ORGANIZATIONAL THEORY

TEXT A N D CASES

GARETH

R.

JONES

Texas A&M University

Addison-Wesley Publishing Company

READING, MASSACHUSETTS MENLO PARK, CALIFORNIA NEW YORK DON MILLS, ONTARIO WOKINGHAM, ENGLAND AMSTERDAM BONN SYDNEY SINGAPORE TOKYO MADRID SAN IUAN MILAN PARIS

CONTENTS
PARTI
CHAPTER

THE ORGANIZATION
1 O R G A I U I Z A T I O I U S AIUD ORGANIZATIONAL STAKEHOLDERS l

CASE
1.1

MOTOROLA HELPS TO REORGANIZE LOS ALAMOS 2 What Is an Organization? 4 A New Kind of Video Store 5 Create Value? 6

ORGANIZATIONAL INSIGHT 1.1 1.2 1.3 1.4 How Does an Organization

Why Do Organizations Exist? 9 What Is Organizational Theory? n Organizational Structure 12 Organizational Culture 13 Organizational Design 14

1.5

The Importance of Organizational

Design

15

Gaining Competitive Advantage 15 Dealing with Contingencies 16 Managing Diversity 16 Increasing Efficiency 16 Increasing Innovation 17 Controlling the Environment 17 Improving Coordination and Motivation 18 Developing and Implementing Strategy 18 1.6 1.7 1.8 The Consequences of Poor Organizational Levels ofAnalysis 19 21 Design 18

Organizational Stakeholders Inside Stakeholders 21

ORGANIZATIONAL INSIGHT 1.2 Investors 22 Outside Stakeholders 24

The Increasing Power of Institutional

ORGANIZATIONAL INSIGHT 1.3 Customers 24

Southwest Airlines Services Its

VI

CONTENTS

ORGANIZATIONAL INSIGHT 1.4 ORGANIZATIONAL INSIGHT 1.5 Environment 26 1.9

General Motors Versus Its SuppUers 25 Is the Government too Soft on the Stakeholders'

Organizational Effectiveness: Satisfying Goals and Interests 27

ORGANIZATIONAL INSIGHT 1.6 Company 31

Keep Your Stakeholders Glued to Your

Competing Goals 28 Allocating Rewards 29 Effectiveness over Time 30 Managing Stakeholder Interests 7.70 How Do Managers Measure Effectiveness? 32

30

Organizational

The External Resource Approach: Control 32 The Internal Systems Approach: Innovation 34 The Technical Approach: Efficiency 34 Measuring Effectiveness: Organizational Goals 35

7.77 What Are the Factors Affecting Organizations?

The Organizational Environment 38 The Technological Environment 38 Organizational Processes 40 MAKING THE CONNECTION Summary 40 Discussion Questions 41 42 40

37

ANALYZING THE ORGANIZATION References 44

CHAPTER 2

B A S I C CHALLEIUGES O F O R G A N I Z A T I O N A L D E S I G N 47 CASE JOHNSON &JOHNSON'SDECENTRAUZED APPROACH 48 2.1 Differentiation 49 50

ORGANIZATIONAL INSIGHT 2.1 The B.A.R. and Grille Restaurant Organizational Roles 52 Subunits: Functions and Divisions 53 Differentiation at the B.A.R. and Grille 54

CONTENTS

Vertical and Horizontal Differentiation Organizational Design Challenges 56 MANAGERIALIMPLICATIONS 2.2 Balancing Differentiation Differentiation

55

57 57

and Integration

ORGANIZATIONAL INSIGHT 2.2

Communication Problems at IBM 58 58 62 64 65

Integration and Integrating Mechanisms ORGANIZATIONAL INSIGHT 2.3 2.3 Balancing Centralization

Integration at Amgen 63 and Decentralization

Differentiation Versus Integration

Centralization Versus Decentralization of Authority ORGANIZATIONAL INSIGHT 2.4 Decentralization 66 2.4 Balancing Standardization The "Health" Hazards of

and Mutual Adjustment 69

68

Formalization: Written Rules

ORGANIZATIONAL INSIGHT 2.5 Innovative Control at Microsoft Specialization: Understood Norms 2.5 Coordinating 70 71 Standardization Versus Mutual Adjustment

