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Part 1: Introduction to Organizations1

Chapter 1: Organizations and Organization Theory2

A Look Inside: Xerox Corporation3

Organization Theory in Action6

Topics6

Current Challenges6

Leading by Design: The Rolling Stones7

Purpose of This Chapter10

What Is an Organization?10

Definition10

Types of Organizations11

Importance of Organizations12

Book Mark 1.0: The Company: A Short History of a Revolutionary Idea12

Perspectives on Organizations14

Open Systems14

Organizational Configuration16

Dimensions of Organization Design17

Structural Dimensions17

Contextual Dimensions20

In Practice: W. L. Gore ＆ Associates21

Performance and Effectiveness Outcomes22

in Practice: Federal Bureau of Investigation24

The Evolution of Organization Theory and Design25

Historical Perspectives25

Contemporary Organization Design27

Efficient Performance versus the Learning Organization28

In Practice: Cementos Mexicanos32

Framework for the Book33

Levels of Analysis33

Plan of the Book34

Plan of Each Chapter36

Summary and Interpretation36

Chapter 1 Workbook: Measuring Dimensions of Organizations38

Case for Analysis: Perdue Farms Inc.:Responding to 21st Century Challenges39

Part 2: Organizational Purpose and Structural Design53

Chapter 2: Strategy, Organization Design, and Effectiveness54

A Look Inside: Starbucks Corporation55

Purpose of This Chapter56

The Role of Strategic Direction in Organization Design56

Organizational Purpose58

Mission58

Operative Goals59

Leading by Design: Wegmans61

The Importance of Goals62

A Framework for Selecting Strategy and Design62

Porter's Competitive Strategies63

In Practice: Ryanair64

Miles and Snow's Strategy Typology65

Book Mark 2.0: What Really Works:The 4 + 2 Formula for Sustained Business Success66

How Strategies Affect Organization Design67

Other Factors Affecting Organization Design69

Assessing Organizational Effectiveness70

Contingency Effectiveness Approaches70

Goal Approach71

In Practice: Chevrolet72

Resource-based Approach73

Internal Process Approach74

An Integrated Effectiveness Model75

In Practice: The Thomson Corporation78

Summary and Interpretation79

Chapter 2 Workbook: Identifying Company Goals and Strategies80

Case for Analysis: The University Art Museum81

Case for Analysis: Airstar Inc.84

Chapter 2 Workshop: Competing Values and Organizational Effectiveness85

Chapter 3: Fundamentals of Organization Structure88

A Look Inside: Ford Motor Company89

Purpose of This Chapter90

Organization Structure90

Information-Processing Perspective on Structure91

Book Mark 3.0: The Future of Work: How the New Order of Business Will Shape Your Organization,Your Management Style,and Your Life92

