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About the Authors
Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management in the
Owen Graduate School of Management at Vanderbilt University. Professor Daft spe-
cializes in the study of organizational theory and leadership. Professor Daft is a Fellow
of the Academy of Management and has served on the editorial boards of Academy of
Management Journal, Administrative Science Quarterly, and Journal of Management
Education. He was the Associate Editor-in-Chief of Organization Science and served
for three years as Associate Editor of Administrative Science Quarterly.
Professor Daft has authored or co-authored 12 books, including Manage-
ment (Cengage/South-Western, 2010), The Leadership Experience (Cengage/South-
Western, 2008), and What to Study: Generating and Developing Research Questions
(Sage, 1982). He also published Fusion Leadership: Unlocking the Subtle Forces That
Change People and Organizations (Berrett-Koehler, 2000, with Robert Lengel). He
has authored dozens of scholarly articles, papers, and chapters. His work has been
published in Administrative Science Quarterly, Academy of Management Journal,
Academy of Management Review, Organizational Dynamics, Strategic Management
Journal, Journal of Management, Accounting Organizations and Society, Manage-
ment Science, MIS Quarterly, California Management Review, and Organizational
Behavior Teaching Review. Professor Daft has been awarded several government
research grants to pursue studies of organization design, organizational innovation
and change, strategy implementation, and organizational information processing.
Professor Daft is also an active teacher and consultant. He has taught man-
agement, leadership, organizational change, organizational theory, and organiza-
tional behaviour. He has been involved in management development and consulting
for many companies and government organizations, including Allstate Insurance,
American Banking Association, Bell Canada, Bridgestone, National Transportation
Research Board, NL Baroid, Nortel, TVA, Pratt & Whitney, State Farm Insurance,
Tenneco, Tennessee Emergency Pediatric Services, the United States Air Force, the
United States Army, J. C. Bradford & Co., Central Parking System, USAA, United
Methodist Church, Entergy Sales and Service, Bristol-Myers Squibb, First American
National Bank, and the Vanderbilt University Medical Center.
Ann Armstrong, Ph.D., has been an instructor at the Rotman School of Management
for the past 17 years. She was the Director of the Social Enterprise Initiative, where
she was responsible for increasing the School’s involvement in the nonprofit/social
enterprise sectors through curriculum design, research, and community engagement.
Now Ann teaches environmental and social innovation in the Rotman Commerce
program as well as organizational behaviour in the B.A.Sc. Engineering program.
Ann also teaches change management in the Executive Development Program as
well as in the MBiotech and Innovation Programs at the University of Toronto at
NEL v
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vi About the Authors
Mississauga. Ann is currently working on a SSHRC–supported research project that

looks at the social economy of Ontario and, in particular, social businesses.
She has written articles on a broad range of subjects, from diversity in the
nonprofit sector to case studies on green social enterprises. Ann has co-authored a
textbook on Canada’s social economy with Drs. Jack Quarter and Laurie Mook.
With Joan Condie, Ann adapted Nelson and Quick’s ORGB for the Canadian
market; the textbook is now in its second Canadian edition.
Ann earned her Ph.D. in organizational behaviour from the University of
Toronto. She has received several teaching awards, including the Gilmour Award
and the Annual Rotman Teaching Award in both the MBA and BCom programs.
In addition, she sits on several not-for-profit boards and consults on organization
design and change for clients in the nonprofit and social enterprise sectors.
NEL
Brief Contents
Preface xvii
Part 1: Introduction to Organizations 1

1. Organizations and Organization Theory 2
Part 2: Organizational Purpose and Structural Design 49

2. Strategy, Organizational Design, and Effectiveness 50
3. Fundamentals of Organizational Structure 90
Part 3: Open-System Design Elements 137

4. The External Environment 138
5. Interorganizational Relationships 178
6. Designing Organizations for the International Environment 212
Part 4: Internal Design Elements 249

7. Manufacturing and Service Technologies 250
8. Organization Size, Life Cycle, and Decline 290
Part 5: Managing Dynamic Processes 327

9. Organizational Culture and Ethical Values 328
10. Innovation and Change 368
11. Decision-Making Processes 408
12. Conflict, Power, and Politics 452
Integrative Cases 490

1.0 IKEA: Scandinavian Style 491
2.0 The Hospital for Sick Children (SickKids®) 495
3.0 Costco: Join the Club 502
4.0 “Ramrod” Stockwell 505
5.0 Make Green Delicious: Sustainability at Jamie Kennedy Kitchens 508
6.0 The Donor Services Department 523
7.0 The War of the Woods: A Forestry Giant Seeks Peace 527
8.0 Chiquita in Colombia 538
9.0 Genocide in Rwanda: Leadership, Ethics and Organizational “Failure” in a Post-Colonial Context 542
10.0 The International Career Opportunity: From Dream to Nightmare in Eight Weeks 553
References 561
Glossary 609
Name Index 619
Organization Index 629
Subject Index 633
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Contents
Preface xvii
Part 1: Introduction to Organizations 1
Chapter 1: Organizations and Dimensions of Organizational Design 22

Organization Theory 2 Contextual Dimensions, 24
In Practice: EllisDon, MOCCA, Tim Hortons 25
A Look Inside: Air Canada 3
Performance and Effectiveness Outcomes, 26
Organization Theory in Action 5
In Practice: Mackenzie Valley Natural Gas Pipeline
You & Design: Evolution of Style 5 Project (The Pipeline Project). 28
Topics, 6 Contemporary Organizational Design, 29
● Efficient Performance versus the Learning
The Evolution of Organization Theory and Design 7
Organization, 31
Historical Perspectives, 7
●Current Challenges, 9 In Practice: Evergreen and the Brick Works 33
Leading by Design: The Rolling Stones 11 Framework for the Book 34
Purpose of This Chapter, 13 Levels of Analysis, 34 ● Plan of the Book, 36
●Plan of Each Chapter, 36
What is an Organization? 13
Summary and Interpretation 37
Definition, 14 ● Types of Organizations, 14
● Importance of Organizations, 16
Chapter 1 Workbook: Measuring Dimensions of
Book Mark 1.0: The Company: A Short History of a Organizations 39
Revolutionary Idea 17 Case for Analysis: Teleflex Canada: A Culture
Perspectives on Organizations 18 of Innovation 40
Open Systems, 19 ● Organizational
Configuration, 20
Part 2: Organizational Purpose and Structural Design 49
Chapter 2: Strategy, Organizational You & Design: Your Strategy/Performance Strength 53

Design, and Effectiveness 50 The Role of Strategic Direction in
Organizational Design 54
A Look Inside: Tim Hortons 51
Organizational Purpose 56
Purpose of This Chapter, 52
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x Contents
Mission, 56 ● Operative Goals, 57

Book Mark 3.0: The Future of Management 96
Leading by Design: Four Seasons 59
Horizontal Information Linkages, 97
The Importance of Goals, 60
In Practice: Imagination Limited (Imagination) 100
A Framework for Selecting Strategy and Design 61
In Practice: Ford Motor Company (Ford) 101
Porter’s Competitive Strategies, 62
Organizational Design Alternatives 102
In Practice: WestJet Airlines Limited (WestJet) 63
Required Work Activities, 102 ● Reporting
Miles and Snow’s Strategy Typology, 64 Relationships, 102 ● Departmental
In Practice: Volvo Car Corporation (Volvo) 65 Grouping Options, 103
Book Mark 2.0: Good Strategy Bad Strategy: The Functional, Divisional, and Geographical
Difference and Why It Matters 66 Designs 104
How Strategies Affect Organizational Functional Structure, 104 ● Functional
Design, 67 ● Other Factors Affecting Structure with Horizontal Linkages, 105
Organizational Design, 68 In Practice: Mountain Equipment Co-op (MEC) 105
Assessing Organizational Effectiveness 70 Divisional Structure, 105
Contingency Effectiveness Approaches 70 In Practice: Microsoft Corporation (Microsoft) 107
Resource-based Approach, 71 Geographical Structure, 109
● Internal-Process Approach, 72
Leading by Design: Médecins sans Frontières (MSF) 110
● Goal Approach, 73
Matrix Structure 111

In Practice: Loblaw 74
Conditions for the Matrix, 112 ● Strengths
An Integrated Effectiveness Model, 75
and Weaknesses, 114
● The Balanced Scorecard, 78
In Practice: Englander Steel 115

