Organizational Theory Occupational Safety and Health Administration Paper


Question Description

1200 words total. 3 APA cited references and reference list. NO PLAGIARISM PLEASE!!!

1. In a narrative format, discuss the key facts and critical issues presented in the case.

2. Explain the dilemma for organizations that have particularly serious regulatory issues. How should Jay resolve the differences in requirements from the Federal agency, OSHA, versus the state?

3. Employing Porter's Five Forces model, analyze the industry niche of care for the intellectually disabled. What specific conclusions can be drawn from your analysis?

4. Jay believes the required vaccinations would cost almost $30,000 a year, primarily due to his staff turnover rate, which is approximately 40%. Are there any suggestions you might have for Jay as to how he could reduce that turnover rate? Does the general environment model's socio-cultural segment offer any clues?

For question # 5, a total of 250 words. 2 APA cited references and reference list. NO PLAGIARISM PLEASE!!!

5. Why do some view organizational politics as scheming, conniving, and self-serving? What is your view?

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Decision Making, Power and Politics Chapter Outline: 8-1 Decision Making in Organizations 8-2 Power in Organizations 8-3 Politics in Organizations 8-4 Conflict in Organizations Summary Review Questions Glossary Endnotes Key Terms bounded rationality Carnegie model coalition incremental decision model intuitive decision making nonprogrammed decisions organizational conflict V I C K E R S , T E A R D R A 1 1 9 1 T S organizational decision making organizational politics power programmed decisions rational model of decision making satisficing unstructured model of decision making 8 This book has emphasized the importance of strategically managing organizations, whether they are operating in the for-profit sector or the not-for-profit sector. The challenge of competitive forces, discussed in chapter 2 on strategy, is reaching a zenith. This fact particularly impacts the first topic of this chapter, which is decision making. Because competition for resources and customers has reached the hypercompetitive level, decisions by organizations must be made quickly and accurately. 8-1 Decision Making in Organizations V Why do organizations make decisions? Primarily, decisions I are required because organizations represent the merger of people, systems, C and technology. Such a complicated conflagration inevitably leads to problems that beg solving or creates K opportunities that need courses of action. Hence, organizational decision making E is the process of identifying problems or opportunities and finding solutions or courses of action that further the goals of the organization.R S When firms are small, such as those usually found in the , existence stage of the organizational life cycle, all important decisions and most minor decisions are made by one person or a small group of people. However, as organizations add T for decision making capacity to produce, employees, and markets, the need E this decision making increases exponentially. Modern organizations are pushing A and efficiency. This responsibility to the lowest possible levels to increase speed concept, known as empowerment, puts the responsibility R for solving a problem or 1 acting on an opportunity in the hands of those closest to the D situation. R As technology continues to permeate our organizations, markets and competition A available for mulling become global, and productivity increases accelerate, the time over important matters in the decision making process shrinks. Fortunately, most decisions faced by organizations are somewhat routine.1 Decisions made on a routine, repetitive basis addressed by company policy and 1 procedures are known as programmed decisions. 9 Nonprogrammed decisions involve nonroutine, out of1the ordinary situations and are generally not covered by existing policy or procedure. An example of a T nonprogrammed decision would be a competitive situation S where an organization is faced with a serious threat from a substitute product. Think about the difficulty faced by steel producers when automobile manufacturers began to utilize plastic on a widespread basis in their new cars. This is an example of a strategic threat from the external environment that resulted in a loss of revenue. That is a serious enough issue. However, this substitution led to the utilization of plastic into other products, replacing glass, steel, and even paper. organizational decision making the process of identifying problems or opportunities and finding solutions or courses of action that further the goals of the organization programmed decisions decisions made on a routine, repetitive basis that are addressed by company policy and procedures nonprogrammed decisions decisions that involve nonroutine, out-of-the ordinary situations and are generally not covered by existing policy or procedure Organizational Theory 8-2 8-1a The Rational Decision Making Model Regardless of whether decisions are programmed or nonprogrammed, everyone has a process that they follow when confronted with the need for a decision. As organization theory has evolved over the years, a clear need has been recognized by researchers and practitioners alike for a model for decision makers to adopt. Too many organizational managers were making decisions based only on past experience, or expediency, or whatever might make them look good to their superiors. Allowing organizational decision-makers to “fly by the seat of their pants” works V against the goals and objectives set by most firms. To overcome this problem, a I rational or classical model of decision making has been developed. The rational model is a decision making process that relies on a C step-by-step systematic approach to solving a problem. This model has been portrayed K as anywhere from a three-step2 to a six-step3 to an eight-step4 process. FigureE8.1 depicts a version of the rational model based on a strategic management R S , rational model of decision-making a decision making process that relies on a step-bystep systematic approach to solving a problem T E Figure 8.1 The Rational Decision Making Model A Each step in Figure 8.1 will be explained using a practicalRexample from the Coca Cola Company headquartered in Atlanta, Georgia. During Dthe early 1980’s Coke began losing market share in supermarkets to Pepsi. Although newly-introduced R Diet Coke had recently become the No. 1 diet soft drink, Coke executives were A concerned with their competitive position in relation to Pepsi’s. To make matters worse, Pepsi had been running taste test advertisements on television for several 1 based on taste. years where blindfolded consumers picked Pepsi over Coke 1 Robert Goizeuta, chairman of Coca Cola, initiated a secret project to tinker with 9 Coke’s formula, developed in 1886 by Georgia pharmacist John Pemberton, 1 believing