Mgmt & Org Behavior
Mgmt & Org Behavior MGMT 3140
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Chapter 6 What is Global Environment Global Organization an organization that operates and competes in more than one country Operating in the global environment is uncertain amp unpredictable bc it is complex and changes constantly It is important for managers to develop a global perspective as they strive to increase organizational efficiency amp effectiveness A global environment the set of global forces and conditions that operate beyond an organizations boundaries but affect a manager39s ability to acquire and utilize resources A These forces change over time which present manager w opportunities amp threats A Opportunities new technology new global markets lowcost components A Threats economic recession oil shortage A To identify threats amp opportunities gt Task environment amp general environment Forces in Global Environment A General T 39 t A T 39 forces quot Economic forces A Task Environment A Competitors Distributors Customers Suppliers A The organization u forces D 39 forces Political amp legal forces 1 Task environment the set of forces and conditions that orginate with suppliers distributors customers and competitors and affect an organization39s ability to obtain inputs and dispose of its outputs because they influence managers daily General Environment the wideranging global economic technological sociocultural demographic political and legal forces that affect an organization and its task environment However changes in these forces can have major impacts on managers and their organizations THE TASK EVNIRONMENT Suppliers individuals and organizations that provide an organization with the input resources it needs to produce goods and services global outsourcing the purchase or production of inputs or nal products from overseas suppliers to lower costs and improve product quality or design Foxconn amp Apple It has grown enormously to take advantage of national differences in the cost amp quality of resources Distributors organizations that help other organizations sell their goods or services to customers Price fixing they collaborated to keep prices high Customers individuals and groups that buy the goods and services an organization produces 1 Individuals 2 small companies 3 large companies 4 government agencies Competitors organizations that produce goods and services that are similar to a particular organization39s goods and services potential competitors organizations that presently are not in a task environment but could enter if they so choose When new competition enters the market the competition increases and pro t amp prices decrease barriers to entry factors that make it difficult and costly for an organization to enter a particular task environment or industry Equot economies of scale cost advantages associated with large operations Buying in bulk manufacturing products in large quantities 2 brand loyalty customers39 preference for the products of organizations currently existing in the task environment 3 Government regulations The General Environment economic forces interest rates in ation unemployment economic growth and other factors that affect the general health and well being of a nation or the regional economy of an organization Technology the combination of skills and equipment that managers use in designing producing and distributing goods and services technological forces outcomes of changes in the technology managers use to design produce or distribute goods and services sociocultural forces pressures emanating from the social structure of a country or society or from the national social structure the traditional system of relationships established between people and groups in a society or from the national culture national culture the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society demographic forces outcomes of changes in or changing attitudes toward the characteristics of a population such as age gender ethnic origin race sexual orientation and social class political and legal forces outcomes of changes in laws and regulations such as deregulation of industries privatization of organizations and increased emphasis on environmental protection Globalization the set of specific and general forces that work together to integrate and connect economic political and social systems across countries cultures or geographical regions so that nations become increasingly interdependent and similar A Human Capital the ow of people around the world through immigration migration amp emigration A Financial Capital the flow of money capital across world markets through overseas investment A Resource Capital the flow of natural resources parts and components bw companies amp countries A Political capital the ow of power amp in uence around the world using diplomacy Declining Barriers to Trade and investment Tariff a tax that a government imposes on imported or occasionally exported goods freetrade doctrine the idea that if each country specializes in the production of goods and services that it can produce most efficiently this will make the best use of global resources GATT General Agreement on Tariffs and Trade which is a treaty that accepted freetrade doctrine and removal of barriers to the free flow of goods services and capital bw countries Effects of free trade on Managers 1 The lowering of barriers to trade amp investment and the decline of istance and culture barriers has created enormous oppornities for companies to expand the maket for good amp services through exports amp investments in overseas countries 2 Regional Trade Agreements North American Free Trade Agreement NAFTA opportunities amp threats for managers amp organizations National Culture Values ideas about what a society believes to be good right desirable or beautiful orms unwritten informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organizations Mores norms that are considered to be central