Exam 2 IOE 421

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  1. Session 13: Ethics
    • Ethics:
    • A system of moral principles governing the appropriate conduct of induvial/group
  2. Managerial Ethics:
    Principles that guide the decisions and behaviors of managers with regard to whether they are right/wrong from a moral perspective
  3. Morals:
    Relating to issues of right/wrong and a person’s conduct on what a person’s conscience says is right/wrong rather than the law (integrity, principle)
  4. Is a decision or behavior ethical and socially responsible?
    • Personal Ethics: Beliefs & Values, Moral Development, Ethical Framework
    • Organizational Culture: Rituals, Ceremonies, Stories, Heroes, Language, Symbols, History
    • Organizational Systems: Structure, Policies, Code of Ethics, Reward System, Training
    • External Stakeholders: Government Regulations, Customers, Special Interest Groups
  5. Violation of Ethics:
    • Towards Customers: False/deceptive sales practices, misleading invoices, fabricating product quality data
    • Toward Employees: Discriminating against employees, hostile environment, violating health and safety rules
    • Toward Suppliers: Accepting favors/kickbacks, violating contract terms, paying without accurate records or invoices
  6. Generalized Ethics Approaches (6):
    Virtue, Moral-Rights, Utilitarian, Personal Liberty, Justice, Pragmatic
  7. Virtue:
    Managers can develop not only their ability to do the right thing but their motivation to do the right rather than the wrong. If a manager develops good character traits (generosity, patience, courage, compassion) and overcomes the bad ones (anger, greed), he/she will make ethical decisions naturally as a result of being a virtuous person.
  8. Utilitarian:
    Moral behavior produces the greatest good for the greatest number. The decision maker will consider the effects on a decision on all parties and choose the one that benefits the greatest number of people
  9. Moral-Rights:
    Asserts human beings have fundamental rights that cannot be taken away by another individual’s decision, these include: Right to privacy, Right of free consent, Right of free speech.
  10. Justice:
    Moral standards are based upon the primacy of a single value: justice. Moral decisions must be based on equity, fairness and impartiality. Three types of justice concerns for managers: Distributive Justice, Procedural Justice and Compensatory Justice
  11. Distributive Justice:
    Treatment and compensation of people should not be based on arbitrary characteristics.
  12. Procedural Justice:
    Rules must be administered fairly, clearly stated, consistent and impartial.
  13. Compensatory Justice:
    The party responsible should compensate individuals for the cost of their injuries. Individuals should not be responsible over matters they cannot control.
  14. Personal Liberty:
    Actions are moral when they promote the individual’s best long-term interest. Since individualism is easily interpreted to support immediate self-gain, it is not populat in the highly organized and group-oriented society of today.
  15. Pragmatic:
    Action does not require debate of whether right or wrong, takes into account the larger society and all stakeholders. Can be explained and accepted comfortably to friend and family
  16. Classifying Ethics Model:
    4x4 (x,y); (moral principle, situational) Personal Liberty, (moral principle, unchanging) Virtue/Universal, (utility of outcome, situational) Utilitarian, (utility of outcome, unchanging) Justice.
  17. Large Multinational Corporation:
    Example of utilitarian Ethics.
  18. Service Technology:
    • Airlines, hotels, health care, consultants, law firms
    • Intangible output
    • Production and consumption take place at the same time
    • Labor and knowledge intensive
    • Customer interaction generally high
    • Human element very important
    • Quality is perceived and hard to measure
    • Rapid response time is usually necessary
    • Site of facility is extremely important
  19. Manufacturing Technology:
    • (Products) drinks, steel companies, automobile man, mining corps, food processing plants
    • Tangible product
    • Products can be inventoried
    • Capital asset-intensive
    • Little direct customer interactions
    • Human element less important
    • Quality is directly measured
    • Longer response time is acceptable
    • Site of facility moderately important
  20. Product and Service:
    Fast-food outlets, cosmetics, real estate, stockbrokers, retail stores
  21. Sociotechnical Systems Model:
    • Social System (Individual & Team Behaviors): Organization/Team culture, Management Practices, Leadership Style, Degree of Communication & Openness, Individual Needs & Desires
    • Design for Joint Optimization: Work roles, task, workflow, Goals & Values, Skills and abilities
    • Technical System (Type of Production Technology): Interdependence (Pooled, Sequential, Reciprocal), Physical work setting, Complexity of production process (Variety & Analyzability), Nature of Raw Materials, Time Pressure
  22. Interorganizational Relationships:
    enduring resource transactions, flows and linkages that occur among two or more organizations
  23. Organizational Ecosystem:
    system formed by the interaction of a community of organizations and their environment (can cut across traditional industry lines)
  24. Why Interorganizational Relationships:
    • Method of controlling the environment and yields potential benefits.
