Preface ..................................................... xix
PART I: THE ORGANIZATION AND ITS ENVIRONMENT ................... 1
CHAPTER 1 Organizations and Organizational Effectiveness ....... 1
What Is an Organization? ...................................... 1
How Does an Organization Create Value? ...................... 2
Why Do Organizations Exist? ................................. 4
Organizational Theory, Design, and Change ..................... 7
Organizational Structure .................................... 7
Organizational Culture ...................................... 8
Organizational Design and Change ............................ 9
The Importance of Organizational Designand Change .......... 11
The Consequences of Poor Organizational Design ............. 13
How Do Managers Measure Organizational Effectiveness? ........ 14
The External Resource Approach: Control .................... 15
The Internal Systems Approach: Innovation .................. 17
The Technical Approach: Efficiency ......................... 17
Measuring Effectiveness: Organizational Goats .............. 18
The Plan of This Book ...................................... 20
Organizational Design ...................................... 20
Organizational Change ...................................... 22
Summary ...................................................... 22
Discussion Questions ......................................... 23
Organizational Theory in Action .............................. 23
Practicing Organizational Theory: Open Systems Dynamics .... 23
The Ethical Dimension #1 ................................... 23
Making the Connection #1 ................................... 23
Analyzing the Organization: Design Module #1 ............... 23
Assignment ................................................. 24
CASE FOR ANALYSIS
Change and More Change at AOL-Time Warner .................. 25
References ................................................... 26
Focus on New Information Technology
Amazon.com, Part 1 .......................................... 3
Organizational Insight
Opposite Organizing Approaches at Apple and Dell
Computer ................................................. 10
The Remaking of Chrysler's Cars ............................ 14
Mattel's Rocky Road ........................................ 16
Improving Efficiency at FedEx and UPS ...................... 18
CHAPTER 2 Stakeholders, Managers, and Ethics .................. 27
Organizational Stakeholders .................................. 28
Inside Stakeholders ........................................ 28
Outside Stakeholders ....................................... 30
Organizational Effectiveness: Satisfying Stakeholders'
Goals and Interests ........................................ 32
Competing Goals ............................................ 32
Allocating Rewards ......................................... 33
Top Managers and Organizational Authority .................... 34
The Chief Executive Officer ................................ 36
The Top Management Team .................................... 37
Other Managers ............................................. 38
An Agency Theory Perspective ................................. 38
The Moral Hazard Problem ................................... 39
Solving the Agency Problem ................................. 40
Top Managers and Organizational Ethics ....................... 42
Ethics and the Law ......................................... 42
Ethics and Organizational Stakeholders ..................... 43
Sources of OrganizationaI Ethics ........................... 45
Why Do Ethical Rules Develop? .............................. 47
Why Does Unethical Behavior Occur? ......................... 49
Creating an Ethical Organization ............................. 50
Designing an Ethical Structure and Control System .......... 50
Creating an Ethical Culture ................................ 51
Supporting the Interests of Stakeholder Groups ............. 51
Summary ...................................................... 52
Discussion Questions ......................................... 52
Organizational Theory in Action .............................. 53
Practicing Organizational Theory: Creating a Code of
Ethics ................................................... 53
The Ethical Dimension #2 ................................... 53
Making the Connection #2 ................................... 53
Analyzing the Organization: Design Module #2 ............... 53
Assignment ................................................. 53
CASE FOR ANALYSIS
Ethical Stances at Johnson & Johnson and Dow Coming ........ 54
References ................................................... 55
Organizational Insight
The Increasing Power of Institutional Investors ............ 29
Southwest Airlines Serves Its Customers .................... 30
Should Doctors Own Stock in Hospitals? ..................... 34
The Use of Animals in Cosmetics Testing .................... 45
Is It Right to Use Child Labor? ............................ 46
CHAPTER 3 Managing in a Changing Global Environment ........... 56
What Is the Organizational Environment? ...................... 56
The Specific Environment ................................... 58
The General Environment .................................... 60
Sources of Uncertainty in the Organizational Environment ... 62
Resource Dependence Theory ................................... 65
Interorganizational Strategies for Managing Resource
