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Chapter 11 (strat)
Terms in this set (28)
concerns the organization, coordination, and integration of how work gets done. It is key to gaining and sustaining competitive advantage.
is the process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization.
a firm's resistance to change the status quo
determines how the work efforts of individuals and teams are orchestrated and how resources are distributed. In particular, an organizational structure defines how jobs and tasks are divided and integrated,
4 building blocks of orgnanizational structure
specialization, formalization, centralization, and hierarchy.
describes the degree to which a task is divided into separate jobs—that is, the division of labor.
captures the extent to which employee behavior is steered by explicit and codified rules and procedures. These structures are characterized by detailed written rules and policies of what to do in specific situations.
refers to the degree to which decision making is concentrated at the top of the organization. Centralized decision making often correlates with slow response time and reduced customer satisfaction.
(zappos is opposite lower-level employees can solve problems)
determines the formal, position-based reporting lines and thus stipulates who reports to whom.
Such organizations have a low degree of specialization and formalization, a flat organizational structure, and decentralized decision making.
(zappos and W.L gore)
are characterized by a high degree of specialization and formalization, and a tall hierarchy that relies on centralized decision making.
generally is used by small firms with low organizational complex-ity. In such firms, the founders tend to make all the important strategic decisions and run the day-to-day operations.
(facebook when it was small and just run by zuckerberg)
which groups employees into distinct functional areas based on domain expertise. These func-tional areas often correspond to distinct stages in the company value chain such as R&D, engineering and manufacturing, and marketing and sales,
applying current knowledge to enhance firm performance in the short term
searching for new knowledge that may enhance future performance.
consists of several distinct strategic business units (SBUs), each with its own profit-and-loss (P&L) responsibility. Each SBU is operated more or less independently from one another, and each is led by a CEO
(ex. Zappos is an SBU under Amazon)
Organizational structure that combines the functional structure with the Multidivisional structure
describes the collectively shared values and norms of an organization's members.
define appropriate employee attitudes and behaviors.
define what is considered important
a process whereby employees internalize an organization's values and norms through immersion in its day-to-day operations.
expression of corporate culture in elements such as the design and layout of physical space (e.g., cubicles or private offices); symbols (e.g., the type of clothing worn by employees);
company founders define and shape an organization's culture, which can persist for many decades after their departure.
a situation in which opinions coalesce around a leader without individuals critically evaluating and challenging that leader's opinions and assumptions.
A former core competency that turned into a liability because the firm has failed to hone, refine, and upgrade the competency as the environment changed.
strategic control and reward systems
are internal-governance mechanisms put in place to align the incentives of principals (shareholders) and agents (employees).
seek to define and direct employee behavior through a set of explicit, codified rules and standard operating procedures. Firms use these when the goal is to define the ways and means to reach a strategic goal and to ensure a predictable outcome.
seek to guide employee behavior by defining expected results , but leave the means to those results open to individual employees, groups, or SBUs. Firms frequently tie employee compensation and rewards to predetermined goals, such as a spe-cific sales target or return on invested capital.
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