GSB602 Amazon Inc Organizational Analysis Paper

GSB602 Fortis College Indianapolis Amazon Inc Organizational Analysis Paper

Organization Theory and Design TENTH EDITION Richard L. Daft VANDERBILT UNIVERSITY Organization Theory and Design, Tenth Edition Richard L. Daft With the Assistance of Patricia G. Lane Vice President of Editorial, Business: Jack W. Calhoun Vice President/Editor-in-Chief: Melissa Acuña Publisher: Joe Sabatino © 2010, 2007 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and retrieval systems, or in any other manner—except as may be permitted by the license terms herein. Developmental Editor: Erin Guendelsberger Executive Marketing Manager: Kimberly Kanakas Marketing Manager: Clint Kernen Marketing Coordinator: Sarah Rose Senior Content Project Manager: Colleen A. Farmer Media Editor: Rob Ellington For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Frontlist Buyer, Manufacturing: Doug Wilke Production Service and Compositor: S4Carlisle Publishing Services Senior Art Director: Tippy McIntosh Internal and Cover Designer: Craig Ramsdell, Ramsdell Design Cover Image: ©iStock Exam View® is a registered trademark of eInstruction Corp. Windows is a registered trademark of the Microsoft Corporation used herein under license. Macintosh and Power Macintosh are registered trademarks of Apple Computer, Inc. used herein under license. © 2008 Cengage Learning. All Rights Reserved. Cengage Learning WebTutor™ is a trademark of Cengage Learning. Library of Congress Control Number: 2009921278 ISBN-13: 978-0-324-59889-6 ISBN-10: 0-324-59889-0 Instructor’s Edition ISBN 13: 978-0-324-59913-8 Instructor’s Edition ISBN 10: 0-324-59913-7 South-Western Cengage Learning 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.ichapters.com Printed in the United States of America 1 2 3 4 5 6 7 13 12 11 10 09 About the Author Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management in the Owen Graduate School of Management at Vanderbilt University. Professor Daft specializes in the study of organization theory and leadership. Professor Daft is a Fellow of the Academy of Management and has served on the editorial boards of Academy of Management Journal, Administrative Science Quarterly, and Journal of Management Education. He was the Associate Editor-in-Chief of Organization Science and served for three years as associate editor of Administrative Science Quarterly. Professor Daft has authored or co-authored twelve books, including Management (Cengage/South-Western, 2010), The Leadership Experience (Cengage/SouthWestern, 2008), and What to Study: Generating and Developing Research Questions (Sage, 1982). He also published Fusion Leadership: Unlocking the Subtle Forces That Change People and Organizations (Berrett-Koehler, 2000, with Robert Lengel). He has authored dozens of scholarly articles, papers, and chapters. His work has been published in Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, Organizational Dynamics, Strategic Management Journal, Journal of Management, Accounting Organizations and Society, Management Science, MIS Quarterly, California Management Review, and Organizational Behavior Teaching Review. Professor Daft has been awarded several government research grants to pursue studies of organization design, organizational innovation and change, strategy implementation, and organizational information processing. Professor Daft is also an active teacher and consultant. He has taught management, leadership, organizational change, organizational theory, and organizational behavior. He has been involved in management development and consulting for many companies and government organizations, including Allstate Insurance, American Banking Association, Bell Canada, Bridgestone, National Transportation