MGT final-Assesment ONE

Corperate social responsiblity

a company’s responsibility to operate ethically while considering its impact on society, employees, customers, and the environment

ex: pategonia donating profits to enviornmental causes and using sustainable materials

Shareholder model

the idea that a business’s main responsibility is to maximize profits for shareholders/owners

ex: a company cutting costs mainly to increase investor returns

stakeholder model

organizations are responsible to all stakeholders affected by the company, not just shareholders

ex: a business increasing wages and improving sustainability even if profits decrease slightly

shareholder vs stakeholder model

• Shareholder model: “Make the most profit possible.”

• Stakeholder model: “Make profit, but also treat people and society responsibly.”

Carrolls pyramid of CSR

a model showing 4 levels of corporate responsibility: economic, legal, ethical, and philanthropic

• Economic = make profit

• Legal = obey laws

• Ethical = do what is right

• Philanthropic = donate to charity

PEEL

Philnathropic

Ethical

Economic

Legal

ESG

environmental, social, and governance standards used to evaluate a company’s ethical and sustainability practices

ex: investors preferring companies with low pollution and ethical leadership

strategic management process (5 steps)

the process of setting goals, analyzing the environment, creating strategies, implementing them, and evaluating results.

• 1. Mission/Vision

• 2. Environmental analysis

• 3. Objectives

• 4. Strategy formulation

• 5.Implementation
  Key idea: Continuous cycle, not one-time process.

ex: a company researching competitors before launching a new product

Determinants/Causes of Organizational Structure

factors that influence what structure works best for an organization

1. strategy

2. size

3. technology

4. environment

5. institutional forces
   ex: large companies often need more formalized structures

PEST/PESTLE

“What outside stuff could affect this business that the business can’t control?”

A company doesn’t operate in a bubble. It gets affected by:

• Politics (P) → what the government does
  Example: new taxes or laws

• Economy (E) → money conditions
  Example: inflation makes prices higher, so people buy less

• Social (S) → people’s habits and culture
  Example: more people wanting healthy food

• Technology (T) → new inventions
  Example: AI replacing jobs or speeding up work

• Legal (L) → laws companies must follow
  Example: labor laws, safety rules

• Environment (E) → nature/climate concerns
  Example: pressure to reduce pollution or use less plastic

Porters 5 Forces

A tool used to understand how competitive an industry is and how profitable it can be by looking at 5 outside pressures on a company.

• Rivalry (competition) – How many competitors are fighting in the industry
  Example: Many coffee shops in one city = high rivalry

• New Entrants – How easy it is for new companies to enter
  Example: Easy to open a small café = more competition

• Supplier Power – How much control suppliers have over price
  Example: Only one supplier for coffee beans → they can charge more

• Buyer Power – How much control customers have
  Example: Customers can easily switch to another brand → they have power

• Substitutes – Other products that can replace yours
  Example: Tea or energy drinks replacing coffee

Porters 5 Forces explained

If all 5 forces are strong →
👉 harder to make money (low profit industry)

If they are weak →
👉 easier to make profit

SWOT Analysis

A tool used to evaluate a company’s internal factors and external environment to understand its position and plan strategy.

• Strengths (internal, positive)
  What the company does well
  Example: strong brand, loyal customers

• Weaknesses (internal, negative)
  What the company lacks or does poorly
  Example: high costs, weak marketing

• Opportunities (external, positive)
  Outside trends the company can take advantage of
  Example: growing demand for eco-friendly products

• Threats (external, negative)
  Outside risks that could hurt the company
  Example: strong competitors, new regulations

S+W= inside the company

O+T= outside the company

Example:

A clothing brand:

• S: strong brand recognition

• W: expensive production costs

• O: trend toward sustainable fashion

• T: lots of fast-fashion competitors

organizational structure

the formal arrangement of jobs, responsibilities, and communication within an organization

ex: a hospital separating departments into nursing, surgery, and administration

mechanistic structure

a rigid, highly formalized strucure with centralized decision-making.

ex: a fast food chain with strict rules and procedures that are the same at every franchise

organic structure

a flexible structure with decentralized decision-making and open comunication

ex: a startup restaruant where employees collabroate freely

matrix structure

a structure where employees report to more than one manager

ex: an employee reporting to both a marketing manager and a project manager

6 elements of organizational structure

1. work specialization (dividing jobs into specific tasks)

