Organizational theory, design, and change

Cover......Page 1
Contents......Page 8
Preface......Page 18
  What Is an Organization?......Page 24
   How Does an Organization Create Value?......Page 26
   To Increase Specialization and the Division of Labor......Page 28
   To Economize on Transaction Costs......Page 29
   To Exert Power and Control......Page 30
   Organizational Structure......Page 31
   Organizational Design and Change......Page 32
   Dealing with Contingencies......Page 34
   Gaining Competitive Advantage......Page 35
   The Consequences of Poor Organizational Design......Page 37
  How Do Managers Measure Organizational Effectiveness?......Page 39
   The Internal Systems Approach: Innovation......Page 40
   The Technical Approach: Efficiency......Page 41
   Measuring Effectiveness: Organizational Goals......Page 42
  The Plan of This Book......Page 43
   Organizational Change......Page 45
  Discussion Questions......Page 46
   Analyzing the Organization: Design Module #1......Page 47
   Assignment......Page 48
   Inside Stakeholders......Page 51
   Outside Stakeholders......Page 53
  Organizational Effectiveness: Satisfying Stakeholders\' Goals and Interests......Page 57
   Competing Goals......Page 58
   Allocating Rewards......Page 59
  Top Managers and Organizational Authority......Page 60
   The Chief Executive Officer......Page 62
   The Top-Management Team......Page 63
   The Moral Hazard Problem......Page 64
   Solving the Agency Problem......Page 65
  Top Managers and Organizational Ethics......Page 66
   Ethics and the Law......Page 67
   Ethics and Organizational Stakeholders......Page 68
   Sources of Organizational Ethics......Page 70
   Why Do Ethical Rules Develop?......Page 72
   Why Does Unethical Behavior Occur?......Page 74
  Creating an Ethical Organization......Page 75
   Supporting the Interests of Stakeholder Groups......Page 76
  Summary......Page 77
   Assignment......Page 78
  What Is the Organizational Environment?......Page 82
   The Specific Environment......Page 84
   The General Environment......Page 86
   Sources of Uncertainty in the Organizational Environment......Page 88
  Resource Dependence Theory......Page 92
  Interorganizational Strategies for Managing Resource Dependencies......Page 93
   Developing a Good Reputation......Page 94
   Strategic Alliances......Page 95
   Joint Venture......Page 98
  Strategies for Managing Competitive Resource Interdependencies......Page 99
   Collusion and Cartels......Page 100
   Merger and Takeover......Page 101
  Transaction Cost Theory......Page 102
   Sources of Transaction Costs......Page 103
   Transaction Costs and Linkage Mechanisms......Page 104
   Using Transaction Cost Theory to Choose an Interorganizational Strategy......Page 105
  Summary......Page 109
   The Ethical Dimension #3......Page 110
   Assignment......Page 111
  Differentiation......Page 115
   Organizational Roles......Page 117
   Subunits: Functions and Divisions......Page 118
   Differentiation at the B.A.R. and Grille......Page 119
   Organizational Design Challenges......Page 120
   Integration and Integrating Mechanisms......Page 122
   Differentiation versus Integration......Page 125
   Centralization versus Decentralization of Authority......Page 126
   Formalization: Written Rules......Page 129
   Socialization: Understood Norms......Page 130
   Standardization versus Mutual Adjustment......Page 131
  Mechanistic and Organic Organizational Structures......Page 132
   Organic Structures......Page 133
   Lawrence and Lorsch on Differentiation, Integration, and the Environment......Page 135
   Burns and Stalker on Organic versus Mechanistic Structures and the Environment......Page 138
  Summary......Page 139
   Analyzing the Organization: Design Module #4......Page 140
   Assignment......Page 141
   The Emergence of the Hierarchy......Page 144
   Size and Height Limitations......Page 145
   Problems with Tall Hierarchies......Page 147
   The Ideal Number of Hierarchical Levels: The Minimum Chain of Command......Page 150
   Span of Control......Page 151
   Horizontal Differentiation......Page 153
   Centralization......Page 155
   Standardization......Page 156
  The Principles of Bureaucracy......Page 157
   The Advantages of Bureaucracy......Page 160
   Management by Objectives......Page 162
  The Influence of the Informal Organization......Page 163
  IT, Empowerment, and Self-Managed Teams......Page 164
  Discussion Questions......Page 166
   Assignment......Page 167
  Functional Structure......Page 171
