Organizational theory design and change 7th by jones

Organizational theory design and change 7th by jones Organizational theory design and change 7th by jones Organizational theory design and change 7th by jones Organizational theory design and change 7th by jones Organizational theory design and change 7th by jones Organizational theory design and change 7th by jones

Organizational Theory, Design, and Change seventh edition global edition Gareth R Jones Texas A&M University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Acquisitions Editor: Brian Mickelson Senior International Acquisitions Editor: Laura Dent International Print and Media Editor: Leandra Paoli Director of Editorial Services: Ashley Santora Editorial Project Manager: Sarah Holle Director of Marketing: Maggie Moylan Senior Marketing Manager: Nikki Ayana Jones International Marketing Manager: Dean Erasmus Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Production Project Manager: Ilene Kahn Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Sr Art Director/Design Supervisor: Janet Slowik Art Director: Steve Frim Interior Designer: Joseph DePinho Cover Designer: Jodi Notowitz Cover Photo: © Nikada/istock Full-Service Project Management: Integra Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearson.com/uk © Pearson Education Limited 2013 The right of Gareth R Jones to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 Authorised adaptation from the United States edition, entitled Organizational Theory, Design, and Change, 7th Edition, ISBN: 978-0-13-272994-9 by Gareth R Jones, published by Pearson Education, Inc., © 2013 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text ISBN 13: 978-0-273-76560-8 ISBN 10: 0-273-76560-4 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 16 15 14 13 12 Typeset in Times Ten Roman 10/12 by Integra Printed and bound by Courier Kendallville in The United States of America The publisher’s policy is to use paper manufactured from sustainable forests For Nicholas and Julia This page intentionally left blank Brief Contents Preface Part 17 The Organization and Its Environment Chapter Chapter Chapter Part Organizational Design Chapter Chapter Chapter Chapter Chapter Chapter Part Chapter 12 Chapter 13 Chapter 14 114 Basic Challenges of Organizational Design 114 Designing Organizational Structure: Authority and Control 143 Designing Organizational Structure: Specialization and Coordination 170 Creating and Managing Organizational Culture 201 Organizational Design and Strategy in a Changing Global Environment 229 Organizational Design, Competences, and Technology 262 Organizational Change Chapter 10 Chapter 11 23 Organizations and Organizational Effectiveness 23 Stakeholders, Managers, and Ethics 50 Organizing in a Changing Global Environment 81 295 Types and Forms of Organizational Change 295 Organizational Transformations: Birth, Growth, Decline, and Death 327 Decision Making, Learning, Knowledge Management, and Information Technology 356 Innovation, Intrapreneurship, and Creativity 388 Managing Conflict, Power, and Politics 413 Case Studies 439 Company Index 502 Name Index 505 Subject Index 507 This page intentionally left blank Contents Preface Part 17 The Organization and Its Environment Chapter 23 Organizations and Organizational Effectiveness What Is an Organization? 23 23 How Does an Organization Create Value? Why Do Organizations Exist? 25 27 To Increase Specialization and the Division of Labor To Use Large-Scale Technology 28 To Manage the Organizational Environment 28 To Economize on Transaction Costs 28 To Exert Power and Control 29 Organizational Theory, Design, and Change 27 30 Organizational Structure 30 Organizational Culture 31 Organizational Design and Change 31 The Importance of Organizational Design and Change 33 Dealing with Contingencies 33 Gaining Competitive Advantage 34 Managing Diversity 36 The Consequences of Poor Organizational Design 36 How Do Managers Measure Organizational Effectiveness? 38 The External Resource Approach: Control 39 The Internal Systems Approach: Innovation 39 The Technical Approach: Efficiency 40 Measuring Effectiveness: Organizational Goals 41 The Plan of This Book 42 Organizational Design 44 Organizational Change 44 Summary 45 • Discussion Questions 45 Organizational Theory in Action: Practicing Organizational Theory Open Systems Dynamics 46 The Ethical Dimension #1 46 Making the Connection #1 46 Analyzing the Organization: Design Module #1 46 Assignment 47 Chapter Stakeholders, Managers, and Ethics Organizational Stakeholders 46 50 50 Inside Stakeholders 50 Outside Stakeholders 52 Organizational Effectiveness: Satisfying Stakeholders’ Goals and Interests 56 Competing Goals 57 Allocating Rewards 58 CONTENTS Top Managers and Organizational Authority 59 The Chief Executive Officer 61 The Top-Management Team 62 Other Managers 63 An Agency Theory Perspective 63 The Moral Hazard Problem 63 Solving the Agency Problem 64 Top Managers and Organizational Ethics 65 Ethics and the Law 66 Ethics and Organizational Stakeholders 67 Sources of Organizational Ethics 69 Why Do Ethical Rules Develop? 71 Why Does Unethical Behavior Occur? 73 Creating an Ethical Organization 74 Designing an Ethical Structure and Control System 75 Creating an Ethical Culture 75 Supporting the Interests of Stakeholder Groups 75 Summary 76 • Discussion Questions 77 • Organizational Theory in Action: Practicing Organizational Theory 77 Creating a Code of Ethics 77 The Ethical Dimension #2 77 Making the Connection #2 77 Analyzing the Organization: Design Module #2 77 Assignment 77 Chapter Organizing in a Changing Global Environment 81 What Is the Organizational Environment? 81 The Specific Environment 83 The General Environment 85 Sources of Uncertainty in the Organizational Environment 87 Resource Dependence Theory 91 Interorganizational Strategies for Managing Resource Dependencies 92 Strategies for Managing Symbiotic Resource Interdependencies 93 Developing a Good Reputation Cooptation 94 Strategic Alliances 94 Joint Venture 97 Merger and Takeover 98 93 Strategies for Managing Competitive Resource Interdependencies Collusion and Cartels 99 Third-Party Linkage Mechanisms Strategic Alliances 100 Merger and Takeover 100 100 Transaction Cost Theory 101 Sources of Transaction Costs 102 Transaction Costs and Linkage Mechanisms 103 Bureaucratic Costs 104 Using Transaction Cost Theory to Choose an Interorganizational Strategy Summary 108 • Discussion Questions 109 • in Action: Practicing Organizational Theory 109 Protecting Your Domain 109 The Ethical Dimension #3 109 Making the Connection #3 110 Analyzing the Organization: Design Module #3 110 Assignment 110 104 Organizational Theory 98 www.downloadslide.com CONTENTS Part Organizational Design Chapter 114 Basic Challenges of Organizational Design Differentiation 114 114 Organizational Roles 116 Subunits: Functions and Divisions 117 Differentiation at the B.A.R and Grille 118 Vertical and Horizontal Differentiation 119 Organizational Design Challenges 119 Balancing Differentiation and Integration Integration and Integrating Mechanisms Differentiation versus Integration 124 121 121 Balancing Centralization and Decentralization Centralization versus Decentralization of Authority 125 125 Balancing Standardization and Mutual Adjustment Formalization: Written Rules 128 Socialization: Understood Norms 129 Standardization versus Mutual Adjustment 128 130 Mechanistic and Organic Organizational Structures 131 Mechanistic Structures 132 Organic Structures 132 The Contingency Approach to Organizational Design 134 Lawrence and Lorsch on Differentiation, Integration, and the Environment 134 Burns and Stalker on Organic versus Mechanistic Structures and the Environment 137 Summary 138 • Discussion Questions 139 • in Action: Practicing Organizational Theory 139 Growing Pains 139 Making the Connection #4 139 The Ethical Dimension #4 139 Analyzing the Organization: Design Module #4 139 Assignment 140 Chapter Organizational Theory Designing Organizational Structure: Authority and Control 143 Authority: How and Why Vertical Differentiation Occurs 143 The Emergence of the Hierarchy 143 Size and Height Limitations 144 Problems with Tall Hierarchies 146 The Parkinson’s Law Problem 149 The Ideal Number of Hierarchical Levels: The Minimum Chain of Command Span of Control 150 149 Control: Factors Affecting the Shape of the Hierarchy 152 Horizontal Differentiation 152 Centralization 154 Standardization 155 The Principles of Bureaucracy 156 The Advantages of Bureaucracy 159 Management by Objectives 161 The Influence of the Informal Organization 162 IT, Empowerment, and Self-Managed Teams 163 Summary 165 • Discussion Questions 165 in Action: Practicing Organizational Theory 166 How to Design a Hierarchy 166 The Ethical Dimension #5 166 • Organizational Theory www.downloadslide.com CASE • PHILIPS NV national organization and the product divisions It was the national organizations that implemented strategy Another major feature of Philips’ organization was the duumvirate form of management In most national organizations, top-management responsibilities and authority were shared by two managers—one responsible for “commercial affairs” and another responsible for “technical activities.” This form of management had its origins in the company’s founders—Anton and Gerard Philips Anton was a salesman and Gerard an engineer Throughout the company there seemed to be a vigorous, informal competition between technical and sales managers, with each attempting to outperform the other Anton once noted: The technical management and the sales management competed to outperform each other Production tried to produce so much that sales would not be able to get rid of it; sales tried to sell so much that the factory would not be able to keep up [Aguilar and Yoshino, 1987] The top decision-making and policy-making body in the company was a 10-person board of management While board members all shared general management responsibility, they typically maintained a special interest in one of the functional areas of the company (for example, R&D, manufacturing, marketing) Traditionally, most of the members of the management board were Dutch and had come up through the Eindhoven bureaucracy, although most had extensive foreign postings, often as a top manager in one of the company’s national organizations Environmental Change From