Organizations and Policy
Organizations and Policy PUBP 2030
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This 0 page Study Guide was uploaded by Alejandrin Jaskolski PhD on Monday November 2, 2015. The Study Guide belongs to PUBP 2030 at Georgia Institute of Technology - Main Campus taught by Mary Fox in Fall. Since its upload, it has received 24 views. For similar materials see /class/234329/pubp-2030-georgia-institute-of-technology-main-campus in Law Societies and Justice/ Political Science at Georgia Institute of Technology - Main Campus.
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Date Created: 11/02/15
Pubp 2030 Study Guide Organizations and Environments Day 1 A Domains that constitute environments of organizations a Broad environment i Gov Legal Frameworks 1 National or regional 2 Governmental laws and regulations effect org goals 3 Orgs are subject to lawsuits that can be brought on by customers consumers workers etc General Economic 1 Effects the way an org operates currently inhibits hiring 2 Less peopleresources more goals not being met 3 Size and scope ofpersonnel 4 Material resources Sociocultural l Beliefs norms demographics 2 EX population is aging which makes changing demands and goals 3 Senior care homes continue to be built as other housing is halted iv General political 1 Following 911 many companies scaled bacldreduced holiday spending a Had negative effect on catering orgs V Technological 1 Advances change the way things are done a EX Computerized catalog of inventory b EX Amazon online selling b International context i Turmoil such as Somalia pirates effect shipping orgs etc ii Regulation of trade between countries iii Prevailing currency rates iv International investments 1 Ireland bankruptcy in ponzi scheme V Outsourcing of labor c Other organizations i Education 1 Community colleges provide labor force in regional areas who are often vocationally trained ii Material suppliers 1 Prices as well as resources available to be supplied will affect an organization iii Competitive orgs l Competitors or rivals in services B Schema of GT s organizational environment C Casein Perrow on popular music industry a From l920sl970s ii39 b 39 quot of record r 39 and 39 and J of such c 20 s50 s music industry controlled by 4 major record companies over 3 sales i 8 controlled 96 sales ii Got musicians into long term contracts iii Bribed radio stations to play their music because sales depended on radio air time V Controlled rights to movies that contained hit songs V Firms owned manufacturing for records 1 Manufactured their own records In 1950s changes occurred i Long playing recordscheaper were introduced 1 Lowered cost of production ii Television and advertising 1 Adv Dropped from radio shows and competitors on tv shows 2 Big transferred to tv Small to radio and more independent iii Major 4 discounted rock as a passing fad and as they were falling behind had to adapt Organizations and Environments Day 2 0 Organizations vary in their vulnerability to environmental pressures 0 Analytical dimensions of organizational environments 0 Homogeneityheterogeneity o Stabilityinstability 0 Domain consensusdisensus 0 There are 3 different types of 39 quot quot 39 39 39 39 quot quot 39 isomorphism o Coercive I Force collusion of organizations external pressures to adopt techniques come through government regulation hiring employees 0 Mimetic I Imitation organizations may model each other new organizations model older organizations consulting firms 0 Normative I Aspects of professionalization struggle to define conditions and actually control credentials Organizations and Environments Day 3 1 How may the environment affect the emergence of modern organizations a Arthur Stinchombe in book by Hallstructures processes and outcomes i There is variation in the rate at which modern organizations come to be more prevelant Organizations come to supplant groups such as family or community and that occurs at different rates Literacy is a factor which affects emergence of organizations Raises the likelihood that organizations will arise and be supported in the society 1 When people can read and write there is a facility for them to learn new rolesrights duties obligations Higher literacy rates help to keep records Money and the emergency of currency means that people can de personalize economic exchanges 3 1 ii39 Organizational Change they change because they are dynamic 1 Nature of organizational change a Organizations form alter and dissolve b Environmental change c Change due to change in goals 2 Why organizations may resist change a Issues of i Rulesrelationships 1 In change of management or rule people have decreased sense of what their rights and responsibilities are and to who authority is ii Change and con ict 1 Some individuals have a stake in whatever existing conditions are in place 3 Change and loss ofmeaning a The case of New Coke i Failure led to new love for Coke when classic coke came back 4 Elements involved in successful organizational change a Ideas b Need i When there s a gap between actual and desired performance c Adoption d Implementation 1 Factors that support implementation 1 Sense of urgency a You re going to be left behind if you don t act now 2 Creating a vision of what the org or unit might or could be Change in ways of recruiting CEOs A Pattern a Pattern to going from inside of the firm to going to outsiders people outside of a firm i Used to be like the ultimate promotion advancement B Why a Ways we seek outsiders i Look for people not connected to the firm or the issues and problems of the firm because 1 When the company performs poorly in stock market the boards may be likely to demand that a current CEO resign or be removed and be replaced by an outsider 2 The outsider brings new points of view to the organization and are not tied and loyal to the old ways and people as an old CEO may be 3 Looking for an agent of change b Why emphasis on star power We now emphasize to