to the functioning of society and to social life Folkways the routine social conversations of everyday life Greet Hofstede A psychologist for IBM that collected data on employee values amp norms from more than 100000 IBM workers in 64 countries based on his research Individualism ltgt Collectivism Low Power distance ltgt High power distance Achievement orientation ltgt Nurturing orientation Low uncertainty avoidance ltgt High uncertainty avoidance Shortterm orientation lt gt Longterm orientation Individualism a worldview that values individual freedom and selfexpression and adherence to the principle that people should be judged by their individual achievements rather than by their social background Collectivism a worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group power distance the degree to which societies accept the idea that inequalities in the power and wellbeing of their citizens are due to differences in individuals39 physical and intellectual capabilities and heritage A High power gt Gap for inequalities are big which opens up a big gap bw rich amp poor A Low power gt No inequalities are allowed which is good for the poor Taxation amp social welfare programs to help the poor achievement orientation a worldview that values assertiveness performance success and competition nurturing orientation a worldview that values the quality of life warm personal friendships and services and care for the week uncertainty avoidance the degree to which societies are willing to tolerate uncertainty and risk A Low uncertainty gt USA amp Hong Kong easygoing value diversity amp tolerate differences in personal beliefs and actions A High uncertainty gt Japan amp France more rigid amp skeptical about people whose behaviors or beliefs differ from the norm longterm orientation a worldview that values thrift and persistence in achieving goals shortterm orientation a worldview that values personal stability or happiness and living for the present Chapter 7 decision making the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action A Decisions is response to opportunities occur when managers search for ways to improve organizational performance A Decision making in response to threats occur for ways to improve for ways to increase performance programmed decision making routine virtually automatic decision making that follows established rules or guidelines non programmed decision making non routine decision making that occurs in response to unusual unpredictable opportunities and threats Intuition feelings beliefs and hunches that come readily to mind require little effort and information gathering and result in onthespot decisions reasoned judgement a decision that requires time and effort and results from careful information gathering generation of alternatives and evaluation of alternatives The Classical Model classical decisionmaking model a prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action optimum decision the most appropriate decision in light of what managers believe to be the most desirable consequences for the organization The Admin Model administrative model an approach to decision making that explains why decision making is inherently uncertain and risky managers usually make satisfactory rather than optimum decisions 3 important concepts bounded rationality incomplete information amp satificing A Uncertainty amp risk Ambiguous information Time constraints amp info costs gt Incomplete Info bounded rationality cognitive limitations that constrain one39s ability to interpret process and act on information Risk the degree of probability that the possible outcomes of a particular course of action will occur Uncertainty unpredictability or probabilities of alternative outcomes can39t be determined amp future outcomes are unknown ambiguous information information that can be interpreted in multiple and often conflicting ways 6 STEPS IN DECISION MAKING PROCESS 1 Recognize the need for a decision 2 Generate Alternatives 3 Assess Alternatives A Legality no voilations of the law A Ethicalness It must be ethical A Economic feasibility accomplish organizational goals A Practicality capable of resources required to implement the alternatives 4 Choose among Alternatives 5 Implement the chosen alternative 6 Learn from feedback Satisficing searching for and choosing an acceptable or satisfactory response to problems and opportunities rather than trying to make the best decision Cognitive Biases amp Decisionmaking Priorhypothesis representativeness Illusion of control Escalating commitment gt Cognitive Biases Heuristics rules of thumb that simplify decision making systematic errors errors that people make over and over that result in poor decision making priorhypothesis bias a cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that beliefs are wrong representativeness bias a cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode Example Book day illusion of control a source of cognitive bias resulting from the tendency to overestimate one39s own ability to control activities and events Top managers are prone to this bias overestimating abilities escalating commitment a source of cognitive bias resulting from the tendency to commit additional resources to a project even if evidence shows that the project is falling Example Sony39s Betamax Groug Decision Making Groupthink a pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision 2 techniques are known to counteract groupthink amp cognitive biases Devil39s advocacy amp dialectic inquiry devil39s advocacy critical analysis of a preferred alternative made in response to challenges raised by a group member who playing the role of devil39s advocate defends unpopular or opposing alternatives for the sake of argument One member is always play the role of devil39s advocacy Purpose identify all the reason that might make the preferred alternative unacceptable after all Devil39s advocacy gt Present chosen alternative critique chosen alternative reassess