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Organization Design
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Organization Design
Creating Strategic & Agile Organizations

July 2018 | 352 pages | SAGE Publications, Inc
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To thrive in today’s rapidly changing, global, dynamic business environment characterized by constant change and disruption, organizations must be able to adapt and innovate to maintain their competitive edge. Organization Design: Creating Strategic & Agile Organizations prepares students to make smart strategic decisions when designing and redesigning organizations. Structured around Galbraith’s Star Model™, the text explores five facets of organization design: strategy, structure, processes, people, and rewards. Author Donald L. Anderson distills contemporary and classic research into practical applications and best practices. Cases, exercises, and a simulation activity provide multiple opportunities for students to practice making design decisions.

Includes an innovative organization design simulation activity that puts students in the role of a design practitioner!
 
Preface
 
Acknowledgments
 
About the Author
 
Chapter 1: Introduction to Organization Design
Organization Design Defined

 
Organization Design Is a Set of Deliberate Decisions

 
Organization Design Is a Process

 
Organization Design Assumes a Systems

 
Approach to Organization

 
Organization Design Is Based on the Organization’s Strategy

 
Organization Design Encompasses Multiple Levels of Analysis

 
Organization Design Is More Than Organizational Structure

 
Organization Design Is an Interdisciplinary Field of Research and Practice

 
History of Organization Design

 
1850s to Early 20th Century

 
1910s to World War II

 
Post–World War II to 1960s

 
1970s and 1980s

 
1990s and 2000s

 
The Case for Organization Design Today

 
Design Affects Performance

 
Design Is a Leadership Competency

 
Today’s Organizations Experience Significant Design Challenges

 
Today’s Focus on Agility Is a Design Issue

 
Summary

 
Questions for Discussion

 
For Further Reading

 
 
Chapter 2: Key Concepts and the Organization Design Process
Key Concepts of Organization Design

 
The STAR Model of Organization Design

 
Alignment, Congruence and Fit

 
Contingency Theory and Complementarity

 
Tradeoffs and Competing Choices

 
Reasons to Begin a Design Project

 
Performance Is Suffering Because of Misalignment

 
The Strategy Changes

 
There Is a Shift in Environment or External Context

 
There Are Internal Changes to Structures, Functions, or Jobs

 
The Organization Has Made One or More Acquisitions

 
The Organization Expands Globally

 
There Are Cost Pressures

 
There Is a Leadership Change

 
Leaders Want to Communicate a Shift in Priorities

 
The Design Process

 
Scope, Approach, and Involvement

 
Top Down

 
Bottom Up

 
Deciding Who Is Involved

 
Design Assessments and Environmental Scanning

 
Design Assessments: Gathering Data

 
Using the STAR Model as a Diagnostic Framework

 
Environmental Scanning: STEEP and SWOT

 
Evaluating the Current Design

 
Evaluating Alignment in the Design

 
Evaluating Strategy/Task Performance and Social/Cultural

 
Factors in the Design

 
Goold and Campbell’s Nine Design Tests

 
Design Criteria and Organizational Capabilities

 
Benefits of Design Criteria

 
How to Develop and Use Design Criteria in the Design Process

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercise

 
Case Study 1: The Supply Chain Division of Superior Module Electronics, Inc.

 
 
Chapter 3: Strategy
Why Strategy is an Important Concept for Organization Design

 
What is Strategy?

 
Sustainable Competitive Advantage

 
Activity Systems and Strategic Tradeoffs

 
Types of Strategy

 
Porter’s Generic Strategies

 
Treacy and Wiersema’s Value Disciplines

 
Miles and Snow’s Strategy Typology

 
Stuck in the Middle

 
Key Concepts

 
Porter’s Five Forces Model

 
Core Competencies

 
Blue Ocean Strategies and the Strategy Canvas

 
New Trends in Thinking About Strategy

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercises

 
 
Chapter 4: Structure
Connecting Strategy and Structure

 
How Strategy Influences Structure

 
How Structure Influences Strategy

 
Dimensions of Organization Structure

 
Departmentalization or Groupings

 
The Purpose of Department Groupings

 
Structure Options

 
Advantages and Disadvantages of Structure Types

 
Principles of Structure

 
Shape/Configuration: Span of Control and Layers

 
Distribution of Power: Centralization/Decentralization

 
Division of Labor and Specialization

 
Connecting Strategy and Structure: Revisited

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercises

 
 
Chapter 5: Processes and Lateral Capability
Lateral Capability: The Horizontal Organization

 
Why Developing Lateral Capability Is So Difficult

 
Benefits and Costs of Lateral Capability

 
Forms of Lateral Capability

 
Networks

 
Shared Goals, Processes, and Systems

 
Teams

 
Integrator Roles

 
Matrix Organizations

 
Getting the Level of Lateral Capability Right

 
How to Decide Which Form to Use

 
Governance Models and Decision Authority

 
Governance and Planning Processes

 
Decision-Making Practices

 
Enablers for Successful Lateral Capability

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercise

 
Case Study 2: Collaboration at OnDemand Business Courses, Inc.