    • Types of linkages: Ownership, Strategic Alliances, Competitors, Executive Recruitment, Industry Sector Leadership, Political Activity & Regulation Trade Associations
  25. Basic Interorganizational Framework:
    • 4x4 organizational type vs organizational relationship
    • (Dissimilar, Cooperative) Collaborative Network
    • (Dissimilar, Competitive) Resource Dependence
    • (Similar, Cooperative) Institutionalism
    • (Similar, Competitive) Population Ecology
  26. Resource Dependence (Focus, Resource Strategies, Power Strategies):
    • Focus: Organizations minimize their dependence on other organizations for supply of important resources, try to influence environment to make resource available
    • Resource Strategies: Adapt/alter interdependent relationships to gain control interlocking directorships. Political action to control environment.
    • Power Strategies: Large independent companies have power over small suppliers
  27. Collaborative Networks:
    Organizations join together to become more competitive and share resources, knowledge, spur innovation, share risks and obtain rewards. Emerging alternative vs resource dependence theory
  28. Traditional Orientation:
    Adversarial suspicion and competition, price, efficiency, own profits, separate resources, short term contracts, contract limiting relationship
  29. New Orientation:
    Partnership, trust, added value to both sides, high commitment, equity, fair dealing, both profit, sharing information, close coordination, involvement in partner’s product design and production, shared resources, long-term contracts, business assistance beyond contract
  30. Population Ecology:
    Organizations focus on diversity and adaptation within a population (set of organizations engaged in similar activities with similar patterns of resource utilization and outcomes). Compete for similar resources and customers.
  31. Population Ecology Process of Ecological Change:
    • Variation: mLarge number of variation appear in the population of organizations
    • Selection: Some organizaitons find a niche and survive
    • Retention: A few organizations grow large and become institutionalized in the environment
  32. Institutionalism:
    Organizations survive and succeed through resemblance between the organization and the expectations from its environment. Organizations need legitimacy from their stakeholders; a right to exist. Organizations adopt structures and processes to please outsiders.
  33. Institutionalism categories:
    Mimetic, coercive, normative
  34. Mimetic:
    • Reasons to become similar: uncertainty
    • Events: innovation, visibility
    • Social Basis: Culturally supported
    • Examples: reengineering, benchmarking
  35. Coercive:
    • Reason to become similar: Dependence
    • Events: Political Law, Rules, Sanctions
    • Social Basis: Legal
    • Examples: Pollution control, school regulations
  36. Normative:
    • Reasons to become similar: Duty and Obligation
    • Events: Professionalism- Certification/accreditation
    • Social Basis: Moral
    • Examples: Accounting standards, training, certification
  37. Intraorganizational Relationships:
    Transactions, flows, and linkages that occur among two or more individuals within a local organization. Defined and acted upn based on local organizational rank! Ranks tend to align with equal (peer) ranks.