Vertical Information Linkages93

In Practice: Oracle Corporation94

Horizontal Information Linkages95

Organization Design Alternatives99

Required Work Actwities99

Reporting Relationships100

Departmental Grouping Options100

Functional,Divisional,and Geographical Designs102

Functional Structure102

In Practice: Blue Bell Creameries Inc.103

Functional Structure with Horizontal Linkages104

Divisional Structure104

In Practice: Microsoft106

Geographical Structure107

Matrix Structure108

Conditions for the Matrix109

Strengths and Weaknesses110

In Practice: Englander Steel111

Horizontal Structure113

Characteristics114

In Practice: GE Salisbury115

Strengths and Weaknesses116

Virtual Network Structure117

How the Structure Works117

In Practice: TiVo Inc.118

Strengths and Weaknesses118

Hybrid Structure120

Applications of Structural Design122

Structural Alignment122

Symptoms of Structural Deficiency123

Summary and Interpretation124

Chapter 3 Workbook: You and Organization Structure126

Case for Analysis: C ＆ C Grocery Stores Inc.126

Case for Analysis: Aquarius Advertising Agency129

Part 3: Open System Design Elements135

Chapter 4: The External Environment136

A Look Inside: Nokia137

Purpose of This Chapter138

The Environmental Domain138

Task Environment138

General Environment140

International Context141

In Practice: Ogilvy ＆ Mather142

Environmental Uncertainty142

Simple-Complex Dimension143

Stable-Unstable Dimension144

Book Mark 4.0: Confronting Reality: Doing What Matters to Get Things Right144

Framework145

Adapting to Environmental Uncertainty147

Positions and Departments147

Buffering and Boundary Spanning147

In Practice: Genesco149

Differentiation and Integration149

Organic versus Mechanistic Management Processes151

Planning,Forecasting,and Responsiveness152

Leading by Design: Rowe Furniture Company153

Framework for Organizational Responses to Uncertainty154

Resource Dependence154

Controlling Environmental Resources156

Establishing Interorganizational Linkages156

In Practice: Verizon and SBC Communications Inc.157

Controlling the Environmental Domain159

In Practice: Wal-Mart160

Organization-Environment Integrative Framework161

Summary and Interpretation161

Chapter 4 Workbook: Organizations You Rely On164

Case for Analysis: The Paradoxical Twins: Acme and Omega Electronics165

Chapter 5: Interorganizational Relationships170

A Look Inside: International Truck and Engine Corporation171

Purpose of This Chapter172

Organizational Ecosystems172

Is Competition Dead?173

In Practice: Amazon.com Inc.173

The Changing Role of Management174

Interorganizational Framework176

Resource Dependence177

Resource Strategies177

Power Strategies178

Collaborative Networks178

Why Collaboration?179

From Adversaries to Partners180

Book Mark 5.0: Managing Strategic Relationships: The Key to Business Success181

In Practice: Bombardier182

Population Ecology183

Organizational Form and Niche184

Process of Ecological Change185

leading by Design: Shazam--It's Magic!186

Strategies for Survival187

In Practice: Genentech188

Institutionalism188

In Practice: Wal-Mart189

The Institutional View and Organization Design190

Institutional Similarity190

Summary and Interpretation193

Chapter 5 Workbook: Management Fads195

Case for Analysis: Oxford Plastics Company195

Case for Analysis: Hugh Russel Inc.196

Chapter 5 Workshop: Ugli Orange Case199

Chapter 6: Designing Organizations for the International Environment204

A Look Inside: Gruner + Jahr205

Purpose of This Chapter206

Entering the Global Arena206

Motivations for Global Expansion206

Stages of International Development209

Global Expansion through International Strategic Alliances210

Designing Structure to Fit Global Strategy211

Model for Global versus Local Opportunities211

International Division214

Global Product Division Structure215

Global Geographical Division Structure215

In Practice: Colgate-Palmolive Company217

Global Matrix Structure218

In Practice: Asea Brown Boveri Ltd. (ABB)219

Building Global Capabilities220

The Global Organizational Challenge220

In Practice: Sony223

Global Coordination Mechanisms224

Cultural Differences in Coordination and Control227

National Value Systems227

Three National Approaches to Coordination and Control227

Book Mark 6.0: Cross-Cultural Business Behavior: Marketing,Negotiating and Managing Across Cultures228

