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I. Micro-Perspective Within the Organization - Coggle Diagram
I. Micro-Perspective Within the Organization
1. Introduction and Key Concepts
1.1 Strategy
Historical View
Definitions
Porter
Chandler
Barney
Neumann & Morgenstern
Formulation
1.2 Organizations
Core Characteristics
Structured and coordinated activity system
Goal directed
Identifiable boundaries
Economic Relevance
Ronald Coase
Transaction Costs
Structure and Coordination
1.3 Strategic Organization Design
a) Integration of Organization Design and Strategy
Strategy: Competitive Advantages
Organization Design: Environmental Fit
b) Challenge of Fit
Problems
Heterogeneity
Convergence to optimal configuration
Coordination and Motivation
c) Organization Design as Aggregation Function
Fundamental Process
Division of Labor
Integration of Efforts
Main Objectives
Allocate task that match skills/requirements
Dependencies among tasks and employees
But: Incomplete Information
2. Key Concepts and Hierarchy Design
2.1 Aggregation Function
Task Structure
Objectives
Problem: Incomplete Information
Task Matrix
Transformation of Matrix
Value Mapping
Sources of Heterogeneity and Persistence
Inattention to adress complex problem
Inertia in responding to environmental change
Risk aversion, psychological biases
Relational contracting (slow change if organization is decentralized)
2.2 Form of Organizing
Definition
Problem solving process (four universal problems)
Division of Labor
2.3 Hierarchy
Def.: Decentralization of the division of decision making and flows of information
(1) Types of Hierarchies
a) Information Processing Hierarchy
b) Knowledge Hierarchy
(2) Searching for Structure
Core Assumptions
Search for Structure
Errors of Omission
Errors of Commission
Integration of Effort
Components
Components
Practical Components
People, architecture, routines, culture
Theoretical Components
Multiagent system
Identifiable boundaries
System level goals
Agent's effort (goal-directed)
"New" Forms of Organizing
3. Strategic Compensation Design
3.1 Theories of Motivation
Employee Preferences
Maslow's Hierarchy of Needs
Herzberg's Motivation Hygiene Theory
Edward Deci's Self Determination Theory
Vroom's Expectancy Theory
Equity Theory of Motivation
3.2 Design of Incentive Plans
Incentives: Blue Collar
Pay-For-Performance
Piecework Pay
Merit-Based Pay
Incentives: White Collar
Sales People (Combination of Salary & Commission)
Team / Group Variable Pay
Team Incentives
Organization Wide Pay
Cash Plans
Profit-Sharing
Incentives for Managers
Short-Term
Annual bonus
Long-Term
Stock options
Guidelines
Incentive / Strategy Alignment
Effort / Rewards are directly related
Good Measurement Systems
Emphasize Long-Term and Short-Term Success