  38. Organizational rank = Organizational title:
  39. Rank Comparators:
    Salary, Span of control, organizational budget, operational/tactical/strategic level control of organization
  40. Job Titles of Future: Chief Executive Twitterer, Facebook Fashionista, Manager of deep web research, Chief mapper, Facebook consultant, linkedin liason, outrageous optimization engineer
  41. Work Levels within organizations:
    • Strategic: Big picture, long term goals, macro view, visionary thinking, planning for the future (Range of people and action: 1%)
    • Tactical: Middle ground, medium range (not long and not short term), planning for the next year (Range: 29%)
    • Operational: Day to day details, specific objectives, repetitive, minutiae, daily, very short term like this week (Range: 70%)
  42. Technical System technology:
    Work processes, techniques, machines and actions used to transform organizational inputs into outputs
  43. Woodward’s Manufacturing Classifications:
    • Group 1: Small Batch and unit production, production of single pieces to customer orders, production of technical complex units one by one, fabrication of large equipment in stages, production of pieces in small batches (Low tech complexity)
    • Group 2: Large batch and mass production, production of components in large batches subsequently assembled diversely (medium tech complexity)
    • Group 3: Continuous process production, combines with preparation of product for sale by large-batch or mass production methods, continuous process production of chemicals in batches, continuous flow production of liquids, gases and solid shapes (high tech complexity)
  44. Flexible vs Traditional Manufacturing (Batch size vs product flexibility):
    • As batch size increases and product flexibility decreases (towards standardized)-> continuous process
    • As batch size decreases and product flexibility increases (towards customized)-> small batch
    • When both batch size and flexibility increases -> Flexible manufacturing -> Mass customization
  45. Mass production:
    wide span of control, wide levels of hierarchy, narrow tasks, high specialization, few decision making, routing and competitive
  46. Flexible Manufacturing:
    narrow span of control, few hierarchy levels, adaptive craft-like tasks, low specialization, decentralized decision making, self-regulating and organic
  47. Technology relationship to structural & management characteristics:
    Analyzability vs Variety: Craft, nonroutine, routine, engineering
  48. Craft Department Technologies:
    • (Low Analyzability, Low variety); mostly organic structure, moderate formalization, moderate centralization, work experience, moderate to wide span, horizontal and verbal communication, requires extensive training and experience.
    • Ex: Performing arts
  49. NonRoutine Department Technologies:
    • (High variety, low analyzability) Organic Structure, Low formalization, low centralization, training plus experience, moderate to narrow span, horizontal communications meeting, large effort into analyzing problems
    • Ex: strategic planning, social science research
  50. Engineering Department Technologies: (high variability, high analyzability) Mostly mechanistic structure, moderate formalization, moderate centralization, based on established formulas and techniques,
    Ex: Engineering, tax accounting
  51. Routine Department Technologies:
    • (low variety, high analyzability) Mechanistic structure, high formalization, high centralization, little training or experience, wide span, vertical, written communications, broad applications for standard work,
    • Ex: sales, auditing
  52. Perrow’s Framework of Manufacturing Technolgies:
    • Craft: Unit production
    • NonRoutine: Flexible Manufacturing
    • Routine: Mass Production
    • Engineering: Continuous Process Production
  53. Thompson’s Interdependence classifications:
    • Pooled (bank): low communication, standardization rules, divisional structure, low priority of locating units together
    • Sequential (assembly line): Medium communication, plans, schedules, feedback, task forces, medium priority of locating units together
    • Reciprocal (hospital): high communication, mutual adjustment, cross-departmental, meetings, teamwork, horizontal structure, high priority of locating units close together.
  54. Entrepreneurship:
    process of uncovering and developing an opportunity to create value through innovation, and seizing that opportunity without regard to either resources or the location of the entrepreneur
  55. Organizational Stages of Development:
    Entrepreneurial stage, collectivity stage, formalization stage, elaboration stage
  56. Entrepreneurial stage:
    Creativity, Crisis: Leadership needed
  57. Collectivity stage:
    clear direction provided, crisis: delegation/control needed
  58. Formalization stage:
    internal systems added, crisis: too much red tape (management of resources)
  59. Elaboration stage:
    teamwork developed, crisis: revitalization needed
  60. After effect of organizational stages of development:
    small company thinking, continued maturity, enabling bureaucracies, value stream focus, intrapreneur, decline
  61. Birthplace of organizations:
    end of collectivity stage, all formalization stage, beginning of elaboration stage
  62. Entrepreneur:
    one who risks, time, effort, reputation and his/her invested funds as well as those of associated and stockholders. Takes initiative to combine assets to produce innovative goods.
