Strategic organizational diagnosis and design : developing theory for application

Strategic organizational design begins with the existing organization and its situation to diagnose and assess what should be done to have a more efficient and effective organization. The theoretical model is a dynamic multiple contingency theory of organization which provides the basic knowledge for the Organizational Consultant - a knowledge base expert system which has been validated with business executives.

Preface	p. xv
1. Introduction	p. 1
1.1 Introduction	p. 1
1.2 What is an Organization?	p. 2
1.3 An Information Processing View of Organizations	p. 4
1.3.1 Neo-information Processing as a Basis for Organizational Design	p. 7
1.4 Strategic Organizational Design	p. 9
1.5 The Basic Features	p. 11
1.5.1 Fit Criteria for Designing the Knowledge Base	p. 15
1.5.1.1 Contingency Fit	p. 16
1.5.1.2 Situation Fit	p. 17
1.5.1.3 Design Parameter Fit	p. 17
1.5.1.4 Total Design Fit	p. 18
1.6 Creating a Knowledge Base from the Literature	p. 19
1.6.1 Composing the Knowledge Base	p. 24
1.7 The Organizational Consultant for Designing an Organization	p. 31
1.8 Validating Theory for Application	p. 32
1.8.1 The Foundation Expert System	p. 34
1.8.2 Validation and Continued Model Development	p. 35
1.8.3 A Process of Validation	p. 36
1.9. Summary	p. 37
2. Describing the Organization for Design Purposes	p. 41
2.1 Introduction	p. 41
2.1.1 The Scandinavian Airline System (SAS)	p. 42
2.2 Organizational Configurations	p. 45
2.2.1 Simple Configuration	p. 46
2.2.2 Functional Configuration	p. 48
2.2.2.1 A Functional Organization	p. 49
2.2.3 Divisional Configuration	p. 53
2.2.3.1 A Divisional Organization	p. 55
2.2.4 Matrix Configuration	p. 59
2.2.4.1 A Matrix Organization	p. 61
2.2.5 Ad Hoc Configuration	p. 64
2.2.6 Bureaucracies	p. 65
2.2.7 International Configurations	p. 66
2.3 Organizational Complexity	p. 68
2.3.1 Horizontal Differentiation	p. 69
2.3.2 Vertical Differentiation	p. 71
2.3.3 Spatial Differentiation	p. 72
2.4 Formalization	p. 73
2.5 Centralization	p. 75
2.6 Coordination and Control	p. 76
2.7 The Organizational Structure of SAS	p. 77
2.8 Summary	p. 80
3. Management and Leadership Style	p. 83
3.1 Introduction	p. 83
3.1.1 Management and Structure	p. 84
3.2 Literature Review	p. 86
3.3 Management and Leadership Style as a Contingency	p. 92
3.3.1 Definition of Management and Leadership Style: Microinvolvement	p. 92
3.3.2 Management and Leadership Style as a Contingency Factor	p. 99
3.4 Managing the Management	p. 104
3.5 SAS: The Management Style of Carlzon and Stenberg	p. 105
3.6 Summary	p. 108
4. Organizational Climate	p. 111
4.1 Introduction	p. 111
4.2 Climate and Culture	p. 112
4.3 Literature Review on Climate	p. 117
4.5 Measuring and Categorizing Climate	p. 120
4.6 Climate as a Contingency	p. 124
4.6.1 Describing a Group Climate	p. 125
4.6.2 The Group Climate Effects on Structure	p. 126
4.6.3 Describing the Developmental Climate	p. 128
4.6.4 Developmental Climate Effect on Structure	p. 130
4.6.5 Describing the Internal Process Climate	p. 131
4.6.6 Internal Process Climate Effects on Structure	p. 133
4.6.7 Describing the Rational Goal Climate	p. 134
4.6.8 Rational Goal Climate Effects on Structure	p. 136
4.7 Managing the Climate	p. 137
4.8 The Climate at SAS	p. 138
4.9 Summary	p. 140
5. Size and Skill Capabilities	p. 145
5.1 Introduction	p. 145
5.2 A Literature Review	p. 146
5.2.1 Size: A Variety of Perceptions	p. 146
5.2.2 The Measurement of Size	p. 147
5.2.3 Size as Imperative	p. 148
5.2.4 An Information-Processing Perspective on Size	p. 149
5.3 The Effects of Size and Skill Capability on Organizational Structure	p. 151
5.3.1 Measuring Size and Skill Capability for Design Purposes	p. 151
5.3.2 Size as a Contingency	p. 154
5.3.2.1 Size Effects on Complexity	p. 155
