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There are two major rationales for why we organize (Jones):
2. Coordination of tasks. Organizations help to coordinate between these different tasks in order for specialists to not only fulfill their own piece, but to fulfill the pieces such that the other specialists can also contribute to it.
An organization is a very basic concept that help convert inputs and some sort of desired output. They help creating structure a certain environment in which tasks are being completed that take raw materials into goods, for instance or skills of experts and convert them into complex services. There are primarily four different ways in which an organization can be structured (Jones). This designs the process of coordination and splitting up of tasks.
2. Centralization vs. decentralization
3. Standardization vs. mutual adjustment
4. Organizational culture
There are two different archetypes of organizations that allow organizations to achieve certain aims (Jones):
- Individual specialization with clear tasks
- Simple integration, mainly through hierarchy
- Strong centralization of authority and control - High level of standardization
- Tall hierarchy
2. Organic organizational structures (consultancy)
- Joint specialization with ad hoc coordination
- Complex integration, with special purpose teams
- Strong decentralization as authority and control are delegated
- Mutual adjustment
- Flat hierarchy
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If people engage in collective value generation, then there are three main things that need to be accomplished:
2. Integrate -> Integrate different components and different tasks that everyone carries out between one another.
3. Motivate -> Motivate people in order for them to actually do what they are supposed to and want to do the best they possibly can.
There are two primary means by which an organization can accomplish these three primary objectives:
2. Informal organization (culture) These two primary means also interrelate and are somewhat conditioning one another. It is crucial to align both the formal and the informal organization.
If the six Weber’s principles of bureaucracy are fulfilled, an organization should achieve organizational objectives (controlling, integrating, and motivating). The six Weber’s principles of bureaucracy are:
2. Job specializations (jobs are broken down into simple, routine and well-defined tasks)
3. Formal rules and regulations (to ensure uniformity and to guide the actions of employees) 4. Career orientation (managers are professionals rather than owners)
5. Formal selection (members are selected based on qualifications)
6. Impersonality (all rules and controls are applied uniformly, not according to personalities or personal preferences)
Hierarchy of authority helps accomplish the primary three tasks.
- Control (probe subordinates, direct observation, prevent freeriding)
- Integrate (continuous task-assignment and managing relations)
- Motivate (mentoring and professional development, immediate feedback and performance-based rewards)
Mechanistic organizational structures are typically well developed for environments with a very low degree of uncertainty. Resources can be easily acquired. Preferences of the customers are clear. To make a mechanistic organization structure successful, the following adaptations must be made:
- Centralized decision making
- Standardization by use of SOP
Organic structures are very well adapted to highly uncertain environments. An organization needs to respond quickly to the environment. To make an organic organization structure successful, the following adaptations must be made:
- Decentralized decision making
- Mutual adjustment
Divisional structure pros & cons
+ Increased efficiency focus.
+ Avoid information overload.
+ Diversification of risks.
+ International markets
- Difficult managing the relationship between headquarter/divisions.
- Integration between divisions.
- How to set the transfer price.
- Bureaucratic costs.
- Communication problems because it is a tall hierarchy.
- Slowing innovation
Matrix structure pros & cons
+ Allows communication/collaboration between specialists of different functional areas.
+ The combination of functions (vertical) and products (horizontal) promotes concern for both cost and quality.
+ Promote innovation and facilitates the adaptation to changing environments.
- Matrix lacks a control structure that leads employees to develop stable expectations of one another.
- Conflicts between functions and product teams over the use of resources.
- People are likely to experience a vacuum of authority and responsibility.
- People create their own informal organization to provide themselves with some sense of structure and stability.
Culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense is a system of collectively held. Culture can be nested at different levels:
- National culture
- Industry culture
- Organizational culture
A culture has different layers of culture. On the top levels the visible layers of culture are visible. On the lower levels the layers are not invisible:
- Artefacts (surface level) -> Tangible aspects that can be seen, heard and observed (slogan, company name, visible set-up of offices).
- Espoused values and norms (middle) -> Shared principles, standards and goals. It is about what people say they or others “should do”.
- Assumptions (deepest level) -> taken for granted beliefs about human nature, “reality”. Often unspoken and typically reside out of immediate awareness. Discerned from how people explain and justify what they do.
A distinction can be made between two primary orientations that organizations can take towards socializing their employees to bringing the employees into the organizational culture:
2. Individualized role orientation -> Be creative and experiment with changing norms and values. Employees will not feel restrained and think out of the box.
A strong culture has a few risks:
- Values, norms, and accepted behavior may be misaligned with the company’s environment. It is not well suited in the competitive market
- Strong culture makes it really hard to change if the internal or external environment changes.