2. departmentalization (grouping jobs by function, product, and location)

3. chain of command (who reports to whom in the organization)

4. span of control (number of employees a manager supervises)

5. centralization/decentralization (where decision making authority is located)

6. formalization (how much rules and procedures guide employee behavior)

Bureaucracy

a highly structured organization with many rules, procedures, and levels of authority

ex: government agencies with strict processes and paperwork

Organizational culture

shared values, beliefs, and assumptions that guide behavior in an organization

ex: a company emphasizing teamwork and innovation

organizational climate

employees shared perceptions of the work enviornment

ex: employees collectively thinking a workplace is stressful and unsupportive

How is culture learned

Learned through:

• Stories

• Rituals

• Symbols

• Language
  Example: Founder stories shaping work ethic.

strong culture

a culture where employees strongly agree with and follow organizational values

ex: employees at disney consistently prioritizing customer experience

weak culture

a culture where values are unclear or unconsistently followed

ex: different departments of the same business behaving completely different

Scheins 3 Levels of Culture (BAE)

1. artifacts (visible symbols)

2. espoused values (stated beliefs)

3. basic assumptions (unconsious beliefs)

examples

1. artifacts (dress code)

2. espoused values ( “teamwork matters”)

3. basic assumptions (employees should always help customers)

functions of culture

culture gives employee identity, creates commitment, promotes stability, and shapes behavior

ex: company traditions helping employees feel connected

4 types of organizational culture

1. Clan (friendly family like workplace)

2. Adhocracy (flexible, creative, innovation focused, values risk taking) (common in startup companies)

3. Market (competitive, result drive, focused on goals, profit, and winning)

4. Hierarchy cultures (structured, controlled workplace with clear rules and levels of authority)

7 Culture Characteristics

Based on how much the company values each one

• Innovation

• Attention to detail

• Outcome orientation

• People orientation

• Team orientation

• Aggressiveness

• Stability
  Example: Startup = high innovation, low stability.

Rites and Rituals-

Repeated activities that reinforce organizational culture

ex: employees recognition ceremonies or company retreats

person fit organization

how well an employees values and personality match the organizations culture

ex: a creative employee thriving at an innovative tech startup

culture-strategy fit

the alignment between organizational culture and business strategy

ex: an innovation strategy working best with a flexible, creative culture

Schneiders ASA Framework

attention-selection-attrition model explaining how organizations maintain culture.

• Organizations keep their culture by attracting, hiring, and retaining people who fit, while those who don’t fit tend to leave over time.

• Attraction: People who share the company’s values are drawn to it.

• Selection: The company hires candidates who match its culture.

• Attrition: Employees who don’t fit eventually leave (quit or get pushed out).

Socialization

The process of helping employees learn organizational culture and expectations

ex: orientation for new hires

Culture as an Asset

Strong culture improving motivation and performance

ex: employees working harder because they believe in company values

Culture as a liability

culture becoming harmful when it prevents change or diversity of thought

ex: “We’ve always done it this way” blocks innovation

Best Practices for Creating an Ethical Organizational Culture

ways organizations encourage ethical behavior
examples: ethical leadership, rewarding ethical behavior, clear codes of conduct, training, open communication

Best Practices for Creating a Culture of Innovation/Change

ways organizations encourage creativity and adaptability
examples: encouraging experimentation, supporting risk taking, psychological safety, collaboration, continuous learning

Proactive Culture

encourages change, innovation, and risk taking

ex: experimentation is rewarded

Resistance to Change

employee or organization opposition to change

ex: workers resisting new technology because they fear losing their jobs

Sources of Individual Resistance to Change

reasons employees personally resist change

• Fear of uncertainty — Employees may worry about the unknown outcomes of change, such as new expectations or unfamiliar tasks.

• Habit — People become comfortable with established routines and may resist changing behaviors they are used to.

• Fear of losing status or job security — Workers may think the change could reduce their importance, authority, or even lead to job loss.

• Comfort with current routines — Existing methods often feel easier and safer because employees already know how they work.

• Economic concerns — Employees may fear reduced pay, benefits, or opportunities for advancement.

• Lack of understanding — Resistance can occur when employees do not fully understand why the change is necessary.