New Directions 80
Horizontal Structure 117
Characteristics, 118
Chapter 2 Workbook: Identifying Company In Practice: Chemainus Sawmill (Chemainus) 119
Goals and Strategies 82
Strengths and Weaknesses, 120
Case for Analysis: Jones Soda* 83
Virtual Network Structure 121
Case for Analysis: “I want there to be!”: How the Structure Works, 121 ● Strengths
Apple Inc.’s Foxconn Test 86 and Weaknesses, 122
Chapter 2 Workshop: Competing Values 89 Hybrid Structures 123
Applications of Structural Design 124
Chapter 3: Fundamentals of Structural Alignment, 125
Organizational Structure 90 In Practice: The Canadian Inquisition (The Inquisition) 126
A Look Inside: Desjardins Group (Desjardins) 91 Symptoms of Structural Deficiency, 127
Purpose of This Chapter, 92 New Directions 127
You & Design: The Pleasure/Pain of Working on a
Team 93 Chapter 3 Workbook: You and Organizational
Organizational Structure 93 Structure 130
Information-Processing Perspective on Structure 94 Case for Analysis: Aquarius Advertising Agency 131
Vertical Information Linkages, 95 Case for Analysis: Eva’s Phoenix Print Shop 134
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Contents xi
Part 3: Open-System Design Elements 137
Chapter 4: The External Environment 138 Case for Analysis: The Paradoxical Twins:
Acme and Omega Electronics 169
A Look Inside: Nokia 139 Case for Analysis: Vancity: Doing Good, Doing Well 171
You & Design: Mind and Environment 140
Chapter 5: Interorganizational
Relationships 178
The Environmental Domain 141
Task Environment, 142 A Look Inside: Toyota Motor Corporation (Toyota) 179
In Practice: Kraft Foods (Kraft) 144 Purpose of This Chapter, 180

General Environment, 144 You & Design: Personal Networking 181
● International Context, 146 Organizational Ecosystems 181
In Practice: Ogilvy & Mather 146 Is Competition Dead?, 182
Environmental Uncertainty 147 In Practice: Google 183
Simple–Complex Dimension, 148 The Changing Role of Management, 184
● Stable–Unstable Dimension, 148 ● Interorganizational Framework, 184
Book Mark 4.0: Confronting Reality: Resource Dependence 185

Doing What Matters to Get Things Right 149 Resource Strategies, 186 ● Power
Framework, 150 Strategies, 186
Adapting to Environmental Uncertainty 152 Collaborative Networks 187
Positions and Departments, 152 ● Buffering Why Collaboration?, 187 ● From
and Boundary Spanning, 152 Adversaries to Partners, 188
In Practice: Joe Fresh Style 154 Book Mark 5.0: Managing Strategic Relationships:
Differentiation and Integration, 154 The Key to Business Success 190
● Organic Versus Mechanistic Management
In Practice: Bombardier 190
Processes, 156 ● Planning, Forecasting, and
Responsiveness, 157 Population Ecology 191
Leading by Design: Manitoba Telecom Services (MTS) 158 Organizational Form and Niche, 192
●Process of Ecological Change, 193
Framework for Organizational Responses
to Uncertainty 158 Leading by Design: Shazam—It’s Magic! 194
Resource Dependence 160 Strategies for Survival, 195

Controlling Environmental Resources 160 In Practice: Apotex 196
Establishing Interorganizational Institutionalism 196

Linkages, 161 In Practice: Walmart 198
In Practice: TSX Group and Montréal Exchange 161 The Institutional View and Organizational
Controlling the Environmental Domain, 163 Design, 199 ● Institutional Similarity, 199
In Practice: Walmart 164 Summary and Interpretation 201
Organization–Environment Integrative Chapter 5 Workbook: Management Fads 203

Framework, 165
Case for Analysis: Apple 204
Case for Analysis: Hugh Russel, Inc. 207
Chapter 4 Workbook: Organizations You Rely On 168 Chapter 5 Workshop: Ugli Orange Case 210
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xii Contents
Chapter 6: Designing Organizations Leading by Design: Asea Brown Boveri Ltd. (ABB) 228
for the International Environment 212 Building Global Capabilities 229
The Global Organizational Challenge, 229
A Look Inside: Alcan 213
In Practice: Impact Hub 231
You & Design: Are You Ready to Fill an
Global Coordination Mechanisms, 232
International Role? 213
Cultural Differences in Coordination and Control 234
National Value Systems, 234
Entering the Global Arena 215 ● Three National Approaches to
Motivations for Global Expansion, 216 Coordination and Control, 237

● Globalization Issues, 218 ● Stages of Book Mark 6.0: Why Mexicans Don’t Drink Molson:
International Development, 218 Rescuing Canadian Business from the Suds of Global
● Global Expansion Through International
Obscurity 237
Strategic Alliances, 220
The Transnational Model of Organization 239
In Practice: The BRANDAID Project (BRANDAID) 221
Designing Structure to Fit Global Strategy 221
Model for Global Versus Local Chapter 6 Workbook: Appreciating
Opportunities, 222 ● International Cultural Differences 244
Division, 224 ● Global Product Structure, 225 Case for Analysis: Ivanhoe Mines 244
● Global Geographic Structure, 225
Case for Analysis: The “Pianistic Other” in Shenzhen 246
In Practice: McCain Foods Limited (McCain) 227
Chapter 6 Workshop: Working Abroad 248
Global Matrix Structure, 227
Part 4: Internal Design Elements 249
Chapter 7: Manufacturing and Service Performance and Structural Implications, 265

Technologies 250 Core Organization Service Technology 267
Service Firms, 267
A Look Inside: Manitobah Mukluks 251
In Practice: Home Depot 268
You & Design: Manufacturing versus Service 252
Designing the Service Organization, 269
Purpose of This Chapter, 253 In Practice: Pret a Manger (Pret) 270
Core Organization Manufacturing Technology 254 Noncore Departmental Technology 272
Manufacturing Firms, 254 Variety, 272 ● Analyzability, 272
In Practice: Maple Leaf Foods Inc. (Maple Leaf) 256 ● Framework, 273
Strategy, Technology, and Performance, 257 Department Design 275

In Practice: Doepker Industries (Doepker) 257 In Practice: Aravind Eye Hospital (Aravind) 277
Contemporary Applications 258 Workflow Interdependence among Departments 277
In Practice: Eyecandy Signs Inc. (Eyecandy) 258 Types, 277 ● Structural Priority, 280
● Structural Implications, 280
Book Mark 7.0: Inviting Disaster: Lessons from
the Edge of Technology 259 In Practice: Sports Teams 281
Flexible Manufacturing Systems, 259 Impact of Technology on Job Design 281
● Lean Manufacturing, 261
Job Design, 282 ● Sociotechnical
In Practice: Sealy 262 Systems, 283
In Practice: Garrison Guitars (Garrison) 263 In Practice: General Electric at Bromont,
Leading by Design: Dell Computer 264 Québec (Bromont) 284
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Contents xiii
Chapter 7 Workbook: Bistro Technology 287 Bureaucracy in a Changing World 308

Case for Analysis: Metropolitan College 288 Organizing Temporary Systems for
Flexibility and Innovation, 308 ● Other
Chapter 8: Organization Size, Approaches to Reducing Bureaucracy, 309
Life Cycle, and Decline 290 Leading by Design: The Salvation Army 310
Organizational Control Strategies 311
A Look Inside: Interpol 291
Bureaucratic Control, 311
You & Design: What Size Organization for You? 292 In Practice: Shizugawa Elementary School Evacuation
Purpose of This Chapter, 293 Centre and Toyota Motors 312
Organization Size: Is Bigger Better? 293 Market Control, 313
Pressures for Growth, 293 ● Dilemmas of In Practice: Imperial Oil Limited 313
Large Size, 294 Clan Control, 314
Book Mark 8.0: Small Giants: Companies That In Practice: Labatt Brewing Company Limited
Choose to Be Great Instead of Big 297 (Labatts) 315
Organizational Life Cycle 298 Organizational Decline and Downsizing 315
In Practice: The Grackle Coffee Company (Grackle) 298 Definition and Causes, 316 ● A Model of
Stages of Life-Cycle Development, 298 Decline Stages, 317
In Practice: Nike 301 In Practice: T. Eaton Company Limited (Eaton’s) 318
Organizational Characteristics During the Downsizing Implementation, 319
Life Cycle, 302 In Practice: Dofasco (now ArcelorMittal Dofasco) 320
Organizational Bureaucracy and Control 304 Summary and Interpretation 320
What Is Bureaucracy?, 304 Chapter 8 Workbook: Control Mechanisms 322
In Practice: United Parcel Service (UPS) 306 Case for Analysis: Daily Grind Coffee Inc. 323
Size and Structural Control, 306
Case for Analysis: I Love Rewards Inc. 324
Part 5: Managing Dynamic Processes 327
Chapter 9: Organizational Culture The Bureaucratic Culture, 340 ● A Culture