the 1960s onward, a number of significant changes took place in Philips’ competitive environment that were to profoundly affect the company First, due to the efforts of the General Agreement on Tariffs and Trade (GATT), trade barriers fell worldwide In addition in Philips’ home base, Europe, the emergence of the European Economic Community, of which the Netherlands was an early member, led to a further reduction in trade barriers between the countries of Western Europe Second, during the 1960s and 1970s a number of new competitors emerged in Japan Taking advantage of the success of GATT in lowering trade barriers, the Japanese companies produced most of their output at home and then exported to the rest of the world The resulting economies of scale allowed them to drive down unit costs below those achieved by Western competitors such as Philips that manufactured in multiple locations This significantly increased competitive pressures in most of the business areas where Philips competed Third, due to technological changes, the cost of R&D and manufacturing increased rapidly The introduction of transistors and then integrated circuits called for significant capital expenditures in production facilities—often running into hundreds of millions of dollars To realize scale 497 economies, substantial levels of output had to be achieved Moreover, the pace of technological change was declining and product life cycles were shortening.This gave companies in the electronics industry less time to recoup their capital investments before new-generation products came along Finally, as the world moved from a series of fragmented national markets toward a single global market, uniform global standards for electronic equipment were beginning to emerge This standardization showed itself most clearly in the videocassette recorder business, where three standards initially battled for dominance—the Betamax standard produced by Sony, the VHS standard produced by Matsushita, and the V2000 standard produced by Philips The VHS standard was the one most widely accepted by consumers, and the others were eventually abandoned For Philips and Sony, both of which had invested substantially in their own standard, this was a significant defeat Philips’s attempt to establish its V2000 format as an industry standard was effectively killed off by the decision of its own North American national organization, over the objections of Eindhoven, to manufacture according to the VHS standard Organizational and Strategic Change By the early 1980s Philips realized that, if it was to survive, it would have to restructure its business radically Its cost structure was high due to the amount of duplication across national organizations, particularly in the area of manufacturing Moreover, as the V2000 incident demonstrated, the company’s attempts to compete effectively were being hindered by the strength and autonomy of its national organizations The first attempt at change came in 1982 when Wisse Dekker was appointed CEO Dekker quickly pushed for manufacturing rationalization, creating international production centers that served a number of national organizations and closing many small inefficient plants He also pushed Philips to enter into more collaborative arrangements with other electronics firms in order to share the costs and risks of developing new products In addition, Dekker accelerated a trend that had already begun within the company to move away from the dual leadership arrangement within national organizations (commercial and technical), replacing this arrangement with a single general manager Furthermore, Dekker tried to “tilt” Philips’ matrix away from national organizations by creating a corporate council where the heads of product divisions would join the heads of the national organizations to discuss issues of importance to both At the same time, he gave the product divisions more responsibility to determine companywide research and manufacturing activities In 1986, Dekker was succeeded by Cor van de Klugt One of van de Klugt’s first actions was to specify that profitability was to be the central criterion for evaluating performance within Philips The product divisions were given primary responsibility for achieving profits.This was followed in late 1986 by his termination of the U.S Philips trust, which www.downloadslide.com 498 CASE STUDIES had been given control of Philips’s North American operations during World War II and which still maintained control as of 1986 By terminating the trust, van de Klugt in theory reestablished Eindhoven’s control over the North American subsidiary Then, in May 1987, van de Klugt announced a major restructuring of Philips He designated four product divisions—lighting, consumer electronics, components, and telecommunications and data systems—as “core divisions,” the implication being that other activities would be sold off At the same time he reduced the size of the management board Its policy-making responsibility was devolved to a new group management committee, comprising the remaining board members plus the heads of the core product divisions No heads of national organizations were appointed to this body, thereby further tilting power within Philips away from the national organizations toward the product divisions Despite these changes, Philips’ competitive position continued to deteriorate Many outside observers attributed this slide to the dead hand of the huge head office bureaucracy at Eindhoven (which comprised more than 3,000 people in 1989) They argued that while van de Klugt had changed the organizational chart, much of this change was superficial Real power, they argued, still lay with the Eindhoven bureaucracy and their allies in the national organizations In support of this view, they pointed out that since 1986 Philips’ work force had declined by less than 10 percent, instead of the 30 percent reduction that many analysts were calling for Alarmed by a 1989 loss of $1.06 billion, the board forced van de Klugt to resign in May 1990 He was replaced by Jan Timmer Timmer quickly announced that he would cut Philips’s worldwide work force by 10,000, to 283,000, and launch a $1.4 billion restructuring Investors were unimpressed—most of them thought that the company needed to lose 40,000–50,000 jobs—and reacted by knocking C A S E the share price down by percent Since then, however, Timmer had made some progress In mid-1991, he sold off Philips’s minicomputer division—which at the time was losing $1 million per day—to Digital Equipment He also announced plans to reduce costs by $1.2 billion by cutting the work force by 55,000 In addition, he entered into a strategic alliance with Matsushita, the Japanese electronic giant, to manufacture and market the Digital Compact Cassette (DCC) Developed by Philips and due to be introduced in late 1992, the DCC reproduces the sound of a compact disc on a tape.The DCC’s great selling point is that buyers will be able to play their old analog tape cassettes on the new system The DCC’s chief rival is a portable compact disc system from Sony called Mini-Disk Many observers see a replay of the classic battle between the VHS and Betamax video recorder standards in the coming battle between the DCC and the Mini-Disk If the DCC wins, it could be the remaking of Philips References Aguilar, F J., and M Y Yoshino “The Philips Group: 1987.” Harvard Business School, Case #388–050 Anonymous “Philips Fights the Flab.” The Economist, April 7, 1992, pp 73–74 Bartlett, C A., and S Ghoshal Managing Across Borders: The Transnational Solution Boston, Mass.: Harvard Business School Press, 1989 Kapstein, J., and J Levine “A Would-Be World Beater Takes a Beating.” Business Week, July 16, 1990, pp 41–42 Levine, J “Philips’s Big Gamble.” Business Week, August 5, 1991, pp 34–36 “Ramrod” Stockwell Charles Perrow The Benson Metal Company employs about 1,500 people, is listed on the stock exchange, and has been in existence for many decades It makes a variety of metals that are purchased by manufacturers or specialized metal firms It is one of the five or six leading firms in the specialty steel industry This industry produces steels in fairly small quantities with a variety of characteristics Orders tend to be in terms of pounds rather than tons, although a 1,000-pound order is not unusual For some of the steels, 100 pounds is an average order Charles Perrow, Yale University Reprinted with permission The technology for producing specialty steels in the firm is fairly well established, but there is still a good deal of guesswork, skill, and even some “black magic” involved Small changes are made in the ingredients going into the melting process, often amounting to the addition of a tiny bit of expensive alloying material in order to produce varieties of specialty steels Competitors can analyze one another’s products and generally produce the same product without too much difficulty, although there are some secrets There are also important variations stemming from the type of equipment used to melt, cog, roll, and finish the steel In the period that we are considering, the Benson Company and some of its competitors were steadily moving into more sophisticated and technically more difficult steels, www.downloadslide.com CASE 10 • “RAMROD” STOCKWELL largely for the aerospace industry The aerospace products were far more difficult to make, required more research skills and metallurgical analysis, and required more “delicate” handling in all stages of production, even though the same basic equipment was involved Furthermore, they were marketed in a different fashion They were produced to the specifications of government subcontractors, and government inspectors were often in the plant to watch all stages of production One firm might be able to produce a particular kind of steel that another firm could not produce even though it had tried These steels were considerably more expensive than the specialty steels, and failures to meet specifications resulted in more substantial losses for the company At the time of the study about 20 percent of the cash value output was in aerospace metals The chairman, Fred Benson, had been president (managing director) of the company for two decades before moving up to this position He is an elderly man but has a strong will and is much revered in the company for having built it up to its present