Congruence Hypothesis
Organizations are more effective when all components of the organizational architecture - operations, talent, formal organization, and informal organization - fit with each other and with the organization's strategy
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Congruence Hypothesis
Organizations are more effective when all components of the organizational architecture - operations, talent, formal organization, and informal organization - fit with each other and with the organization's strategy
Useful map
is one that strips away at superfluous map to provide comprehensive necessary information
Informal Organization
Formal Organization
Talent
Environment and History
Strategy
Operations
Components of the Congruence Model
Informal Organization
Leader behavior
Groups and Networks
Culture and norms
Power Relations
formal organization
Organization design
Compensation
HR Systems
Talent
Individual characteristics, skills, needs, perceptions, backgrounds,
Environment and history
_________: Markets, suppliers, competitors, regulators, demands, constraints, opportunities
______________: Key events, crises, evolution of norms and values
Strategy
Core mission
Tactics
Output Objectives
Operations
Key tasks
Work Interdependence
Time Demands
Heuristic
a cognitive rule of thumb or shortcut that we use to make guesses or quick estimates
availability heuristic
Assessing the likelihood of an event given its availibility in memory.
Events that are vivid evoke emotion and are easily imagined will be more available.
Example of availability heuristic
A subordinate who works closer to their manager's officer will receive more critical available than a non-emotional event
Representativeness heuristic
looking for traits that correspond with previously formed stereotypes when making a judgement
example of representativeness heuristic
Predicting someone's success based on someone similar's performance
Baker Mayfield and Kyler Murray transferred to oklahoma won the heisman and went first overall.... So jalen hurts will too
Ease of recall
suggests that if something is more easily recalled in memory it must occur with a higher probability
ease of recall example
Parents of children diagnosed with cancer may be more likely to recall infections earlier in the child's life than parents of children without cancer. This may lead to observing an entirely or partially untrue association between childhood infection and disease.
Affect heuristic
using affective or emotional evaluation as the basis of decision
affect heuristic example
People place greater value on an overfilled small cup of ice cream than an underfilled big cup
Bias
innapropriate application of heuristics resulting in systematic error in measurement, estimates and decisions
Retrievability bias
the more easily you can grab something from your memory the more likely you think it'll occur or the more likely you apply that knowledge
Anchoring bias
makes estimates based on whatever info is provided (even when info is irrelevant) and typically make sufficient adjustments from the anchor when establishing a final value
Overconfidence
people tend to be overconfident of the infallibility of their judgements and do not sufficiently acknowledge uncertainty
Regression to the mean
individuals tend to ignore the fact that extreme events tend to regress to the mean on subsequent trials
Conjunction fallacy
individuals falsely judge that two events co-occurring are more probable than a more global set of occurrences of which the conjunction is a subset. Occurs because conjunction appears more representative and better matches stereotypes
Conjunctive
disjunctive
individuals exhibit a bias toward overestimating the probability of _______ events and underestimating probability of __________ events
Confirmation bias
seeking confirming evidence; disconfirming evidence
Sampling on dependent variable"
survivorship or selection bias
Steve Jobs dropped out of college and was successful, so can I!
Hindsight and the curse of knowledge
after finding out whether or not an event occurred, individuals tend to overestimate the degree to which they would have predicted the correct outcome
Furthermore, individuals fail to ignore info they possess that others do not when predicting others' behavior
Framing effects
explained by prospect theory
Losses loom larger than equivalnt gains
Choices will change based on framing of issue even when the set of options are equivalent
System 1 Strengths
Quick decision making, impulsive decision, nonconscious decisions
Prospect theory
How a decision is framed (loss v. gain) can influence risky choices
"Losses loom larger than gains", risk averse with gains, risk heavy with losses trying to recoup
System 1 Limitations
can't be turned off, will try to take over, lousy for complex though
System 2 Strengths
steps in when system 1 can't handle, Uses multiple criteria and makes rational decision,Can solve a wide range of problems
System 2 limitations
gets tired, can do complicated tasks but not in bulk, gets overshadowed by system 1, leads to analysis paralysis
System 2 Framework
Define Problem
Identify criteria
Weigh criteria
Generate alternatives
Rate alternatives
Compute optimal decisions
Awareness, communication, trust, cooperation, and a willingness to reflect
Pillars of effective teaming-
Model of team performance- Inputs
Individual characteristics of group members, situational and external environmental factors
Model of team performance- Process
Group structure
-Hierarchy v. equality
-Roles, division of labor
Group Process
-Norms
-Communication
-Pattern of influence
-Conflicts
-Internal environment
Model of team performance- Outputs
Group production
-Creativity
-Quality
-Efficiency
Group experience
-Cohesion
-Individual growth
Principles of organization design
How to structure the internal organizational archtecture
-Division of labor
-Coordination mechanisms
Distribution of decision rights
Span of control
How to determine what make vs buy
-Organizational boundaries
Naive realism
thinking we see the world objectively and if someone sees differently, they are probably wrong
Fundamental attribution error
we blame a negative event on someone, but if we do it then there is an excuse, if we did a positive thing we rock, if they did a positive thing they must have cheated or something
Hierarchy
Cross-unit groups
integrator roles
Matrix structures
Coordination Mechanisms
Reason for redesign
When size increases beyond the capacity of the current design
When strategies change
When work processes are redefined
When there are cultural or political changes
Organizational causes: problems of
-Coordination; conflict; role clarity
-Resource misuse; work flow; reduced responsiveness
Proliferation of extraorganizational units
Psychological safety
is a belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns or mistakes.
