132974614 OB Text and Cases

ORGANIZATIONAL THEORY TEXT AND CASES

G A R E T H R. J O N E S 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

P A R T I THE ORGANIZATION

CHAPTER 1 ORGAIUIZATIOIUS AIUD O R G A N I Z A T I O N A L STAKEHOLDERS l

CASE MOTOROLA HELPS TO REORGANIZE LOS ALAMOS 2

1.1 What Is an Organization? 4

ORGANIZATIONAL INSIGHT 1.1 A New Kind of Video Store 5

1.2 How Does an Organization Create Value? 6

1.3 Why Do Organizations Exist? 9

1.4 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 The Consequences of Poor Organizational Design 18

1.7 Levels ofAnalysis 19

1.8 Organizational Stakeholders 21

Inside Stakeholders 21

ORGANIZATIONAL INSIGHT 1.2 The Increasing Power of Institutional Investors 22

Outside Stakeholders 24

ORGANIZATIONAL INSIGHT 1.3 Southwest Airlines Services Its Customers 24

VI CONTENTS

ORGANIZATIONAL INSIGHT 1.4 General Motors Versus Its SuppUers 25

ORGANIZATIONAL INSIGHT 1.5 Is the Government too Soft on the Environment 26

1.9 Organizational Effectiveness: Satisfying Stakeholders' Goals and Interests 27

ORGANIZATIONAL INSIGHT 1.6 Keep Your Stakeholders Glued to Your Company 31

Competing Goals 28 Allocating Rewards 29 Effectiveness over Time 30 Managing Stakeholder Interests 30

7.70 How Do Managers Measure Organizational Effectiveness? 32

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? 37 The Organizational Environment 38 The Technological Environment 38 Organizational Processes 40

MAKING THE CONNECTION 40

Summary 40 Discussion Questions 41

ANALYZING THE ORGANIZATION 42

References 44

CHAPTER 2 BASIC CHALLEIUGES OF O R G A N I Z A T I O N A L DESIGN 47

CASE JOHNSON &JOHNSON'SDECENTRAUZED APPROACH 48

2.1 Differentiation 49

ORGANIZATIONAL INSIGHT 2.1 The B.A.R. and Grille Restaurant 50

Organizational Roles 52

Subunits: Functions and Divisions 53

Differentiation at the B.A.R. and Grille 54

C O N T E N T S

Vertical and Horizontal Differentiation 55

Organizational Design Challenges 56

MANAGERIALIMPLICATIONS Differentiation 57

2.2 Balancing Differentiation and Integration 57

ORGANIZATIONAL INSIGHT 2.2 Communication Problems at IBM 58

Integration and Integrating Mechanisms 58

ORGANIZATIONAL INSIGHT 2.3 Integration at Amgen 62

Differentiation Versus Integration 63

2.3 Balancing Centralization and Decentralization 64

Centralization Versus Decentralization of Authority 65

ORGANIZATIONAL INSIGHT 2.4 The "Health" Hazards of Decentralization 66

2.4 Balancing Standardization and Mutual Adjustment 68

Formalization: Written Rules 69

ORGANIZATIONAL INSIGHT 2.5 Innovative Control at Microsoft 69

Specialization: Understood Norms 70

Standardization Versus Mutual Adjustment 71

2.5 Coordinating the Formal and In formal Organizations 73

ORGANIZATIONAL INSIGHT 2.6 Wildcat Strikes in the Gypsum Plant

Status and Power 76

MANAGERIAL IMPLICATIONS The Design Challenges 76

2.6 Mechanistic and Organic Organizational Structures 77

Mechanistic Structures 77 Organic Structures 78

ORGANIZATIONAL INSIGHT 2.7 Sony's Magic Touch 79

The Contingency Approach to Organizational Design 81

ORGANIZATIONAL INSIGHT 2.8 Wal-Mart 's Race to the Top 81


Sumrnary 83 Discussion Questions 84


References 85

DESIGNING ORGANIZATIONAL STRUCTURE: AUTHORITY AND CONTROL 87

CASE THE SHAKEUP IN GM'S HIERARCHY 88

3.1 Top Managers and Organizational Authority 89

The Chief Executive Officer 91 The Top-Management Team 92 Other Managers 93

3.2 Authority: How and Why Vertical Differentiation Occurs 96

The Emergence of the Hierarchy 96 Size and Height Limitations 97 Problems with Tall Hierarchies 99

