ACE Management & OB Core Concepts Summary

Posted on Feb 24, 2026 in Business Administration and Management (BAM)

ACE-LEVEL MANAGING ORGANIZATIONS CHEAP SHEET (Lessons 01–08 + Cases + Presentations)

MANAGEMENT + OB BASICS

Management Fundamentals

  • Management: Achieving organizational goals through other people/resources.
  • Must balance Effectiveness (reaching the right goals/outcomes) and Efficiency (using time/money/effort well).

The Four Functions (POLC)

  1. Planning: Set goals + choose actions.
  2. Organizing: Design structure + allocate tasks/resources.
  3. Leading: Motivate/communicate/influence.
  4. Controlling: Measure results vs goals + correct.

Key Definitions

  • Organization: Deliberately arranged people with a shared purpose + structure + boundary.
  • OB (Organizational Behavior): How individuals + groups + structures affect behavior and performance.

Mintzberg Manager Roles (10)

Grouped as:

  • Interpersonal: Figurehead, Leader, Liaison.
  • Informational: Monitor, Disseminator, Spokesperson.
  • Decisional: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator.

Managerial Discretion

Upper Echelons Theory: Top management background/values shape strategic choices and outcomes.

Managerial Discretion: CEO/management “room to maneuver” (latitude of action) shaped by environment, internal constraints, and leaders’ imagination.

ORGANIZATION DESIGN

Why Organizations Exist

  • Specialization/division of labor.
  • Economies of scale/scope.
  • Manage environment.
  • Coordinate complex work.
  • Exert power/control.

Organization Definitions

  • Classic: Coordination tool to obtain something valued.
  • Neoclassic: Roles + interactions to achieve objectives.
  • Modern: Consciously coordinated social entity with identifiable boundary that interacts with environment to achieve goals.

OPEN SYSTEMS + ENVIRONMENT

Systems View

  • Open System: Interacts with environment (inputs in; outputs out; feedback).
  • Closed System: Minimal/no interaction.

Environmental Analysis Tools

  • Environment includes: Customers, competitors, suppliers, government/regulation, labor markets, technology, finance.
  • PESTEL: Political, Economic, Social, Technological, Environmental, Legal (describes environmental pressures).
  • SWOT: Strengths/Weaknesses (internal) + Opportunities/Threats (external).

ORGANIZATIONAL CULTURE

Culture Definition

Culture: Shared values, beliefs, norms guiding “how we do things.” Visible through stories, symbols, rituals, slogans, dress, layout.

Cameron & Quinn Competing Values Framework

Focuses on internal vs external focus and flexibility vs control:

  • CLAN: Internal + Flexible (Team, loyalty, mentoring).
  • ADHOCRACY: External + Flexible (Innovation, risk-taking, entrepreneurship).
  • MARKET: External + Control (Competition, targets, results).
  • HIERARCHY: Internal + Control (Rules, procedures, stability, efficiency).

STRUCTURAL DIMENSIONS

Structural Characteristics

  • Formalization: Written rules/procedures (High = consistency/control; Low = flexibility).
  • Specialization: Narrow vs broad jobs (High = efficiency; risk monotony/silos).
  • Hierarchy of Authority: Levels of management.
  • Centralization: Decisions concentrated at top vs decentralized.
  • Professionalism: Education/training level (High = less direct supervision).
  • Personnel Ratios: Proportion of managers/support vs frontline (reveals priorities/cost structure).

Differentiation vs Integration

  • Differentiation: Splitting work into departments/units/roles.
  • Integration/Coordination: Mechanisms to make differentiated units work together (meetings, rules, shared goals, liaison roles, cross-functional teams).

ORG STRUCTURE FUNDAMENTALS (Lesson 08)

Differentiation Dimensions

  • Vertical Differentiation: Number of hierarchy levels + who holds decision rights (centralized vs decentralized).
  • Horizontal Differentiation: Division of labor into functions/products/regions.

