B A 350

Organizational culture definition

Shared values, beliefs, and norms that influence employee behavior and decisions

Four key characteristics of culture

Shared, learned, symbolic, adaptive

Culture vs corporate image

Culture = internal reality; Image = external perception

Dominant culture

Core values shared by majority of members

Subculture

Mini culture within departments or locations

Strong culture

Widely shared values that strongly influence behavior

Weak culture

Values not widely shared; employees rely more on rules

Four functions of culture

Identity, commitment, social stability, behavior control

How founders create culture

Hire for fit, socialize employees, role model values

Four ways employees learn culture

Stories, rituals, symbols, language

Customer-responsive culture requires managers to

Hire service-focused employees, train, empower, reward service

Work specialization

Degree tasks are divided into separate jobs

Departmentalization types

Functional, product, geographic, process, customer

Chain of command includes

Authority, responsibility, unity of command

Span of control

Number of employees a manager supervises

Centralization

Decision-making concentrated at top

Decentralization

Decision-making pushed downward

Formalization

Degree jobs are standardized and rule-driven

Boundary spanning

Working with external environment

Simple structure

Low departmentalization, centralized, small businesses

Bureaucracy

Highly formalized, many rules, clear hierarchy

Matrix structure

Employees report to two bosses

Virtual organization

Small core outsources major functions

Mechanistic structure

Rigid, centralized, many rules, stable environments

Organic structure

Flexible, decentralized, few rules, dynamic environments

Innovation strategy structure

Organic

Cost-minimization strategy structure

Mechanistic

Imitation strategy structure

Mix of both

Four factors influencing structure

Strategy, size, technology, environment

Five forces for change

Technology, competition, workforce, social trends, globalization

Change agents

People who initiate and manage change

Top reasons employees resist change

Habit, security, fear, economics, loss of power

Lewin Step 1

Unfreeze – create need for change

Lewin Step 2

Change – implement new behaviors

Lewin Step 3

Refreeze – stabilize change

Kotter Step 1

Create urgency

Kotter Step 2

Build guiding coalition

Kotter Step 3

Form vision

Kotter Step 4

Communicate vision

Kotter Step 5

Remove obstacles

Kotter Step 6

Create short-term wins

Kotter Step 7

Build on change

Kotter Step 8

Anchor change in culture

Action research

Change process using data collection, analysis, action, evaluation

Organizational development

Change methods focused on people and culture

Performance after change

Drops initially then improves

Hawthorne effect

Performance improves when employees feel observed

Learning organization

Continuously acquires, shares, and uses knowledge

Selection practices goal

Hire best person-job fit

Training and development purpose

Improve skills, knowledge, long-term growth

Performance evaluation methods

Essays, critical incidents, rating scales, BARS, 360 feedback

Effective feedback characteristics

Specific, timely, constructive, balanced

Challenge stressors

Growth opportunities and positive stress

Hindrance stressors

Obstacles that block progress

Stress-performance relationship

Inverted U curve

Low stress effect

Low performance

Moderate stress effect

Peak performance

High stress effect

Burnout

Individual stress management

Time management, exercise, relaxation, social support

Organizational stress management

Wellness programs, job redesign, flexible schedules

Job satisfaction

How much someone likes their job

Organizational commitment

Loyalty to organization

Job involvement

Psychological engagement in work

Attribution theory

Explains how we judge people differently based on meaning we assign to behavior

Fundamental attribution error

Blaming person instead of situation

Self-serving bias

Success = internal; failure = external

Power distance

Acceptance of unequal power distribution

Individualism vs collectivism

Personal vs group focus

Masculinity vs femininity

Competition vs quality of life

Uncertainty avoidance

Comfort with ambiguity

Long-term orientation

Future vs present focus

Indulgence vs restraint

Gratification vs control

Maslow level 1

Physiological

Maslow level 2

Safety

Maslow level 3

Social

Maslow level 4

Esteem

Maslow level 5

Self-actualization

Two-factor hygiene factors

Prevent dissatisfaction

Two-factor motivators

Create satisfaction

Equity theory

Employees compare input-output ratios

Expectancy theory formula

Motivation = Expectancy × Instrumentality × Valence

Five job characteristics

Skill variety, task identity, task significance, autonomy, feedback

Group development stages

Forming, storming, norming, performing, adjourning

Group decision advantage

More information

Group decision disadvantage

Groupthink and slow decisions

Types of teams

Problem-solving, self-managed, cross-functional, virtual

Charismatic leadership

Inspires through vision and personality

Fiedler model

Match leader style with situation

Situational leadership

Adjust style to follower readiness

Leader-member exchange

In-group vs out-group relationships

Path-goal theory

Leader clears path to goals

Leadership challenge

Leadership may be overrated; context matters

Qualities of a strong vision

Inspiring, clear, future-focused, meaningful

Dependency definition

Power comes from others needing you

Five bases of power

Coercive, reward, legitimate, expert, referent