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Richard L. Daft Vanderbilt University
Organization Theory & Design 13e
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About the Author
Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr, Professor of Management and Principal Senior Lecturer
in the Owen Graduate School of Management at Vanderbilt University. Professor Daft specializes in the study
of organization 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 14 books, including The Executive and the Elephant: A
Leader’s Guide to Building Inner Excellence (Jossey-Bass, 2010), Building Management Skills: An Action-
First Approach (Cengage/South-Western, 2014), Management (Cengage/South-Western, 2018), The
Leadership Experience (Cengage/South-Western, 2018), 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, Management 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 management, leadership, organiza-
tional change, organization theory, and organizational behavior. He has been involved in management devel-
opment and consulting for many companies and government organizations, including the National Academy
of Science, Oak Ridge National Laboratory, American Banking Association, AutoZone, Aegis Technology,
Bridgestone, Bell Canada, Allstate Insurance, the National Transportation Research Board, the Tennessee
Valley Authority (TVA), State Farm Insurance, Tenneco, the U.S. Air Force, the U.S. Army, Eli Lilly, Central
Parking System, Entergy Sales and Service, Bristol-Myers Squibb, First American National Bank, and the
Vanderbilt University Medical Center.
iii
Brief Contents
PART 1 Introduction to Organizations 001

1. Organizations and Organization Design 002
PART 2 Organization Purpose and Structural Design 047

2. Strategy, Organization Design, and Effectiveness 048
3. Fundamentals of Organization Structure 092
PART 3 Open System Design Elements 145

4. The External Environment 146
5. Interorganizational Relationships 184
6. Designing Organizations for the International Environment 222
7. Designs for Societal Impact: Dual-Purpose Organizations, Corporate Sustainability,
and Ethics 270
PART 4 Internal Design Elements 313

8. Designs for Manufacturing and Service Technologies 314
9. Designs for Digital Organizations and Big Data Analytics 360
10. Organization Size, Life Cycle, and Decline 402
PART 5 Managing Dynamic Processes 441

11. Organizational Culture and Control 442
12. Innovation and Change 478
13. Decision-Making Processes 526
14. Conflict, Power, and Politics 576
Integrative Cases 621

1.0 Disorganization at Semco: Human Resource Practices as a Strategic Advantage 623
2.0 Walmart’s Failures in Entering Three Developed Markets 633
3.0 IKEA: Scandinavian Style 639
4.0 Engro Chemical Pakistan Limited—Restructuring
the Marketing Division 644
5.0 The New York Times Versus Amazon 656
6.0 Lean Initiatives and Growth at Orlando Metering Company 661
7.0 SCG Lampang: Overcoming Community Resistance to a Sustainability Project (A) 670
8.0 Costco: Join the Club 675
9.0 The Donor Services Department 679
10.0 Cisco Systems: Evolution of Structure 683
11.0 ToolTopia.com 689
12.0 Sometimes a Simple Change Isn’t So Simple 693
Glossary 698
Name Index 709
Corporate Name Index 719 v
Subject Index 723
Contents
Prefacexv
PART 1 Introduction to Organizations 001

Chapter 1: Organizations and IN PRACTICE: Shizugawa Elementary School Evacuation
Center and BP Transocean Deepwater Horizon Oil Rig 020
Organization Design 002
Contingency Factors, 020
A Look Inside General Electric 003
IN PRACTICE: Valve Software 023
The Jack Welch Era 1981–2001, 003 • The
Jeff Immelt Era 2001–2017, 005 • Events Performance and Effectiveness
Since 2017, 006 Outcomes, 023
Organization Design in Action 007 The Evolution of Organization Design 025
Topics, 007 • Purpose of This Chapter, 008 • Historical Perspectives, 025
Current Challenges, 009 HOW DO YOU FIT THE DESIGN? Evolution of Style 027
BOOKMARK 1.0: The Vanishing American It All Depends: Key Contingencies, 028
Corporation: Navigating the Hazards of a New
The Contrast of Organic and Mechanistic Designs 029
Economy010
The Emerging Bossless Design Trend 032
IN PRACTICE: Foot Locker 013
IN PRACTICE: Morning Star 033
What Is an Organization? 014
Framework for the Book 034
Definition, 014 • From Multinationals
to Nonprofits, 014 • Importance of Levels of Analysis, 034 • Plan of the Book, 035
Organizations, 016 • Plan of Each Chapter, 035
IN PRACTICE : Zara SA 017 Chapter 1 Workshop: Measuring Dimensions of
Dimensions of Organization Design 018 Organizations038
Structural Dimensions, 018 Case for Analysis: Craft Originalities, Inc. 039
PART 2 Organization Purpose and Structural Design 047

