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Stages of the Organization life cycle
entrepreneurial stage, collective stage, formalization stage, elaboration stage
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Entrepreneurial stage
growth through creativity - entrepreneurs develop the skills and abilities to create and introduce new products for new market niches
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Organizational goal
survival
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Design implication
informal, non-bureaucratic structure
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Crisis of...
leadership. lack of organizational skills to develop the right strategy and structure
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Collective stage
growth through direction - a beginning of devision of labor, development of clear goals and direction, establishment of department and hierarchy of authority
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Organizational goal
growth
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Design implication
pre-bureaucratic structure
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Crisis of...
autonomy (delegation with control). search for mechanisms to control and coordinate departments without direct supervision from the top
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Formalization stage
growth through coordination - separation of strategic and operational responsibilities; installation and use of rules, formal procedures, and control systems, addition of specialists
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Organizational goal
internal stability and market expansion
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Design implication
bureaucratic structure
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Crisis of...
red tape. organizational effectiveness suffers from overly bureaucratic control
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Elaboration stage
growth through collaboration - development of team work across departments or divisions; increased use of social control and interpersonal linkages
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Organizational goal
brand recognition and strong organizational identity
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Design implication
enabling bureaucratic structure
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Crisis of...
revitalization. need for actively realign itself with the environment and streamline operation for innovation
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3 forms of control
bureaucracy, market, clan
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Bureaucracy
Max weber's dimensions of bureaucracy - rules and procedures, specialization and division of labor, hierarchy or authority, technically qualified personnel, separate position from position holder, and written communications and records
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Market
prices, competition, exchange relationship
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Clan
tradition, shared values and beliefs, trust
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Reasons for organizational decline
organizational atrophy, vulnerability, environmental decline
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Organizational atrophy
entrenched in old ways of doing business
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Vulnerability
lack of resources or clear vision
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Environmental decline
unfavorable changes in the external environment
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Explain 4 types of organizational culture
adaptability culture, mission culture, clan culture, bureaucratic culture
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Organization change
refers to adoption of a new idea or behavior by an organization
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Evolutionary change
change that is gradual, incremental, and narrowly focused
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Revolutionary change
change that is sudden, drastic, and broadly focused
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Barriers to change
excessive focus on costs associated with change, failure to perceive benefits of change, lack of coordination and cooperation within an organization, uncertainty avoidance mentality, fear of loss of power and status
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Calm Waters metaphor
a description of organizations as a large ship making a predictable trip
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Kurt Lewin's change process model
- -two sets of opposing forces within an organization determine how change will take place: forces for change and forces making organizations resistant to change,
- -when forces for and against change are equal, the organization is in a state of intertia,
- -to change an organization, managers must increase forces for change and/or decrease forces resisting change
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Organizational design for facillitating change in "white-water rapids"
- managers must quickly and properly react to unexpected events. -be alert to problems and opportunities,
- -become change agents in stimulating learning and implementing change in the organization
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Change in white water rapids continued
move sfrom a mechanical system design with a stable environment and eficient performance to a natural system design with turbulent environment and learning organization
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Key tactics for managing change collaboratively
- -build a climate of psychological safety,
- -create a clear infrastructure that facilitates learning,
- -change organization culture through altering employees' mind-set and behavior,
- -generate capacity for mobilizing resources
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Concept of psychological safety
- -create a climate of trust and mutual respect,
- -establish multiple channels of communication to encourage people to speak up,
- -acknowledge leaders' own fallibility,
- -celebrate instances of courageous behaviors,
- -be very clear about what constitutes punishable misconduct
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Ambidextrous approach
look at powerpoint chapter 10 & 11 slide 13
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Sources of culture
property rights system, organizational structure, organizational ethics, characteristics of people within the organization
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Characteristics of people
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Lessons from great depression
look at powerpoint chapter 10 & 11 slide 17
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Key insights on organizational change
- -the ability of an organization to align, execute and renew itself Faster than its competitors can lead to ultimate competitive advantage.
