Organization E-Book

John Child

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 1239

Veröffentlichungsjahr: 2015

Beschreibung

The definitive organization management text for executives and aspiring business leaders

Organization: Contemporary Principles and Practices, Second Edition is the completely updated and revised landmark guide to "macro" organization theory and design, fully grounded in current international practice. International management expert John Child explores the conditions facilitating the development of new organizational forms and provides up-to-date coverage of the key developments driving new organization structure and practice. This revised Second Edition includes a new introductory section on Organization Theory as well as a complete Instructor Manual updated with new material on the basic principles of organizational design.

With detailed case studies and examples from throughout the UK, Europe, Asia and North America, Organization provides a truly international overview for advanced students and business executives who want to be at the forefront of the evolution in Organization Theory. 21^st Century organizations will be faced with entirely new challenges and opportunities than those faced by previous generations, and emerging business leaders must understand the new "macro" realities in order to succeed. Organization will help readers:

• Understand the "macro" organization, which is distinct from organizational behaviour
• Explore the way organizations fit into the international business environment and global economy
• Analyze the way organizational structure and design affect management performance
• Apply advanced organization theory and principles to day to day management activities

Written by one of the foremost scholars, the fully updated Second Edition of this successful text provides executives and advanced business students with a wide-ranging and trustworthy guide to organizations as the conditions for their survival in our global business environment change.

Leseprobe

CONTENTS

Cover

Series Page

Title Page

Copyright

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

Consequences of Deficiencies in Organization

Notes

Chapter 2: Perspectives on Organizational Design until Recent Times

A Brief Look Into History

One Best Ways of Organizing

The Contingency Approach

Notes

Chapter 3: New Conditions, New Organization

The Retreat from Conventional Forms of Organization

New Conditions, New Organization

New Conditions, New Forms Summarized

New and Conventional Organizational Forms Compared

Notes

Part II: New Internal Forms

Chapter 4: Simpler Structures – Reducing Hierarchy

Hierarchy

Downsizing and Delayering

From Hierarchies to Teams

Notes

Chapter 5: Achieving Integration

The Concept

The Need for Adequate Integration

Achieving Integration is a Challenge

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

Teamworking: An Aid to Integration

Notes

Chapter 6: Control

An Elusive Concept

Control in Organizations: Key Distinctions

Strategies of Control

Control Strategies and Relevant Contingencies

Notes

Chapter 7: Questions of Reward

The Role of Reward Policies

Extrinsic and Intrinsic Rewards

Criteria Applied to Rewards

Expectancy Theory

Conditioning Theory

Notes

Chapter 8: Payment Systems

The Importance of Pay

Methods of Payment

Considerations in the Choice of a Payment System

Trends in Reward Policies Consistent with New Organizational Forms

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

Attractions of Outsourcing

Problems with Outsourcing

The Reaction to Outsourcing and Offshoring Problems

Reaching a Decision on Outsourcing

Creating Successful Outsourcing Partnerships

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

A Pioneer of Virtual Organization: Dell Inc.33

Notes

Chapter 11: Strategic Alliances

What is a Strategic Alliance?

The Significance of Alliances

Alliance Forms

Organizational and Managerial Challenges Posed by Alliances

Alliance Configurations

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

Notes

Part IV: Achieving Effective Organizations

Chapter 13: Managing Organizational Change

The Challenge of Achieving Organizational Change

Internal and External Drivers of Organizational Change

Varieties of Organizational Change

Classifying Approaches to Change

Contexts and Choices

Policies for Successful Planned Change

Notes

Chapter 14: Organizing for Learning1

The Strategic Importance of Organizational Learning

The Nature of Organizational Learning: Key Distinctions

Requirements for Successful Organizational Learning

Learning Through Alliances

Implications for Practice

Notes

Chapter 15: Generating and Utilizing Trust1

Introduction

What is Trust?