size and influence The president, Tom Hollis, has been in office for about four years; he was formerly the sales director and has worked closely with Fred Benson over many years Hollis has three or four years to go before expected retirement His assistant, Joe Craig, had been a sales manager in one of the smaller offices It is the custom of this firm to pick promising people from middle-management and put them in the “assistantto” position for perhaps a year to groom them for higher offices in their division For some time these people had come from sales, and they generally went back as managers of large districts, from whence they might be promoted to a sales manager position in the main office Dick Benson, the executive vice president (roughly, general manager), is the son of Fred Benson He is generally regarded as being willing, fairly competent, and decent, but weak and still much under his father’s thumb Traditionally, the executive vice president became president Dick is not thought to be up to that job, but it is believed that he will get it anyway Ramsey Stockwell, vice president of production, had come into the organization as an experienced engineer about six years before He rose rather rapidly to his present position Rob Bronson, vice president of sales, succeeded Dick Benson after Benson had a rather short term as vice president of sales Alan Carswell, the vice president of research, has a doctorate in metallurgy and some patents in his name, but he is not considered an aggressive researcher or an aggressive in-fighter in the company The Problem When the research team studied Benson Metal, there were the usual problems of competition and pricecutting, the difficulties with the new aerospace metals, and inadequate plant facilities for a growing industry and company However, the problem that particularly interests us here concerned the vice president of production, Ramsey Stockwell He was 499 regarded as a very competent production man His loyalty to the company was unquestioned He managed to keep outdated facilities operating and still had been able to push through the construction of quite modern facilities in the finishing phases of the production process But he was in trouble with his own staff and with other divisions of the company, principally sales It was widely noted that Stockwell failed to delegate authority to his subordinates A steady stream of people came into his office asking for permission for this and that or bringing questions to him People who took some action on their own could be bawled out unmercifully at times At other times they were left on their own because of the heavy demands on Stockwell’s time, given his frequent attention to details in some matters, particularly those concerning schedules and priorities He “contracted” the lines of authority by giving orders directly to a manager or even to a head foreman rather than by working through the intermediate levels This violated the chain of command, left managers uninformed, and reduced their authority It was sometimes noted that he had good men under him but did not always let them their jobs The key group of production men rarely met in a group unless it was to be bawled out by Stockwell Coordinating committees and the like existed mainly on paper More serious perhaps than this was the relationship to sales Rob Bronson was widely regarded as an extremely bright, capable, likable, and up-and-coming manager The sales division performed like a well-oiled machine but also had the enthusiasm and flashes of brilliance that indicated considerable adaptability Morale was high, and identification with the company was complete However, sales personnel found it quite difficult to get reliable information from production as to delivery dates or even what stage in the process a product was in Through long tradition, they were able to get special orders thrust into the work flow when they wanted to, but they often could not find out what this was going to to normal orders, or even how disruptive this might be The reason was that Stockwell would not allow production people to give any but the most routine information to sales personnel In fact, because of the high centralization of authority and information in production, production personnel often did not know themselves “Ramrod” Stockwell knew, and the only way to get information out of him was to go up the sales line to Rob Bronson The vice president of sales could get the information from the vice president of production But Bronson had more troubles than just not wanting to waste his time by calling Stockwell about status reports At the weekly top-management meeting, which involved all personnel from the vice presidential level and above, and frequently a few from below that level, Bronson would continually ask Stockwell whether something or other could be done Stockwell always said that he thought it could be He could not be pressed for any better estimations, and he www.downloadslide.com 500 CASE STUDIES rarely admitted that a job was, in fact, not possible Even queries from President Tom Hollis could not evoke accurate forecasts from Stockwell Consequently, planning on the part of sales and other divisions was difficult, and failures on the part of production were many because it always vaguely promised so much Stockwell was willing to try anything, and worked his head off at it, but the rest of the group knew that many of these attempts would fail While the men under Stockwell resented the way he took over their jobs at times and the lack of information available to them about other aspects of production, they were loyal to him They admired his ability and they knew that he fought off the continual pressure of sales to slip in special orders, change schedules, or blame production for rejects “Sales gets all the glory here” said one “At the semiannual company meeting last week, the chairman of the board and the managing director of the company couldn’t compliment sales enough for their good work, but there was only the stock ‘well done’ for production; ‘well done given the trying circumstances.’ Hell, Sales is what is trying us.” The annual reports over the years credited sales for the good years and referred to equipment failures, crowded or poor production facilities, and the like in bad years But it was also true that problems still remained even after Stockwell finally managed to pry some new production facilities out of the board of directors Stockwell was also isolated socially from the right group of top personnel: He tended to work later than most, had rougher manners, was less concerned with cultural activities, and rarely played golf He occasionally relaxed with the manager of aerospace sales, who, incidentally, was the only high-level sales person who tended to defend Stockwell “Ramrod’s a rough diamond; I don’t know that we ought to try to polish him,” he sometimes said But polishing was in the minds of many “Great production man—amazing when he gets out of that mill But he doesn’t know how to handle people He won’t delegate; he won’t tell us when he is in trouble with something; he builds a fence around his men, preventing easy exchange,” said the president “Bullheaded as hell—he was good a few years ago, but I would never give him the job again,” said the chairman of the board He disagreed with the president that Stockwell could change “You can’t change people’s personalities, least of all production men.” “He’s in a tough position,” said the vice president of sales, “and he has to be able to get his men to work with him, not against him, and we all have to work together in today’s market I just wish he would not be so uptight.” A year or so before, the president had approached Stockwell about taking a couple of weeks off and joining a leadership training session Stockwell would have nothing to with it and was offended The president waited a few months, then announced that he had arranged for the personnel manager and each of the directors to attend successive four-day T-group sessions run by a well-known organization This had been agreed on at one of the directors’ meetings, though no one had taken it very seriously One by one, the directors came back with marked enthusiasm for the program “It’s almost as if they had our company in mind when they designed it,” said one Some started having evening and weekend sessions with their staff, occasionally using the personnel manager, who had had more experience with this than the others Stockwell was scheduled to be the last one to attend the four-day session, but he canceled at the last minute—there were too many crises in the plant, he said, to go off that time In fact, several had developed over the previous few weeks That did it, as far as the other vice presidents were concerned They got together themselves, then with the president and executive vice president, and said that they had to get to the bottom of the problem A top-level group session should be held to discuss the tensions that were accumulating The friction between production and sales was spilling over into other areas as well, and the morale of management in general was suffering They acknowledged that they put a lot of pressure on production, and were probably at fault in this or that matter, and thus a session would all the directors good, not just Stockwell The president hesitated Stockwell, he felt, would just ride it out Besides, he added, the “Old Man” (chairman of the board) was skeptical of such techniques The executive vice president was quite unenthusiastic It was remarked later that Stockwell had never recognized his official authority, and thus young Dick feared any open confrontation But events overtook the plan of the vice president A first-class crisis had developed involving a major order for their oldest and best customer, and an emergency topmanagement meeting was called, which included several of their subordinates Three in particular were involved: Joe Craig, assistant to the president, who knows well the problems at the plant in his role as troubleshooter for the managing director; Sandy Falk, vice president of personnel, who is sophisticated about leadership training programs and in a position to watch a good bit of the bickering at the middle and lower levels between sales and production; Bill Bletchford, manager of finishing, who is loyal to Stockwell and who