look for those who are powerful and established already Now looking for someone who is ashier l A charismatic CEO is a determinant of the performance iii Focus on a small number of people who are already CEOs iv away from people who already have knowledge of the rm and it s processes c Is this realistic i If they don t boost the stock prices you nd someone else ii So focus comes to who s running the operation iii Emphasis is on the leader instead of other things that are going wrong C Search process for CEO a Search committee i Consists of a people on board of directors who volunteer 1 They aim to do it as quickly as possible b Speci cation sheet i Create this list of speci cations for a potential CEO ii Speci cation sheets put emphasis on the personal qualities of the candidates 1 High energy progressive articulate signi cant stature manager with take charge management style someone who can motivate and delegate c In practice who quali es as a candidate i The higher you go in a rm the smaller pool of people there are to choose from D Role of search rm a What rm does i Usually used once it has been decided what kind of candidates they want ii This is an outside organization which is hired by the main company iii They are a mediator between the board of directors and the candidates b Why it is viewed skeptically by board of directors i About demonstrating higher performance or stock values as well as the quickness of this investment and you want a yes from a candidate not necessarily the 100 best candidate ii If you re under pressure to make a hire you may not make a wise decision c What does the search rm reveal about the making of a charismatic candidate Adaptations and Transformations Changing Organizational Cultures 0 De ning Culture Change 0 Flamed encompassing substantial change that arises nonspontaneously o real changes in the behavior of people throughout the organization In a technical sense we mean people in the organization identifying with new role model heroes telling different stories to one another spending their time differently on a daytoday basis asking different questions and carrying you different work rituals Culture Change is NOT 0 Spontaneous change Change meant to keep existing culture Examples Promotion of recycling Short term changes in pro t Dimensions of Culture Change 0 Pervasiveness Proportion of affected activities How many members affected How frequently do the changes come up Magnitude Distance between old and new Dimensions of Culture Change Innovativeness Similarity to changes outside the organization Duration Length of change Permanency of change Revolutionary and HIGH HIGH Variable Low Comprehensive S b 39t M d 1 SJLCUUIIIUfg LOW 9mg 0 Variable Variable Cumulative comprehensive HIGH Medium Medium HIGH reshaping Obstacles Fear of the unknown Selfinterest Selective attention Threats to power Lack of trust Fixed investments 0 Resource Limitations This is Bob Bob wants change Analysts are saying his company is depending on the same products year after year to drive sales After the entry of a new competitor Bob s company missed their projected pro ts goal by several million dollars Management is not happy So now it s Bob s job to create a culture of innovation in his department Such moments are the best time to enact culture change Caution or Optimism We need a little of both Change happens but only with con dence At the same time be realistic with the changes Changing existing norms Metaphors Symbols Rituals Rites Creation and Transition Passage Degradation Educating the new guys 0 Collective tactics 0 Training 0 Material 0 Individual tactics o Mentoring Innovative leadership Process Decision to Change Implementation of Change Institutionalization of Change Creating a Multicultural Organization Classics of Organizational Theory Chapter 44 Importance of Multiculturalism Diverse thought processes Example gender diversity over the past 50 years Degrees 25 in 1950 to 54 now to women Larger candidate pool with diversity Organizations working in more team oriented environments Increased response time to environmental changes Objective minimize performance barriers and maximize enhancements Performance Barriers V Enhancements Lower levels of social attraction Lower levels of commitment to the group Discrimination is prevalent Requires extra training to realize potential Bigotry is inherent and some organizational cultures are toxic Pressure on newcomers to assimilate to the culture Values of fairness and respect Improved problem solving Increased creativity amp innovation Increased organizational exibility Improved personnel quality through recruitment amp retention Improved marketing strategies Broader experience base Enhanced critical analysis Increased uidity leads to quicker responses to environment Ways to Affect Change Diversity isn t just achieved through new inputs into the system more diverse hires Change to company structure is imperative for real change to take place more exibility Overcome bigotry so subpar performance and high turnover is reduced more fairness amp respect Understanding the learning curve for diversity not steep Allowing time for learning and acclimation to diversity Make sure actions don t contradict words Institutional Pressures and Strategic Responsiveness Employer Involvement in WorkFamily Issues Jerry D Goodstein Overview Jerry Goodstein focuses on how organizations respond to changing demographics by adopting policies designed to reduce their employees workfamily con ict Goodstein identifies the conditions under which we might expect an organization to respond to changes in its environment by adding new programs and those that might lead an organization to pursue a different strategy He also says that organizations do not always passively comply with external demands nor do they always resist them Institutional Pressures and Strategic Responsiveness The degree of strategic choice organizations can exert in response to environmental conditions