INSEAD Library

Includes bibliographical references and index

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Strategic Organizational Diagnosis and Design Developing Theory for Application Table of Contents Preface .................................................................................................. xiii PART 1 ................................................................................................................... 1 1. Introduction................................................................................................... 3 1.1 Introduction ................................................................................ 3 1.2 The Strategic Organizational Design ............................................. 4 1.3 The Basic Features ...................................................................... 6 1.3.1 Fit Criteria for Designing the Knowledge Base ............ 9 1.4 Creating a Knowledge Base from the Literature ......................... 12 1.4.1 Composing the Knowledge Base ................................. 18 1.5 The Organizational Consultant for Designing an Organization 25 1.6 Validating Theory for Application ................................................ 26 1.6.1 The Foundation Expert System ................................. 28 1.6.2 Validation and Continued Model Development ........ 29 1.6.3 A Process of Validation ................................................ 30 1.7 Summary .................................................................................. 31 2. Describing the Organization for Design Purposes . . . ........ 37 2.1 Introduction .............................................................................. 2.1.1 The Scandinavian Airline System (SAS) .................... 2.2 What Is an Organization? .......................................................... 2.3 An Information Processing View of Organizations ..................... 2.4 Organizational Configurations ................................................... 2.4.1 Simple Configuration .................................................. 2.4.2 Functional Configuration ........................................... 2.4.3 Divisional Configuration ............................................. 2.4.4 Matrix Configuration .................................................. 2.4.5 Ad Hoc Configuration .................................................. 2.4.6 Bureaucracies ........................................................... 2.4.7 International Configurations ..................................... 2.5 Organizational Complexity .......................................................... 2.5.1 Horizontal Differentiation ........................................... 2.5.2 Vertical Differentiation ................................................ 2.5.3 Spatial Differentiation ................................................ 2.6 Formalization .............................................................................. 2.7 Centralization ............................................................................. 37 37 42 45 48 49 51 56 61 65 66 67 70 70 72 73 74 75 viii Table of Contents 2.8 Coordination and Control ........................................................... 77 2.9 The Organizational Structure of SAS .......................................... 78 2.10 Summary ................................................................................. 83 3. Management Style.................................................................................... 87 3.1 Introduction .............................................................................. 87 3.2 Literature Review .......................................................................... 90 3.3 Management Style as a Contingency .......................................... 96 3.3.1 Definition of Management Style: Microinvolvement .. 96 3.3.2 Management Style as a Contingency Factor ........... 104 3.4 Managing the Management ....................................................... 109 3.5 The Management Style of Carizon ............................................. 110 3.6 Summary ................................................................................. 114 4. Size ................................................................................................................ 119 4.1 Introduction ............................................................................ 4.2 A Literature Review ..................................................................... 4.2.1 Size: A Variety of Perceptions ................................... 4.2.2 The Measurement of Size ......................................... 4.2.3 Size as Imperative .................................................... 4.2.4 An Information Processing Perspective on Size . . . 4.3 The Effects of Size on the Organization Structure ................... 4.3.1 Measuring Size for Design Purposes ....................... 4.3.2 Size as a Contingency .............................................. 4.4 Managing Size ............................................................................ 4.5 The Size of SAS ............................................................................ 4.6 Summary ................................................................................. 119 120 120 121 122 122 123 123 126 132 133 137 5. The Environment.................................................................................... 143 5.1 Introduction ............................................................................ 5.2 Background and the Literature ............................................... 5.2.1 Measures of the Environment.................................. 5.2.2 Environment-Structure Relationship ..................... 5.3 Describing the Environment: Equivocality, Uncertainty and Complexity.................................................... 5.4 Environment as a Contingency Factor ..................................... 5.5 Environmental Effects on Configuration, Coordination, Media Richness and Incentives .............................................. 5.6 Operationalizations of the Environmental Measures ............... 5.7 Managing the Environment ...................................................... 5.8 SAS Environment ...................................................................... 5.9 Summary ................................................................................. 143 145 145 149 152 156 165 174 175 178 180 Table of Contents ix 6. Technology................................................................................................ 185 6.1 Introduction ............................................................................ 