has the most modern-equipped phase of the production process and the most to with sales It was in his department that the jam had occurred, due to some massive scheduling changes at the rolling phase and to the failure of key equipment In the meeting, the ground is gone over thoroughly With their backs to the wall, the two production men, behaving somewhat uncharacteristically in an open meeting, charge sales with devious tactics for introducing special orders and for acting on partial and misinterpreted information from a foreman Joe Craig knows, and admits, that the specialty A sales manager made promises to the customer without checking with the vice president of sales, who could have checked with Stockwell “He was right,” said Vice President Bronson, “I can’t spend all my time calling Ramsey about status reports; if Harrison can’t find out from production on an official basis, he has to the best www.downloadslide.com CASE 10 • “RAMROD” STOCKWELL he can.” Ramsey Stockwell, after his forceful outburst about misleading information through devious tactics, falls into a hardened silence, answering only direct questions, and then briefly The manager of finishing and the specialty A sales manager start working on each other Sandy Falk, of personnel, knows they have been enemies for years, so he intervenes as best he can The vice president of research, Carswell, a reflective man, often worried about elusive dimensions of company problems, then calls a halt with the following speech: You’re all wrong and you’re all right I have heard bits and pieces of this fracas a hundred times over the last two or three years, and it gets worse each year The facts of this damn case don’t matter unless all you want is to score points with your opponents What is wrong is something with the whole team here I don’t know what it is, but I know that we have to radically rethink our relations with one another Three years ago this kind of thing rarely happened; now it is starting to happen all the time And it is a time when we can’t afford it There is no more growth in our bread-and-butter line, specialty steels The 501 money, and the growth, is in aerospace; we all know that Without aerospace we will just stand still Maybe that’s part of it But maybe Ramsey’s part of it too; this crisis is over specialty steel, and more of them seem to concern that than aerospace, so it can’t be the product shift or that only Some part of it has to be people, and you’re on the hot seat, Ramsey Carswell let that sink in, then went on Or maybe it’s something more than even these It is not being pulled together at the top, or maybe, the old way of pulling it together won’t work anymore I’m talking about you, Tom [Hollis], as well as Fred [Benson, the chairman of the board, who did not attend these meetings] and Dick [the executive vice president, and heir apparent] I don’t know what it is, here are Ramsey and Rob at loggerheads; neither of them are fools, and both of them are working their heads off Maybe the problem is above their level There is a long silence Assume you break the silence with your own analysis What would that be? www.downloadslide.com Company Index ABC, 234 ABN Amro, 301 Accenture, 282, 369–370, 406, 454 Acer, 91, 331 Acme Electronics, 450–453 Airbus Industries, 28 Air Cal, 484 Air France, 41 AirTran, 41 Albertson’s, 344–345 Alcatel, 203 Alcoa, 32, 91, 98 Altavista, 47 Amazon.com, 25–26, 33–35, 42, 76, 90, 130, 171–173, 195, 209, 217, 240–241, 336, 392, 407, 420, 436 Amazon, 167 AMD, 64, 237 American Airlines, 89 American Bank of Commerce, 477 American Home Products (AHP), 244, 246 American Photographic Group, 487 Amgen, 24, 127–128, 428, 489 Anheuser-Busch, 270, 346, 469 AOL, 35, 64, 346 Apple Computer, 24, 31–35, 39, 46, 63, 83, 99, 124, 128, 133, 140, 172, 195, 202, 204, 211, 216–217, 220, 235, 239, 276, 295, 318, 331–334, 336–337, 357, 363, 365, 388, 389–390, 392, 394, 396, 403, 405, 410, 436, 488, 494, 496 Applied Research Technologies, Inc., 440 Ariba, 458, 460 ARM, 31 Arthur Andersen, 204, 208, 225–226, 346 Asea Brown Boveri, 439 AstraZeneca, 416 Atex Inc., 488 Atlantic Paper Products, Inc., 444 AT&T, 28, 95–96, 98, 217, 224, 338, 414–415 Avon, 245 Baan, 457 Bang & Olufsen, 100 Bank of America, 60–61, 65, 100–101, 208 B.A.R and Grille, 114–119, 125, 170 Barnes & Noble, 90, 336 Bartles & Jaymes, 463–464, 466–468 Bausch & Lomb, 260 Bayside Controls Inc., 277 Bechtel Corp., 95 Becton Dickinson, 121–122, 127–128 Beech-Nut, 215, 221, 226 Behr Manning, 442 Beijing EAPs Consulting Inc., 440 Ben & Jerry’s, 81–82 Bennett’s Machine Shop, Inc., 469–480 Benson Metal Company, 498–501 Best Buy, 376, 410 Bianchi Vineyards, 465 BIC Corporation, 243 Big City Staple Corp., 444 Bimba Manufacturing, 217–218 Blackberry, 33, 39, 84, 494 Blockbuster Video, 24, 39, 330 BMW, 83, 94, 233 Body Shop, 68, 222 Boeing Corporation, 40, 55, 85, 103, 481, 484 Boeing of Louisiana, Inc (BLI), 469, 471, 473–475, 477, 479 Borders, 90, 336 502 Boston Market, 329 BP, 55–56 Braniff, 482–483 Bristol-Myers-Squibb, 90 Broadcom, 42 Brown-Forman Corporation, 464, 466–468 BT, 167 Bugatti, 335 Burger King, 27, 78, 81–83, 106, 239–240, 332 Calcasieu Marine Bank, 477–479 California Cooler Company, 467–468 Calvin Cooler, 466–467, 469 Campbell’s Soup, 81, 236 Cam-Recon, 472 Canada Dry/Graf’s Bottling Company, 465 Canadaigua Wine, 464 Canandaigua Wine, 466–467 Canandaigua Wine Company, 466, 468 Canon, 488, 491–492, 494–495 Cap Gemini, 454 Carnation, 191 Carnegie Steel Company, 331 Carrier, 250 Caterpillar, 231–232, 379 CBS, 24, 234 CCP, 401–402 Charter One Bank, 301 Chevron, 456 China Coast, 159 China Eastern Airlines, 92 Chinon, 487, 491–492 Chipotle, 240, 329, 338 Chrysler, 88–89, 335, 342, 367 Chubb, 250 Chunghwa, 99 Churchill Insurance, 301 CIC Inc., 433 Cisco Systems, 352–353 Citibank, 255, 316 Citizens Bank, 301 Clorox, 318 Club Med, 257 CNN, 234 Coca-Cola, 31, 98, 155, 197, 231, 233–234, 236, 248, 269, 425, 428 Cole Haan, 324 Columbia/HCA hospital chain, 58–59 Comcast, 39, 439 Commerce One, 458, 460 Community Bancorp, 301 Compaq Computer, 392 Computer Associates, 42, 60–61, 459 Contadina, 191 Continental Airlines, 32 Continental Can Company of Canada, Ltd., 439 Cord, 335 Corning Glass, 205 Corning Inc, 439 Costco, 99 Countrywide Mortgage, 101 Crédit Suisse, 418 CREO, 495 Crown Cork & Seal, 91, 185, 269 CS First Boston, 418, 422 Cypress Semiconductor, 312 Dansk Designs Ltd., 439 DeBeers, 94 Delco, 106 Dell Computer Corp., 32, 35, 55, 91, 93, 99, 107, 124, 128, 148, 195, 197, 214, 217, 276, 300, 328, 331, 338, 370, 392, 395, 410 Delta Airlines, 89, 346 Dimick Supply Company, 476 Disconix Inc., 488 Dow, 270 Dreyer’s Grand Ice Cream, 191 Dun & Bradstreet, 442 DuPont, 124, 147, 181, 231, 270, 489 Dusenberg, 334 Dymo, 442 East Coast Supply Co., Inc., 444 Eastman Chemicals, 489–490 Eastman Dry Plate Co., 485 Eastman Kodak Co., 485–496 eBay, 35, 332, 339–340, 420 Eikonix Corp., 488 Ekco Group, 105 EMI, 149–150 Enron, 42, 51, 57, 204, 346 Ernest & Julio Gallo Winery, 463–468 Express, 495 Exxon, 270, 272 Facebook.com, 24, 31, 35, 126–127, 133–134, 210–211, 217, 220, 231, 283, 295, 333, 346, 393–395, 494 Fairchild Semiconductor, 392 FedEx, 41, 42, 128–129, 146, 202, 204, 224, 373, 374, 377, 378 FedEx Kinko’s, 23–24 Fiat, 83 Fidelity, 51 First Global Xpress, 41–42 Flextronics, 276, 310, 493 Ford Motor Company, 28, 36–37, 61–62, 63, 81–82, 83, 87–89, 100, 130, 170, 207, 210, 233, 254, 262, 263–264, 269, 284, 286, 287, 295, 335, 344, 367, 379, 415, 419 Fox, 234 Foxconn, 276 FoxMeyer Drug, 456 Fox Photo Inc., 487, 492 Fuji Bank, 96–97 Fuji Photo Film Co., 486–487, 491 The Gap, 299, 430 Gap Inc., 24 Genentech, 24 General Dynamics, 75, 103 General Electric (GE), 26, 56, 61, 85, 101, 117, 144, 149, 174, 179, 206, 249–250, 318, 334, 360–361, 493, 496 General Gypsum Company, 163 General Mills, 83 General Motors (GM), 26–28, 46, 64, 81, 83, 85–89, 101, 104–106, 148, 179–183, 211, 250, 254, 276, 335, 343–344, 366 Gillette, 68, 269 Goldman Sachs, 210, 418, 433 Gomberg, Fredrikson & Associates, 467 Goodyear, 346 www.downloadslide.com COMPANY INDEX Google, 24, 29, 31, 35, 39, 84, 101, 126–127, 133–134, 172, 195, 202, 204–206, 209–213, 216–217, 220, 224, 230–231, 236–237, 239, 241, 246, 262, 267, 282–283, 291–292, 295, 318, 332–333, 336, 340, 365, 391, 393–394, 405, 436, 494 Groupon, 34–35, 100, 206, 209, 333 GrouponLive, 100 Gulf National, 477 Halliburton, 56 Hallmark Cards, 185, 311 Haloid Co, 490 Hanson Trust, 249–251 Harley-Davidson, 207 HBO, 234 Heineken, 467 Heinz, 81, 154, 177 Heublein, 464 Hewlett Packard (HP), 60–61, 93, 107, 128, 148, 219, 222, 233, 237, 331, 371, 392, 398, 410, 492–495 Hi-Lo Auto Parts, 476 Hilton, 306 Hitachi, 231 Home Depot, 457 Honda, 28, 83, 87, 89, 198, 276, 335, 388 Hon Hai Precision Engineering, 276 Hoover, 81 Howard Johnson’s, 81–82 H&R Block, 262 HTC, 333, 393 I2 Technology, 459 IBM, 24, 26, 28, 34, 46, 64, 81, 101, 103–104, 107, 124, 130, 133, 149, 179, 214, 218, 220, 255, 282, 295, 298, 300, 309, 332–334, 343, 346, 453–454, 459 Iconix Entertainment, 268–269 IDEO, 363–364 IKEA, 110–111, 176, 269 IMB, 488 Immunex, 489 Industrial Light & Magic Group, 124 Infeon, 99 Intel, 29, 31, 39, 64, 91, 389–390 iTunes, 33 J B Hunt Transport, 95 Jabil Circuit, 310 JCPenney, 199 JetBlue, 41 Joe E Seagram and Sons, 464, 466, 468 Johnson & Johnson, 179, 222–223, 433 The Johnson Sales Co., 444 Joseph Victori Wines, 466, 469 Juicy Couture, 198 Kate Spade, 198 Kellogg, 83, 95 Kelvingrove, 440 KFC, 27, 329, 332 Kmart, 105, 265 Kodak, 36–37, 101, 104, 217, 346–347 KPG, 495 Kraft Foods, 154 Krispy Kreme, 267–268 Kroger, 48, 344–345 Labatt Breweries, 312 Lake Charles Motor Exchange, Inc., 471 Land Rover, 367 LEG, 495 Lenovo, 91, 331 Levi Strauss, 85, 125, 127, 129–130, 197, 221 Lexmark, 491, 494 Lexus, 233 LG Electronics, 99, 140, 236, 495 Li & Fung, 107 Live Nation Entertainment, 100 LivingSocial, 333 Liz Claiborne, 146, 198–199, 328 L.L Bean, 69 Lloyds, 301 Lotus, 29 LucasArts, 123–124 Lucky Brand Jeans, 198 Lundberg Family Farms, 86 Macy’s, 198–199 Management Services, 477 Mansville Corporation, 221 Marcum, 457, 459, 460 Marriott, 306 Mars, Incorporated, 440 Marshall Field’s, 192 Mary Kay, 388 Matsushita, 179, 235, 496–497 Mattel Inc., 299, 383–384 Mayo Clinic, 262 Maytag, 360 McDonald’s, 26–27, 82–83, 85, 88, 98, 106, 222, 230–231, 235, 239–241, 265, 274, 275, 279, 332–333, 337–338, 395, 425 McKinsey & Co., 315, 