69

the Formal and In formal Organizations

73

ORGANIZATIONAL INSIGHT 2.6 Status and Power 76

Wildcat Strikes in the Gypsum Plant

MANAGERIAL IMPLICATIONS 2.6

The Design Challenges 76 Structures 77

Mechanistic and Organic Organizational Mechanistic Structures 77 Organic Structures 78

ORGANIZATIONAL INSIGHT 2.7

Sony's Magic Touch 79 81

The Contingency Approach to Organizational Design ORGANIZATIONAL INSIGHT 2.8 MAKING THE CONNECTION Sumrnary 83 Discussion Questions 84 84 83

Wal-Mart 's Race to the Top 81

ANALYZING THE ORGANIZATION References 85

DESIGNING ORGANIZATIONAL STRUCTURE: A U T H O R I T Y A N D CONTROL

CASE THE SHAKEUP IN GM'S HIERARCHY 88 3.1 Top Managers and Organizational Authority The Chief Executive Officer 91 The Top-Management Team 92 Other Managers 93 3.2 Authority: How and Why Vertical Differentiation

87

89

Occurs 96

The Emergence of the Hierarchy 96 Size and Height Limitations 97 Problems with Tall Hierarchies 99 ORGANIZATIONAL INSIGHT 3.1 ORGANIZATIONAL INSIGHT 3.2 ORGANIZATIONAL INSIGHT 3.3 The Shakeup atDu Pont 100

Promotion Tournaments at IBM 101 Big Changes at the Post Office 102

3.3

The Parkinson's Law Problem 103 The Ideal Number of Hierarchical Levels: The Minimum Chain of Command 103 The Span of Control 104 Summary 106 Control: Factors Affecting the Shape of the Hierarchy 107 Horizontal Differentiation 107 Microsoffs Team Structure 108

ORGANIZATIONAL INSIGHT 3.4 Centralization 109

ORGANIZATIONAL INSIGHT 3.5 joo Many Managers at the Bottling Plant 110 Standardization 110 The Influence of the Informal Organization 111 Summary 111 MANAGERIALIMPLICATIONS 3.4 Authority and Control 112

The Principles of Bureaucratic Structure

112

ORGANIZATIONAL INSIGHT 3.6 Chrysler 114 ORGANIZATIONAL INSIGHT 3.7

Top-Management Team Dynamics at "Personal Computers Are Just Toys" 116

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ORGANIZATIONAL INSIGHT 3.8

Crew G's Rules of Conduct 118

3.5

The Advantages of Bureaucratic Structure

119

MANAGERIALIMPLICATIONS Organization 120

Using Bureaucracy to Benefit the

MAKING THE CONNECTION 121 Summary 121 Discussion Questions 122 ANALYZING THE ORGANIZATION 123 References 124

CHAPTER 4

DESIGNING ORGANIZATIONAL STRUCTURE: SPECIALIZATION AND COORDINATION 1 2 5 CASE A NEW CATERPILLAR EMERGES 126 4.1 Functional Structure 128 DevelopingBlockbuster Videos

ORGANIZATIONAL INSIGHT 4.1 Functional Structure 129

Advantages of a Functional Structure 130 Control Problems in a Functional Structure 131 MANAGERIAL IMPLICATIONS 4.2 Functional Structure 132 133

From Functional Structure to Divisional Structure Changing the Design of the Functional Structure 134 Moving to a Divisional Structure 135

4.3 Divisional Structure I: Three Kinds of Product Structure 137 Product Division Structure 137 Multidivisional Structure 139 ORGANIZATIONAL INSIGHT 4.2 Creating GM's Multidivisional Structure 142 Product Team Structure 147 ORGANIZATIONAL INSIGHT 4.3 Summary 150 Chrysler's New Team Structure 149