chosen alternative Dialectical lnquiry gt Present alternative 1 amp 2 Debate bw alternatives Reassess alternatives Another way to improve group decision making is to promote diversity in decision making groups dialectical inquiry critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt Organizational Learning amp Creativity organizational learning the process through which managers seek to improve employees39 desire and ability to understand and manage the organization and its task environment learning organization an organization in which managers in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place Creativity a decision maker39s ability to discover original and novel ideas that lead to feasible alternative courses of action Creating Learning organization 1 Personal Mastery empower employees amp allow them to experiment create amp explore what they want 2 Complex Mental Modes Allow employees a sophisticated way of thinking that challenge them to find new or better ways of performing a task 3 Team Learning learning that takes place in a group or team 4 building a shared vision a common mental model that all organizational members use to frame problems 5 systems thinking emphasize to create a learning organization managers must recoginze the effects of one level of learning on anoher Promoting Group creativity Brainstorming the nominal group technique Delphi technique Brainstorming a group problemsolving technique in which managers meet facetoface to generate amp debate a wide variety of alternatives from which to make a decision production blocking a loss of productivity in brainstorming sessions due to the unstructed nature of brainstorming nominal group technique a decision making technique in which group members write down ideas and solutions read their suggestions to the whole group and discuss and then rank the alternatives delphi technique a decisionmaking technique in which group members do not meet facetoface but respond in writing to questions posed by the group leader Entrepreneurship amp Creativity Entrepreneur an individual who notices opportunities and decides how to mobilize the resources necessary to produce new and improved goods and services 80 of small businesses fail 38 amp 50 of men amp wom n want to start their own business Characteristics of Entrepreneurs openness to experience and have internal locus of control social entrepreneur an individual who pursues initiatives and opportunities and mobilizes resources to address social problems and needs in order to improve society and wellbeing through creative solutions Intrapreneur a manager scientist or researcher who works inside an organization and notices opportunities to develop new or improved products and better ways to make them Entrepreneurship the mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services product champion a manager who takes quotownershipquot of a project and provides the leadership and vision that take a product from the idea stage to the final customer Skunkworks a group of intrapreneurs who are deliberately separated from the normal operation of organization to encourage them to devote all their attention to developing new products Rewards for innovation To encourage managers to do great job on their products through reward Chapter 8 Planning identifying and selecting appropriate goals and courses of action Strategy A cluster of decisions about what foals to pursue what actions to take and how to use resources to achieve goals Mission Statement A broad declaration of organization39s purpose that identifies the organization39s products and customers and distinguishes the organization from its competitors 3 Steps in planning 1 Determining the organization39s Mission amp Goals Define the business amp Establish major goals 2 Formulating Strategy Analyze current situation amp develop strategies 3 Implementing strategy allocate resources amp responsibilities to achieve strategies Why Planning is important 1 Planning is necessary to give the organization a sense of direction amp purpose 2 Planning is useful way of getting managers to participate in decision making about the appropriate goals amp strategies for an organization 3 A plan helps coordinate managers of the different functions and divisions of an organization to ensure that they all pull in the same direction and work to achieve its desired future state 4 A plan can be used as a device for controlling manager within an organization Henri Fayol said effective plans have 4 qualities Unity that any time only one centeral guiding plan is put into operation to achieve goal one or more plan would cause confusion amp disorder Continuity planning is ongoing process Accuracy amp flexible Levels of Planning 3 Levels of management Corporate CEO amp Chairman Business or division different divisions Functional Level or department HRM amp RampD managers Levels amp types of planning Corporatelevel plan Top management39s decisions pertaining to the organization39s mission overall strategy and structure Corporatelevel strategy A plan that indicates which industries and national markets an organization intends to compete Businesslevel plan Divisional managers39 decisions pertaining to divisions39 longterm goals overall strategy and structure businesslevel strategy a plan that indicates how a division intends to compete against its rivals in an industry functionallevel plan functiona mangers39 decisions pertaining to the goals that they propose to pursue to help the division attain its businesslevel goals functionallevel strategy a plan of action to improve the ability of each of an organization39s functions to perform its taskspecific activities in ways that add value to an organization39s goods and services scenario planning the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of hose conditions Time Horizons of Plans Time horizon The intended duration of a plan Longterm plan 5 years or more Intermediateterm plans 1 to 5 years Shortterm plan 1 year or