Strategic Organizational Diagnosis and Design: The Dynamics of Fit

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Springer Science & Business Media, 2004 - Business & Economics - 445 pages
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STRATEGIC ORGANIZATIONAL DIAGNOSIS AND DESIGN, 3rd Edition, systematically surveys the substantive literature on organizational design and develops the theoretical framework of multiple contingency organizational design. The multiple contingencies in the theoretical framework cover the contingencies of size, technology, environment, and strategy, as well as leadership style and organizational climate and culture. These contingencies are mapped into design parameters such as organizational configuration, specialization, decision authority, information processing, coordination and control, and incentives.
The book examines a variety of existing organizational situations — which can include the reader's organization — and provides the structure and analysis to diagnose and assess what can be done to have a more efficient and effective organization. Burton and Obel's dynamic multiple contingency theory of organizations provides the analytical framework and tools for the OrgCon© — a knowledge-base expert system which has been thoroughly vetted with business executives.
OrgCon© offers the manager or student a "hands on" knowledge of organizational design. It guides the manager or student through cases or their own organization and enables them to analyze real world organizational problems and seek concrete organization design solutions. The book provide the analytical framework and tools that will result in building intuitive understanding of organization design through interactive applications.
For additional information on the book and OrgCon©, see the following URLs:
http://www.wkap.nl/prod/b/1-4020-7684-3 (hardbound)
http://www.wkap.nl/prod/b/1-4020-7685-1 (paperback)

 

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Contents

Diagnosis and Design
1
WHAT IS AN ORGANIZATION?
2
AN INFORMATIONPROCESSING VIEW OF ORGANIZATIONS
5
Neolnformation Processing as a Basis for Organizational Diagnosis and Design
9
STRATEGIC ORGANIZATIONAL DESIGN
13
THE MULTICONTINGENCY DIAGNOSIS AND DESIGN MODEL
16
Fit Criteria for Designing the Knowledge Base
18
Contingency Fit
20
SUMMARY
233
Technology
237
LITERATURE REVIEW ON TECHNOLOGY
240
MEASURING TECHNOLOGY
249
TECHNOLOGY AS A CONTINGENCY
254
Technology Effects on Centralization
256
Technology Effects on Organizational Complexity
257
Technology Effects on Configuration
259