The Benefits of Trust

Generating and Sustaining Trust

Guidelines for Cultivating Trust

Notes

Chapter 16: Corporate Governance in New Organizational Forms1

Introduction

Growing Concern about Corporate Governance

The Agency Problem

The Double Agency Problem

The Multiple Agency Problem

Implications for Corporate Governance

Applying Organizational Insights to Corporate Governance Practice

Conclusion

Notes

Part V: Designing Organizations for the 21st Century

Chapter 17: Meeting Strategic Business Needs

Strategic Needs

Notes

Chapter 18: Meeting Strategic Social Needs

The Social Problem

Organization As a Culprit

A Concluding Comment

Notes

Author Index

Subject Index

End User License Agreement

List of Tables

Table 1.1

Table 2.1

Table 2.2

Table 2.3

Table 3.1

Table 3.2

Table 4.1

Table 5.1

Table 6.1

Table 8.1

Table 8.2

Table 9.1

Table 9.2

Table 9.3

Table 9.4

Table 10.1

Table 12.1

Table 12.2

Table 12.3

Table 12.4

Table 14.1

Table 16.1

List of Illustrations

Figure 1.1

Figure 5.1

Figure 6.1

Figure 7.1

Figure 11.1

Figure 12.1

Figure 12.2

Figure 12.3

Figure 12.4

Figure 12.5

Figure 12.6

Figure 12.7

Figure 13.1

Figure 13.2

Figure 13.3

Figure 13.4

Figure 14.1

Figure 14.2

Figure 14.3

Figure 15.1

Figure 17.1

Figure 18.1

Guide

Cover

Table of Contents

Begin Reading

Begin Reading

Part 1

Chapter 1

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“This is an outstanding contribution to literature from a world class academic. His contribution to the field of organizational studies is without parallel and this work is a monumental contribution to the global literature on organizational behavior.”

Sir Cary Cooper, Lancaster University Management School

“John Child has done it again. This accessible and scholarly book brings the analysis of organizational forms where it belongs at the very centre of the fields of organization and strategy.”

Andrew Pettigrew, Saïd Business School, Oxford University

“Conventional, sluggish bureaucracies are being introduced to a new structural vocabulary as they attempt to respond to the challenge of globalization. John Child provides a lucid and engaging guide to this changing world of organizations.”

W. Richard Scott, Department of Sociology, Stanford University

“Written by one of the foremost scholars, John Child captures the leading edge of scientific and practical knowledge about organizations and organizing.”

Andrew H. Van de Ven, Carlson School of Management, Minnesota University

“Professor John Child describes and analyzes clearly some of the important emerging forms of organization and management. The book offers valuable lessons and will appeal to MBA and students in general as well as executives of large and small organizations.”

Marc Verstringhe, Past Chairman, Catering & Allied

“This is more than a reiteration of Child's best-selling textbook. The new work represents a powerful re-statement of the ‘design’ approach to management in the context of today's fluid and indeterminate circumstances.”

Ray Loveridge, Saïd Business School, Oxford University

“A key text which draws together many of John Child's landmark contributions to the field of organization studies. The additional new material in this book reflects an impressive level of scholarly breadth and depth, revealing John Child as a master of understanding complex organizations and processes of organizing.”

David C. Wilson, Open University Business School

“A lucid and comprehensive review of the theory and practice of organization written by one of the world's leading scholars in this field. John Child successfully combines a deep knowledge of organizational theory with acute appreciation of its relevance to modern organizations facing the challenges of the twenty-first century. It will be invaluable both as a text book for students and as a guide for those responsible for running organizations.”

Mark Easterby-Smith, Lancaster University Management School

“Given his years of experience in China and in other international activities, Child has given the book a very intercontinental flavour . . . Its comprehensive review of effective management practices is accompanied by boxed cases that show the practices in action. The book will prove useful to graduate students in business schools, as well as managers in applied settings looking for a new perspective on the problems they face.”

Howard Aldrich, Department of Sociology, University of North Carolina at Chapel Hill

“John Child excels once again at connecting the past, present and future of organizational thought and managerial practice. By deepening its theoretical foundations and expanding its discussion of 21st century topics, this second edition is an exciting and insightful journey for faculty and students alike.”