Chapter 2: Strategy, Organization Design, BOOKMARK 2.0: Blue Ocean Shift: Beyond
Competing; Proven Steps to Inspire Confidence and
and Effectiveness 048 Seize New Growth 057
Purpose of This Chapter, 050
Operating Goals, 058 • Goal Conflict, 060 •
The Role of Strategic Direction in Organization The Importance of Goals, 060
Design050 IN PRACTICE: Wells Fargo 061
IN PRACTICE: The Kroger Company 051
Two Frameworks for Selecting Strategy and Design 063
Organizational Purpose 054
Porter’s Competitive Strategies, 063
Strategic Intent, 055
vii
viii Contents
HOW DO YOU FIT THE DESIGN? Your Strategy/ HOW DO YOU FIT THE DESIGN? The Pleasure/Pain of
Performance Strength 065 Working on a Team 106
IN PRACTICE: Allegiant Air 066 Relational Coordination, 106
Miles and Snow’s Strategy Typology, 067 • IN PRACTICE: Southwest Airlines 107
How Strategies Affect Organization Organization Design Alternatives 108
Design, 068 • Other Contingency Factors
Required Work Activities, 109 • Reporting
Affecting Organization Design, 069
Relationships, 109 • Departmental Grouping
Assessing Organizational Effectiveness 071 Options, 109
Definition of Organizational Effectiveness, 071 Functional, Divisional, and Geographic Designs 111
• Who Decides?, 072 • Goal Approach, 073
Functional Structure, 111 • Functional
• Resource-Based Approach, 075 • Internal
Structure with Horizontal Linkages, 112 •
Process Approach, 076
Divisional Structure, 113
IN PRACTICE: BNSF Railway 077
IN PRACTICE: Google and Alphabet 114
Strategic Constituents Approach, 077
Geographic Structure, 116
An Integrated Effectiveness Model 079
Matrix Structure 118
IN PRACTICE: Samsung Group 082
Conditions for the Matrix, 119 • Strengths
Chapter 2 Workshop: Identify Your Goal Preferences 084 and Weaknesses, 120
Case for Analysis: The Addlington Gallery of Art 084
IN PRACTICE: Englander Steel 121
Case for Analysis: Millier Machine Parts & Services 086 Virtual Network Structure and Outsourcing 123
Chapter 3: Fundamentals of Organization How the Structure Works, 123 • Strengths

and Weaknesses, 124
Structure92
Holacracy Team Structure 126
IN PRACTICE: Zappos 128
Organization Structure 094
Characteristics, 128 • Strengths and
Information-Sharing Perspective Weaknesses, 128
on Structure 097
Applications of Structural Design 130
Centralized Versus Decentralized, 097
Mix and Match, 131 • Structural Alignment,
BOOKMARK 3.0: The Future of Management 098
131 • Symptoms of Structural Deficiency, 132
IN PRACTICE: Toyota 099
Chapter 3 Workbook: You and Organization Structure 134
Vertical Information Sharing, 099
Horizontal Information Sharing and Case for Analysis: Holtzclaw Supermarkets, Inc. 134
Collaboration, 100 Case for Analysis: Aquarius Advertising Agency 137
IN PRACTICE: AT&T WarnerMedia 102
PART 3 Open System Design Elements 145