Dependencies ............................................... 67
Strategies for Managing Symbiotic Resource
Interdependencies .......................................... 67
Developing a Good Reputation ............................... 67
Co-Optation ................................................ 68
Strategic Alliances ........................................ 69
Merger and Takeover ........................................ 72
Strategies for Managing Competitive Resource
Interdependencies .......................................... 73
Collusion and Cartels ...................................... 73
Third-Party Linkage Mechanisms ............................. 74
Strategic Alliances ........................................ 74
Merger and Takeover ........................................ 75
Transaction Cost Theory ...................................... 76
Sources of Transaction Costs ............................... 76
Transaction Costs and Linkage Mechanisms ................... 77
Bureaucratic Costs ......................................... 78
Using Transaction Cost Theory to Choose
an Interorganizational Strategy .......................... 78
Summary ...................................................... 82
Discussion Questions ......................................... 83
Organizational Theory in Action .............................. 83
Practicing Organizational Theory: Protecting Your Domain ... 83
The Ethical Dimension #3 ................................... 83
Making the Connection #3 ................................... 83
Analyzing the Organization: Design Module #3 ............... 84
Assignment ................................................. 84
CASE FOR ANALYSIS
How Ford Manages Its Environment ........................... 85
References ................................................... 86
Focus on New Information Technology
Amazon.com, Part 2 ......................................... 64
Managerial Implications
Analyzing the Environment .................................. 65
Resource Dependence Theory ................................. 75
Organizational Insight
GE's U.S. Managers Stumble in Hungary ...................... 61
Avon's Global Empire ....................................... 66
Ekco and Its Supplier ...................................... 79
Li & Fung's Global Supply Chain Management ................. 81
PART II: ORGANIZATIONAL DESIGN ........................ 88
CHAPTER 4 Basic Challenges of Organizational Design ........... 88
Differentiation .............................................. 88
Organizational Roles ....................................... 91
Subunits: Functions and Divisions .......................... 92
Differentiation at the B.A.R. and Grille ................... 93
Vertical and Horizon tal Differentia Hon ................... 93
Organizational Design Challenges ........................... 94
Balancing Differentiation and Integration .................... 95
Integration and Integrating Mechanisms ..................... 96
Differentiation Versus Integration ......................... 99
Balancing Centralization and Decentralization ............... 100
Centralization Versus Decentralization of Authority ....... 100
Balancing Standardization and Mutual Adjustment ............. 102
Formalization: Written Rules .............................. 103
Socialization: Understood Norms ........................... 103
Standardization Versus Mutual Adjustment .................. 104
Mechanistic and Organic Organizational Structures ........... 106
Mechanistic Structures .................................... 106
Organic Structures ........................................ 107
The Contingency Approach to Organizational Design ......... 108
Lawrence and Lorsch on Differentiation, Integration, and
the Environment ......................................... 108
Burns and Stalker on Organic Versus Mechanistic
Structures and the Environment .......................... 110
Summary ..................................................... 113
Discussion Questions ........................................ 113
Organizational Theory in Action ............................. 113
Practicing Organizational Theory: Growing Pains ........... 113
Making the Connection #4 .................................. 114
The Ethical Dimension #4 .................................. 114
Analyzing the Organization: Design Module #4 .............. 114
Assignment ................................................ 114
CASE FOR ANALYSIS
Where Should Decisions Be Made? ........................... 115
References .................................................. 116
Focus on New Information Technology
Amazon.com, Part 3 ........................................ 105
Managerial Implications
Differentiation ............................................ 95
The Design Challenges ..................................... 105
Organizational Insight
B.A.R. and Grille Restaurant ............................... 90
Integration at Amgen ....................................... 98
Centralize or Decentralize? ............................... 101
McDonald's Changing Environment ........................... 112
CHAPTER 5 Designing Organizational Structure: Authority and
Control ............................................ 117
Authority: How and Why Vertical Differentiation Occurs ...... 117
The Emergence of the Hierarchy ............................ 118
Size and Height Limitations ............................... 118
