Organization Theory & Design, 13th Edition PDF by Richard L. Daft

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Organization Theory & Design, Thirteenth Edition

By Richard L. Daft

Organization Theory & Design, Thirteenth Edition

Contents:

Preface xv

PART 1 Introduction to Organizations 001

Chapter 1: Organizations and

Organization Design 002

A Look Inside General Electric 003

The Jack Welch Era 1981–2001, 003 • The

Jeff Immelt Era 2001–2017, 005 • Events

Since 2017, 006

Organization Design in Action 007

Topics, 007 • Purpose of This Chapter, 008 •

Current Challenges, 009

BOOKMARK 1.0: The Vanishing American

Corporation: Navigating the Hazards of a New

Economy 010

IN PRACTICE: Foot Locker 013

What Is an Organization? 014

Definition, 014 • From Multinationals

to Nonprofits, 014 • Importance of

Organizations, 016

IN PRACTICE : Zara SA 017

Dimensions of Organization Design 018

Structural Dimensions, 018

IN PRACTICE: Shizugawa Elementary School Evacuation

Center and BP Transocean Deepwater Horizon Oil Rig 020

Contingency Factors, 020

IN PRACTICE: Valve Software 023

Performance and Effectiveness

Outcomes, 023

The Evolution of Organization Design 025

Historical Perspectives, 025

HOW DO YOU FIT THE DESIGN? Evolution of Style 027

It All Depends: Key Contingencies, 028

The Contrast of Organic and Mechanistic Designs 029

The Emerging Bossless Design Trend 032

IN PRACTICE: Morning Star 033

Framework for the Book 034

Levels of Analysis, 034 • Plan of the Book, 035

Plan of Each Chapter, 035

Chapter 1 Workshop: Measuring Dimensions of

Organizations 038

Case for Analysis: Craft Originalities, Inc. 039

PART 2 Organization Purpose and Structural Design 047

Chapter 2: Strategy, Organization Design,

and Effectiveness 048

Purpose of This Chapter, 050

The Role of Strategic Direction in Organization

Design 050

IN PRACTICE: The Kroger Company 051

Organizational Purpose 054

Strategic Intent, 055

BOOKMARK 2.0: Blue Ocean Shift: Beyond

Competing; Proven Steps to Inspire Confidence and

Seize New Growth 057

Operating Goals, 058 • Goal Conflict, 060 •

The Importance of Goals, 060

IN PRACTICE: Wells Fargo 061

Two Frameworks for Selecting Strategy and Design 063

Porter’s Competitive Strategies, 063

HOW DO YOU FIT THE DESIGN? Your Strategy/

Performance Strength 065

IN PRACTICE: Allegiant Air 066

Miles and Snow’s Strategy Typology, 067 •

How Strategies Affect Organization

Design, 068 • Other Contingency Factors

Affecting Organization Design, 069

Assessing Organizational Effectiveness 071

Definition of Organizational Effectiveness, 071

Who Decides?, 072 • Goal Approach, 073

Resource-Based Approach, 075 • Internal

Process Approach, 076

IN PRACTICE: BNSF Railway 077

Strategic Constituents Approach, 077

An Integrated Effectiveness Model 079

IN PRACTICE: Samsung Group 082

Chapter 2 Workshop: Identify Your Goal Preferences 084

Case for Analysis: The Addlington Gallery of Art 084

Case for Analysis: Millier Machine Parts & Services 086

Chapter 3: Fundamentals of Organization

Structure 92

Purpose of This Chapter, 94

Organization Structure 094

Information-Sharing Perspective

on Structure 097

Centralized Versus Decentralized, 097