Hypocrisy attribution dynamic
- Espoused values -> What members of an organization say they value.
- Enacted values -> What is reflected in the actual behaviors of the members of an organization.
When you observe individuals within an organic organization responding to a new situation in a very similar way independently from one another; what most accurately describes the organizations' socialization process outcome?
Which culture-structure combination is the most likely to enable organizational members to flexibly respond to changing environmental conditions?
Value-chain cycle Strategy
There is a clear distinguish between two types of business level strategy:
2. Low cost strategy -> Cost efficiently as possible. There is a simple structure and centralized decision making (car manufacturing industry).
Business level strategy and culture support individual behavior that aligns with the business level goals.
Which function typically has the most organic structure?
Technology is the combination of skills, knowledge, abilities techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials, problems, and new ideas into valuable goods and services. There are two faces of technology that can be distinguished:
2. Wider sense -> All production (tools or machinery).
The four types of technology (connected with task complexity):
2. Craftwork -> Low variability + low analyzability (small batch)
3. Engineering production -> High variability + high analyzability
4. Non-routine research -> High variability + low analyzability
The three types of technology (connected with task interdependence):
2. Long linked -> Planning and scheduling (just-in-time assembly). Input, converting and output must be planned in series. Activities affects others. Any error that occurs in the beginning of the process becomes magnified.
3. Intensive -> Mutual adjustment (R&D). Input, converting and output is inseparable. A high degree of coordination is necessary.
Organizational decision making is the process of responding to a problem by searching for and selecting a solution or course of action that will create value for organizational stakeholders. There are three models for organizational decision making:
2. Carnegie model
3. Unstructured model
The rational process is when all knowing managers made decisions which allow the organization to adjust perfectly to the environment. It is about attaining economical goals by behaving rationally. The rational model contains of three stages:
2. Generate alternative solutions to the problem.
3. Select solution and implement it.
The problem of the rational model is that it does not allow bad decisions to be made. It assumes that decision makers are perfect, but this is not realistic.
Carnegie model The Carnegie model is built around four pillars:
2. Multiple interest. There are conflicting goals, interests and knowledge. Individual versus organizational goals.
3. Standardized procedures and rules
4. Decision making structure
There are three different strategies for organizational learning:
2. Exploitation -> Try to improve existing activities/procedures.
3. Listening to dissenters -> Managers surround themselves with people who hold opposing points of view to collect new information to evaluate new alternatives.
Cognitive biases can disturb organizational learning. Cognitive bias is the system of interrelated beliefs, preferences, expectations, and values a person (or group) uses to define problems and events.
Innovators are intrapreneurs (innovation inside the organization) and entrepreneurs (innovation outside the organization). The common foundation for both is creativity and creative destruction. There are two basic types of innovation that can be distinguished:
2. Incremental (continuous, evolutionary, red ocean, new models of iPhones)
What is a statement regarding the unstructured model of decisionmaking
What is an example of organizational learning that involves exploration?
There are two different organizational change approaches:
2. Evolutionary change is a constant attempt to improve, adapt, and adjust strategy and structure. It is about doing the same thing but better. Evolutionary change is structural and behavioral, incremental, focused, slow and gradual.
Lewin’s three-step change process Lewin’s three-step change process describes three steps within an organization change process:
2. Change -> (implementing change)
3. Refreeze -> (evaluate
Natural selection takes place in a certain environment (ecology). This could be:
- Technological
- Social
- Physical environment
2. Selection (some organizations perform better than the others/ These are the organizations that are best adapted to the environment)
3. Retention (organizations that are not performing good, extinct)
Within organizations in which institutional organization is important, organizations become more similar over time. Organizational isomorphism is the process by which organizations in a population become similar. There are three mechanisms:
2. Mimetic isomorphism -> Organizations within a certain field start to copy each other.
3. Normative isomorphism -> Informal rules (Code of Conduct)
The shift to online teaching at the start of the COVID-19 crisis can be characterized as a?
What are the typical organizational development (OD) participation and influencing tactics?
Conflict is the clash that occurs when the goal-directed behavior of one group blocks or spoils the goals of another group. This happens between and within organizations. There are two views on conflict in organizations:
2. Unitary (harmony)-> Organization as one social system, shared goals/values and organization is instrumental for achieving goals.
Politics are the activities taken within the organization to acquire, develop and use power. It is about obtaining one’s preferred outcomes in a situation in which there is uncertainty or disagreement about choice. There are two perspectives on organizational politics:
2. Necessary (overcome discrepancies, consensus)
The difference between power and politics is that power is something you have and politics is the process of applying this power.
What is the difference between politics and power?
What is the Machiavellian perspective on organizational politics?
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