304 Final

This defines how job tasks are formally divided, grouped and coordinated.

• 1. Work Specialization
• 2. Chain of Command
• 3. Span of Control
• 4. Centralization/ Decentralization
• 5. Formalization
• 6. Departmentation

• Also referred to as division of labor.
• It describes the degree to which activities in the organization are subdivided into separate jobs. Specific tasks are identified and individuals are assigned to work on that task.

• Pros:
• Employee skill through performing a task successfully increases through repetition
• Increase productivity and efficiency
• Gain economy of scale
• Easier and less costly to find workers to do specific and repetitive tasks
• Cons:
• At a certain point, productivity falls and satisfaction decreases

• A clear connection of authority and responsibility in an organization that defines who reports to whom.
• However, there is need for more flexibility, innovation, and fast response

Refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed

A concept which states that a person should have one and only on superior to whom they are directly responsible

• This determines the number of levels and managers an organization has.
• The narrower (3-4) the span, the taller the hierarchy (more level of management).
• The wider (7-10) the span, the flatter the hierarchy
• Managers had to be there to maintain order

• Technology
• Standardized tasks
• Decentralization
• Proper training

The degree to which decision making is concentrated at a single point in the organization

Top management makes their decisions with little or no input from lower-level personnel. At this level, organizations are less flexible and responsive.

Lower-level personnel provide input and/or are given the discretion to make decisions. At this level, action can be taken more quickly to solve problems, and employees are less likely to feel alienated from upper management.

• The degree to which the jobs within an organization are standardized, and to what degree rules and policies are applied.
• Increases efficiency

The employee has a minimum amount of discretion over what is to be done, when it is to be done, and how they should do it. Inputs are handled exactly the same way, resulting in consistent and uniform output. There are lots of rules and clearly defined policies.

Employees are granted a great deal of freedom to exercise discretion in their work. Standardization and the amount of rules are minimal.

The basis by which jobs within an organization are grouped. Once jobs have been divided through Work Specialization, they need to be grouped so that common tasks can be coordinated.

• Functional departmentation
• Product departmentation
• Geographic departmentation
• Process departmentation
• Customer departmentation

Grouping specialists based on the functions they perform. Seeks to achieve economies of scale by placing people with common skills and orientations into common units

• Product = Self-contained unit.
• Grouping jobs based on different products made by the organization. This allows for increased accountability for product performance, since all activities are under the direction of a single manager.
• Resolve conflict, but costly due to duplicate functions

• Grouping jobs based on geographical region or territory. Cultural differences, shipping needs, currency, and trade involve issues may be best handled through this type of departmentalization.
• 

• The focus is on the needs of the customers
• Customers' problems and needs vary, and thus specialists must be in place to provide these different customers with various levels of attention and knowledge.
• 

• 1. Simple Structure
• 2. Bureaucracy
• 3. Matrix
• 4. Virtual
• 5. Boundaryless / Horizontal

• Structure that lacks structure
• Authority is centralized at the owner
• Work specialization: none
• Deparmentation: low degree of functional departmentation
• Chain of command: clear
• Span of control: wide with only two or three levels
• Centralized: at a single person
• Formalization: little to none

• Pros:
• The strength of this structure lies in its simplicity (easy, straightforward)
• It is fast, flexible and inexpensive to maintain, and accountability is clear
• Cons:
• Highly inefficient
• Depends on owner
• Efficiency decreases as the firm grows

• Work specialization: high tasks are standardized and this is the key element for this type of Organizational Design
• Departmentation: tasks are grouped into functional departments
• Chain of command: decision making follows the chain of command
• Span of control: narrow
• Centralized: high, decisions are made at the top. Made possible by standardized operations and high formalization
• Formalization: high. rules set in place to deal with conflicts that arise with growth. Policies are drawn up to deal with politics and to fine the job or task

• Pros:
• Efficiency
• Low labor costs
• Take costs down and sell more
• Employees are matched to a task and paid accordingly
• Cons:
• Organization is bounded by rules, policies and procedures
• Coordination problems - functional unit goals can override the overall goals of the organization
• Specialization can create subunit conflict
• No room for modification for problems that not precisely fit the rules

• Combine two structures (functional & product)
• Two bosses
• Work specialization: low
• Deparmentation: combines functional and product
• Chain of command: breaks the unity of command concept. Dual Chain of Command (one has more power)
• Span of control: wide
• Decentralized: efficiency allocation
• Formalization: low - result of direct and frequent contract between different specialties
• One side must have more power
• Must negotiate and collaborate to make it work
• Marshall school of business