ORGANIZATIONAL INSIGHT 3.1 The Shakeup atDu Pont 100

ORGANIZATIONAL INSIGHT 3.2 Promotion Tournaments at IBM 101

ORGANIZATIONAL INSIGHT 3.3 Big Changes at the Post Office 102

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

3.3 Control: Factors Affecting the Shape of the Hierarchy 107

Horizontal Differentiation 107

ORGANIZATIONAL INSIGHT 3.4 Microsoffs Team Structure 108

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 Authority and Control 112

3.4 The Principles of Bureaucratic Structure 112

ORGANIZATIONAL INSIGHT 3.6 Top-Management Team Dynamics at Chrysler 114

ORGANIZATIONAL INSIGHT 3.7 "Personal Computers Are Just Toys" 116

CONTENTS IX

ORGANIZATIONAL INSIGHT 3.8 Crew G's Rules of Conduct 118

3.5 The Advantages of Bureaucratic Structure 119

MANAGERIALIMPLICATIONS Using Bureaucracy to Benefit the Organization 120


Summary 121

Discussion Questions 122


References 124

CHAPTER 4 DESIGNING ORGANIZATIONAL STRUCTURE: SPECIALIZATION AND COORDINATION 125

CASE A NEW CATERPILLAR EMERGES 126

4.1 Functional Structure 128

ORGANIZATIONAL INSIGHT 4.1 DevelopingBlockbuster Videos Functional Structure 129

Advantages of a Functional Structure 130

Control Problems in a Functional Structure 131

MANAGERIAL IMPLICATIONS Functional Structure 132

4.2 From Functional Structure to Divisional Structure 133

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 Chrysler's New Team Structure 149

Summary 150

X C O N T E N T S

4.4 Divisional Structure II: Geographie Structure 150

ORGANIZATIONAL INSIGHT 4.4 Lennox Makes a U-Turn 152

4.5 Divisional Structure III: Market Structure 152

ORGANIZATIONAL INSIGHT 4.5 Tailoring Structure to Customers 153

MANAGERIAL IMPLICATIONS Changing Organizational Structure 154

4.6 Matrix Structure 154

MANAGERIAL IMPLICATIONS Changing Organizational Structure 154

Advantages of a Matrix Structure 156

Disadvantages of a Matrix Structure 157

ORGANIZATIONAL INSIGHT 4.6 DECs Problems with Its Matrix 158

The Multidivisional Matrix Structure 159

4.7 Characteristics ofthe Top-Management Team 160




References 164

CHARTER 5 MANAGIIWG ORGANIZATIOIMAL CULTURE A N D ETHICS 165

CASE BIG BLUE'S BIG PROBLEMS 166

5.1 What Is Organizational Culture 168

ORGANIZATIONAL INSIGHT 5.1 A Tale ofTwo Cultures 171

5.2 How Is an Organization's Culture Transmitted to Its Members? 172

Socialization and Socialization Tactics 172 Stories, Ceremonies, and Organizational Language 176

ORGANIZATIONAL INSIGHT 5.2 Triad Systems Builds a Culture Based onSuccess 176

MANAGERIAL IMPLICATIONS Analyzing Organizational Culture 178

5.3 Where Does Organizational Culture Come From? 178

CONTENTS XI

Characteristics of People Within the Organization 179

ORGANIZATIONAL INSIGHT 5.3 A Change at the Top in Disney 180

Organizational Ethics 181

ORGANIZATIONAL INSIGHT 5.4 Apple Juice or Sugar Water? 183

Property Rights 184

ORGANIZATIONAL INSIGHT 5.5 A Clash ofTwo Cultures 186

ORGANIZATIONAL INSIGHT 5.6 Bimba Changes Its Property Rights System 188

Organizational Structure 189

ORGANIZATIONAL INSIGHT 5.7 All change at Union Pacific 190

5.4 Can Organizational Culture Be Managed? 191

MANAGERIAL IMPLICATIONS Designing Organizational Culture 193

5.5 The Advantagesof Ethical Behavior 193

5.6 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 198

The Narrow Stance 198 The Broad Stance 198

ORGANIZATIONAL INSIGHT 5.9 Ben & Jerrys Ethical Culture 199

5.8 Creating an Ethical Organization 201

Designing an Ethical Structure and Control System 201 Creating an Ethical Culture 202

