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Bus 302: Ch 5

The Organizational Alignment Model See diagram
The Organizational Alignment Model: Task (definition) each task has different characteristics which means each one requires people with different educational backgrounds, knowledge bases and skills
The Organizational Alignment Model: Task (parts) Differentiation, integration, interdependence
The Organizational Alignment Model: Task: Interdependence types 1) Pooled: Each department can pursue achievement of goals independently (department store) 2) Sequential: 1 group must complete task before other starts (manufacturing) 3) Reciprocal: the output of each becomes the input of others (technology systems)
The Organizational Alignment Model: Coordination (definition) how to coordinate the various types of interdependence. Need to deal with conflict upfront
The Organizational Alignment Model: Coordination (for each interdependence) 1) for simplest interdependence: standardization by rules and budgets 2) for sequential: plans and schedules 3) reciprocal: special structural integrating roles such as project managers and coordinating mechanisms such as task forces
The Organizational Alignment Model: Structure Systems (structure definition) the set of relationships between people in an organization and communicates to members what behavior is expected of them, what tasks to do, what not to do, with whom to work with, whom to obey, and whom to direct
The Organizational Alignment Model: Structure Systems admin should fit the needs of the company, not the other way around. For best results need fit/alignment between people and the jobs they do.
The Organizational Alignment Model: Structure Systems: Selection/ Recruitment Selection/Recruitment: effects pool of knowledge, skills and attitudes P-J fit: person-job fit, P-O fit: person-organization fit
The Organizational Alignment Model: Structure Systems: Appraisal Process core purposes a)to communicate standards of performance b)to provide feedback on how well one is doing against expectations c)to identify areas of development need and develop a plan of remedy d)to provide info and docs for decisions about salary, promotion,etc.
The Organizational Alignment Model: Structure Systems: Rewards intrinsic (those that come from doing job) and extrinsic (tangible) In design, 4 considerations: Are they sufficient? Are they equitable? Are they competitive? DO they motivate the right task behavior or do they create disincentive?
The Organizational Alignment Model: Environment social, political, economic institutions, technology, and national culture (how things should be done)
The Organizational Alignment Model: Alignment in Different Cultural Contexts: 3 types of cultural norms cultural-normals (typical or average person of the culture) hyper-normals (people who believe and strongly follow the values of the culture) marginal (those who believe less strongly, or differently)
The Organizational Alignment Model: Alignment in Different Cultural Contexts: conception of structure positions in a company are ordered in terms of task requirements and relationships between position in any way instrumental to achieving organizational objectives
The Organizational Alignment Model: Alignment in Different Cultural Contexts: social conception positions were defined in terms of social status and authority and relationships were hierarchical
The Organizational Alignment Model: Alignment in Different Cultural Contexts: business imperatives tasks that must be done well in order for the firm to make money
Strategies in Global Organizations corporate, business, international, and functional strategies
Corporate Strategy (diversified companies) decide what businesses to engage in, and how these businesses should be managed to create value…also says what the company does and doesn’t do
Business strategy (Competitive strategy): how a company creates competitive advantage by offering a better value 2 Options: Porters or Hax & Wilde
Business strategy: Porter 1) cost leadership (wal-mart) 2) differentiation (volvo=safety) 3) focus strategy (narrow niche)
Business strategy: Hax & Wilde 1) best product (low cost or differentiation) 2) total customer solutions (bundling product and service) 3) system lock-in (Microsoft & XP & apps made by other co. for XP)
Business Models how a firm creates value and earns a profit in a competitive environment
Global integration minimize duplication of functions, ie: placing specific value chain activities in most suitable locations in order to capitalize on the competitive advantage of a particular area
local responsiveness tailor business model and system to adapt to needs of specific market…4 things promote localization strategy: nontariff barriers, local requirement on product standards, foreign exchange shortages, cultural differences that influence customer taste
global learning transfer and sharing of ideas and knowledge among units
International Strategy Choices 1) Global strategy 2) Transnational Strategy 3) International Strategy 4) Multidomestic Strategy
International Strategy Choices: global strategy co that follows a strategy that is highly dependent on global integration for many of its value chain activities and that is locally responsive for a few of them, high degree of complex interdep among subsidiaries, structure that is tightly controlled
International Strategy Choices: multidomestic strategy minimally dependent on global integration but highly on local responsiveness for value chain activities…tailor strategy, product, etc. to local, but doesn’t optimize global efficiency
International Strategy Choices: international strategy: depend minimally on global integration AND local responsiveness.... replicates home market systems in each foreign subsidiaries
International Strategy Choices: transnational strategy: both globally integrated and locally responsive
new market entry modes 1) exporting, licensing technology 2) wholly owned businesses or subsidiaries 3) equity joint ventures, strategic alliance
Created by: mbarnum3
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