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Bureaucracy: Identified by Weber.
Hierarchy in organizational model: President/ceo, VPs, Research group, Manufacturing group,
Marketing group, Finance.
Classic model: predictability and reliability, impartiality, expertise, and clear lines of control.
Newer Model: Networked, more flat, flexible, diverse, and global.
The importance of the network results from:
- The new technology age.
- Competitive need for customer needs, changing environments, and demands for
innovation.
- Changing customer expectations.
- Bringing customers and partners closer to experts.
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Flattening of the hierarchy is necessary because
Flexibility to respond to markets and tech
IT makes them less dependent on humans to manage information
Pressure to cut costs
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Need for Flexibility driven by:
Intensifying competition
Increasingly diverse labor force
Increasingly complex and unpredictable external environment
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Diversity is necessary because of
Growing diversity of the workforce
Key factors driving globalization
- Greatly reduced costs of international transportation and communications
- Growing equalization across markets of “advanced factor endowments”
Framework for taking action in the new organization:
- Organizational characteristics: Networked, flat, diverse, global.
- Individual skills: Teamwork, Negotiation, Multitasking, Listening/empathy, Cross-cultural
communication.
- Organizational features: Building team structures, developing incentive systems, workforce
management, conflict resolution systems, cross-border integration.
- Managing the environment: developing alliances, boundary management, learning, stakeholder
relationship building, local responsiveness.
Features of 21st century corporations:
- Management by Web
- More about bits, less about atoms
- Mass customization
- Dependant on intellectual capital
- Global
- Increased speed of actions, deliberations, information
SWOT
Internal
Strengths: factors that give an edge for the company over its competitors.
Weaknesses: Internal factors that create disadvantages and can be harmful if used against the firm
by its competitors
External
Opportunities: Favorable situations which can bring a competitive advantage.
Threats: challenges or unfavorable situations which can negatively affect the business.
Analyze & prioritize the findings: Strengths vs threats, weaknesses vs opportunity.
Develop Strategic Actions:
Maximize strengths, address weaknesses, seize opportunities, mitigate threats.
Mental frames - Blink
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Making sense of the world
Situational awareness
It is nonconscious
Fast
Hollistic
Combines thought & feeling to make effective judgments
Reframing: considering a problem in a diff context.
Multi frame thinking
● Effective managers use multiple frames
● Look beyond the one-dimensional view of an organization
4 Frames:
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Structural frame
Human resources frame
Poltical frame
Symbolic frame
Cognitive Biases: Processing capacity, Cognitive Economizing, Cognitive Biases.
Challenge: too much data, ambiguity, urgency, overload.
Solution: Apply filter, Find the fit, simple answers, short changed analysis.
Risk: Miss stuff, perpetuate false beliefs, mistakes are made, reinforces current biases.