that the sweeter taste of Pepsi was leading to Coke’s loss of market T in consumer trials in share. By 1984 the company was ready to try the new formula S firm, Coke conducted over 30 cities in America. With the aid of a market research its own taste tests, with close to 40,000 people choosing New Coke over the old classic by 55 to 45 %. The also chose it over Pepsi. The introduction of New Coke, and the withdrawal of Old Coke, came in April of 1985. To Coke’s surprise, the outcry over the new formula and the pulling of the old Coke was met with outrage. Less than 90 days later, the old formula was reOrganizational Theory 8-3 introduced to the market as Coca-Cola Classic. Coke’s stock price went up over $5 in one week after bringing back the old formula.5 This example is not an illustration of a successful initial decision, as Coke’s decision to introduce New Coke could only be described as a failure. However, it very clearly demonstrates how difficult important strategic decisions can be, and it reveals one firm’s ability to recognize when it had made a mistake. Step 1: Recognize and confront the situation – do not sit on a situation that is a potential problem or opportunity for your organization hoping that it will take care of itself. Coca-Cola executives became concerned with a drop in market share in the early 1980’s as Pepsi began outselling Coke in supermarkets. The company decided the problem was the taste of their product, in that Pepsi was sweeter than Coke. Step 2: Develop the solution options V – strategic managers base decision-making options I on their compatibility with the organization’s strategy to accomplish its goals and objectives. Anything else is counterproductive.CCoca-Cola owned the most recognizable brand in the world. To protect its market share andKits name, Coke looked at introducing new products (like Diet Coke), changing advertising strategies (conducting its own taste tests), or actually altering E the formula of its main product (introducing New Coke). R S of each option – Sometimes a possible solution to Step 3: Evaluate the possible outcomes a situation sounds very good until it, is evaluated based on the possible outcomes. As they evaluated each option, Coke executives knew they already had six brands on the shelves of stores, they believed their marketing campaign was already one of the best in the world, and T they were concerned that tinkering with their tried and true formula was risky. E A Step 4: Choose the best option and implement – Once the best option is identified based on an evaluation of possible outcomes,R implement the option. After analyzing this situation for some time, CEO Robert Goizueta, with D support from Robert Woodruff, the 95 year-old former chairman of Coca-Cola, put the wheels in motion for the introduction of New Coke. R The example of decision making at Coca-Cola by itsA top management team demonstrates that even a rational, objective, research-based decision can be wrong. In the end, after spending over $4 million to taste test its new formula, Coca-Cola failed in its introduction of 1 New Coke. Some say an intangible, e.g., the consumer’s 6 emotional tie to the brand, was to blame for New Coke’s 1 failure. Yet, Coca-Cola survived and prospered under Goizueta’s leadership as its stock price increased 3800% during his tenure. Since his death in October of 1997, 9 however, Coca-Cola has struggled to find the right leader at the right time.7 1 Critics are quick to point out that the rational modelThas several flaws. For example, managers do not have complete, perfect information most of the time. They Sdo not know all possible alternatives, and they do not understand nor can they predict all possible outcomes of those alternatives. Decision makers also have limited mental capability, something that is not recognized by this model. The rational model is a prescriptive model in that it lays out a process for how decisions should be made. A second model will be discussed below that is more descriptive, demonstrating how decisions actually are made in organizations. Organizational Theory 8-4 8-1b The Carnegie Model A second model of decision making is the administrative model, or the Carnegie Model. Developed by organizational researchers James March and Herbert Simon from Carnegie-Mellon University, this model tries to explain how organizational decision makers actually make decisions. The result is a realistic snapshot of the limitations decision makers bring to the process, particularly in light of the tremendous number of variables involved in decision making in today’s organizations. The Carnegie model reflects a descriptive decision-making process in organizations V information, social where coalitions determine a final choice based on incomplete I makers, and the need and psychological processes, limited abilities of decision 8 to find quick, satisficing solutions. The Carnegie Model C is a good example of what happens to a behavioral theory in management whenKit is actually studied in practice. Rarely does one single top manager make all ofEthe important decisions in an organization without input and buy-in from many other key managers. R Although an organization may have clearly defined goals, conflict as to how to obtain those goals or whether they are actually the properS goals often develops. In , between employees, these situations, coalitions can form within the organization managers, and/or shareholders to push forward a solution.9 In contrast, the rational model of decision making tends to assume no conflict exists T in organizations and that organizational goals are all commonly shared by immediate stakeholders. E Mintzberg categorizes the possible reasons for coalitionsAin an organization and identifies the actual groups, both external and internal, thatR might result. He defines a coalition as “a group of people who band together to win D some issue.”10 Below is a list of these possible coalitions. R External Coalitions: A Carnegie model reflects a descriptive decision-making process in organizations where coalitions determine a final choice based on incomplete information, social and psychological processes, limited abilities of decision makers, and the need to find quick, satisficing solutions coalition a group of people who band together to win some issue Owners 1 – those who have legal control of the organization 1 Associates 9 – Suppliers and buyers of organizational resources 1 and products/services Employee Associations – Unions and professional associations T S Publics – this term refers to general groups such as families and opinion leaders, special interests groups, and government Directors – board members Organizational Theory 8-5 Internal Coalitions: Top Management Team – also referred to by some as the dominant coalition Operators – describes the workers who actually produce the firm’s product or service Line Managers – all managers from the CEO down to first-line supervisors; Analysts of the Technostructure – systems planning