6.2 A Literature Review ..................................................................... 6.3 Technology as a Contingency ................................................... 6.3.1 Measuring Technology .............................................. 6.3.2 Technology as Contingency Factor .......................... 6.4 Managing Technology................................................................. 6.5 The Technology of SAS................................................................. 6.6 Summary ................................................................................ 185 186 194 194 198 206 208 212 7. Strategy ...................................................................................................... 215 7.1 Introduction ............................................................................ 215 7.2 A Literature Review ..................................................................... 215 7.3 Strategy as a Contingency ....................................................... 219 7.3.1 Definition of Strategy ................................................ 219 7.4 The Two Level Model: Description, Strategy, Structure . . . ..... 225 7.5 The Propositions for Strategy Description and Misfits ............. 226 7.5.1 Describing a Prospector ........................................... 228 7.5.2 Prospector Effects on Structure .............................. 230 7.5.3 Prospector Propositions on Misfits .......................... 231 7.5.4 Describing an Analyzer without Innovation ............ 232 7.5.5 Analyzer without Innovation Effects on Structure .. 234 7.5.6 Analyzer without Innovation Propositions on Misfits 235 7.5.7 Describing Analyzer with Innovation ....................... 236 7.5.8 Analyzer with Innovation Effects on Structure . . . . 238 7.5.9 Analyzer with Innovation Propositions on Misfits ... 239 7.5.10 Describing a Defender ................................................ 240 7.5.11 Defender Effects on Structure .................................... 241 7.5.12 Defender Propositions on Misfits ................................ 243 7.5.13 Reactor Strategy........................................................... 243 7.6 International Dimensions ........................................................ 244 7.7 Choosing the Right Strategy..................................................... 246 7.8 The Strategy of SAS.................................................................... 246 7.8.1 Development of a Complete Scandinavian Traffic System with Route Networks and Airports .............. 252 7.9 Summary ................................................................................ 254 8. Organizational Design: A Synthesis ........................................... 259 8.1 Combining the Pieces: Putting It All Together .......................... 8.2 Contingency Fit ......................................................................... 8.2.1 The Simple Configuration ........................................ 8.2.2 The Functional Configuration ................................. 8.2.3 Divisional Configuration ........................................... 259 263 264 266 269 Table of Contents 8.2.4 Matrix Configuration ................................................. 8.2.5 Ad Hoc Configuration ................................................. 8.2.6 Professional Bureaucracy Configuration .................. 8.2.7 Machine Bureaucracy Configuration ........................ 8.2.8 Organizational Complexity ......................................... 8.2.9 Formalization ............................................................. 8.2.10 Centralization Propositions ......................................... 8.2.11 Coordination and Control ............................................ 8.2.12 Media Richness and Incentives ................................... 8.3 Situation Fit and Misfits ........................................................... 8.4 Design Parameter Fit ................................................................. 8.5 Total Design Fit ............................................................................ 8.6 SAS ................................................................................................. 8.7 New Forms of Organization ......................................................... 8.8 SAS Revisited ................................................................................ 8.9 SAS and the Change Process ..................................................... 8.10 Summary ................................................................................ 271 274 276 277 278 285 290 296 299 302 303 305 308 312 314 315 315 PART 2................................................................................................................. 319 9. Organizational Consultant ................................................................. 321 9.1 Introduction .............................................................................. 9.2 Installation of Organizational Consultant, Ver. 5 1................... 9.3 Guide to the Book ....................................................................... 9.4 Learning to use Organizational Consultant .............................. 9.5 Sample Analysis Input Template ................................................ 9.6 Looking Ahead .............................................................................. 321 322 323 324 325 326 10. How to Use Organizational Consultant .................................... 329 10.1 Introduction ............................................................................ 10.2 How to Input Data ................................................................... 10.3 Running an Analysis ............................................................... 10.4 Output ................................................................................... 10.5 Leaving Organizational Consultant .......................................... 10.6 Summary ................................................................................ 329 333 338 340 345 346 11. The Microlink Case............................................................................... 347 11.1 Introduction ............................................................................ 11.2 Microlink International: History and Product ......................... 11.3 Microlink International: Structure and Markets ..................... 11.4 Input to Organizational Consultant ........................................ 11.4.1 Current Configuration ................................................. 347 347 348 351 351 Table of Contents 11.4.2 Current Complexity .................................................... 