5.3.2.2 Size Effects on Centralization	p. 156
5.3.2.3 Size Effects on Formalization	p. 157
5.3.2.4 Size Effects on Configuration	p. 158
5.4 Managing Size	p. 160
5.5 The Size of SAS	p. 161
5.6 Summary	p. 162
6. The Environment	p. 165
6.1 Introduction	p. 165
6.2 Background and the Literature	p. 167
6.2.1 Measures of the Environment	p. 167
6.2.2 The Environment-Structure Relationship	p. 171
6.3 Describing the Environment: Equivocality, Uncertainty, Complexity, and Hostility	p. 174
6.4 Environment as a Contingency Factor	p. 180
6.5 Environmental Effects on Configuration, Coordination, Media Richness, and Incentives	p. 190
6.6 Operationalizations of the Environmental Measures	p. 200
6.7 Managing the Environment	p. 202
6.8 The SAS Environment	p. 204
6.9 Summary	p. 207
7. Technology	p. 211
7.1 Introduction	p. 211
7.2 A Literature Review	p. 212
7.3 Technology as a Contingency	p. 220
7.3.1 Measuring Technology	p. 220
7.3.2 Technology as Contingency Factor	p. 224
7.3.2.1 Technology Effects on Formalization	p. 225
7.3.2.2 Technology Effects on Centralization	p. 226
7.3.2.3 Technology effects on Organizational Complexity	p. 227
7.3.2.4 Technology Effects on Configuration	p. 229
7.3.2.5 Technology Effects on Coordination and Control Mechanisms	p. 232
7.4 Managing Technology	p. 234
7.5 The Technology of SAS	p. 236
7.6 Summary	p. 238
8. Strategy	p. 241
8.1 Introduction	p. 241
8.2 A Literature Review	p. 241
8.2.1 Structure Follows Strategy	p. 241
8.2.2 The Counter Proposition: Strategy Follows Structure	p. 243
8.2.3 Fit: Strategy and Structure	p. 245
8.3 Definition of Strategy	p. 248
8.4 The Two-Stage Model: Description, Strategy, Structure	p. 254
8.5 The Propositions for Strategy Description	p. 255
8.5.1 Describing a Prospector	p. 257
8.5.2 Prospector Effects on Structure	p. 259
8.5.3 Describing an Analyzer Without Innovation	p. 260
8.5.4 Analyzer Without Innovation Effects on Structure	p. 262
8.5.5 Describing Analyzer with Innovation	p. 263
8.5.6 Analyzer with Innovation Effects on Structure	p. 265
8.5.7 Describing a Defender	p. 266
8.5.8 Defender Effects on Structure	p. 267
8.5.9 Reactor Strategy	p. 269
8.6 International Dimensions	p. 270
8.7 Choosing the Right Strategy	p. 271
8.8 The Strategy of SAS	p. 272
8.9 Summary	p. 276
9. Organizational Design: A Synthesis	p. 281
9.1 Introduction	p. 281
9.2 Diagnosis and Design	p. 282
9.3 Contingency Fit	p. 286
9.3.1 The Simple Configuration	p. 286
9.3.2 The Functional Configuration	p. 288
9.3.3 Divisional Configuration	p. 290
9.3.4 Matrix Configuration	p. 291
9.3.5 Ad Hoc Configuration	p. 292
9.3.6 The Professional Bureaucracy	p. 294
9.3.7 The Machine Bureaucracy	p. 295
9.3.8 Organizational Complexity	p. 296
9.3.9 Formalization	p. 299
9.3.10 Centralization	p. 303
9.3.11 Coordination and Control	p. 307
9.3.12 Media Richness and Incentives	p. 308
9.4 Situation Fits and Misfits	p. 308
9.5 Design Parameter Fit	p. 319
9.6 Total Design Fit	p. 320
9.7 Designing the Organization	p. 325
9.7.1 Design is Lifecycle Management: Evolution and Revolution	p. 327
9.7.2 Design is Exploration and Exploitation	p. 332
9.7.3 Design is Learning	p. 335
9.8 SAS	p. 338
9.9 SAS and the Lifecycle	p. 341
9.10 Summary	p. 342
10. Using the Organizational Consultant	p. 347
10.1 Introduction	p. 347
10.2 Practical Organizational Diagnosis and Design	p. 349
10.3 Alignment of the Understanding of the Organization's Situation	p. 351
10.4 What Can We Learn By Doing?	p. 351
10.5 Cases	p. 354
10.6 Organizational Consultant Setup	p. 355
11. Using Publicly-Available Information for Strategic Organizational Diagnosis and Design	p. 357
11.1 Introduction	p. 357
11.2 Data Sources, Collection and Analysis	p. 357
11.2.1 Description of Data Sources	p. 357
11.2.2 Content Analysis Approach	p. 360
11.3 Company Profile	p. 362
11.4 Discussion of Answers to OrgCon Questions	p. 364