CONTENTS

4.4 Divisional Structure II: Geographie Structure

ORGANIZATIONAL INSIGHT 4.4 4.5 Divisional Structure III: Market Structure 152

150

Lennox Makes a U-Turn 152

ORGANIZATIONAL INSIGHT 4.5 MANAGERIAL IMPLICATIONS 4.6 Matrix Structure 154

Tailoring Structure to Customers Changing Organizational Structure

153 154

MANAGERIAL IMPLICATIONS Changing Organizational Structure Advantages of a Matrix Structure 156 Disadvantages of a Matrix Structure 157 ORGANIZATIONAL INSIGHT 4.6 4.7 Characteristics ofthe DECs Problems with Its Matrix 159 Team 160

154

158

The Multidivisional Matrix Structure

Top-Management 161

MAKING THE CONNECTION Summary 162 Discussion Questions 163

ANALYZING THE ORGANIZATION References 164

163

CHARTER 5

MANAGIIWG ORGANIZATIOIMAL C U L T U R E A N D E T H I C S 165 CASE BIG BLUE'S BIG PROBLEMS 166

5.1
5.2

What Is Organizational Culture 168

A Tale ofTwo Cultures 171 How Is an Organization's Culture Transmitted to Its Members? 172 Socialization and Socialization Tactics 172 Stories, Ceremonies, and Organizational Language 176

ORGANIZATIONAL INSIGHT 5.1

ORGANIZATIONAL INSIGHT 5.2 onSuccess 176 MANAGERIAL IMPLICATIONS 5.3

Triad Systems Builds a Culture Based Analyzing Organizational Culture Culture Come From? 178

Where Does Organizational

178

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XI

Characteristics of People Within the Organization ORGANIZATIONAL INSIGHT 5.3 Organizational Ethics ORGANIZATIONAL INSIGHT 5.4 Property Rights 184 A Clash ofTwo Cultures

179 180

A Change at the Top in Disney 181

Apple Juice or Sugar Water? 183

ORGANIZATIONAL INSIGHT 5.5 ORGANIZATIONAL INSIGHT 5.6 System 188 Organizational Structure ORGANIZATIONAL INSIGHT 5.7

186

Bimba Changes Its Property Rights 189 All change at Union Pacific 190

5.4

Can Organizational Culture Be Managed?

191
193

MANAGERIAL IMPLICATIONS

Designing Organizational Culture

5.5 5.6

The Advantagesof

Ethical Behavior

193

Why Does Unethical Behavior Occur? 196

ORGANIZATIONAL INSIGHT 5.8 Trouble at Sears 195 Lapses in Individual Ethics 196 Ruthless Pursuit of Self-Interest 197 Outside Pressure 197

5.7

Corporate Social Responsibility

The Narrow Stance 198 The Broad Stance 198

198

ORGANIZATIONAL INSIGHT 5.9

Ben & Jerrys Ethical Culture

199

5.8

Creating an Ethical Organization

201
201

Designing an Ethical Structure and Control System Creating an Ethical Culture 202 ORGANIZATIONAL INSIGHT 5.10

Dow Comings Ethics System 203

202

Supporting the Interests of Stakeholder Groups MAKING THE CONNECTION Summary 204 Discussion Questions 205 205 204

ANALYZING THE ORGANIZATION References 206

CONTENTS

PART

ii THE ORGANIZATIONAL ENVIRONMENT

MANAGING THE ORGANIZATIONAL ENVIRONMENT 2 0 9 CASE HOW FORD MANAGES ITS ENVIRONMENT 210 6.1 What Is the Organizational Environment? 212

CHAPTER O

The Specific Environment 213 The General Environment 214 Sources of Uncertainty in the Organizational Environment 215 MANAGERIALIMPLICATIONS 6.2 ContingencyTheory Analyzing the Environment 217

218

Lawrence and Lorsch on Differentiation, Integration, and the Environment 219 Burns and Stalker on Organic Versus Mechanistic Structures and the Environment 221 ORGANIZATIONAL INSIGHT 6.1 McDonald's Changing Environment 222

Strategie Choice and the Enacted Environment: A Criticism of Contingency Theory 224 6.3 Resource Dependence Theory 225
Mighty Microsoft 226

ORGANIZATIONAL INSIGHT 6.2

6.4 6.5

Interorganizational Strategies for Managing Resource Dependencies 227 Strategies for Managing Symbiotic Resource Interdependencies 228 Developing a Good Reputation 228 Co-optation 229 Strategie Alliances 230 Merger and Takeover 235