• Low tolerance for change — Some individuals naturally struggle more with adapting to new situations.

Sources of Organizational Resistance to Change

organizational factors that make change difficult

• Structural inertia — Organizations develop established rules, procedures, and systems that are designed to maintain stability.

• Group inertia — Work groups may resist change because team norms and peer pressure encourage employees to maintain existing behaviors.

• Threats to existing power relationships — Managers or departments may resist changes that reduce their authority or influence.

• Limited resources — Organizations may lack the time, money, staff, or technology needed to successfully support change.

• Threats to expertise — Employees or departments with specialized skills may fear losing value if new systems replace their expertise.

• Organizational culture — Strong company traditions and values can discourage new ways of thinking or operating.

• Sunk costs — Organizations may continue supporting old systems because they have already invested heavily in them.

• Interconnected systems — Changing one part of the organization can affect many other departments, making change more complicated.

Lewins 3 Step model for resistance to change

1. Unfreeze (preparing employees for a new system)

2. Change (implementing it)

3. Refreeze (making it standard practice)

Kotter’s 8-Step Model for managing successful organization change

1. Create urgency-show why change is needed

2. build a guiding coalition- get stronger leaders/supporters on board

3. form a vision- define what the change will achieve

4. communicate the vision-spread the message clearly

5. remove obstacles-fix barriers to change

6. create short term wins- show early success

7. build on change- keep improving and pushing forward

8. anchor the change- make it apart of culture

Example:
A company realizes sales are dropping → leaders push urgency, form a change team, set a new digital strategy, train employees, celebrate early online sales success, and eventually make digital sales the normal way of doing business.

Need → Team → Plan → Tell → Act → Win → Push → Stick”

Kotter’s 8-Step Model Mnemonic

“Urgent Bears Fix Vision, Communicate Obstacles, Win, Build Anchors”

Breakdown:

• U = Urgency (create urgency)

• B = Build coalition

• F = Form vision

• V = Vision communicated

• C = Clear obstacles (remove barriers)

• O = Obtain wins (short-term wins)

• W = Work on more change (build on it)

• B/A = Build + Anchor change

Organizational Development

A planned, long-term effort to improve an organization’s effectiveness and employee well-being using behavioral science (basically psychology applied to workplaces).

OD = “Fixing and improving how the organization works in a smart, planned way.”

Example:

A company notices teams don’t communicate well, so they:

• reorganize departments

• add team-building training

• improve communication systems

👉 Goal: better teamwork + happier employees + better performance

Learning Organization

Organization that continuously learns and adapts

ex: employees consistently trained on new skills

HRM-Human Resource Management

Managing people through hiring, training, evaluating, and retaining employees

HRM = “everything a company does to manage its people.”

• Hiring (Recruitment & Selection) – finding and choosing employees

• Training & Development – teaching skills and improving performance

• Performance Evaluation – assessing how well employees do their job

• Retention – keeping good employees from leaving

Importance of HRM (Human Resource Management)

Impacts hiring, performance, retention, and organizational success.
Example: Better hiring → better performance.

How Strategy Informs HRM

HR practices should match the company’s goals and strategy.

• Innovative companies hire creative people and focus on training and development.

• Cost-focused companies emphasize efficiency, rules, and standardized training.

When HR supports the company strategy, the organization performs better.

Job Analysis

The process of figuring out what a job involves—its duties, responsibilities, skills, and requirements.

What it includes:

• Job duties – what tasks are done

• Skills – what abilities are needed

• Requirements – education, experience, qualifications

Example: Writing job description for nurse.

Recruitment

attracting job applicants

ex: putting available jobs into handshake for people to apply

Hiring and Selection

Choosing best candidate using tools like interviews and tests

Selection Stages for job interviews

1. initial screening (eliminate unqualified)

2. Substantive selection (interviews/tests)

3. Contingent selection (background checks)

Validity

Whether selection tools predicts job performance

Ex: Job Relevant test for hiring

A random personality quiz with no job connection → low validity.

Training and Development

Training= current job skills

development= future growth

ex: leadership training program

Performance Management

evaluating and improving employee performance

ex: annual performance review

Retention

Keeping employees in organizations

Strategies for Retention:

• Pay/benefits

• Work environment

• Career development

• Work-life balance

• Recognition
  

ex: offering benefits and promotions