11.4.1 Environment	p. 364
11.4.2 Strategy	p. 366
11.4.3 Technology	p. 370
11.4.4 Product Diversity	p. 373
11.4.5 Climate	p. 375
11.4.6 Management Preferences	p. 377
11.4.7 Size	p. 379
11.4.8 Age and Ownership	p. 380
11.4.9 Current Configuration	p. 380
11.4.10 Current Complexity	p. 380
11.4.11 Current Formalization	p. 383
11.4.12 Current Centralization	p. 385
11.5 Total Organizational Analysis	p. 386
11.5.1 Size	p. 386
11.5.2 Climate	p. 386
11.5.3 Management Style	p. 387
11.5.4 Strategy	p. 388
11.5.5 Current Organizational Characteristics	p. 388
11.5.6 Situation Misfits	p. 389
11.5.7 Organizational Consultant Recommendations	p. 389
11.5.8 Organizational Configurations	p. 389
11.5.9 Organizational Characteristics	p. 390
11.5.10 Organizational Misfits	p. 392
11.5.11 More Detailed Recommendations	p. 392
11.6 Detailed Discussion of Organizational and Situational Misfits	p. 392
12. Oticon	p. 399
12.1 Introduction	p. 399
12.2 Case 1: The Top Management Group That Got Fired ... by Itself	p. 399
12.2.1 The Demant Era	p. 400
12.2.2 Growth and Expansion in The Seventies	p. 401
12.2.3 Technology Changes in the Eighties	p. 402
12.2.4 The Difference Between Behind The Ear and In The Ear Aids	p. 403
12.2.5 External Influences Leading to Internal Weaknesses	p. 404
12.2.6 Need for Changes	p. 406
12.2.7 One Must Take the Good with the Bad	p. 407
12.2.8 Kolind's Style	p. 407
12.2.9 Reductions, Cut Backs and the New Oticon	p. 409
12.2.10 Questions for Consideration	p. 409
12.3 Case 2: The Spaghetti That Became Revolutionary	p. 410
12.3.1 What Made Kolind Think of Spaghetti?	p. 410
12.3.2 Holly, Ivy and Unthinkable Thoughts	p. 411
12.3.3 Realizing the Unthinkable	p. 412
12.3.4 Implementation of the Undefinable	p. 413
12.3.5 The Physical and Psychic Influences	p. 414
12.3.6 The Computer Network and the Paperless Office	p. 415
12.3.7 Spaghetti Sometimes Gets Sticky	p. 416
12.3.8 Spaghetti in Action	p. 417
12.3.9 Questions for Consideration	p. 418
12.4 Case 3: What Happens if the Spaghetti Gets Cold?	p. 419
12.4.1 Kolind's Management Style	p. 419
12.4.2 How to Get Value for Values	p. 420
12.4.3 Interaction and Integration	p. 421
12.4.4 Thisted's Role in the Spaghetti	p. 422
12.4.5 Spaghetti for All Nationalities	p. 423
12.4.6 How to Become Part of the Spaghetti	p. 424
12.4.7 More Control than Meets the Eye	p. 425
12.4.8 The Transparent Office	p. 426
12.4.9 Authority Versus Group Mentality	p. 427
12.4.10 Enthusiastic Salaries	p. 427
12.4.11 It Takes More than Success to Prevent Failure	p. 428
12.4.12 Questions for Consideration	p. 429
12.5 Case 4: Scouts are More Attractive	p. 430
12.5.1 Questions for Consideration	p. 432
Appendix 1	p. 433
Appendix 2	p. 434
Appendix 3	p. 435
13. Sample Cases and Exercises	p. 439
13.1 Introduction	p. 439
13.2 ABB Electromechanical Meters	p. 440
13.2.1 Background	p. 440
13.2.2 The Electromechanical Meter Organization	p. 441
13.2.3 Manufacturing	p. 442
13.2.4 Design Engineering	p. 443
13.2.5 Marketing	p. 443
13.2.6 Intergroup Communications	p. 443
13.2.7 Managerial Responsibilities	p. 444
13.2.8 Questions for Consideration	p. 444
13.3 Duke University Press	p. 445
13.3.1 Organizational Description	p. 445
13.3.2 Questions for Consideration	p. 449
13.4 GTE Government Systems Mobile Subscriber Equipment Division	p. 449
13.4.1 Background and Issues	p. 449
13.4.2 Analysis	p. 451
13.4.3 Questions for Consideration	p. 452
13.5 Bluestone Group, Inc.	p. 452
13.5.1 Background	p. 453
13.5.2 Part I	p. 455
13.5.2.1 Current Organization	p. 455
13.5.3 Part II	p. 456
13.5.3.1 Goals and Objectives of the Dominant Coalition	p. 457
13.5.3.2 Environment	p. 457
13.5.3.3 Work-flow and Technologies Used	p. 458
13.5.3.4 Existing Organizational structure	p. 459
13.5.4 Questions for Consideration	p. 460
Subject Index	p. 463

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