiveness organization has attained those goals 8. Divisional Structure -Product structure/strategic business
(profitability, market share, growth) units
-divisions organized according to
Resource-Based Approach: organizations products, services, product groups
must be successful in obtaining + managing -good for achieving coordination
valued resources in order to be effective across functional departments
because strategically valuable resources -loses economies of scale
give an organization a competitive edge -lacks technical specialization
(how well they can get resources) -eliminates economies of scale in
functional departments, poor
Internal Process Approach: effectiveness is coordination
measured as internal organization health +
9. Effectiveness The Degree to which an organization
efficiency
achieves its goals
-takes into consideration a range of
Strategic Constituents Approach:
variables at both the organizational +
effectiveness by focusing on the satisfaction
department levels
of key stakeholders
10. Efficiency Amount of resources used to achieve
3. Changing -As environment becomes more complex,
the organization's goals
Environment events become less stable, financial
-working of the organization + amount
resources become less available, level of
of resources used to produce output
uncertainty increases
11. Elements of -Uncertainty: lack of sufficient info
4. Collaborative (Dissimilar, Cooperative)
Uncertainty about environmental factors
Network -Emerging BETTER alternative to resource
-Complexity: $ + dissimilar of external
dependency
elements
-Companies join together to become more
-Dynamism: whether the organization
competitive + to share scarce resources
operates in a stable/unstable
-Alliances require managers who are good at
environment
building networks
-Companies can share risk + cooperation is a 12. Environmental Scan External/Internal
prerequisite for greater innovation, problem CEO, Top Management Team
solving, + performance Strategic Intent
Organizational Design
5. Contingency There is no "one best way", have to
Effectiveness Outcomes
customize management practice to the
-> GAP Analysis
organization
13. Framework for Inter 1) Org Relationship
-Contingency Factors Affecting Organization organizational (competitive/cooperative)
Design: Strategy, environment, technology, Relationships 2) Org Type
size/life cycle, culture (Similar, dissimilar)

6. Contingency Size 14. Functional Structure -Activities grouped by Common

Factors of Organizational Technology function
Organization Environment -specific skills + knowledge are
Design Goals + Strategy consolidated
Culture -promotes economies of scale
(outside-Influences structural dimensions) -slow response to environmental
changes, less innovation
15. Generalist Wide niche/domain, broad range of 22. Influencing -Balance linkages + independence
Strategies for products/services to a broad market Financial -Reach out + change/control elements in
survival Resources environment (establish favorable
relationships w/key elements of the
16. Geographic -Organizing to meet needs of
environment), shape the environment by
Structure users/customers by geography
influencing key sectors
-many multinational corporations are
organized by country 23. Information- Provide both vertical + horizontal info flow
-focuses managers + employees on specific Sharing to accomplish organization's overall goals
geographic regions Perspective on -Traditional organization: (Vertical)
-strengths + weaknesses similar to divisional Structure efficiency, top level decision making
organization -Learning organization: (Horizontal)
communication + collaboration,
17. Goals Types -Mission, Official Goals: Communicate
decentralized authority focused on shared
+ Purposes purpose + value, bestow legitimacy
tasks + decisions
-Operating Goals: 24. Institutionalism (Similar, Cooperative)
provide employee direction + motivation, -Perspective: manage survival, balance
offer decision guidelines, define standards of expectations of environment
performance (leads to official goals) -Environment: norms + values of
stakeholders, adopt structures + processes
18. Horizontal -Horizontal linkage: coordinates activities
to please outsiders
Info Sharing across organizational departments- not
-Legitimacy: org's actions are desirable,
traditionally draw on the organization chart
proper, + appropriate
-Info system, liaison roles (located in one
department but has the responsibility for 25. Institutional -Technical structure: day to day work,
communicating + achieving coordination View + Org technology, op requirements (governed by
w/another), task forces (temp committee), Design norms + rationality of efficiency)
full-time integrator (project manager), teams
-Institutional Structure: visible to the public
19. Horizontal -Organization around core processes (tasks +
(governed by expectations of the public)
Structure activities)
-Shift toward horizontal structure during 26. Integrated Competitive values model: balance
reengineering Effectiveness concern w/various parts of the organization
-Eliminates vertical hierarchy + departmental Model
boundaries Human Relations emphasis: incorporates
-created around cross-functional processes, the values of an internal focus + flexible
self-directed teams, are dominant players, structure
people on team are given authority for
decisions Open Systems Emphasis:
-can increase organizations flexibility stability, equilibrium, communication
-culture: openness, trust, + collaboration
Internal Process Emphasis:
20. Hybrid -Combination of various structure
Stability Equilibrium, Communication
structure approaches
-tailored to specific needs
Rational Goal Emphasis: productivity,
-used in rapidly changing environments
Efficiency, profit, goal setting
-greater flexibility
27. Inter Resource transactions, flows, + linkages that
21. Importance -Means to an end
organizational occur among 2 org
of -Produce goods + services efficiently
Relationships
Organizations -Facilitates innovation
-Adapt to + influence a changing 28. Levels of External level: community
environment Analysis in Organization level: organization
-Create value for owners, customers, + Organizations Group level: Different Departments
employees Individual Level: people
-Accomodate ongoing challenges of
diversity, ethics + motivation + coordination
of employees