is a main concern This is put in two perspectives External Control stressing the importance of environmental constraints such as industry economic and social characteristics in limiting strategic responses 2 Strategic Choice Perspective this emphasizes the ability of organizations to interpret and select their environments responding to relatively fixed constraints and actively modifying other environmental elements Organizations must meet technical constraints and respond to institutional pressures by meeting the demands that regulations norms laws and social expectations place How do organizations strategically respond to institutional pressures and what factors affect organizational responses Organizations may pursue five broad strategies in responding to pressures l Acquiesce fully conform to institutional pressures 2 Compromise partially complying with institutional demands 3 Avoid by quot f uiity r J39 39 quot quotJ and buffering themselves 4 Defiance reject institutional norms or expectations in defiance of institutional pressures 5 Manipulation adopt an aggressive posture toward institutional agents and through manipulation try to actively change or exert power over these pressures What are institutional pressures Oliver defined this in terms of five factors 1 Cause 2 Constituents 3 Content 4 Control 5 Context 1 Cause Cause refers to the underlying rationale or expectations associated with institutional pressures Ex Institutional demands can enhance legitimacy conform to the demands resistance will be difficult 2 Constituents The characteristics of constituent groups create pressure on an organization by groups having con icting objectives The greater extent constituents control the allocation or availability of critical resources for the organization the more difficult resistance to the expectations of those constituents will be 3 Content The content of institutional demands is a critical determinant of organizational responsiveness When the pressures con ict with the goals or constrain the ability of an organization to reach the its goals forcing the allocation of resources to meeting institutional requirements resistance is more likely Ex University reject an institutionalized budgetary process when the process became inconsistent with the goals and interests of the university 4 Control this can determine how organizations respond Institutional pressures are exerted on organizations in two processes 1 Legal Coercion 2 Voluntary Diffusion Conformity to institutional demands is more likely when the norms and expectations have been voluntarily adopted and diffused among organizations 5 Context An organization39s environmental context in regards to uncertainty and interconnectedness shapes organizational responses High environmental uncertainty motivates organizations to attempt to reduce uncertainty by acquiescing to institutional pressures or compromising with key constituent groups The Institutional Context of Employer Involvement in WorkFamily Issues Changes in the demography of the work force such as the rapid increases in the numbers of working mothers and dual incomecareer families Family life and work are no longer separable causing pressures on organizations to change How do organizations respond to institutional pressures related to work and family issues Employer adoption of workfamily issues Child Care Benefits Providing fully or partially subsidized onsite child care Directly financing employee child care expenses through contracts with external organizations Providing child care information and referral services that link employees to child care providers Enhance Workplace Flexibility Flextime Voluntary shifts to parttime work Job sharing Flexible leaves Reagan Administration s Efforts Economic Recovery Tax Act of 1981 The federal government provided employers with the opportunity to create dependent care assistance plans It provided for an increase in the credit available to taxpayers for daycare expenses necessary to their employment Created depreciation bene ts for employers creating onsite or nearby child care centers for employees children A second tax change was passed to foster the development of exible bene t plans The plan allowed employers to set aside part of an employee s salary and place those pretax dollars into an account that could be used to pay for various bene ts like child care Case Study Examines the strategies organizations adopt in response to institutional norms and pressures Uses archival and survey data from the Washington State Employment Security Department The survey was administered in 1989 to a random sample of 3225 private and public sector establishments with ten or more employees Methods Used Used the critical factors characterizing institutional pressures Cause Organization Size Constituents Percentage of female employees Content public sector organizations Control 1 Industrysame county diffusion 2 Other industriessame county diffusion 3 Same industry other counties diffusion Context total business professional and membership organizations Findings Large organizations are more likely than small ones pursue responsive strategies The nature of dependencies on key institutional constituents in particular female employees is a critical determinant of employer adoption of workfamily bene ts The diffusion of norms or structures across organizations increases the likelihood that non adopters will conform to prevailing practices The expectation of signi cant bene ts from offering child care services and a high level of knowledge about such services motivate employers to conform to institutional pressures Conformity to institutional pressures is more likely to occur in industry groups in which unemployment among women is relatively low Summary of Findings Organizations do not respond uniformly to institutional pressures instead they adopt varying strategies that depend on the nature of the institutional pressures placed on them Great Groups 0 Great Groups