6.6

Strategies for Managing Competitive Resource Interdependencies 235 Collusion and Cartels 236 Third-Party Linkage Mechanisms 237 Strategie Alliances 238

ORGANIZATIONAL INSIGHT 6.3 Telecommunications 238

Competitive Alliances in

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XIII

Merger and Takeover MANAGERIAL IMPLICATIONS ORGANIZATIONAL INSIGHT 6.4

240 Resource Dependence Theory Lighting Up the Utilities 240 241

6.7

Transaction Cost Theory

241

Sources ofTransaction Costs 242 Transaction Costs and Linkage Mechanisms 244 Bureaucratic Costs 245 Using Transaction Cost Theory to Choose an Interorganizational Strategy 245 Ekco and Its Suppliers 246

ORGANIZATIONAL INSIGHT 6.5 MAKING THE CONNECTION 249

Summary 249 Discussion Questions 251 ANALYZING THE ORGANIZATION References 252

251

ORGANIZATIONAL STRATEGY A N D S T R U C T U R E 255

CASE GILLETTE FORGESAHEAD 256

7.1

What Is Organizational Strategy?

Sources ofCore Competences Three Levels of Strategy 260 258

257

7.2

Functional-Level Strategy

262
263

Strategies to Lower Costs or Differentiate Products Using Interorganizational Strategies 265 Functional-Level Strategy and Structure 265 Functional-Level Strategy and Culture 268 MANAGERIAL IMPLICATIONS Functional-Level Strategy

269

7.3

Business-Level Strategy

270
270 272 How to Compete in the PC Market 273

Strategies to Lower Cost or Differentiate Products ORGANIZATIONAL INSIGHT 7.1

Strategies to Enlarge the Organizational Domain

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CONTENTS

ORGANIZATIONAL INSIGHT 7.2 Hershey, Mars, and the Candy Wars 275 Focus Strategy 277 Business-Level Strategy and Structure 277 ORGANIZATIONAL INSIGHT 7.3 Letting Co Is Hard to Do 280

Business-Level Strategy and Culture 281 ORGANIZATIONAL INSIGHT 7.4 MANAGERIALIMPLICATIONS Delta's Culture Flies Away 282 Business-Level Strategy 283

7.4

Corporate-Level Strategy 283

Vertical Integration 286 Related Diversification 287 Unrelated Diversification 287 Corporate-Level Strategy and Structure 288

ORGANIZATIONAL INSIGHT 7.5 Hitachi Ltd. 290 Corporate-Level Strategy and Culture 291 Using Interorganizational Strategies 292 Organizational Problems in Managing Corporate-Level Strategy 293 ORGANIZATIONAL INSIGHT 7.6 MANAGERIAL IMPLICATIONS Hughes Aircraft Fails to Lift Off 293 Corporate-Level Strategy 294

MAKING THE CONNECTION 295 Summary 296 Discussion Questions 297 ANALYZING THE ORGANIZATION 297 References 298

CHAPTER 8

MANAGING THE INTERNATIONAL ENVIRONMENT 3 0 1

CASE ABB'S MATRIX STRUCTURE 302

8.1

What Is the International

Environment?

304

The Specific International Environment 305 The General International Environment 308

8.2

Creating Value from Global Expansion 309

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XV

Transferring Core Competences Abroad 310 Establishing a Global Network 310 Gaining Access to Global Resources and Skills 310 Using Global Learning to Enhance Core Competences ORGANIZATIONAL INSIGHT 8.1 8.3

311

Xerox Learns from the Japanese 312

Factors Influencing the Choice of Global Expansion Strategy 312 Pressures for Global Integration 313 Pressures for Local Responsiveness 313 Bureaucratic Costs 313

8.4

Strategiesfor Managing the International Environment Multidomestic Strategy 314 International Strategy 316 Global Strategy 317

314

ORGANIZATIONAL INSIGHT 8.2 Transnational Strategy ORGANIZATIONAL INSIGHT 8.3 Strategy 320 MANAGERIALIMPLICATIONS 8.5