406 Mercedes-Benz, 233, 234, 335 Merck, 90, 260, 281, 390, 405, 425, 426 Merloni Group, 440 Merrill Lynch, 65, 101, 418, 433 Mervyns, 192 MGA Entertainment, 383–384 Michelin, 348 Michelob, 464 Microsoft, 24, 29, 31, 32, 34, 63, 84, 94–95, 101, 124, 127, 205–206, 209, 212, 216, 217, 219–220, 231–232, 265, 283, 291–292, 332, 336, 337, 339, 340, 394, 397, 403, 457, 459, 460 Midcal Aluminum Company, 464 Midway Airlines, 483 Miller Brewing, 246, 270 Mitsubishi, 488 Molson Breweries, 312 Monsanto, 244 Morris Air, 484 Morton Thiokol, 223 Motorola, 99, 234, 333, 390, 490 Mystik, 442 National Westminster Bank, 301 NationsBank, 100–101 NBC, 234 Neiman Marcus, 185–186, 210, 238, 240 Nestlé, 121, 190–192, 215, 390, 453 Netflix, 39, 61, 133 Netscape, 459 News Corporation, 53–54 News of the World, 53–54 NEXT, 32 Nike, 70, 95, 107, 193–194, 279, 299, 323–324, 337 Nikon, 492 Nintendo, 140 Nippon Restaurant Enterprise Co., 86 Nissan, 96, 298, 335, 347–348 Nokia, 83–84, 94–95, 101, 234–235, 295, 300, 332, 336, 389, 393 Nordstrom, 238 North Face, 324 Northwest Airlines, 483–484 Novell, 29 503 Nucor, 32, 244 Nvidia, 91, 94, 236–237, 334, 341 OAO Sollers, 100 Ocon, 268–269 Olympus, 492 Omega Electronics, Inc., 450–453 100,000 Auto Parts, 476 Onex Corp., 493 Oracle, 205–206, 371, 455, 457, 459 Otis, 250 Pacific Southwest Airlines (PSA), 481, 484 Packard, 334–335 Panasonic, 83, 100, 233–234, 236 Parcelforce Worldwide, 167 Pennsylvania Railroad, 330–331 PeopleSoft, 455, 457 PepsiCo, 31, 98, 231, 233, 379 Perrier, 191 Peugeot, 83 Pfizer, 90, 147–148, 415–416 Pharmacia, 147 Philip Morris, 236, 246 Philips, 100, 255 Philips NV, 496–498 Phillips, 235 Picasa, 494 Pixar, 32, 39, 150, 436 Plexus Corp., 307, 309 The Point, 35 Polaroid Corp., 486–487 Post Office Counters, 167 Post Office Telecommunications, 167 Pratt & Whitney, 250 Procter & Gamble, 46, 81, 117, 230–231, 211, 251, 390 Primark, 70 Quaker Oats, 154–155 Qualex, 492 Radio Shack, 248 Ralston Purina, 191, 215 Reckitt Benckiser, 440 Red Lobster, 258 Reebok, 69 Renault, 348 Research in Motion, 295, 365, 389, 393, 496 Rohm & Hass, 495 Rolling Stones Inc., 391–392, 394 Rolls-Royce, 241, 248, 335 Rosas del Ecuador, 299 Rowntree, 191–192 Royal Bank of Scotland (RBS), 301 Royal Mail, 167 Royal Mail Group, 167 Royal Mail Letters, 167 Royal Mail Parcels, 167 S D Edwards, 455 Safeway, 48 Saks, 210, 240 Salomon Smith Barney, 65 Salvation Army, 26 Samsung, 31, 83, 84, 91, 99, 234–235, 333, 389, 494–495 Santa Fe Pacific Corporation, 95 SAP, 206, 370, 453–460, 493 Schering-Plough, 259–260 Seagram and Sons, 464, 467 Seagram Distillers, 469 Sears, 24, 36–37, 214, 265 7–11, 48 Sharp, 99 www.downloadslide.com 504 COMPANY INDEX Shell, 98 Siebel Systems, 458–460 Siemens, 496 Sikorsky, 250 Singapore Airlines, 92 SiteROCK, 210 Skype, 336 Smith Corona, 24 Sony, 83, 85, 100, 140–141, 234–235, 277, 277–300, 343, 390, 394–396, 488, 469, 496–498 Southwest Airlines, 40–41, 52–53, 92, 99, 206, 209, 216, 226–227, 318, 481–484 Sprint, 98 SSA, 459 Starbucks, 26 Starwood, 306 State Farm, 208 Steak and Ale, 258 Sterling Drug, 487, 489 Stouffer Foods, 191 Stroh Brewery Company, 466, 468 Stubbs-Overbeck, Inc., 470 Subway, 83 Sun, 488 Sun Microsystems, 459 Taco Bell, 27, 78, 83, 338 Target, 24, 99, 107, 192, 221, 224, 240, 299 TCL, 203 Technological Products, 450 Telegraph, The, 160 Texana Petroleum Corporation, 439 Texas Instruments, 392 Texas International, 482 Thomson, 203 3M, 209–210, 219, 230–231, 233, 246, 251, 393, 398, 404, 442, 490 TI, 371 TIAA/CREF, 51 Tiffany, 241 Timberland, 69 Time Warner, 63–64, 149 T-Mobile, 338, 414–415 Toyota, 27–28, 83, 87, 89, 96, 105, 181, 198, 214–215, 231, 233, 236, 241, 265, 276, 287–288, 335, 344, 366–367, 388 Trader Joe’s, 48 Transocean, 56 Triad Systems, 209–210 TRW Systems, 189 TRW Systems Group, 439 Tungsram, 101 Twitter, 126, 133–134, 395 Tyco, 51, 346 Union Pacific Railroad, 126–127 United Airlines, 484 United Continental, 346 United/Continental Airlines, 89 United Products, Inc., 441–450 United Technologies Corporation (UTC), 249–250 United Way of America, 56 UPS, 41–42, 128–129, 202, 204, 310, 377–378 U.S Steel, 37 UTC, 307 Value Line, Inc., 227 Verbatim Corp., 488 Verizon, 338 Versamark, 495 VF Company, 236 VF Corporation, 286–287 Virgin Atlantic, 41 Vitro, 205 Volkswagen, 32, 83, 254 Walmart, 24, 34, 87, 105, 121, 172, 236, 240, 265, 272, 279, 317, 337, 344, 376, 379, 388, 494 Walt Disney Company, 24, 32, 39, 60–61, 128, 211, 436 Warner Lambert, 147 Wendy’s, 239–240, 332 Westland/Hallmark Meat Co., 78 Whirlpool, 123, 262, 360 White Lumber Company, 461–463 Whole Foods Market, 74–75 Willbros Group Inc., 95 WMX, 330 WordPerfect, 29 WorldCom, 57, 66 Xerox, 56, 148, 232, 236–237, 332, 342, 346, 490, 492, 495 Yahoo!, 35, 47, 126–127, 212, 291, 346, 420 Zara, 198 Zytec Corporation, 161–162 www.downloadslide.com Name Index Allman, Jan, 37 Anderson, Philip, 389, 393 Authemont, Tim “Tamale,” 475 Ballmer, Steve, 292 Bartles, Frank, 467 Bartz, Carol, 126–127 Beard, Jack, 473–475 Beaudo, Daren, 55 Bennett, Cheryl, 470–471, 475, 479–480 Bennett, Pat, 469–480 Bennis, Warren, 317 Bensinger, K., 228 Benson, Dick, 499–500 Benson, Fred, 499, 501 Bewley, R Stuart, 465, 467 Bezos, Jeffrey, 26, 90, 130, 171–172, 241, 336, 370, 407 Bimba, Charles, 217–218 Bletchford, Bill, 500 Bloomberg, Michael R., 71 Brin, Sergey, 29, 31, 133, 212–213 Bronson, Rob, 499–501 Brooks, Garth, 149 Brown, Brad, 461–463 Brown, Clyde, 475 Brown, D., 169 Brown, George, 441–450 Brown, Richard, 441 Buchanan, D A., 411 Burns, Tom, 134, 136–138 Buttner, Jean, 227 Cameron, David, 54, 160 Canion, Rod, 392 Carnegie, Andrew, 330–331 Carp, Daniel A., 491–493 Carswell, Alan, 499, 501 Chakrabortty, A., 79 Chambers, John, 352–353 Champy, J., 307–308 Chandler, Colby, 486–487, 489–490 Chao, Elaine L., 56 Charo, 468 Cheema, Wasim Khalid, 71 Chen, Xingjie Chen, 112 Chittenden, M., 169 Chua, Micheline, 124 Ciavarella, Mark, 427 Claiborne, Liz, 146, 328, 392 Cohl, Michael, 391 Coker, Jess, 482 Coleman, James, 465 Collins, Glenn S., III, 433 Conahan, Michael, 427 Coulombe, Joe, 48 Coulson, Paul, 54 Craig, Joe, 499–500 Crete, Michael M., 465, 467 Crosby, Cathy Lee, 468 Crozier, Michael, 426 Daley, Richard M., 483 David, George, 250 Dekker, Wisse, 497 Dell, Michael, 392, 410 Deming, W Edwards, 305 Devine, Jim, 160 Disney, Roy, 436 Donahoe, John, 340, 420 Dongsheng, Li, 203 Dowler, Milly, 53, 54 Drew, Dick, 404 Durant, William C., 180 Eastman, George, 485, 489 Ebbers, Bernie, 66–67 Eisner, Michael, 436 Falk, Sandy, 500, 501 Fayerweather, Mike, 461–462 Fisher, George, 490–491 Flyn, C., 169 Ford, Henry, 263–265, 269, 291, 335 Ford, Henry, III, 61–62 Ford, Henry II, 419 Ford, William Clay, 419 Franklin, Bill, 482 Fredrikson, Aileen, 467 Fredrikson, Jon, 467 Gallo, David, 465 Gallo, Ernest, 463–465, 467 Gallo, Joseph (father of Ernest and Julio Gallo), 463 Gallo, Joseph (son of Julio Gallo), 465 Gallo, Julio, 463–465 Gardner, Bradley, 112 Gates, Bill, 219–220 Gauthreaux, Kevin “Goat,”, 475 Georger, Gloria, 37 Gerstner, Louis, 218, 220 Ghosn, Carlos, 347–348 Gibbs, Tom, 467 Goodman, Clive, 53 Goodwin, Fred, Sir, 301 Gosden, E., 79 Grant, Hugh, 53 Gray, Andy, 53 Greiner, L E., 339, 342–343, 345 Gundotra, Vic, 134 Hamel, G., 406 Hammack, Lance, 475, 480 Hammer, Michael, 307–308 Hanes, Jim, 447 Hardesty, Richard, 473 Hassan, Fred, 259–260 Ha-Won, J., 292 Healy, J R., 228 Hee, Lee Hun, 234 Heskett, James, 368 Hewlett, William, 392 Hickson, David, 433 Hill, Charles W L., 496–498 Hollis, Tom, 499–501 Hopkins, Bob, 461–463 Hosking, P., 325 Huang, Jen-Hsun, 341 Huczynski, A.A., 411 Huizenga, Wayne, 330 Iacocca, Lee, 419 Iger, Bob, 150, 436 Iverson, Ken, 244 Jagger, Mick, 391–392 Jaymes, Ed, 467 Jenster, Per V., 463–469 Jobs, Steve, 32–33, 39, 63, 150, 202, 334, 370, 436 Johnson, Boris, 53 Johnston, Summerfield, 155 Jones, Gareth R., 207, 453–460, 485–496 Jonsson, E., 347, 350 Joon, Bae Yong, 268 Jung, Andrea, 245 Juran, Joseph, 305 Kamprad, Ingvar, 110–111 Kanter, Rosabeth Moss, 403 Kay, Mary, 388 Kelleher, Diana, 465 Kelleher, Herbert, 40, 52, 226, 481–484 Kelly, David, 363 Kenny, Jim, 426–427 Kindler, Jeffrey, 415 King, Al, 449 King, Rollin, 481 Knight, Phil, 324 Kotter, John P., 368 Kratke, S., 292 Kroc, Ray, 337 Lac Xuan Huyn, 472, 474, 480 Lambert, Billy, 475 Land, Edwin, 486 Lawrence, Paul R., 134–138, 237 LeBlanc, Dale, 472, 480 Levering, Robert, 484 Levy, Alain, 150 Lewin, Kurt, 302, 313–314, 322 Lorsch, Jay, 134–138, 237 Lucas, George, 124 Luo, Yaodong, 227 Mackay, Martin, 147–148, 415–416 Mackey, John, 74–75 Madoff, Bernie, 224 Malecki, E J., 292 Malone, Stewart C., 461–463 Manuel, Curtis, 472 March, James, 364 Mason, Andrew, 35 Mayer, Brian, 306 Maynard, M., 228 McComb, William, 198–199 McConathy, Dorothy, 477 McConathy, Scott, 472–474 McCurry, 228 McDougall, D., 80 McManus, James, 475 McMichael, Craig, 475 McMullan, Paul, 53 Mendell, Steven, 78 Miller, Sienna, 53 Mintzberg, Henry, 362 Moggridge, Bill, 363 Moran, Margaret, 160 Morrison, Robert, 154–155 Moskowitz, Milton, 484 Mulally, Alan, 62, 295 Mulcaire, Glenn, 53 Murdoch, James, 54 Murdoch, Rupert, 53–54 Murphy, Glen, 430 Muse, M Lamar, 482, 484 Nasser, Jacques, 61 Nonaka, I., 393 Nystrom, Paul C., 371, 375 Oliver, J Wood, 169 Omidyar, Pierre, 339 Packard, David, 392 Page, Larry, 29, 31, 39, 63, 133–134, 212–213, 198, 393 505 www.downloadslide.com 506 NAME INDEX Parker, Jim, 483–484 Parkinson, C Northcote, 149, 346 Parrish, Stan, 461–462 Pazmino, Erwin, 299 Perez, Antonio, 347, 485, 493–496 Perrow, Charles, 271–275, 289, 291, 498–501 Pettigrew, Andrew, 426 Pfeffer, Jeffrey, 429 Phillips, Calvin, 483 Pierce, A., 325 Pondy, Louis R., 416, 418–419, 422 Potter, Harry, 391 Prahalad, C K., 406 Prescott, Lord, 53 Pressler, Paul, 430 Putnam, Howard, 483 Rajaratham, Raj, 64, 224 Ransom, Cindy, 318 Rawls, Jim, 450, 452–453 Reavely, Tom, 482 Richards, Amanda, 114–119, 170 Richards, Bob, 114–119, 170 Richards, Keith, 392 Rion, Lloyd, 477 Rodgers, T J., 312 Rowling, J K., 391 Sant, Roger, 125 Schein, E H., 207 Schmidt, Eric, 63 Scott, Tom, 330 Sculley, John, 32 Senge, Peter, 365, 368 Sharplin, Arthur, 469–480 Shearer, John, 475 Shenkar, Oded, 227 Shuman, Jeffrey C., 441–450 Simmons, Martin, 472–474 Simon, B., 228 Sloan, Alfred P., 180–181, 183 Smith, James, 474–475 Smith, Ronnie, 475 Stalker, G M., 134, 136–138 Starbuck, William H., 271, 375 Steid, Thomas, 465 Stephenson, Paul, 54 Stephenson, Randall, 414 Stevens, Hank, 446–447 