  63. Startup Entrepreneurial Venture (Nadler-tushman model):
    • Primary goal: survival
    • Competitors: few direct competitors
    • Market: niche, focused
    • Technology Change: often source of business venture
    • Inputs: partners/past associates
    • Outputs: stakeholders, driving force of organization, focused but limited to scope
    • Feedback: critical, immediate, direct contact essential
    • Boundary: vague, slowly defined
    • Technical Systems: highly specialized, focused, limited
    • Formal Org Structure: undeveloped, immature, organic
    • Informal Org: Driven by personality of founder or initial members
    • Human Resources: limited homogenous, flexible
  64. Intrapreneurship:
    entrepreneurship within existing organizations, innovation from within utilizing creativity and innovation.
  65. Dimension of intrapreneurship (4):
    • Proactiveness: Pursue enhanced competitiveness, initiatives, boldness
    • New Business venturing: pursuing/entering new businesses related to the firm’s current products/market.
    • Self-Renewal: strategy reformulation, reorganization, organizational change
    • Innovativeness: creation of new products, services, technologies
  66. Why is intrapreneurship important:
    Critical in large firms, innovation is one of the critical competitive capabilities in today’s external environment, helps create and develop innovation from both the technical and social knowledge base
  67. Who are the intrapreneurs:
    engineers that have the role to produce and develop innovations
  68. Intrepreneural Barriers:
    • Organizational barriers
    • Lack of individuals who think and act as intrapreneurs
  69. Entrepreneur vs Intrapreneur:
    • In intrapreneurship employer will benefit more from financial revenues generated through intrepreneurship than the intrapreneur
    • Risk the entrepreneur bears seems higher, if he fails means heavy losses of personal wealth
    • If intrapreneur fails, will usually remain employed and retain salary
  70. Causes for Conflict:
    Diverse opinions and values, different objectives, varying access to information and resources within an organization
  71. How to handle conflict:
    Power and politics are used to handle differences and manage conflict
  72. Sources of intergroup conflict:
    Goal incompatibility (diverse objectives), different skill sets and personalities and cultures, task interdependence (departments depend on each other for resources, and as dependence increases potential for conflict increases), limited resources and struggle between departments for organizational resources such as budget
  73. Rational vs Political Model:
    When conflict is high the political model tends to describe the org, when conflict low the rational model tends to describe the org
  74. Political Model:
    goals are inconsistent, power and control is decentralized, decision processes are disorderly due to bargaining and interplay, rules and norms results in a free play of market forces (expected conflict), information is ambiguous and is used and withheld strategically
  75. Rational Model:
    Goals are consistent, power and control is centralized, decision processes are orderly and logical/rational, rules and norms are efficient, information is extensive/systematic/accurate
  76. Effective Organization (rational vs political):
    Effective organizations must learn to balance power and politics, balance between rational and political models
  77. Organizational Conflict 2 perspectives:
    • Traditional Perspective: conflict is bad and should be eliminated or resolved, conflict not need to occur, conflict results from breakdowns in a communication and lack of understanding, people are essentially good; trust, cooperation and goodness are givens in human nature
    • Pluralistic Perspective:
    • Conflict is good and should be encouraged; however, conflict must be managed, conflict is inevitable, results from a natural struggle for limited rewards and competition, people are not essentially bad, but are driven by self-seeking and competitive interests that cause conflict
  78. The three performance tensions:
    • Provide fundamental energy that can be harnessed to deliver sustainable results
    • Growth vs profitability
    • Short term vs long term
    • Whole vs parts
  79. Tension:
    Too little puts company to sleep, too much diverts energy into friction.