Problems with Tall Hierarchies ............................ 121
The Parkinson's Law Problem ............................... 122
The Ideal Number of Hierarchical Levels: The Minimum
Chain of Command ........................................ 123
Span of Control ........................................... 124
Control: Factors Affecting the Shape of the Hierarchy ....... 126
Horizontal Differentiation ................................ 126
Centralization ............................................ 128
Standardization ........................................... 129
The Principles of Bureaucracy ............................... 130
The Advantages of Bureaucracy ............................. 134
Management by Objectives .................................. 135
The Influence of the Informal Organization .................. 137
IT, Empowerment, and Self-Managed Teams ..................... 138
Summary ..................................................... 139
Discussion Questions ........................................ 140
Organizational Theory in Action ............................. 140
Organizational Theory: How to Design a Hierarchy .......... 140
The Ethical Dimension #5 .................................. 140
Making the Connection #5 .................................. 141
Analyzing the Organization: Design Module #5 .............. 141
Assignment ................................................ 141
CASE FOR ANALYSIS
Sony's Magic Touch ........................................ 142
References .................................................. 143
Managerial Implications
Authority and Control ..................................... 130
Using Bureaucracy to Benefit the Organization ............. 136
Organizational Insight
The Shake-Up at DuPont .................................... 121
Using the Hierarchy to Promote Creativity at EMI .......... 124
Never Underestimate the Power of Rules .................... 134
Wildcat Strikes in the Gypsum Plant ....................... 138
CHAPTER 6 Designing Organizational Structure:
Specialization and Coordination .................... 144
Functional Structure ........................................ 144
Advantages of a Functional Structure ...................... 145
Control Problems in a Functional Structure ................ 147
Solving Control Problems in a Functional Structure ........ 148
From Functional Structure to Divisional Structure ........... 149
Moving to a Divisional Structure .......................... 150
Divisional Structure I: Three Kinds of Product Structure .... 151
Product Division Structure ................................ 151
Multidivisional Structure ................................. 152
Product Team Structure .................................... 158
Divisional Structure II: Geographic Structure ............... 161
Divisional Structure III: Market Structure .................. 163
Matrix Structure ............................................ 164
Advantages of a Matrix Structure .......................... 166
Disadvantages of a Matrix Structure ....................... 166
The Multidivisional Matrix Structure ...................... 167
Hybrid Structure .......................................... 168
Network Structure and the Boundaryless Organization ......... 169
Advantages of Network Structures .......................... 170
Disadvantages of Network Structures ....................... 170
The Boundaryless Organization ............................. 171
E-Commerce ................................................ 171
Summary ..................................................... 172
Discussion Questions ........................................ 173
Organizational Theory in Action ............................. 173
Practicing Organizational Theory: Which New
Organizational Structure? ............................... 173
The Ethical Dimension #6 .................................. 173
Making the Connection #6 .................................. 174
Analyzing the Organization: Design Module #6 .............. 174
Assignment ................................................ 174
CASE FOR ANALYSIS
A New Caterpillar Emerges ................................. 175
References .................................................. 176
Focus on New Information Technology
Amazon.com, Part 4 ........................................ 145
Managerial Implications
Functional Structure ...................................... 149
Changing Organizational Structure ......................... 164
Organizational Insight
Creating GM's Multidivisional Structure ................... 154
Iacocca Pioneers Chrysler's Team Structure ................ 160
Wal-Mart Goes National, Then Global ....................... 162
How to Tailor a Structure to Fit Customers ................ 164
CHAPTER 7 Creating and Managing Organizational Culture ....... 177
What Ts Organizational Culture? ............................. 177
How Is an Organization's Culture Transmitted to Its
Members? .................................................. 182
Socialization and Socialization Tactics ................... 182
tories, Ceremonies, and Organizational Language ........... 185
Where Does Organizational Culture Come From? ................ 187
Characteristics of People Within the Organization ......... 187
Organizational Ethics ..................................... 188
Property Rights ........................................... 191
Organizational Structure .................................. 193