and Ethical Values 328 of Discipline, 340 ● Culture Strength and
Organizational Subcultures, 341
A Look Inside: Birks & Mayors Inc. (Birks) 329 Organizational Culture, Learning,
Purpose of This Chapter, 329 and Performance 342
You & Design: Organization Culture Preference 330 Leading by Design: WestJet Airlines Ltd. (WestJet) 343
In Practice: Lululemon athletica inc. (Lululemon) 344
Organizational Culture 330
Ethical Values and Social Responsibility 345
What Is Culture?, 332 ● Emergence and
Purpose of Culture, 333 Sources of Individual Ethical Principles, 346
●Managerial Ethics and Social
In Practice: Zappos.com (Zappos) 333
Responsibility, 347
Interpreting Culture, 334
Book Mark 9.0: The Corporation: The Pathological
Organizational Design and Culture 337 Pursuit of Profit and Power 347
The Adaptability Culture, 337 Does It Pay to Be Good?, 349
● The Mission Culture, 338
Sources of Ethical Values in Organizations 350
In Practice: Sandvine 338
Personal Ethics, 351 ● Organizational
The Clan Culture, 339 Culture, 351 ● External Stakeholders, 352
In Practice: Mountain Equipment Co-op (MEC) 339 How Leaders Shape Culture and Ethics 353
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xiv Contents
In Practice: Harvard Business School (HBS) 353 Organization Development Interventions

Values-based Leadership, 354 ● Formal for Culture Change, 393
Structure and Systems, 355 Strategies for Implementing Change 394
In Practice: TELUS 358 Leadership for Change, 395
Organizational Culture and Ethics in a Global Book Mark 10.0: The New Entrepreneurs:
Environment 358 Building a Green Economy for the Future 395
Summary and Interpretation 360 Barriers to Change, 396
Chapter 9 Workbook: Shop ’Til You Drop: In Practice: ExperiencePoint 397
Organizational Culture in the Retail World 362 Techniques for Implementation, 398
Case for Analysis: Closing the Gap Healthcare Group 363 Summary and Interpretation 401
Case for Analysis: Queen’s Returns Radler Gift 364 Chapter 10 Workbook: Innovation Climate 402
Chapter 9 Workshop: Where to Begin—A Framework Case for Analysis: Change at Defence Research
for Developing Your CSR Strategy 365 and Development—DRDC Toronto 403
Case for Analysis: Osoyoos Band 405
Chapter 10: Innovation and Change 368
A Look Inside: Toyota Motor Corporation 369
Chapter 11: Decision-Making
Processes 408
You & Design: Are You Innovative? 370
A Look Inside: Anishinabek Nation 409
Innovate or Perish: The Strategic Role of Change 371 You & Design: Making Important Decisions 410
Incremental Versus Radical Change, 372 Purpose of This Chapter, 411
● Strategic Types of Change, 374 Definitions 411
Leading by Design: Google 375 Individual Decision Making 412
Elements for Successful Change 376 Rational Approach, 412
In Practice: Cirque du Soleil 379 In Practice: Alberta Consulting 414
Technology Change 379 Bounded Rationality Perspective, 415
The Ambidextrous Approach, 380 Leading by Design: Canopy Planet (Canopy) 418
●Techniques for Encouraging Technology Book Mark 11.0: Blink: The Power of Thinking
Change, 381 without Thinking 419
In Practice: Pratt & Whitney Canada (P&WC) 383
In Practice: Paramount Pictures (Paramount) 420
New Products and Services 384 Organizational Decision Making 421
New Product Success Rate, 384 Management Science Approach, 421
● Reasons for New Product Success, 385 In Practice: Algorithms Rule! 422
● Horizontal Coordination Model, 385 Carnegie Model, 423
In Practice: Procter & Gamble (P&G) 387 In Practice: Encyclopaedia Britannica 425
Achieving Competitive Advantage: Incremental Decision Process Model, 425
The Need for Speed, 387
In Practice: Gillette Company 428
Strategy and Structure Change 388
The Learning Organization 429
The Dual-Core Approach, 389
● Organizational Design for Implementing
Combining the Incremental Process
Administrative Change, 389 and Carnegie Models, 429
Culture Change 391 In Practice: Bombardier Inc. 430
Forces for Culture Change, 391 Garbage Can Model, 431
In Practice: WestJet Airlines Ltd. (WestJet) 392 In Practice: I ♥ Huckabees 434

Contingency Decision-Making Framework 435
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Contents xv
Problem Consensus, 435 ● Technical Tactics for Increasing Power, 474

Knowledge About Solutions, 436 ●Political Tactics for Using Power, 475
● Contingency Framework, 436
Book Mark 12.0: Influence: Science and Practice 477
Special Decision Circumstances 439 In Practice: Yahoo! 477
High-Velocity Environments, 439 Tactics for Enhancing Collaboration, 478
● Decision Mistakes and Learning, 440
● Escalating Commitment, 441

In Practice: Brotherhood of Locomotive Engineers,
United Transportation Union, and Canadian
In Practice: BlackBerry 441 Pacific Railway (CPR) 478
Summary and Interpretation 442 Summary and Interpretation 481
Chapter 11 Workbook: Decision Styles 444
Chapter 12 Workbook: How Do You Handle Conflict? 482
Case for Analysis: The Big Carrot 444
Case for Analysis: Nackawic Community Story 447 Case for Analysis: The Irving Dynasty to End? 484
Case for Analysis: The National Hockey
Chapter 11 Workshop: Mist Ridge 449
League Collective Bargaining Agreement 485
Chapter 12 Workshop: Understanding Conflict
Chapter 12: Conflict, Power, in Your Teams 489
and Politics 452
A Look Inside: Harold Ballard and the Toronto Integrative Cases 490
Maple Leafs 453
1.0 IKEA: Scandinavian Style 491
You & Design: Political Skills 454 2.0 The Hospital for Sick Children
Purpose of This Chapter, 454 (SickKids®) 495
Intergroup Conflict in Organizations 455 3.0 Costco: Join the Club 502
Sources of Conflict, 456 4.0 “Ramrod” Stockwell 505
Leading by Design: Bennett Jones LLP 458 5.0 Make Green Delicious: Sustainability at
Rational Versus Political Model, 458 Jamie Kennedy Kitchens 508
Power and Organizations 460 6.0 The Donor Services Department 523
Individual Versus Organizational Power, 461 7.0 The War of the Woods: A Forestry
● Power Versus Authority, 461 Giant Seeks Peace 527
● Vertical Sources of Power, 462 8.0 Chiquita in Colombia 538
● The Power of Empowerment, 465
9.0 Genocide in Rwanda: Leadership, Ethics and
In Practice: Semco 466 Organizational “Failure” in a
Horizontal Sources of Power, 466 Post-Colonial Context 542
In Practice: Dr. Nancy Olivieri and Apotex 469 10.0 The International Career Opportunity:
From Dream to Nightmare in Eight Weeks 553
Political Processes in Organizations 471
References 561
Definition, 471 ● When Is Political Activity Glossary 609
Used?, 472 Name Index 619
In Practice: Liberal Party of Canada 472 Organization Index 629
Using Power, Politics, and Collaboration 473 Subject Index 633
NEL
Preface
When I was approached to prepare a Canadian version of the ninth edition of

Dr. Daft’s Organization Theory and Design, I was excited to build on his wonderful
book. In the process, I learned so much about Canada and, particularly, the variety
of organizations that spans from sea to sea to sea. As I worked on the third Canadian
edition, I was reminded of the richness of the Canadian experience. I hope that I
have been able to capture that richness for both the students and the faculty who
will use this book. Our organizations are remarkably diverse, as we are! I hope that
this edition excites you about the variety—and the impact—of our organizations.
Distinguishing Features of the Third

