Chapter 7 MCQ

Technology:
- work processes, techniques, machines, actions
- used to transform input to outputs
- influences organizational structure
- helps dictate how organizations can be designed for efficiency
Core technology:
- work processes related to mission
- relates to the transformation process to provide goods/services
Non-core technology:
- not directly related to primary mission
- is important
- illustrated by departments of HR, Accounting, R&D, Marketing
Pressures affecting organization design:
Strategic design needs (external):
- environment, strategic direction
- top down
Operational design needs (internal)
- work processes
- bottom up

Core organization manufacturing tech include:

- traditional manufacturing processes
- contemporary applications such as:
- smart factory
- learn manufacturing

Manufacturing firms
Technical complexity:
- extent of mechanisation of the manufacturing process
- high technical complexity means ; most of the work is performed by machines
- low technical complexity means ; workers play larger role in production process
Three basic technology groups defined by Woodward:
1. Small-batch & unit production:
- relies heavily on human operator
- not highly mechanised
2. Large-batch & mass production:
- manufacturing process characterised by long production runs of standardised parts
3. Continuous-process production
- automated machines control a continuous process

Woodward’s classification based on system of production

- technology is related to structure & performance
- based on technical complexity
Finding:
- mass production firms were formalized, centralized, mechanistic, larger span of control, & less
educated workers than small batch or continuous process technologies

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Smart factory:
- when technological & human systems are intertwined
- robots take over doing the work of people
- wave of the future, only way manufactures in developed countries can compete with low-wage
countries
- include robots, RFID, wireless tech, computerized software, engineering analysis, remote control
of machinery
Subcomponents:
- Computer-aided design (CAD)
- uses computers to assist in drafting, design, & engineering of new parts
- Computer-aided manufacturing (CAM)
- increases speed of manufacturing & changing production setups by computer-controlled machines
- Robots
- 3-D printing
- Integrated information network:
- computerized system linking all aspects of accounting, purchasing, marketing, etc.
- based on common data & information base
- enables managers to make decisions & direct manufacturing process
Combination:
- a new product can be designed on the computer
- prototype can be produced untouched by human hands
- switch quickly from one product to another
- work fast & with precision,
- no paperwork or record keeping to bog down the system

Lean manufacturing:
- uses highly trained employees at every stage of the production process
- approach to details & problem solving to cut waste & improve quality
- based on a number of specific principles such as Kaizen:
- implementation of large number of small, incremental improvements in all areas

Five principles of lean manufacturing:

1. Identify value from customer’s perspective:
- understand the value placed by customer on products
- determine how much money the customer is willing to pay
2. Create flow:
- eliminate functional barriers & identify ways to improve lead time
- critical to elimination of waste
- prevents interruptions in production process, enables a harmonised & integrated set of processes
that move in a constant stream
3. Establish a pull system:
- start new work only when there is demand for it
4. Map the value stream:
- record & analyze flow of info to produce a specific product
- intent to identify waste & methods of improvement
5. Pursue perfection with continual process:
- targeting the root causes of quality issues
- eliminating waste across the value stream
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Non-core departmental technology:
- developed by Charles Perrow
- specified two dimensions of departmental activities, relevant to organization structure &
processes
1. Variety:
- number of exceptions, problems, or events that occur in the department’s work
- ranges from repeating a single act on a traditional assembly line
- to working on unrelated problems
2. Analyzability:
- extent to which work is mechanical, clear cut, follows an objective, computational procedure
- when process is analyzable, work can be reduced to mechanical steps & participants
- follow an objective, computational procedure to solve problems
Some work is not analyzable:
- rely on experience, intuition, & judgement
Routine vs Non-routine:
- variety & analyzability can be combined into a single dimension of technology
Impact of technology on job design
Job design:
- assignment of goals & tasks to be accomplished by employees
- job design may consciously change job design to improve productive
- job design may unconsciously be influences through introduction of new tech
Job simplification:
- variety and difficulty of tasks performed by a single person are reduced
Job rotation:
- moving employees from job to job to give them a greater variety of tasks
Job enrichment:
- caused by more advanced technology
- job provides greater responsibility, recognition, and opportunities for growth and development
- create a greater need for employee training & education
Job enlargement:
- expansion of the number of different tasks performed by an employee