Chapter 4: The External Environment 146 Framework, 156
Purpose of This Chapter, 147 BOOKMARK 4.0: Confronting Reality: Doing What
Matters to Get Things Right 156
The Organization’s Environment 148
Adapting to Complexity and Dynamism 158
Task Environment, 148 • General
Environment, 150 • International Adding Positions and Departments, 159 •
Environment, 151 Building Relationships, 159
IN PRACTICE: Uber and Didi Chuxing 152 IN PRACTICE: Seton Hall University and
Dickinson College 160
The Changing Environment 153
Differentiation and Integration, 162 •
Complexity, 154 • Dynamism, 154
Organic Versus Mechanistic Management
IN PRACTICE: Gap Inc. 154 Processes, 163
Contentsix
HOW DO YOU FIT THE DESIGN? Mind and Environment, 164 Chapter 5 Workshop: The Shamatosi 212
Planning, Forecasting, and Case for Analysis: Technomagia and AUD 214
Responsiveness, 165
Case for Analysis: Bradford Chemicals Company 215
Framework for Adapting to Complexity
and Dynamism 166
Chapter 6: Designing Organizations for
Dependence on Financial Resources 167
the International Environment 222
Influencing Financial Resources 168
Establishing Formal Relationships, 168
Entering the Global Arena 224
IN PRACTICE: Publicis and Omnicom 169
Motivations for Global Expansion, 225
Influencing Key Sectors, 171
BOOKMARK 6.0: The World Is Flat: A Brief History
IN PRACTICE: Amazon and Walmart 171 of the Twenty-First Century 225
Organization–Environment Integrative Framework 174 IN PRACTICE: Amway 227
Chapter 4 Workshop: Organizations You Rely On 176 Managing the Stages of International
Development, 229
Case for Analysis: CPI Corporation 176
HOW DO YOU FIT THE DESIGN? What Is Your Cultural
Case for Analysis: Farrington Medical Devices 177 Intelligence?231
Global Expansion Through International
Chapter 5: Interorganizational Alliances and Acquisitions, 232
Relationships184 IN PRACTICE: Walmart and Flipkart 233
Purpose of This Chapter, 186 The Challenges of Global Design 234
Organizational Ecosystems 186 Increased Complexity and Differentiation,
Is Competition Dead?, 187 235 • Increased Need for Coordination,
IN PRACTICE: Apple and Samsung 189 236 • Transfer of Knowledge and Reverse
Innovation, 237
The Changing Role of Management, 189
• Interorganizational Framework, 191 Designing Structure to Fit Global Strategy 239
Resource Dependence 192 Strategies for Global Versus Local
Opportunities, 239
Types of Resource-Dependence Relationships,
IN PRACTICE: General Electric 242
192 • Power Implications, 194
IN PRACTICE: JPMorgan Chase and Amazon 195 International Division, 243 • Global Product
Division Structure, 243 • Global Geographic
Collaborative Networks 195 Division Structure, 245
HOW DO YOU FIT THE DESIGN? Personal Networking 196
IN PRACTICE: Colgate-Palmolive Company 246
Why Collaboration?, 197 Global Matrix Structure, 247
IN PRACTICE: Accelerating Medicines Partnership 198
IN PRACTICE: ABB Group 248
From Adversaries to Partners, 198 Additional Global Coordination Mechanisms 250
BOOKMARK 5.0: Managing Strategic Relationships:
Global Teams, 250
The Key to Business Success 200
IN PRACTICE: L’Oréal 251
Population Ecology 201
Headquarters Planning, 252 • Expanded
IN PRACTICE: Blockbuster 202
Coordination Roles, 252 • Benefits of
What Hinders Adaptation?, 202 Coordination, 253
IN PRACTICE: LVMH Moët Hennessy Louis Vuitton 202 The Transnational Model of Organization 254
Organizational Form and Niche, 203 •
Process of Ecological Change, 204 • Strategies Chapter 6 Workshop: Made in the U.S.A.? 259
for Survival, 205 Case for Analysis: Halogen Analytics 260
Institutionalism207
Case for Analysis: Rhinebeck Industrial 261
The Institutional View and Organization
Design, 207 • Institutional Similarity, 208
x Contents
Chapter 7: Designs for Societal Impact: The Consequences for Doing Good 290
Dual-Purpose Organizations, Corporate esigning a Structure for Executing a Sustainability
D
Sustainability, and Ethics 270 Program291
Purpose of This Chapter, 272 A Separate Department or Include Everyone?,
292 • Involve External Stakeholders, 293 •
Designing the Dual-Purpose Organization 272
Set Goals, Measure, and Reward, 294
Facing the Challenge, 274 • Designs for
HOW DO YOU FIT THE DESIGN? How Sustainable
Achieving Dual Commercial and Social
are You? 296
Welfare Goals, 276
Designs to Uphold Ethical Values 297
IN PRACTICE: Grameen Veolia Water 278
Sources of Individual Ethical Principles,
Corporate Social Responsibility 281
297 • Organizational Ethics, 298 • Formal
The Green Movement, 282 • The Triple Structure and Systems, 299
Bottom Line, 283
IN PRACTICE: Google 302
IN PRACTICE: Gravity Payments 284
Corporate Ethics in a Global Environment 303
Conscious Capitalism, 285
Chapter 7 Workshop: What is Your Level of Ethical
BOOKMARK 7.0: Conscious Capitalism: Liberating the
Heroic Spirit of Business 285 Maturity?305
Serving Organizational Stakeholders, 286 • Case for Analysis: Solo: Helping a Million People
Serving the Bottom of the Pyramid, 288 See Again 305
IN PRACTICE: Godrej & Boyce 289 Case for Analysis: Fiedler, Philips & Wilson Design 307
PART 4 Internal Design Elements 313