The Transnational Model of Organization230

Summary and Interpretation233

Chapter 6 Workbook: Made in the U.S.A.?235

Case for Analysis: TopDog Software235

Case for Analysis: Rhodes Industries236

Chapter 6 Workshop: Comparing Cultures239

Part 4: Internal Design Elements243

Chapter 7: Manufacturing and Service Technologies244

A Look Inside: American Axle ＆ Manufacturing(AAM)245

Purpose of This Chapter247

Core Organization Manufacturing Technology248

Manufacturing Firms248

Strategy,Technology,and Performance250

In Practice: Printronix251

Book Mark 7.0: Inviting Disaster:Lessons from the Edge of Technology252

Contemporary Applications253

Flexible Manufacturing Systems253

Lean Manufacturing254

In Practice: Autoliv255

Leading by Design: Dell Computer256

Performance and Structural Implications257

Core Organization Service Technology259

Service Firms259

Designing the Service Organization262

In Practice: Pret A Manger263

Non-Core Departmental Technology264

Variety264

Analyzability264

Framework264

Department Design266

In Practice: Parkland Memorial Hospital268

Workflow Interdependence among Departments269

Types269

Structural Priority271

Structural Implications272

In Practice: Athletic Teams273

Impact of Technology on Job Design274

Job Design274

Sociotechnical Systems275

Summary and Interpretation276

Chapter 7 Workbook: Bistro Technology278

Case for Analysis: Acetate Department280

Chapter 8: Information Technology and Control286

A Look Inside: The Progressive Group of Insurance Companies287

Purpose of This Chapter289

Information Technology Evolution289

In Practice: Anheuser-Busch290

Information for Decision Making and Control291

Organizational Decision-Making Systems291

Feedback Control Model293

Management Control Systems293

In Practice: eBay295

The Balanced Scorecard296

Adding Strategic Value: Strengthening Internal Coordination298

Intranets298

Enterprise Resource Planning299

Knowledge Management300

Book Mark 8.0: The Myth of the Paperless Office302

In Practice: Montgomery-Watson Harza303

Adding Strategic Value: Strengthening External Relationships304

Leading by Design: Corrugated Supplies304

The Integrated Enterprise305

Customer Relationship Management307

E-Business Organization Design307

In Practice: Tesco.com308

IT Impact on Organization Design309

Summary and Interpretation311

Chapter 3 Workbook: Are You Fast Enough to Succeed in Internet Time?313

Case for Analysis: Century Medical315

Case for Analysis: Product X316

Chapter 9: Organization Size,Life Cycle and Decline319

A Look Inside: Interpol320

Purpose of This Chapter321

Organization Size: Is Bigger Better?321

Pressures for Growth321

Dilemmas of Large Size322

Book Mark 9.0: Execution: The Discipline of Getting Things Done325

Organizational Life Cycle326

Stages of Life Cycle Development326

In Practice: Nike329

Organizational Characteristics during the Life Cycle330

Organizational Bureaucracy and Control331

What Is Bureaucracy?332

In Practice: United Parcel Service333

Size and Structural Control334

Bureaucracy in a Changing World335

Organizing Temporary Systems for Flexibility and Innovation336

Other Approaches to Reducing Bureaucracy337

Leading by Design: The Salvation Army338

Organizational Control Strategies339

Bureaucratic Control339

Market Control340

In Practice: Imperial Oil Limited341

Clan Control341

In Practice: Southwest Airlines342

Organizational Decline and Downsizing343

Definition and Causes343

A Model of Decline Stages344

In Practice: Brobeck Phleger ＆ Harrison LLP346

Downsizing Implementation346

In Practice: Charles Schwab ＆ Company348

Summary and Interpretation348

Chapter 9 Workbook: Control Mechanisms350

Case for Analysis: Sunflower Incorporated351

Chapter 9 Workshop: Windsock Inc.352

Part 5: Managing Dynamic Processes357

Chapter 10: Organizational Culture and Ethical Values358

A Look Inside: Boots Company PLC359

Purpose of This Chapter360

Organizational Culture361

What Is Culture?361

Emergence and Purpose of Culture361

Interpreting Culture363

Book Mark 10.0: Good to Great: Why Some Companies Make the Leap ... And Others Don't364

Organization Design and Culture367

The Adaptability Culture368

The Mission Culture368

In Practice: J.C. Penney369

The Clan Culture369

The Bureaucratic Culture369

Culture Strength and Organizational Subcultures370

In Practice: Pitney Bowes Credit Corporation371

Organizational Culture,Learning,and Performance371

Leading by Design: JetBlue Airways372

Ethical Values and Social Responsibility374

Sources of Individual Ethical Principles374

Managerial Ethics and Social Responsibility375

Does It Pay to Be Good?377

Sources of Ethical Values in Organizations378

Personal Ethics378

Organizational Culture379

Organizational Systems379

External Stakeholders380

How Leaders Shape Culture and Ethics381

Values-based Leadership381

In Practice: Kingston Technology Co.382

Formal Structure and Systems382

In Practice: General Electric385

Corporate Culture and Ethics in a Global Environment386

Summary and Interpretation387

Chapter 10 Workbook: Shop 'til You Drop: Corporate Culture in the Retail World389