• Pros:
• Coordination across multiple products and departments
• Efficient allocation of specialists and professionals
• Economies of scale
• Cons:
• Broken unit of command (conflict - who to listen)
• Stress
• Leadership skill
• Confusion and power struggles

• Small controlled core
• You choose the thing you do best and outsource everything else
• Work specialization: little to none
• Departmentation: little to none
• Chain of command: little to none
• Span of control: Control is lost as work is outsourced.
• Centralized: highly
• Formalization: little to none

• Pros:
• Gain scale without mass (other business functions that are cheaper and better)
• Flexible and adaptive
• Quickly access new market
• Avoid too much responsibility
• Cons:
• Loss of control
• Difficult to form and manage
• Require trust 
• Cannot contract for everything

• Organize around core processes
• Use multi-disciplinary teams to manage processes
• Only one or two levels of management
• Owner for each process
• Communication via networked computers
• Work specialization: none
• Departmentation: multidisciplinary teams are empowered and replace functions and departments
• Chain of command: none
• Span of control: limitless
• Decentralized: highly
• Formalization: little to none

• Pros:
• Highly flexible & business focused
• Reduce control & coordination costs
• More flexible and innovative
• Communication, organizational processes and feedback are improved
• Much more responsive
• Cons:
• Difficult to implement
• Require new skills and methods
• New information technology
• People must posses certain skills to communicate effectively, while knowledge and proper training is a must

• High Formalization
• High Centralization
• High Specialization
• Rigid Deparmentalization
• Clear Chain of Command
• Narrow Span of Control
• = Bereaucracy

• Low Formalization
• High Decentralization
• Cross-functional teams & cross hierarchical teams
• Free flow of information
• Wide span of control
• = Simple, Matrix, Virtual, Boundaryless/Horizontal

• Strategy
• Size
• Technology
• Environment

An organization structure is a means to help management achieve its objective. As a result, an organization must have a strategy before they can choose the structure that will complement best.

• Innovation
• Minimize Cost
• Imitation

The Organic Model works best with this type of strategy. This emphasizes the introduction of major new products and services

The Mechanistic Model works best with this type of strategy. This emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting

The Organic Model works best. This seeks to move into new products or new markets only after their viability has already been proven

• Can have a considerable effect on its structure
• As an organization grows, it becomes more Mechanistic

• Deals with how an organization transfers its inputs into outputs. The degree of task routines provides insight into the organizations structure.
• If tasks in the org are routine, then that organization is Mechanistic
• Routine tasks are standardized and are associated with departmentalized structures
• Routine tasks are strongly associated to formalization

• Refers to institutions or forces outside of the organization that potentially affect the organization's performance.
• The degree of uncertainty provides insight into the organization structure
• A low level of uncertainty in the org environment symbolizes a Mechanistic structure

The system of shared meaning held by members that distinguishes organization from others

• 1. Values: what is important
• 2. Beliefs: How things work
• 3. Norms: How members should behave

Expresses the core values that are shared by a majority of the organizations members. This is the macro view of culture that gives an organization its distinct personality.

These are mini cultures that develop within large organizations, and they reflect common problems, situations, or expressions that members face

• A culture in which core values are intensely held and widely shared.
• The more members who accept these core values, the stronger their commitment is to those values, and this results in a strong organizational culture.

• 1. Innovation and Risk Taking
• 2. Attention to Detail
• 3. Outcome Orientation
• 4. People Orientation
• 5. Team Orientation
• 6. Aggressiveness
• 7. Stability

The degree to which employees are encouraged to be innovative and take risks

The degree to which employees are expected to exhibit precision, analysis and attention to detail

The degree to which management focuses on results or outcomes rather than on techniques used to achieve those outcomes

The degree to which management decisions take into consideration the effect of outcomes on people within the organization

The degree to which work activities are organized around teams rather than individuals

The degree to which people are aggressive and competitive rather than easygoing

• 1. Encourages efficient communication, coordination & control
• 2. Can be a substitute for formalization (strong culture = everyone knows what is right and what they should do)
• 3. Provides a commitment to the organization
• 4. Will be successful when their culture fits overall strategy and competitive environment

• When the shared values are not in agreement with those that will further the organization's effective, culture becomes a liability
• 1. Barrier to change
• 2. Barrier to diversity
• 3. Barrier to acquisitions & mergers

When the organization's environment is dynamic and it is undergoing rapid change, its culture may no longer be appropriate. Consistency in behavior is an asset when the environment is stable, but if the environment changes, it may be difficult to respond.

Hiring new employees that are not like the majority of the organization makes it difficult for some to accept the core cultural values.