Guido Möllering, Professor of Organization and Management, Jacobs University Bremen

Organization

Contemporary Principles and Practice

2nd Edition

John Child

This edition first published 2015

© 2015 John Wiley and Sons Ltd

First edition 2005 published by Blackwell Publishing Ltd

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Library of Congress Cataloging-in-Publication Data

Child, John,

Organization : contemporary principles and practices / John Child. – 2nd Edition.

pages cm

Includes bibliographical references and index.

ISBN 978-1-119-95183-4 (pbk.)

1. Organizational behavior. I. Title.

HD58.7.C4853 2015

302.3′5–dc23

2014039494

A catalogue record for this book is available from the British Library.

ISBN 978-1-119-95183-4 (paperback) ISBN 978-1-118-77987-3 (ebk)

ISBN 978-1-118-77990-3 (ebk)

Cover design: Wiley

Preface to Second Edition

The first edition of Organization has been very well received, translated into several languages and used in many countries around the world. It was one of the few comprehensive treatments of its subject that drew on research and experience in order to advance guidelines for policy and practice. Nevertheless, after ten years, a new edition was called for.

My aim in writing this second edition remains the same as that set out in the preface to the original edition (which follows this one). Organization is a vitally important subject that affects our lives in all sorts of ways. Most times it shapes how we work with other people and how we interact with them. The environments in which we spend much of our time, whether work or leisure, are organized ones. This book describes the main features of contemporary organization, looks to their principles or rationales, and places them in a relevant context. My basic intention is to provide the insight that will enable us to appreciate the degree of choice that is available in how we go about organizing our collective activities. While it does not neglect well-established ways of organizing, the book focuses on newer forms of organization that are evolving to cope with the changing conditions of the 21st century. Some of these initiatives point to ways in which we may be able to cope better with the rising expectations we place on organizations. On the whole, there is nowadays much greater scrutiny of how private as well as public organizations perform in terms of both economic and social criteria.

This second edition has been thoroughly revised and updated. In addition, it includes two new chapters. One of them, Chapter 2, reviews the historical development of different perspectives on organization. I have added this chapter in response to suggestions that readers would benefit from having more historical background. It provides an insight into when, how and why conventional thinking on ways of organizing has come about. Despite its past-loading, such conventional thinking continues to exert great influence today.

The addition of the other new chapter, Chapter 18, reflects the fact that how we organize people and their work activities has huge consequences for people's well-being in society at large. Most attention given to organization sees it as a set of arrangements for ensuring that collective tasks are performed well in economic terms, so as to achieve efficiency, adaptation to changing demands and innovation – all in due measure. Chapter 18 examines the other face of organization, which distributes power, rewards, and personal fulfillment often very unequally. The strongly hierarchical basis on which we still tend to organize firms and institutions, particularly larger ones, contributes to a social problem that is growing to alarming proportions. The scale of the problem is borne out by the widespread breakdown of trust in leadership, the growing inequality of income and wealth, and the general sense of powerlessness that threatens the very principle of democracy itself. While there are no easy answers to this dilemma, Chapter 18 explores some of the successful organizational initiatives that can serve to reduce the problem.

A great many friends and colleagues helped and encouraged me to write this book in the first place and they are mentioned with gratitude in the preface to the first edition. Many have continued to play an important role in shaping the knowledge and awareness from which this new edition has benefitted. In particular, I owe a huge debt to my close collaborators Max Boisot (now sadly deceased), Suzana Rodrigues and Kenneth Tse. Homa Bahrami, Stuart Evans, Martin Ihrig, Ray Loveridge, Eugene McKenna, Guido Möllering, and Malcolm Warner have never ceased to encourage me and to feed me with new ideas and insights. I also owe a special debt to Joanna Kamowska who read every chapter in draft, and provided invaluable feedback which it is so difficult to obtain in these times when academics are experiencing ever increasing pressures of work. Jenny Ng, Emma Henshall, and others at Wiley steered the project through many technical difficulties. Rosemary Nixon, formerly at Wiley, kept me focused on the need to produce a second edition and she has constantly encouraged me to publish over the course of many years. I am deeply grateful to all of you and, by no means least, for the tolerance and support that my wife Elizabeth has shown to a project that too often shut me away from her company.

