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• Contents
• Preface to Second Edition
• Preface from the First Edition
• Part I: The Broad Picture
• Chapter 1: Organization and Its Importance
• Purpose and Scope of This Book
• Organizing, Organization, and Organizations
• Components of Organization
• Organizational Choices
• Hierarchy
• Specialization
• Hierarchy and specialization
• Rules and schedules
• Systems
• Integration
• Control
• Reward systems
• Boundary-crossing and networking
• Outsourcing
• Alliances
• Organizing across borders
• Consequences of Deficiencies in Organization
• Motivation and morale
• Decision making
• Conflict and lack of coordination
• Changing circumstances
• Rising costs
• Summary
• Questions for Discussion
• Notes
• Chapter 2: Perspectives on Organizational Design until Recent Times
• A Brief Look Into History
• One Best Ways of Organizing
• Classical organization theory and bureaucracy
• Scientific management
• The Contingency Approach
• Technology
• Size
• Diversification
• People
• People and their culture
• Organizational purpose and values
• Organizational environment
• Conclusion
• Summary
• Questions for Discussion
• Notes
• Chapter 3: New Conditions, New Organization
• The Retreat from Conventional Forms of Organization
• New Conditions, New Organization
• Globalization
• Implications for organization
• New technologies
• Implications for organization
• The Knowledge-based economy
• Hypercompetition
• Demands for social accountability
• New Conditions, New Forms Summarized
• New and Conventional Organizational Forms Compared
• The network paradigm
• Setting and disseminating the goals of the organization
• Identifying duties and roles
• Maintaining a value-adding system
• Summary
• Questions for Discussion
• Notes
• Part II: New Internal Forms
• Chapter 4: Simpler Structures – Reducing Hierarchy
• Hierarchy
• Unloved but ubiquitous
• Hierarchy in conventional organization
• The contribution of hierarchy
• Negative features of hierarchy
• Hierarchy in new organization
• Downsizing and Delayering
• Size and hierarchy
• Downsizing
• Context and reasons for downsizing
• Performance consequences of downsizing
• Delayering
• From Hierarchies to Teams
• Summary
• Questions for Discussion
• Notes
• Chapter 5: Achieving Integration
• The Concept
• The Need for Adequate Integration
• Achieving Integration is a Challenge
• Integration between functions
• Operational integration
• Other integration problem areas
• Poor Integration Can Lead to Disaster
• Good Integration Can Create a Dynamic Capability
• Signs that Integration Needs Are Not Being Met
• A Diagnostic Tool
• The Choice of Integrating Mechanism15
• Fundamental questions to ask
• Integration by a higher manager
• Integration through formal procedures and planning
• Lateral coordination
• A note on matrix organization
• Costs of managing integration
• Requirements for coordination
• Teamworking: An Aid to Integration
• Types of team
• Further advantages offered by teams
• Teamwork best practice – a summary
• Coordination has to be managed
• Summary
• Questions for Discussion
• Notes
• Chapter 6: Control
• An Elusive Concept
• Control in Organizations: Key Distinctions
• Levels of control
• Aspects of control
• Strategies of Control
• Personal centralized control
• Bureaucratic control
• Output control
• Control through electronic surveillance
• HRM control
• Cultural control
• Conventional and newer approaches to control
• Control Strategies and Relevant Contingencies
• Summary
• Questions for Discussion
• Notes
• Chapter 7: Questions of Reward
• The Role of Reward Policies
• Extrinsic and Intrinsic Rewards
• Criteria Applied to Rewards
• Managerial criteria
• Employees’ criteria
• Expectancy Theory
• Link 1: Expectancy
• Link 2: Instrumentality
• Link 3: Legitimacy
• Link 4: Valence
• Conditioning Theory
• Summary
• Questions for Discussion
• Notes
• Chapter 8: Payment Systems
• The Importance of Pay
• Methods of Payment
• 1 Flat-time rates
• 2 Output incentives
• 3 Merit rating
• 4 Gain Sharing
• 5 Profit sharing and stock ownership
• 6 Performance-related pay
• Considerations in the Choice of a Payment System
• Trends in Reward Policies Consistent with New Organizational Forms
• Summary
• Questions for Discussion
• Notes
• Part III: New Network Forms
• Chapter 9: Outsourcing and Offshoring
• Outsourcing and Changing Organizational Boundaries
• The Scale and Scope of Outsourcing
• The Surge in Outsourcing During the 2000s
• 1. Manufacturing
• 2. Services
• Attractions of Outsourcing
• Problems with Outsourcing
• The Reaction to Outsourcing and Offshoring Problems
• Reaching a Decision on Outsourcing
• Creating Successful Outsourcing Partnerships
• The basis for successful outsourcing
• Summary
• Questions for Discussion
• Notes
• Chapter 10: Virtual Organization
• What is a Virtual Organization?