Whether or not a Merger or Acquisition is successful may depend on how well the two organization's cultures match up

They have a major impact on the organizations early culture. They have a vision of what the organization should be. Strongly the hiring criteria.

The goal is to identify and hire individuals who have the knowledge, skills, and abilities to perform the jobs within the organization successfully. Must insure a proper match with the organization.

Through what they say and how they behave, top management establishes norms that filter down through the organization

This is the process that adapts employees to the organizations culture. The most critical stage of socialization is at the time of entry.

• 1. Stories
• 2. Rituals
• 3. Material symbols
• 4. Language

They provide explanations and legitimacy for current organizational practices

These are repetitive sequences of activities that express and reinforce the key values of the organization

These symbols, such as attire and office size/layout, convey to employee who is important, the degree of egalitarian desired by top management, and the kinds of behavior that are appropriate

Language is used as a way to identify members of culture or subculture. By learning this language, members attest to their acceptance of the culture, and, in doing so, help to preserve it.

How firm uses its resources to gain competitive advantage

How firm uses human resources to implement corporate strategy

Policies and practices used to implement human resource strategy

• 1. Selection - selecting the right people
• 2. Training & Development
• 3. Accessing Performance
• 4. Reward
• 5. Union Management Relations

The process begins with selecting the right people and builds from there. Most of the Human Resource contact occurs when applying and/or interview for the job. Identifies competent candidates and accurately matches them to the job and organization

Improves the skills necessary to complete the job. An increase in ability improves the potential to work at a higher level. Also works to increase the employees self-efficacy

Performance evaluations are done using an individual's contribution as a basis for making reward allocation decisions.

Based on the performance evaluation, an individual is rewarded

It has become increasingly flexible and provides more information

Change from Managers to applicant, co-workers & manager.

Change from Validated Tests to Open Exchange of Information & Realistic Job Previews

Change from Specific Jobs to Teams & Corporate Cultures

Change from Ability to Do Job to Ability to Learn; needs for involvement & challenge; team skills

• From: Enable people to perform task
• To: Facilitate change; human development; effective task performance

• From: Individuals
• To: Individuals & teams

• From: Specific job requirement
• To: Broad skills; social skills; system-wide learning

• From: As needed
• To: Ongoing & intense

• From: On-the-job & classroom
• To: Many methods; cross-training; team development

• From: Manager
• To: Appriasee, co-workers, manager & others

• From: Recipient of feedback
• To: Active participant in all phases

• From: Job defined
• To: Participant defined

• From: Validated measures
• To: Negotiation of reality

• From: Periodic
• To: Variable depending on purposes

• From: Secret (decreased moral, performance and motivation) Expectancy and Equity Theory
• To: Open

• From: Top Down
• To: Wide Involvement

• From: Individual Merit
• To: Business Sucess

• From: Standardized
• To: Individual choice; Cafeteria style, where employees are allow to pick and chose their rewards

• From: Job based
• To: Skill based; by learning new tasks, an individual can have a higher pay. This allows for flexibility and encourages employees to learn new skills

• From: Job security & wages
• To: Job security, wages & quality of work life

• From: Adversarial
• To: Collaborative

• From: Collective bargaining
• To: Collective bargaining & cooperative alliances

• From: Asymmetric
• To: Symmetric

• From: Strikes, slowdowns, & grievances
• To: Mediation, arbitration & compromise

• Changing environments is requiring many organizations to adapt. Change deals with instability and the influences that drive change are:
• 1. Workforce
• 2. Technology
• 3. Competition
• 4. Social Trends
• 5. Political Trends

• Diversity existing in the workforce such as culture, background, and training
• Baby-boomers are 'grey'
• Single parents

Technology is always advancing, and as a result, changing jobs and organizations

Competition is global and the organization must change to stay current with competitors

People use cell phones, telecommuting

• Political shocks
• Russia falling apart

• 1. Incremental Change & Revolutionary Change
• 2. Reactive Change and Anticipatory Change

Small change

The company must make large changes and the entire company has to be able to adapt

Change occurs as a reaction to events that are forced on the organization

Change occurs in anticipation of events that may occur

• Most companies change in this manner
• Little change to status quo
• Change is periodic
• Problem solving- solve it and come back to normal
• Reactive & Incremental

• Almost too late to change
• Rapidly changing environment
• Reactive & Revolutionary change

• Firms that continuously make small incremental changes to status quo to improve it (Japanese)
• Anticipatory & Incremental change

• Was attempted by Jack Welch at GE
• We have to do more in the future
• Anticipatory and Revolutionary change

• 1. Habit
• 2. Security
• 3. Economic Factors
• 4. Fear of Unknown
• 5. Selective Information Processing

• Individuals develop consistent behaviors that they are not able to easily change.
• We don't have to think about them, they are automatic
• Developed through our recurring behavior
• Hard to change

• Deals with the stability in the organization
• Needs for security
• Most of us prefer a known presence, even if it is not the best because some unknown condition may be worse

Many people worry about lower incomes

Not knowing what will happen in the future may lead to resistance

Individuals may interpret different situations differently and they react accordingly

• 1. Structural Inertia
• 2. Limited Focus of Change
• 3. Group Inertia
• 4. Threats to Expertise, Power Relationships & Resource Allocations

This is typical in bureaucracies. The organization is slow to make changes when they are unaware of what is going on.