BOOKMARK 3.0: The Future of Management 098

IN PRACTICE: Toyota 099

Vertical Information Sharing, 099

Horizontal Information Sharing and

Collaboration, 100

IN PRACTICE: AT&T WarnerMedia 102

HOW DO YOU FIT THE DESIGN? The Pleasure/Pain of

Working on a Team 106

Relational Coordination, 106

IN PRACTICE: Southwest Airlines 107

Organization Design Alternatives 108

Required Work Activities, 109 • Reporting

Relationships, 109 • Departmental Grouping

Options, 109

Functional, Divisional, and Geographic Designs 111

Functional Structure, 111 • Functional

Structure with Horizontal Linkages, 112 •

Divisional Structure, 113

IN PRACTICE: Google and Alphabet 114

Geographic Structure, 116

Matrix Structure 118

Conditions for the Matrix, 119 • Strengths

and Weaknesses, 120

IN PRACTICE: Englander Steel 121

Virtual Network Structure and Outsourcing 123

How the Structure Works, 123 • Strengths

and Weaknesses, 124

Holacracy Team Structure 126

IN PRACTICE: Zappos 128

Characteristics, 128 • Strengths and

Weaknesses, 128

Applications of Structural Design 130

Mix and Match, 131 • Structural Alignment,

131 • Symptoms of Structural Deficiency, 132

Chapter 3 Workbook: You and Organization Structure 134

Case for Analysis: Holtzclaw Supermarkets, Inc. 134

Case for Analysis: Aquarius Advertising Agency 137

PART 3 Open System Design Elements 145

Chapter 4: The External Environment 146

Purpose of This Chapter, 147

The Organization’s Environment 148

Task Environment, 148 • General

Environment, 150 • International

Environment, 151

IN PRACTICE: Uber and Didi Chuxing 152

The Changing Environment 153

Complexity, 154 • Dynamism, 154

IN PRACTICE: Gap Inc. 154

Framework, 156

BOOKMARK 4.0: Confronting Reality: Doing What

Matters to Get Things Right 156

Adapting to Complexity and Dynamism 158

Adding Positions and Departments, 159 •

Building Relationships, 159

IN PRACTICE: Seton Hall University and

Dickinson College 160

Differentiation and Integration, 162 •

Organic Versus Mechanistic Management

Processes, 163

HOW DO YOU FIT THE DESIGN? Mind and Environment, 164

Planning, Forecasting, and

Responsiveness, 165

Framework for Adapting to Complexity

and Dynamism 166

Dependence on Financial Resources 167

Influencing Financial Resources 168

Establishing Formal Relationships, 168

IN PRACTICE: Publicis and Omnicom 169

Influencing Key Sectors, 171

IN PRACTICE: Amazon and Walmart 171

Organization–Environment Integrative Framework 174

Chapter 4 Workshop: Organizations You Rely On 176

Case for Analysis: CPI Corporation 176

Case for Analysis: Farrington Medical Devices 177

Chapter 5: Interorganizational

Relationships 184

Purpose of This Chapter, 186

Organizational Ecosystems 186

Is Competition Dead?, 187

IN PRACTICE: Apple and Samsung 189

The Changing Role of Management, 189

Interorganizational Framework, 191

Resource Dependence 192

Types of Resource-Dependence Relationships,

192 • Power Implications, 194

IN PRACTICE: JPMorgan Chase and Amazon 195

Collaborative Networks 195

HOW DO YOU FIT THE DESIGN? Personal Networking 196

Why Collaboration?, 197

IN PRACTICE: Accelerating Medicines Partnership 198

From Adversaries to Partners, 198

BOOKMARK 5.0: Managing Strategic Relationships:

