5.7 Formulating Organizational and Personal Strategy With the Strategy Diamond
Formulate organizational and personal strategy with the strategy diamond.
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Chapter 6: Goals and Objectives
6.1 Case in Point: Nucor Aligns Company Goals With Employee Goals
6.2 The Nature of Goals and Objectives
Understand the nature of goals and objectives and why they are important.
LEARNING OBJECTIVES
1. What Are Goals and Objectives?
Goals Outcome statements that define what an organization is trying to
accomplish, both programmatically and organizationally.
Objectives Very precise, time-based, and measurable actions that support the
completion of a goal.
Measures The actual metrics used to gauge performance on objectives.
2. Goals and Objectives in P-O-L-C
Figure 6.4 Goals and Objectives in Planning
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KEY TAKEAWAY
EXERCISES
6.3 From Management by Objectives to the Balanced Scorecard
See how our thinking about goals and objectives has evolved.
LEARNING OBJECTIVES
1. Management by Objectives (MBO)
A systematic and organized approach that allows management to focus on
achievable goals and to attain the best possible results from available
resources.
2. The Balanced Scorecard
The customer area looks at customer satisfaction and retention.
Learning and growth explore the effectiveness of management in terms of
measures of employee satisfaction and retention and information system
performance.
The internal area looks at production and innovation, measuring performance
in terms of maximizing profit from current products and following indicators for
future productivity.
Financial performance, the most traditionally used performance indicator,
includes assessments of measures such as operating costs and return-oninvestment.
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Figure 6.6 The Balanced Scorecard
3. Other Performance Measurement Systems
The process through which companies ensure that employees are working
toward organizational goals.
KEY TAKEAWAY
EXERCISES
6.4 Characteristics of Effective Goals and Objectives
Know what characterizes good goals and objectives.
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LEARNING OBJECTIVES
1. Eight Characteristics of Appropriate Goals and Objectives
Figure 6.8 Characteristics of Appropriate Goals and Objectives
KEY TAKEAWAY
EXERCISES
6.5 Using Goals and Objectives in Employee Performance Evaluation
Understand the roles of goals and objectives in employee performance reviews.
LEARNING OBJECTIVES
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1. Goals, Objectives, and Performance Reviews
Figure 6.11 Example Employee Evaluation Form
KEY TAKEAWAY
EXERCISES
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6.6 Integrating Goals and Objectives with Corporate Social Responsibility
Map out relationships among economic, social, and environmental goals and
objectives.
LEARNING OBJECTIVES
1. Corporate social responsibility (CSR)
How companies manage the business processes to produce an overall
positive impact on society.
KEY TAKEAWAY
EXERCISES
6.7 Your Personal Balanced Scorecard
Set and manage your own goals and objectives.
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Chapter 7: Organizational Structure and Change
7.1 Case in Point: Toyota Struggles With Organizational Structure
7.2 Organizational Structure
Define organizational structure and its basic elements.
LEARNING OBJECTIVES
1. Building Blocks of Structure
Organizational structure refers to how individual and team work within an
organization are coordinated.
Centralization is the degree to which decision-making authority is
concentrated at higher levels in an organization.
Formalization is the extent to which an organization’s policies, procedures, job
descriptions, and rules are written and explicitly articulated.
2. Hierarchical Levels
Tall structures: Organizations with several layers of management between
frontline employees and the top level.
Flat structures: Organizations with few layers, often with large numbers of
employees reporting to a single manager.
3. Departmentalization
Functional structures: Structures in which jobs are grouped based on similarity
in functions.
Divisional structures: When departments represent the unique products,
services, customers, or geographic locations the company is serving.
Figure 7.6 An Example of a Pharmaceutical Company with a Functional
Departmentalization Structure
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Figure 7.7 An Example of a Pharmaceutical Company with a Divisional
Departmentalization Structure
4. Two Configurations: Mechanistic and Organic Structures
Mechanistic structures: Those structures that resemble a bureaucracy and are
highly formalized and centralized.
Organic structures: Those structures that are flexible and decentralized with
low levels of formalization where communication lines are more fluid and
flexible.