How much change will the organization choose to take on? Will they take small steps?

Groups and teams are slow to adapt to change

When organizations go through large scale changes, the dynamics of the organization have to go through changes as well. Issues of expertise, power relationship, and resource allocation arise as a result

• Positive Outcomes
• 1. Education & Communication
• 2. Participation
• 3. Facilitation & Support
• Negative Outcomes
• 4. Negotiation
• 5. Manipulation & Cooptation
• 6. Coercion

• Knowledge of change is needed before people are going change
• Help people understand new roles and responsibilities

• People are involved in decision making
• People are likely to be committed to be involved in implementing the decision they made
• Downside: companies might not have time, knowledge, skills and information to be participative and train people

• Get people training and counsel them in terms of overcoming some of the stress of change
• A range of supportive effort reduces resistance

• Involves compromising with individuals and exchanging something of value
• Trade-offs exist
• With certain power and stake over

• Manipulation: refers to convert influence attempts such as twisting or distorting facts to make them more attractive
• Cooptation: a form of manipulation and participation, seeking to buy off the leaders of a resistance by giving them a key role in the change decision

• Involves the application of direct threats or force on those that resist change
• Punishment

• To loosen up in order for change to occur.
• The proper combination of Restraining Forces and Driving Forces must be considered.
• Increase Restraining; Decrease Driving
• Decrease Restraining; Increase Driving
• A Combination of both

Forces that are resisting and/or preventing change

Forces that are driving change

Where the organization makes the change

• Once the change has been implemented, it must be refrozen so that it can be sustained over time
• The objective: to stabilize the new situation by once again balancing the Driving and Restraining Forces

Deals with Adaptation - change that is Incremental and Reactive

• Approach to apply all the knowledge learned from this course
• The more firm has the internal capacity to solve its own problems- to change and improve itself- the more developed it is

• 1. Improve organization effectiveness
• 2. Improve organization's capacity to solve own problems and change itself

• 1. Respect for people
• 2. Trust and Support
• 3. The sharing of power and participation
• 4. Openness of information

• 1. Human Process Intervention
• 2. Technostructural Intervention
• 3. Human Resource Management Interventions
• 4. Strategic Interventions

• How people communicate, how they get along, how they make decisions
• Team building: making them more effective, team-based organizations
• Conflict resolution: new methods to resolve conflicts at different levels: people, teams, organizations; clean up these human processes as they were a mess

• To design work to make it more motivating and effective, to get people more involved and more communicated
• Matrix organization and others are developed
• Job enrichment & self-managing teams
• Employee empowerment
• Organization design

• Ways to get more performance through reward system
• Gainsharing & skill-based pay
• Career development

• Occur at the executive level
• The newest ones
• Organization transformation
• Strategic alliances - how them help compete globally

• 1. Differences in Organization Culture: Cultural values - what values, norms and beliefs are inherent in the organization culture
• 2. Differences in National Culture: Is there individualism or collectivism? Is there a high power distance or low power distance?
• 3. Politics of Change: What type of resistance is expected?
• 4. Ethics of Control: Coincides with values, such as respect for people, power sharing and trust & support

• Action Research: helping the organization learn to improve itself. Generate new knowledge that can be applied to other organizations
• Research Scientists and Faculty Members
• Work on Projects

• Strategic change
• Designing high-performing organization
• Team-based organizations
• New reward and selection practices
• Organization learning

• Management initiated & controlled
• Problem focused
• Experts analyze and design solutions
• Doers implement solutions
• Rolled out as packaged change program
• Change is discrete event

• Conflict between experts & doers
• Lack of employee buy-in
• Too rigid, not adaptive
• Limited learning
• May solve specific problems, but doesn't improve organization's capacity to improve itself

• Felt need: This initiating situation opens the possibility for change. Done by leaders but opens up to include others
• Vision: Once need is felt, it will lead to an idea to resolve it
• Action Learning Process: Follow vision. This entire process is on going