 
 
Chapter 6: People
Case 1: Coca-Cola

 
Case 2: AT&T

 
Case 3: Lafarge

 
Traditional Approaches to People Practices

 
A Strategic Approach to People Practices

 
Key Positions and the Differentiated Workforce

 
“A” Positions and Pivot Roles

 
Talent Identification and Planning

 
Talent Identification: Focus on Potential

 
Talent Planning, Pipelines, and Talent Pools

 
Career Development

 
The Classic View: Stages of the Career

 
The Contemporary View: Boundaryless Careers

 
Talent Development and Learning Programs

 
New Forms of Learning versus Formal Training

 
Development Through Experiences

 
Performance Management

 
Strategic Analysis and Designing the People Point

 
Global Considerations

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercise

 
 
Chapter 7: Rewards
Approaches to Rewards

 
Misaligned Rewards: When Rewards Fail

 
Unethical Behavior

 
Counterproductive Behavior

 
Conflict and Competition

 
Slower Change and Resistance

 
Why Designing Rewards is so Challenging

 
Motivation

 
Expectancy Theory, Goal Setting, and Equity

 
Intrinsic and Extrinsic Motivation

 
Motivation-Hygiene Theory

 
Intrinsic Motivation and Extrinsic Rewards

 
Motivational Impact of Job Design

 
Metrics and the Balanced Scorecard

 
Rewards Strategy and Systems

 
Basis for Rewards

 
Types of Rewards

 
Designing a Rewards System That Works

 
Rewards, Strategy, and Other STAR Points

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercises

 
Case Study 3: A Talent and Rewards Strategy at EZP Consulting

 
 
Chapter 8: Reorganizing, Managing Change, and Transitions
Change and Resistance

 
Personal Transitions

 
A Change and Transition Planning Framework

 
Resistance

 
Reorganizing and Transition Planning

 
Structure, Reporting Relationships, and Staffing

 
Pace and Timing

 
Scope and Sequencing

 
Communication

 
Feedback and Learning

 
Organizational Culture and Design

 
What Is Culture?

 
Understanding Culture: Competing Values Framework

 
Leadership and Organization Design

 
Leadership’s Role During the Design Process

 
Leadership’s Role During Change

 
Design and Leadership Development

 
Leading New Teams

 
Summary

 
Questions for Discussion

 
For Further Reading

 
Exercise

 
Case Study 4: Reorganizing the Finance Department: Managing Change and Transitions

 
 
Chapter 9: Agility
Why Agility is Important Today

 
Continuous Design and Reconfigurable Organizations

 
What Agility Means

 
“Change-Friendly” Identity

 
Sensing Change

 
Agile Strategy

 
Zara and Transient Advantages

 
Rapid Prototyping and Experimentation

 
Agile Structure

 
Structure and the “Dual Operating System”

 
Holacracy

 
Agile Process and Lateral Capability

 
Agile Teams

 
Global Collaboration

 
Partnerships and Collaborative Networks

 
Agile People

 
Learning Agility

 
Leadership Agility

 
Agile Rewards

 
Agility and Stability

 
Summary

 
Questions for Discussion

 
For Further Reading

 
 
Chapter 10: Future Directions of Organization Design
Emerging Beliefs about Organizations and Design

 
Work Trends Create Design Challenges

 
Design Challenges Shape Design Process

 
Future Trends in Organization Design Theory and Practice

 
Big Data

 
Digital Technologies, Platforms, and Business Models

 
Sustainability and the Triple Bottom Line

 
Changes in Organization Design Practice: A Case Study of Royal Dutch Shell

 
The Organization Design Practitioner Role and Skills

 
Summary

 
Questions for Discussion

 
For Further Reading

 
 
Appendix
Organization Design Simulation Activity

 
Part I: Strategy

 
Part II: Structure and Process and Lateral Capability

 
Part III: People and Rewards

 
Part IV: Reorganizing

 
 
References

Supplements

Instructor Resource Site

Password-protected Instructor Resources include the following:

  • Test banks provide a diverse range of pre-written options as well as the opportunity to edit any question and/or insert your own personalized questions to effectively assess students’ progress and understanding.
  • Editable, chapter-specific PowerPoint® slides offer complete flexibility for creating a multimedia presentation for your course.
  • Multimedia content includes videos and web resources.
  • EXCLUSIVE, influential SAGE journal content ties important research and scholarship to chapter concepts to strengthen learning.
  • Case Notes are designed for instructors to expand questions to students or initiate class discussion.
  • Discussion questions offer suggestions for sparking class debate and dialogue.

I have used the STAR model for a long time and this textbook handles it well. I also appreciated the section on agility, and innovation.

Professor Ann Feyerherm
Organization and Management, Pepperdine U-Sch Of Bus Mgmt
August 2, 2019
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The text is very good for academic practices. Highly updated.

Ms Laura Salas Arbelaez
Business Administration, Universidad Del Valle (US BU)
September 25, 2019
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Great introductory resource and the create your own organization appendices were so helpful for class.

Dr Trevor Cox
Adult Education and Safety Science, University Of Central Oklahoma
August 7, 2019
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Key features

KEY FEATURES: 

  • A unique chapter on Reorganizing, Managing Change, and Transitions explores the unique challenges of changing an existing design and best practices for managing change.
  • Extensive coverage of the importance of strategy and agility in organization design not typically provided in other texts prepares students to tackle design challenges in the modern workplace.
  • An innovative organization design simulation activity puts students in the role of a design practitioner.
  • Real-world case studies and exercises provide students with practical opportunities to develop their skills and translate theory into practice.
  • The book’s blend of classic and contemporary theory reminds students of theoretical roots while bringing in fresh cutting-edge thinking and new literature reviews that other books gloss over.

Sample Materials & Chapters

Chapter 3. Strategy

Chapter 9. Agility