MEI609 Study Guide
Unit 4: Change Management
4a. Develop and design a mission and supporting goals for a business venture
- What are the types of organizational structures, and how are they used?
- What types of changes are common in an organization that may impact the goals and mission?
- What are some models and methods to manage change in an organization?
Many organizations find they need to change their mission, goals, or objectives based on external or internal factors. Organizational structure is a system for accomplishing and connecting the activities that occur within an organization. They are used to show relationships between positions and roles within an organization. Thus, when changes in the organization occur, it is likely the organizational structure will need to change as well to support the goals of the organization.
There are several types of organizational structures that are decided upon based on the levels of bureaucracy, specialization, command and control, span of control, and the degree of centralization and formalization an organization requires. Within each of these considerations, an organic structure is often used in small start-up businesses where the organization is not highly formalized. As organizations grow, they often move to mechanistic structures, where the organization structure is more formalized. As an organization grows and changes, there are two main types of changes that might occur. Deficit-based changes, which occur when negative consequences could occur if a change isn't made, and abundance-based changes, which means things are going well, but this type of change allows for an organization to take advantage of new opportunities. Both of these types of changes may require a change to the overall mission and goals of an organization. When an organization makes changes, there can be several considerations, such as the type of change and the method used to shepherd the change in order to meet the mission and goals of the organization. Models used in change management include Lewin's model and Kotter's model.
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4b. Apply managerial decision-making to a business venture
- What is an example of a programmed decision?
- What are the barriers to effective decision-making?
- How does conflict and the management of conflict impact decision-making?
Part of managing good decisions is the management of conflict. There are four types of conflict which include goal, cognitive, affective, and behavioral conflicts. Conflict can be further considered by their level of conflict, such as intrapersonal and intergroup conflict. Barriers to effective decision-making can include escalation of commitment, bounded rationality, time constraints, and personal bias. Entrepreneurs that manage conflict well are better able to make sound decisions. While some levels of conflict are positive, as they cause entrepreneurs to think about things from a variety of perspectives, managing the right levels of conflict in an organization is necessary to ensure sound decisions are made. Otherwise, conflict could get in the way of forward progress.
There are two types of decisions that are made: reactive and reflective. Both methods are impacted by emotions and emotional intelligence. Managers may make programmed decisions, which are decisions that are repeated over time, and nonprogrammed decisions, which are novel decisions that are not made often. Many managers apply the decision-making process to ensure they make sound decisions for their business, and this process consists of six steps.
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Unit 4 Vocabulary
This vocabulary list includes terms you will need to know to successfully complete the final exam.
- abundance based change
- deficit-based change
- non-programed decisions
- organizational structure
- programmed decisions