Studied by 3 people
Organization
Consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal.
Organizational Behavior
The systematic study and application of knowledge about how individuals and groups act within the organizations where they work
The two dimensions of personnel selection
Likability and Competence
Lovable Star > Lovable Fool > Competent Jerk > Incompetent Jerk
PESTLE
Political, Economic, Sociocultural, Technological, Legal, Environmental
Internal Analysis (7 S’s)
Strategy, Structure, System, Style, Staff, Skills, Shared Value
Departmentalization
Basis on which jobs are grouped together for the purpose \n of coordination, i.e. Product, Geographically, Customer
Functional Structure
\n A functional structure groups jobs based on similarity in functions.
Benefits of a Functional Structure
Good coordination within functions
Efficient use of resources
Provide in-depth skill development and clear career progress for individuals
Use when:
Stable, certain industry environment
Small number of business offerings
Small-to-medium sized organizations
Little interdependencies between functions
Downsides of a Functional Structure
Downsides of Functional Structures:
High risk of the “silo” effect
Poor intergroup coordination
Narrow strategic focus within functional groups
Homogeneous network for individuals
Divisional Structure
A divisional structure groups jobs based on products, customers, services, or geographic locations
Benefits of a Divisional Structure
Good coordination between functions within a division
More customer/product oriented
Diverse network for individuals
Use When:
Unstable, uncertain industry environment
Multiple offerings
Large-sized organizations
High interdependence between functions
Goals of product/customer/geographic specialization or innovation
Downsides of a Divisional Structure
Duplication of Resources
Less Technical Specialization or Expertise Development
Poor coordination across different departments
Formalization
The extent to which policies, procedures, job descriptions, and \n rules are written and explicitly articulated
Benefits of High Levels of Formalization
Clear and standardized procedures
Predictable behaviors
Little ambiguity for stakeholders
Use When:
High stakes jobs (military)
Employees are uncertainty-averse
Downsides of High Levels of Formalization
Stifles creativity
Reactive to internal shocks
Slow decision making
Benefits of Low Levels of Formalization
Room for flexibility
Promotes creativity
Faster decision-making
Use when:
Organization values innovation
Employees embrace uncertainty
Span of Control
The number of employees reporting to a given manager
Narrow Span Benefits
Better supervision and monitoring
Close control
More managerial positions and advancement opportunities
Use when:
The task is complex
There are many locations
Downsides of Narrow Span
Discourage autonomy
Excessive distance between top and bottom levels
Fosters silos
Wide Span Benefits
Greater freedom for employees
Sense of self-actualization
Faster communication and decision making
Use when:
The manager is capable
Employees are motivated and capable
Downsides to Wide Span
Little close supervision
Fewer opportunities for guidance
High managerial workload
Fewer managerial positions
Centralization
The degree to which decision-making authority is concentrated at higher levels in an organization
Benefits of Centralization
Clear line of communication & responsibility
Straightforward implementation
Use when:
Then environment is stable
Decisions are significant
The organization is in a crisis
Downsides of Centralization
Can lead to ill-informed decisions
Lack of buy-in for implementation
Benefits of Decentralization
Sense of empowerment
Procedural fairness
Faster process for minor decisions
Appropriate when:
The environment is dynamic
Decisions are minor
Lower-level employees are capable and experienced decision makers
Downsides to Decentralization
Requires accountability & capability from lower-level employees
Competing Objectives
Silo Effect
A silo is a natural by-product of organizational structure when groups of \n organizational members, separated by department, specialization, or location, work in a vacuum of one another leading to:
Lack of communication between groups
Throw it over the wall, diffused responsibility
Prioritization of group goals
Unproductive competition
Matrix Structure
A type of hybrid design that cross a functional structure with divisional structure by having teams but also having employees reporting to managers within functions
Advantages of Matrix Design
Highly Responsive
Integration of Knowledge
Quick Responses to technical problems and customer demands
Increased communication and cooperation between departments
Disadvantages of Matrix Design
Decision rights confusion
Resource allocation confusion
Power struggles and conflict
Can potentially create role ambiguity and role conflict
When do companies evolve?
When size increases
Effectiveness of simple structures drops
Cultural fit changes
Leader change
Organizational Design Priority
Goals > Configure Structural Elements > Refine design for the industry
Is change required?
Evaluate:
Quality of communication and collaboration
The Capacity to adapt
The balance of power between groups
Organizational Barriers to Change (6)
Structural Inertia
Embedded attitude and routine
Threat to established power
Threat to resource allocation
Lack of vision or goals
Unclear communication to employees
Individual Barriers to Change (4)
Self interest
Personality
Lack of clear understanding of the change
Lack of trust
Kotter’s Model of Change
Establish opportunities and urgency
Form a change team
Create a specific shared vision
Enlist people in the org
Empower through removed barriers
Generate measurable action
Sustain change through monitoring
Institute link between new behaviors and success
What are common pitfalls of group interaction?
