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Objectives that manangement seeks to achieve in pursuing the purpose of the firm's goal to motivate people to work together |
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Specific action plans that enable the organization to achieve its goals and thus its purpose |
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Organization Evolution Stages |
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Inception High-growth Maturity-more mature, tne to become more formalized and thus more differentiated. Decline-possible, not definite outcome. Time to prevent decline changes is when things are going well
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Defines how job tasks are formally divided, grouped, and coordinated. The system of task, reporting, and authority relationships within which the work of the organization is comleted Form and function of organization activities and how organizations fit together
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Organizational Structure Key Issues to be address |
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Work specialization Departmentalization Chain of command Span of control Centralization Decentralization Formalization
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Differentiation Org. Structure |
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Fragments the organization through specialization of labor Excessive differentiation can cause miscommunication, conflict, and politics
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Integration Org. Structure |
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Work Specialization Division of Labor |
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Dividing work into different jobs and different people Creates problems when carried too far: Lower job satisfaction, decreased worker involvement and commitment |
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Departmentaliztion (internal processes) |
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Jobs are grouped togther and allocated to work groups: Function-traditional business: marketing, org structure Process-job groupings, encourage specialization
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Departmental (External Processes) |
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Basis by which jbos are grouped together and allocated to work groups Product Geography-global, state, region Customer-large, med, small organizations
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Degree to which decision making is condentrated at a single point in the organization |
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When front line employees and managers make decisions |
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Degree to which jobs within the organization are standardized Degree to which rules and procedures shape employees jobs and activities Purpose: predict/control how employees behave in the job Explicit rules explained in the job description, policy and procedure manuals Implicit rules developed as employees become accustomed to doing things (unwritten rules)
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Obligation to do something with the expectation of achieving some act or output Assigned through Chain of Command - managers can delagate responsability, but it isi ultimately responsablity of manger assigned |
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Power that has been legitimized within a social context. Part of an official organizational role, from ownership in the organization |
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Mechanistic Structure (model) |
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Good in relatively stable environments strict rules, narrowly defined tasts, top-down communication High specialization Rigid departmentalization Clear chain of command High formalization
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Flexible networks of muli-talented individuals that perform various tasks successful in unstable enviroment cross-functional teams cross-hierachical teams free flow of info wide span of control decentralization/low formalization
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The way we do things in the workplace |
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Steps for Creating Organizational Culture |
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Formulating Strategic Value: basic beliefs about the orgs. enviroment, links orgs and enviroment. Create Cultural Values: values employees need to have and to act on for the organization to carry out the strategic values Create the vision: Picture of what org will be in the future. Protrays strategic and cultural values in future. Initiate Implementaion Strategies: Builds values and initiate action to accomplish vision, devolop org design, recruting and training employees Reniforce Cutural Behaviors of Employees: As they act out cultural values implement org. strategies. Employees learn culture through stories, rituals, language |
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Characteristcs of Organizational Behavior |
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Boundary-defining roles: creat distinctions between one organization or another Conveys a sense of identity "oneness" Facilitates the generation of commitment-org commitment-individual commitment Enhances social system-social glue hold Org together Sense-making and control mechanism: guides/shapes attitudes and behaviors of employees
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Gives members an organizational identity -self-esteem, proud to be apart Facilitates collective agreement -Feel a part of the company, realize how you make a difference Promote social system ability -rules are established and adhered to Shapes behaviors by helping members make sense of surroundings -know the business, what is expected, how you fit in, future opportunites |
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Organizational Socialization |
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Anticipatory socialization Encounter Change and Acquistion |
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Anticipatory Socialization |
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Phase occurs before the individual joins organization Info about the organization (right or wrong) that the employee knows Unrealistic expections are often formulated during this period
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This phase begins once the employment contract has been signed and is a time of suprises and sense making Advice from and getting to know co-workers Reality shock-newcomers feel of surprise after experiences unexpected situations or events
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Lowest in complexity, cost, and uncertainty Involves re-implementation of a change in the same organization until or implementation of a similiar change in a different unit familiar-so not threatening example-long retail hours during the holiday season
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Fall midway on the complexity, cost and uncertainy continuum. Unfamilarity and great uncertainty increase the amount of fear of change
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Radically Innovative Change |
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Complex, cost high, uncertainty high Most difficult to implement and most threatening to employees
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Internal -human resource issue -managerial behaviors and decisions External -Demographic characteristics -Technological advancements -Market changes -Social and Political pressures |
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People Senior Citizens (conservative) Baby boomers(more college education higher expectations) Post 1964-thoughts (no pension, more movement between jobs, less chance for SS, relant of long term savings)
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Change is a learning process There must be a motivation to change People are the root of all change Always resistance to change (fear of unknown) Effective change requires appropriate reinforcing practices-behavior and attitudes
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Unfreezing: create motivation to change -benchmark ( a company compares performance with that of higher performing organization) Change: Movement to the new state -decrease restraining forces that hinder movement from present state Refreeze: make new behavior permanent and resist further change |
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-Establish sense of urgency -Establish coalition wiht enough power to guide the change - Develop a vision and strategy -Communicate the vision and strategy (leaders must be model) -Empower employees throughout the organization to act on the vision -Generate short term wins -Build on short term wins to consolidate improvements -Insitutionalize the new approaches in the organization culture |
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Overcoming Resistance to Change |
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- Employee participation - Managers keep in mind: - organization must be ready to change - be honest, open and encourage discussion of change - employees perception/interprations affect resistance -Mangers should: -Provide as much info about change as possible to employees - inform employees of reasons for change, address questions |
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Deals with planned change from the top management perspective identifies the need for change begins the problem solving/decision making process transformational mangers define goals for future alternatives/solutions
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-Identify a change agent -can be from inside the organization -Power source -internal agent(position of organization) -external agent (history/reputation of organization) -Understanding change agents leadership - Implete lewin's change model - During evaluation and control - access if changes are having effects(modify if necc) -Transitional Management (systematically planning) |
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