are collections of people achieving more than each individual does on hisher own 0 What do great groups have in common 0 People are intensely focused on solving problems they are given 0 Work is often done in simple environments 0 Great Groups have strong visionary leaders who are on the same level as other members 0 Often have someone who protects the group from the outside 0 Members relieve tension in humorous ways 0 Leaders of Great Groups 0 Hires people with great talent and an ability to work with others 0 Constantly chases a dream and articulate it other members 0 Cultivates creativity I Allow members to do their own work I Allow people to make mistakes 0 Gives meaning to members work 0 Unites members against a common enemy goal I Gives the group s goal importance 0 Facilitate spread of ideas 0 Encourage dissent or disagreement defends against groupthink 0 Allow groups members to discover their own greatness o EX Misner says that Disney aspires to be a place in which people feel safe to fail 0 Members of Great Groups 0 Members tend to be young people who think anything is possible 0 Embrace new technology and are curious 0 Want to be led by someone who inspires them 0 Do now want to be told what to do want to do what they are good at 0 People in great groups are tinkerers 0 End of a Great Group 0 Many Great Groupds die when its project is completed 0 Some eXmembers become depressed because nothing else is as exciting 0 Members generally have no regrets Examples of Great Groups 0 TROUP DISNEY o What makes Disney so successful I Ability to move its childoriented merch And to involve adult consumers willingly in the lucrative process Monopoly on animated film industry CREATIVE COLLABORATION o Allows the generation and development of more ideas than could be created by any one individual 0 MORE MINDS MORE IDEAS Disney recruited only the best and most skilled laborers in the industry Provided training and other tools necessary to enable workers to reach full potential Embraced new technology and then advanced it I Looked forward towards the future I LEADER Characteristics 0 Able to rally troops Optimistic in the face of skepticism Purveyors of hope not necessarily voices of reason Passionate Able to plan for what has not yet happened Motivator busy bee Did not micromanage freeing time to inspire communicate and choose Keep staff s level of aspiration high 0 Point the group in the right direction facilitate 0 Choose the best idea I Work environment 0 Staffers were highspirited Policy of creative freedomfew restraints Rampant perfectionism Personal lives were often neglected Tasks are performed with zeal Harsh conditions outweighed by advantages 0 Great Group PARC o Charismatic leadership I Bob Taylor Head of Computer Science Laboratory 0 Innovation and Creativity 0 Four Pillars I Recruitment 0 First and foremost at PARC 0 Great Groups begin with great networks 0 Fill GG with Great Members 0 Creators may need to hire those better than themselves I Act as their own assassins 0 Collaboration amongst members is KEY I Structure 0 Nonpyramidal structure 0 All members are EQUAL and report to one manager I Compare this to the hierarchical structure typical of a traditional bureaucratic organization I Less micromanagement of proj ects allows for creativity and natural selection of best ideas I Communication 0 Sharing information is essential to GG 0 Weekly meetings ensured communication I Members gathered to share their current research and submit it to the scrutiny of their peers I Exposes new information that may be useful to future projects 0 No organization works beyond the size you can get all the principals you can get together in a room and thrash out the issues before you go home I Tools 0 Self creation of proper tools 0 Avoided having to avoid frustration of working with inferior and inappropriate technology created by others 0 Cuttingedge technology a factor in success 0 Refusal to accept less than the best resources and tools 0 Skunk Works 0 Formed in 1943 by Kelly Johnson of Lockheed Martin 0 Leaders I Kelly Johnson 0 Was a visionary in designing airplanes and organizing genius o Knew what talented people needed to do their work most efficiently Be quick be quiet and be on time Commandandcontrol leadership style Authoritarian leader Known for bad temper bullying Philosophy of management to lead people not to drive them 0 Kelly s 14 Rules 1 The Skunk Works manager must be delegated practically complete control of his program in all aspects He should report to a division president or higher 2 Strong but small project offices must be provided both by the military and industry 3 The number of people having any connection with the project must be restricted in an almost vicious manner Use a small number of good people 10 to 25 compared to the socalled normal systems 4 A very simple drawing and drawing release system with great exibility for making changes must be provided 5 There must be a minimum number of reports required but important work must be recorded thoroughly 6 There must be a monthly cost review covering not only what has been spent and committed but also projected costs to the conclusion of the program Don39t have the books ninety days late and don t surprise the customer with sudden overruns 7 The contractor must be delegated and must assume more than normal responsibility to get good vendor bids for subcontract on the project Commercial bid procedures are very often better than military ones 8 The inspection system as currently used by the Skunk Works which has been approved by both the Air Force and Navy meets the intent of existing military requirements and should be used on new projects Push more basic inspection responsibility back to subcontractors and vendors Don39t duplicate so much inspection 9 The contractor must be delegated the authority to test his nal product in ight He can and must test it in the initial stages If he doesn39t he rapidly loses his competency to design other