- -recipe for excellence in a particular organization is specific to its history, external environment, and aspirations, as well as the passions and capabilities of its people
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Key elements of decision making process
- organizational decision making
- - process of identifying and solving problems
- 1.problem identification
- 2.problem solution
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Programmed decisions
repetitive and well defined
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Non-programmed decisions
novel and poorly defined
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Certain problem solution & identification
management science approach
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Uncertain problem solution & Certain problem identification
incremental decision model
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Certain problem solution & Uncertain problem identification
carnegie model
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Uncertain problem solution & identification
combination of carnegie and incremental decision model = garbage can model
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Management science approach
- -decisions based on quantitative data analysis,
- -suitable for assessing problems that are identifiable and measurable (scheduling and pricing),
- -lacks rich explanation and prediction for a given phenomenon,
- -uses for supplementary purposes
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Carnegie model
- decision based on coalition building process.
- -develop consensus on goals and problem priorities,
- -build broad support for implementing solutions
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Satisficing
limited information searches to identify problems and alternative solutiosn
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Bounded rationality
a limited capacity to process information
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Satisfice
due to bounded rationality
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Incremental decision model
- decisions based on structured sequence of activities undertaken from discovery to solution,
- large decisions are a collection of small choices;
- -identification phase,
- -development phase,
- -selection phase,
- -dynamic factors (decision interrupts)
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Garbage can model
- -decisions based on multiple independent stream of events within an organization,
- -solutions sometimes find a problem by chance, a pattern of randomness -- they just connect haphazardly
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Dimensions of organized anarchy
problematic preferences, opaque organizational processes, fluid participation
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Opaque organizational processes
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3 types of cognitive biases
escalating commitment, prospect theory, groupthink
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Escalating commitment
continue to invest time and resources into a solution despite strong evidence suggesting it is not working
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Prospect theory
tendency to overweight potential losses and underweight the potential gains
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Groupthink
tendency to suppress contrary opinions to maintain group harmony
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Overcome Cognitive biases
- -utilize evidence-based management,
- -encourage dissenting voices,
- -ensure diverse backgrounds,
- -trust gut instincts, but only when four tests are met: ~familiarity test,
- ~feedback test,
- ~measured-emotions test,
- ~independence test
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Adaptability culture
- -characterized by strategic focus on the external environment through flexibility and change to meet customer needs,
- -culture encourages entrepreneurial values, norms and beliefs that support the capacity of the organization to detect, interpret and translate signals form the environment into behavior responses,
- -this type of company doesnt just react quickly to environmental changes it actively creates change. innovation,creativity,and risk taking are valued and rewarded ex:Google
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Mission culture
- -organization concerned with serving specific customers in the external environment but without the need for rapid change,
- -characterized by emphasis on a clear vision of the organization's purpose and on the achievement of goals, such as sales growth, profitability, or market share to help achieve the purpose,
- -individual employees may be responsible for a specified level of performance and the organization promises rewards, bonuses or promotions in return. ex:Inbev
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Clan culture
- -primary focus on the involvement and participation of the organization's members and on rapidly changing expectations from th external environment,
- -focuses on meeting the needs of employees as the route to high performance,
- -involvement and participation create a sense of responsibility and ownership and hence greater commitment to the organization
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Bureaucratic culture
- -internal focus and a consistency orientation for a stable environment,
- -supports a methodical approach to doing business,
- -symbols, heroes, and ceremonies reinforce the values of cooperation, tradition and following established policies and practices as a way to achieve goals,
- -personal involvement is lowered, but outweiged by a high level of consistency, conformity and collaboration succeds by beign higly integrated and efficient. ex:pacific edge software
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Sources of intergroup conflict
- -goal incompatibility among departments,
- -differentiation in norms and values,
- -nature of task interdependence,
- -compete for limited resources
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Relationship between conflict and performance
look at powerpoint chapter 12 & 13 slide 14
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Tactics for enhancing collaboration
- -emphasize shared mission and super-ordinate goals,
- -create integration devices such as joint problem solving teams,
- -use confrontation and negotiation to achieve win-win situation,
- -use intergroup consultation techniques,
- -practice member rotation
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