Can Organizational Culture Be Managed? ...................... 194
Social Responsibility ....................................... 196
Approaches to Social Responsibility ....................... 196
Why Be Socially Responsible? .............................. 197
Summary ..................................................... 199
Discussion Questions ........................................ 199
Organizational Theory in Action ............................. 199
Practicing Organizational Theory: Developing a Service
Culture ................................................. 199
The Ethical Dimension #7 .................................. 199
Making the Connection #7 .................................. 200
Analyzing the Organization: Design Module #7 .............. 200
Assignment ................................................ 200
CASE FOR ANALYSIS
A Tale of Two Cultures .................................... 201
References .................................................. 202
Managerial Implications
Analyzing Organizational Culture .......................... 187
Designing Organizational Culture .......................... 196
Organizational Insight
How Global Culture Affects Organizational Culture ......... 179
Mergers and Cultures ...................................... 180
siteROCK's Military Management Culture .................... 186
Google's Googling Culture ................................. 189
Apple Juice or Sugar Water ................................ 190
Bimba Changes Its Property Rights System .................. 193
CHAPTER 8 Organizational Design and Strategy in a Changing
Global Environment ................................. 204
Strategy and the Environment ................................ 205
Sources of Core Competences ............................... 205
Global Expansion and Core Competences ..................... 207
Four Levels of Strategy ................................... 209
Functional-Level Strategy ................................... 210
Strategies to Lower Costs or Differentiate Products ....... 210
Functional-Level Strategy and Structure ................... 212
Functional-Level Strategy and Culture ..................... 214
Business-Level Strategy ..................................... 215
Strategies to Lower Costs or Differentiate Products ....... 216
Focus Strategy ............................................ 217
Business-Level Strategy and Structure ..................... 217
Business-Level Strategy and Culture ....................... 220
Corporate-Level Strategy .................................... 222
Vertical Integration ...................................... 222
Related Diversification ................................... 223
Unrelated Diversification ................................. 224
Corporate-Level Strategy and Structure .................... 224
Corporate-Level Strategy and Culture ...................... 226
Implementing Strategy Across Countries ...................... 228
Implementing a Multidomestic Strategy ..................... 228
Implementing International Strategy ....................... 230
Implementing Global Strategy .............................. 231
Implementing Transnational Strategy ....................... 231
Summary ..................................................... 232
Discussion Questions ........................................ 233
Organizational Theory in Action ............................. 233
Practicing Organizational Theory: What Kind of
Supermarket? ............................................ 233
The Ethical Dimension #8 .................................. 233
Making the Connection #8 .................................. 233
Analyzing the Organization: Design Module #8 .............. 234
Assignment ................................................ 234
CASE FOR ANALYSIS
Levi Strauss Goes Global .................................. 235
References .................................................. 236
Focus on New Information Technology
Amazon.com, Part 5 ........................................ 217
Managerial Implications
Functional-Level Strategy ................................. 215
Business-Level Strategy ................................... 221
Corporate-Level Strategy .................................. 227
Organizational Insight
Google's Global Ambitions ................................. 212
Kodak Reorganizes Its Photographic Products ............... 220
How Culture Derailed the Merger Between AHP and
Monsanto ................................................ 221
Hitachi Ltd. .............................................. 226
CHAPTER 9 Organizational Design, Competences, and
Technology ......................................... 237
What is Technology? ......................................... 237
Technology and Organizational Effectiveness ................. 239
Technical Complexity: The Theory of Joan Woodward ........... 241
Small-Batch and Unit Technology ........................... 241
Large-Batch and Mass Production Technology ................ 242
Continuous-Process Technology ............................. 243
Technical Complexity and Organizational Structure ......... 244
The Technological Imperative .............................. 246
Routine Tasks and Complex Tasks: The Theory of Charles
Perrow .................................................... 247
Task Variability and Task Analyzability ................... 247
Four Types of Technology .................................. 248
Routine Technology and Organizational Structure ........... 250
