Strategic Management, Organizational Culture, HRM

Flashcards for review.

PESTEL Analysis

A strategic planning tool to analyze macro opportunities and threats, covering political, economic, social, technological, environmental, and legal factors.

VRIO Framework

A framework used to test if a resource or capability will give a company a long-term competitive advantage by assessing value, rarity, imitability, and organization.

Corporate-Level Strategy

What industries or markets should we compete in?

Business-Level Strategy

How will we compete successfully in this market?

Functional-Level Strategy

How do we support the business strategy through daily operations?

SWOT Analysis

Internal strengths and weaknesses and external opportunities and threats of a business.

Growth Strategy

Expand — more revenue, customers, products, markets.

Stability Strategy

Keep doing what works. Avoid risks or big changes.

Defensive (Retrenchment) Strategy

Shrink or protect what’s left. Used when facing losses.

Threat of New Entrants

Easy to enter = more competition

Bargaining Power of Suppliers

Few suppliers = they can raise prices

Bargaining Power of Buyers

More alternatives = buyers are in control

Threat of Substitutes

Can customers switch to something else?

Rivalry Among Existing Competitors

Many firms, slow growth = fierce rivalry

Cost Leadership

Sell to a wide market at the lowest cost

Differentiation

Offer unique value across a broad market

Cost Focus

Serve a niche market with low prices

Focused Differentiation

Serve a niche market with luxury/unique value

Observable Artifact

Physical Manifestations of Culture

Espoused Values

Explicitly Stated Values and Norms

Basic Assumptions

Core Values of the Organization

Clan Culture

An Employee-Focused Culture, Valuing Flexibility

Adhocracy Culture

A Risk-Taking Culture, Valuing Flexibility

Market Culture

A Competitive Culture, Valuing Profits over Employee Satisfaction

Hierarchy Culture

A Structured Culture, Valuing Stability and Effectiveness

Symbols

object, an act, a quality, or event that conveys meaning to others.

Stories

narrative based on true events repeated—and sometimes embellished upon—to emphasize a particular value

Heroes

person whose accomplishments embody the values of the organization

Rites and Rituals

activities and ceremonies that celebrate important occasions and accomplishment

Organizational Socialization

the process by which new employees learn the values, norms, and required behaviors of an organization

Common Purpose

unifies employees or members and gives everyone an understanding of the organization’s reason for being.

Coordinated Effort

the coordination of individual efforts into a group or organization wide effort.

Division of Labor

The arrangement of having discrete parts of a task done by different people.

Hierarchy of Authority

a control mechanism for making sure the right people do the right things at the right time

Unity of Command

an employee should report to no more than one manager in order to avoid conflicting priorities and demands.

Span of Control

refers to the number of people reporting directly to a given manager.

Authority

rights inherent in a managerial position to make decisions, give orders, and utilize resources

Centralized authority

decisions at higher levels of management

Decentralized authority

decisions by middle- and supervisory-level manager

Organizational Structure

A formal system of task and reporting relationships that coordinates and motivates an organization’s members so that they can work together to achieve the organization’s goals.

Simple Structure

authority centralized in a single person, a flat hierarchy, few rules, and low work specialization

Functional Structure

People with similar occupational specialties are put together in formal groups

Divisional Structure

People with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.

Matrix Structure

Combines functional and divisional chains of command in a grid

Horizontal Design

Teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries.

Hollow Structure

The organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster.

Modular Structure

Outsourcing pieces of a Product to Outside Firms

Virtual Structure

employees are geographically spread apart, usually co-working through remote working software such as Slack, Zoom, and Microsoft Teams.

Proactive Change (Planned Change)

Involves making carefully thought-out changes in anticipation of possible or expected problems.

Reactive Change

Making changes in response to problems or opportunities as they arise.

Adaptive Change (Least Threatening)

Reintroduction of a familiar practice– the implementation of a form of change that has already been experienced within the same organization.

Innovative Change (Somewhat Threatening)

Introduction of a practice that is new to the organization

Radically Innovative Change (Very Threatening)

Involves introducing a practice that is new to the industry

Unfreezing

Create motivation to change

Changing

New information models and procedures

Refreezing

Support and reinforce the change

Resistance to change

TEN REASONS EMPLOYEES RESIST

Organizational Development

a set of techniques for implementing planned change to make people and organizations more effective

Innovation

occurs when a new solution to an existing problem is valuable enough that consumers are willing to pay for it

Product Innovation

Change in the appearance or performance/functionality of a product or a service or the creation of a new one

Process Innovation

Change in the way a product or a service is conceived, manufactured, or disseminated

Improvement Innovations

enhance or upgrade an existing product, service, or process

New-Direction Innovations

are a totally new or different approach to a product, service, process or industry

Innovation Strategy

plan for being more innovative, requires a company to integrate its innovation activities into its business strategy

Inertia

an organization’s resistance to making the strategic changes necessary to remain competitive in a changing environment.

Human Capital

the productive potential of an individual’s knowledge and actions

Human Resource Management

consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce.

Strategic Human Resource Management

is the process of designing and implementing systems of policies and practices that align an organization’s human capital with its strategic objectives.

External Fit

HR system is aligned with org. culture/structure and strategy

Internal Fit

All individual policies/practices within HR reinforce each other

Talent Management

matches high-potential employees with an organization’s most strategically valuable positions

High-Performance Work System

deploys bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities across the entire organization.

Recruiting

the process of locating and attracting qualified applicants for job openings.

Internal Recruiting

hiring from the inside

External Recruiting

hiring from the outside

Selection

the process of screening job applicants and choosing the best candidate for a position

Legal Defensibility

the extent to which the selection device measures job-related criteria in a way that is free from bias.

Reliability

the degree to which a test produces consistent scores.

Validity

the degree to which a test measures what it purports to measure

Unstructured Interviews

gather information about candidates without the use of a fixed set of questions or a systematic scoring procedure

Structured Interview

asking each applicant the same questions

Situational Interviews

raters ask applicants who they would behave in hypothetical job situations

Behavioral-Description Interviews

raters explore applicant’s job-related past behaviors

Base pay

Basic wage or salary paid employees in exchange for doing their job.

Incentives

Commissions, bonuses, profit-sharing plans, and stock options

Benefits

Health insurance, dental insurance, life insurance, disability protection, retirement plans, holidays off, sick days and vacation days, recreation options, health club memberships, family leave, discounts

Onboarding

consists of the programs designed to integrate and transition employees into new jobs and organizations through familiarization with corporate policies, procedures, cultures and politics, and clarification of work-role expectations and responsibilities.

Orientation

a one-time event, often on the new hire's first day, that provides an overview of the company and its culture

Based on a manager’s perceptions of an employee’s traits and behaviors

Subjective appraisal

Objective Appraisal

Based on facts and often numerical.

Prohibits discrimination on basis of race, color, religion, national origin, sex, or sexual orientation.

amended 1972 Civil Rights Act, Title VII.

Family & Medical Leave Act

Requires employers to provide 12 weeks of unpaid leave for medical and family reasons, including for childbirth, adoption, or family emergency

Health Insurance Portability & Accountability Act

prohibits group plans from dropping ill employees