CONTENTS
Preface
PART 1 INTRODUCTION TO ORGANIZATIONS = 1
CHAPTER 1 ORGANIZATIONS AND ORGANIZATION THEORY = 2
A Look Inside International Business Machines Corporation = 3
Organization Theory in Action = 6
Topics = 6
Current Challenges = 7
Book Mark 1.0 New Rules for the New Economy : 10 Radical Strategies for a Connected World = 8
Purpose of This Chapter = 11
What Is an Organization = 12
Definition = 12
Importance of Organizations = 12
Organizations as Systems = 14
Open Systems = 14
Organizational Configuration = 15
Dimensions of Organization Design = 16
Structural Dimensions = 17
Contextual Dimensions = 18
In Practice 1.1 W. L. Gore & Associates = 20
The Evolution of Organization Theory and Design = 21
History = 21
The Changing Paradigm of Organization Design = 24
Efficient Performance Versus the Learning Organization = 25
Taking the Lead Cisco Systems : Writing the Rules for the New World of Business = 29
The Role of Organization Theory and Design = 30
In Practice 1.2 Cementos Mexicanos = 30
Framework for the Book = 31
Levels of Analysis = 31
Plan of the Book = 33
Plan of Each Chapter = 33
Summary and Interpretation = 35
Chapter 1 Workbook Measuring Dimensions of Organizations = 37
Case for Analysis SS Technologies Inc.(A) - Introduction = 38
Case for Analysis SS Technologies Inc.(D) - Organizational Design = 40
PART 2 ORGANIZATIONAL PURPOSE AND STRUCTURAL DESIGN = 47
CHAPTER 2 STRATEGY, ORGANIZATION DESIGN, AND EFFECTIVENESS = 48
A Look Inside Danone Group = 49
Top Management Strategic Direction = 50
Book Mark 2.0 Competing on the Edge : Strategy as Structured Chaos = 52
Organizational Purpose = 52
Mission = 53
Operative Goals = 53
Importance of Goals = 55
Summary = 57
Taking the Lead Shooting for the Stars = 57
Organizational Strategies and Design = 57
Porters Competitive Strategies = 58
In Practice 2.1 Starbucks Coffee Co. = 58
Miles and Snow's Strategy Typology = 60
How Strategies Affect Organization Design = 61
Other Factors Affecting Organization Design = 63
Organizational Effectiveness = 64
Contingency Effectiveness Approaches = 64
Goal Approach = 65
In Practice 2.2 White House Office of National Drug Control Policy = 67
Resource-Based Approach = 67
Internal Process Approach = 68
Balanced Effectiveness Approaches = 69
Stakeholder Approach = 69
In Practice 2.2 Delta Air Lines = 70
Competing Values Approach = 71
Summary and Interpretation = 73
Chapter Two Workbook Identifying Company Goals and Strategies = 76
Case for Analysis The University Art Museum = 76
Case for Analysis Airstar, Inc. = 79
Chapter Two Workshop Competing Values and Organizational Effectiveness = 80
CHAPTER 3 FUNDAMENTALS OF ORGANIZATION STRUCTURE = 84
A Look Inside NeoData = 85
Organization Structure = 86
Information-Processing Perspective on Structure = 87
Vertical Information Linkages = 88
Horizontal Information Linkages = 89
In Practice 3.1 American Standard Companies = 92
Organization Design Alternatives = 94
Defined Work Activities = 94
Reporting Relationships = 94
Departmental Grouping Options = 95
Functional, Divisional, and Geographical Designs = 96
Functional Structure = 96
In Practice 3.2 Blue Bell Creameries, Inc. = 97
Functional Structure with Horizontal Linkages = 98
Divisional Structure = 99
In Practice 3.3 Microsoft Corp. = 100
Geographical Structure = 101
Matrix Structure = 102
Conditions for the Matrix = 103
Strengths and Weaknesses = 104
In Practice 3.4 Worldwide Steel = 105
Horizontal Structure = 106
Book Mark 3.0 The Boundaryless Organization : Breaking the Chains of Organizational Structure = 108
Characteristics = 108
In Practice 3.5 Xerox = 110
Strengths and Weaknesses = 110
Hybrid Structure = 112
Applications of Structural Design = 114
Structural Contingencies = 114
Structural Alignment = 115
Symptoms of Structural Deficiency = 115
Summary and Interpretation = 116
Chapter 3 Workbook You and Organization Structure = 119
Case for Analysis C & C Grocery Stores, Inc = 119
Case for Analysis Aquarius Advertising Agency = 122
PART 3 OPEN SYSTEM DESIGN ELEMENTS = 127
CHAPTER 4 THE EXTERNAL ENVIRONMENT = 128
A Look Inside Barnes & Noble = 129
The Environmental Domain = 130
Task Environment = 131
General Environment = 132
International Context = 133