   Control Problems in a Functional Structure......Page 173
   Solving Control Problems in a Functional Structure......Page 174
  From Functional Structure to Divisional Structure......Page 175
   Product Division Structure......Page 177
   Multidivisional Structure......Page 179
   Product Team Structure......Page 184
  Divisional Structure II: Geographic Structure......Page 186
  Divisional Structure III: Market Structure......Page 187
  Matrix Structure......Page 189
   Disadvantages of a Matrix Structure......Page 190
   The Multidivisional Matrix Structure......Page 191
   Hybrid Structure......Page 193
   Advantages of Network Structures......Page 194
   The Boundaryless Organization......Page 195
   E-Commerce......Page 196
  Summary......Page 197
   Assignment......Page 198
  What Is Organizational Culture?......Page 202
   Differences in Global Values and Norms......Page 205
   Socialization and Socialization Tactics......Page 207
   Stories, Ceremonies, and Organizational Language......Page 210
   Characteristics of People within the Organization......Page 212
   Organizational Ethics......Page 214
   Property Rights......Page 216
   Organizational Structure......Page 219
  Can Organizational Culture Be Managed?......Page 220
   Approaches to Social Responsibility......Page 222
   Why Be Socially Responsible?......Page 223
  Summary......Page 225
   The Ethical Dimension #7......Page 226
   Assignment......Page 227
  Strategy and the Environment......Page 230
   Sources of Core Competences......Page 231
   Global Expansion and Core Competences......Page 233
   Four Levels of Strategy......Page 234
   Strategies to Lower Costs or Differentiate Products......Page 236
   Functional-Level Strategy and Structure......Page 238
   Functional-Level Strategy and Culture......Page 239
  Business-Level Strategy......Page 240
   Strategies to Lower Costs or Differentiate Products......Page 241
   Business-Level Strategy and Structure......Page 242
   Business-Level Strategy and Culture......Page 245
  Corporate-Level Strategy......Page 247
   Vertical Integration......Page 248
   Unrelated Diversification......Page 249
   Corporate-Level Strategy and Structure......Page 250
   Corporate-Level Strategy and Culture......Page 252
  Implementing Strategy across Countries......Page 253
   Implementing International Strategy......Page 255
   Implementing Global Strategy......Page 256
   Implementing Transnational Strategy......Page 257
  Summary......Page 258
   Making the Connection #8......Page 259
   Assignment......Page 260
  What Is Technology?......Page 263
  Technology and Organizational Effectiveness......Page 265
   Small-Batch and Unit Technology......Page 267
   Large-Batch and Mass Production Technology......Page 270
   Technical Complexity and Organizational Structure......Page 271
  Routine Tasks and Complex Tasks: The Theory of Charles Perrow......Page 273
   Task Variability and Task Analyzability......Page 274
   Four Types of Technology......Page 275
   Routine Technology and Organizational Structure......Page 276
  Task Interdependence: The Theory of James D. Thompson......Page 278
   Mediating Technology and Pooled Interdependence......Page 279
   Long-Linked Technology and Sequential Interdependence......Page 281
   Intensive Technology and Reciprocal Interdependence......Page 282
  From Mass Production to Advanced Manufacturing Technology......Page 284
  Advanced Manufacturing Technology: Innovations in Materials Technology......Page 286
   Computer-Aided Materials Management......Page 287
   Just-in-Time Inventory Systems......Page 288
   Flexible Manufacturing Technology and Computer-Integrated Manufacturing......Page 289
  Summary......Page 290
   Choosing a Technology......Page 291
   Assignment......Page 292
  What Is Organizational Change?......Page 296
   Targets of Change......Page 297
   Forces for Change......Page 298
   Organization-Level Resistance to Change......Page 301
   Group-Level Resistance to Change......Page 302
   Lewin\'s Force-Field Theory of Change......Page 303
   Developments in Evolutionary Change: Sociotechnical Systems Theory......Page 304
   Total Quality Management......Page 305
   Developments in Revolutionary Change: Reengineering......Page 308
   Restructuring......Page 313
  Managing Change: Action Research......Page 314
   Determining the Desired Future State......Page 315
   Implementing Action......Page 316
   Institutionalizing Action Research......Page 317
   OD Techniques to Deal with Resistance to Change......Page 318