Research Board, NL Baroid, Nortel, TVA, Pratt & Whitney, State Farm Insurance, Tenneco, Tennessee Emergency Pediatric Services, the United States Air Force, the United States Army, J. C. Bradford & Co., Central Parking System, USAA, United Methodist Church, Entergy Sales and Service, Bristol-Myers Squibb, First American National Bank, and the Vanderbilt University Medical Center. iii This page intentionally left blank Brief Contents Part 1: Introduction to Organizations 1. Organizations and Organization Theory 1 2 Part 2: Organizational Purpose and Structural Design 2. 3. Strategy, Organization Design, and Effectiveness Fundamentals of Organization Structure 88 55 56 Part 3: Open System Design Elements 4. 5. 6. 137 The External Environment 138 Interorganizational Relationships 174 Designing Organizations for the International Environment 208 Part 4: Internal Design Elements 7. 8. 9. 251 Manufacturing and Service Technologies 252 Using IT for Coordination and Control 294 Organization Size, Life Cycle, and Decline 332 Part 5: Managing Dynamic Processes 10. 11. 12. 13. Organizational Culture and Ethical Values Innovation and Change 410 Decision-Making Processes 450 Conflict, Power, and Politics 371 371 372 Chris Ho – www.chrisho.net Integrative Cases 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Rondell Data Corporation 531 It Isn’t So Simple: Infrastructure Change at Royce Consulting Custom Chip, Inc. 544 “Ramrod” Stockwell 551 W. L. Gore & Associates, Inc. Entering 1998 554 Dick Spencer 569 The Plaza Inn 574 Dowling Flexible Metals 578 The Donor Services Department 582 Empire Plastics 586 529 539 v Organization Theory and Design TENTH EDITION Richard L. Daft VANDERBILT UNIVERSITY vi Brief Contents 11.1 11.2 12.0 Littleton Manufacturing (A) 589 Littleton Manufacturing (B) 601 Hartland Memorial Hospital (A): An Inbox Exercise Glossary 613 Name Index 623 Corporate Name Index Subject Index 639 634 603 Contents Part 1: Introduction to Organizations 1 Chapter 1: Organizations and Organization Theory 2 Organization Theory in Action 6 Organizational Configuration Efficient Performance versus the Learning Organization Topics, 6 • Current Challenges, 7 • Purpose of This Chapter, 10 What is an Organization? 10 Definition, 11 • From Multinationals to Nonprofits, 11 • Importance of Organizations, 12 BookMark 1.0: The Company: A Short History of a Revolutionary Idea 13 Dimensions of Organization Design 14 Structural Dimensions, 15 • Contextual Dimensions, 17 In Practice: Ternary Software Inc. 18 In Practice: Federal Bureau of Investigation 22 The Evolution of Organization Theory and Design 22 Historical Perspectives, 23 How Do You Fit the Design? Evolution of Style 30 From Vertical to Horizontal Structure, 31 • From Routine Tasks to Empowered Roles, 31 • From Formal Control Systems to Shared Information, 33 • From Competitive to Collaborative Strategy, 33 • From Rigid to Adaptive Culture, 33 In Practice: Cementos Mexicanos 34 Framework for the Book 35 Levels of Analysis, 35 • Plan of the Book, 37 • Plan of Each Chapter, 37 Design Essentials Performance and Effectiveness Outcomes, 20 26 Mintzberg’s Organizational Types, 26 • Contemporary Design Ideas, 30 Chapter 1 Workbook: Measuring Dimensions of Organizations Case for Analysis: Perdue Farms Inc.: Responding to 21st Century Challenges 39 40 41 24 Don’t Forget the Environment, 26 Bettina Anzeletti Part 2: Organizational Purpose and Structural Design Chapter 2: Strategy, Organization Design, and Effectiveness Organizational Purpose 56 Purpose of This Chapter, 57 The Role of Strategic Direction in Organization Design 60 Strategic Intent, 60 In Practice: Walgreens 58 55 61 Operative Goals, 62 • The Importance of Goals, 64 vii viii Contents A Framework for Selecting Strategy and Design 