ORGANIZATIONAL INSIGHT 5.10 Dow Comings Ethics System 202

Supporting the Interests of Stakeholder Groups 203


Summary 204



References 206

XÜ CONTENTS

PART ii THE ORGANIZATIONAL ENVIRONMENT

CHAPTER O MANAGING THE ORGANIZATIONAL ENVIRONMENT 209

CASE HOW FORD MANAGES ITS ENVIRONMENT 210

6.1 What Is the Organizational Environment? 212

The Specific Environment 213

The General Environment 214

Sources of Uncertainty in the Organizational Environment 215

MANAGERIALIMPLICATIONS Analyzing the Environment 217

6.2 ContingencyTheory 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

ORGANIZATIONAL INSIGHT 6.2 Mighty Microsoft 226

6.4 Interorganizational Strategies for Managing Resource Dependencies 227

6.5 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 Competitive Alliances in Telecommunications 238

CONTENTS XIII

Merger and Takeover 240

MANAGERIAL IMPLICATIONS Resource Dependence Theory 240

ORGANIZATIONAL INSIGHT 6.4 Lighting Up the Utilities 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

ORGANIZATIONAL INSIGHT 6.5 Ekco and Its Suppliers 246


Summary 249 Discussion Questions 251 ANALYZING THE ORGANIZATION 251

References 252

O R G A N I Z A T I O N A L S T R A T E G Y A N D STRUCTURE 255

CASE GILLETTE FORGESAHEAD 256

7.1 What Is Organizational Strategy? 257

Sources ofCore Competences 258 Three Levels of Strategy 260

7.2 Functional-Level Strategy 262

Strategies to Lower Costs or Differentiate Products 263 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

Strategies to Lower Cost or Differentiate Products 270

ORGANIZATIONAL INSIGHT 7.1 How to Compete in the PC Market 272

Strategies to Enlarge the Organizational Domain 273

XIV 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 Delta's Culture Flies Away 282

MANAGERIALIMPLICATIONS 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 Hughes Aircraft Fails to Lift Off 293

MANAGERIAL IMPLICATIONS Corporate-Level Strategy 294


Summary 296



References 298

CHAPTER 8 MANAGING THE INTERNATIONAL ENVIRONMENT 301

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

CONTENTS 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 311

ORGANIZATIONAL INSIGHT 8.1 Xerox Learns from the Japanese 312

8.3 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 314

Multidomestic Strategy 314 International Strategy 316 Global Strategy 317

ORGANIZATIONAL INSIGHT 8.2 Arvin Industries Goes Global 318

Transnational Strategy 319

ORGANIZATIONAL INSIGHT 8.3 Procter & Gamble s Transnational Strategy 320

MANAGERIALIMPLICATIONS Global Expansion Strategy 321

8.5 Global Expansion Strategy, Organizational Structure, and Organizational Culture 322

Vertical Differentiation in the International Environment 322 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 Matching Global Strategy and Structure 334

8.6 International Strategie Alliances 335

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

XVI CONTENTS

ORGANIZATIONALINSIGHT 8.6 AT&T's Network 337

MAKING THE CONNECTION 341 Summary 341 Discussion Questions 342


References 343

PART in THE TECHNOLOGICAL ENVIRONMENT

CHAPTER S7 O R G A N I Z A T I O N A L DESIGN A N D TECHNOLOGY 345

CASE PROGRESSIVE MANUFACTURE AT FORD 346

9.1 What Is Technology? 348

9.2 Technology and Organizational Effectiveness 348

9.3 Technical Complexity: The Theory ofJoan Woodward 350

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 The San Diego Zoo Changes Its Stripes 364