  80. Productively Tense:
    Turn tension and disagreement into a powerful tool for driving performance, dissent and disagreement for better decision making, faster learning and more effective solutions
  81. Thomas-Kilmann Conflict Assessment:
    • Shark: (competing) competitive, confident, stubborn, achieve goals, all or nothing, aggressive, self-serving (Cuban, Trump, Jobs)
    • Owl: (collaborating) adaptive, decision-makers, better alternatives, win-win, rational
    • Fox: (compromising) middle ground, sharing, open-minded to other’s needs
    • Turtle: (avoiding) , passive, withdrawal, reserved, wait and see
    • Teddy Bear: (accommodating) like turtle but active, smooth way to approach conflict, sensitive, ok to sacrifice
  82. Enhancing collaboration:
    • Create integration devices: bridging the gap, joint-problem solving teams
    • Constructive confrontation and negotiation: bargaining to create win-win
    • Schedule consultation: mediators, 3rd party consultants
    • Member rotations: cross-functional learning
  83. Management vs Leadership:
    • Management is a function (planning, budgeting, evaluating) that must be exercised in any org
    • Leadership is a relationship (selecting talent, motivating coach, building trust) between the leader and the led that an energize an organization to action
  84. Powell’s Leadership primer:
    18 lessons
  85. Lesson 1:
    • Being responsible sometimes means pissing people off
    • Ex: in many teams we can observe a situation when one person tries to do a good job on a project and works hard on it, he also pushes the rest to aim for quality and they might get pissed off since they want to finish the project fast rather than perfect
  86. Lesson 2:
    • The day soldiers stop bringing you their problems is the day you have stopped leading them.
    • Ex: middle managers could be considered more of a leader than CEO’s of a company in that they are in more direct contact with their employee’s problems
  87. Lesson 3:
    • Don’t be buffaloed by experts and elites. Experts often possess more data than judgement and elites can become so inbred that they produce hemophiliacs who bleed to death as soon as they are nicked by the real world
    • Ex: In my translation job there are many people who are linguistic experts in French who translate things in ways that are strange to English speakers. I have had to change their translations in order to make the story more comprehensible to the audience
  88. Lesson 4:
    • Don’t be afraid to challenge the pros, even in their own backyard
    • Ex: when I first joined my dance team, I was very adamant on adding my own ideas and challenging the ideas of the choreographers. I, now one of the leaders, find it annoying when others don challenge my thinking.
  89. Lesson 5:
    • Never neglect details
    • Ex: An orthopedic surgeon read MRI report but didn’t look at MRI and misdiagnosed injury, not proofreading a paper
  90. Lesson 6:
    • You don’t know what you can get away until you try
    • Example: Prokofiev was determined to win the piano competition, a rule was that contestants had to perform a published song so he decided to publish his own song before the competition, perform it and won.
  91. Lesson 7:
    • Keep looking below surface appearances. Don’t shrink from doing so just because you might not like what you see.
    • Ex: client has put off doing research, they believe research will force them to make changes in their site.
  92. Lesson 8:
    • Organizations don’t really accomplish anything, plans either. Theories of management don’t much matter. Endeavors succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.
    • Ex: Menlo’s interview process and company culture show how much they value their employees.
  93. Lesson 9:
    • Organization charts and fancy titles mean nothing
    • It just means that authority or titles doesn’t mean anything, what really matters is if you can lead and inspire people
    • Ex: The Missouri football team threatened to strike causing the Missouri president to step down
  94. Lesson 10:
    Never let your ego get so close to your position that when your position goes, your ego goes with it
  95. Lesson 11:
    • Fit no stereotypes. Don’t chase the latest management fads. The situation dictates which approach best accomplishes the team’s mission
    • Ex: AFROTC, biggest leadership challenge is figuring out how to be the right person for the right person
  96. Lesson 12:
    • Perpetual optimism is a force multiplier
    • Ex: football coach Jim Harbaugh is known for this and it has really shown in the team
  97. Lesson 13:
    • In picking people, look for intelligence, judgment and a capacity to anticipate. Look for loyalty, integrity, high energy drive, balanced ego and the drive to get things done.
