Athena Summaries for Midterm 2 ONLY! (1)
Organizational Structure Summaries: Chapters 8 to 14
Chapter 12 - Decision Making, Learning, Knowledge Management, and Information Technology
12.1 Organizational Decision Making
Definition: Process of responding to a problem to create value for stakeholders.
Types of Decisions:
Programmed Decisions: Routine, repetitive decisions.
Nonprogrammed Decisions: Novel, unstructured decisions requiring more information and intuition from managers.
12.2 Models of Organizational Decision Making
Decision making is complex and involves both positive and negative outcomes for stakeholders.
12.2.1 The Rational Model
Three Stages:
Identify problems.
Develop alternatives.
Compare consequences and select the best alternative.
Critiques:
Assumes decision makers have complete information, can make optimal decisions, and agree on goals.
12.2.2 The Carnegie Model
Introduces
Satisficing: Choosing a satisfactory option rather than the optimal one.
Bounded Rationality: Decision-making constrained by cognitive limitations.
Organizational Coalitions: Groups of different managers negotiating decisions.
12.2.3 The Incrementalist Model
Managers make small, incremental changes rather than radical decisions, correcting mistakes gradually.
12.2.4 The Unstructured Model
Decision making is done in small steps with continuous re-evaluation of alternatives. Managers use intuition due to high uncertainty.
12.2.5 The Garbage-Can Model
Decision making appears chaotic where problems, solutions, and preferences of managers randomly mix, leading to unpredictable outcomes.
12.2.6 The Nature of Organizational Learning
Definition: Process improving organizational effectiveness through shared knowledge and adapting to change.
12.2.7 Types of Organizational Learning
Exploration: Searching for new forms of activities.
Exploitation: Refining existing procedures. A learning organization fosters learning at four levels: individual, group, organizational, and interorganizational.
12.2.8 Levels of Organizational Learning
Individual Level: Encouraging personal mastery and empowering employees.
Group Level: Promoting teamwork and synergy to solve problems.
Organizational Level: Designing structure and culture to facilitate learning across divisions.
Interorganizational Level: Building partnerships to enhance learning and effectiveness.
12.3 Knowledge Management and Information Technology
Definition: Facilitating sharing of expertise within organizations through integrated IT.
Approaches:
Codification: Collect and store knowledge for retrieval. Suitable for standardized products.
Personalization: Customized knowledge sharing for innovative solutions.
12.4 Factors Affecting Organizational Learning
Challenges:
Successful SOPs may deter new learning.
Managers may ignore early warnings of crises leading to reduced learning capabilities.
12.4.1 Organizational Learning and Cognitive Structures
Cognitive Biases: Misinterpretation of information can lead to poor decision-making.
12.4.2 Types of Cognitive Biases
Cognitive Dissonance: Tendency to seek information confirming beliefs, leading to misinterpretation of threats.
12.4.3 Escalation of Commitment
Occurs when managers persist with flawed decisions due to previous investment.
Chapter 8 - Organizational Design and Strategy in a Changing Global Environment
8.1 Strategy and the Environment
Definition: A pattern of decisions and actions utilizing core competences for competitive advantage.
Core Competences: Specialized resources and coordination abilities lead to competitive advantages.
8.2 Functional-Level Strategy
Objective: Perform functional activities at lower costs or with product differentiation.
Strategies: Enhancing efficiency in various departments like manufacturing and sales.
8.3 Business-Level Strategy
Focus: Positioning the organization to compete effectively through low-cost or differentiation strategies.
8.4 Corporate-Level Strategy
Objective: Use existing competences to enter new domains.
Types: Vertical Integration, Related Diversification, Unrelated Diversification strategies.
8.5 Implementing Strategies Across Countries
Strategic Approaches: Multidomestic, International, Global, and Transnational strategies shaped by local responsiveness and efficiency.
Chapter 10 - Types and Forms of Organizational Change
10.1 What is Organizational Change?
Definition: Movement from current to desired states to improve effectiveness.
Levels: Changes occur in human resources, functional resources, technological capabilities, and organizational capabilities.
10.2 Forces for and Resistance to Organizational Change
Forces for Change: Competitive, economic, political, social, and ethical pressures drive change.
Resistance: Organizational inertia leads to slow responses to necessary change.
10.3 Evolutionary vs. Revolutionary Change
Evolutionary Change: Gradual, focusing on incremental improvements.
Revolutionary Change: Drastic shifts required in response to major environmental shifts.
Chapter 14 - Managing Conflict, Power, and Politics
14.1 Understanding Organizational Conflict
Definition: Clash of interests between stakeholders resulting from blocked goals.
Outcome: Conflict can improve effectiveness when resolved properly, but can also hinder performance when excessive.
14.2 Pondy's Model of Organizational Conflict
Stages:
Latent Conflict
Perceived Conflict
Felt Conflict
Manifest Conflict
Conflict Aftermath
14.3 Managing Conflict: Resolution Strategies
Adjusting structure to reduce conflict sources or changing individual attitudes.