Nonroutine Technology and Organizational Structure ........ 251
Task Interdependence: The Theory of James D. Thompson ....... 251
Mediating Technology and Pooled Interdependence ........... 251
Long-Linked Technology and Sequential Interdependence ..... 253
Intensive Technology and Reciprocal Interdependence ....... 255
From Mass Production to Advanced Manufacturing Technology ... 257
Advanced Manufacturing Technology: Innovations in
Materials Technology ...................................... 259
Computer-Aided Design ..................................... 259
Computer-Aided Materials Management ....................... 260
Just-in-Time Inventory Systems ............................ 261
Flexible Manufacturing Technology and
Computer-Integrated Manufacturing ....................... 262
Summary ..................................................... 263
Discussion Questions ........................................ 264
Organizational Theory in Action ............................. 264
Practicing Organizational Theory: Choosing a Technology ... 264
The Ethical Dimension #9 .................................. 265
Making the Connection #9 .................................. 265
Analyzing the Organization: Design Module #9 .............. 265
Assignment ................................................ 265
CASE FOR ANALYSIS
The Shape of Things to Come ............................... 266
References .................................................. 267
Managerial Implications
Analyzing Technology ...................................... 257
Organizational Insight
Progressive Manufacture at Ford ........................... 238
Krispy Kreme's Small-Batch Doughnuts ...................... 243
Microsoft Reorganizes to Speed Innovation ................. 256
Motorola's Factory of the Future .......................... 263
PART III: ORGANIZATIONAL CHANGE ...................... 269
CHAPTER 10 Types and Forms of Organizational Change .......... 269
What Is Organizational Change? .............................. 269
Targets of Change ......................................... 270
Forces for and Resistance to Organizational Change .......... 271
Forces for Change ......................................... 272
Resistances to Change ..................................... 274
Organization-Level Resistance to Change ................... 274
Group-Level Resistance to Change .......................... 275
Individual-Level Resistance to Change ..................... 275
Lewin's Force-Field Theory of Change ...................... 276
Evolutionary and Revolutionary Change in Organizations ...... 277
Developments in Evolutionary Change: Sociotechnical
Systems Theory .......................................... 277
Total Quality Management .................................. 279
Flexible Workers and Flexible Work Teams .................. 280
Developments in Revolutionary Change Reengineering ........ 283
Restructuring ............................................. 286
Innovation ................................................ 287
Managing Change: Action Research ............................ 288
Diagnosing the Organization ............................... 288
Determining the Desired Future State ...................... 289
Implementing Action ....................................... 290
Evaluating the Action ..................................... 291
Institutionalizing Action Research ........................ 291
Organizational Development .................................. 292
OD Techniques to Deal with Resistance to Change ........... 292
OD Techniques to Promote Change ........................... 294
Summary ..................................................... 297
Discussion Questions ........................................ 298
Organizational Theory in Action ............................. 298
Practicing Organizational Theory: Managing Change ......... 298
Making the Connection #10 ................................. 298
The Ethical Dimension #10 ................................. 298
Analyzing the Organization: Design Module #10 ............. 298
Assignment ................................................ 298
CASE FOR ANALYSIS
Sears Changes Again and Again ............................. 299
References .................................................. 300
Managerial Implications
Forces for and Resistances to Change ...................... 277
Designing a Plan for Change ............................... 292
Organizational Insight
Nike, Reebok, Adidas, and the Sweatshops .................. 273
United Technologies Uses TQM .............................. 280
Flexible Work Teams at Globe .............................. 283
How to Stay on Top in the Greeting Card Business .......... 285
CHAPTER 11 Organizational Transformations: Birth, Growth,
Decline, and Death ................................ 302
The Organizational Life Cycle ............................... 302
Organizational Birth ........................................ 303
Developing a Plan for a New Business ...................... 304
A Population Ecology Model of Organizational Birth .......... 307
Number of Births .......................................... 307
Survival Strategies ....................................... 308
The Process of Natural Selection .......................... 309
The Institutional Theory of Organizational Growth ........... 312
Organizational Isomorphism ................................ 312
Disadvantages of Isomorphism .............................. 314