The Key to Business Success 200

Population Ecology 201

IN PRACTICE: Blockbuster 202

What Hinders Adaptation?, 202

IN PRACTICE: LVMH Moët Hennessy Louis Vuitton 202

Organizational Form and Niche, 203 •

Process of Ecological Change, 204 • Strategies

for Survival, 205

Institutionalism 207

The Institutional View and Organization

Design, 207 • Institutional Similarity, 208

Chapter 5 Workshop: The Shamatosi 212

Case for Analysis: Technomagia and AUD 214

Case for Analysis: Bradford Chemicals Company 215

Chapter 6: Designing Organizations for

the International Environment 222

Purpose of This Chapter, 224

Entering the Global Arena 224

Motivations for Global Expansion, 225

BOOKMARK 6.0: The World Is Flat: A Brief History

of the Twenty-First Century 225

IN PRACTICE: Amway 227

Managing the Stages of International

Development, 229

HOW DO YOU FIT THE DESIGN? What Is Your Cultural

Intelligence? 231

Global Expansion Through International

Alliances and Acquisitions, 232

IN PRACTICE: Walmart and Flipkart 233

The Challenges of Global Design 234

Increased Complexity and Differentiation,

235 • Increased Need for Coordination,

236 • Transfer of Knowledge and Reverse

Innovation, 237

Designing Structure to Fit Global Strategy 239

Strategies for Global Versus Local

Opportunities, 239

IN PRACTICE: General Electric 242

International Division, 243 • Global Product

Division Structure, 243 • Global Geographic

Division Structure, 245

IN PRACTICE: Colgate-Palmolive Company 246

Global Matrix Structure, 247

IN PRACTICE: ABB Group 248

Additional Global Coordination Mechanisms 250

Global Teams, 250

IN PRACTICE: L’Oréal 251

Headquarters Planning, 252 • Expanded

Coordination Roles, 252 • Benefits of

Coordination, 253

The Transnational Model of Organization 254

Chapter 6 Workshop: Made in the U.S.A.? 259

Case for Analysis: Halogen Analytics 260

Case for Analysis: Rhinebeck Industrial 261

Chapter 7: Designs for Societal Impact:

Dual-Purpose Organizations, Corporate

Sustainability, and Ethics 270

Purpose of This Chapter, 272

Designing the Dual-Purpose Organization 272

Facing the Challenge, 274 • Designs for

Achieving Dual Commercial and Social

Welfare Goals, 276

IN PRACTICE: Grameen Veolia Water 278

Corporate Social Responsibility 281

The Green Movement, 282 • The Triple

Bottom Line, 283

IN PRACTICE: Gravity Payments 284

Conscious Capitalism, 285

BOOKMARK 7.0: Conscious Capitalism: Liberating the

Heroic Spirit of Business 285

Serving Organizational Stakeholders, 286 •

Serving the Bottom of the Pyramid, 288

IN PRACTICE: Godrej & Boyce 289

The Consequences for Doing Good 290

Designing a Structure for Executing a Sustainability

Program 291

A Separate Department or Include Everyone?,

292 • Involve External Stakeholders, 293 •

Set Goals, Measure, and Reward, 294

HOW DO YOU FIT THE DESIGN? How Sustainable

are You? 296

Designs to Uphold Ethical Values 297

Sources of Individual Ethical Principles,

297 • Organizational Ethics, 298 • Formal

Structure and Systems, 299

IN PRACTICE: Google 302

Corporate Ethics in a Global Environment 303

Chapter 7 Workshop: What is Your Level of Ethical

Maturity? 305

Case for Analysis: Solo: Helping a Million People

See Again 305

Case for Analysis: Fiedler, Philips & Wilson Design 307

PART 4 Internal Design Elements 313

Chapter 8: Designs for Manufacturing and

Service Technologies 314

Purpose of This Chapter, 317

Core Manufacturing Technology 318

Manufacturing Firms, 318 • Strategy,

Technology, and Performance, 320 • The

Smart Factory, 321 • Mass Customization, 323

Performance and Structural Implications, 324

Surviving Extremely Complex Technologies 326

Extreme Technology Complexity, 326

IN PRACTICE: Carnival Cruise Lines 327

BOOKMARK 8.0: Meltdown: Why Our Systems Fail and

What We Can Do About It 327

High Reliability Organizing, 328

Core Service Technology 331

Service Firms, 331

HOW DO YOU FIT THE DESIGN?: Manufacturing

Versus Service 333

IN PRACTICE: Panera Bread Company 335

Designing the Service Organization, 335

IN PRACTICE: Home Depot Inc. 336

Noncore Departmental Technology 337

Variety, 338 • Analyzability, 338 •

Framework, 338 • Department Design, 340

IN PRACTICE: Memorial Sloan-Kettering Cancer Center 341

Workflow Interdependence Among Departments 343

Types, 343

IN PRACTICE: Southwest Airlines 346

Structural Priority, 347 • Structural

Implications, 347

IN PRACTICE: Athletic Teams 348

Chapter 8 Workshop: Small Business Workflow Technology 350

Case for Analysis: Acetate Department 351

Case for Analysis: Digitalization in the Manufacturing

Sector: Skills in Transition 354

Chapter 9: Designs for Digital

Organizations and Big Data Analytics 360

Purpose of This Chapter, 362

The Digital Information Explosion 362

Pipes versus Platforms: A New Organization Form 365

Two Types, 367 • Foundational Assumptions, 367

IN PRACTICE: Uber 369

Platform Design Recommendations, 370

Big Data Analytics 372

IN PRACTICE: Siemens Gamesa 373

Big Data Requirements, 373

BOOKMARK 9.0: Astroball: The New Way to Win It All 376

Big Data and Organization Structure, 376

IN PRACTICE: Morgan Stanley 378

Artificial Intelligence 380

Is AI an Objective Decision Maker?, 381 •

Is Nudge Management Going to Be Your

Coach?, 383 • Algorithmic Control May Be

Your New Boss, 383 • AI Implications for

Organization Design, 385

HOW DO YOU FIT THE DESIGN? How Will You Handle

Decentralization and Autonomy? 386

Other Digital Applications in Organizations 387

Social Network Analysis, 387

IN PRACTICE: Exploration and Production Division 387

Knowledge Management, 389

IN PRACTICE: BAE Systems 390

Digital Impact on Organization Design 392

Chapter 9 Workshop: Manufacturing and Big Data:

