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Organization Design

Organization Design
Creating Strategic & Agile Organizations

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October 2018 | 352 pages | SAGE Publications, Inc

Structured around Jay Galbraith’s famed “Star Model”, the book explores the five interrelated elements of organization design: strategy, structure, processes, rewards, and people, and uses these factors to advise students on how to be effective when designing and redesigning organizations.

Anderson blends classic and contemporary theories with cutting-edge research and new literature reviews to provide students with a well-rounded perspective on organization design. He also prepares students for the modern workplace by promoting the importance of strategy and agility in organization design, this is covered in the chapter on Reorganizing, Managing Change, and Transitions, which explores the challenges of changing an existing design and best practices for managing change.

Each chapter features a ‘Global Considerations’ section that highlights international issues in organization design, and all other content is supported by real-world case studies and exercises, providing students with practical opportunities to develop their skills.

There is a stand-alone “Organization design simulation activity” at the back of the book which puts students in the role of a design practitioner, this can be reused throughout a course and adapted to include the specific concepts and ideas that a student has covered.

The book is supported by online resources for instructors, including Test banks, PowerPoint slides, Multimedia content, free SAGE journal content, case notes, and discussion questions for the classroom

Suitable reading for students of organizational theory, and organization design & development.

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  
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  
Questions for Discussion  
For Further Reading  
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  
Questions for Discussion  
For Further Reading  
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  
Questions for Discussion  
For Further Reading  
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  
Shared Goals, Processes, and Systems  
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  
Questions for Discussion  
For Further Reading  
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  
Questions for Discussion  
For Further Reading  
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  
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  
Questions for Discussion  
For Further Reading  
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  
Reorganizing and Transition Planning  
Structure, Reporting Relationships, and Staffing  
Pace and Timing  
Scope and Sequencing  
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  
Questions for Discussion  
For Further Reading  
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”  
Agile Process and Lateral Capability  
Agile Teams  
Global Collaboration  
Partnerships and Collaborative Networks  
Agile People  
Learning Agility  
Leadership Agility  
Agile Rewards  
Agility and Stability  
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  
Questions for Discussion  
For Further Reading  
Organization Design Simulation Activity  
Part I: Strategy  
Part II: Structure and Process and Lateral Capability  
Part III: People and Rewards  
Part IV: Reorganizing  


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
June 18, 2019

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
February 25, 2019

Sample Materials & Chapters

Chapter 3. Strategy

Chapter 9. Agility

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ISBN: 9781506349275