less Rolling plan A plan that is updated amp amended every year to take account of changing conditions in the external environment Standing Plans used in situations in which programmed decisionmaking is appropriate Singleuse plan developed to handle non programmed decision making or oneofakind situations Scenario Planning known as contingency planning is the generation of multiple forecasts of future conditions followed by analysis of how to respond effectively to each of those situations Determining the organization39s Mission amp Goals Define the business Mission statement Who are our customers What customer needs How we satisfying the customer strategic leadership the ability of the ceol and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates strategy formulation the development of a set of corporate business and functional strategies that allow an organization to accomplish its mission and achieve its goals Formulating Strategy Strategy formulation The development of a set of corporate business and functional strategies that allow an organization to accomplish its mission amp achieve its goals SWOT analysis a planning exercise in which managers identify organizational strengths S weaknesses W environmental opportunities 0 and threatsT The Five Forces Model Micheal poiter39s five forces model as major threats bc they affect how much profit organizations competing withing the same industry The level of rivalry among organizations in an industry The potential for entry into an industry The power of large suppliers The power of large customers The threat of substitute products 5quotny hyper competition permanent ongoing intense competition brought about in an industry by advancing technology or changing customer tastes Formulating Businesslevel strategies 2 basic ways of increasing profit amp organization39s products differentiating a product amp lowering the costs of making the product lowcost strategy driving the organization39s costs down below the costs of its rivals differentiation strategy distinguishing an organization39s products from the products of competitors on dimensions such as product design quality or after sales service focused lowcost strategy serving only one segment of the overall market and trying to be the lowest organization serving that segment focused differentiation strategy serving only one segment of the overall market and trying to be the most differentiated organization serving that segment concentration on a single industry reinvesting a company39s profits to strengthen its competitive position in its current industry Formulating Corporatelevel Strategies Plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its mission and goals vertical integration expanding a company39s operations either backward into an industry that produces inputs for its products forward into an industry that uses distributes or sells its products Forward vertical integration example apple with their apple products because they retail their items diversification expanding a company39s business operations into a new industry in order to produce new kinds of valuable goods or services related diversification entering a new business or industry to create a competitive advantage in one or more of an organization39s existing divisions or businesses Synergy performance gains that result when individuals and departments coordinate their actions unrelated diversification entering a new industry or buying a company in a new industry that is not related in any way to an organization39s current businesses or industries Portfolio strategy is apportioning financial resources among divisions to increase financial returns or spread risks among different businesses much as individual investors do with their own portfolios International Expansion global strategy selling the same standardized product and using the same basic mareting approach in each national market multidomestic strategy customizing products and marketing strategies to specific national conditions Choosing a way to expand internationally Exporting making products at home and selling them abroad Importing selling products at home that are made abroad licensing allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region i return for a negotiated fee Franchising selling to a foreign organization the rights to use a brand name and operating a knowhow in return for a lumpsum payment and a share ofthe profits strategic alliance an agreement in which managers pool or share their organization39s resources and know how with a foreign company and the two organizations share the rewards and risks of starting a new venture joint venture a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business wholly owned foreign subsidiary production operations established in a foreign country independent of any local direct involvement Chapter 9 4 ways to create a competitive advantage 1 Achieve superior efficiency 2 Achieve superior quality 3 Achieve superior innovation speed ampfexibiity 4 Achieve responsiveness to customers Functional strategies amp Value Chain Management functionallevel strategy a plan of action to improve the ability of each of an organization39s functions to perform its taskspecific activities in ways that add value to an organization39s value to an organization39s goods and services value chain the coordinated series or sequence of functional activities necessary to transform inputs such as new product concepts raw materials component parts or professional skills into the finished goods or service customers value and want to y Functional Activities amp Value chain Product development function gt Marketing function gt Materials management function gtProduction function gt Sales function gt Customer Service function gt Feedback Loop New product ideas gt people39s abilities amp knowledge gt good amp services Marketing research gt machines computers gt goods amp services Component parts gt functional skills gt good amp services value chain