9.5 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 USAA: Improving The Delivery oflntangible Services 370

CONTENTS XVII

Intensive Technology and Reciprocal Interdependence 371

ORGANIZATIONAL INSIGHT 9.4 A New Approach at Hewlett-Packard 372

MANAGERIALIMPLICATIONS Analyzing Technology 374


Summary 374



References 377

MANAGING THE NEW TECHNOLOGICAL ENVIRONMENT 379

CASE TOYOTA'S FLEXIBLE PRODUCTION SYSTEM 380

70.7 From Mass Production to Advanced Manufacturing Technology 382

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 Motorolas Factory ofthe Future 389

70.3 Advanced Manufacturing Technology: Innovations in Knowledge Technology 391

Flexible Workers 392

Flexible Work Teams 392

ORGANIZATIONAL INSIGHT 10.2 Flexible Work Teams at Globe

ORGANIZATIONAL INSIGHT 10.3 GM and Toyota Give Plant a New Lease on Life 395

70.4 Managing Advanced Manufacturing Technology 396

Total Quality Management 397

XVIII CONTENTS

ORGANIZATIONAL INSIGHT 10.4 Xerox and Trident Tool: The Search for Quality 398

Organizational Structure and Advanced Manufacturing Technology 400 Advanced Manufacturing Technology and Organizational Culture 401

MANAGERIALIMPLICATIONS Advanced Manufacturing Technology 402

70.5 Computer-Integrated Information Systems 402

70.6 Managing Innovation in High-Tech Organizations 405

The Nature of Technological Innovation 405 Managing High-Tech Organizations 406

ORGANIZATIONAL INSIGHT 10.5 Championing the Mustang 408

Creating a Culture for Innovation 410

MANAGERIAL IMPLICATIONS Innovation 412


Summary 413



References 415

PART iv MANAGING ORGANIZATIONAL PROCESSES

CHAPTER 1 7 ORGANIZATIONAL BIRTH, GROWTH, DECLINE, AND DEATH 417

CASE DELL COMPUTER FACES A CRISIS 418

77.7 The Organizational Life Cycle 419

77.2 Organizational Birth 420

77.3 A Population Ecology Model of Organizational Birth 422

NumberofBirths 423 Survival Strategies 424

CONTENTS XIX

The Process of Natural Selection 426

ORGANIZATIONAL INSIGHT 11.1 A Shakeup in Securities 427

ORGANIZATIONAL INSIGHT 11.2 Are Network Affiliates an Endangered Species? 428

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 Growth 433

Stage 1: Growth Through Creativity 434

ORGANIZATIONAL INSIGHT 11.4 The Crisis ofLeadership at Apple Computer 435

Stage 2: Growth Through Direction 436 Stage 3: Growth Through Delegation 437 Stage 4: Growth Through Coordination 438 Stage 5: Growth Through Collaboration 439

MANAGERIALIMPLICATIONS Organizational Birth and Growth 439

11.6 Organizational Decline 440

Organizational Inertia 441 Changes in the Environment 443 Weitzel and Jonsson's Model of Organizational Decline 443

ORGANIZATIONAL INSIGHT 11.5 General Dynamics Goesfrom Weakness to Strength 445

ORGANIZATIONAL INSIGHT 11.6 Borden Bites Back 446

The Role of the Founder 448

ORGANIZATIONAL INSIGHT 11.7 No Exitfrom Petrie Stores 448

MANAGERIAL IMPLICATIONS Organizational Decline 449


Summary 449



References 452

XX CONTENTS

CHAPTER 12 DECISION MAKING, LEARNING, AND ORGANIZATIONAL CHANGE 455

CASE TIME FOR CHANGE AT LEXMARK INTERNATIONAL 456

12.1 Organizational Decision Making 458

72.2 Models of Organizational Decision Making 459

The Rational Model 459 The Carnegie Model 461

ORGANIZATIONAL INSIGHT 12.1 Should GE Make or Buy Washing Machines? 463

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 Nissans Top-Heavy Management Style 471

