Work Organisation (IOE 421)

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Work Organisation (IOE 421)
2015-10-20 17:42:02
IOE 421

Midterm #1
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  1. Learning Pyramid and Avg retention rates
    • Lectures - 5%
    • Reading - 10%
    • Audio-Visual - 20%
    • Demonstration - 30%
    • Discussion - 50%
    • Practice by Doing - 75%
    • Teaching Others - 90%
  2. 4 types of Organizational Structures
    • Hierarchy
    • Flat
    • Team-Based
    • Pyramid
    • Matrix
    • Diamond
  3. Scientific Management
    • Frederick Taylor
    • Scientifically select, train and develop each employee
    • Top managers do the thinking workers do what they are told
    • Maximum efficiency and productivity
  4. Division of Labor
    • Adam Smith
    • The specialisation and centralisation of workers on their specific subtasks often leads to greater skills and productivity
  5. Bureaucracy
    • French Revolution
    • Each subordinate receives orders from only one supervisor
    • similar activities are organised under one manager
    • Hierarchical structure
  6. Theory X
    • Managers must rely heavily on the threat of punishment to gain employee compliance 
    • The belief that all actions can be traced and that the person of said action must be rewarded or punished in order to keep workforce motivated to perform
    • Theory can lead to mistrust and it discourages creative thinking
    • People are passive and they fit the need of the organization, "Dissatisfiers"
  7. Theory Y
    • Considers workforce as the most important asset of the company
    • People exercise self-direction and self-serving objectives
    • Individuals do not only like their careers but they are also willing to seek responsibilities (no need for constant supervision)
    • Management must align personal goals with the organization, "Satisfiers"
  8. Hawthorne Studies
    • Positive treatment of employees = motivation and greater productivity (until competition increases)
    • Productivity increased when illumination was increased, productivity increased when illumination was increased (employees need attention)
  9. Organization
    Organisations are social entities that are goal-oriented, are deliberately created as structured and coordinated activity systems and are linked with the external environment
  10. Challenges of today's managers and organizations
    • Globalisation
    • Rigorous ethical scrutiny
    • Digital Workspace
    • Diversity
    • Intense Competition
    • Need for rapid response
  11. Structural Dimensions
    • Internal Characteristics of an organisation
    • Formalisation
    • Specialisation
    • Hierarchy of authority
    • Centralisation
    • Professionalism
    • Personnel Ratio
  12. Contextual Dimensions
    • Everything that shapes the structure of the organisation
    • Culture
    • Environment
    • Goals and Strategy
    • Size
    • Technology
  13. Sigmoid Curve
    • All thing occur in cycles and this curve shows the three sections that represent the phases of growth in a cycle
    • 1. The Learning Phase, much is being done but the growth is very slow and there is no immediate reward for effort
    • 2. Growth Phase, there is vast and quick growth and what was put in phase 1 is paying off
    • 3. Decline Phase, after reaching the peak the efforts have been used up and revenue begins to decline
  14. Theory behind Sigmoid Curve
    • To avoid the decline phase and reach long-term success, you need to jump from the current curve which is nearing the peak and start at the bottom of another curve
    • Always assume that you near the peak of the first curve and should therefore start preparing for the second curve
  15. Contingency
    • A fund (time or money) that is used to mitigate unanticipated events. 
    • Factors: the likelihood of that event occurring, the effect that that event has if it does occur
  16. Maslow's Hierarchy of Needs
    • 1. Self-actualization (least)
    • 2. Esteem 
    • 3. Love/Belonging (Social approval)
    • 4. Safety
    • 5. Physiological (most important)
  17. Theory Z
    • Lifetime employment
    • Seniority-based promotion
    • Collective decision making
    • Japanese working culture
  18. Stakeholders (roles and examples)
    • Any individual group that is affected or has an investment in the organisation's performance. 
    • 1. Internal: employees, managers
    • 2. External: customers, gov, local community, standard agencies
  19. Strategic Planning Cascade
    • 1. Vision: clear, simple, futuristic
    • 2. Mision: what we want and why
    • 3. Focus Area: categories which organise the goals
    • 4. Goals: prioritise, 3-5 year achievements
    • 5. Performance Measures: Measure progress to goal
    • 6. Strategic Initiatives: projects to achieve goals
  20. Effectiveness
    Applies to the goals of a company being adequately achieved
  21. Efficiency
    Related to the amount of resources a company uses to complete its goals. when both efficiency and effectiveness are maximised together the organisation can function at an optimal level
  22. Is it necessary to have authority to have power?
    Fasle - an example of someone with power and no authority is a student at recess who has rallied up friends and does not want to go back to school. That student has power but still has no authority over teachers.