Stockwell, Ramsey, 499–501 Stringer, Howard, 140–141 Swinford, S., 169 Tae-Jong, K., 292 Thompson, James D., 277–278, 280, 291, 417 Thornton, Kenneth, 475 Timmer, Jan, 498 Tookey, D., 169 Towns, Edolphus, 215 Toyoda, Akio, 215 Tushman, Michael, 389 Tyler, John, 450–452, 451 Ungoed-Thomas, J R., 169 van de Klugt, Cor, 497–498 Van Mannen, J., 207 Viega, John F., 450–453 Viggars, Peter, 160 Wallis, Neil, 54 Wang, Jerry, 126 Weber, Max, 156–157, 161 Weitzel, W., 347, 350 White, John, 461–463 Whitman, Meg, 339–340, 420 Whitmore, Kay, 490 Whitwam, David, 123 Willis, Bruce, 468 Winkles, Thomas, 472–473 Woods, Byron, 472–475 Woodward, Joan, 266–267, 270, 272, 275, 277, 289 Wozniak, Stephen, 32, 392 Wright, Jim, 483 Yeheskel, Orly, 227 Yoon, H., 292 Yu-na, Kim, 268 Zhang, Jessy, 227 www.downloadslide.com Subject Index Accommodative approach, 222 Acquisitions, 488 Action research, 314–316 Adaptive cultures, 368 Adaptive functions, 118 Advanced manufacturing technology (AMT), 283–289 Agency problem, 63 Agency theory perspective, 63–65 Agenda, control of, 431 Airline Deregulation Act, 482 Airline industry case, 92 Assets See Specific assets Aston Studies, 289, 372 Attitudes, organizational conflict and, 422–423 Attitudinal structuring, 422 Authority, 117 See also Organizational authority Autonomy, crisis of, 340 B2B marketplace, 195 Backward vertical integration, 247–248 Bargaining, in organizational change, 318–319 Birth See Organizational birth Blinded stage of organizational decline, 347 Bottom-up change, 315 Boundaryless organization, 194–195 Boundary-spanning activity, 407 Bounded rationality, 102–103, 359 Bricks-and-mortar retailers, 26, 172, 336 Building coalitions, 430–431 Bureaucracy advantages of, 159–161 definition, 156 management by objectives, 161–162 organizational conflict and, 417–418 principles of, 156–159 Bureaucratic costs internal transaction costs as, 104 in multidivisional structure, 183 organizational authority, 148 Bureaucratic culture, 346 Business-level strategy, 239 culture and, 244–246 definition, 233–234 differentiation, 240 focus strategy, 241 low-cost, 240 structure and, 241–244 Business model of Eastman Kodak, 489–490, 493 of SAP, 454–455 Business plan development, 329–330 Business process, 308 Business-to-business (B2B) commerce, 195 Business-to-customer (B2C) commerce, 195 Capital keiretsu, 96 Career paths, 65 Carnegie model of organizational decision making, 359–360 Cartels, 99 Centrality, 427–430 Centralization, 458 control and, 154–155 decentralization, 125–128, 456–457, 491 decentralization versus, 125–128 failure from, 489–490 Ceremonies, 209–211 Chain of command, 61 See also Minimum chain of command principle Chair of the board, 59, 61 Change See Organizational change Change agent, 320–321 Chief executive officer (CEO), 61–66, 310 in top-management team, 378–379 Chief operating officer (COO), 38, 62, 65 Child labor, 69–70 Coalitions building and managing, 430–431 dominant, 428–429 organizational, 360 Codification, 370–371 Coercion, in organizational change, 319 Coercive isomorphism, 337 Cognitive biases, 372 Cognitive dissonance, 372 Cognitive structure, 371–372 Collaboration, organizational growth through, 342 Collateral organizational structure, 380 Collective tactics, 207, 208 Collusion, 99 Commitment, escalation of, 374 Communication, organizational change and, 317 Communication problems in functional structure, 173 in multidivisional structure, 183 organizational authority, 146–147 Competing goals, 57–58 Competition Acme and Omega case, 450–451 Bartles & Jaymes case, 466–469 Eastman Kodak case, 486–489 organizational stakeholders, 414 for resources, 418 SAP case, 457–460 Southwest Airline case, 481–484 UPI case, 442 Competitive advantage, 34–36 Competitive forces for change, 297–298 Competitive interdependencies, 93 Competitive resource interdependencies, 98–101 Complex tasks, 272–277 Computer-aided design (CAD), 286, 397 Computer-aided material management (CAMM), 286–287 Computer-aided production, 285 Computer-integrated manufacturing, 288–289 Conflict See Organizational conflict Conflict aftermath, 417, 420–421 Conflict resolution strategies, 421–423 Contingencies, 33–34 Contingency approach, 134 Contingent workers, 164 Continuous-process technology, 270 Contracts, long-term, 95 Contributions, 50–51 Control, 29, 32–33, 117 Acme and Omega case, 450–451 centralization and, 154–155 crisis of, 341 differentiation and, 175 divisional structures and, 174–176 ethical, 75 in functional structure, 172–174 hierarchy and, 152–156 horizontal differentiation and, 152–154 illusion of, 373 information, 426 in multidivisional structure, 182 organizational roles and, 157 organizational structure, 152–156 over resources, 425–426 over uncertainty, 428 quality, 451–453, 461–463 span of, 150–152 standardization and, 155 Cooperation, among organizational stakeholders, 414 Cooptation, 94 Coordination, organizational growth through, 341–342 Coordination ability, 231–232 Copyrights, 390 Core competences, 34, 118 differentiation and, 232 functional-level strategy, 235–239 global expansion and, 232–233 sources of, 230–232 strategy and, 229–235 Core members, 409 Corporate-divisional relationship, 182 Corporate-level strategy, 234, 246 conglomerate structure, 249–250 organizational culture and, 251–252 organizational structure and, 249–251 related diversification, 248 related diversification structures, 250–251 structure and, 249–251 unrelated diversification, 248–249 UPI case, 447–449 vertical integration, 247–248 Corporate managers, 62 Cost reduction, functional-level strategies for, 235–237 Counseling, in organizational change, 319 Craftswork, 263, 274 Creativity innovation and, 392–395 organizational growth through, 339 Crisis stage of organizational decline, 349 Critical path method (CPM), 397 Cross-functional teams, 399–400 Cultural friction, 203 Culture See Organizational culture Customer problems, in functional structure, 173 Customers, 52–53 Death See Organizational decline and death Decentralization, 456–457, 491 centralization versus, 125–128 Decision making See Organizational decision making Decision tree, 378 Decline stage, of product life cycle, 394 Dedicated machines, 283–284 Defensive approach, 221, 222 Delegation, organizational growth through, 340–341 Demographic forces, 298 Departmental-level technology, 262–263 Design See Organizational design Devil’s advocate, 379–380 Diagnosis, 314 Dialectical inquiry, 379–380 Differentiation, 120–121 B.A.R and Grille, 114–119 building blocks of, 117 design challenge, 115 differentiation at, 118–119 divisional structures and, 175 507 www.downloadslide.com 508 SUBJECT INDEX Differentiation (Continued) integration versus, 124–125 Lawrence and Lorsch on, 134–136 organizational insight, 116 organizational roles, 116–117 subunits, 117–118 vertical and horizontal, 119 Differentiation business-level strategy, 240 Direct contact, 122 Direction, organizational growth through, 340 Disjunctive tactics, 208 Dissenters, listening to, 375 Dissolution stage of organizational decline, 349 Distortion, 146 Diversity management, 36–38 Divestiture tactics, 208 Division, 117 self-contained, 118 Divisional managers, 63 Divisional structure differentiation and, 175 geographical divisional structure, 185–186 market structure, 186–187 multidivisional structure, 178–183 product division structure, 176–178 product team structure, 183–185 Division of labor, 27, 114–115 Dominant coalition, 428–429 Downsizing, 148, 312 Dynamism See Environmental dynamism E-commerce, 195 Economic forces, 85, 298 Economies of scale, 28 Economies of scope, 28 Education, organizational change and, 317 E-engineering, 312 Efficiency, 36, 38 Ego-defensiveness, 374 Embryonic stage, of product life cycle, 394 Employees See Workforce Employee stock ownership plans (ESOPs), 216 Empowerment authority and, 425 organizational development and, 317–318 organizational structure and, 163–164 Engineering production, 274 Enterprise resource planning (ERP), 453–460 Entrepreneurs, 328, 393–394 Entrepreneurship, 24 Environment, 81 institutional, 337 specific, 83–85 See also Global environment; Organizational environment Environmental complexity, 88–89 Environmental dynamism, 89 Environmental forces, 64–65 Environmental niches, 331–332 Environmental richness, 89–90 Environmental uncertainty, 87–91, 102–103 Environment change, in Philips NV case, 497 Escalation of commitment, 374 Ethical culture, 75 Ethical dilemma, 65–66 Ethical forces, 86–87, 298–299 Ethical organizations, 74–76 Ethical structure, 75 Ethics case study, 53–54, 70, 78, 214–215, 461–463 individual, 70–71 justice model of, 68 lapses in, 53–54 law and, 66–67 moral rights model of, 68 organizational, 65–74, 214–215 organizational stakeholders and, 67–69 organizational theory exercise, 77–78 personal, 73 professional, 70 reasons for, 71–73 societal, 69–70 sources of, 69–71 summary, 76 top management and, 65–74 top managers and, 65–74 utilitarian model of, 68 European Union (EU), 298 Evaluation of action, 316 Events, as learning opportunities, 375 Evolutionary change, 303 Expansionist strategy, 301 Experimenting, 375–376 Experts, organizational politics and, 431 Exploitation, 365 Exploration, 70, 364 External change agents, 315 External resource approach, 39 Facilitation, in organizational change, 318 Fads, role of, 395 Fashion, role of, 395 Faulty action stage of organizational decline, 347–348 Feedback, 281 Felt conflict, 417, 419 Finance, in Bennett Machine Shop case, 477–480 Financial keiretsu, 95–96 First-mover advantages, 333 Fixed tactics, 207 Fixed workers, 284 Flat organization, 144–145 Flexible manufacturing technology, 288 Flexible production, 285 Flexible work teams, 307–308 Focus strategy, 241 Force-field theory, 302–303 Formalization, 128 Formal tactics, 207, 208 Frequency, 373–374 Function, 117 Functional-level strategy, 233, 235–239 Functional-level technology, 262–263 Functional managers, 63 Functional orientation differences, 300 Functional resources, 230–231, 296 Functional structure, 172–174 Game theory, 376–378 GANTT chart, 397 Garbage-can model of organizational decision making, 362–364 General environment, 85–87 Generalists, 334 General public, 56 Geographical divisional structure, 185–186 Global environment case study, 110–111 information technology, 90 Nokia case, 84 organizational environment, 81–91 resource dependence theory, 91–101 SAP case, 454–455 summary, 