Canadian Edition
The Canadianization of Dr. Daft’s book has been extensive. However, a number of
U.S. and international examples were retained or updated to accurately represent
Canada’s role in the world.
Each chapter has a Dilbert strip to highlight the chapter’s concepts in a light-
hearted or cynical but insightful way. Scott Adams, the creator of Dilbert, reminds
us that when we listen to our egos, rather than to analysis, we may make poor
decisions.1 I hope this book’s contents will help you subordinate your ego and
instead use good theory, supported by solid research, so that you can be an effective
organizational actor.
Leading by Design The Leading by Design features describe organizations

that have undergone a major shift in organizational design, strategic direction,
values, or culture as they strive to be more competitive in today’s turbulent
global environment. Many of these organizations are applying new design ideas,
such as network organizing, e-business, or temporary systems for flexibility and
innovation. Examples of Leading by Design organizations include Four Seasons,
Médecins sans Frontières (MSF), Manitoba Telecom Services, Dell, and WestJet
Airlines.
Book Marks Book Marks, a special feature of this text, are book reviews that
reflect current issues of concern for managers working in real-life organizations.
These reviews describe the varied ways organizations are meeting the challenges
of today’s changing environment. Book Marks in the third Canadian edition
include a review of Andrea Mandel-Campbell’s Why Mexicans Don’t Drink
Molson, Joel Bakan’s The Corporation: The Pathological Pursuit of Profit and
Power, and Andrew Heinztman’s The New Entrepreneurs: Building a Green
Economy for the Future.
NEL xvii
xviii Preface
Case Examples This edition contains new examples to illustrate theoretical con-
cepts. Many examples are Canadian, and all are based on real organizations. They
include Teleflex Canada, Metropolitan College, The Daily Grind Inc., The Big
Carrot, and Vancity. Some are international, such as Apple Inc.’s Foxconn Test.
In Practice There are many cases used within chapters to illustrate specific con-
cepts. They include Bombardier Inc., Harvard Business School, Garrison Guitars,
Aravind Eye Hospital, Joe Fresh Style, Apotex, McCain Foods, Doepker Industries,
lululemon athletica, zappos.com, and Experiencepoint, to name a few.
A Look Inside This feature introduces each chapter with a relevant and interesting
organizational example. Many examples are Canadian, and all are based on real
organizations. Examples include Air Canada, Alcan, Tim Hortons, Manitobah
Mukluks, and Anishinabek Nation.
ACT! ACT, which stands for Apply-Compare-Think, helps students personalize

their understanding of the chapter’s concepts.
You and Design This feature is designed to help students achieve a personal and
practical understanding of the material by answering short questionnaires about a
key concept in each chapter.
Text Exhibits Frequent exhibits are used to help students visualize organizational
relationships, and some of the artwork has been redone to communicate concepts
more clearly.
Summary and Interpretation The Summary and Interpretation section tells students
how the chapter points are important in the broader context of organizational theory.
Cases for Analysis These cases are tailored to chapter concepts and provide a
vehicle for student analysis and discussion.
Integrative Cases The integrative cases at the end of the text are designed to encourage
in-depth discussion and involvement. Many are new to this edition. The cases include
IKEA: Scandinavian Style, The Hospital for Sick Children (SickKids®), Costco: Join the
Club, “Ramrod” Stockwell, Make Green Delicious: Sustainability at Jamie Kennedy
Kitchens, The Donor Services Department, The War of the Woods: A Forestry Giant
Seeks Peace, Chiquita in Colombia, Genocide in Rwanda: Leadership, Ethics and Orga-
nizational “Failure” In a Post-Colonial Context, and The International Career Oppor-
tunity: From Dream to Nightmare in Eight Weeks.
New Concepts
Some concepts have been added or expanded in this edition. Updated material has
been provided on culture, learning, and performance; virtual network organization
structures; applying ethics to create socially responsible organizations; lean manu-
facturing; e-commerce; political tactics for increasing and using managerial power;
and the use of global coordination mechanisms for transferring knowledge and
innovation. Many ideas are aimed at helping students learn to design organizations
NEL
Preface xix
for an environment characterized by uncertainty; a renewed emphasis on ethics

and social responsibility; and the need for a speedy response to change, crises, or
shifting customer expectations. In addition, coping with the complexity of today’s
global environment is explored thoroughly. To help students see the relationships
among the concepts, I have designed a course/concept map, which is presented in
Chapter 1.
In the third edition, students are challenged directly to look at the various
theories critically. For example, students are alerted to importance of looking
beyond the “accepted wisdom” on topics such as lean manufacturing and glo-
balization and more generally to the implicitly capitalist framework of organi-
zational theory.
Chapter Organization
Each chapter is highly focused and is organized into a logical framework. Many orga-
nization theory textbooks treat material in sequential fashion, such as “Here’s View A,
Here’s View B, Here’s View C,” and so on. Organization Theory and Design shows
how these views apply in organizations. Moreover, each chapter sticks to the essential
point. Students are not introduced to extraneous material or confusing methodological
squabbles that occur among organizational researchers. The body of research in most
areas points to a major trend, which is discussed here. Several chapters develop a frame-
work that organizes major ideas into an overall scheme.
As I was working on the book, I often solicited ideas from my undergraduate
and graduate students; I am sure that they will see their impact! The combina-
tion of organization theory concepts, book reviews, examples of organizations
recommended by the students, case illustrations, experiential exercises, self-
reflection tools, and other teaching devices is designed to effectively meet stu-
dents’ learning needs.
Chapter Changes in the Third Canadian Edition

At the suggestion of the thoughtful reviewers, more small and medium-sized
organizational examples were added throughout the text. The book now has
12 chapters. Key material from a previous chapter has been incorporated in other
chapters; for example, the balanced scorecard was added to Chapter 2 as one
reviewer suggested.
● Chapter 1: Organizations and Organizational Theory
– The Air Canada story has been updated.
– The history of the discipline receives more prominent attention.
– International and nonprofit examples have been added.
– Evergreen and the Brick Works has been added as an In Practice box.
● Chapter 2: Strategy, Organizational Design, and Effectiveness
– Both updated and new organizational examples, such as Volvo Car
Corporation, are included. More nonprofit examples are also included.
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xx Preface
– There is a new Book Mark, Good Strategy Bad Strategy: The Difference and
Why It Matters.
– The new Case for Analysis, “I want there to be!”: Apple Inc.’s Foxconn Test,
describes the challenges faced by Apple in its dealings with Foxconn.
● Chapter 3: Fundamentals of Organizational Structure
– There is a new In Practice box about Mountain Equipment Co-op’s gover-
nance and structure.
– The Microsoft In Practice box was updated.
● Chapter 4: The External Environment
– The introduction looks at how organizations come and go to the extent they
can adjust to the demands of their environments.
– A new In Practice box looks at Kraft’s challenges in meeting changing cus-
tomers’ tastes.
– The Joe Fresh In Practice box was updated to include the tragic fire at its
supplier’s factory in Bangladesh.
● Chapter 5: Interorganizational Relationships
– A new In Practice box on Google was added.
– Shazam’s current competitive landscape was added.
● Chapter 6: Designing Organizations for the International Environment
– Cole + Parker’s innovative business model was described.
– A discussion on the concerns about globalization was added.
– The BRANDAID Project In Practice box was updated to highlight its inter-
national reach.
– A new In Practice box, Impact Hub, describes a values-driven and organic
international organization.
● Chapter 7: Manufacturing and Service Technologies
– The new A Look Inside box describes the design and manufacturing process
of Manitobah Mukluks, an Aboriginal organization that produces stylish
mukluks.
– A new In Practice box describes Eyecandy, a small company in Halifax that
combines old and new technologies.
– A new In Practice box looks at how Sealy uses lean manufacturing principles.
– A critique of lean manufacturing is included.
● Chapter 8: Organization Size, Life Cycle, and Decline
– A new In Practice box was added that looks at the fallout from the tsunami in
Japan at the Shizugawa Elementary School Evacuation Centre, and discusses
the limitations of top-down bureaucracy at Toyota Motors.
NEL
Preface xxi
– The current threats to Sears Canada’s future were added to the In Practice
about Eaton’s demise.
– The In Practice box on the Grackle Coffee Company was updated.
● Chapter 9: Organizational Culture and Ethical Values
– A discussion on organizational identity was added.
– A new In Practice box on zappos.com discusses the importance and impact
of culture.
– Several In Practice boxes were updated.
● Chapter 10: Innovation and Change
– New material about Kurt Lewin’s influence on change was added.
– The differences between the concepts of innovation and change were
highlighted.
● Chapter 11: Decision-Making Processes
– A new In Practice box describes the series of decisions that contributed to
BlackBerry’s considerable difficulties.
– Some statistics were updated.
● Chapter 12: Conflict, Power, and Politics