Toolbox view
diverse perspectives allow us to tackle harder problems because each member brings a different tool to the problem
Toolbox view challenges
we sometimes face difficulties in making the most diversity in teams (low psychological safety)
Toolbox view benefits
increases cognitive action- meaning more creativity, innovation, and novel info - leads to better decisions and thus a higher impact
Organizaional architecture
channels information flow (who talks to whom)
Designs should match information processing requirements of the work and the level of interderpence required
Functional
Divisional
Matrix
Types of organizational architecture
Functional
Benefits- Resource efficiency, deep expertise, accountability
Costs- Silo'd communication, less adaptability
Divisional
Benefits- time efficiency, task significance, adaptability, accountability
Costs- Duplication of resources
Matrix
Benefits: Best of both functional and divisional
Costs: two bosses, accountability?, politics across matrix dimensions
What you observe
values and beliefs
underlying assumption
Levels of culture
Level 1- what you observe
Artifacts/props, stries/jargon, ceremonies/rituals, dress/uniform, physical settings
Level 2: values and beliefs
Sense of what ought to be, norms, philosophies, shared convictions about "right" and wrong"
EX: mission statements, "about us", vision, goals
Level 3: Underlying assumptions
Organization's relationship to its environment, nature of reality and truth, nature of human nature, nature of human activity, nature of human-relationships
Recognizable social unit
A shared history
Repeated way of doing things
Requirements for a culture to emerge; how groups develop a culture (Christensen)
Organizational identity socialization
Individualized- participative to help them find how they can best thrive
Institutionalized- people in line to assimilate
Content analysis
systematically examines the use of words and phrases in a text (book, speech, website, securities filing)
Understanding the management logics at play is important for social intrapreneurs. At the organizational level, you need to know how to navigate the political system. Social network analysis helps you understand the structure of influence channels in your organization and identify the right people.
Inspired
family
popularity
civic
market
industrial
sustainable
Main types of logic in Yoshikoder
Coordination problem
get everyone to work together to pursue the goals of the org.
What motivates people is different for everyone
Group Incentives
Work is highly interdependent
Group can encourage coordination and knowledge transfer
Peer norms or culture can overcome the "free rider effect"
Agency problem
goals of individuals and firm are unlikely to be naturally aligned
When to use individual or group incentives
Individual Incentives
Output is sensitive to worker's effort
Interdependencies among workers not large
Level of risk beyond worker's control not large
Output easy to measure (if quantity to observe, may compromise quality)
No tension between multiple dimensions of output
Free Rider problem
For a group, the problem of people not joining because they can benefit from the group's activities without joining.
Job complexity
incentive contracting can cause employees to carry out actions that are beneficial to them but harmful to their company's interests. People have complex jobs with many responsibilities, but they may realize that only some of the responsibilities are mentioned in their pay incentives.
EX: Tim Hardaway had an incentive in his contract to get a certain number of assists, so he would pass up wide open shots in order to try to get the bonus on his contract. This obviously hurt the team.
Cost exceeds benefit
The bonuses paid to employees might exceed the amount the company is making from their increased productivity.
Ex: Stock options given to executives often outweigh the added productivity from the executives
Individual vs. Team Compensation
Companies often want to introduce pay incentives at the team level because they feel it makes more sense for their organization, but this leads to free-riding.
