Organizational Innovation and Global Business Concepts

Flashcards covering key concepts from organizational innovation, global business strategies, team dynamics, and employment law to aid in exam preparation.

What is Organizational Innovation?

The successful implementation of creative ideas in organizations.

What is Organizational Change?

The difference in the form, quality, or condition of an organization over time.

What characterizes the S-Curve Pattern of Innovation?

A pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress as technology matures.

What is a Technology Cycle?

A cycle that begins with the 'birth' of a new technology and ends when that technology is replaced by a newer, better technology.

Define Experimental Approach in innovation.

An approach that assumes a highly uncertain environment and uses intuition and flexibility to reduce uncertainty and accelerate learning.

What are Milestones in project management?

Formal project review points used to assess progress and performance.

What is Design Iteration?

A cycle where a company tests a prototype, improves the design, and then tests improved prototypes.

What is a Compression Approach in innovation?

An approach that assumes incremental innovation can be planned and compressed into fewer steps.

Define Generational Change.

Change based on incremental improvements to a dominant technological design that is compatible with older technology.

What is Discontinuous Change?

The phase of a technology cycle characterized by technological substitution and design competition.

What is Dominant Design?

A new technological design or process that becomes the accepted market standard.

Define Technological Discontinuity.

The phase of an innovation stream where a scientific advance or combination of technologies leads to significant breakthroughs.

What is Incremental Change?

The phase in a technology cycle where companies innovate by lowering costs and improving the performance of existing designs.

What are Lewin’s 3 stages of organizational change?

Unfreezing, Change Intervention, and Refreezing.

Define Tariff Barriers.

Government-imposed regulations that increase the cost and restrict the number of imported goods.

What is a Tariff?

A direct tax on imported goods.

Define Specific Tariffs.

A fixed fee imposed per unit of an imported good.

What are Ad Valorem Tariffs?

Tariffs that are a percentage of the value of the imported good.

What are Protective Tariffs?

Tariffs designed to shield domestic industries by making imports more expensive.

Define Revenue Tariffs.

Tariffs imposed mainly to generate government revenue rather than protect domestic industries.

What are Retaliatory Tariffs?

Tariffs imposed in response to another country’s trade restrictions.

Define Preferential Tariffs.

Lower tariffs given to specific countries under trade agreements.

What are Non-Tariff Barriers?

Nontax methods of increasing the cost or reducing the volume of imported goods.

What are Quotas in trade?

Limits on the number or volume of imported products.

What are Government Import Standards?

Standards established to protect health and safety but often used to restrict imports.

What are Government Subsidies?

Financial support provided to domestic companies to protect them from foreign competition.

What is the North American Free Trade Agreement (NAFTA)?

A regional trade agreement between the United States, Canada, and Mexico.

What is the Maastricht Treaty?

A regional trade agreement between most European countries.

What does the World Trade Organization (WTO) do?

It deals with global trade rules and ensures trade flows smoothly and freely.

What is Global Consistency?

When a multinational company runs its operations using the same rules across different countries.

Define Local Adaptation.

Modifying rules and procedures to meet the needs of foreign customers or regulations.

What are the phases in the model of globalization?

Exporting, Cooperative Contracts, Strategic Alliances, Wholly Owned Affiliates.

What are the advantages of Exporting?

Less dependence on domestic sales and more control over sales.

What are the disadvantages of Exporting?

Subject to trade barriers and transportation costs.

What is a Licensing Agreement?

An arrangement where a domestic company receives payments for allowing another company to produce its product or use its brand.

What are the advantages of Licensing?

Earn money without significant investment and avoid trade barriers.

List disadvantages of Licensing.

Loss of control over product quality and potential competition from licensees.

What is Franchising?

A network where a franchisor licenses a business to a franchisee.

What are the advantages of Franchising?

Fast entry into foreign markets and additional cash flow for the franchisor.

What are the disadvantages of Franchising?

Loss of control and cultural limitations.

What are Strategic Alliances?

Collaborations where companies combine resources and share risks.

What are the benefits of Strategic Alliances?

Avoiding trade barriers, sharing costs, and learning from partners.

What are the disadvantages of Strategic Alliances?

Profits must be shared and merging of different cultures can be challenging.

What is a Global New Venture?

Companies founded with an active global strategy.

Define Hofstede’s Power Distance Dimension.