Greiner's Model of Organizational Growth .................... 314
Stage 1: Growth Through Creativity ........................ 315
Stage 2: Growth Through Direction ......................... 315
Stage 3: Growth Through Delegation ........................ 316
Stage 4: Growth Through Coordination ...................... 317
Stage 5: Growth Through Collaboration ..................... 318
Organizational Decline and Death ............................ 319
Effectiveness and Profitability ........................... 319
Organizational Inertia .................................... 321
Changes in the Environment ................................ 323
Weitzel and Jonsson's Model of Organizational Decline ..... 323
Summary ..................................................... 326
Discussion Questions ........................................ 327
Organizational Theory in Action ............................. 327
Practicing Organizational Theory: Growing Pains ........... 327
Making the Connection #11 ................................. 328
The Ethical Dimension #11 ................................. 328
Analyzing the Organization: Design Module #11 ............. 328
Assignment ................................................ 328
CASE FOR ANALYSIS
The Body Shop Reaches Middle Age .......................... 329
References .................................................. 330
Focus on New Information Technology
Amazon.com, Part 6 ........................................ 311
Managerial Implications
Organizational Birth and Growth ........................... 318
Organizational Decline .................................... 326
Organizational Insight
How to Be an Entrepreneur ................................. 306
Carlos Ghosn Shakes Up Nissan ............................. 325
CHAPTER 12 Decision Making, Learning, Knowledge Management,
and Information Technology ........................ 332
Organizational Decision Making .............................. 332
Models of Organizational Decision Making .................... 333
The Rational Model ........................................ 333
The Carnegie Model ........................................ 335
The Incrementatist Model .................................. 336
The Unstructured Model .................................... 338
The Garbage Can Model ..................................... 338
The Nature of Organizational Learning ....................... 340
Types of Organizational Learning .......................... 340
Levels of Organizational Learning ......................... 341
Knowledge Management and Information Technology ............. 344
Factors Affecting Organizational Learning ................... 347
Organizational learning and Cognitive Structures .......... 348
Types of Cognitive Biases ................................. 348
Cognitive Dissonance ...................................... 349
Illusion of Control ....................................... 349
Frequency and Representativeness .......................... 350
Projection and Ego-Defensiveness .......................... 351
Escalation of Commitment .................................. 352
Improving Decision Making and Learning ...................... 352
Strategies for Organizational Learning .................... 353
Utilizing Game Theory ..................................... 354
Nature of the Top Management Team ......................... 355
Persuasive Communication .................................. 357
Devil's Advocacy and Dialectical Inquiry .................. 359
Collateral Organizational Structure ....................... 360
Summary ..................................................... 360
Discussion Questions ........................................ 361
Organizational Theory in Action ............................. 361
Practicing Organizational Theory; Store Learning .......... 361
Making the Connection #12 ................................. 362
The Ethical Dimension #12 ................................. 362
Analyzing the Organization: Design Module #12 ............. 362
Assignment ................................................ 362
CASE FOR ANALYSIS
Encouraging Learning at Baxter International .............. 363
References .................................................. 364
Managerial Implications
Decision Making and Learning .............................. 360
Organizational Insight
Should GE Make or Buy Washing Machines? ................... 337
Microsoft Is Not All-Seeing After All ..................... 339
Accenture's Knowledge Management System ................... 345
Mistakes and More Mistakes at the E-Grocers ............... 351
CHAPTER 13 Innovation, Intrapreneurship, and Creativity ...... 366
Innovation and Technological Change ......................... 366
The Product Life Cycle .................................... 370
Innovation, Intrapreneurship, and Creativity .............. 373
Managing the Innovation Process ............................. 375
Project Management ........................................ 375
Stage-Gate Development Funnel ............................. 378
Using Cross-Functional Teams and a Product Team
Structure ............................................... 379
Team Leadership ........................................... 381
Skunk Works and New Venture Divisions ..................... 381
Joint Ventures ............................................ 383
Creating a Culture for Innovation ......................... 383
Innovation and Information Technology ....................... 385