Chapter 8: Designs for Manufacturing and IN PRACTICE: Memorial Sloan-Kettering Cancer Center 341
Service Technologies 314 Workflow Interdependence Among Departments 343
Purpose of This Chapter, 317 Types, 343
Core Manufacturing Technology 318 IN PRACTICE: Southwest Airlines 346
Manufacturing Firms, 318 • Strategy, Structural Priority, 347 • Structural
Technology, and Performance, 320 • The Implications, 347
Smart Factory, 321 • Mass Customization, 323 IN PRACTICE: Athletic Teams 348
• Performance and Structural Implications, 324
Chapter 8 Workshop: Small Business Workflow Technology 350
Surviving Extremely Complex Technologies 326
Case for Analysis: Acetate Department 351
Extreme Technology Complexity, 326
IN PRACTICE: Carnival Cruise Lines 327 Case for Analysis: Digitalization in the Manufacturing
BOOKMARK 8.0: Meltdown: Why Our Systems Fail and Sector: Skills in Transition 354
What We Can Do About It 327
High Reliability Organizing, 328
Chapter 9: Designs for Digital
Organizations and Big Data Analytics 360
Core Service Technology 331
Service Firms, 331
The Digital Information Explosion 362
HOW DO YOU FIT THE DESIGN?: Manufacturing
Versus Service 333 Pipes versus Platforms: A New Organization Form 365
IN PRACTICE: Panera Bread Company 335 Two Types, 367 • Foundational Assumptions, 367
Designing the Service Organization, 335 IN PRACTICE: Uber 369
IN PRACTICE: Home Depot Inc. 336 Platform Design Recommendations, 370
Noncore Departmental Technology 337 Big Data Analytics 372
Variety, 338 • Analyzability, 338 • IN PRACTICE: Siemens Gamesa 373
Framework, 338 • Department Design, 340 Big Data Requirements, 373
Contentsxi
BOOKMARK 9.0: Astroball: The New Way to Win It All 376 Organizational Life Cycle 410
Big Data and Organization Structure, 376 Stages of Life-Cycle Development, 410
IN PRACTICE: Morgan Stanley 378 IN PRACTICE: Airbnb 413
Artificial Intelligence 380 Organizational Characteristics During the
Is AI an Objective Decision Maker?, 381 • Life Cycle, 414
Is Nudge Management Going to Be Your Organizational Size, Bureaucracy, and Control 415
Coach?, 383 • Algorithmic Control May Be What Is Bureaucracy?, 415
Your New Boss, 383 • AI Implications for
IN PRACTICE: United Parcel Service (UPS) 417
Organization Design, 385
HOW DO YOU FIT THE DESIGN? How Will You Handle Size and Structural Control, 418
Decentralization and Autonomy? 386 Bureaucracy in a Changing World 420
Other Digital Applications in Organizations 387 BOOKMARK 10.0: The Conversational Firm:
Rethinking Bureaucracy in the Age of Social Media 420
Social Network Analysis, 387
IN PRACTICE: Exploration and Production Division 387 Organizing Temporary Systems, 421
IN PRACTICE: Salvation Army 422
Knowledge Management, 389
IN PRACTICE: BAE Systems 390 Other Approaches to Busting Bureaucracy,
423
Digital Impact on Organization Design 392
Bureaucracy and Other Forms of Control 424
Chapter 9 Workshop: Manufacturing and Big Data: Bureaucratic Control, 425
Organize the Project 394
IN PRACTICE: East Resources Inc. and Royal Dutch
Case for Analysis: Hermitage Escalator Company 395 Shell PLC 426
Market Control, 427 • Clan Control, 427
Chapter 10: Organization Size, Life Cycle, IN PRACTICE: Valve Corporation and FAVI 428
and Decline 402 Organizational Decline 429
Definition and Causes, 430
Organization Size: Is Bigger Better? 404 IN PRACTICE: Eastman Kodak 431
Pressures for Growth, 404 • Dilemmas of A Model of Decline Stages, 431
Large Size, 405
HOW DO YOU FIT THE DESIGN? What Size Chapter 10 Workshop: Classroom Control 434
Organization For You? 407 Case for Analysis: Yahoo!: “Get to Work!” 434
IN PRACTICE: Dell Inc. 409
Case for Analysis: Bachmeyer Foods, Inc. 435
PART 5 Managing Dynamic Processes 441