    • Ex: John and Sally both apply to same position. In interview John focuses on the multiple degrees he has, Sally focuses on her past failures and how she overcame those problems to find solutions. Sally was chosen
  98. Lesson 14:
    • Great leaders are almost always great simplifiers who can offer a solution everybody can understand
    • Ex: Carl Sagan, astronomer, was able to simplify things and explain because understanding hard stuff wasn’t easy for him
  99. Lesson 15:
    • A: Use a formula p = 40 to 70, in which p stands for probability of success and the numbers indicate the percentage of information acquired
    • B: Once info is in the 40-70 range go with your gut
  100. Lesson 16:
    • The commander in the field is always right and the rear echelon is wrong, unless proved otherwise
    • Ex: college student should make decisions about college and career, and advisors and parents just for advice. If student is failing, parents know better
  101. Lesson 17:
    • Have fun in your command
    • Ex: good captain of a sport team will encourage the team works hard, but also lighten the mood and make hard work enjoyable
  102. Lesson 18:
    • Command is lonely
    • Ex: Claire Underwood finally gets Frank to presidential position, now she is lonely bc president is too busy and her position isolates her from friends
  103. Situational Management Model:
    • If capability of employee… then management view of employee…Management Response of…
    • Able/Unwilling: Uncomfortable/Confident in>> Low Direction/High Support (disgruntled or burned out employee)
    • Unable/Willing: Comfortable/Not Confident in>> High Direction/High Support (new employee)
    • Able/Willing: Comfortable/Confident in>> Low Direction/Low Support (high performance employee)
    • Unable/Unwilling: Uncomfortable/Not Confident in>> High Direction/ Low Support (1960s Military Draftee)
  104. Four Types of Strategic Change:
    • Core Products and Services (“Product Development”)
    • Strategy and Organizational Structure
    • Infrastructure
    • Corporate Culture
  105. Why innovation:
    Innovation is as important as a Strategic Change Agent
  106. Generalized Product Innovation Cycle:
    Invention -(creativity+)-> Innovation –(creativity & brand+) -> Design -> Succes/Trend/Unintended Outcome/Fad/Failure (and goes back to the stages)
  107. “Duality of Innovation”:
    • Single innovation can be modeled along an axes
    • Revolutionary vs evolutionary,
    • small vs large
    • process vs product
    • real vs perceived
  108. Revolutionary vs Evolutionary:
    • Evo: creates new products and services in incremental stages
    • Revo: Creates new products and services in large, radial leaps. Future state after revolutionary innovation is very different from prior condition “tipping point” achieved
  109. Moore Model – 15 innovation types:
    Disruptive, Product, Application, Platform, Line Extension, Value Engineering, Integration, Enhanced, Marketing, Experience, Process, Value Management, Organic, Structural and Harvest
  110. Sawhney Model – 12 innovation types:
    Offerings, Platforms, Solutions, Customer Needs, Customer Experience, Value Capture, Processes, Organizations, Supply Chain, Presence-Channel, Network, Brand
  111. Doblin Model – 10 Innovation types:
    Business Model, Networks and Alliances, Enabling Processes, Core Processes, Product design and performance, Product system and platform, services, channels, brand, customer experience
  112. Summary of Innovation Models:
    • Product
    • Customer Experience
    • Process
  113. Innovation 3 main elements:
    • Type
    • Timeframe
    • Size:
  114. Innovation Type:
    • Product: cell phones, PDA’s, appliances, ipod
    • Customer Experience: playmakers, Harley Davidson stores, ipod+itunes
    • Process: containerized shipping, bar code, package tracking
  115. Innovation TimeFrame:
    • Time of introduction of innovation
    • Short term 3 years
    • Middle term 3-7
    • Long term 7-15
  116. Innovation Size:
    • Micro: Created new product, services, processes in continuous incremental stages
    • Macro: Creates “””, in a large, discreet, radical leaps.