– Etsy was added as an example of conflict in an artisanal organization.
– Both the Bennett Jones and Conrad Black examples were updated.
– A discussion on the importance of empowerment was added.
– An updated account of Semco’s empowerment strategy was included.
References
1. S. Adams,“The Loser Decision” (2007) at http://dilbertblog.typepad.com/the_dilbert_
blog/2007/07/the-loser-decis.html (accessed March 30, 2014).
About the Nelson Education Teaching

Advantage (NETA)
The Nelson Education Teaching Advantage (NETA) program delivers research-
based instructor resources that promote student engagement and higher-order
thinking to enable the success of Canadian students and educators. To ensure
the high quality of these materials, all Nelson ancillaries have been professionally
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Be sure to visit Nelson Education’s Inspired Instruction website at http://www
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instructors who have used NETA supplements and seen student engagement increase!
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Teaching Your Students: NETA Presentation has been developed to help instruc-
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NETA PowerPoints features slides with improved readability, more multi-media
and graphic materials, activities to use in class, and tips for instructors on the Notes
page. A copy of NETA Guidelines for Classroom Presentations by Maureen Stone
is included with each set of PowerPoint slides.
Technology in Teaching: NETA Digital is a framework based on Arthur

Chickering and Zelda Gamson’s seminal work “Seven Principles of Good Practice
In Undergraduate Education” (AAHE Bulletin, 1987) and the follow-up work by
Chickering and Stephen C. Ehrmann, “Implementing the Seven Principles: Tech-
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NETA Test Bank: This resource includes over 400 multiple-choice questions written
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completed in two hours and a quarter. We were surprised to find that
after eight or ten miles all signs of destruction ceased. The first
villages were in ruins, like Messina; and in the fields soldiers were
digging great rows of trenches, in which they deposited lime:
obviously the sea was no longer to receive all the dead. But soon we
came upon towns with only a few fallen houses; before long a
mutilated roof was a curiosity; and fifteen miles from Messina the
country presented a completely normal appearance. We did not
realize then that those villages between Messina and Taormina were
in greater distress than any district, probably, in the whole of Sicily or
Calabria. Thousands, perhaps tens of thousands, of refugees from
the city fled on foot to these little towns, imploring charity. The
inhabitants received them with true hospitality and gave them of their
best. But as the days and weeks passed the supply of food ran
short. Nothing arrived by rail; the trains were filled with cargoes for
Messina or else for Taormina or Catania; charity passed the little
places by. It was a month after the earthquake that two American
gentlemen from Taormina, Messrs. Wood and Bowdoin, discovered
and reported the incredible distress of this starving rural population.
And now another American, Mr. Billings, of Boston, is devoting
himself to the relief of this district and is spending there the principal
part of the generous offerings of Massachusetts.
TAORMINA.
Taormina was full of rumors. For a week the only news had been
supplied by wounded refugees, distraught with fear and misery; in
their description the earthquake had become almost a supernatural
event. Strange lights had blazed in the sky; a comet had struck the
earth and raised the waters of the deep. Luckily the wires to Catania
and Syracuse, and from Catania to Palermo, were open. By
telegraphing to all of these cities and by searching the hotel registers
of Taormina, we were able to find nearly all the names on our lists.
There were many Americans still in Taormina and many English. All
of them were working together, distributing relief and caring for the
sick. A hundred and fifty refugees were in the hospital of Taormina
and three hundred and eighty in the little fishing village of Giardini at
the foot of the cliff. Our countrymen were working night and day to
help them, giving them food and clothing; and instead of complaining
of the heavy burden of so many patients, they begged us to send
more. One or two of them met every train from Messina, to distribute
bread to the hungry passengers. The ladies devoted themselves
chiefly to the hospitals, where they worked with unremitting energy.
BACK TO MESSINA.
Our brief glance at the efficient relief of Taormina made the
conditions at Messina, upon our return, seem even more desperate
than before. Here the problem was vastly complicated by the
dispersion of the population and the lack of any registers of
inhabitants. The scarcity of houses had driven the population to take
refuge, so far as possible, in the hill villages surrounding the town.
Here most of the families were installed, not only the able-bodied,
but the sick and wounded as well. One of each family would spend
the days in Messina, trying to procure enough food to keep his
relatives alive. The complete lack of transport animals and the
absorption of the soldiers in the work of rescue, made relief
expeditions to the villages impossible. For food distributions in
Messina the rule had been adopted; one man, one loaf. The
absence of registers made it possible for a strong man to push
repeatedly to the head of the line, and to get bread at all the
distributing places in succession. The result was a more or less
disorderly rush for bread at all the distributing points, and the
exclusion of all but the strongest, while many worthy families
suffered from hunger in the midst of comparative plenty.
On the evening of our first arrival at Messina, I had a chance to
talk to Senator Duranti, the chief of a hospital expedition sent by the
order of the Cross of Malta. I asked him what articles of food,
clothing and medical supplies were most needed, and how the
American money accumulating in Rome could be spent with most
profit to Messina. He told me that medical stores of all kinds were
sadly wanted, and that there was still a lack of food, bread,
macaroni, olive oil, butter, and especially milk—for the women and
children—and also underclothes and shirts. The milk should be
sterilized, not condensed, because the ignorant peasant women
could not be induced to give their children an unaccustomed food,
especially if it had to be prepared or mixed. Acting upon Senator
Duranti’s advice, we telegraphed that night to the Ambassador in
Rome for the enumerated supplies. The U. S. despatch boat
Scorpion, which had just arrived from Constantinople, was starting
for Naples to coal. Her commander, Captain Logan, kindly took our
dispatches to the Ambassador, and brought back the supplies, which
we received on the 6th. At the same time we learned that an
American relief ship was being stocked in Rome, and would soon
arrive with huge stores of food and clothing, and that the U. S. S.
Culgoa was due on the 8th from Port Said with immense supplies of
all kinds.
The arrival of our first stores—which luckily far exceeded our
requests—brought us face to face with the problem of direct
distribution. Messina was already more orderly. On the 6th or 7th the
Marina was first lighted by electricity—a fortunate occurrence, since
most of the foreign warships on whose search lights we had been
dependent, had now departed. To these ships Messina and Italy had
good reason to be grateful.
BRITISH AND RUSSIAN SAILORS’ AID.

I do not know what words could adequately convey the extent of
service rendered by all the fleets, but especially the British and
Russian. As transports, store ships, refugees’ hospitals, telegraph
stations they had been invaluable: but it was as rescuers of the living
that they were pre-eminent. The Russian sailor was a revelation to
those who did not know the quiet common sense, the tactful
sympathy and the unassuming heroism of the moujik. The Russians
were the only people who always had everything on the spot. The
saying got about that they had ordered the earthquake and fitted out
a fleet beforehand for the purpose of relief. As to the British
bluejackets, they had not a reputation to make. They did exactly
what was expected of them; and in the expected way; that is with
energy and courage, with easy practical mastery of every kind of
work, and with complete unconsciousness of anything unusual or
particularly meritorious in their performance. And the English nation
and press, instinctively realizing that silence may be a higher tribute
than praise, has accepted the fleet’s work at its own valuation; as a
task performed in the ordinary way of duty, and performed well, as
became British sailors.
About the same time or a little later, the water supply was
connected with a portion of the town. Lack of water had been one of
our chief discomforts. It could be procured at one place only, two
miles from the consulate; with great difficulty we had obtained a
pailful each day for our party. The streets had become filthy beyond
description: now it was possible to flood them. A train to Palermo
crawled out of Messina from time to time. The dead were being
removed from the streets, and many of them were buried instead of
being taken out to sea. On the fires in front of the tarpaulin houses
stood pots of macaroni cooking. The hospital ships which departed
for Naples, Genoa or Catania were no longer crowded to over-
flowing. The people actually living in Messina were comparatively
comfortable. But every improvement in organization brought out
more clearly the needs which confusion had obscured. Inside the city
and out, no one had any clothes except what he had been able to
snatch from his house on the morning of the 28th; and not two miles
from the Municipio, in all directions, ran the hunger line—beyond
which lay the region of actual famine.
It must be remembered that Messina was in a state of siege. That
means that it was controlled in every department by a single central
military authority. The state of siege was necessary in order to
maintain order and health; but it entailed inevitable disadvantages in
connection with relief work. Effective relief should be decentralized; it
should operate through innumerable agents invested with
responsibility and discretionary power, who seek out the individual
and have the means to assist him. Government by martial law
means that nothing can be done or given except by permission of
the military chief, and an order for stores cannot be obtained in a
minute. This was why the hospitals, the Red Cross stations and relief
agencies of all kinds were so frequently short of supplies.
Requisitions of particular articles which had run out, such as brandy
or antiseptics or milk, required too great an expense of time; the
workers were everywhere fewer than the needs: they could not be
spared. From our own experience in sending telegrams or procuring
permits we learned to appreciate the inevitable disabilities of a
system of complete centralization in dealing with a situation of such
chaotic complexity.
What part we could take as independent distributors was not
evident. Under the circumstances we decided to divide our supplies
into three parts. The first, consisting of medical stores, milk, butter,
oil, chocolate and underclothes, was given to the central medical
officials, for use in the hospitals. The second, of a similar nature, we
took to Reggio and San Giovanni, for distribution to the hospitals
there. The medical authorities of each place selected from our lists
the articles of which they were in need. The remainder of the stores
we took to the consulate and distributed ourselves.
The Quay Where Corpses Were Laid Out, Awaiting Burial at Sea.
In picking out individuals to assist, we paid special attention to