Sociotechnical system:
- recognizes interaction of technical & human needs in effective job design
- combines the needs of people with the organization’s need for technical efficiency
- Socio: refers to the
people & groups that
work in organizations
& how work is
organized &
coordinated
- Technical: materials,
tools, machines, &
processes used to
transform
organizational inputs
into outputs

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Chapter 9 Essay
Entrepreneurial stage:
- emphasis on creating a product or service & surviving
- devoting energies to production & marketing
- creative & technically-oriented owners are confronted with management issues
Characteristics:
- small, non-bureaucratic, one person show
- top manager provides structure & control system
- rewards are personal
Collectivity stage:
- known for development of clear goals and direction
- followed by an autonomy crisis as managers want more freedom
Characteristics:
- growth is rapid, employees are excited & committed
- structure still informal, procedures are emerging
- continued growth is a major goal
Formalization stage:
- addition of internal systems
- followed by a crisis of needing to deal with too much red tape
Characteristics:
- adds staff support groups
- formalizes procedures
- hierarchy & division of labor
- innovation achieved by a separate (R&D) department
- goals are stable and expandable
- management implements formal control systems
Elaboration stage:
- mature organization
- known for development of teamwork through manager teams & task forces
- includes periods of temporary decline when there is a crisis of revitalization
Characteristics:
- large & bureaucratic
- extensive control systems, rules & procedures
- managers develop team orientation to prevent further bureaucratization

Bureaucracy:
Includes:
- theory of Max Weber - rules and standard procedures
- basis for the systematic formation of any - clear tasks & specialization
organization - hierarchy of authority
- designed to ensure efficiency and economic - technical competence
effectiveness - separation of position
Defined as: - written records
- threat to liberty
- most efficient system for organizing
- rational control
- new form of organization

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Weber’s dimensions of bureaucracy:
1. Rules & standard procedures:
- organizational activities performed in a predictable, routine manner
2. Specialized duties:
- each employee had a clear task to perform
3. Hierarchy of authority:
- provides a sensible mechanism for supervision & control
4. Technical competence:
- basis by which people were hired rather than friendship, family ties, & favouritism
5. Separation of position:
- individuals did not own or have an inherent right to the job, which promoted efficiency
6. Written records:
- organizational memory & continuity over time

Size & Structural control

1. Formalization:
- rules, procedures, & written documentation
- policy manuals & job descriptions
- prescribe the rights & duties of employees
2. Centralization:
- level of hierarchy with authority to make decisions
- larger organizations permit greater decentralization
3. Personnel ratios:
- ratio of top administrators to total employees is smaller in larger companies
- clerical and professional staff increases in proportion as the size of a firm increases
- greater communication & reporting requirements are needed as organizations grow larger
- professional staff ratio increases because of the greater need for specialized skills in larger,
complex organizations

Three organizational control strategies:

1. Bureaucratic control:
- use of rules, regulations, policies, hierarchy, & documentation
- to standardize behavior & assess performance
Rational-legal authority:
- based on employees’ belief in the legality of rules
- right of those elevated to positions of authority to issue commands
Traditional authority:
- traditions & in the legitimacy of the status of people exercising authority through tradition
Charismatic authority:
- devotion to the exemplary character or heroism of an individual person
2. Market control:
- uses price-cost comparisons to evaluate performance
- requires price competition
- price reflects the true value of outputs and is a measure of internal efficiency
- used at the level of the entire organization, also used in product divisions or profit centers

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3. Clan control:
- use of corporate culture, shared values, commitment, traditions, trust, & beliefs to control
behavior
- used in organizations with a strong culture
- important when ambiguity and uncertainty are high
- managers act as mentors, role models, & agents for transmitting values