  23. Difference between power and authority
    • Power is the ability to achieve desired outcomes while authority is  the ability to achieve desired outcomes as a singular result of formal hierarchy
    • Power can be influenced in all directions while authority has a narrower score and can only be exercised downward
  24. Golden Circle (Simon Sinek)
    • 1. WHY (inner): Why is not about making money, that's a result. It is a purpose, cause or belief. The very reason your organisation exists. 
    • 2. HOW: The things that make the organization special or set them apart form the competition
    • 3. WHAT: The products they sell or the services they offer
  25. General External Environment
    Sectors that may not have direct impact on the operations of the firm but indirectly influence it
  26. Task Environment
    Sector with which organisation interacts directly and that have a direct impact on the organisations ability to achieve its goals
  27. Environmental Sectors (10)
    • Industry
    • Raw Materials/suppliers
    • Market 
    • Human Resources
    • Financial Resources
    • Technology
    • Economic Conditions
    • Government
    • Sociocultural
    • International
  28. When the external environment is uncertain, what does the organization do in response?
    • 1. Adjust the internal organisation to better fit with the current or future external environment
    • 2. Attempt to control the current or future external environment
    • 3. Results in a continuous de facto negotiation with the enivornment
  29. 4 types of CEO
    • Highly Diversified Holding company- Results; Warren Buffet
    • Strategic Management company - What; LG
    • Active Management Company - How; McKensson
    • Highly operationally involved company - Closely run, involved in daily operations
  30. Porter's Competetive Strategies (5 forces) Model
    • The threat of new entrants
    • The power of suppliers
    • The power of buyers
    • The threat of substitutes
    • Rivalry among existing competitors
  31. Core Competencies
    • Organisation strengths which provide basic competitive advantage. A specific factor that the organization believes is central to the way it works.
    • Provides consumer benefits
    • Not easy for competitors to imitate
    • Can be leveraged widely to many products and markets
  32. Why does Menlo choose to have their clients so involved in the process?
    The transparency with the client ensures that Menlo will deliver a product that the company wants, and cannot be held solely accountable if the product does not meet the standards of the client (because the client has been involved throughout the whole process)
  33. Name 3 practices that Menlo uses
    • Pairing, no one works alone
    • High-Tech Anthropology
    • Open and collaborative workspace
    • daily stand up
    • 40-hour work weeks
    • Pets and babies at work
    • Making mistakes faster
    • Work authorisation boards, story cards, yarn and stickers
  34. Outline Menlo's extreme interviewing process
    • Step 1: Paired interviewing, your objective is to get your partner hired
    • Step 2: You work as an employee (unpaid) for 1 day, you get paired with someone and work on a project with them for a day
    • Step 3: a 3 week trial session, where you do paid work with the company for 30 days (like mini internship)
  35. Vertical Organisation Structure
    • Designed for Efficiency
    • It is a dominant structural approach
    • Strict hierarchy
    • Specialised tasks
    • Vertical communication and reporting
    • Centralised decision making
  36. Horizontal Organisation Structure
    • Designed for Learning
    • Shared tasks, empowerment
    • Relaxed hierarchy, few rules
    • Horizontal communications
    • Many teams and task forces
  37. Quinn's Competing Value Framework
    • Flexibity (+) and Control(-) vs. External (+) and Internal (-)
    • 1. F & I: Open Systems Model
    • 2. F & E: Human Relations Model
    • 3. C & E: Rational Goal Model
    • 4. C & I: Internal Process Model
  38. Assessing Effectiveness
    • Goal Approach: Focus on output and productivity, easiest measure
    • Resource-Based: Focus on ability to acquire necessary resources, useful when other measures are hard to obtain
    • Internal Process: Focus on efficiency and internal health of organisation
    • Balanced Scorecard: Financial, Internal, Stakeholders & Growth 
    • Quinn's Competing Values Framework: Combination of all
  39. Contingency Theory
    No single approach is suitable or correct for every organization