   OD Techniques to Promote Change......Page 320
  Summary......Page 322
   Managing Change......Page 323
   Analyzing the Organization: Design Module #10......Page 324
  The Organizational Life Cycle......Page 328
  Organizational Birth......Page 329
   Developing a Plan for a New Business......Page 330
  A Population Ecology Model of Organizational Birth......Page 332
   Number of Births......Page 333
   Survival Strategies......Page 334
   The Process of Natural Selection......Page 335
  The Institutional Theory of Organizational Growth......Page 337
   Organizational Isomorphism......Page 338
  Greiner\'s Model of Organizational Growth......Page 339
   Stage 1: Growth through Creativity......Page 340
   Stage 3: Growth through Delegation......Page 341
   Stage 4: Growth through Coordination......Page 342
   Stage 5: Growth through Collaboration......Page 343
   Effectiveness and Profitability......Page 344
   Organizational Inertia......Page 346
   Changes in the Environment......Page 347
   Weitzel and Jonsson\'s Model of Organizational Decline......Page 348
  Summary......Page 351
   The Ethical Dimension #11......Page 352
   Assignment......Page 353
  Organizational Decision Making......Page 357
   The Rational Model......Page 358
   The Carnegie Model......Page 360
   The Unstructured Model......Page 362
   The Garbage-Can Model......Page 363
   Types of Organizational Learning......Page 365
   Levels of Organizational Learning......Page 366
  Knowledge Management and Information Technology......Page 370
  Factors Affecting Organizational Learning......Page 372
   Cognitive Dissonance......Page 373
   Frequency and Representativeness......Page 374
   Escalation of Commitment......Page 375
   Strategies for Organizational Learning......Page 376
   Using Game Theory......Page 377
   Nature of the Top-Management Team......Page 379
   Devil\'s Advocacy and Dialectical Inquiry......Page 380
   Collateral Organizational Structure......Page 381
  Summary......Page 382
   Analyzing the Organization: Design Module #12......Page 383
   Assignment......Page 384
   Two Types of Innovation......Page 389
   Protecting Innovation through Property Rights......Page 391
  Innovation, Intrapreneurship, and Creativity......Page 393
   Entrepreneurship as \"Creative Destruction\"......Page 394
   Innovation and the Product Life Cycle......Page 395
   Project Management......Page 397
   Stage-Gate Development Funnel......Page 399
   Using Cross-Functional Teams and a Product Team Structure......Page 400
   Team Leadership......Page 402
   Skunk Works and New Venture Divisions......Page 403
   Creating a Culture for Innovation......Page 404
  Innovation and Information Technology......Page 406
  Innovation and Information Synergies......Page 407
   IT and Organizational Structure and Culture......Page 408
  Summary......Page 409
   The Ethical Dimension #13......Page 410
   Analyzing the Organization: Design Module #13......Page 411
  What Is Organizational Conflict?......Page 414
   Stage 1: Latent Conflict......Page 417
   Stage 2: Perceived Conflict......Page 419
   Stage 4: Manifest Conflict......Page 420
   Stage 5: Conflict Aftermath......Page 421
   Acting at the Level of Structure......Page 422
   Acting at the Level of Attitudes and Individuals......Page 423
  What Is Organizational Power?......Page 424
   Authority......Page 425
   Control over Resources......Page 426
   Nonsubstitutability......Page 427
   Centrality......Page 428
   Unobtrusive Power: Controlling the Premises of Decision Making......Page 429
   Tactics for Playing Politics......Page 430
   The Costs and Benefits of Organizational Politics......Page 432
  Discussion Questions......Page 435
   Assignment......Page 436
  Supplemental Case Map......Page 440
   Case 1 United Products, Inc.......Page 442
   Case 2 The Paradoxical Twins: Acme and Omega Electronics......Page 451
   Case 3 How SAP\'s Business Model and Strategies Made It the Global Business Software Leader......Page 454
   Case 4 The Scaffold Plank Incident......Page 462
   Case 5 Beer and Wine Industries: Bartles & Jaymes......Page 464
   Case 6 Bennett\'s Machine Shop, Inc.......Page 470
   Case 7 Southwest Airlines......Page 482
   Case 8 The Rise and Fall of Eastman Kodak: How Long Will It Survive Beyond 2011?......Page 486
   Case 9 Philips NV......Page 497
   Case 10 \"Ramrod\" Stockwell......Page 499
 G......Page 503
 S......Page 504
 Z......Page 505
 P......Page 506
 Z......Page 507
 D......Page 508
 I......Page 509
 O......Page 510
 R......Page 511
 W......Page 512