65 Porter’s Competitive Forces and Strategies, 65 How Do You Fit the Design? Your Strategy/ Performance Strength 66 In Practice: Apple 68 Miles and Snow’s Strategy Typology, 70 How Do You Fit the Design? The Pleasure/Pain of Working on a Team 100 Organization Design Alternatives 101 Required Work Activities, 101 • Reporting Relationships, 102 • Departmental Grouping Options, 102 Functional, Divisional, and Geographic Designs 104 Functional Structure, 104 BookMark 2.0: The Strategy Paradox: Why Committing to Success Leads to Failure (And What to Do About It) In Practice: Blue Bell Creameries, Inc. 71 How Strategies Affect Organization Design, 72 • Other Factors Affecting Organization Design, 73 Matrix Structure Assessing Organizational Effectiveness 74 Traditional Effectiveness Approaches 75 Goal Indicators, 75 • Resource-based Indicators, 76 • Internal Process Indicators, 77 105 Functional Structure with Horizontal Linkages, 105 • Divisional Structure, 106 • Geographic Structure, 109 110 Conditions for the Matrix, 110 • Strengths and Weaknesses, 112 In Practice: Englander Steel 113 Horizontal Structure 115 Characteristics, 116 The Balanced Scorecard Approach to Effectiveness 77 Design Essentials 79 In Practice: GE Salisbury Strengths and Weaknesses, 118 Virtual Networks and Outsourcing Chapter 2 Workbook: Identifying Company Strategies and Effectiveness Criteria Case for Analysis: The University Art Museum Case for Analysis: Airstar Inc. Chapter 2 Workshop: The Balanced Scorecard and Organizational Effectiveness 81 81 84 85 Chapter 3: Fundamentals of Organization Structure 88 Purpose of This Chapter, 90 Organization Structure 90 BookMark 3.0: The Future of Management 92 Information-Sharing Perspective on Structure 92 In Practice: Textron Inc. 94 117 119 How the Structure Works, 120 In Practice: TiVo Inc. 120 Strengths and Weaknesses, 121 Hybrid Structure 122 Applications of Structural Design 123 Structural Alignment, 125 • Symptoms of Structural Deficiency, 125 Design Essentials 127 Chapter 3 Workbook: You and Organization Structure Case for Analysis: C & C Grocery Stores Inc. Case for Analysis: Aquarius Advertising Agency 128 129 132 Vertical Information Sharing, 94 • Horizontal Information Sharing, 95 Part 3: Open System Design Elements Chapter 4: The External Environment 137 138 Purpose of This Chapter, 140 The Organization’s Environment Task Environment, 140 • General Environment, 142 • International Environment, 143 140 In Practice: Univision 144 The Changing Environment 144 Simple–Complex Dimension, 145 • Stable–Unstable Dimension, 146 BookMark 4.0: Confronting Reality: Doing What Matters to Get Things Right Framework, 147 146 Contents Adapting to a Changing Environment ix 149 In Practice: Axiom Global Inc. 149 Institutionalism Strategies for Survival, 191 Adding Positions and Departments, 149 In Practice: Wal-Mart 155 Design Essentials 197 Chapter 5 Workbook: Management Fads Case for Analysis: Oxford Plastics Company Case for Analysis: Hugh Russel, Inc. Chapter 5 Workshop: Ugli Orange Case 199 199 200 203 Framework for Responses to Environmental Change 156 Dependence on External Resources 158 Influencing External Resources 158 Chapter 6: Designing Organizations for the International Environment 160 Entering the Global Arena 163 BookMark 6.0: The World Is Flat: A Brief History of the Twenty-First Century Establishing Formal Relationships, 159 In Practice: AT&T Design Essentials 165 Chapter 4 Workbook: Organizations You Rely On Case for Analysis: The Paradoxical Twins: Acme and Omega Electronics 167 168 174 Purpose of This Chapter, 176 Organizational Ecosystems 176 177 The Changing Role of Management, 179 • Interorganizational Framework, 180 Resource Dependence Designing Structure to Fit Global Strategy Model for