ORGANIZATIONAL INSIGHT 12.3 Gitano Jeans Falls Down 473

12.4 Improving Decision Making and Learning 475

Strategies for Organizational Learning 475

Changing the Composition of the Top-Management Team 477 Devil's Advocacy and Dialectical Inquiry 478

Collateral Organizational Structure 479 Summary 479

MANAGERIAL IMPLICATIONS Decision Making and Learning 480

72.5 Organizational Change and Restructuring 480

72.6 A Model of Organizational Change 483

Determining the Need for Change 483 Identifying Obstacles to Change 485 Determining the Strategy for Change 487

ORGANIZATIONAL INSIGHT 12.4 Jack Welch's Approach to Change 488

MANAGERIAL IMPLICATIONS Organizational Change 490

CONTENTS XXI




References 493

CHAPTER 13 ORGANIZATIONAL CONFLICT, P O W E R , A N D POLIT ICS 497

CASE THE COUP AT TIME WARNER 498

13.1 What Is Organizational Conflict? 499

73.2 Pondy's Model of Organizational Conflict 502

Stage 1: Latent Conflict 503

ORGANIZATIONAL INSIGHT 13.1 Conflict Causes Slow Change at Kodak 504

ORGANIZATIONAL INSIGHT 13.2 The President Versus the Coach 505

ORGANIZATIONAL INSIGHT 13.3 How Rewards Produced Conflict at CS First Boston 506

Stage 2: Perceived Conflict 507 Stage 3: Feit Conflict 507 Stage 4: Manifest Conflict 508

ORGANIZATIONAL INSIGHT 13.4 Breakup at Giorgio 508

Stage 5: Conflict Aftermath 509

73.3 Managing Conflict: Conflict Resolution Strategies 509

Acting at the Level ofStructure 510

Acting at the Level of Attitudes and Individuais 511

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

XXII CONTENTS

Nonsubstitutability 517

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

Making 518

13.6 Using Power: Organizational Politics 519 Tactics for Playing Politics 520

The Costs and Benefits of Organizational Politics 523

ORGANIZATIONAL INSIGHT 13.5 Life at the Top 525

MANAGERIAL IMPLICATIONS Power and Politics 526


Summary 526 Discussion Questions 527 ANALYZING THE ORGANIZATION 528

References 528

PARTV CASES IN ORGANIZATIONAL THEORY

CASES Organizational Structure

Case 1 United Products, Inc. Jeffrey C. Shuman, Bentley College 533

Case 2 The Paradoxical Twins: Acme and Omega Electronics John F. Veiga, University of Connecticut 543

Case 3 Continental Can Company of Canada, Ltd. Paul R. Lawrence, Harvard University 547

Case 4 TRW Systems Group (A and B Condensed) Paul H. Thompson, Harvard University 558

Case 5 Texana Petroleum Corporation Jay W. Lorsch, Paul R. Lawrence, and J.A. Garrison, Harvard University 574

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 Three Roads to Innovation 592 Ronald A. Mitsch

Case 8 Welch on Welch Stephen W. Quickel 595

Environment, Strategy, and Structure

Case 9 Beer and Wine Industries: Bartles & Jaymes Per V. Jenster, I.M.D., Lausanne, Switzerland 600

Case 10 Bennett's Machine Shop, Inc. Arthur Sharplin, McNeese State University 607

Case 11 The Upjohn Company Douglas D. Moesei, Lehigh University, and Gareth R. Jones, Texas A&M University 620

Case 12 BCI Holdings Corporation (Formerly Beatrice Companies Inc.) Gareth R. Jones, Texas A&M University 630

International Strategy and Structure

Case 13 Philips, N.V. Charles W.L. Hill, University ofWashington 644

Case 14 Club Mediterranee Jacques Horovitz, IMEDE 647

Technology, Innovation, and Structure

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

Case 16 Medical Equipment (A) Robert Burgelman and T.J. Kosnik, Stanford University 671

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 680

Case 18 "Ramrod" Stockwell Charles Perrow, Yale University 682

Case 19 Rondell Data Corporation

John A. Seeger, Bentley College 686

Company Index 695

Subject Index 698

132974614 OB Text and Cases

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