residents of our own district, with whom we were beginning to
become acquainted, to persons known to Mr. Heynes, and to such
inhabitants of Messina as had some connection with America. We
were constantly asked by Messinesi to send telegrams to their
relatives in the United States, and if possible to help them rejoin
those relatives. But as our immigration laws forbid the importation of
the destitute, we had to tell the applicants that we could send their
telegrams, but that we could not provide passage to America.
The consulate soon became a busy place. Two soldiers stood at
the door to keep the line of applicants in order; inside, one of us
investigated the applicants, and registered the facts of each case in
a book, another took the written orders and brought back the stores,
which were handed out by a third. It is perhaps superfluous to add
that in cases of actual hunger no investigation was attempted. The
help of Mr. and Mrs. Heynes was invaluable throughout. It enabled
us to send stores to families at a distance, who had not heard of our
consulate or were unable to come. Other pitiable cases were brought
to our attention by the American and English newspaper
correspondents, and by Mr. Frank A. Perret, the seismic expert well
known for his heroism at the time of the eruption of Vesuvius in
1906.
Meanwhile the United States Warships Yankton and Culgoa, the
latter loaded with stores, had joined the Scorpion in the harbor. The
sailors were detailed to help us clean the house and garden and put
up a number of tents for a hospital. Colonel Radcliffe, the British
Military Attachè, to whose clear-headed determination is due the
chief credit for the admirable organization of British relief work, aided
us in countless ways. He was occupied at that time in searching for
the body of Mrs. Ogston, wife, of the British Consul. When the
remains were found, it was a party of American sailers from the
Connecticut that formed the funeral escort.
ARRIVAL OF THE “BAYERN.”