11.4.3 Current Formalization ............................................... 11.4.4 Current Centralization .............................................. 11.4.5 Current Size .............................................................. 11.4.6 Age/Ownership .......................................................... 11.4.7 Diversity ...................................................................... 11.4.8 Technology ................................................................... 11.4.9 Environment .............................................................. 11.4.10 Management Style .................................................... 11.4.11 Strategy Factors ...................................................... 11.5 Results from Organizational Consultant ............................... 11.6 Performing a Sensitivity (Delta) Analysis ................................. 11.6.1 Results from the Sensitivity Analysis ........................ 11.7 The Organizational Consultant's Recommendations and Sensitivity Analysis ................................................................. 11.8 Implications for Microlink International ................................ 11.9 What Can We Learn By Doing? ................................................ xi 352 354 356 358 359 359 360 362 363 364 365 374 375 380 382 384 12. Creating Written Reports and Presentations ..................... 389 12.1 Planning to Report Results ..................................................... 12.1.1 Analyzing your Audience ............................................ 12.1.2 Defining your Purpose ................................................ 12.1.3 Adapting to Situational Constraints .......................... 12.2 Creating Messages .................................................................. 12.2.1 Message Development ................................................ 12.2.2 Creating the Body of the Message .............................. 12.3 Writing a Case Analysis .......................................................... 12.3.1 Descriptive Analyses ................................................... 12.3.2 Evaluative Analyses .................................................... 12.4 Presenting a Case Analysis .................................................... 12.4.1 Planning Your Strategy .............................................. 12.4.2 Creating the Introduction .......................................... 12.4.3 Creating the Conclusion ............................................ 12.4.4 Tying the Message Together ........................................ 12.5 Sample Presentation Outline ................................................. 12.6 Summary ............................................................................... 389 389 390 391 392 393 393 394 394 396 399 400 403 404 404 404 408 13. Sample Cases and Exercises ......................................................... 409 13.1 Introduction .......................................................................... 13.2 ABB Electromechanical Meters ............................................... 13.2.1 Background ............................................................... 13.2.2 The Electromechanical Meter Organization .............. 13.2.3 Manufacturing ........................................................... 13.2.4 Design Engineering .................................................... 13.2.5 Marketing ................................................................... 409 410 410 411 411 412 413 xii Table of Contents 413 414 414 414 414 418 419 419 421 422 422 423 424 424 426 426 427 427 428 429 430 431 431 431 432 432 432 433 433 434 435 436 439 13.2.6 Intergroup Communications ..................................... 13.2.7 Managerial Responsibilities ....................................... 13.2.8 Questions for Consideration ...................................... 13.3 Duke University Press ............................................................. 13.3.1 Organizational Description ........................................ 13.3.2 Questions for Consideration ...................................... 13.4 GTE Government Systems Mobile Subscriber Equipment Division ...................................................................................... 13.4.1 Background and Issues ............................................ 13.4.2 Analysis ...................................................................... 13.4.3 Questions for Consideration ...................................... 13.5 Weck ENDOSCOPY....................................................................... 13.5.1 History ........................................................................ 13.5.2 The New Focus for Weck: Endoscopy ......................... 13.5.3 Current Organization ................................................ 13.5.4 Questions for Consideration ...................................... 13.6 The U.S. EPA's Air and Energy Engineering Research Laboratory .................................................................. 13.6.1 Background ............................................................... 13.6.2 Structure ................................................................. 13.6.3 Formalization ............................................................. 13.6.4 Centralization ............................................................. 13.6.5 Size ............................................................................. 13.6.6 Age and Ownership .................................................... 13.6.7 Diversity ...................................................................... 13.6.8 Technology ................................................................... 13.6.9 Environment .............................................................. 13.6.10 Management Profile .................................................. 13.6.11 Industry .................................................................. 13.6.12 Strategy ................................................................... 13.6.13 Questions for Consideration .................................... 13.7 Bluestone Group, Inc.............................................................. 13.7.1 Background ............................................................... 13.7.2 Part I .......................................................................... 13.7.3 Part II ......................................................................... APPENDIX.. Troubleshooting ............................................................... 447 Subject Index ................................................................................................. 449