management the development of a set of functionallevel strategies that support a company39s businesslevel strategy and strengthen its competitive advantage customer relationship management CRMA technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time Improving responsiveness to customers What do customers want A Lower price to a higher price A Highquality products A products with many useful features A customized produc Customer relationship management CRM a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time 3 interconnected components sales amp selling aftersales service amp support amp marketing Improving Quality total quality management a management technique that focuses on improving the quality of an organization39s products and services Increased quality gt Increased reliability amp productivity gt Higher profits 10 TQM STEPS Build organizational commitment to quality Focus on customer Find ways to measure quality Set goals amp create incentives Solicit input from employees identify defects amp trace them to their source introduce justintime inventory systems work closely with suppliers Design ease of productions 50905 F7 Fquot39gtWN 10 Break down barriers bw functions Inventory the stock of raw materials inputs and component parts that an organization has on hand at a particular time justintime JIT inventory system a system in which parts or supplies arrive at an organization when they are needed not before six sigma a technique used to improve quality by systematically improving how value chain activities are performed and then using statistical methods to measure the improvement Improving efficiency facilities layout the strategy of designing the machineworker interface to increase operating system efficiency 3 basic ways of arranging workstations product layout process layout fixed position layout Product layout Machines are organized so that each operation needed to manufacture a product or process a patient is performed at workstations arranged in fixed sequence Process layout workstations aren39t organized in a fixed sequence Fixedposition layout the product stays in a fixed position flexible manufacturing the set of techniques that attempt to reduce the costs associated with product assembly process or the way services are delivered to customers process reengineering the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical measures of performance such as cost quality service and speed Improving Innovation 1 quantum product innovation the development of new often radically different kinds of goods and services because of fundamental shifts brought about by pioneering discoveries 2 incremental product innovation the gradual improvement and refinement of existing products that occurs over time as existing technologies are perfected Strategies to promote Innovation amp speed product development product development the management of the value chain activities involved in bringing new or improved goods and services to the market Involve both customers amp suppliers stagegate development funnel a planning modal that forces managers to choose among competing projects so organizational resources are not spread thinly over too many projects 3 stages Ideas product development plan amp ship takes 6 months to 10 years product development plan a plan that specifies all ofthe relevant information that managers need in orfer to decide whether to proceed with a fullblown product development effort contract book a written agreement that details product development factors such as responsibilities resource commitments budgets time lines and development milestones Crossfunctional teams core members the members of a team who bear primary responsibility for the success of a project and who stay with a project from inception to completion CHAPTER 10 organizational architecture the organizational structure control systems culture and human resource management systems that together determine how efficiently and effectively organizational resources are used Organizational Culture shared set of beliefs values and normas that influence how people amp groups work together to achieve organizational goals organizational structure a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals organizational design the process by which managers make specific organizing choices that result in a particular kind of organizational Motivate amp coordinate managers The design of organizational structure is made up of organizational environment technologytask analyzability is the degree to which programmed solutions are available to people or functions to solve the problems they encounter amp Task Variety is the of new or unexpected problems or situations that a person or function encounters in performing tasks orjobs Human resources strategy Grouping tasks into jobs job design the process by which managers decide how to divide tasks into specific jobs job simplification the process of reducing the number of tasks that each worker performs job enlargement increasing the number of different tasks in a given job by changing the division of labor job enrichment increasing the degree of responsibility a worker has over his or her job Thejob characteristics Model Skill Variety Task identity Task Significance Autonomy Feedback Hackman amp Oldham argue these 5 job characteristics affect employee39s motivation blc they affect 3 critical psychological states Motivation performance amp satisfaction functional structure an organizational structure composed of all the departments that an organization requires requires to produce its goods or services Divisional structure product market amp geographic divisional structure an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customers product structure an organizational structure in which each product line or business is handled by a self contained division geographic structure an organizational structure in which each region of a country or area of the world is served by a