In Practice 4.1 Wal-Mart = 135
Environmental Uncertainty = 136
Simple-Complex Dimension = 136
Stable-Unstable Dimension = 137
Framework = 137
Adapting to Environmental Uncertainty = 139
Positions and Departments = 139
Buffering and Boundary Spanning = 139
Book Mark 4.0 Open Boundaries : Creating Business Innovation Through Complexity = 140
In Practice 4.2 Tommy Hilfiger = 142
Differentiation and Integration = 142
Organic Versus Mechanistic Management Processes = 144
Taking the Lead Rowe Furniture Company = 145
Planning and Forecasting = 146
Framework for Organizational Responses to Uncertainty = 146
Resource Dependence = 146
Controlling Environmental Resources = 148
Establishing Interorganizational Linkages = 148
In Practice 4.3 Toshiba = 151
Controlling the Environmental Domain = 151
Organization-Environment Integrative Framework = 154
Summary and Interpretation = 155
Chapter 4 Workbook Organizations You Rely On = 157
Case for Analysis The Paradoxical Twins : Acme and Omega Electronics = 158
CHAPTER 5 INTERORGANIZATIONAL RELATIONSHIPS = 164
A Look Inside Cisco Systems = 165
Organizational Ecosystems = 166
Is Competition Dead? = 167
The Changing Role of Management = 167
Book Mark 5.0 The Trillion-Dollar Enterprise : How the Alliance Revolution Will Transform
Global Business = 169
Interorganizational Framework = 170
Resource Dependence = 171
Resource Strategies = 171
Power Strategies = 172
Collaborative Networks = 172
International Origins = 173
In Practice 5.1 Toyota Motor Corporation = 174
From Adversaries to Partners = 174
In Practice 5.2 Empire Equipment Company = 176
Population Ecology = 177
Taking the Lead Volkswagen = 177
Organizational Form and Niche = 179
Process of Ecological Change = 180
Strategies for Survival = 181
In Practice 5.3 Charles Schwab Corp = 182
Institutionalism = 182
Institutional Similarity = 184
Summary and Interpretation = 186
Chapter 5 Workbook Management Fads = 189
Case for Analysis Hugh Russel, Inc. = 189
Chapter 5 Workshop Ugh Orange Case = 192
CHAPTER 6 MANUFACTURING AND SERVICE TECHNOLOGIES = 198
A Look Inside French Rags = 199
Organization-Level Manufacturing Technology = 201
Manufacturing Firms = 201
In Practice 6.1 Northeast Utilities and Boston Edison Company = 204
Computer Integrated Manufacturing = 205
Book Mark 6.0 Lean Thinking : Banish Waste and Create Wealth in Your Corporation = 206
Organization-Level Service Technology = 209
Service Firms = 210
Taking the Lead Deere & Co. = 211
In Practice 6.2 Capital Protection Insurance Services = 212
Designing the Service Organization = 213
Departmental Technology = 214
Variety = 214
Analyzability = 214
Framework = 215
Department Design = 217
In Practice 6.3 "$$M^*$$$$A^*$$$$S^*$$H" Versus "E.R." = 219
Workflow Interdependence Among Departments = 219
Types = 219
Structural Priority = 221
Structural Implications = 222
In Practice 6.4 Athletic Teams = 223
Impact of Technology on Job Design = 224
Job Design = 224
Sociotechnical Systems = 225
Summary and Interpretation = 227
Chapter 6 Workbook Bistro Technology = 229
Case for Analysis Acetate Department = 231
CHAPTER 7 INFORMATION TECHNOLOGY AND KNOWLEDGE MANAGEMENT = 238
A Look Inside Weyerhaeuser Company = 239
Information Technology Evolution = 240
Operations and Business Resource Applications = 241
Information Technology as a Strategic Weapon = 243
In Practice 7.1 Turner Industries Ltd. = 245
Strategic Use of Information Technology = 245
Low-Cost Leadership = 246
Differentiation = 247
In Practice 7.2 Nike, Inc. = 249
E-commerce = 249
New Options for Organization Design = 251
Dynamic Network Structure = 252
In Practice 7.3 Monorail = 252
Inrerorganizational Relationships = 253
IT Impact on Organization Design = 255
Book Mark 7.0 Business @ the Speed of Thought : Using a Digital Nervous System = 256
Knowledge Management = 257
What is Knowledge? = 258
Approaches to Knowledge Management = 259
In Practice 7.4 DPR Construction, Inc. = 258
Mechanisms for Explicit Knowledge Management = 261
Mechanisms for Tacit Knowledge Management = 262
Taking the Lead Creating Knowledge at Novartis = 264
Leveraging Professional Knowledge and Expertise = 266
Summary and Interpretation = 266
Chapter 7 Workbook Are You Fast Enough to Succeed in Internet Time? = 269