108–109 transaction cost theory, 101–108 Global expansion strategy, 232–235, 456 Global forces, 298 Globalization case study, 70 Global matrix structure, 191–192 Global networks, 232–233 Global strategy, 496–498 Global supply chain management, 83, 107 Global values, 204–206 Goals See Management by objectives; Organizational goals Governance mechanisms, 64 Government, 54–55 Group level of organizational learning, 366–367 Group-level resistance to change, 301–302 Groupthink, 379 Growth See Organizational growth Growth stage, of product life cycle, 394 Habits, 302 Heavyweight team leaders, 401 Heredity, 157 Hierarchy, 119 of authority, 61, 121–122, 143–156 and cultural friction, 203 control and, 152–156 emergence of, 143–144 size and height limitations, 144–146 tall hierarchies problems, 146–148 See also Organizational authority High technical complexity, 266 Horizontal differentiation, 119 control and, 152–154 diffentiation and, 121 organizational structure and, 152–154 strategy and, 253 Hospitals, doctors as stockholders in, 58–59 Human resource management (HRM), 236 Human resources, organizational change and, 296 Hybrid structure, 192–193 Identification stage of unstructured decisionmaking model, 362 Illegal immigrant workers, 70 Illusion of control, 373 Implementation of action, 315–316 Inaction stage of organizational decline, 347 Incremental innovations, 389 Incrementalist model of organizational decision making, 361 Incremental technological change, 389 Indispensability, 429 Individual ethics, 70–71 Individual level of organizational learning, 365–366 Individual-level resistance to change, 302 Individual-level technology, 262 Individual tactics, 207 Inducements, 50–51 Inert cultures, 368 Informal organization, 162–163 Informal tactics, 207 Information, 488 control over, 426 uncertainty and, 358 Information efficiencies, 405–406 Information synergies, 406–408 Information technology empowerment, 163–164 global environment, 90 innovation and, 405–406 knowledge management and, 369–371 organizational culture, 407–408 organizational structure, 163–164, 407–408 Innovation, 36, 38, 313, 388 case study, 410 information synergies and, 406–408 information technology and, 405–406 intrapraneurship and creativity, 392–395 management of, 396–405 organizational theory exercise, 409–410 www.downloadslide.com SUBJECT INDEX summary, 408–409 team leadership, 401–402 technological change and, 388–392 Inputs, 25–26, 262–263 Inside stakeholders, 50–52 Institutional environment, 337 Institutionalization of action research, 316 Institutional theory, 337 Instrumental value, 202 Integrating role, 124 Integration, 121 differentiation versus, 124–125 divisional structures and, 174, 175 functional structures and, 173 integrating mechanisms, 121–124 Lawrence and Lorsch on, 134–136 rites of, 209 vertical, 247–248, 280 Intensive technology, 281 Interdependence, 417 Intergroup training, 320–321 Interlocking directorate, 94 Internal change agents, 315 Internal cost-cutting, 487 Internal labor market, 182 Internal systems approach, 39 Internal transaction costs, 104 Interorganizational level of organizational learning, 368 Interorganizational strategy resource dependence theory, 92–93 transaction cost theory, 104–108 Intrapreneurs, 392 Intrapreneurship, 392–395 Investiture tactics, 208 Joint ventures, 97–98, 403 strategy of, 488 Justice model of ethics, 68 Just-in-time inventory (JIT) system, 287–288 Keiretsu, 96–97 K-generalists, 334–335 Kinship, 157 Knowledge-creating organization, 393 Knowledge management, 369–371 K-specialists, 334–335 K-strategy, 333–334 Labor See Division of labor; Workforce Labor market, internal, 182 Language See Organizational language Large-batch and mass production technology, 269 Latent conflict, 416–418 Law ethics and, 66–67 Southwest Airlines case and, 481–484 Leadership crisis of, 339 team, 401–402 top-management team, 62–63, 378–379 Lean production, 285 Learning See Organizational learning Learning organization, 365 Liability of newness, 328 Liaison roles, 122 Life cycle See Organizational life cycle Lightweight team leaders, 401 Line function, 417 Line role, 62 Linkage mechanisms, 93–95, 100, 103–104 Local communities, 55 Location problems, in functional structure, 173 Long-linked technology, 280 Long-term contracts, 95 Low-cost business-level strategy, 240 Low technical complexity, 266 Maintenance functions, 118 Management by objectives (MBO), 161–162 Management philosophy, of UPI, 442–443 Management team, in UPI, 446–447 Managerial abilities, 358 Managerial functions, 118 Managers, 52 in Bartles & Jaymes case, 464–465 differentiation versus integration, 124–125 ethics and, 65–74 management by objectives and, 161–162 organizational authority and, 156, 162 organizational effectiveness measurements by, 38–42 organizational politics and, 430 property rights and, 216 rational model of organizational decision making and, 357–359 Managing coalitions, 430–431 Manifest conflict, 417, 419–420 Manufacturing, 274, 283–285 Manufacturing technology, 283–289 Marketing in Bennett Machine Shop case, 475–477 SAP case, 455 Market structure, 186–187 Mass production, 263 to advanced manufacturing technology, 283–285 Mastery, 365 Material management, 286–287 Materials technology, 285–289 Matrix structure, 188–193 Mature stage, of product life cycle, 394 Measurement problems, in functional structure, 173 Mechanistic structures, 132, 137–138, 218, 300 Mediating technology, 278–280 Mergers, 98, 100 Mimetic isomorphism, 337–338 Minimum chain of command principle, 149–150 Minority ownership, 96–97 Mission, 41–42 Moral hazard problem, 63–64 Moral rights model of ethics, 68 Motivation problems, 148 Multidivisional matrix structure, 190–192 Multidivisional structure, 178–181 bureaucratic costs in, 183 control in, 182 profitability in, 182 Multidomestic strategy, 252, 254 Multinationals, 454 Mutual adjustment, 128, 130 Natural selection, 334–336 Negotiation, in organizational change, 318–319 Negotiator, third-party, 422 Networks, 95–96 Network structure, 193–194 New venture divisions, 402–403 Nonprogrammed decisions, 357 Nonroutine research, 274–275 Nonroutine technology, 277 Nonsubstitutability, 426–427, 429 Normative isomorphism, 338 Norms, 129, 203 global values and, 204–206 See also Organizational culture Objectives See Management by objectives Obstructionist approach, 221, 222 509 Official goals, 41–42 Operations, in Bennett Machine Shop case, 471–474 Operative goals, 42 Opportunism, 103 Organic structures, 132–133, 137–138, 218 Organizational authority, 59–63, 117 bureaucratic costs, 148 case study, 499–501 centralization versus decentralization, 125–128 communication problems, 146–147 empowerment and, 425 hierarchy and control, 152–156 hierarchy of authority, 61, 121–122, 143–156 managerial implications, 156, 162 minimum chain of command principle, 149–150 organizational power and, 424–425 in organizational structure, 143–152 Parkinson’s law problem, 149 rational-legal authority, 156–157 size and height limitations, 144–146 span of control, 150–152 summary, 165 Organizational birth, 328–336 Organizational capabilities, organizational change and, 296 Organizational change, 32–33, 44–45, 295 action research, 313–317 case study, 323–324 coercion in, 319 counseling in, 319 evolutionary, 303–307 forces for and resistance to, 297–303 importance of, 33 organizational culture and, 296, 300–301 organizational development and, 317–321 organizational theory exercise, 322–323 in Philips NV case, 497–498 revolutionary, 307–313 Starwood case, 306 summary, 321–322 targets of, 296–297 Organizational coalitions, 360 Organizational conflict, 300, 415 attitudes and, 422–423 bureaucracy and, 417–418 case study, 436 conflict resolution strategies, 421–423 felt conflict, 417, 419 goals and, 417 latent conflict, 416–418 manifest conflict, 417, 419–420 organizational effectiveness and, 413–414 organizational structure and, 421–422 organizational theory exercise, 435 perceived conflict, 417–419 Pondy’s model of, 416–421 role conflict, 158 summary, 434 Organizational confrontation meeting, 321 Organizational culture, 31 adaptive culture, 368 bureaucratic, 346 business-level strategy, 244–246 case study, 226–227 corporate-level strategy and, 251–252 definition, 201–206 ethical, 75 inert culture, 368 information technology, 407–408 innovation and, 403–405 management of, 203, 219–221 organizational change and, 296, 300–301 organizational ethics in, 213–215 organizational theory exercise, 225–226 www.downloadslide.com 510 SUBJECT INDEX Organizational culture (Continued) origins of, 211–219 social responsibility, 221–224 summary, 224–225 transmission of, 206–211 Organizational decision making, 356–357 case study, 383–384 improving, 375–380 knowledge management and information technology, 369–371 models of, 357–368 organizational politics and, 431 organizational power and, 428–429 organizational theory exercise, 382–383 summary, 381 Organizational decline and death, 343–349 Organizational design, 31–32, 36–38, 44 case study, 140–141 centralization and decentralization, 125–128 contingency approach to, 134 differentiation, 114–121 differentiation and integration, 121–125 integration, 121–125 mechanistic and organic organizational structures, 131–138 organizational theory exercise, 139–140 poor, 36–38 standardization and mutual adjustment, 128–131 summary, 138 Yahoo! case, 126–127 Organizational development (OD), 319–321 empowerment and, 317–318 Organizational domain, 82 Organizational effectiveness case study, 48 measurement of, 38–42 in multidivisional structure, 182 organizational conflict and, 413–414 organizational decline and, 343–345 organizational goals, 41–42 organizational theory exercise, 46–47 stakeholder goals and interests, 56–59 summary, 45 technology and, 264–265 Organizational environment, 25, 81–82 case study, 110–111 general environment, 85–87 global environment, 81–91 Lawrence and Lorsch on, 134–136 management of, 28, 42–43 managerial implications, 91 organic versus mechanistic structures, 133–134 organizational decline and, 343–347 organizational theory exercise, 109–110 resource dependence theory, 91–92 specific environment, 83–85 strategy and, 93–108, 229–235 summary, 108–109 transaction cost theory, 101–108 uncertainty in, 87–91 Organizational ethics, 213–215 See also Ethics Organizational goals, 57–58 management by objectives and, 161–162 organizational conflict and, 