Then, on the evening of the 8th, arrived the American Red Cross
Relief Ship Bayern, with the American Ambassador aboard and the
American Naval Attachè, Captain Belknap, in command. I am still
amazed at the intuitive grasp of the situation displayed by the
organizers of the expedition. From inception to completion, in every
detail of planning and execution, the cruise of the Bayern was
emphatically a success.
Messina was not the place, however, where the Bayern was
needed. A day ashore convinced the Ambassador and the
committee that large distributions of food and clothing were not
advisable at the present time. Supplies and a sum of money were
given to the Archbishop of Messina, for his hospital; the stock at the
consulate was replenished; a trip was made to the Calabrian coast,
where the military authorities were given what stores they requested;
then, early on the morning of the 11th, the Bayern sailed for Catania.
CATANIA.
We went ashore, wondering whether we were needed. An hour
later we wondered whether it was worth our while to think of going
anywhere else. The situation at that time was simply appalling: it is
appalling today, five weeks after our visit. Catania and every house
in Catania had been swamped with refugees. Three thousand of
them lay in the five hospitals; two thousand in the three main refuges
—converted barracks or convents; and twenty thousand were
scattered over the city. One lady whom we met had sixty in her own
house; another, thirty: another, seventeen. The Prefect was spending
20,000 lire daily, a sum barely sufficient to supply bread rations and
to keep the hospitals running, but quite insufficient to provide sheets
or clothing for the patients. Even the hospitals were short of
mattresses; in the refuges the inmates slept on heaps of straw. The
little towns in the country districts were as full of refugees as Catania
and in still greater distress; at Catania there was at least bread. Red
Cross branches, municipal committees of men and women, were
working valiantly, but they were struggling with absolute penury—a
complete lack of funds. The money received by the Prefect from the
Government appeared to be the only cash from the outside which
had yet arrived at Catania. It was still only a fortnight since the
earthquake. Apparently no one in Italy had yet realized that money
was needed immediately in places like Catania. Food and clothing
were sent, for instance, but at Catania the food and clothing shops
were well stocked. The Bayern after giving away nearly its whole
supply of clothes renewed the supply by purchases at Catania for
distribution at Reggio. Obviously it would have been more
economical to have given the Catanians money to buy the clothes of
which they were in want than to send the clothes from Italy. The work
of making up the clothes could have been given to the refugees
themselves, had there been money to pay them. It is true that at
Catania, as elsewhere, we found a general conviction that nothing
would make the refugees work. The women, it was said, had their
children to look after; the men could think of nothing but returning to
Messina to recover their property and the remains of their relatives.
All were plunged in a state of morbid apathy which made work out of
the question. This view, however plausible under the circumstances,
has been completely disproved; wherever the refugees have been
given work to do under proper supervision, they have worked. But at
Catania the point was not worth arguing. There was no money to buy
stuffs and sewing machines, or to pay wages; no rooms which could
be used as workshops. A movement might have been organized to
employ fifty or a hundred women, perhaps; but with 25,000 refugees
to keep from starvation and crime the city could not spare any of its
workers to organize an employment agency which, at the best,
would benefit only a few persons. Nothing but large sums of ready
money could have helped the situation; and ready money was not
yet forthcoming. The Bayern had brought a certain amount of money
to distribute; and I had funds of the American Red Cross. With what
we had we were able to give sums of cash to the committees, the
hospitals, the refuges and other charities.
The hospitals of Catania alone took almost all the clothes,
blankets and medical stores we had to give. Yet the hospitals were in
an enviable situation compared to the refuges. Here the inmates
were in a worse plight than when they had escaped, half-naked from
the ruins of Messina. A blanket, a heap of straw, and a daily bread
ration, was about all the average inmate had received since his
arrival. Few of them had changed their clothes or brushed their hair
once: all were living in a state of filth, which extended to their
persons and their habitations and which was a menace to the health
of the town. Let no one think that their plight was the result of
neglect. The Catanians showed no neglect or inefficiency. They
worked hard and they worked with intelligence, but they had no
money.
A curious and by no means reassuring feature of the refuges was
the willingness of their inmates to stay where they were, or rather
their unwillingness to move. I noticed the same fact at Palermo,
where the condition of the refugees was similar, though perhaps less
distressing. The inertia induced originally by the complex action of
physical and moral shocks on an oriental fatalistic temperament
increased rapidly, alarmingly, under the influence of a life without
interest, occupation, pleasure or duty. Dependent squalor soon
became pleasant, and any return to independence uninviting. The
hope of getting a cigar from some visitor was enough to fill the day
satisfactorily. Dirt, we know, soon became endurable; as a
philosopher once said, “Every man is clean enough for himself.”
What had happened already at the time of our visit was that the
inmates of the refuges had begun to regard their present life as
permanent, and had abandoned even the desire to change it; they
had been turned into paupers. Three-quarters of them spent the
days in aimless loafing and chatter; the other quarter lay gloomily on
the straw, thinking of the dead. Unless these people could be
awakened, unless someone should compel them soon to work and
to be clean, there were signs that they would become a permanent
burden; and, what is more, a permanent menace to the population.
Criminals are easily made in Sicily and when they are made they
have no difficulty in finding occupation.
Italian Soldiers Disinterring a Corpse in the Ruins of
the Old Consulate.
Bearing Corpses Down the Corso Principe Amedeo.
The problem of the refuges, then, was less to make them more
comfortable than to abolish them as soon as possible and in the
meantime to compel cleanliness and induce work among the
inmates. But there was a scarcely less difficult and more elusive
problem connected with the thousands of refugees scattered about
the town in private houses, living in the garrets and stables. Many of
them were skilled laborers of various kinds; not a few belonged to
families of merchants or professional men and to the well-to-do
classes. Their destitution was as complete, of course, as that of the
rest, and the relief awarded to them was the same—a daily loaf of
bread. Some of them were rich, if they could only find their
evidences of wealth. To enable them to do this, and to support them
meanwhile, the Catania business men had formed an association to
which we were glad to be able to make a small contribution.
The general impression created by our visit to Catania was that of
a problem too vast, too complicated, too closely connected with the
habits and temperament of the people for any outsider to solve. To
“rehabilitate” these thousands of peasants, artisans, professional
men, merchants, landed proprietors, would require a carefully
matured plan, which must proceed from the central authorities. But
meanwhile, until the plan should be matured, there was ample scope
for beneficent foreign intervention, and the most useful way to
intervene was also the simplest—by direct money gifts, not indeed to
individual refugees, but to the local relief bodies already organized
by Italians. It was not necessary or even advisable to make large
donations to the central authorities of each place. The system was
already rather too much centralized than too little, as the authorities
were the first to recognize. Far from being jealous of direct donations
to the subordinate or independent institutions, they welcomed
anyone who would investigate the various needs, and give help
when help was most wanted. It appeared to us that the best way to
dispose of American money was to entrust it to an agent on the spot,
who should travel up and down the coasts of Sicily and encourage
every well-directed movement by immediate money gifts. In time
such movements would no doubt receive help from Rome; but in the
meantime ready cash from unofficial sources might make the
difference between success and failure.
SYRACUSE.
The Bayern spent three days at Catania. During that time I made a
trip of investigation to Syracuse. Here the refugees numbered only
3,000—one-eighth of the number at Catania; but 900 of these were
hospital patients. Syracuse, too, has only one-seventh of Catania’s
population. Its hospital accommodations at the time of the
earthquake were for one hundred patients. If Syracuse had
succeeded better than any other place in mastering the difficulties of
the situation it was not because the difficulties were insignificant.
Syracuse was fortunate in a Prefect and a Mayor of resource and
capacity; in an unusually efficient body of volunteer workers, with
one woman of great ability at their head; and in the fact that the
importance of the work, as a moral and mental tonic for the refugees,
was realized from the very beginning. Syracuse was the first place
where refugees were set to work. The credit for this is due to an
American, Miss Katherine Bennett Davis, head of the New York
State Reformatory for Women.
When Miss Davis first thought of employing refugee women to
make clothes for the hospitals, relief work at Syracuse was just
emerging from a state of chaos. Four hospitals had been equipped
after a fashion for the reception of patients. The Municipal hospital
was already in good running order, through the efforts of Signor
Broggi-Reale, head of the local Red Cross; the Archbishop’s palace
was being rapidly transformed into a second hospital by a number of
ladies; at the big barracks conditions were more primitive until the
arrival of a splendidly equipped expedition of the German Red
Cross. Most of the hospitals were short of blankets; all needed
sheets, and all were entirely unsupplied with clothes for the patients.
Of the two thousand able-bodied refugees, eight hundred were
maintained aboard the steamship Nord Amerika; the rest were
scattered about the town. A woman’s branch of the Red Cross was
being organized by the Marchesa di Rudini, whose activity covered
every branch of the work of relief and extended beyond the confines
of Syracuse, to all the towns of the province. Her position as wife of
one of the largest landowners of the province and daughter-in-law of
Italy’s lamented premier; her independence of any particular
organization; her skill and tact in uniting individuals and parties made
her the most influential person in Syracuse. To her is due more than
to anyone else the excellent organization of the Syracuse relief work.
Miss Davis was in Sicily in order to rest. The funds at her disposal
amounted to six hundred lire only. But she saw an opportunity to
help in the moral regeneration of the refugees and at the same time
to supply one of the most pressing needs of the city. She went to the
mayor and offered to employ refugee women in making clothes for
the hospitals. Like everyone else, the Mayor had been told that the
refugees would not work; but unlike everyone else, he decided to
make the experiment. He gave Miss Davis two of his own rooms in
the Municipio, supplied her with sewing machines, and promised to
furnish all the necessary materials. She opened her shop on January
8th and soon had fifty women at work.
Miss Davis was not alone in her labors. Besides the support of the
officials and of Madame di Rudini, she had the direct assistance,
from the first, of Mrs. Musson, wife of the British clergyman, and later
of Mrs. Sisco, of Florida. When gifts of money from the American
Red Cross and from the Committee of the Bayern enabled Miss
Davis to found a second workshop at Santa Lucia, the quarter of
Syracuse situated on the mainland, Mrs. Musson became its
manager. To supplement her own scanty knowledge of Italian, Miss
Davis employed as interpreter and paymaster an English resident of
Messina, Miss Smith, who had escaped from the earthquake without
any of her belongings beyond what she could carry. The Syracusan
ladies took an active interest in the workshops; two of them, the
Baronesses del Bosco, whose principal work was in the hospitals,
found time nevertheless to give much of their attention to Miss Davis’
work, and assisted her particularly in the cutting-out department.
The workshops were a success from the beginning. Under Miss
Davis’ unceasing supervision the women showed no tendency to
idleness. A piece wage which would have put the unskillful and the
beginners at a disadvantage was not found necessary; the women
were paid by the day, one lira and a lunch of bread, cheese and
wine. The question naturally suggested itself, could not the men also
be induced to work? And could not their work be made to contribute,
like that of the women, to supply their own wants?
Refugee Camp in the Piazza Vittoria.
Miss Davis had now the money to carry out her plans. But she had
to face a new difficulty—the jealousy of the local artisans, who
resented any influx of labor. Miss Davis began with the shoemakers
because shoes, next to underwear, were the articles of clothing most
needed by the refugees. She found a number of shoemakers among
the refugees. These she induced the local shoemakers to employ by
offering the following advantageous terms: The local man was to
supply the materials and tools and to receive the price of the
product, which Miss Davis promised to buy. She was also to pay
wages to the refugee worker. Thus the refugee was employed, the
local shoemaker profited and the stock of shoes was increased. At a
later date Miss Davis found employment for all the carpenters,
masons and painters among the refugees by paying them to
complete a large two-story building, of which only one story had
been built. When finished the building became an orphan asylum for
seventy-five refugee children. The money for this work was furnished
by Mr. Billings out of the Massachusetts funds.
So far only skilled laborers had been employed. But the persons
who most needed work, those who deteriorated most rapidly when
idle, were the common unskilled laborers belonging to the lowest
classes. Even in their normal condition nothing but hunger would
induce these people to work; now they were fed and were in a state
of moral inertia. Miss Davis’ proposal to the Mayor to employ a
squad of sixty day laborers in improving the roads seemed almost
certain to fail. The Mayor, however, decided to make the attempt; he
was to supply tools, materials and supervision; Miss Davis was to
pay the wages. Once more the unexpected happened; the men
worked moderately well at first, then better every day. In a short time
all traces of idleness and discontent had disappeared.
From the point of view of actual achievement and also of example
Miss Davis’ feat at Syracuse seems to me the most important single
contribution to the problem of rehabilitating the sufferers from the
Messina earthquake. Her efforts were not limited, however, to giving
employment. With funds allotted by the Bayern Committee she
opened a pension or home for forty-two refugees of the better class,
giving preference to convalescents from the hospitals. Here for the
first time the refugees found soap, brushes, combs, clean clothes, all
the articles of first necessity of which they had been deprived since
the earthquake. The home was so successful that the Marchesa di
Rudini devoted most of the American money which had been given
her, to spend at her discretion, to founding two similar institutions at
Nolo and Avola, small towns of the province of Syracuse. These
homes the Prefect of Syracuse promised to support out of
Government funds when the original donations should be spent. In
Miss Davis’ home at Syracuse the moral health of the inmates was
never forgotten. Before the home had been opened a fortnight the
women among the inmates were busy making clothes, voluntarily
and without pay, for less fortunate refugees. Every scheme of Miss
Davis served a double end—practical utility and moral rehabilitation.
Upon my return to Catania I found the Bayern ready to start for
Reggio. During her stay she had not only dispensed relief to Catania
and the environs, but had also supplied the wants of the Taormina
and Giardini hospitals.
REGGIO.
Of our second visit to Reggio I need say little. It was the saddest
place of any, perhaps; nowhere else were the inhabitants plunged in
such a state of complete dejection. There were no adventurers or
imposters at Reggio: only the remains of families, sitting or standing
mournfully among the ruins of their own homes. There was no
danger in giving money to these people; their need was too obvious,
their distress too genuine. We distributed our cargo, gave what help
we could, paid a second visit to Messina and after two days
proceeded to Palermo.
PALERMO.
Conditions at Palermo were only less desperate than at Catania.
The refugees numbered about 11,000, of whom about 900 were in
the hospitals. Nearly all of the remainder were in refuges, very few
having been taken into private houses. All the barracks, the prison,
half the schools, several convents, several theaters, and even a
number of churches had been turned into refuges, of which the
largest held as many as a thousand inmates. The city is larger than
Catania, with more wealthy residents; it was therefore better off in
many respects. But it suffered, like Catania, from the want of money
from the outside, from the scarcity of intelligent workers, and from
the particular dangers connected with the refuges.
I have already described the refuge system. If work is necessary
for all the refugees, it is particularly necessary for those who live in
these large communities. At Palermo their idleness had already
turned to dangerous discontent. They complained constantly of their
treatment, but refused to leave the refuges. No work for them had
been organized when we arrived at Palermo. Enlightened by Miss
Davis’ example, we immediately offered money for the institution of
workshops on the same model as hers. The idea met with general
approval. A beginning was made at once in one of the barracks and
in the prison. Mr. Bishop, the American Consul, to whom we handed
over the money for the enterprise, labored energetically to broaden
the basis and extend the scope of the work. In a few days a ladies’
committee, of which the president was Mrs. Bishop and the vice-
president Countess Mazza, wife of the General in Command at
Messina, had founded workshops in five of the principal refuges, and
another refuge, the Caserna Garibaldi, was organized on the same
system by a parish priest, Father Trupiano, with the approval of the
Archbishop of Palermo. According to the latest reports the Palermo
workshops have been a success, like those of Syracuse. Some
concessions had to be made to the inferior moral condition of the
workers at the time when they were first employed. For instance,
they had to be paid by the piece instead of by the day. But they have
not proved idle on the whole, and such work as they have done has
contributed directly to a most important object—the increase of the
supply of clothing. Even if the Bayern committee had not been able
to distribute 1,200 mattresses and 15 tons of food at Palermo, or to
assist the municipal charities, their short visit of eight hours to the
city would have been amply justified by the foundation of these
workshops. With the cruise of the Bayern ended my direct
participation in the work of relief. I have only a second-hand
knowledge of the many other undertakings of the American Red
Cross in Italy. But I have seen enough to have formed a few general
opinions which may have a certain interest for Americans who have
contributed to the various relief funds.
PROBLEMS OF RELIEF.
The Italian government and the Italian Red Cross found
themselves, within a few days of the earthquake, in possession of
enormous sums of money. As the government had the sole access
to the afflicted districts and the sole authentic information about their
needs, it was to the government that all contributions, Italian and
foreign, were naturally sent. But there were several reasons why the
government could not immediately turn that money over to the
persons who most needed it or who could use it best.
In the first place, every consideration had to give place during the
early days before the imperative necessity of transporting troops to
the scene of disaster and of supplying them with the necessary food
and equipment. In the second place, government funds are always
particularly hard to protect from the suspicion of maladministration.
The Italian government may have remembered criticisms of the way
in which former funds had been distributed: at any rate, it determined
on this occasion to exercise all possible vigilance to prevent the
waste or misappropriation of a penny. The distrust of the Sicilians,
traditional in upper Italy, may have increased the tendency to send
supplies rather than money, and to give all orders from a single
central source. In the third place, the temporary feeding and clothing
of the destitute was a very small part of the total relief problem. The
end which the contributions must ultimately subserve was to restore
the refugee population to some kind of normal life, not merely to
keep them alive for a few months. But how to effect their
rehabilitation was a question which could not be answered until
many things were known; their numbers, for instance, the possibility
of rebuilding the ruined towns, the amount of property recoverable,
the condition of the harbors, channels, docks—a hundred facts
which only time could reveal. Whenever a general scheme should be
devised, vast sums would be required for its effectuation: till then it
was important not to disperse the accumulating contributions.
This policy of prudence and circumspection, admirable as regards
an ultimate settlement, was defective as a means of relieving
immediately the wants of scattered localities spread over two large
and more or less inaccessible regions. What was wanted in order to
supply so many needs in so many places was a system of extreme
decentralization, with large funds at the unfettered discretion of
individual agents. Such a system was incompatible with the rigid
supervision of expenditure which the government felt to be
necessary. It could not be adopted by the government. But precisely
for that reason it could be adopted with advantage by independent
and especially by foreign relief societies. By giving all their
contributions to the Italian central committee they would indeed be
helping in the general plan of rehabilitation which the central
committee was evolving, but they would not be doing the task for
which they were especially fitted and from which the central
committee was to a large extent excluded. If, on the other hand, they
entrusted their funds to agents in Sicily or Calabria, whose duty it
should be to investigate every town and every institution and to help
quickly the most useful and the most needy organizations, they
would be doing what no one else could do so well, and what no one
else had done at all.
The objection to such a policy was the risk of giving just offense to
the Italian government and people by interfering in what was
essentially an Italian concern—a problem of internal administration.
Such an objection appears to me to rest as a misconception. The
Italians might well resent, and would very likely have resented, any
interference which took the form of independent relief organizations,
with direct pecuniary assistance of individuals. As a matter of fact,
the German Red Cross hospital at Syracuse was an organization of
this kind and it aroused nothing but enthusiasm. A hospital, however,
is not like a distributing agency. What the Italians would have
objected to, and rightly, would have been any attempt on the part of
foreigners to decide Italian questions; how a given body of men
should be employed, where certain orphans should be sent, what
families should first be assisted; or to set up independent relief
bureaus to which individuals might apply, thus duplicating or
confusing the work of the Italians and opening an easy way to

