MAN 3025 Exam 2 (Modules 6-9)

What three factors work in alignment to support strategic implementation?

1. Organizational culture

2. Organizational structure

3. HR practices

organizational culture

The shared assumptions that affect how work gets done

organizational structure

Formal system of task and reporting relationships

HR practices

All of the activities an organization uses to manage its human capital

3 Levels of Organizational Culture

1. Observable artifacts

2. Espoused values

3. Basic assumptions

observable artifacts

Physical manifestations of culture

espoused values

Explicitly stated values and norms preferred by an organization

enacted values

Values and norms actually exhibited in the organization

basic assumptions

Core values of the organization

How employees learn culture

• Symbols

• Stories

• Heroes

• Rites and rituals

• Organizational socialization

hero

A person whose accomplishments embody the values of the organization

rites and rituals

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in organizational life

organizational socialization

The process by which people learn the values, norms, and required behaviors to be a member of an organization

4 Types of Organizational Culture

1. Clan

2. Adhocracy

3. Market

4. Hierarchy

CVF horizontal dimension

Inward or outward focus?

Internal dynamics and employees (internal focus and integration) vs external environment and customers and shareholders (external focus and differentiation)

CVF vertical dimension

Flexibility or stability?

Decentralized decision making (flexibility and discretion) vs Centralized authority (stability and control)

clan culture

Internal focus and values flexibility rather than stability and control

adhocracy culture

External focus and values flexibility

market culture

Strong external focus and values stability and control

hierarchy culture

Internal focus and values stability and control over flexibility

person-organization (PO) fit

Extent to which your personality and values match the climate and culture in an organization

12 Levers for Organizational Culture Change

1. Formal statements

2. Slogans and sayings

3. Rites and rituals

4. Stories, legends, and myths

5. Leader reactions to crises

6. Role modeling, training, and coaching

7. Physical design

8. Rewards, titles, promotions, and bonuses

9. Organizational goals and performance criteria

10. Measurable and controllable activities

11. Organizational structure

12. Organizational systems and procedures

organization

A group of people who work together to achieve some specific purpose

7 Major Features of Organizations

1. Common purpose

2. Coordinated effort

3. Division of labor

4. Hierarchy of authority

5. Span of control

6. Authority—accountability, responsibility, and delegation

7. Centralization versus decentralization of authority

4 Features of Organizations Proposed by Schein

1. Common purpose

2. Coordinated effort

3. Division of labor

4. Hierarchy of authority

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 organizationwide effort

division of labor

Work specialization; the arrangement of having discrete parts of a task done by different people

hierarchy of authority

Chain of command; control mechanism for making sure the right people do the right things at the right time

flat organization

Organizational structure with few or no levels of middle management between top managers and those reporting to them

unity of command

Principle that an employee should report to no more than one manager to avoid conflicting priorities and demands

span of control

The number of people reporting directly to a given manager; narrow (or tall) and wide (or flat)

authority

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

accountability

Managers must report and justify work results to the managers above them

responsibility

The obligation one has to perform the assigned tasks

delegation

Process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

centralized authority

Important decisions are made by higher-level managers

decentralized authority

Important decisions are made by middle-level and supervisory-level managers

organization chart

Box and line illustration showing the formal lines of authority and the organization’s official positions or work specializations

8 Types of Organizational Structures

1. Simple

2. Functional

3. Divisional

4. Matrix

5. Horizontal

6. Hollow

7. Modular

8. Virtual

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 so that there are two command structures—vertical and horizontal

horizontal structure

Also called team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries

boundaryless organization

A fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks

Includes hollow, modular, and virtual structures

hollow structure

Network structure; the organization has a central core of key functions and outsources other functions to vendors

modular structure

A firm assembles product chunks, or modules, provided by outside contractors

virtual structure

An organization whose members are geographically apart and connected through the internet and remote work software

6 Supertrends shaping the future of business

1. The marketplace is becoming more segmented and moving toward more niche products

2. More competitors are offering targeted products, requiring faster speed-to-market

3. Some traditional companies may not survive radical change

4. Offshore suppliers are changing the way we work

5. Knowledge, not information, is becoming the new competitive advantage

6. Employment landscape is shifting

reactive change

Change in response to problems or opportunities as they arise

proactive change

Planned change; making carefully thought-out changes in anticipation of possible or expected problems or opportunities