Case for Analysis Century Medical = 270
Case for Analysis Product X = 272
PART 4 INTERNAL DESIGN ELEMENTS = 276
CHAPTER 8 ORGANIZATION SIZE, LIFE CYCLE, AND CONTROL = 278
A Look Inside Oxford Health Plans = 279
Organization Size : Is Bigger Better? = 280
Pressures for Growth = 280
Large Versus Small = 281
Organizational Life Cycle = 284
Stages of Life Cycle Development = 284
Book Mark 8.0 The Alchemy of Growth : Practical Insights for Building the Enduring Enterprise = 285
In Practice 8.1 Biogen Inc. = 287
Organizational Characteristics During the Life Cycle = 288
Organizational Bureaucracy and Control = 289
What is Bureaucracy? = 289
Size and Structural Control = 290
Bureaucracy in a Changing World = 291
Dynamic Control Systems = 293
Bureaucratic Control = 293
In Practice 8.2 TNT UK = 296
Market Control = 296
Taking the Lead E-Commerce Metrics = 297
In Practice 8.3 Imperial Oil Limited = 298
Clan Control = 298
In Practice 8.4 Columbus Mills = 299
The Balanced Scorecard = 300
Summary and Interpretation = 302
Chapter 8 Workbook Control Mechanisms = 304
Case for Analysis Sunflower Incorporated = 305
Chapter 8 Workshop Windsock, Inc. = 307
CHAPTER 9 ORGANIZATIONAL CULTURE AND ETHICAL VALUES = 312
A Look Inside SAS Institute = 313
Organizational Culture = 314
What Is Culture? = 314
Emergence and Purpose of Culture = 314
Interpreting Culture = 315
Organizational Design and Culture = 319
The Adaptability／Entrepreneurial Culture = 319
The Mission Culture = 320
The Clan Culture = 320
The Bureaucratic Culture = 321
Culture Strength and Organizational Subcultures = 321
In Practice 9.1 Pitney Bowes Credit Corporation = 322
Culture and the Learning Organization = 322
Taking the Lead Trilogy Software Inc. = 323
In Practice 9.2 Netscape Communications Corp = 325
Ethical Values in Organizations = 326
Book Mark 9.0 Built to Last : Successful Habits of Visionary Companies = 326
Sources of Ethical Values in Organizations = 328
Personal Ethics = 329
Organizational Culture = 329
Organizational Systems = 330
External Stakeholders = 330
How Leaders Shape Culture and Ethics = 331
Values-Based Leadership = 332
In Practice 9.3 Herman Miller = 332
Formal Structure and Systems = 333
In Practice 9.4 Holt Companies = 335
Corporate Culture in a Global Environment = 336
Summary and Interpretation = 337
Chapter 9 Workbook Shop 'til You Drop : Corporate Culture in the Retail World = 339
Case for Analysis Implementing Change at National Industrial Products = 341
Case for Analysis Does This Milkshake Taste Funny? = 342
CHAPTER 10 INNOVATION AND CHANGE = 350
A Look Inside 3M = 351
Innovate or Perish : The Strategic Role of Change = 352
Incremental Versus Radical Change = 353
In Practice 10.1 Progressive Corporation = 355
Strategic Types of Change = 355
Elements for Successful Change = 357
In Practice 10.2 Cadwalader, Wickersham, and Taft = 359
Technology Change = 360
The Ambidextrous Approach = 360
Techniques for Encouraging Technology Change = 361
Book Mark 10.0 The Innovator's Dilemma : When New Technologies Cause Great Firms to Fail = 364
New Products and Services = 365
New Product Success Rate = 365
Reasons for New Product Success = 366
Horizontal Linkage Model = 366
In Practice 10.3 Kellogg = 368
Achieving Competitive Advantage with Rapid Product Innovation = 368
Strategy and Structure Change = 369
The Dual-Core Approach = 370
In Practice 10.4 Hire Quality, Inc. = 372
Culture Change = 373
Reengineering and Horizontal Organization = 373
Total Quality Management = 374
The Learning Organization = 374
OD Culture Change Interventions = 375
Strategies for Implementing Change = 376
Leadership for Change = 377
Taking the Lead U.S. Agriculture Department's Animal and Plant Health Inspection Service = 377
Barriers to Change = 378
Techniques for Implementation = 379
Summary and Interpretation = 381
Chapter 10 Workbook Innovation Climate = 384
Case for Analysis Shoe Corporation of Illinois = 386
Case for Analysis Southern Discomfort = 391
PART 5 MANAGING DYNAMIC PROCESSES = 397
CHAPTER 11 DECISION MAKING PROCESSES = 398
A Look Inside White Rose Nursery and Crafts = 399
Definitions = 400
Taking the Lead At US West, Information is Power = 401
Individual Decision Making = 402