Organizational decline:
- when a substantial, absolute decrease in an organization’s resource base occurs over a period of
time
Causes:
1. Organizational atrophy:
- when organizations grow older & become inefficient & overly bureaucratized
- ability to adapt to its environment deteriorates
2. Vulnerability:
- strategic inability to prosper in its environment
- often happens to small organizations that are not yet fully established
3. Environmental decline or competition:
- refers to reduced energy & resources available to support an organization
- when environment has less capacity to support organizations
- either scale down operations or shift to another domain

Stages of decline & the widening performance gap

1. Blinded stage:
- internal & external change that threatens long-term survival
- require the organization to tighten up
- alert executives can bring the organization back to top performance
2. Inaction:
- denial occurs despite signs of deteriorating performance
- acknowledge decline & take prompt action to realign the organization with the environment
3. Faulty action stage:
- organization is facing serious problems
- indicators of poor performance cannot be ignored
- failure to adjust to the declining spiral at this point can lead to organizational failure
4. Crisis stage:
- organization still has not been able to deal with decline effectively & is facing panic
- organization may experience chaos, efforts to go back to basics, sharp changes, & anger
5. Dissolution stage:
- stage of decline is irreversible
- organization is suffering loss of markets & reputation
- loss of its best personnel, & capital depletion
- best thing to do is close down the organization

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Chapter 10 MCQ & ESSAY
MCQ:
Culture:
- set of values, norms, guiding beliefs, & understandings
- shared by members of an organization & taught to new members
- taught to new members as the correct way to think, feel, & behave
Two levels:
Surface level:
- includes observable symbols, ceremonies, stories, slogans, behaviors, dress, & physical settings
Underlying level “true level”:
- includes values, assumptions, beliefs, & thought processes
- trust, honesty and integrity play
Social capital:
- quality of interactions among people & whether they share a common perspective

Emergence & purpose of culture:

- provides people with a sense of organizational identity
- generates a commitment to beliefs & values larger than themselves
Two critical functions:
1. integrate members so they know how to relate to one another
2. help organization adapt to external environment
Internal integration:
- collective identity & know how to work together
External adaptation:
- helps organization meet goals & deal with outsiders by responding rapidly to customer needs
MARKED AS IMP SLIDE:
Observable aspects of organizational culture:
1. Rites & ceremonies
2. Stories & saying
3. Power relationships
4. Control systems
5. Organization structures
6. Symbols

Interpreting culture:
Rites and ceremonies:
- elaborate, planned activities that make up a special event, often conducted for the benefit of an
audience
Rites of passage:
- facilitate the transition of employees into new social roles
Rites of integration:
- create common bonds & good feelings among employees & increase commitment to the
organization

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Stories & myths:
- narratives based on true events, frequently shared among organizational employees & told to new
employees
Heroes:
- serve as role models
Legends:
- historical events embellished with fictional details
Myths:
- consistent with the values & beliefs of the organization, but not consistent with the facts

Symbols:
- something that represents another thing
- represents the deeper values of an organization
- physical artifact of the organization
- physical symbols are powerful because they focus attention on a specific item
Organization structures:
- strong reflection of the culture is how the organization is designed
Power relationships:
- deciphering who influences or manipulates or has the ability to do so
Control systems:
- inner workings of how the organization controls people & operations
- looking at how information is managed

Nordstrom’s structure:
- reflects the emphasis the department store chain puts on empowering & supporting lower-level
employees

MARKED AS IMP SLIDE:

Organizational design & structure
- managers want a corporate culture that reinforces the strategy & structural design the
organization needs to be effective within environment
Two structures:
1. extent to which the competitive environment requires flexibility or stability
2. extent to which the organization’s strategic focus and strength are internal or external
Four categories of culture associated with these differences:
1. adaptability ; creativity, flexibility, responsiveness
2. mission ; performance, competitiveness, goal-orientation
3. clan ; teamwork, friendliness, consideration
4. bureaucratic ; control, stability, order
relate to the fit among cultural values, strategy, structure, and the environment