John Child

Birmingham

January 2015

Preface from the First Edition

Organizations in the contemporary world have to adapt and innovate in order to compete if they are firms, or to meet society's growing expectations if they are public service providers. It has become increasingly obvious that conventional forms of organization are not well suited to support these requirements, and a spectrum of alternative approaches is therefore being tried out. These alternatives are usually described as “new organizational forms.”

The emergence of new organizational forms was heralded by Tom Burns and G. M. Stalker's path breaking 1961 book on The Management of Innovation, which identified an “organic” alternative to the machine-like approach of conventional organization. By the 1980s, the so-called “post-bureaucratic” organization was identified, in principle at least, as a clear alternative to the bureaucratic form that had for over a century reflected the philosophy of large-scale, hierarchical, and formalized business. It took until the early 1990s, however, for articles on new and alternative organizational forms to appear with any regularity and for case studies of companies that had applied such forms to become available. Even today, there are remarkably few books that address the subject.

The pace of experimentation and innovation in organizational practice, stimulated by major economic and technological changes, has therefore outstripped the ability of writers on organization to capture and explain what is taking place. The challenge here is not just to offer a systematic description of ongoing changes, important though that is. We also need to make sense of new organizational developments in an attempt to move toward a theory that explains them. Only sound theory can furnish practical guidelines on the consequences of adopting new organizational forms and their relevance to particular situations.

This book aims to describe the main features of contemporary organization, to discern the principles underlying them, and to relate them to their contexts. The intention in so doing is to understand and clarify the choices we have in deciding on particular ways of organizing activities. I believe that such choices should be of great concern to all of us. This is because organization is more than just a set of arrangements for achieving desired results through collective effort, vital though this is. The way we organize and govern our companies and other institutions also affects how benefits, opportunities, and privileges are distributed in society. There is increasing evidence that it has direct effects on our health and personal well-being. This book therefore draws upon research and experience in order to reach an informed view on contemporary organizational practices. Its scope and the contents of each chapter are summarized at the beginning of Chapter 1. Although the book concentrates on the organization of business firms, much of its analysis applies to other areas of organized activity.

Like its ancestor, Organization: A Guide to Problems and Practice (1977, 1984), this book has arisen mainly from my experience in research and consultancy. It has been refined through engagement with the members of MBA classes in the universities of Birmingham, Cambridge, and Hong Kong, who have contributed from their varied experiences of managing and organizing. In writing the book, I have had in mind both people who are practicing management and those who are studying it. For the benefit primarily of students, the chapters close with questions for discussion and endnotes on the main sources used. The endnotes also serve to indicate further reading. Each chapter also begins with a short overview and ends with a summary of key points.

Although organization tends to be regarded as a subject for managers and students of management, I do passionately believe it is a matter of direct and immediate concern to everyone in society. Organization affects all of us in so many ways that we should not be content to leave the decisions on it to “leaders” and “experts.” Organization is not simply a technical matter of finding an optimum solution. It should become apparent from a reading of this book that there are normally alternative ways of organizing to meet a given functional requirement, and that the choice between them is as much a matter of social preference as of scientific rationality. It is important to appreciate that there is some choice in the ways that public, industrial, and other institutions are organized, because it is the expression of a preference between such choices that will take us closer to a fully democratic society.

I have been very fortunate to have enjoyed a great deal of help and encouragement in writing this book. Several friends, especially Homa Bahrami, Ray Loveridge, Eugene McKenna, and Stuart Evans, have for many years been urging me to apply to the contemporary scene the practice-oriented approach I had developed in the earlier book on Organization. It has taken a long time and I hope they feel the result is worth the wait. Suzana Rodrigues, my close collaborator in much recent work, has contributed many telling insights and has never allowed me to stray too far from my roots as a writer on organization despite the competing fascination of China. Periodic engagement with Max Boisot's outstanding analytical mind has been immensely stimulating, as has exposure to the wisdom that Marc Verstringhe has distilled from his career as a successful chief executive. I have also benefited from the exchange of ideas with many colleagues at the Universities of Birmingham, Cambridge, Hong Kong, and Oxford, including Andrew Brown, Peter Clark, David Faulkner, George Frynas, Sally Heavens, Sek Hong Ng, Yigang Pan, Christos Pitelis, Robert Pitkethly, Edmund Thompson, David Tse, and Malcolm Warner. The work of my former doctoral students in those universities has provided many new insights on organization and related topics. Here I should like particularly to mention Roberto Duarte, Said El Banna, Aldemir Drummond, Noreena Hertz, Yuan Lu, Livia Markóczy, Guido Möllering, Stephen Rudman, Terence Tsai, Eric Tsang, Niti Villinger, Roland Villinger, Christine Wong, Daniel Yan, and Yanni Yan.