Case for Analysis: Implementing Change at National Industrial Products390

Case for Analysis: Does This Milkshake Taste Funny?392

Chapter 10 Workshop: The Power of Ethics394

Chapter 11: Innovation and Change398

A Look Inside: Toyota Motor Corporation399

Purpose of This Chapter400

Innovate or Perish: The Strategic Role of Change400

Incremental versus Radical Change400

Strategic Types of Change402

Leading by Design: Google403

Elements for Successful Change405

Technology Change407

The Ambidextrous Approach407

Techniques for Encouraging Technology Change408

In Practice: W. L. Gore411

New Products and Services412

New Product Success Rate412

Reasons for New Product Success412

Horizontal Coordination Model413

In Practice: Procter ＆ Gamble415

Achieving Competitive Advantage: The Need for Speed416

Strategy and Structure Change417

The Dual-Core Approach417

Organization Design for Implementing Administrative Change418

In Practice: Tyco International419

Culture Change420

Forces for Culture Change420

In Practice: X-Rite Inc.421

Organization Development Culture Change Interventions422

Strategies for Implementing Change424

Book Mark 11.0: The Change Monster: The Human Forces That Fuel or Foil Corporate Transformation and Change424

Leadership for Change425

Barriers to Change426

Techniques for Implementation426

Summary and Interpretation429

Chapter 11 Workbook: Innovation Climate430

Case for Analysis: Shoe Corporation of Illinois432

Case for Analysis: Southern Discomfort436

Chapter 12: Decision-Making Processes441

A Look Inside: Maytag442

Purpose of This Chapter443

Definitions443

Individual Decision Making445

Rational Approach445

In Practice: Alberta Consulting448

Bounded Rationality Perspective448

Leading by Design: Motek450

Book Mark 12.0: Blink: The Power of Thinking without Thinking452

In Practice: Paramount Pictures453

Organizational Decision Making453

Management Science Approach453

In Practice: Continental Airlines454

Carnegie Model456

In Practice: Encyclopaedia Britannica457

Incremental Decision Process Model458

In Practice: Gillette Company461

The Learning Organization462

Combining the Incremental Process and Carnegie Models462

Garbage Can Model463

In Practice: ？Huckabees466

Contingency Decision-Making Framework467

Problem Consensus467

Technical Knowledge about Solutions468

Contingency Framework468

Special Decision Circumstances471

High-Velocity Environments471

Decision Mistakes and Learning472

Escalating Commitment473

Summary and Interpretation473

Chaptei 12 Workbook: Decision Styles475

Case for Analysis: Cracking the Whip476

Case for Analysis: The Dilemma of Aliesha State College: Competence versus Need477

Chapter 13: Conflict,Power,and Politics481

A Look Inside: Morgan Stanley482

Purpose of This Chapter483

Intergroup Conflict in Organizations483

Sources of Conflict484

Leading by Design: Advanced Cardiovascular Systems486

Rational versus Political Model487

Power and Organizations488

Individual versus Organizational Power489

Power versus Authority489

Vertical Sources of Power490

Horizontal Sources of Power494

In Practice: University of Illinois496

In Practice: HCA and Aetna Inc.498

Political Processes in Organizations498

Definition499

When Is Political Activity Used?500

Using Power,Politics,and Collaboration500

Tactics for Increasing Power501

Political Tactics for Using Power502

Book Mark 13.0: Influence: Science and Practice504

In Practice: Yahoo!505

Tactics for Enhancing Collaboration505

In Practice: Aluminum Company of America/International Association of Machinists506

Summary and Interpretation508

Chapter 13 Workbook How Do You Handle Conflict?510

Case for Analysis. The Daily Tribune511

Case for Analysis: Pierre Dux512

Glossary517

Subject Index527