selfcontained division market structure an organizational structure in which each kind of customer is served by a selfconstrained division also called customer structure matrix structure an organizational structure that simultaneously groups people and resources by function and by product 2boss employee one functional boss amp one product team boss product team structure organizational structure in which employees are permanently assigned to a cross functional team and report only to the product team manager or to one of his or her direct subordinates Differs than matrix structure 1 it does away w 2boss employee to report to 2 functional employees are permanently assigned to a crossfunctional team that is empowered to bring a new product to market crossfunctional team a group of managers brought together from different departments to perform organizational tasks Allocating Authority authority the power to hold people accountable for their actions and to make decisions converning the use of organizational resources hierarchy of authority an organization39s chain of command specifyinf the relative authority of each manager span of control the number of subordinates who report directly to a manager Tall organization has many levels of authority relative to company size Flat organization has fewer levels relative to company size decentralizing authority giving lowerlevel managers and non managerial employees the right to make important decisions about how to use organizational resources Allows an organization and its employees to bheave in a flexible way even as the organization grows taller Integrating amp coordinating mechanisms integrating mechanisms organization tools that managers can use to increase communication and coordination among functions and divisions Liaison roles giving one manager in each function or division the responsibility for coordinating w eachother task force a committee of managers from various functions or divisions who meet to solve a specific mutual problem also called ad hoc committee organizational culture the shared set of beliefs expectations values and norms that influence how members of an organization relate to one another and cooperate to achieve organizational goals organizational ethics the moral values beliefs and rules that establish the appropriate way for an organization and its embers to deal with each other and with people outside the organization Organizational ethics the employment relationship organizational structure charcterstics of organizational member gt organizational culture Adaptive cultures those whose values amp norms help an organization to build momentum amp to grow and change as needed to achieve its goals and be effective Inert cultures values amp norms fail to motivate amp inspire employees Chapter 11 Organizational control Importance obtain superior efficiency quality responsiveness to customers amp innovation which are 4 building blocks of competitive advantage control systems forma targetsetting monitoring evaluation and feedback systems that provide managers with information about how well the organization39s strategy and structure are working 3 types of controls 1 feedforvvard control control that allows managers to anticipate problems before they arise 2 concurrent control control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise 3 feedback control control that gives managers information about customers reactions to goods and services so corrective action can be taken necessary The control process 1 establish standards of performance goals or targets against which performance is to be evaluated 2 Measure actual performance 3 Compare actual performance against chosen standards of performance 4 evaluate the results 3 Types of organizational control systems output control behavior control clan control values norms social Output control Financial measures of performance A Profit ratios measure how effecitly managers are using the organization39s resources to generate profit ROI Operating margin profit sales revenue A Liquidity ratios measure how well managers have protected organizational resources to be able to meet short terrn obligations Current ratio amp Quick ratio A Leverage Ratios measure the degree which managers use debt Debttoasset ratio amp Timescovered ratio A Activity ratio how well managers are creating value from organizational assets operating budget a budget that states how managers intend to use organizational resources to achieve organizational goals Behavior control Direct supervision demotivate subordinates management by objectives MBO a goal setting process in which a manager and each of his or her subordinates negotiate specific goals and objectives for the subordinates to achieve and then periodically evaluate the extent to which the subordinates achieving these goals bureaucratic control control of behavior by means of a comprehensive system of rules and standard operating procedures clan control the control exerted on individuals and groups in an organization by shared values norms standards of behavior and expectations organizational change the movement of an organization away from its present state and toward some preferred future state to increase its efficiency and effectiveness Kurt Lewin forcefield theory A wide variety of forces arise from the way and organization operates from its structure culture amp control systems that make organizations resistant to change evolutionary change change that is gradual incremental and narrowly focused revolutionary change change that is rapid dramatic and broadly focused topdown change a fast revolutionary approach to change in which top managers identify what needs to be changed and then move quicklyto implement the changes throughout the organization bottomup change a gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change Benchmarking the process of comparing one company39s performance on specific dimensions with the performance of other highperforming organizations