Strategic Fit
21
Design Fit
23
Total Fit
24
SYNTHESIS OF KNOWLEDGE BASES
25
Composing the Knowledge Base
30
THE OrgCon
38
VALIDATING THE OrgCon
40
SUMMARY
41
What is an Organizational Design?
43
ORGANIZATIONAL CONFIGURATIONS
46
Simple Configuration
47
Functional Configuration
48
A Functional Organization
50
Divisional Configuration
54
A Divisional Organization
56
Matrix Configuration
60
A Matrix Organization
62
Ad Hoc Configuration
66
Bureaucracies
67
Virtual Network
69
International Configurations
70
ORGANIZATIONAL COMPLEXITY
73
Horizontal Differentiation
74
Vertical Differentiation
75
Spatial Differentiation
77
FORMALIZATION
78
CENTRALIZATION
80
INCENTIVES
81
COORDINATION AND CONTROL
83
SUMMARY
85
Leadership and Management Style
87
LEADERSHIP AND ORGANIZATION
91
LITERATURE REVIEW ON LEADERSHIP
93
DIMENSIONS AND TYPOLOGIES
99
MEASURING LEADERSHIP STYLE
103
LEADERSHIP STYLE AS A CONTINGENCY
107
Describing a Leader
109
A Leaders Effect on Structure
110
Describing a Producer
113
A Producers Effect on Structure
114
Describing an Entrepreneur
116
An Entrepreneurs Effect on Structure
117
Describing a Manager
119
A Managers Effect on Structure
121
Interaction Effects of Size and Leadership Style
124
MANAGING THE LEADER
125
SUMMARY
126
Organizational Climate
127
CLIMATE AND CULTURE
131
LITERATURE REVIEW ON CLIMATE
137
MEASURING AND CATEGORIZING CLIMATE
141
CLIMATE AS A CONTINGENCY
145
Describing a Group Climate
146
The Group Climate Effects on Structure
148
Describing the Developmental Climate
150
Developmental Climate Effect on Structure
151
Describing the Internal Process Climate
153
Internal Process Climate Effects on Structure
155
Describing the Rational Goal Climate
157
Rational Goal Climate Effects on Structure
158
MANAGING THE CLIMATE
160
Size and Skill Capabilities
163
LITERATURE REVIEW ON SIZE
165
The Measurement of Size
166
Size as Imperative
168
MEASURING SIZE AND SKILL CAPABILITY FOR DESIGN PURPOSES
171
SIZE AS A CONTINGENCY
174
Size Effects on Complexity
175
Size Effects on Centralization
176
Size Effects on Formalization
178
Size Effects on Configuration
179
Size Effects on Incentives and Coordination and Control
180
MANAGING SIZE AND SKILL
181
SUMMARY
183
The Environment
185
LITERATURE REVIEW ON ENVIRONMENT
189
The EnvironmentStructure Relationship
195
DESCRIBING THE ENVIRONMENT
198
ENVIRONMENT AS A CONTINGENCY
205
Environmental Effects on Formalization Centralization and Complexity
206
Environmental Effects on Configuration Coordination Media Richness and Incentives
215
OPERATIONALIZATIONS OF THE ENVIRONMENTAL MEASURES
224
NATIONAL CULTURE
227
MANAGING THE ENVIRONMENT
231
Technology Effects on Coordination and Control
260
Information Technology
262
MANAGING TECHNOLOGY
267
SUMMARY
270
Strategy
271
LITERATURE REVIEW ON STRATEGY
276
Strategy Follows Structure
278
Strategy and Structure Fit
279
MEASURING AND CATEGORIZING STRATEGY
284
STRATEGY AS A CONTINGENCY
291
Describing a Prospector
294
Prospector Effects on Structure
296
Describing a Defender
297
Defender Effects on Structure
299
Describing an Analyzer without Innovation
300
Analyzer without Innovation Effects on Structure
302
Describing an Analyzer with Innovation
304
Analyzer with Innovation Effects on Structure
305
Reactor Strategy
307
INTERNATIONAL DIMENSIONS
308
CHOOSING THE RIGHT STRATEGY
309
SUMMARY
310
Diagnosis and Misfits
311
LITERATURE REVIEW ON MISFITS
312
STRATEGIC MISFITS
314
EnvironmentStrategy
315
TechnologyEnvironment
317
ClimateStrategy
319
TechnologyStrategy
320
TechnologyLeadership Style
321
Climate Leadership Style
322
Leadership Style Environment
323
CONTINGENCY MISFITS
324
Strategy Misfits
326
Technology Misfits
328
Size Skill Misfits
329
Climate Misfits
330
Leadership Style Misfits
331
MORE SPECIFIC MISFITS
333
Technology Environment Misfits
335
Climate Environment Misfits
336
Climate Strategy Misfits
337
Climate Technology Misfits
338
Technology Size Skill Misfits
339
Climate Leadership Style Misfits
340
Leadership Style Strategy Misfits
341
Environment Misfits
342
Strategy Misfits
343
Climate Misfits
344
SUMMARY
345
Organizational Design Fit
347
DESIGN PARAMETER FIT
354
DESIGN SYNTHESIS
358
The Simple Configuration
359
The Functional Configuration
360
Divisional Configuration
362
Matrix Configuration
363
Ad Hoc Configuration
365
Virtual Network
366
The Professional Bureaucracy
367
The Machine Bureaucracy
368
Organizational Complexity
369
Formalization
373
Centralization
376
Coordination and Control
380
Media Richness and Incentives
381
SUMMARY
382
The Dynamics of the Change Process
385
DIAGNOSIS AND DESIGN
386
DIAGNOSIS AND DESIGN
388
THE DYNAMICS OF DIAGNOSIS AND DESIGN
393
Where Do They Come From?
394
Evolutionary and Revolutionary
396
Intended Misfit Creation
397
THE MECHANISMS OF MISFITS
399
HOW TO FIX MISFITS
403
HOW FAST IS FAST ENOUGH
407
DESIGN IS EXPLORATION AND EXPLOITATION
411
DESIGN IS LEARNING
415
SUMMARY
418
REFERENCES
421
Index
435
Copyright

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About the author (2004)

Richard M. Burton is Professor Emeritus of Organization and Strategy at the Fuqua School of Business, Duke University.

Borge Obel is Director of the Interdisciplinary Center for Organizational Architecture (ICOA) and Professor in Management at Aarhus University.