  117. Innovation varies based upon:
    • What is being innovated
    • The environment its taking place in – USS Bedfold
  118. Defining the innovation space:
    • Evolutionary/Revolutionary product: External end customer focused
    • Evolutionary/Revolutionary process: Internal customer focused
  119. Integrating Innovation into the organization:
    • Ambidextrous Approach
    • Horizontal Linkage Model
    • Dual Core Approach
  120. Ambidextrous Approach:
    • Balance organic vs mechanistic structure
    • Incorporates structures and management processes that are appropriate to both creation and application of innovation
  121. Horizontal Linkage Model:
    Balances customer desire with R&D, Marketing, production and business office
  122. Dual Core Approach:
    2 cores: technical and administrative (hierarchy), innovation can originate in either core
  123. Innovation in large orgs can be:
    Difficult, risky, sometimes inappropriate, extremely situational
  124. External Constraint of innovation:
    • Direct marketplace competition
    • Gov regulations
    • International physical boundaries
    • Macro/micro economoics
    • Global societal impacts, positions and trending
    • Tech positioning and trends
    • End customer wants
    • Evo/revolutionary scientific breakthroughs
    • Customer perceptions-real and imaginary
  125. Internal Constraints on innovation:
    • Brand family imaging
    • Desired corporate leadership position
    • Existing techs in portfolio
    • Budget
    • Skillsets available in org
    • Org’s approach to risk
    • Quality of innovative idea
    • Process timing
    • Org behaviors/expectations
  126. Organizational culture:
    Mindset that respects employees and their ideas, that fosters creativity, that encourages input to improvement and that, in general, uses people as a solid resource for positive change throughout the organization
  127. Schein’s Org Culture Levels
    • (top to bottom)
    • Visible Artifacts: physical space and objects, written and spoken language, tech output, overt behavior of members, Stories and myths
    • Values & Beliefs: what “ought” to be. Ususally testes over time to work with good results, debatable, overt, espoused values
    • Basic Assumptions: Validated values that are taken for granted and treated as reality, often subconscious, ultimiate and non-debatable
  128. Culture (wheel):
    • The personality of an organization
    • Paradigm
    • Control Systems
    • Org Structures
    • Power Structures
    • Symbols
    • Rituals and Routines
    • Stories and Myths
  129. Paradigm:
    • What does your company see as its guiding principles? How does it view itself in the marketplace?
    • Ex: customer focused, employee focused, safety, financial success,
  130. Control systems:
    • How does your company create organization within and between groups. Also what are the attitudes of your employees and how are things measured and monitored
    • Ex: dashboards
  131. Organizational Structure:
    • How is your company organized to make your products or deliver your services.
    • Ex: Hierarchical, flat, matrixed, team-based, functionally organized.
  132. Power Structures:
    • How does your company make decisions?
    • Ex: All decisions made at top levels, decisions made by department heads, accountability throughout the organization.
  133. Symbols:
    • What are some visual symbols, icons, communications, etc. that are associated with your company.
    • Ex: boards, signs, ads, dashboard, safety logo, company logo, colors.
  134. Rituals and Routines:
    • List some common tasks, meetings, activities, events etc., that are done on a repetitive basis.
    • Ex: Daily operations meetings, town hall meetings, annual awards ceremony (are these typically functional or dysfunctional?).
  135. Stories and Myths:
    • what are some stories that define what your company stands for.
    • Ex: Great things that happened that give you “bragging rights” or unpleasant things that happened that always need to be “explained away.”
  136. Leadership Temperament Indicator:
    • Test created by Isabel Briggs Meyers and Katherine Briggs
    • 16 personality types identified in 4 main categories
  137. Identification of 4 temperaments:
    • Where do you get energy: Extrovert (E) or Introvert (I)
    • How do you acquire data for decision making: Sensing (S) and Intuition (N)
    • How do you process data: Feeling (F) or Thinking (T)
    • What do you do with data: Perceiving (P) or Judging (J)
  138. Four leadership temperaments:
    • Visionaries/Rationals: Intuitive thinkers (NT) – Hilary C, Jack Welch, Stephen Hawk
    • Catalysts/Idealists: Intuitive feelers (NF)- Oprah, M.Gorbachev, Nelson M.
    • Trouble shooters/Artisans: Sensor Perceiver (SP)- Ernest Hem, D.Trump
    • Stabilizers/Guardians: Sensor Judgers (SJ)- George Wash, Mother T, Sam Walton
  139. Julie Roehm Case:
    Hired by Wal-mart as Marketing Executive, but became victim of the extreme sensitivities of a Wal-Mart business culture that forbids its buyers to take so much as a cup of coffee from vendors and generally frowns on behavior that draws attention to its inner workings. She did not fit in the culture, and was not right for that type of company. At Chrysler she won her fame because of her rock-star qualities, at Wal-Mart she got fired for them.
  140. Culture:
    Basic assumptions developed as the group learns to deal with external adaptation, internal integration. Set of values, norms shared by members of org.
  141. External Adaptation:
    How organization meets goals and deals with the outside environment
  142. Internal Integration:
    Members develop collective identity and work together effectively
  143. Iceberg model of org culture:
    • Top of iceberg: observable culture that is superficial and easy to see, limited in what it tells you
    • Bottom of iceberg: underlying culture that is hard to observe, yet most valuable aspect of culture in terms of creating an understanding.