KEY TAKEAWAY
EXERCISES
7.3 Contemporary Forms of Organizational Structures
Describe matrix, boundaryless, and learning organizations.
LEARNING OBJECTIVES
1. Matrix Organizations
Matrix organizations have a design that combines a traditional functional
structure with a product structure.
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Figure 7.8 An example of a matrix structure at a software development company
2. Boundaryless Organizations
Boundaryless Organizations: An organization that eliminates traditional
barriers between departments as well as barriers between the organization
and the external environment.
- Modular organization: An organization where all the nonessential
functions are outsourced.
- Strategic alliances: A form of boundaryless design where two or more
companies find an area of collaboration and combine their efforts to
create a partnership that is beneficial for all parties.
3. Learning Organizations
Learning Organization: One where acquiring knowledge and changing
behavior as a result of the newly acquired knowledge is part of an
organization’s design.
KEY TAKEAWAY
EXERCISES
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7.4 Organizational Change
Describe why and how organizations change.
LEARNING OBJECTIVES
1. Why Do Organizations Change?
Organizational change is the movement of an organization from one state of
affairs to another.
- Workplace Demographics
- Technology
- Globalization
- Changes in the Market Conditions
- Growth
- Poor Performance
2. Resistance to Change
Active resistance is the most negative reaction to a proposed change attempt.
Passive resistance involves being disturbed by changes without necessarily
voicing these opinions.
Compliance, however, involves going along with proposed changes with little
enthusiasm.
Enthusiastic support are defenders of the new way and actually encourage
others around them to give support to the change effort as well.
Figure 7.11 Reactions to change
3. Why Do People Resist Change?
Disrupted Habits
Personality
Feelings of Uncertainty
Fear of Failure
Personal Impact of Change
Prevalence of Change
Perceived Loss of Power
4. Is All Resistance Bad?
KEY TAKEAWAY
EXERCISES
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7.5 Planning and Executing Change Effectively
Understand reasons why people resist change, and strategies for planning and
executing change effectively.
LEARNING OBJECTIVES
Figure 7.14 Lewin’s Three-Stage Process of Change
1. Unfreezing: Making sure that organizational members are ready for and receptive
to change
Communicating a Plan for Change
Develop a Sense of Urgency
Building a Coalition
Provide Support
Allow Employees to Participate
2. Change: Executing the planned changes
Continue to Provide Support
Create Small Wins
Eliminate Obstacles
3. Refreezing: Ensuring that change becomes permanent and the new habits, rules,
or procedures become the norm
Publicize Success
Reward Change Adoption
Embracing Continuous Change
KEY TAKEAWAY
EXERCISES
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7.6 Building Your Change Management Skills
Build your own organizational design skills.
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Chapter 8: Organizational Culture
8.1 Case in Point: Google Creates Unique Culture
8.2 Understanding Organizational Culture
Describe what organizational culture is and why it is important for an organization.
LEARNING OBJECTIVES
1. What Is Organizational Culture?
Organizational culture refers to a system of shared assumptions, values, and
beliefs that show people what is appropriate and inappropriate behavior.
2. Levels of Organizational Culture
Assumptions: Beliefs about human nature and reality that are taken for
granted
Values: Shared principles, standards, and goals
Artifacts: The visible and tangible elements of culture
Figure 8.5 Three Levels of Organizational Culture
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KEY TAKEAWAY
EXERCISES
8.3 Measuring Organizational Culture
Understand the dimensions that make up a company’s culture.
LEARNING OBJECTIVES
1. Dimensions of Culture
Figure 8.6 Dimensions of Organizational Culture Profile (OCP)
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2. Do Organizations Have a Single Culture?
Subcultures: A set of values unique to a limited cross section of the
organization
Counterculture: Shared values and beliefs that are in direct opposition to the
values of the broader organizational culture
KEY TAKEAWAY
EXERCISES
8.4 Creating and Maintaining Organizational Culture
Understand the creation and maintenance of organizational culture.
LEARNING OBJECTIV