The years of editing the journal Organization Studies from 1992 to 1996 significantly broadened my appreciation and understanding of the diverse perspectives on the subject of organization. This brings me to express a special appreciation to Sally Heavens, who assisted me in the OS editorial office and then collaborated in work on organizational learning and corporate evolution. Sally has contributed a great deal of editorial effort toward making this book more readable. I am also grateful for the countless ways in which my PA at the Birmingham Business School, Jane Whitmarsh, has helped to deal with many queries at short notice and generally made the preparation of this book run more smoothly. As always, my wife Elizabeth has both offered constructive criticism and suffered the deprivations of having to compete for my time with the word processor.

John Child

Birmingham

June 2004

Part IThe Broad Picture

Chapter 1 Organization and its Importance

Chapter 2 Perspectives on Organizational Design until Recent Times

Chapter 3 New Conditions, New Organization

Introduction to Part I – The Broad Picture

Part I provides some necessary background about organization. It looks at the broad picture rather than specifics. Chapter 1 introduces the nature of organization and the contributions it can make. Chapter 2 then outlines the main developments in organizational design over approximately the past hundred years. Its purpose is to provide an appreciation of what have become “conventional” ways of organizing, which continue to be widely found in practice and are engrained in the thinking of many administrators and managers who make decisions about organization. By contrast, Chapter 3 considers “new” organizational forms in the contexts that have encouraged them to be adopted. The chapter examines the relevance for organization of major developments in the business environment – globalization, new information and communications technologies, the rise of information-intensive and knowledge-based competition, the growing numbers of knowledge workers, and the increasing social expectations being placed on business. The overall message is that new developments in organization can only be appreciated by reference to the changed context in which business now operates.

Chapter 1Organization and Its Importance

What This Chapter Covers

This book focuses on new trends and options in how we organize collective activity. The present chapter defines the key terms organizing, organization, and organizations. It then introduces the components of organization. Some of these are structural in nature, some are concerned with key processes, while others define boundaries. The components of organization are the parameters along which policy choices have to be made. Although there are limits to what the design of organization can achieve, these policy choices are highly consequential because serious problems can arise from inappropriate organization. The chapter closes with examples of such problems and a checklist to help identify their symptoms.

Purpose and Scope of This Book

In contemporary societies most work, and a good deal of leisure activity too, is carried out in cooperation with other people – it is collective. Often people are working with others in the same location, but increasingly it can involve collaboration across physical distances through Internet and satellite connections. The aim of this book is to provide you with useful insights into how good organization is a foundation for success in collective activity.

Although the book focuses on business companies, much of its content is also applicable to the many public and not-for-profit institutions that are also expected to organize themselves for delivering relevant services in an economic manner. The success of any company depends basically on two fundamental requirements: strategy and organization. The two are closely bound together. Strategy “establishes the criteria for choosing among alternative organizational forms.” Yet if its strategy is faulty a company's organization, however sound, cannot compensate for this deficiency. The failure of Kodak to recognize the strategic importance of digital photography is a case in point. On the other hand, an unsuitable organization will handicap a company from delivering sufficiently on its strategy, however well conceived this might be. For example, some business schools fail to capitalize on market opportunities because their faculty are organized in traditional supply-side departments rather than in customer-oriented program teams. Additionally, the formulation of a sound strategy in the contemporary business world relies on knowledge and insight being provided from all levels and units within a company. An inability to motivate and coordinate these inputs because of inadequate organization can prevent a good strategy from being formulated in the first place.