• Forms of Virtual Organization
• Potential Benefits of Virtual Organization
• Conditions for the Viability of a Virtual Organization
• Limitations of Virtual Organization
• Questions about the Use of Virtual Organization
• When to use virtual organization
• Managing the virtual organization
• Virtual team working
• A Pioneer of Virtual Organization: Dell Inc.32
• Summary
• Questions for Discussion
• Notes
• Chapter 11: Strategic Alliances
• What is a Strategic Alliance?
• The Significance of Alliances
• Alliance Forms
• Organizational integration
• Legal and ownership form
• Strategic intention
• Organizational and Managerial Challenges Posed by Alliances
• The organizational design of alliances
• Achieving trust
• Managerial role conflict
• Clashes between partner cultures
• Control
• Alliance Configurations
• The surrogate subsidiary
• The balanced partnership
• The junior partner
• Implications
• Summary
• Questions for Discussion
• Notes
• Chapter 12: Organizing Across Borders
• Globalization and the Significance of MNEs
• Strategies for Global Expansion
• Organizational Implications of Different Strategies
• New Organizational Arrangements for Organizing Across Borders
• New Organizational Approaches within MNEs
• 1. Hierarchy or network?
• 2. Corporate-subsidiary relationships: control and autonomy20
• 3. Managing integrative processes
• 4. Managing cultural diversity in MNEs
• 5. Cross-border transfer of knowledge and practices
• Eli Lilly: an example of emerging new organizational forms in an MNE 41
• Emerging issues
• Cross-border SMEs
• Summary
• Questions for Discussion
• Notes
• Part IV: Achieving Effective Organizations
• Chapter 13: Managing Organizational Change
• The Challenge of Achieving Organizational Change
• Internal and External Drivers of Organizational Change
• External drivers
• Internal drivers
• Varieties of Organizational Change
• How radical is the change?
• Planned or emergent change?
• The focus of change
• Classifying Approaches to Change
• Radical planned change – lessons from the example of BPR
• A contrast between radical planned and emergent incremental change – BPR and Kaisen
• Contexts and Choices
• Policies for Successful Planned Change
• What is “successful´´ change?
• Stages of planned change
• Specific issues to consider
• Summary
• Questions for Discussion
• Notes
• Chapter 14: Organizing for Learning
• The Strategic Importance of Organizational Learning
• The Nature of Organizational Learning: Key Distinctions
• The concept
• Levels of organizational learning
• Requirements for Successful Organizational Learning
• Leadership
• Capacity to learn
• Conversion of knowledge into an organizational property
• Feedback
• Learning through Alliances
• The nature of learning through strategic alliances
• Competitive and collaborative learning between alliance partners
• Implications for Practice
• Summary
• Questions for Discussion
• Notes
• Chapter 15: Generating and Utilizing Trust
• Introduction
• What is Trust?
• The Benefits of Trust
• Generating and Sustaining Trust
• Trust based on calculation – often the start
• Trust based on mutual understanding – building on working together
• Trust based on bonding – building on liking each other
• Guidelines for Cultivating Trust
• Create a clear and calculable basis for mutual benefit
• Improving mutual predictability: strive to resolve conflicts and keep communication open
• Moving toward mutual bonding
• Repairing broken trust
• High-trust organization
• Summary
• Questions for Discussion
• Notes
• Chapter 16: Corporate Governance in New Organizational Forms
• Introduction
• Growing Concern about Corporate Governance
• The Agency Problem
• The Double Agency Problem
• The Multiple Agency Problem
• Implications for Corporate Governance
• Devolved initiative and the dilution of control
• Partnerships and multiple agency
• Applying Organizational Insights to Corporate Governance Practice
• Limitations of contract and hierarchy
• Mutual monitoring
• Transparency
• A broader approach to control
• Trust
• Co-optation of agents into ownership
• Does effective corporate governance require the retention of some bureaucracy?
• Conclusion
• Summary
• Questions for Discussion
• Notes
• Part V: Designing Organizations for the 21st Century
• Chapter 17: Meeting Strategic Business Needs
• Strategic Needs
• Innovation
• Exploration and exploitation in the innovation process
• Adaptability
• Efficiency
• Combinations of strategic needs
• Organizing for different combinations of strategic need
• Adaptability and innovation
• Hybrid organizational forms
• Summary
• Questions for Discussion
• Notes
• Chapter 18: Meeting Strategic Social Needs
• The Social Problem
• Loss of trust
• Growing inequality
• Psychological and health-related costs
• Desire to escape from large organizations
• Organization as a Culprit
• Organizational contributions to social responsibility23
• Reducing hierarchy
• Offsetting the socially negative effects of hierarchy
• A Concluding Comment
• Summary
• Questions for Discussion
• Notes
• Author Index
• Subject Index
• End User License Agreement