Span of Control

Number of direct reports.

  • Narrow Span: More levels/taller structure.
  • Wide Span: Fewer levels/flatter structure.

Tall Structure Risks

Slow communication, bureaucracy cost, weak motivation, “Parkinson’s law” (work/bureaucracy expands and adds layers).

Principle of Minimum Chain of Command: Keep hierarchy levels as low as possible while still achieving coordination/control.

STRUCTURE TYPES

Structure Types and Fit

  • Functional: Grouped by function (Marketing/Finance/Ops). Fits: Stable environments; deep expertise. Weakness: Silos/slow cross-functional coordination.
  • Divisional: Grouped by product/market/region. Fits: Diversified firms; accountable outputs. Weakness: Duplicated resources, internal competition.
  • Matrix/Multifocused: Dual reporting (function + product/project). Fits: Complex/uncertain demands needing both expertise + responsiveness. Weakness: Conflict/two-boss stress.
  • Horizontal/Team-Based: Organized around processes/teams. Fits: Faster, customer-focused, flexible. Weakness: Role ambiguity/need strong coordination norms.
  • Virtual/Network: Small core + outsource partners. Fits: Extreme flexibility, rapid response, focus on core competencies. Weakness: Control/quality dependency on partners.
  • Network Structure: Interdependent firms/units linked by alliances/contracts. Fits: Innovation/volatility. Risk: Coordination complexity.

MCKINSEY 7S (Case Study 01 Tool)

Alignment model diagnosing fit:

  • HARD Elements: Strategy (plan to compete), Structure (reporting lines), Systems (processes, IT, routines).
  • SOFT Elements: Shared Values (core beliefs/culture), Skills (capabilities), Staff (people profiles), Style (leadership).

Exam Move: Diagnose MISALIGNMENT (e.g., growth strategy but informal systems) → recommend changes in 2–4 Ss to restore fit.

MINTZBERG “STRUCTURE IN FIVES” (Lesson 07)

Five Components

  1. Strategic Apex: Top management; sets direction, manages external stakeholders.
  2. Middle Line: Managers linking top to frontline; translate strategy into operations.
  3. Operating Core: Frontline employees doing core production/service work.
  4. Technostructure: Analysts who design/standardize processes, methods, rules.
  5. Support Staff: Units providing indirect support services (HR/Admin/Legal).

MINTZBERG COORDINATION MECHANISMS (Lesson 07 EXAM CORE)

MUST MEMORIZE + APPLY:

  1. Direct Supervision: Boss coordinates by giving orders/monitoring.
  2. Mutual Adjustment: Coordination via informal communication/adaptation (common in creative work).
  3. Standardization of Work Processes: Coordination via rules/procedures specifying HOW tasks are done.
  4. Standardization of Outputs: Coordination via targets/KPIs specifying WHAT must be achieved.
  5. Standardization of Skills/Knowledge: Coordination via training/professional standards.
  6. Standardization of Norms: Coordination via shared values/culture guiding behavior.

Mintzberg Configurations (Matching Questions)

  • Simple Structure: Direct Supervision.
  • Machine Bureaucracy: Standardization of Work Processes.
  • Professional Bureaucracy (Hospital/University): Standardization of Skills.
  • Divisionalized Form: Standardization of Outputs.
  • Adhocracy: Mutual Adjustment (often supported by Norms).

Remote Work Application: Outputs standardization becomes more important; norms + mutual adjustment support coordination.

CLASSICAL FOUNDATIONS

  • Scientific Management (Taylorism): Break work into simple tasks, standardize methods, maximize efficiency.
  • Administrative Principles (Fayol): Planning, organizing, commanding, coordinating, controlling.
  • Bureaucracy (Weber): Rational-legal authority, rules, hierarchy for predictability/efficiency.

Exam Use: Explain why machine bureaucracy works (speed/consistency) AND what it risks (rigidity/low motivation).

