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BUS 387 Midterm 3 Dahm

Terms in this set (163)

Centralization
the degree to which decision making authority is concentrated at higher levels in an organization
decentralized companies give (more or less) authority to lower level employees
more

-this results in a sense of empowerment
facts about decentralized companies
-decisions are faster
-greater levels of procedural fairness to employees
-good for creativity, bringing out the best in employees
-job candidates are more likely to be attracted to decentralized organizations
facts about centralized companies
- leads to inefficiencies in decision making
- many important decisions are made and problems are solved at lower levels by employees who are closer to the problem in question
tall structures
An organization where there are several layers of management between frontline employees and the top level
flat structures
an organization with few layers, often with large numbers of employees reporting to a single manager
span of control
the number of employees reporting to a single manager
in tall structures the span of control is __________
smaller
flat structures are better at satisfying ______________ needs, such as _______________
higher order
self actualization
tall structures are better at satisfying _________________ needs of employees
security
formalization
The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated
formalization makes employee behavior more ...
predictable
the ________ industry is particularly susceptible to problems associated with high levels of formalization
service
high degree of formalization may lead to reduced innovativeness because..
employees are used to behaving in a certain manner
functional structures
grouping of jobs based on similarity in functions
- department such as marketing, manufacturing, finance, accounting, etc.
functional structures are effective when an organization ...
does not have a large number of product and services requiring special attention
divisional structures
grouping of jobs based on the products, services, customers, or geographic locations the company is serving
-within each department functions such as marketing, manufacturing, and other roles are replicated
- ex: the accounting department in the scranton branch of dunder mifflin
mechanistic structures
- structures that resemble a bureaucracy and are highly formalized and centralized
- ex: McDonalds
pros to mechanistic structures
-high efficiency
-clear lines of communications
Ex: McDonald's uses mechanistic structures to produce a uniform product all around the world
cons to mechanistic structures
- resist change, making the structure unsuitable for being innovative
- limits individual autonomy and will lead to lower motivation
Organic structures
flexible and decentralized structures with low levels of formalization where communication lines are more fluid and flexible
pros to organic structures
- broad employee job descriptions
- related to higher level of job satisfaction
- conducive to innovation
matrix organizations
-A cross between a traditional functional structure with a product structure.
-Specifically, employees reporting to department managers are also pooled together to form project or product teams.
a company will use a matrix structure to balance ...
the benefits of product based and traditional functional structures
unity of command
- A situation where each person reports to a single manager.
- Traditional organizations are based on the principle of unity of command, while matrix organizations do not follow this principle.
because matrix structure violates the unity of command it can lead to ..
power struggles among managers
Boundaryless Organization
- refers to an organization that eliminates traditional barriers between departments as well as barriers between the organization and the external environment.
- modular organization and strategic alliances
modular organization
a form of boundaryless organization where all the nonessential functions are outsourced
strategic alliances
A form of boundaryless design where two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial for both parties
learning organizations
An organization where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of an organization's design
organizational change
the movement of an organization from one state of affairs to another
change could be motivated by ...
- technology
- employees aging
-globalization
-market conditions
-organizational growth
-poor performance
globalization
can be either a threat or an opportunity for organizations
resistance to change is one of the top ____ reasons why change efforts fail
2
active resistance
the most negative reaction to a proposed change attempt
passive resistance
being disturbed by changes without necessarily voicing these opinions
compliance
going along with proposed changes with little enthusiasm
enthusiastic report
defenders of the new way and actually encourage others around them to give support to the change effort as well
why do people resist change?
- disrupted habits
- personality
- feelings of uncertainty
- fear of failure
- personal impact of change
- prevalence of change
- perceived loss of power
resistance to change is a valid ____________ tool that should not be ignored
feedback
3 stage model of planned changing
unfreeze, change, refreeze
unfreeze
- making sure that organizational members are ready for and receptive to change, is the first step in Lewin's suggested change model
change
- executing the planned changes, is the second phase of Lewin's change model
refreeze
The final stage of Lewin's change model, involves ensuring that change becomes permanent and the new habits, rules, or procedures become the norm
8 stage process for change
- develop a sense of urgency
- build a coalition
- create a vision for change
- communicate a plan for change
- eliminate obstacles to change
- create small wins
- build on change
- make change a part of culture
Japanese organizations centralization
-more centralized
-uses the ringi decision making system
ringi system
involves proposals at lower levels being signed and passed along to higher level management in an effort to build consensus
US and Australia organization centralization
- more decentralized
individualistic cultures attach greater importance to ____________ and ___________ freedoms
autonomy ; personal
in cultures where leaders are expected to be more authoritarian and power distant, organic structures may be (more or less) useful for motivating and managing employees
less
Germany and France are (more or less) comfortable with change
less
US and China are (more or less) comfortable with change
more
organizational culture
A system of shared assumptions, values, and beliefs indicating what is appropriate and inappropriate behavior in a given organization.