Arvin Industries Goes Global 318 319 Procter & Gamble s Transnational Global Expansion Strategy 321

Global Expansion Strategy, Organizational Organizational Culture 322

Structure, and 322

Vertical Differentiation in the International Environment Horizontal Differentiation in the International Environment 325 ORGANIZATIONAL INSIGHT 8.4

Perkin-Elmer Oranges Track 327

ORGANIZATIONAL INSIGHT 8.5 Motorola Goes to a Global Matrix 329 Increasing Integration in the International Environment 331 Developing an International Organizational Culture 332 MANAGERIAL IMPLICATIONS Structure 334 8.6 International Matching Global Strategy and 335

Strategie Alliances

Long-Term Contracts 335 Network Organizations 335 Minority Ownership 336 Joint Ventures 336

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CONTENTS

ORGANIZATIONALINSIGHT 8.6 AT&T's Network MAKING THE CONNECTION 341 Summary 341 Discussion Questions 342 ANALYZING THE ORGANIZATION 342 References 343

337

PART

in THE TECHNOLOGICAL ENVIRONMENT

ORGANIZATIONAL DESIGN A N D TECHNOLOGY CASE PROGRESSIVE MANUFACTURE AT FORD 346 9.1 9.2 9.3 What Is Technology? 348 Effectiveness 348 350 345

CHAPTER S7

Technology and Organizational

Technical Complexity: The Theory ofJoan Woodward Small-Batch and Unit Technology 351 Large-Batch and Mass Production Technology 353

ORGANIZATIONAL INSIGHT 9.1 The Ethics ofMass Production 353 Continuous-Process Technology 354 Technical Complexity and Organizational Structure 355 The Technological Imperative 358 9.4 Routine Tasks and Complex Tasks: The Theory of Charles Perrow 359 Task Variability and Task Analyzability 359 FourTypes of Technology 360 Routine Technology and Organizational Structure 362 Nonroutine Technology and Organizational Structure 363 ORGANIZATIONAL INSIGHT 9.2 Stripes 364 9.5 The San Diego Zoo Changes Its

Task Interdependence: The Theory of James D. Thompson 365 Mediating Technology and Pooled Interdependence 365 Long-Linked Technology and Sequential Interdependence 368

ORGANIZATIONAL INSIGHT 9.3 oflntangible Services 370

USAA: Improving The Delivery

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XVII

Intensive Technology and Reciprocal Interdependence ORGANIZATIONAL INSIGHT 9.4 Packard 372 MANAGERIALIMPLICATIONS A New Approach at HewlettAnalyzing Technology 374

371

MAKING THE CONNECTION 374 Summary 374 Discussion Questions 376 ANALYZING THE ORGANIZATION 376 References 377

MANAGING THE NEW TECHNOLOGICAL E N V I R O N M E N T 379

CASE TOYOTA'S FLEXIBLE PRODUCTION SYSTEM 380 70.7 From Mass Production to Advanced Technology 382 Manufacturing

70.2 Advanced Manufacturing Technology: Innovations in Materials Technology 384 Computer-Aided Design 384 Computer-Aided Materials Management 386 Just-in-Time Inventory Systems 387 Flexible Manufacturing Technology and Computer-Integrated Manufacturing 388 ORGANIZATIONAL INSIGHT 10.1 Future 389 Motorolas Factory ofthe

70.3 Advanced Manufacturing Technology: Innovations in Knowledge Technology 391 Flexible Workers 392 Flexible Work Teams 392 ORGANIZATIONAL INSIGHT 10.2 ORGANIZATIONAL INSIGHT 10.3 on Life 395 Flexible Work Teams at Globe GM and Toyota Give Plant a New Lease Technology 396

70.4 Managing Advanced Manufacturing Total Quality Management 397

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CONTENTS

ORGANIZATIONAL INSIGHT 10.4 Quality 398

Xerox and Trident Tool: The Search for

Organizational Structure and Advanced Manufacturing Technology 400 Advanced Manufacturing Technology and Organizational Culture 401 MANAGERIALIMPLICATIONS Technology 402 70.5 Computer-Integrated Advanced Manufacturing Systems 402 405