HUMAN RELATIONS / BEHAVIORAL SHIFT

  • Motivation: Intensity + Direction + Persistence.
  • Maslow: Needs hierarchy (basic → higher growth needs).
  • Theory X vs Theory Y (McGregor): X assumes avoidance (control needed); Y assumes self-direction (empowerment works).

Job Satisfaction later connects to commitment + turnover.

SYSTEMS APPROACH + TRAINING (Lesson 06)

Training Metrics

  • Quantity: Coverage %, time/money invested, frequency/timing.
  • Quality: Learning tests, behavior change, before/after performance, employee feedback.

Systems Principles in Training

  • Equifinality: Different training mixes can achieve similar outcomes.
  • Congruence: Training works best when aligned with context (size/industry/tech/role).
  • Adaptation: Training effects may strengthen later.

INNOVATION (Lesson 06 + Pres 02)

  • Closed Innovation: Innovation mainly inside firm (internal R&D).
  • Open Innovation (Chesbrough): Purposeful knowledge flows across boundaries.

Open Innovation Principles: Not all smart people work for us; external ideas create value; business model matters.

  • Outside-in: Bring external knowledge in (customers, crowdsourcing).
  • Inside-out: Let internal ideas flow outward (licensing, spin-offs).

Schumpeter/Creative Destruction: Innovation disrupts existing industries and replaces old models.

CONTINGENCY APPROACH (Lesson 06/07 EXAM CORE)

No single best way to manage/structure/lead. “Best” depends on fit with contingencies (size, age, ownership, tech routine vs non-routine, environmental uncertainty, performance history, people differences).

Exam Move: Define contingency → name relevant contingencies in case → explain why chosen structure/HR/leadership fits.

COLLECTIVE INCENTIVES PAPER LOGIC

Collective PRP adoption depends on context fit: size, age, ownership, past performance.

Family-Firm Difference (SEW/FIBER)

Families protect Socioemotional Wealth (SEW) (identity/control/legacy), making them cautious about formal incentives.

  • FIBER: Family control & influence, Identification, Binding social ties, Emotional attachment, Renewal/dynastic succession.

RBV + NRBV (Lesson 06)

Resource-Based View (RBV – Barney)

Advantage when resources/capabilities are valuable and hard to match.

VRIO: Valuable, Rare, Inimitable, Organized to capture value (sustained advantage).

Natural Resource-Based View (NRBV – Hart)

Sustainability-related capabilities can create advantage:

  1. Pollution Prevention: Reduce waste/emissions → cost/efficiency.
  2. Product Stewardship: Environmental focus across lifecycle → differentiation/reputation.
  3. Sustainable Development: Long-term growth aligned with environmental/social limits.

LEADERSHIP

Situational Leadership (Hersey–Blanchard)

Style must match follower readiness (competence + commitment).

  • Leader Behaviors: Directive (tell/how/structure) vs Supportive (encourage/listen/coach).
  • Styles: Directing (low competence) → Coaching → Supporting → Delegating (high competence/commitment).

Other Leadership Theories

  • Trait Leadership: Leader qualities (Big Five OCEAN).
  • Behavioral Leadership: Task-focused vs people-focused behaviors (“initiating structure” vs “consideration”).
  • Ethical Leadership: Model + reinforce normatively appropriate conduct.
  • Servant Leadership: Leader prioritizes follower growth/well-being first.
  • Authentic Leadership: Self-aware + transparent + values-consistent (trust/psych safety).

EMERGENT LEADERSHIP + ILT (Pres 07)

  • Emergent Leadership: Someone becomes leader through influence/interaction without formal title.
  • ILT (Implicit Leadership Theory): People follow those who match their mental “leader prototypes” (can create bias).

GENDER & LEADERSHIP (Pres 05)

  • Social Role Theory: Stereotypes arise from socially expected roles, affecting interpretation of leadership behavior (double standards).
  • Glass Ceiling: Invisible structural barriers limiting women’s advancement.