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1. Adaptability culture:
- characterized by strategic focus on the external environment
- flexibility and change to meet customer needs
- company actively creates change
2. Mission culture:
- major importance on a clear vision of organizational purpose
- achievement of goals such as sales or market share
- translate the vision into measurable goals
- evaluate employee performance for meeting them
3. Clan culture:
- primary focus on the involvement & participation of the organization's members
- rapidly changing expectations from the external environment
- important value is taking care of employees & making sure they have whatever they need to help
them be satisfied as well as productive
4. Bureaucratic culture:
- internal focus & a consistency orientation for a stable environment
- high level of consistency, conformity, and collaboration among members
- managers shift away from bureaucratic cultures to gain flexibility

Culture strength:
- degree of agreement among employees about the importance of specific values
- have a powerful impact on company performance
Subcultures:
- develop within the larger organization, reflecting common problems, goals, & experiences

Strong cultures include constructive adaptation with the following values:

1. concern for employees & customers
2. flexible behaviour
3. encouragement of risk taking, change, & improvement

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Ethics:
- code of moral principles & values
- govern the behaviors of a person or group with respect to what is right or wrong
Managerial ethics:
- ethical decisions beyond behaviors governed by law
- guide the decisions & behaviors of managers with regard to whether they are right or wrong
Ethical dilemma:
- a situation concerning right and wrong in which values are in conflict

Sources of individual ethical principles

1. History ; religion, philosophy, geographic environment, nationality, society, culture
2. Society ; societal norms & values, laws, codes, & regulations
3. Local Environment ; organizations, geographic regions/communities/families/clans
4. Individual ethics & actions

Relationship between rule of law & ethical standards:

- ethical standards apply to behavior not covered by the law, & the rule of law applies to behaviors
not necessarily covered by ethical standards
Rule of law:
- arise from a set of codified principles
- regulations that describe how people are required to act
- generally accepted in society
- enforceable in the courts

Corporate social responsibility (CSR)

- extension of the idea of managerial ethics
- refers to management’s obligation to make choices
- taking action so that the organization contributes to the welfare & interest of all
Sustainability:
- weaving environmental & social efforts to preserve natural resources into all decisions
- significantly higher sales growth, return on assets, profits, and cash flow

MARKED AS IMP SLIDE:

Value-based leadership:
- responsible for sustaining a culture that reinforces ethical behavior
- strengthened primarily through values- based leadership
- relationship between a leader and followers based on shared values
- treat others with care, accept others’ mistakes, & articulate a vision for high ethical standards

Formal structure & systems:

- additional tools for shaping cultural and ethical values
- assign responsibility for ethical values to an ethics committee
- ethic hotlines seeking guidance and reporting questionable behavior

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Disclosure mechanisms:
- confidential hotline, an important mechanism for employees to voice concerns about ethical
practices
- holding organizations accountable depends on individuals who are willing to speak up
Whistle-blowing:
- employee disclosure of illegal, immoral, or illegitimate practices on the part of the organization

Code of ethics:
- formal statement of the company’s values concerning ethics & social responsibility
- clarifies what the company stands for & its expectations for employee conduct
Training programs:
- ensure that ethical issues are considered in daily decision making
- supplement a written code of ethics with employee training programs

MARKED AS IMP SLIDE:

Characteristics of values-based leaders:
Interpersonal behaviours:
- treat others with care
- helpful & supportive of others
- put effort into maintaining positive interpersonal relationships
Fairness with others:
- treat everyone fairly and with respect
- accept others’ mistakes & failures & are never condescending
Personal actions & expectations
- hold themselves to high ethical standards
- strive to be honest, humble, & trustworthy
- consistently ethical in both their public & private lives
- open about & accept responsibility for their own ethical failings
Organizational leadership:
- articulate & communicate ethical vision
- hold people accountable
- put ethics above short-term interests

Global culture:
- presents tough ethical challenges
- global supply chain is an area of growing ethical concern
- countries have varied attitudes and beliefs
Characteristics:
- multicultural rather than national values
- basing status on merit rather than nationality

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