Pitfall 1: When a team does not share clear goals or strategies for goal achievement
Pitfall 2: Decision making mistakes are made
Pitfall 3: Expertise is not fully utilized
What are the three skills required for synergistic team performance?
Rational skills, task skills, and interpersonal skills
What are some distinguishing factors of a team?
Shared leadership
Mutual Accountability
Common Purpose
Complimentary Skills
Shared Goals
Clear Workflow
Four Qualities of Diversity
Social Categories, Expertise and Skills, Personality, Values and Beliefs
Benefits of a Diverse Team
Broad range of knowledge
Reduces Groupthink
Important for complex decision making or creativity
Groupthink
A psychological phenomenon where people make irrational or sub-optimal decisions so as to maintain conformity or harmony within a group
Consequences of Fault-lines
Rise to in-groups and out-groups
Decreased group cohesion
Increased intergroup conflict
Favored treatment
Diversity Training
Deliberate efforts to reduce bias and increase social diversity, but have little long lasting impact. Shame leads to avoidance rather than corrective action
How to manage a diverse team through leadership style?
Start with task orientation, then switch to relationship orientation
Framework for Team Design
Evaluate needs (current complementary skills)
Optimize Diversity (characteristics)
Set the Stage (Establish shared goals and workflow)
Five Distinct Principles of Developing Shared Goals
Clarity, Challenge, Commitment, Task Complexity, Feedback
Pooling
Work process where groups specialize in subtask rather than collaborating, good for when there are clear goals and a stable environment
Sequential
Work process where groups work on one thing before handing it sequentially to the next group, efficient in stable environments, but can cause silos
Reciprocal
Work process where work can flow in between groups, good for when the task is complex and the environment is dynamic
Centralization (Group Decision Making)
Decision making process where higher ups hold much of the control; is good for fast decisions but can be ill informed, as well as have a lack of buy in
Nominal Group Technique
Decision making process where each member of a group independently write their own thoughts before everyone shares in order, after which each idea is discussed and ranked anonymously
Intrinsic Rewards
Reward based on interest and enjoyment in the task itself
Extrinsic Rewards
Reward based on the outcome that will result by doing the task
Effort > Performance Expectancy Factors
The more people believe that their effort will result in high performance, the more likely they are going to start the task and put in effort
Task Nature
Goal Clarity
Employee Ability
Employee Confidence
Past Performance
Performance > Outcome Instrumentality Factors
The more people believe that high performance will bring about rewards, the more motivated they are to perform
Clarity
Alignment
Trust
Fairness
Rewards > Personal Needs Valence Factors
The more meaningful or valuable the rewards are to the individuals, the more motivated they are to perform
Reward Attractiveness
Reward Worth
Extrinsic Downsides
Lack of boost in low performance culture
Can lead to unethical behavior
Can become a psychological burden
Narrows problem solving view
Equity Theory
Employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others
Four Factors of Fairness Perception
Distributive Justice
Process Justice
Informational Justice
Interactional Justice
Evaluation Feedback v. Developmental Feedback
Evaluation feedback affirms strengths while pointing out weaknesses and assesses future possibilities
Developmental feedback creates actions to change or reinforce inputs or outputs, or develops plans for training with goals
Effective Performance Feedback
Create measurable criteria, specific expectations
Be open minded
Create future goals with a clear performance reward link
If output/input<output/input
Negative Inequity which leads to demotivation
If output/input=output/input
Fairness, leading to satisfaction and motivation
If output/input>output/input
Positive Inequity, results depend on equity sensitivity
Intrinsically Motivating Jobs Involve
Sense of Achievement, Purpose, and Affiliation
Job Characteristics Model relies on
Motivating Potential Score=
[Skill Variety + Task Identity + Task significance / 3] x Autonomy x Feedback
Skill Variety
The extent to which the job requires a person to utilize multiple high-level skills, need challenge and job rotation
Task Identity
The degree to which a person is in charge of completing an identifiable piece of work from beginning to end, should be involved in entire process
Task Significance
The degree to which the job has a substantial impact on the lives of other people, giving people more meaning in their work
Autonomy
The degree to which a person has the freedom to decide how to perform his or her tasks, which can be effected by formalization and span of control
Feedback
The degree to which people learn how effective they are at work
Task Crafting
Reconfiguring your job to be more fulfilling
Relational Crafting
Changing the nature of the interaction with others at work
Cognitive Crafting
How can you reframe your mindset or perspectives about the purpose of aspects of your job
Organizational Culture
A system of shared assumptions, values and beliefs that show employees what is appropriate and inappropriate behavior
Three Tiers of Culture
Artifacts: tangible aspects
Values: shared principles
Basic Underlying Assumptions: beliefs
Note
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