individuals tend to become more aware of their organization's culture when they have the opportunity to ...
compare it to other organizations
culture dictates what is _________ and __________ behavior as well as what is wrong and unacceptable
right ; acceptable
what kind of organizational culture gives organizations a competitive advantage?
rare and hard to imitate organizational culture
culture, or shared values within the organization may be related to _______________ _______________
increased performance
it is important to have a culture that fits with the demands of the company's _________________
environment
- ex: a tech company should have a culture that encourages innovativeness, instead of tradition and rules
three interrelated levels of organizational culture
-assumptions
-values
-artifacts
assumptions (three interrelated levels of organizational culture)
Taken for granted beliefs about human nature and reality
- below the surface
values (three interrelated levels of organizational culture)
shared principles, standards, and goals
artifacts (three interrelated levels of organizational culture)
the visible and tangible elements of culture
organizational culture profile (OCP)
culture is represented by 7 distinct values
-innovative cultures
-aggressive cultures
-outcome oriented cultures
-stable cultures
-people oriented cultures
-team oriented cultures
-detail oriented cultures
innovative cultures (OCP)
-Cultures that are flexible, adaptable, and experiment with new ideas
-ex: apple
aggressive cultures (OCP)
- Cultures that value competitiveness and outperforming competitors
- may fall short in corporate responsibility
- ex: microsoft
outcome-oriented cultures (OCP)
- Cultures that emphasize achievement, results, and action as important values
- more common to see rewards tied to performance, as opposed to seniority or loyalty
- ex: Nordstrom
research indicates that organizations that have a performance oriented culture ________________ companies that are lacking such a culture
outperform
stable cultures (OCP)
- cultures that are predictable, rule oriented, and bureaucratic
- effective by providing stable and constant levels of output
- Ex: General Motors
people oriented cultures (OCP)
- cultures that value fairness, supportiveness, and respecting individual rights
- ex: Starbucks
team oriented cultures (OCP)
- cultures that are collaborative and emphasize cooperation among employees
- ex: Southwest Airlines
detail oriented cultures (OCP)
- cultures that emphasize achievement, results, and action as important values
- emphasis on precision and paying attention to details
- ex: Hospitality industry
Service culture
- not one of the dimensions of OCP
- a culture that emphasizes high quality service
- desire to solve customer related problems proactively
- ex: Nordstrom & Southwest Airlines
safety culture
- not one of the dimensions of OCP
- a culture that emphasizes safety as a strong workplace norm
- provides a competitive advantage, because the organization can reduce accidents, maintain high levels of morale and employee retention, and increase profitability by cutting workers compensation insurance costs
strong culture
- a culture that is shared by organizational members
- strong culture may act as an asset or liability
subculture
- a set of values unique to a limited cross-section of the organization
counterculture
- shared values and beliefs that are in direct opposition to the values of the broader organizational culture
- often shaped around a charismatic leader
most important factors in the creation of an organization's culture
- founder's values
- preferences
- industry demands
founder's values
- shapes the company culture in the early days of the company
- founders instill their own strongly held beliefs or personalities in to the businesses they found
- founder's values become part of the corporate culture to the degree they help the company be successful
industry demands
- act as a force to to create similarities among organizational cultures
- shows that it may not be possible to imitate the culture of a company in a different industry
Attraction Selection Attrition (ASA)
1. Employees are attracted to organizations where they will fit in
2. Selection
3. Attrition
Selection (ASA)
prevents candidates from getting into the organization
Attrition (ASA)
the natural process in which the candidates who do not fit in will leave the company
on boarding
the process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization
- also known as organization socialization
During on boarding, new employees can be more successful by ....
seeking feedback and networking
__% of managers who start a new job fail in the new job and leave or are fired within 1.5 years
35%
sink or swim approach
new employees struggle to figure out what is expected of them and what the norms are
formal orientation program
a program that indoctrinates new employees to the company culture, and introduces them to their new jobs and colleagues
-most large organizations use this method
organizational insiders
supervisors, coworkers, and mentors
mentor
trusted people who provide employees with advice and support regarding career related matters
there is a direct correspondence between a leader's __________ and an organizations __________
style ; culture
in an organization in which high level managers make the effort to involve others in the decision making and seek opinions of others, a __________-oriented culture is more likely to evolve
team
reward systems
-shapes the company culture
-some organizations reward behaviors, while others reward results
how do you find out about a company's culture?