and control personnel; V I Support Staff – specialists who work on matters of law, public C relations, etc. K Ideology Supporters – those who share a set of beliefs that distinguish E the 11 organization from others. R S This list emphasizes the fact that coalitions are powerful, yet fundamental forces to be reckoned with in any organization. The vast number of ,special interests, causes, needs, and other considerations that can be conjured up by this list confirms the practical approach to decision making that coalition building T represents. This is not to say that coalitions are only concerned with self-interest, E but it does make one aware of the importance of coalition building in managing an organization. A A second major difference between the rational model andRthe Carnegie model has D to do with choosing the optimal solution in the decision-making process. March and Simon have described that, in many cases, solutionsR to problems are arrived at through a process of satisficing. The concept of satisficing A is choosing a course of action that is the most acceptable to the greatest number of people involved or affected. In a perfect world, this would not be the case. Decision makers would 1 always choose whatever solution was best for the organization. Remember, organizations are groups of people who must work 1 together to accomplish 9 anything. Unfortunately, optimal solutions are not always going to be supported by organizational stakeholders. 1 satisficing choosing a course of action that is the most acceptable to the greatest number of people involved or affected T Another factor involved in decision making that the rational model overlooks is the S bounded rationality. sheer limitations of human decision makers based on their Although organizational decision makers are usually well-versed in their industry, trained in their jobs, and networked to opportunities and threats in the external environment, they are also limited by their own cognitive ability. So, bounded rationality refers to the limitations of the mind that restrict the ability of decision makers to solve problems or take advantage of opportunities. Operating within this limited framework, decision makers can make a quick list of alternatives based on bounded rationality refers to the limitations of the mind that restrict the ability of decision makers to solve problems or take advantage of opportunities Organizational Theory 8-6 past experience and personal knowledge of the situation at hand, prioritize them based on importance, and move on with a solution. Are all relevant alternatives likely to be included? The answer is probably not. However, the need not to spend too long deliberating a situation, the tendency to satisfice, and the personal preferences of the primary decision maker usually overrule any inclination to try to be exhaustive in identifying alternatives. V I C K E R S , Input and buy-in from key managers aid and strengthen the decision making process. 8-1c Incremental Decision Making T E A different model of decision making is the incremental decision model. The name A incremental is quite descriptive, as managers make decisions that are only slightly R ones they themselves different than the ones made by their predecessors or the 12 D is that managers are made in the past. The idea behind the incremental model only “muddling through” as they are confronted with important decision-making R opportunities. Many managers practice this decision making A style because the chance for failure is reduced when you only incrementally change what has been happening for a long time. Although new courses of action may eventually develop 1 when the incremental model is practiced, they take a long time to come about due 1 to the small step-by-small step process. 9 8-1d The Unstructured Model 1 While the Carnegie model emphasizes the need toTrecognize social and psychological processes, the unstructured model, based onS the observance of actual decision makers in operating organizations, focuses more on the actual steps taken by decision makers. The unstructured model of decision making, developed by Henry Mintzberg, sometimes referred to as the Father of Strategic Management, describes decision making in uncertain environments as a sequence of activities that require smaller decisions throughout the process. 13 incremental decision model managers make decisions that are only slightly different than the ones made by their predecessors or the ones they themselves made in the past unstructured model of decision making describes decision making in uncertain environments as a structured sequence of activities that require smaller decisions throughout the process Organizational Theory 8-7 Mintzberg and his colleagues studied twenty-five organizational decisions as a process from beginning to end. They outlined three major phases common to the firms studied: the identification phase, the development phase, and the selection phase. The identification stage involved recognizing the problem or opportunity and gathering more information, or diagnosing. The development phase was focused on searching for alternatives or designing a solution that was customized to fit the situation. In the selection phase a judgment is made, followed by analysis, bargaining, and eventual authorization. In their research, Mintzberg and his coauthors noted that sometimes major barriers would be bumped into, requiring decision makers to go back and repeat steps they had already taken. V What is important to remember in any decision model is the fact that most critical decisions are made over a period of time. And, as we have Iemphasized in this book, the environment for most businesses changes over time,Csometimes drastically. Mintzberg’s model is realistic in that regard, particularly K when an organization is operating in an uncertain internal or external environment, E since it accounts for barriers that can arise. 8-1e Intuition in Decision Making R S , A somewhat recent school of thought in the decision making literature looks at the importance of intuition. Using intuition, or practicing intuitive decision making, T involves relying on judgment and feel for a situation based on past experience.14 E Intuition is invaluable because it represents an informed gut reaction to a problem or opportunity, it allows decisions to be made faster asAthe reaction intuitively R been burned into the is fairly immediate, and it relies on information that has 15 subconscious over a long period of time. D intutive decision making involves relying on judgment and feelings for a situation based on experience R Intuition plays an important role in the decision making of Meg Whitman, A Practices box in this president and CEO of eBay who is featured in our Best chapter. Whitman must make decisions on critical business issues like expansion, 1 decisions to make that acquisitions, personnel and so forth. However, ...
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School: UCLA