Global versus Local Opportunities, 216 • International Division, 219 • Global Product Division Structure, 220 • Global Geographic Division Structure, 221 In Practice: Colgate-Palmolive Company 222 In Practice: Asea Brown Boveri Ltd. (ABB) 224 Building Global Capabilities 225 In Practice: IBM 181 Collaborative Networks 183 How Do You Fit the Design? Are You Ready to Fill an International Role? 184 Three National Approaches to Coordination and Control, 235 From Adversaries to Partners, 185 BookMark 5.0: Managing Strategic Relationships: The Key to Business Success 187 Population Ecology 188 233 National Value Systems, 233 183 Why Collaboration?, 183 228 Global Coordination Mechanisms, 230 Cultural Differences in Coordination and Control In Practice: Amazon.com Organizational Form and Niche, 189 • Process of Ecological Change, 189 216 The Global Organizational Challenge, 226 Supply Chain Relationships, 181 • Power Implications, 182 How Do You Fit the Design? Personal Networking 211 Stages of International Development, 214 • Global Expansion through International Strategic Alliances, 215 Global Matrix Structure, 223 Is Competition Dead?, 177 In Practice: Sony Corporation and Samsung Electronics Company 210 Motivations for Global Expansion, 211 Organization–Environment Integrative Framework, 164 Chapter 5: Interorganizational Relationships 208 Purpose of This Chapter, 210 Influencing Key Sectors, 162 In Practice: eBay 192 The Institutional View and Organization Design, 193 • Institutional Similarity, 194 Building Relationships, 150 • Differentiation and Integration, 152 • Organic versus Mechanistic Management Processes, 153 • Planning, Forecasting, and Responsiveness, 155 How Do You Fit the Design? Mind and Environment 190 234 The Transnational Model of Organization 237 Design Essentials 240 Chapter 6 Workbook: Made in the U.S.A.? Case for Analysis: TopDog Software Case for Analysis: Rhodes Industries Chapter 6 Workshop: Comparing Cultures 242 242 243 246 x Contents Part 4: Internal Design Elements Chapter 7: Manufacturing and Service Technologies 251 252 Purpose of This Chapter, 255 Core Organization Manufacturing Technology 256 Manufacturing Firms, 256 • Strategy, Technology, and Performance, 258 In Practice: Printronix 259 BookMark 7.0: Inviting Disaster: Lessons from the Edge of Technology 260 Contemporary Applications 261 Flexible Manufacturing Systems, 261 • Lean Manufacturing, 263 In Practice: Matsushita Electric Industrial Company 263 266 Service Firms, 267 How Do You Fit the Design? Manufacturing vs. Service Designing the Service Organization, 270 271 Non-Core Departmental Technology 272 Variety, 272 • Analyzability, 272 • Framework, 273 275 Workflow Interdependence Among Departments 277 Types, 277 279 Structural Priority, 280 • Structural Implications, 280 In Practice: Athletic Teams 281 Impact of Technology on Job Design 282 Job Design, 282 • Sociotechnical Systems, 283 Chapter 7 Workbook: Bistro Technology Case for Analysis: Acetate Department Chapter 8: Using IT for Coordination and Control In Practice: eBay 302 The Level and Focus of Control Systems 305 Organization Level: The Balanced Scorecard, 305 BookMark 8.0: Five Key Principles of Corporate Performance Management 306 In Practice: Best Buy 310 Adding Strategic Value: Strengthening Internal Coordination 311 Intranets, 311 • Web 2.0 Tools, 312 • Knowledge Management, 312 285 287 288 314 Enterprise Resource Planning, 314 Adding Strategic Value: Strengthening External Coordination 315 The Integrated Enterprise, 315 In Practice: Corrugated Supplies Department Design Design Essentials 301 In Practice: ExactTarget Inc. 269 In Practice: Home Depot Inc. In Practice: Great Ormond Street Hospital for Children How Do You Fit the Design? Is Goal-Setting Your Style? Department