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Chapter 7. Organizational Structure and Change
Figure 7.1.
The structures of organizations vary and influence the ease or challenge of organizational performance and change.
W H A T ’ S
I N
I T
F O R
M E ?
Reading this chapter will help you do the following: 1. 2. 3. 4. Define organizational structure and its basic elements. Describe matrix, boundaryless, and learning organizations. Describe why and how organizations change. Understand reasons why people resist change, and strategies for planning and executing change effectively.
5.
Build your own organizational design skills. Figure 7.2. The P-O-L-C Framework
Creating or enhancing the structure of an organization defines managers’ Organizational Design task. Organizational design is one of the three tasks that fall into the organizing function in the planningorganizing-leading-controlling (P-O-L-C) framework. As much as individual- and team-level factors influence work attitudes and behaviors, the organization’s structure can be an even more powerful influence over employee actions.
Case in Point: Toyota Struggles With Organizational Structure
Figure 7.3.
Toyota Motor Corporation (TYO: 7203) has often been referred to as the gold standard of the automotive industry. In the first quarter of 2007, Toyota (NYSE: TM) overtook General Motors Corporation in sales for the first time as the top automotive manufacturer in the world. Toyota reached success in part because of its exceptional reputation for quality and customer care. Despite the global recession and the tough economic times that American auto companies such as General Motors and Chrysler faced in 2009, Toyota enjoyed profits of $16.7 billion and sales growth of 6% that year. However, late 2009 and early 2010 witnessed Toyota’s recall of 8 million vehicles due to unintended acceleration. How could this happen to a company known for quality and structured to solve problems as soon as they arise? To examine this further,
Figure 7.1.
The structures of organizations vary and influence the ease or challenge of organizational performance and change.
W H A T ’ S
I N
I T
F O R
M E ?
Reading this chapter will help you do the following: 1. 2. 3. 4. Define organizational structure and its basic elements. Describe matrix, boundaryless, and learning organizations. Describe why and how organizations change. Understand reasons why people resist change, and strategies for planning and executing change effectively.
5.
Build your own organizational design skills. Figure 7.2. The P-O-L-C Framework
Creating or enhancing the structure of an organization defines managers’ Organizational Design task. Organizational design is one of the three tasks that fall into the organizing function in the planningorganizing-leading-controlling (P-O-L-C) framework. As much as individual- and team-level factors influence work attitudes and behaviors, the organization’s structure can be an even more powerful influence over employee actions.
Case in Point: Toyota Struggles With Organizational Structure
Figure 7.3.
Toyota Motor Corporation (TYO: 7203) has often been referred to as the gold standard of the automotive industry. In the first quarter of 2007, Toyota (NYSE: TM) overtook General Motors Corporation in sales for the first time as the top automotive manufacturer in the world. Toyota reached success in part because of its exceptional reputation for quality and customer care. Despite the global recession and the tough economic times that American auto companies such as General Motors and Chrysler faced in 2009, Toyota enjoyed profits of $16.7 billion and sales growth of 6% that year. However, late 2009 and early 2010 witnessed Toyota’s recall of 8 million vehicles due to unintended acceleration. How could this happen to a company known for quality and structured to solve problems as soon as they arise? To examine this further,