  144. Change Management involves:
    • Ready
    • Willing
    • Able
  145. Change Management Process:
    • Define Business Goal & Future state (Make it Real)
    • Plan Change
    • Create an environment for change (Make it Work)
    • Execute & Improve
    • Integrate & Sustain (Make it Last)
  146. Phases of Individual Transition to Change:
    • Org is made of people so during change, focus needs to be on the individuals
    • Endings: denial, anxiety, shock, resignation, anger, fear, confusion, frustration, conflict
    • Neutral Zone: Undirected energy
    • Beginnings: High Stress, creativity, realization of loss, acceptance, impatience, hopeful, relief, trust, enthusiasm
  147. Managing Change:
    • Speeds benefit realization
    • Reduces productivity losses
    • Lowers total project costs
  148. Building Commitment:
    • “Commitment Curve” to build personal commitment to change (Time vs Commitment)
    • Contact: individuals have heard the vision initiative exists
    • Awareness: they are aware of basic scope and concepts of the Vision
    • Understanding: they understand the impacts to their co. and their functional area
    • Positive Perception: they understand impacts and benefits to them
    • Adoption: they are willing to work with and implement the Vision
    • Institutionalization: The vision is the way work is done at our co. – the new status quo
    • Internalization: they make the vision their own and create innovative ways to use and improve.
  149. Skills of Change Agent:
    • Building Business and Organizational Credibility
    • Applying a Theoretical Framework
    • Partnering and Contracting
    • Analyzing and Diagnosing
    • Determining Appropriate Interventions
    • Executing and evaluating interventions
    • Center: Courage
  150. Obstacle to Change by Kotter:
    • Declaring victory too soon
    • Neglecting to anchor changes firmly in the corporate culture
    • Allowing too much complacency
    • Failing to create a sufficiently powerful guiding coalition
    • Underestimating the power of vision
    • Undercommunicating the vision by a factor of 10
    • Permitting obstacles to block the new vision
    • Failing to create short-term wins
  151. Organizational change:
    The adoption of a new idea or behavior by an org
  152. Scope of Org Change:
    • Incremental: evolutionary, series of continual progression that maintain the org’s general equilibrium and often affect only one part, ex. Adding a new team to org
    • Radical: Revolutionary, breaks frame of reference for the org, transforms entire org, ex. Changing from push to pull system
  153. Strategic Types of Org Changes:
    • Technology: Lean, six sigma
    • Products and services: new dimension to company offerings
    • Strategy and structure: new org chart, reporting, merger
    • Culture: deliberate attempt to shift org culture
  154. Levels of Org Changes:
    • Individual: recruitment, replacement, coaching
    • Group (department): team building
    • Total System: emphasis on different orders of change.
  155. Why Transformation?
    • Global Changes, Competition & Markets: Techn Change, international econ integration ,fall of communists and socialist regimes
    • More Threats: More domestic competition, increased speed, international competition
    • More Opportunities: Bigger markets, fewer barriers, more international markets
    • More Large-scale changes in org: structure change, strategic change, quality programs, mergers, joint ventures, e-business
  156. Incremental Change - Radical Change:
    • Continuous progression – Paradigm-breaking burst
    • Affect org part – transform entire org
    • Through normal structure and mgmt. process – create new structure and mgmt.
    • Tech improvements – breakthrough tech
    • Product improvement – new product, new market
  157. Model for Org Transformation:
    • D*V*F > R
    • D: Dissatisfaction
    • V: Vision as to what the future could be
    • F: First step, plan for change
    • R: Resistance to change
  158. Stages of commitment to transform:
    • Preparation: initial contact, awareness
    • Acceptance: understanding, decision to implement
    • Commitment: institutionalization, installation
  159. Reasons for resistance to change:
    • Loss of control
    • Excess uncertainty
    • Threatens habitual behavior
    • Risk
    • Concerns for future
    • Past resentments
  160. Positive Effects of resistance:
    • Implies people care about an issue
    • Brings clarification on an issue
    • Opens up avenues of thinking
    • Prohibits moving too quickly
Card Set
Exam 2 IOE 421
Exam 2
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