Organize the Project 394

Case for Analysis: Hermitage Escalator Company 395

Chapter 10: Organization Size, Life Cycle,

and Decline 402

Purpose of This Chapter, 404

Organization Size: Is Bigger Better? 404

Pressures for Growth, 404 • Dilemmas of

Large Size, 405

HOW DO YOU FIT THE DESIGN? What Size

Organization For You? 407

IN PRACTICE: Dell Inc. 409

Organizational Life Cycle 410

Stages of Life-Cycle Development, 410

IN PRACTICE: Airbnb 413

Organizational Characteristics During the

Life Cycle, 414

Organizational Size, Bureaucracy, and Control 415

What Is Bureaucracy?, 415

IN PRACTICE: United Parcel Service (UPS) 417

Size and Structural Control, 418

Bureaucracy in a Changing World 420

BOOKMARK 10.0: The Conversational Firm:

Rethinking Bureaucracy in the Age of Social Media 420

Organizing Temporary Systems, 421

IN PRACTICE: Salvation Army 422

Other Approaches to Busting Bureaucracy,

423

Bureaucracy and Other Forms of Control 424

Bureaucratic Control, 425

IN PRACTICE: East Resources Inc. and Royal Dutch

Shell PLC 426

Market Control, 427 • Clan Control, 427

IN PRACTICE: Valve Corporation and FAVI 428

Organizational Decline 429

Definition and Causes, 430

IN PRACTICE: Eastman Kodak 431

A Model of Decline Stages, 431

Chapter 10 Workshop: Classroom Control 434

Case for Analysis: Yahoo!: “Get to Work!” 434

Case for Analysis: Bachmeyer Foods, Inc. 435

PART 5 Managing Dynamic Processes 441

Chapter 11: Organizational Culture

and Control 442

Purpose of This Chapter, 444

Organizational Culture 444

What Is Culture?, 445 • Emergence and

Purpose of Culture, 446

IN PRACTICE: Google 446

Interpreting/Shaping Culture, 447

Culture and Organization Design 451

The Adaptability Culture, 453 • The

Achievement Culture, 453

IN PRACTICE: Huawei 453

The Clan Culture, 454 • The Bureaucratic

Culture, 454

HOW DO YOU FIT THE DESIGN? Corporate Culture

Preference 455

Culture Strength and Organizational Subcultures 456

IN PRACTICE: Pitney Bowes Credit Corporation 457

BOOKMARK 11.0: Rule Makers, Rule Breakers: How

Tight and Loose Cultures Wire Our World 458

Culture and Performance 459

The Cultural Focus of Control Systems 461

The Changing Philosophy of Control, 461 •

Feedback Control Model, 463 • Organization

Level: The Balanced Scorecard, 465 •

Department Level: Behavior Versus Outcome

Control, 468

Chapter 11 Workshop: Balanced Scorecard Exercise 471

Case for Analysis: Midwest Controls, Inc. 472

Case for Analysis: NASCAR 473

Chapter 12: Innovation and Change 478

Purpose of This Chapter, 480

The Strategic Role of Innovation 480

Innovate or Be Disrupted, 480

IN PRACTICE: Netflix 481

Strategic Types of Innovation, 482

Elements for Successful Change 484

Technology Innovation 487

HOW DO YOU FIT THE DESIGN? Are You Innovative? 488

The Ambidextrous Approach, 488 • The

Bottom-Up Approach, 489 • Techniques for

Encouraging Technology Change, 490

BOOKMARK 12.0: Creativity, Inc.: Overcoming the

Unseen Forces That Stand in the Way of True Inspiration 492

New Products and Services 494

IN PRACTICE: Elkay Manufacturing

494

New Product Success Rate, 495 • Reasons

for New Product Success, 496 • Horizontal

Coordination Model, 497

IN PRACTICE: Corning, Inc. 498

Open Innovation and Crowdsourcing, 499 •

The Need for Speed, 500

Strategy and Structure Change 501

The Dual-Core Approach, 502 •

Organization Design for Implementing New

Management Processes, 502

IN PRACTICE: GlaxoSmithKline 504

Culture Change 504

Forces for Culture Change, 505

IN PRACTICE: Taco Bell 506