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(eBook PDF) Organization Theory and

Design 3rd by Richard Daft

Mississauga. Ann is currently working on a SSHRC–supported research project that

Part 1: Introduction to Organizations 1

Part 2: Organizational Purpose and Structural Design 49

Part 3: Open-System Design Elements 137

Part 4: Internal Design Elements 249

Part 5: Managing Dynamic Processes 327

Integrative Cases 490

Part 1: Introduction to Organizations 1

Chapter 1: Organizations and Dimensions of Organizational Design 22

Part 2: Organizational Purpose and Structural Design 49

Chapter 2: Strategy, Organizational You & Design: Your Strategy/Performance Strength 53

Mission, 56 ● Operative Goals, 57

Matrix Structure 111

In Practice: Englander Steel 115

Part 3: Open-System Design Elements 137

In Practice: Kraft Foods (Kraft) 144 Purpose of This Chapter, 180

Book Mark 4.0: Confronting Reality: Resource Dependence 185

Resource Dependence 160 Strategies for Survival, 195

Establishing Interorganizational Institutionalism 196

Organization–Environment Integrative Chapter 5 Workbook: Management Fads 203

Motivations for Global Expansion, 216 Coordination and Control, 237

Part 4: Internal Design Elements 249

Chapter 7: Manufacturing and Service Performance and Structural Implications, 265

Strategy, Technology, and Performance, 257 Department Design 275

Chapter 7 Workbook: Bistro Technology 287 Bureaucracy in a Changing World 308

Part 5: Managing Dynamic Processes 327

Chapter 9: Organizational Culture The Bureaucratic Culture, 340 ● A Culture

In Practice: Harvard Business School (HBS) 353 Organization Development Interventions

Culture Change 391 In Practice: Bombardier Inc. 430

Forces for Culture Change, 391 Garbage Can Model, 431

In Practice: WestJet Airlines Ltd. (WestJet) 392 In Practice: I ♥ Huckabees 434

Problem Consensus, 435 ● Technical Tactics for Increasing Power, 474

● Escalating Commitment, 441

When I was approached to prepare a Canadian version of the ninth edition of

Distinguishing Features of the Third

Leading by Design The Leading by Design features describe organizations

ACT! ACT, which stands for Apply-Compare-Think, helps students personalize

for an environment characterized by uncertainty; a renewed emphasis on ethics

Chapter Changes in the Third Canadian Edition

● Chapter 12: Conflict, Power, and Politics

About the Nelson Education Teaching

Technology in Teaching: NETA Digital is a framework based on Arthur

BRITISH AND RUSSIAN SAILORS’ AID.

In picking out individuals to assist, we paid special attention to

ARRIVAL OF THE “BAYERN.”

Refugee Camp in the Piazza Vittoria.

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