29. Matrix -Multifocused w/strong horizontal linkage
Structure -Conditions: share resources across the
organization, 2 + critical outputs required
(products + technical knowledge),
environment is complex + uncertain
-Allows organization to meet dual demands
-Largest weakness is that employees have 2
bosses + conflicting demands
30. Mechanistic Mechanistic
vs. Organic -Characterized by machine-like standard
rules + procedures w/clear authority
-Centralized structure, specialized tasks,
struck hierarchy of authority, vertical
communication, many rules, formalized
-Typical Contingency factors: large size,
efficiency strategy, stable environment, rigid
culture, manufacturing technology
Organic
-Design of organization is looser, free-
flowing, + adaptive
-Decentralized structure, empowered roles,
collaborative teamwork, horizontal
communication, few rules, informal
-Typical contingency factors: small size,
innovation strategy, changing environment,
adaptive culture, service technology
BOTH depend on: structure, tasks/roles,
system formality, communication, hierarchy
vs. Collaboration
31. Miles + Snow's Formulate strategy that matches the
Strategy demands of the external environment
Typology -Prospector: fluid, creativity, risk-taker,
innovative, decentralized
-Defender: efficiency, centralized authority +
tight cost control
-Analyzer: balances efficiency + learning,
tight cost control w/flexibility + adaptability,
creative, research, risk-taking
-Reactor: no clear organizational approach,
reacts to market place (bad)
32. Organizational System formed by the interaction of a
ecosystem community of organizations + their
environment
33. Organizational Strategic Intent: Organization's energies +
Purpose resources are directed toward a focused,
unifying, + Compelling goal
-Mission, Competitive Advantage, Core
Competence
-Operating goals: overall performance,
market goals, resource goals, employee
development, productivity, innovation +
change goals
34. Organizational Contains:
Structure -Formal reporting Relationships (# of levels
in hierarchy, span of control)
-Grouping of individuals (creation of
departments)
-Design of Systems (communication,
coordination, + integration of efforts)
35. Organization Social entities that are goal-directed
Definition -Designed as deliberately structured +
coordinated activity systems
-Linked to the external Environment
-OPEN SYSTEM (inputs: raw materials,
people info->transformation process-
>Outputs: Products + services)
36. Organization -Required Work Activities: as organizations
Design grow more, more functions will need to be
Alternatives performed
-Reporting Relationships: Chain of
Command
- Departmental Grouping Options:
1) Functional Grouping: places together
employees who perform similar knowledge
+ skills (all marketing together)
2) Divisional Grouping: organized according
to what the organization produces (product
division 1)
2) Multi-focused grouping: embraces 2 +
structural grouping alternatives (product
division 1 + marketing)
3) Horizontal grouping: grouped around
core work processes ( HR, Finance, with
Core Process 1 across)
4) Virtual Network Grouping: loosely
connected cluster of separate components
37. Organization All the elements that exist outside the
Environment boundary of the organization
-Domain: chosen environmental field of
action
-Sectors: (Subdivisions) contain simliar
elements
38. Population (Similar, Competitive) 45. Strategy Plan for interacting w/the competitive
Ecology -Org diversity + adaptation within a environment
population of organizations -Models exist to aid in formulating strategy:
-Population is a set of org engaged in similar Porter's 5 Forces, Miles + Snow's Strategy
activities Typology
-Theory notes that large, established org's -Strategy impacts internal organization
often become dinosaurs (difficulty adapting, characteristics, managers must design the
changing environment determines organization to support the firm's
survival/failure) competitive strategy
-Heavy investments can limit org adaptation
46. Structural Formalization
-Model looks at org form
Dimensions of Specialization
-Org nice can help aid in survival of an org
Organization Hierarchy of Authority
-VARIATION->SELECTION->RETENTION
Design Complexity
39. Porter's Differentiation strategy: distinguish Centralization
Competitive products/services from others in the industry
47. Symptoms of -Decision making is delayed/lacking quality
Strategies (creates hook)
Structural -Organization cannot meet changing needs
Deficiency -Employee performance declines, needs are
Low-Cost Leadership: increase market share
not met
by keeping costs low compared to
-too much conflict
competitors (efficiency)
48. Task Sectors that the organization interacts
can choose to focus broad/narrow in Environment w/directly to achieve goals
reaching multiple markets -ex: industry, raw materials, market, human
resources sectors
40. Relational -High level of horizontal coordination
Coordination -Frequent, timely, problem-solving 49. Vertical Info -Vertical linkages: coordinate activities
communication Sharing between the top + bottom of organization
-Relationships of shared goals, shared -Hierarchical referral: vertical lines which
knowledge + mutual respect identify the chain of command
-Rules + plans: create vertical Links
41. Resource (Dissimilar, Competitive)
-Vertical info systems: reports, computer
Dependence -Org's minimize their dependence on other
systems, written info
orgs for the supply of resources
-org's succeed by striving for autonomy 50. Virtual -Extend horizontal coordination beyond
-org's alter independent relationships through Networks + boundaries of organization
ownership, contracts, + joint ventures Outsourcing -Most common strategy: outsourcing
-Central hub
42. Resource- Organizations depend on the environment
-managers don't have hands on control
Dependence -Strive to acquire control over resources to
over activities/employees
Perspective minimize dependence
-org's are vulnerable if resources are
controlled by other org's
-Minimize vulnerabilities
-Will team up w/others when resources are
scarce
43. Specialist Narrow range of goods/services that serve a
Strategies narrow market
for survival
44. Stakeholder Balancing the needs of groups in + outside of
Approach the organization that has a stake in the
organization's performance