-mission statement
-rituals
-rules and policies
-physical layout
-stories
mission statement
a statement of purpose, describing who the company is and what it does
what makes a mission statement effective?
well known by employees, transmitted to all employees starting from their first day at work, and influences employee behavior
some mission statements represent who the company wants to be, instead of ...
who they actually are
If the mission statement does not affect employee behavior on a day-to-day basis, it has _________ usefulness as a tool for understanding the company's culture
little
rituals
repetitive activities within an organization that have symbolic meaning
-create camaraderie and a sense of belonging
rules and policies
-companies create rules to determine acceptable and unacceptable behavior, and thus the rules that exist in a company will signal the type of values it has
physical layout
-A company's building, including the layout of employee offices, common areas, and other work spaces, communicates important messages about a company's culture
stories
- A story can highlight a critical event an organization faced and the collective response to it
- or can emphasize a heroic effort of a single employee illustrating the company's values
six steps to culture change
1. create a sense of urgency
2. change leaders and other key players
3. role model
4. train
5. change the reward system
6. create new stories and symbols
creating a sense of urgency (culture change)
- explain to employees why changing the fundamental way in which business is done is so important
changing leaders and other key players (culture change)
-change often follows changes at the highest levels of the organization
-to implement change, a company may find it helpful to remove managers and other powerful employees who are acting as a barrier to change
role modeling (culture change)
the process by which employees modify their own beliefs and behaviors to reflect those of the leader
training (culture change)
-Well-crafted training programs may be instrumental in bringing about culture change by teaching employees the new norms and behavioral styles
changing the reward system (culture change)
-by rewarding employees who embrace the company's new values and even promoting these employees, organizations can make sure that changes in culture have a lasting impact
creating new symbols and stories
- By replacing the old symbols and stories, the new symbols and stories will help enable the culture change and ensure that the new values are communicated
diversity
the ways in which people are similar or different from each other
there have been many complaints filed with the Equal Employment Opportunity Commission (EEOC) regarding ___________
discrimination
benefits of diversity
-higher creativity in decision making
-better understanding of service of customers
-more satisfied employees
-higher stock prices
-lower litigation expenses
-higher company performance
higher creativity in decision making (benefits of diversity)
-In a diverse work team, people will have different opinions and perspectives
-having a diverse workforce may have a direct impact on a company's bottom line by increasing creativity in decision making
better understanding and service of customers (benefits of diversity)
A company with a diverse workforce may create products or services that appeal to a broader customer base
more satisfied workforce (benefits of diversity)
-Organizations where employees are satisfied often have lower turnover.
higher stock prices (benefits of diversity)
-Companies that do a better job of managing a diverse workforce are often rewarded in the stock market, indicating that investors use this information to judge how well a company is being managed
lower litigation expenses (benefits of diversity)
-Companies doing a particularly bad job in diversity management face costly litigations
-When an employee or a group of employees feel that the company is violating EEOC laws, they may file a complaint
higher company performance (benefits of diversity)
-Companies that manage diversity more effectively tend to outperform others
similarity attraction phenomenon
The tendency to be more attracted to individuals who are similar to us
-a study showed morphed faces were more attractive to the subject when their own face was included and morphed into the picture than a picture of a random person
similarity-attraction may __________ some highly qualified women, minorities, or persons with disabilities from being hired
prevent
surface level diversity
Traits that are highly visible to us and those around us, such as race, gender, and age
deep level diversity
diversity in values, beliefs, and attitudes
Research shows that ___________-level traits affect our interactions with other people early in our acquaintance with them, but as we get to know people, the influence of _____________-level traits is replaced by _____________-level traits such as similarity in values and attitudes
surface ; surface ; deep
faultline
an attribute along which a group is split into subgroups
-faultlines can be weak if there are many of them and if they can cross each other
Faultlines are (more or less) likely to emerge in diverse teams, but not all diverse teams have faultlines
more
Research shows that even groups that have strong faultlines can perform well if they establish certain ____________
norms
stereotypes
-generalizations about a particular group of people
-often lead to unfair and inaccurate decision making
3 pieces of legislation in the US that prohibit gender discrimination at work
- Equal Pay Act
- Title VII of The Civil Rights Act
- Lilly Ledbetter Fair Pay Act
the median earnings of women who worked full time in 2014 was ___% of men working full time
81
research shows that men and women have somewhat different preferences in job _________________
attributes
-women value characteristics such as good hours, an easy commute, interpersonal relationships, helping others and opportunities to make friends more than men do
what is a potential reason for the earnings gap?