• Involves Multiple Stakeholders: not easy since there is more than one individual involved
• Innovation on Site: People within the organization are involved in the change
• Learning by doing
• Continuous Change, Improvement, and Learning: Change is ongoing and doesn't stop. This is different from Lewin's Three-Step Model, where change ceases after it is refrozen
• Part of normal operations: always striving to be more productive, effective and efficient

• Taking Action to Implement Change: collect information - Action Research Stage
• Collecting Pertinent Information: In regards to rewards, system productivity and motivation
• Diagnosing Progress
• Planning to Modify Change and How it is Implemented
• This cycle is ongoing and party of normal operations. Employee involvement will increase the changes of the change being successful

• Change will become the norm rather than stability
• This ongoing change towards organizational objectives must be built into the behaviors of the company, including managers and employees
• This participative process (includes employees) will strive to continually improve performance over time. The top-down approach to change will be detrimental as there is minimal involvement

• Structure
• Information & Control Systems
• Human Resource Systems
• Technology & Work Design Systems
• 

• Ideal Organizational
• Organizaitonal Structure: flat & lean
• Work Design: Self-managed teams. Make their own decisions
• Information Systems: Open & distributed. They must be available and shared (transparency)
• Leadership: Visionary. Must be able to see things in a new way and must also be able to move forward on those ideas
• Decision Making: Employee Involvement. Allowing them to be involved in the decision making
• Training & Development: Continuous
• Selection Processes: Culture driven and based on fit
• Rewards: Performance & skill
• Culture: Strong & egalitarian (Equal treatment and respect of all members (contrary to hierarchies)
• Workforce Accomodations: The accommodation available for employees must be plentiful

A process that begins when one party believes that another has negatively affected, something that the first cares about.

• 1. Incompatibility of goals
• 2. Differences over interpretations of facts
• 3. Disagreements based on behavioral expectations

• 1. Traditional Views: dominant in 1930's and 1940's, it basically said that conflict is bad and should be avoided
• 2. Human Relations Views: dominant in 1970's and it stated that conflict was a natural occurrence and was inevitable. Conflict should be accepted
• 3. Integrationist Views: Whether conflict is positive depends on the type of conflict and how that conflict is dealt with

• Functional Conflict: supports the goals of the group and improves its performance
• Dysfunctional Conflict: hinders group performance

• Task Conflict: Conflict over content and goals of the work. Low-to-moderate levels of this type are functional
• Relationship Conflict: Conflict based on interpersonal relationships. Almost always dysfunctional 
• Process Conflict: Conflict over how work gets done. Low levels of this type are functional

• Stage 1: Potential opposition or incompatibility
• Stage 2: Cognition and personalization
• Stage 3: Intentions
• Stage 4: Behavior
• Stage 5: Outcomes
• 

• Increased group performance (functional conflict)
• Decreased group performance (dysfunctional conflict)

• Overt Conflict
• Party's behavior
• Other's reaction
• Annihilatory Conflict: Overt efforts to destroy the other party
• No Conflict: minor disagreements or no conflict at all

• Conflict-handling intentions - Assertiveness (own interest) & Cooperativeness (others and yours)
• Competing: High A; Low C
• Collaborating: High A; High C
• Compromising: Low A; High C
• Avoiding: Low A; Low C
• Accommodating: In between

• Perceived Conflict (Cognition)
• Felt Conflict (Personalization)

• The conditions that create opportunities for conflict to arise must be present
• Communication
• Structure
• Personal Variables

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them

• If I win, then you lose. This is motivation.
• There are fixed amount of resources to be divided
• Interests of the parties are opposed
• The relationship of the parties is short term

• If I win, you win. This is the motivation
• There are a variable amount of resources to be divided
• The relationship between the parties is long term

• Preparation and planning
• Definition of ground rules
• Clarification and justification
• Bargaining and problem solving
• Closure and implementation

• BATNA
• The Best Alternative To a Negotiated Agreement
• The lowest acceptable value (outcome) to an individual for a negotiated agreement

• Problem solving
• Superordinate goals
• Expansion of resources
• Avoidance
• Smoothing
• Compromise
• Authoritative command
• Altering the human variable
• Altering the structural variables
• Communication
• Bringing in outsiders
• Restructuring the organization
• Appointing a devil's advocate

• Increased group performance
• Improved quality of decisions
• Stimulation of creativity and innovation
• Encouragement of interest and curiosity
• Provision of a medium for problem-solving
• Creation of an environment for self-evaluation and change

• Development of discontent
• Reduced group effectiveness
• Retarded communication
• Reduced group cohesiveness
• Infighting among group members overcomes group goals