Information

70.6 Managing Innovation in High-Tech Organizations The Nature of Technological Innovation 405 Managing High-Tech Organizations 406 ORGANIZATIONAL INSIGHT 10.5 Championing the Mustang 410 412

408

Creating a Culture for Innovation MANAGERIAL IMPLICATIONS Innovation

MAKING THE CONNECTION 413 Summary 413 Discussion Questions 414 ANALYZING THE ORGANIZATION 414 References 415

PART

iv MANAGING ORGANIZATIONAL PROCESSES

ORGANIZATIONAL BIRTH,
G R O W T H , DECLINE, A N D DEATH 417
C A S E DELL COMPUTER F A C E S A CRISIS 418 77.7 The Organizational 77.2 Organizational Life Cycle 419 420

CHAPTER 1 7

Birth

77.3 A Population Ecology Model of Organizational Birth 422 NumberofBirths 423 Survival Strategies 424

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XIX

The Process of Natural Selection ORGANIZATIONAL INSIGHT 11.1 ORGANIZATIONAL INSIGHT 11.2 Endangered Species? 428

426 427

A Shakeup in Securities Are Network Affiliates an

11.4 Institutional

Theory of Organizational

Growth

429

Organizational Isomorphism 430 Disadvantages of Isomorphism 431 ORGANIZATIONAL INSIGHT 11.3 The Total Quality Bandwagon 432

11.5 Greiner's Model of Organizational

Stage 1: Growth Through Creativity ORGANIZATIONAL INSIGHT 11.4 Computer 435 Stage 2: Growth Stage 3: Growth Stage 4: Growth Stage 5: Growth Through Through Through Through

Growth
434

433

The Crisis ofLeadership at Apple Direction 436 Delegation 437 Coordination 438 Collaboration 439

MANAGERIALIMPLICATIONS Growth 439

Organizational Birth and

11.6 Organizational

Decline

440

Organizational Inertia 441 Changes in the Environment 443 Weitzel and Jonsson's Model of Organizational Decline ORGANIZATIONAL INSIGHT 11.5 to Strength 445 ORGANIZATIONAL INSIGHT 11.6 The Role of the Founder ORGANIZATIONAL INSIGHT 11.7 MANAGERIAL IMPLICATIONS MAKING THE CONNECTION Summary 449 Discussion Questions 451 451

443

General Dynamics Goesfrom Weakness Borden Bites Back 448 No Exitfrom Petrie Stores 448 449 446

Organizational Decline 449

ANALYZING THE ORGANIZATION References 452

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CONTENTS

CHAPTER 12

DECISION M A K I N G , LEARNING, A N D ORGANIZATIONAL CHANGE 455

CASE TIME FOR CHANGE AT LEXMARK INTERNATIONAL 456

12.1 Organizational

Decision Making

458 459

72.2 Models of Organizational

Decision Making

The Rational Model 459 The Carnegie Model 461 ORGANIZATIONAL INSIGHT 12.1 Machines? 463 Should GE Make or Buy Washing

The Incrementalist Model 464 The Unstructured Model 465 The Garbage Can Model 465 12.3 Organizational Learning and Cognitive Biases 466 The Process of Organizational Learning 467 Decision Making and Cognitive Biases 468 ORGANIZATIONAL INSIGHT 12.2 Style 471 ORGANIZATIONAL INSIGHT 12.3 12.4 Improving Decision Making Nissans Top-Heavy Management Gitano Jeans Falls Down and Learning 475 477 473

Strategies for Organizational Learning 475 Changing the Composition of the Top-Management Team Devil's Advocacy and Dialectical Inquiry 478 Collateral Organizational Structure 479 Summary 479 MANAGERIAL IMPLICATIONS 72.5 Organizational Decision Making and Learning 480 480

Change and Restructuring Change 483

72.6 A Model of Organizational

Determining the Need for Change 483 Identifying Obstacles to Change 485 Determining the Strategy for Change 487 ORGANIZATIONAL INSIGHT 12.4 MANAGERIAL IMPLICATIONS Jack Welch's Approach to Change 490 488