Level: Behavior versus Outcome Control, 308 Performance and Structural Implications, 264 Core Organization Service Technology Organizational Decision-Making Systems, 298 • Feedback Control Model, 299 • Management Control Systems, 300 316 Customer Relationships, 318 E-Business Organization Design 319 In-House Division, 319 • Spin-Off, 319 • Strategic Partnership, 320 It Impact on Organization Design 321 Design Essentials 323 Chapter 8 Workbook: Balanced Scorecard Exercise Case for Analysis: Century Medical Case for Analysis: Product X 325 327 328 Chapter 9: Organization Size, Life Cycle, and Decline 332 Purpose of This Chapter, 334 Organization Size: Is Bigger Better? 334 Pressures for Growth, 334 294 Purpose of This Chapter, 296 BookMark 9.0: Small Giants: Companies That Choose to Be Great Instead of Big 335 Dilemmas of Large Size, 336 Information Technology Evolution 296 Information for Decision Making and Control 298 How Do You Fit the Design? What Size Organization for You? 338 Contents Organizational Life Cycle xi 340 Stages of Life Cycle Development, 340 In Practice: Amazon 343 Organizational Characteristics during the Life Cycle, 344 Organizational Size, Bureaucracy, and Control 345 What Is Bureaucracy?, 346 In Practice: United Parcel Service (UPS) Bureaucratic Control, 353 • Market Control, 354 • Clan Control, 354 In Practice: Southwest Airlines 355 Organizational Decline and Downsizing 356 Definition and Causes, 357 • A Model of Decline Stages, 358 In Practice: Herman Miller 349 Design Essentials 359 362 351 Chapter 9 Workbook: Control Mechanisms Case for Analysis: Sunflower Incorporated Chapter 9 Workshop: Windsock Inc. 363 364 365 Downsizing Implementation, 360 Organizing Temporary Systems, 350 In Practice: The Salvation Army 352 347 Size and Structural Control, 348 Bureaucracy in a Changing World Bureaucracy versus other Forms of Control Other Approaches to Busting Bureaucracy, 351 Part 5: Managing Dynamic Processes Chapter 10: Organizational Culture and Ethical Values 371 372 Purpose of This Chapter, 374 Organizational Culture 374 What Is Culture?, 374 • Emergence and Purpose of Culture, 376 BookMark 10.0: Good to Great: Why Some Companies Make the Leap . . . And Others Don’t 376 Interpreting Culture, 377 Organization Design and Culture 381 The Adaptability Culture, 382 In Practice: Google 382 The Mission Culture, 383 • The Clan Culture, 384 • The Bureaucratic Culture, 384 How Do You Fit the Design? Corporate Culture Preference 385 386 Organizational Culture, Learning, and Performance 387 In Practice: Genentech 388 Ethical Values and Social Responsibility 389 Sources of Individual Ethical Principles, 389 • Managerial Ethics, 390 • Corporate Social Responsibility, 392 • Does It Pay to Be Good?, 392 How Leaders Shape Culture and Ethics Values-Based Leadership, 394 • Formal Structure and Systems, 395 398 Design Essentials 399 Chapter 10 Workbook: Shop ’til You Drop: Corporate Culture in the Retail World Case for Analysis: Implementing Change at National Industrial Products Case for Analysis: Does This Milkshake Taste Funny? Chapter 10 Workshop: The Power of Ethics Chapter 11: Innovation and Change 401 402 404 406 410 Purpose of This Chapter, 411 The Strategic Role of Change 412 Innovate or Perish, 412 • Strategic Types of Change, 413 Culture Strength and Organizational Subcultures, 385 In Practice: Pitney Bowes Credit Corporation Corporate Culture and Ethics in a Global Environment 393 Elements for Successful Change 415 Technology Change 417 How Do You Fit the Design? Are You Innovative? 418 The Ambidextrous Approach, 418 • Techniques for Encouraging Technol …

GSB602 Amazon Inc Organizational Analysis Paper

Need Help with a similar Assignment?

Do not buy an existing solution, get your own custom solution.