The extent to which power distribution is accepted as unequal in society.

What does Individualism measure?

The degree to which societies prioritize self-sufficiency.

What do Masculinity and Femininity dimensions capture?

Differences between assertive and nurturing cultures.

What is Uncertainty Avoidance?

The degree to which people are uncomfortable with ambiguity and unpredictability.

Define Short-term vs Long-term Orientation.

Whether cultures seek immediate gratification or defer it for future benefits.

What determines potential growth in a market?

Purchasing power and the presence of foreign competitors.

What is Political Uncertainty?

Risk of major changes in political regimes affecting business.

Define Policy Uncertainty.

Risk arising from changes in laws that impact business operations.

What is an Avoidance Strategy?

Used when political risks of a country are deemed too great.

What is a Control Strategy?

An active approach to prevent or reduce political risks.

Define Cooperation Strategy in business.

Utilizing joint ventures and contracts to mitigate political risks.

Why do International Assignments Fail?

Due to difficulties in adjusting to linguistic, cultural, and social differences.

What is Centralization in an organization?

Location of most authority at the upper levels.

Define Decentralization.

Distribution of authority at lower levels of the organization.

What are Mechanistic Organizations?

Organizations characterized by defined roles and centralized authority.

Define Organic Organizations.

Characterized by flexible roles and decentralized authority.

What is Departmentalization?

Subdividing work into separate organizational units.

What are the advantages of Product Departmentalization?

Specialization and faster decision-making.

List disadvantages of Functional Departmentalization.

Difficulty in cross-department coordination and slower decision-making.

Define Matrix Departmentalization.

A hybrid structure using two or more forms of departmentalization together.

What is Line Authority?

The right to command immediate subordinates.

Define Staff Authority.

The right to advise but not command others.

What are Line Functions in an organization?

Activities that directly contribute to creating or selling products.

Define Staff Functions.

Activities that support line activities but do not contribute directly to production.

What is Chain of Command?

The vertical line of authority in an organization.

Define Unity of Command principle.

Management principle stating workers should report to only one boss.

What is the Job Characteristics Model (JCM)?

An approach to job redesign aimed at motivating workers.

Define Modular Organizations.

Organizations outsourcing non-core business activities.

What are Virtual Organizations?

Networked organizations sharing skills and resources to solve customer problems.

What is Reengineering?

Radical redesign of business processes for improved performance.

Define Empowerment in the workplace.

Workers feeling intrinsically motivated with impact and meaning in their work.

What is Job Standardization?

Applying consistent rules, procedures, and processes to solve problems.

Define Job Rotation.

Periodically moving workers between different jobs for skill variety.

What is Job Enlargement?

Increasing the number of different tasks a worker performs.

Define Job Enrichment.

Increasing tasks and granting workers authority over decisions.

What are Team Norms?

Informally agreed standards regulating team behavior.

What is Team Cohesiveness?

The attraction of team members to remain in the team.

Define Stretch Goals.

Extremely ambitious goals that challenge teams.

What is the Forming stage of Team Development?

The initial stage where team members meet and establish norms.

Define Storming stage.

Characterized by conflict and disagreement among team members.

What happens in the Norming stage?

Team members settle into roles and cohesion grows.

What occurs in the Performing stage of team development?

Improved performance as the team matures.

Define De-Norming.

A reversal of the norming stage where performance declines.

What is De-Storming?

A reversal of storming where comfort level decreases.

What happens in De-Forming?

Team members isolate themselves and lose connection.

When should teams be used?

When there's a clear purpose, collaboration is needed, and resources are available.

What is Skill-Based Pay?

A compensation system rewarding employees for learning new skills.

Define Gainsharing.

Sharing financial performance gains with workers.

What are Nonfinancial Rewards?

Incentives like vacations or plaques to reward teams.

Define Traditional Work Groups.

Groups with members working together toward a shared goal.

What are Employee Involvement Teams?

Teams providing management advice on specific issues.

Define Semiautonomous Work Groups.

Groups with decision-making authority related to production tasks.

What are Self-Managing Teams?

Teams managing all aspects of product or service production.

Define Self-Designing Teams.

Teams managing their design and tasks including membership.

What are Cross-Functional Teams?

Teams with members from different functional areas.

Define Virtual Teams.

Teams using technology for communication across locations.