INDIVIDUAL PERFORMANCE (Lesson 06)

MARS Model

Performance/Behavior = Motivation (effort) + Ability (skills) + Role perception (understanding expectations) + Situational factors (resources/time) → performance.

Workplace Behaviors

  • Task performance, joining/staying, attendance, counterproductive behavior, OCB.
  • OCB (Organizational Citizenship Behavior): Voluntary extra-role actions helping the organization (Altruism, Courtesy, Sportsmanship, Civic virtue, Conscientiousness).
  • OCBE: Extra-role pro-environment behaviors.

DECISION MAKING + BIAS (Pres 08)

  • Bounded Rationality: Limited time/info/cognition leads to satisficing.
  • System 1: Fast/automatic. System 2: Slow/analytical.

Heuristics/Biases

  • Availability: Judge likelihood by what’s easy to recall.
  • Representativeness: Judge by similarity to stereotype, ignoring base rates.
  • Anchoring: First number/info sticks.
  • Loss Aversion (Prospect Theory): Losses feel stronger than equal gains.
  • Framing Effect: How choice is presented changes decisions.

Exam Move: Identify bias + propose debiasing (more data, check base rates, premortem, diverse perspectives).

ATTITUDES + COMMITMENT (Pres 10)

  • Job Satisfaction: Overall positive/negative evaluation of job.
  • Organizational Commitment (Meyer & Allen): Affective (want to stay), Continuance (need to stay), Normative (ought to stay).

Responses to Dissatisfaction (EVLN)

  • Exit: Quit/leave.
  • Voice: Try to improve.
  • Loyalty: Wait/hope.
  • Neglect: Reduce effort/withdraw.

RESILIENCE (Pres 11 + 12)

Individual & Organizational Resilience

  • Employee Resilience: Capacity to adapt and recover from stress/adversity.
  • COR Theory (Conservation of Resources): Stress occurs when resources (energy, support, self-esteem) are threatened/lost. Resilience involves protecting/rebuilding resources.
  • Org Resilience: Ability to anticipate, cope, adapt, recover, and continue functioning under disruption.

STUDENT PRES 01 OLC (Organizational Life Cycle)

Firms move through stages (birth/growth/maturity/decline unless renewal).

  • Greiner Growth Model: Growth phases create crises requiring new management/structure (e.g., creativity→leadership crisis; delegation→control crisis).
  • Adizes Corporate Life Cycle: Multiple stages (courtship→prime→decline).

Core Idea: Balance flexibility and control.

STUDENT PRES 03 HYBRID WORK

Hybrid work = mix of on-site + remote.

SDT Lens: Motivation thrives when autonomy, competence, and relatedness are supported.

Exam Move: Recommend hybrid practices that protect all 3 (clear goals/feedback for competence; team rituals for relatedness; flexibility for autonomy).

CASE STUDY 01 ITHACA BEER (Exam Approach)

Use McKinsey 7S to diagnose misalignment (e.g., growth strategy but informal structure/systems) → propose 2–4 aligned changes (clarify structure/roles; formalize systems/communication; build skills; adjust style while protecting shared values).

CASE STUDY 02 McDONALD’S (Exam Approach)

Explain success via standardization + division of labor (Taylorism/Fordism) + Mintzberg machine bureaucracy (standardization of work processes) + QSC&V consistency.

Recommend improvements that do NOT break the core mechanism (e.g., job rotation/enrichment; feedback/recognition; limited local discretion; voice mechanisms).

EXAM ANSWER TEMPLATE (Scenario Application)

  1. Define model in 1–2 sentences.
  2. Identify cues in case that match model terms.
  3. Apply explicitly (name mechanism/style/contingency + show evidence).
  4. Give 2–4 specific recommendations.
  5. Justify with fit/alignment logic (“this improves congruence with context and preserves the core coordination mechanism while fixing the weakness”).