Organizational Theory
Student Name
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Occupational Safety and Health Administration
The law mandates that businesses provide their workers' a favorable work environment
that pose no danger to the employees as they undertake their duties. The Act came up with the
Occupational Safety and Health Administration, which regulates and upholds protective working
environment safety and health principles. The case highlights the role that OSHA plays in
regulating employee safety. The issues presented in the case pertain the blood-borne pathogen
policy and hepatitis vaccination for health care workers.
Due to the risk factors involved in their line of work, OSHA sets standards to protect
healthcare employees from exposure to infections. OSHA's Bloodborne Pathogens standard
endorses protection to safeguard employees against the health risks brought about by bloodborne pathogens (Guardiancich & Guidi, 2015). Its guidelines address safety issues like the
hepatitis B vaccination, among other items. OSHA's Bloodborne Pathogens Standard demands
that businesses should provide the hepatitis B vaccination arrangement to any worker who is at
risk of exposure to Blood or other conceivably infectious substance. The vaccination ought to be
offered upon employment and at no expense to the worker, this, therefore, means the employer
bears the costs which are high depending on the number of employees an organization has and
the rate of employee turnover.
This explains the critical issue in this case where the owners of East Hampshire felt that;
due to higher employee turnover compared to resident turn over. It would be more economical
for the business to immunize all residents in East Hampshire and ensure new residents are tested
for Hepatitis B before admission to the mentally retarded home as compared to vaccinating the
employees. Any potential resident who turned positive for Hepatitis B would be disqualified



from admission. The facility argued that this step ensured the safety of its employees since if the
pathogen was not brought in, then the employees were safe.
East Hampshire, therefore, had no employee vaccination program since the organization
believed it did not require such a program because their employees were not at risk. The safety of
employees is a critical issue in any organization that deals with providing health-related services,
and for this reason, OSHA, therefore, set the safety standards (Guardiancich & Guidi, 2015). It
is additionally vital for organizations to adhere to the OSHA standards to ensure they are on the
safe side of the law and a...

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