Scientific management approach to job design
Analyzed and planned workflows to improve efficiency
Labor process is broken into maximum number of discrete standardized tasks; jobs are composed of oneor more tasks
Workers controlled via external punishments and incentives
Major application: automotive assembly line ("Fordism")
skill variety
task identity
task significance
autonomy
feedback
Job Characteristics Model
Skill Variety
The degree to which a job requires a variety of different activities in carrying out the work, involving the issue of number of different skills and talents of the person
Being challenged to develop and use a range of different capabilities and skills
Cross training, multi-tasking, form natural work units (teams)
Task Identity
The degree to which a job requires completion of a "whole" and identifiable piece of work, that is, doing a job from beginning to end with a visible outcome
Doing a whole, identifiable piece of work from start to finish
Form natural work units
Task Significance
The degree to which the job has a substantial impact on the lives of other people are in the immediate organization or in the world at large
Having impact on the well-being of other people
Provide client contact and customer feedback
Autonomy
The degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying out
Discretion in making decisions about what to do and when and how to do the work
Set clear outcome goals but leave for people to design work procceses alternative
Feedback
The degree to which carrying out the work activities required by the job provides the individual with direct and clear information about the effectiveness of his or her performance
The work itself provides direct information about effectiveness of performance
-ask people to test their own quality,
-provide real-time data that allow workers to see
-the consequences of their work
Task crafting
cognitive crafting
Relationship crafting
Aspects of job crafting
Task Crafting
Amount of tasks you are taking on
Expanding or diminishing scope of tasks
Changing how tasks are performed
Cognitive Crafting
How you think about your job - reframe the whole position
Separate job into 2 parts - part you find enjoyable, part you find necessary
Problems with predictive analytics
Analysts tend to overestimate the accuracy of their predictive models
Can mistake meaningless coincidences for meaningful patterns
Models are only as good as the quality of the input data
Even the best models cannot account for surprise events
Relationship Crafting
Can change extent of interactions with others and how they interact with others
Ex: Taking on a mentorship role with a new associate
brick and mortar
How information technologies can shape hiring, evaluation, collaboration
Moves us away from formal info structure
Don't need _______ _____ _________operations as much anymore
Big data starting to eliminate need for managers
Webpage Enterprise
Coordinates inputs to create outputs through software and algorithms, not hierarchy
Creates immediate feedback
The concept of congruence
The performance of the organization relies on the alignment and congruence among the various components of the organizational architecture. The operations, talent, formal and informal structures have to all reinforce each other in order to achieve superior performance. Congruence between the components is often more important than the components themselves.
Bounded rationality framework
views individuals as attempting to make rational decisions
Satisfice
decision makers will forgo best solution in favor of one that is more acceptable or reasonable
Presumed associations
individuals tend to overestimate the probability of two events co-occuring based on the number of similar associations they can easily recall, whether from experience or social influence
Insensitivity to base rates
when assessing the likelihood of events, individuals tend to ignore base rates if any other descriptive information is provided even if it is irrelevant
Insensitivity to sample size
when assessing the reliability of sample info, individuals frequently fail to appreciate the role of sample size
Misconceptions of chance
individuals expect that a sequence of data generated by a process will look "random" even when the sequene is too short for those expectations to statistically valid
The confirmation trap
individuals tend to seek confirmatory information for what they think is true and fail to search for disconfirmatory evidence
Teaming
is a verb it is a dynamic activity not bounded, static entity
it is on the fly, collaborating without the benefit of stable structures
It relies on trust, interdependence and figuring out how to coordinate
Learning benefits of teaming
develop new routines and implement new technologies to meet the demands of a changing context
Performance benefits of teaming
facilitates the creation of new knowledge, new processes, and new products
The hot system
when engaged, triggers people to respond emotionally and quickly ('heat of the moment') - teaming breaks down
Occurs when 1) controversial or limited data that are subject to differing interpretations, 2) high uncertainty, and 3) high stakes.
The cool system
is deliberate and careful. Self-regulation and self-control.
descriptions
predictors
guidelines for action
Success studies have three uses
Vanguard Management
compares successful and unsuccessful and presents qualities as polar opposites
Job complexity
cost exceeds
benefit individual vs team compensation
There are three important drawbacks to pay-for-performance plans
Social intrapreneurs
Lead change within their organization, without formal authority, that aligns with core business objectives while also advancing a social and environmental outcome