417 Organizational growth, 92, 336–342 Organizational inertia, 345–346 Organizational isomorphism, 337–338 Organizational language, 209–211 Organizational learning factors affecting, 371–374 levels of, 365–368 nature of, 364 types of, 364–365 Organizational level of organizational learning, 367–368 Organizational-level, resistance to change, 301 Organizational life cycle, 327 birth, 328–336 case study, 352–353 decline and death, 343–349 growth, 336–342 models of, 338–339, 347–349 organizational theory exercise, 351–352 summary, 350–351 Organizational mirroring, 321 Organizational politics, 429–433 Organizational power, 423 organizational politics and, 429–433 sources of, 424–429 Organizational resources, 231 Organizational rites, 209 Organizational roles, 116–117, 157–158, 207–208 Organizational rules, 160 Organizational stakeholders, 50 cooperation and competition among, 414 ethical organizations, 75–76 ethics and, 67–69 inside stakeholders, 50–52 outside stakeholders, 52–56 satisfying stakeholders’ goals and interests, 56–59 Organizational structure, 30–31, 167–168, 300–301, 403 Acme and Omega case, 450–453 Acme case, 450–452 boundaryless organization, 194–195 bureaucracy, principles of, 156–159 business-level strategy and, 241–244 case study, 167–168 control, 152–156 corporate-level strategy and, 249–251 e-commerce, 195 empowerment and well-managed teams, 163–164 ethical, 75 functional-level strategy and, 237–238 functional structure, 170–174 functional to divisional structure, 174–176 horizontal differentiation and, 152–154 IKEA case study, 110–111 informal organization, 162–163 information technology and, 163–164, 407–408 matrix structure, 188–193 mechanistic and organic organization, 131–138 network structure, 193–194 nonroutine technology and, 277 organizational authority in, 143–152 organizational conflict and, 421–422 organizational culture and, 218–219 organizational theory exercise, 166 Philips NV case, 497–498 product structure, 174–185 routine technology and, 275–277 summary, 196 technical complexity and, 270–272 UPI case, 444–445 values and, 176, 178–179 Organizational theory, 30 Organizational theory exercise ethics, 77–78 organizational change, 322–323 organizational conflict, 435 organizational culture, 225–226 organizational decision making, 382–383 organizational design, 139–140 organizational effectiveness, 46–47 organizational environment, 109–110 organizational life cycle, 351–352 organizational structure, 166 strategy, 258–259 technology, 290–291 Outside pressure, 73–74 Outside stakeholders, stakeholders and, 52–56 Outsourcing, 70, 83, 107, 193 Parkinson’s law problem, 149–150 Parliamentary claims case, 160 Participation, in organizational change, 295–318 Patents, 390 People characteristics of, 211–213 innovation and, 404 Perceived conflict, 417–419 Performance criteria, incompatible, 418 Personal ethics, 73 Personalization, 370–371 Personnel, in Bennett Machine Shop case, 474–475 PERT/CAM network, 397 Planning, 453–460 UPI case, 445–446 Political forces, 64–65, 298 Politics See Organizational politics Pondy’s model of organizational conflict, 416–421 Pooled interdependence, 278–280 Pooled task interdependence, 278 Population density, 332–333 Population ecology theory, 331 Population of organizations, 331 Power, 29, 300 unobtrusive, 428–429 See also Organizational power Preferences in rational model of organizational decision making, 359 Principle of minimum chain of command, 149 Priorities, differences in, 417 Proactive approach, 222 Process consultation, 320 Product division structure, 176–178 Production functions, 118 Product life cycle, 394–395 Product team structure, 183–185, 399–400 Professional ethics, 70 Profitability internal cost-cutting for, 487 in multidivisional structure, 182 organizational decline and, 343–345 Programmed decisions, 356–357 Programmed technology, 266 Project, 396 Projection, 374 Project management, 396–398 Promotion tournaments, 64 Property rights, 215–218, 390–392, 405 Public See General public Quality circles, 305 Quality control, 451–453, 461–463 Quantum innovations, 389 Quantum technological change, 389 Random tactics, 207 Rational-legal authority, 156–157 Rational model of organizational decision making, 357–359 Reciprocal task interdependence, 281 Red tape, crisis of, 342 Reengineering, 307–312 Related diversification, 248 www.downloadslide.com SUBJECT INDEX Representativeness, 373–374 Reputation, 93–94 Reputation effect, 72 Research action, 314–316 nonroutine, 274–275 Resources, 39, 98–101, 453–460 competition for, 418 control over, 425–426 functional, 230–231, 296 human, 236, 296 organizational, 231 slack, 280 Resource dependence theory, 91 competitive interdependencies management strategies, 98–101 interorganizational management strategies, 92–93 managerial implications, 102 symbiotic interdependencies management strategies, 93–98 Restructuring, 92, 148, 312–313 Revolutionary change, 303 Reward maximization, 346 Rewards allocation, 58–59 r-generalists, 334–335 Risk aversion, 345 Rites of enhancement, 209 Rites of integration, 209 Rites of passage, 209 Role ambiguity, 158 Role conflict, 158 Role orientation, 207–208 Routine manufacturing, 274 Routine technology, 275–277 Royal Mail case, 167–168 r-specialists, 334–335 r-strategy, 333–334 Rules ethical, 69, 71–73 Parliamentary claims case, 160 written, 128–129 Sales, 455 UPI case, 446 Sarbanes-Oxley Act, 51–52, 65, 224 Satisficing, 359 Selection stage of unstructured decision making model, 362 Self-contained division, 118 Self-dealing, 64 Self-interest, 73 Self-managed teams, 163–164 Sensitivity training, 319–320 Sequential interdependence, 280–281 Sequential tactics, 207, 208 Sequential task interdependence, 280 Serial tactics, 208 Shareholders, 51–52 Skunk works, 402–403 Slack resources, 280 Small-batch and unit technology, 266–269 Social forces, 298 Socialization, 130, 206–209 Social responsibility, 221–224 Social status, 157 Societal ethics, 69–70 Sociotechnical systems theory, 303–304 Span of control, 150–152 Specialism, 283 Specialists, 334 Specialization, 27 Specific assets, 103 Specific environment, 83–85 Speed, 36 Staff function, 417 Staff role, 62 Stage-gate funnel, 398–399 Stakeholders See Organizational stakeholders Standardization, 128–131, 155 Standard operating procedures (SOPs), 128 Stock-based compensation, 64 Stories, 209–211 Strategic alliances, 94–95, 100 Strategic change, in Philips NV case, 497–498 Strategic problems, in functional structure, 173 Strategy, 34–36, 458–460 business-level, 233–234, 239–246 case study, 259–260 core competencies and, 229–235 corporate-level, 234, 246–252, 447–449 across countries, 252–257 Eastman Kodak case, 487–489 functional-level, 233, 235–239 global, 252, 255–256 global expansion, 234–235 horizontal differentiation and, 253 international, 252, 254–255 multidomestic, 252, 254 organizational environment and, 93–108, 229–235 organizational theory exercise, 258–259 summary, 257 transnational, 252, 256–257 UPI case, 447–449 Strikes, 92 Structure See Organizational structure Subunit orientation, 121 Subunits, 117–118 Suppliers, 54 Supply chain management See Global supply chain management Support functions, 117–118 Symbiotic interdependencies, 93 Symbiotic resource interdependencies, 93–98 Systems theory, sociotechnical, 303–304 Takeovers, 98 Tall hierarchies problems, 146–148 Tall organizations, 144–148 Task analyzability, 273 Task forces, 122–123 Task interdependence, 277–283 Tasks, routine and complex, 272–277 Task variability, 273–274 Teams, 123, 296 cross-functional, 399–400 flexible work, 307 heavyweight team leaders, 401 management, 446–447 product team structure, 183–185, 399–400 self-managed, 163–164 Top-management, 62–63, 378–379 Team building, 320 Team leadership, 401–402 Technical approach, 40–41 Technical complexity, 266–272 Technological capabilities, organizational change and, 296 Technological forces, 86 Technological imperative, 272 Technology, 262–263 511 advanced manufacturing technology, 283–289 case study, 291–292 Eastman Kodak case, 485–496 mass production, 283–285 organizational effectiveness and, 264–265 organizational theory exercise, 290–291 small batch case study, 268–269 summary, 289–290 task interdependence, 277–283 tasks, routine and complex, 272–277 technical complexity, 266–272 Temporary workers See Contingent workers Terminal value, 201–203 Third-party linkage mechanism, 100 Third-party negotiator, 422 Top-down change, 315 Top management ethics and, 65–74 property rights and, 217 Top-management team, 62–63, 378–379 Total quality management (TQM), 304–307 Trademarks, 390–391 Trade unions, 55 Transaction costs, 28–29, 72, 101 linkage mechanisms and, 103–104 sources of, 102–103 Transaction cost theory, 101–103 interorganizational strategy and, 104–108 Transfer price, 183 Trusteeship, 59, 60 Two-boss employees, 188 Uncertainty, 136 control over, 428 differentiation versus integration, 124–125 environmental, 87–91, 102–103 information and, 358 Unethical behavior, 73–74 Unions, 51, 55, 85, 298 Unit technology See Small-batch and unit technology Unobtrusive power, 428–429 Unrelated diversification, 248–249 Unstructured model of organizational decision making, 361–362 Utilitarian model of ethics, 68 Values, 201–203 global, 204–206 organizational structure and, 176, 178–179 rational model of organizational decision making and, 359 Value creation, 25–27 functional-level strategy, 230 global expansion strategy, 232 Value-creation cycle, 230 Variable tactics, 207 Vertical differentiation, 119 Vertical integration corporate-level strategy, 247–248 distribution of outputs, 280 Whistle-blowing, 75, 215, 223, 224 Wildcat strikes, 163 Workers, contingent, 164 Workforce, 52 child labor, 69–70 property rights, 216 Work teams, 296 flexible, 307–308 Written rules, 128–129 ... Organizational Theory, Design, and Change 27 30 Organizational Structure 30 Organizational Culture 31 Organizational Design and Change 31 The Importance of Organizational Design and Change 33 Dealing... Theory Organizational Change 295 Chapter 10 Types and Forms of Organizational Change What Is Organizational Change? Targets of Change 295 295 296 Forces for and Resistance to Organizational Change. .. organizations exist and the purposes they serve Describe the relationship between organizational theory and organizational design and change and differentiate between organizational structure and culture