Culture Change Interventions, 507

IN PRACTICE: UnitedHealth

Group 508

Tactics for Implementing Change 509

Leadership for Change, 509 • Techniques

for Implementation, 510 • Techniques for

Overcoming Resistance, 511

Chapter 12 Workshop: Innovation Climate 514

Case for Analysis: Fabulous Footwear 515

Case for Analysis: Lamprey, Inc. 519

Chapter 13: Decision-Making Processes 526

Purpose of This Chapter, 528

Types of Decisions 528

IN PRACTICE: Twitter 529

Individual Decision Making 531

Rational Approach, 531

IN PRACTICE: Veracruz Consulting 534

Bounded Rationality Perspective, 535

HOW DO YOU FIT THE DESIGN? Making Important

Decisions 537

BOOKMARK 13.0: Blink: The Power of Thinking

Without Thinking 539

Cognitive Biases 540

Specific Biases That May Influence Decision

Making, 542 • Overcoming Cognitive Biases, 543

Organizational Decision Making 545

Management Science Approach, 545 •

Carnegie Model, 547

IN PRACTICE: The New York Times 548

Incremental Decision Model, 550

IN PRACTICE: The Los Angeles Rams 550

Organizational Decisions and Change 554

Combining the Incremental and Carnegie

Models, 554 • Garbage Can Model, 555

IN PRACTICE: Volkswagen 558

Contingency Decision-Making Framework 560

Problem Consensus, 560 • Technical

Knowledge about Solutions, 561 •

Contingency Framework, 561

Special Decision Circumstances 564

High-Velocity Environments, 564 • Decision

Mistakes and Learning, 565

Chapter 13 Workshop: Style of Decision Making 568

Case for Analysis: Government DTS 568

Case for Analysis: Dubois French Eatery 570

Chapter 14: Conflict, Power, and Politics 576

Purpose of This Chapter, 578

Interdepartmental Conflict in Organizations 578

Sources of Conflict, 580

IN PRACTICE: National Rifle Association (NRA) 582

Rational Versus Political Model, 582 • Tactics

for Enhancing Collaboration, 584

IN PRACTICE: The Freaky Friday Management Technique 586

Power and Organizations 588

Individual Versus Organizational Power, 588

Power Versus Authority, 589 • Vertical Sources of Power, 590

IN PRACTICE: Jay Bower, Crossbow Group 593

The Power of Empowerment, 594 •

Horizontal Sources of Power, 594

IN PRACTICE: International Alliance of Theatrical Stage Employees 597

Political Processes in Organizations 600

Definition, 601 • When to Use Political Activity, 602

IN PRACTICE: Nissan and Renault 602

Using Soft Power and Politics 603

HOW DO YOU FIT THE DESIGN? Political Skills 604

Tactics for Increasing Power, 605 • Political

Tactics for Using Power, 606

IN PRACTICE: The Vatican 607

BOOKMARK 14.0: Influence: Science and Practice 608

IN PRACTICE: World Bank 609

Chapter 14 Workshop: How Do You Handle Conflict? 611

Case for Analysis: East Tennessee News 613

Case for Analysis: The Burlington Plant 614

Integrative Cases 621

1.0 Disorganization at Semco: Human Resource Practices as a Strategic Advantage 623

2.0 Walmart’s Failures in Entering Three Developed Markets 633

3.0 IKEA: Scandinavian Style 639

4.0 Engro Chemical Pakistan Limited—Restructuring

the Marketing Division 644

5.0 The New York Times Versus Amazon 656

6.0 Lean Initiatives and Growth at Orlando Metering Company 661

7.0 SCG Lampang: Overcoming Community Resistance to

a Sustainability Project (A) 670

8.0 Costco: Join the Club 675

9.0 The Donor Services Department 679

10.0 Cisco Systems: Evolution of Structure 683

11.0 ToolTopia.com 689

12.0 Sometimes a Simple Change Isn’t So Simple 693

Glossary 698

Name Index 709

Corporate Name Index 719

Subject Index 723

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