Lecture 4

Question 1

3 types of goals

Answer 1

1) Formal Goals
a) official goals
b) operative goals
II) Informal Goals (Culture)

Question 2

official goals

Answer 2

• mission, vision statement, shared values and beliefs
• What is the value system?
• no financial goals mentioned, defines values, purpose, and unique identity; highlights strengths and competencies; focuses on stakeholders and their interests; concise

Question 3

operative goals

Answer 3

• goals with specific measurable outcomes
• What do employees work toward?
  Types:
• Overall performance – BSC
• Resources
• Market
• Employee development
• Innovation and change
• Productivity

Question 4

Informal Goals (Culture)

Answer 4

• arise naturally from social interactions, relationships, and employee dynamics.
• How does culture and official goal align?
• unwritten, socially driven, dynamic, complementary or contradictory

Question 5

Strategy

Answer 5

= a plan for interacting with the competitive environment to achieve organizational goals

Question 6

Three models for formulating strategies

Answer 6

1. Porter model of competitive strategies
2. Miles and Snow’s strategy typology
3. Kim and Mauborgne’s blue ocean strategy

Question 7

Porter’s Competitive Strategies

Answer 7

Low-cost leadership
Differentiation
Focused low-cost leadership
Focused differentiation

Question 8

Miles & Snow’s Strategy Typology

Answer 8

1. Prospector
2. Defender
3. Analyzer
4. Reactor

Question 9

Prospector

Answer 9

– learning-orientation
– Organizations that focus on innovation, exploring new markets, and developing new products or services, decentraliz
* They thrive in dynamic and rapidly changing environments.

Question 10

Defender

Answer 10

– efficiency-orientation
– Organizations that focus on maintaining a stable position in existing markets by emphasizing efficiency, cost control, and high-quality products or services.
* centralized authority, little employee empowerment
* They operate in more stable environments.

Question 11

Analyzer and Reactor

Answer 11

Analyzer – balances efficiency and learning
Reactor - no clear strategic direction

Question 12

Kim and Mauborgne’s Blue Ocean Strategy

Answer 12

• Creating a new market where there is less competition
  o Start with the right perspective
  o Apply the right tools
  o create an involved workforce – Engagement, Explanation, Reassurance

Question 13

The contingency factors affecting organizational design are:

Answer 13

1. Strategy
2. Environment
3. Technology
4. Size / Life Cycle
5. Culture

Question 14

3 Contingency Approaches to Effectiveness

Answer 14

1. Resource-Based Approach (Input focus)
2. Internal-Process Approach (Process focus)
3. Goal Approach (Output focus)

Question 15

Four approaches to Effectiveness Values

Answer 15

Human Relations Emphasis
Primary goal: HR development
Subgoals: cohesion, morale, training

Internal-Process Emphasis
Primary goal: stability, equilibrium
Subgoals: information management, communication

Open-Systems Emphasis
Primary goal: growth and resource acquisition
Subgoals: flexibility, readiness, external evaluation

Rational-Goal Emphasis
Primary goal: productivity, efficiency, profit
Subgoals: planning, goal setting

Question 16

Major Perspectives of the Balanced Scorecard

Answer 16

1. Financial
   * profit, ROI
2. Customers
   * customer satisfaction, customer loyalty
3. Internal Business Processes
   * Do work processes add value for customers and shareholders?
   * order fulfilment, cost per order
4. Learning and Growth Culture
   * continuous process improvement, employee retention