Forces for change outside and inside the organization

4 Outside Forces for Change

1. Demographic characteristics

2. Technological advancements

3. Shareholder, customer, and broader stakeholder concerns

4. Social and political pressures

2 Inside Forces for Change

1. Human resource concerns

2. Managers’ behavior

3 Forms of Change

1. Adaptive change (least threatening)

2. Innovative change (somewhat threatening)

3. Radically innovative change (very threatening)

adaptive change

The reintroduction of a familiar practice

• easiest to implement successfully

• least threatening to employees

innovative change

The introduction of a practice that is new to the organization

• moderately difficult to implement

• somewhat threatening to employees

radically innovative change

Introduces a practice that is new to the industry

• very difficult to implement

• highly threatening to employees

Lewin’s Change Model

Unfreezing - create the motivation to change

Changing - learn the new ways of doing things

Refreezing - support and reinforce the change

Systems Approach to Change

Change creates additional change

Consists of three parts:

1. Inputs

2. Target elements of change

3. Outputs

Feedback loop

force-field analysis

Technique to determine which forces could facilitate a proposed change and which forces could act against it

organizational development (OD)

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

3 Uses for OD

1. Improving individual, team, and organizational performance

2. Transforming organizations

3. Adapting to mergers

3 Steps of the OD Process

1. Diagnosis what is the problem?

2. Intervention what shall we do about it?

3. Evaluation how well has the intervention worked?

Feedback loop

4 factors that make OD successful

1. Multiple interventions

2. Top managers support the OD program

3. Goals are chosen wisely

4. Change agents understand how culture affects OD

Approaches to Innovation

Classified by crossing the type of innovation (product or process) with the focus of innovation (improvement or new-directions)

product innovation

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

process innovation

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

improvement innovations

Enhance or upgrade an existing product, service, or process

new-direction innovations

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

innovation system

A set of mutually reinforcing structures, processes, and practices that drive an organization’s choices around innovation and its ability to innovate successfully

7 Components of an Innovation System

1. Innovation strategy

2. Committed leadership

3. Innovative culture and climate

4. Required structure and processes

5. Necessary human capital

6. Human resource policies, practices, and procedures

7. Appropriate resources

innovation strategy

A plan for being more innovative that requires a company to integrate its innovation activities into its business strategies

crowdsourcing

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people typically via the internet

resistance to change

An emotional/behavioral response to real or imagined threats to an established work routine

3 Causes for Resistance to Change

1. Employee characteristics

2. Change agent characteristics

3. The change-agent employee relationship

10 Reasons Employees Resist Change

1. Individuals’ predisposition toward change

2. Surprise and fear of the unknown

3. Climate of mistrust

4. Fear of failure

5. Loss of status or job security

6. Peer pressure

7. Disruption of cultural traditions or group relationships

8. Personality conflicts

9. Lack of tact or poor timing

10. Nonreinforcing reward systems

self-affirmations

Positive statements that impact your subconscious mind by drawing attention to your values and positive attributes and away from negative self-perceptions

human resource management (HRM)

The process of planning for, attracting, developing, and retaining an effective workforce

5 Human Resource Practices

1. Recruitment and selection

2. Compensation and benefits

3. Onboarding and L&D

4. Performance management

5. Employee relations

strategic human resource management

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

HRM vs. Strategic HRM

HRM is about managing people

Strategic HRM is about generating competitive advantages through people

internal fit

When all of the organization’s HR policies and practices reinforce one another

external fit

When the organization’s HR system as a whole aligns with its culture and structure in a way that supports firm-level strategy

human capital

The economic or productive potential of employee knowledge, experience, and actions

social capital

The economic or productive potential of strong, trusting, and cooperative relationships

Strategic HRM approaches

1. Talent management

2. High-performance work systems

talent management

strategic HRM approach that matches high-potential employees with an organization’s most strategically valuable positions

high-performance work system (HPWS)

strategic HRM approach that deploys bundles of internally consistent HR practices in order to improve employee ability, motivation, and opportunities across the organization

recruiting

The process of locating and attracting qualified applicants for job openings

internal recruiting

Hiring from the inside, or making people already employed by the organization aware of job openings

external recruiting

Attracting job applicants from outside the organization

talent marketplaces

Digital platforms that use AI to match existing employees with job openings, training opportunities, and mentoring relationships

employee referrals

Tap into existing employees’ social networks to fill open positions with outside applicants

boomerangs

Former employees who return to the organization

person-job fit

Extent to which a worker’s competencies and needs match a specific job

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 bias free way

reliability

Represents the degree to which a test produces consistent scores