Rational Approach = 403
In Practice 11.1 Alberta Manufacturing = 405
Bounded Rationality Perspective = 406
Book Mark 11.0 The Dynamic Decisionmaker = 408
In Practice 11.2 Paramount Pictures Corporation = 409
Organizational Decision Making = 410
Management Science Approach = 410
In Practice 11.3 The SABRE Group = 411
Carnegie Model = 412
In Practice 11.4 Encyclopaedia Britannica = 414
Incremental Decision Process Model = 415
In Practice 11.5 Gillette Company = 418
The Learning Organization = 419
Combining the Incremental Process and Carnegie Models = 419
Garbage Can Model = 420
In Practice 11.6 Casablanca = 423
Contingency Decision-Making Framework = 424
Problem Consensus = 424
Technical Knowledge About Solutions = 424
Contingency Framework = 424
Special Decision Circumstances = 427
High-Velocity Environments = 428
Decision Mistakes and Learning = 428
Escalating Commitment = 429
Summary and Interpretation = 430
Chapter 11 Workbook Decision Styles = 432
Case for Analysis Cracking the Whip = 433
Case for Analysis The Dilemma of Aliesha State College : Competence Versus Need = 435
CHAPTER 12 CONFLICT, POWER, AND POLITICS = 440
A Look Inside Pacific Medical Center = 441
What Is Intergroup Conflict? = 442
Why Conflict Exists = 443
Taking the Lead GE Plastics／Borg-Warner = 445
Individual Versus Organizational Power = 447
Power Versus Authority = 447
Book Mark 12.0 The 48 Laws of Power = 448
Vertical Sources of Power = 449
In Practice 12.1 Xerox = 452
Horizontal Sources of Power = 453
Strategic Cotingencies = 453
Power Sources = 454
In Practice 12.2 University of Illinois = 456
In Practice 12.3 Crystal Manufacturing = 457
Political Processes in Organizations = 458
Definition = 459
When Is Political Activity Used? = 459
Using Power, Politics, and Collaboration = 460
Tactics for Increasing Power = 460
Political Tactics for Using Power = 462
In Practice 12.4 Halifax Business Machines = 463
Tactics for Enhancing Collaboration = 464
In Practice 12.5 Aluminum Company of America／International Association of Machinists = 464
Summary and Interpretation = 468
Chapter 12 Workbook How Do You Handle Conflict = 470
Case for Analysis The Daily Tribune = 472
Case for Analysis Pierre Dux = 474
CHAPTER 13 CONTEMPORARY TRENDS IN ORGANIZATION DESIGN = 480
A Look Inside Kalahari Bushmen = 481
The Global Environment = 482
Attributes of Organizational Excellence = 483
Taking the Lead Host Universal = 487
Designs for the Global Arena = 488
Stages of International Development = 488
Book Mark 13.0 The Living Company : Habits for Survival in a Turbulent Business Environment = 489
International Strategic Alliances = 490
Global Work Teams = 491
Structural Designs for Global Operations = 492
Model for Global Versus Local Opportunities = 492
International Division = 494
Global Product Division Structure = 495
Global Geographic Division Structure = 496
In Practice 13.1 Dow Chemical = 496
Global Matrix Structure = 497
In Practice 13.2 Asea Brown Boveri(ABB) = 497
Transnational Model = 498
The Trend Toward Empowerment = 501
Reasons for Empowerment = 502
In Practice 13.3 Monarch Marking Systems = 503
Elements of Empowerment = 504
Empowerment Applications = 505
Leading the Change Toward Learning Organizations = 506
Transformational Leadership = 507
In Practice 13.4 Corsair Communications Inc. = 508
Assessing the Impact of Top Leadership = 509
Experiments with Top-Management Teams = 509
Succession and Adaptation = 510
Succession and Performance = 511
Managing Organizational Decline = 512
Definition and Causes = 513
A Model of Decline Stages = 514
In Practice 13.5 Mudge, Rose, Guthrie, Alexander & Ferdon = 515
Summary and Interpretation = 516
Chapter 13 Workbook Creating a Learning Organization = 516
Case for Analysts W.L. Gore & Associates, Inc. : Entering 1998 = 520
INTEGRATIVE CASES = 541
1.0 Custom Chip, Inc. = 543
2.0 Microsoft : Adapting to New Challenges = 550
3.1 Littleton Manufacturing(A) = 560
3.2 Littleton Manufacturing(B) = 573
4.0 XEL Communications, Inc.(C) : Forming a Strategic Partnership = 576
5.0 National Bank of San Francisco = 583
6.0 The Audubon Zoo, 1993 = 586
7.0 Dowling Flexible Metals = 600
GLOSSARY = 605
NAME INDEX = 613
CORPORATE NAME INDEX = 623
SUBJECT INDEX = 627