negotiation differences between men and women
women are more than ____ times more likely than men to perceive gender based discrimination in the workplace
12
glass ceiling
-The situation that some qualified employees are prevented from advancing to higher level positions due to factors such as discrimination
- Glass ceiling is often encountered by women and minorities
why does google remove all names from the resumes they screen until they have decided which applicants to pursue?
- to avoid any potential bias introduced into the decision-making process based on non-job relevant factors such as gender, age, race, or origin
By 2015, those who are age 55 and older are estimated to constitute ____% of the workforce in the United States
20
positive workplace behaviors correlated with age
- volunteering
- higher compliance with safety rules
- lower work injuries
- lower counterproductive behaviors
- lower rates of tardiness or absenteeism
a review of a large number of studies showed that those between 17 and 29 years of age tend to rate older employees more ________________, while younger employees were viewed as more _________________
negatively ; qualified
why does religious discrimination often occur?
religion necessitates modifying the employee's schedule
- these situations pit employers concerns for productivity agains employees desires to fulfill religious obligations
The Americans with Disabilities Act of 1990 (ADA)
- prohibits discrimination in employment against individuals with physical as well as mental disabilities if these individuals are otherwise qualified to do their jobs with or without reasonable accommodation
there is currently no federal law in the US prohibiting discrimination based on ________________________
sexual orientation
up to ______ of lesbian, gay, and bisexual employees do not disclose their sexual orientation at work
1/3
affirmative action
policies designed to recruit, promote, train, and retain employees belonging to a protected class
Affirmative action programs are among the most _________________ methods in diversity management because some people believe that they lead to an unfair advantage for minority members
controversial
4 programs that can be viewed as part of affirmative action programs
1. simple elimination of discrimination
2. targeted recruitment
3. tie breaker
4. preferential treatment
culture
the values, beliefs, and customs that exist in a society
expatriate
someone who is temporarily assigned to a position in a foreign country
individualistic cultures
cultures in which people define themselves as individuals and form looser ties with their groups
- US, UK, and Australia
collective cultures
cultures where people have strong bonds to their groups, and group membership forms a person's self identity
-family bonds are more influential in people's daily lives
- China, Japan, and Latin America
power distance
-The degree to which the society views an unequal distribution of power as acceptable
in low power distance cultures, _____________ is the norm
egalitarianism
high power distance cultures are ______________ cultures where everyone has their place
hierarchical
examples of high power distance countries
-thailand
-turkey
uncertainty avoidance
The degree to which people feel threatened by ambiguous, risky, or unstructured situations
cultures high in uncertainty avoidance prefer ____________ situations and have _____________ tolerance for ambiguity
predictable ; low
countries with high uncertainty avoidance
- Germany
- Greece
countries with low uncertainty avoidance
- Iran
- Russia
masculine (aggressive) cultures
Cultures that value achievement, competitiveness, and acquisition of money and other material objects
- Japan and Hungary
feminine (nurturing) cultures
Cultures that value maintaining good relationships, caring for the weak, and emphasizing quality of life
- Sweden and the Netherlands
cultural intelligence
-A person's capability to understand how a person's cultural background influences one's behavior
Ethnocentrism
The belief that one's own culture is superior to other cultures
- you want to avoid this
ignoring cultural differences, norms, and local habits may be ___________ for businesses and may lead to _______________ and _________________ employees
costly ; unmotivated ; dissatisfied
When doing cross-cultural business, ____________ are a key source of information
locals
cultures are not __________ , they evolve over the years
static
Studies indicate that men and women, as well as younger and older employees, differ in the types of behaviors they view as _________________
ethical
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