Innovation and Information Synergies ...................... 386
IT and Organizational Structure and Culture ............... 388
Summary ..................................................... 388
Discussion Questions ........................................ 389
Organizational Theory in Action ............................. 389
Practicing Organizational Theory: Managing Innovation ..... 389
The Ethical Dimension ..................................... 389
Making the Connection #13 ................................. 389
Analyzing the Organization: Design Module #13 ............. 389
Assignment ................................................ 389
CASE FOR ANALYSIS
Too Much Innovation at Lucent ............................. 390
References .................................................. 391
Focus on New Information Technology
Amazon.com, Part 7 ........................................ 387
Managerial Implications
Innovation ................................................ 385
Organizational Insight
The Rolling Stones Are Not Gathering Moss ................. 370
Innovation at The Gap ..................................... 372
Championing the Mustang ................................... 382
Fostering Innovation at 3M ................................ 384
CHAPTER 14 Managing Conflict, Power, and Politics ............ 393
What Is Organizational Conflict? ............................ 393
Pondy's Model of Organizational Conflict .................... 396
Stage 1: Latent Conflict .................................. 396
Stage 2: Perceived Conflict ............................... 399
Stage 3: Felt Conflict .................................... 399
Stage 4: Manifest Conflict ................................ 400
Stage 5: Conflict Aftermath ............................... 400
Managing Conflict: Conflict Resolution Strategies ........... 401
Acting at the Level of Structure .......................... 401
Acting at the Level of Attitudes and Individuals .......... 402
What Is Organizational Power? ............................... 403
Sources of Organizational Power ............................. 404
Authority ................................................. 404
Control over Resources .................................... 406
Control over Information .................................. 406
Nonsubstitutability ....................................... 407
Centrality ................................................ 407
Control over Uncertainty .................................. 408
Unobtrusive Power: Controlling the Premises of Decision
Making .................................................. 408
Using Power: Organizational Politics ........................ 409
Tactics for Playing Politics .............................. 409
The Costs and 'Benefits of Organizational Politics ........ 412
Summary ..................................................... 414
Discussion Questions ........................................ 415
Organizational Theory in Action ............................. 415
Practicing Organizational Theory: Managing Conflict ....... 415
The Ethical Dimension #14 ................................. 415
Making the Connection #14 ................................. 415
Analyzing the Organization: Design Module #14 ............. 415
Assignment ................................................ 415
CASE FOR ANALYSIS
The Shake-Up in GM's Hierarchy ............................ 416
References .................................................. 417
Managerial Implications
Conflict .................................................. 403
Power and Politics ........................................ 414
Organizational Insight
Conflict Causes Slow Change at Kodak ...................... 397
Conflict at Financial Giant Morgan Stanley ................ 400
Power Struggles and Corporate Greed at WorldCom ........... 411
Case Studies .................................................. 419
Case 1 United Products, Inc. ............................... 419
Jeffrey C. Shuman
Case 2 The Paradoxical Twins: Acme and Omega Electronics ... 428
John F. Veiga
Case 3 Continental Can Company of Canada, Ltd. ............. 432
Paul R. Lawrence
Case 4 TRW Systems Group (A and B Condensed) ............... 442
Paul H. Thompson
Case 5 Texana Petroleum Corporation ........................ 456
Jay W. Lorsch, Paul R. Lawrence, and James A. Garrison
Case 6 W. L. Gore & Associates, Inc. ....................... 463
Frank Shipper and Charles C. Manz
Case 7 Three Roads to Innovation ........................... 472
Ronald A. Mitsch
Case 8 The Scaffold Plank Incident ......................... 475
Stewart C. Malone and Brad Brown
Case 9 Beer and Wine Industries: Bartles & Jaymes .......... 477
Per V. Jenster
Case 10 Bennett's Machine Shop, Inc. ........................ 484
Arthur Sharplin
Case 11 Southwest Airlines .................................. 495
Case 12 Pharmacia and Upjohn ................................ 499
Garelh R. Jones
Case 13 Philips NV .......................................... 505
Charles W. L. Hill
Case 14 "Ramrod" Stockwell .................................. 508
Charles Perrow
Case 15 Rondell Data Corporation ............................ 511
John A. Seeger
Company Index ................................................. 518
Name Index .................................................... 520
Subject Index ................................................. 521
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