vehicles 10 The speci cations applying to the hardware must be agreed to well in advance of contracting The Skunk Works practice of having a speci cation section stating clearly which important military speci cation items will not knowingly be complied with and reasons therefore is highly recommended 11 Funding a program must be timely so that the contractor doesn39t have to keep running to the bank to support government projects 12 There must be mutual trust between the military project organization and the contractor with very close cooperation and liaison on a daytoday basis This cuts down misunderstanding and correspondence to an absolute minimum 13 Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures 14 Because only a few people will be used in engineering and most other areas ways must be provided to reward good performance by pay not based on the number of personnel supervised 0 Ben Rich 0 Hand picked as Kelly Johnson s replacement 0 As a Great Groups Generalist I Securing and attainment of planned results in present Developing an organization capable of producing technical achievements and human satisfaction Making a distinctive personal contribution Flaming and executing policy decisions affecting future decisions strategy Example Ben Rich Leadership ability polished at the Harvard Business School Managed greatness with a lighter touch Rich was described as the perfect manager allowing workers to do their own thing while smoothing the way with Lockheed management and the Air Force Rich s group was more open to nonconventional approaches encouraging creativity and innovation more relaxed atmosphere Organizational Transformation compared to organizational change They are not merely the same thing A What are involved in Organizational Transformation a Involved planned alteration in core elements of the organization i Changes such as alteration in goals authority decision making practices policies not merely change IN CORE ELEMENTSintentional ii Involves values and beliefsparts of culture must be altered characteristics of current culture place restraints upon potential of transformation b Involves visions of a different future visionary futures of different possibilities and changes that help specify the way an organization thinks about clientscustomers services it renders strategic alliances that the organization may have etc B Key factors that facilitate Organizational Transformation a Leadership i It can shape organizational visions implement change make decisions and allocate resorces ii Leaders can send signals and messages and have capacity to implement change b Identifying engaging and involving those who have stakes in the present and the future within the organization and how they might be involved in designing activities for the transformation of the organization seminars retreats gt feedback loop c IncentivesReward Structureif incentives are provided sense of risk reduced and behaviors in line with transformation are recognized d Gaining support from outside the organization e Long term 1 Efforts can and do fail but transformation is a long term process Newer economy and changes in organizations of work A Characteristics of older economy a Built around manufacturing b Geared towards standardized productionfactories c Organizations were hierarchical placesgoals and positions authority etc i Focus on reduces costs and higher productivity d Market places tended to be national B Changes in corporations a Powell i Downsizing of corporations reduction of workforce within an organization even formerly safe jobs amp positions In mid 1990 s ATampT reduced workforce by 4000 and VP of Human Relations said People need to look at themselves as selfemployed vendors who come to company to sell their skills ATampT has to promote the concept of whole workforce being contingent and on shortterm contract No promises Jobs are being replaced by projects and elds of work Implications for employees and organizations lower attachment between work and employee discarding concept of what had been known as jobs and packaging them in different formshuge change in economy of corporation ii Globalization corporations going global rather nationalregional Many think this contributes to nancial uncertainty but Powell counters that the majority of jobs effected are in manufacturing which the global economy has little effect on C Changes in ways of organizing work a Shift from jobs to projectbased work b Implications for employees and organizations 39 Lower attachment between work and employee Discarding concept of what had been known as jobs and packaging them in different forms ii39 Projects especially assessed on basis ofresults and outcomes iv Affects hierarchy because hiring outside expertise blurring boundaries between firm and outside i39 v Crossfertilization among organization in range of skill areas and industries vi Gap widened between rich and poor vii Less stability and lower uncertainty for future changes notion of commitmentnow shortterm versus longer not based on given organizations employer viii Model of being on the go with more geographic mobility ix Notion of coworkerscolleagues changes could be good x Higher risk possibly marr potential x39 All indicators for future of organizations if present trends continue Technology and Reengineering 0 To reengineer using technology a company must 0 Think about information technology as a means to a competitive advantage Overcoming Deductive thinking 0 Deductive thinking is addressing an existing problem and trying to fix it known as automation 0 Must think INDUCTIVELY 0 New technologies must be created not only to solve a current problem but as an exploratory measure in which new needs may be seen 0 Once the tech is created a problem or inconvenience that people did not realize they had can be solved 0 People might not realize that something is convenient or necessary for future life until they have it
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