Organizational Change

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XXI

MAKING THE CONNECTION Summary 491 Discussion Questions 492

491

ANALYZING THE ORGANIZATION References 493

493

CHAPTER 13

ORGANIZATIONAL CONFLICT,
POWER, A N D POLITICS 497 CASE THE COUP AT TIME WARNER 498 13.1 What Is Organizational Stage 1: Latent Conflict ORGANIZATIONAL INSIGHT 13.1 Kodak 504 ORGANIZATIONAL INSIGHT 13.2 ORGANIZATIONAL INSIGHT 13.3 First Boston 506 Conflict? 503 Conflict Causes Slow Change at The President Versus the Coach 505 How Rewards Produced Conflict at CS 499 Conflict 502

73.2 Pondy's Model of Organizational

Stage 2: Perceived Conflict 507 Stage 3: Feit Conflict 507 Stage 4: Manifest Conflict 508 ORGANIZATIONAL INSIGHT 13.4 Stage 5: Conflict Aftermath 73.3 Managing Conflict: Conflict Strategies 509 Breakup at Giorgio 508 509 Resolution 510 511

Acting at the Level ofStructure

Acting at the Level of Attitudes and Individuais MANAGERIALIMPLICATIONS Conflict 512

73.4 What Is Organizational Power? 512 73.5 Sources of Organizational Power 513 Authority 513 Control over Resources 516 Control over Information 516

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CONTENTS

Nonsubstitutability 517 Centrality 517 Control over Uncertainty 518 Unobtrusive Power: Controlling the Premises of Decision Making 518

13.6 Using Power: Organizational

Tactics for Playing Politics

Politics
520

519
523

The Costs and Benefits of Organizational Politics ORGANIZATIONAL INSIGHT 13.5 MANAGERIAL IMPLICATIONS MAKING THE CONNECTION Life at the Top 525 526

Power and Politics 526

Summary 526 Discussion Questions 527 ANALYZING THE ORGANIZATION References 528

528

PARTV

CASES IN ORGANIZATIONAL THEORY

Organizational Structure
Case 1 Case 2 Case 3 Case 4 Case 5 United Products, Inc. Jeffrey C. Shuman, Bentley College 533 The Paradoxical Twins: Acme and Omega Electronics John F. Veiga, University of Connecticut 543 Continental Can Company of Canada, Ltd. Paul R. Lawrence, Harvard University 547 TRW Systems Group (A and B Condensed) Paul H. Thompson, Harvard University 558 Texana Petroleum Corporation Jay W. Lorsch, Paul R. Lawrence, and J.A. Garrison, Harvard University 574

CASES

Organizational Culture
Case 6 W.L. Gore & Associates, Inc. Frank Shipper, Salisbury State University and Charles C. Manz, Arizona State University

582

CONTENTS

XXI

Case 7 Case 8

Three Roads to Innovation Ronald A. Mitsch Welch on Welch Stephen W. Quickel 595

592

Environment, Strategy, and Structure

Case 9 Case 10 Case 11 Beer and Wine Industries: Bartles & Jaymes Per V. Jenster, I.M.D., Lausanne, Switzerland 600 Bennett's Machine Shop, Inc. Arthur Sharplin, McNeese State University 607

The Upjohn Company Douglas D. Moesei, Lehigh University, and Gareth R. Jones, Texas A&M University 620 BCI Holdings Corporation (Formerly Beatrice Companies Inc.) Gareth R. Jones, Texas A&M University

Case 12

630

International Strategy and Structure

Case 13 Case 14 Philips, N.V. Charles W.L. Hill, University ofWashington Club Mediterranee Jacques Horovitz, IMEDE 647 644

Technology, Innovation, and Structure

Case 15 Case 16 The Lincoln Electric Company Arthur Sharplin, McNeese State University 660 671

Medical Equipment (A) Robert Burgelman and T.J. Kosnik, Stanford University

Decision Making, Conflict, and Change

Case 17 Carter Racing Jack W. Brittain, University of Texas at Dallas, and Sim B. Sitkin, University of Texas at Austin "Ramrod" Stockwell Charles Perrow, Yale University Rondell Data Corporation John A. Seeger, Bentley College 686 682

680

Case 18 Case 19

Company Index Subject Index

695 698