Chapter 11: Organizational Culture Culture Strength and Organizational Subcultures 456
and Control 442 IN PRACTICE: Pitney Bowes Credit Corporation 457
Purpose of This Chapter, 444 BOOKMARK 11.0: Rule Makers, Rule Breakers: How
Tight and Loose Cultures Wire Our World 458
Organizational Culture 444
Culture and Performance 459
What Is Culture?, 445 • Emergence and
Purpose of Culture, 446 The Cultural Focus of Control Systems 461
IN PRACTICE: Google 446 The Changing Philosophy of Control, 461 •
Interpreting/Shaping Culture, 447 Feedback Control Model, 463 • Organization
Level: The Balanced Scorecard, 465 •
Culture and Organization Design 451 Department Level: Behavior Versus Outcome
The Adaptability Culture, 453 • The Control, 468
Achievement Culture, 453
Chapter 11 Workshop: Balanced Scorecard Exercise 471
IN PRACTICE: Huawei 453
The Clan Culture, 454 • The Bureaucratic Case for Analysis: Midwest Controls, Inc. 472
Culture, 454 Case for Analysis: NASCAR 473
HOW DO YOU FIT THE DESIGN? Corporate Culture
Preference455
xii Contents
Chapter 12: Innovation and Change 478 IN PRACTICE: Veracruz Consulting 534
Purpose of This Chapter, 480 Bounded Rationality Perspective, 535
The Strategic Role of Innovation 480 HOW DO YOU FIT THE DESIGN? Making Important
Decisions537
Innovate or Be Disrupted, 480
BOOKMARK 13.0: Blink: The Power of Thinking
IN PRACTICE: Netflix 481 Without Thinking 539
Strategic Types of Innovation, 482 Cognitive Biases 540
Elements for Successful Change 484 Specific Biases That May Influence Decision
Technology Innovation 487 Making, 542 • Overcoming Cognitive Biases,
HOW DO YOU FIT THE DESIGN? Are You Innovative? 488 543
The Ambidextrous Approach, 488 • The Organizational Decision Making 545
Bottom-Up Approach, 489 • Techniques for Management Science Approach, 545 •
Encouraging Technology Change, 490 Carnegie Model, 547
BOOKMARK 12.0: Creativity, Inc.: Overcoming the IN PRACTICE: The New York Times 548
Unseen Forces That Stand in the Way of True Inspiration 492
Incremental Decision Model, 550
New Products and Services 494
IN PRACTICE: The Los Angeles Rams 550
IN PRACTICE: Elkay Manufacturing 494
Organizational Decisions and Change 554
New Product Success Rate, 495 • Reasons
Combining the Incremental and Carnegie
for New Product Success, 496 • Horizontal
Models, 554 • Garbage Can Model, 555
Coordination Model, 497
IN PRACTICE: Volkswagen 558
IN PRACTICE: Corning, Inc. 498
Contingency Decision-Making Framework 560
Open Innovation and Crowdsourcing, 499 •
The Need for Speed, 500 Problem Consensus, 560 • Technical
Knowledge about Solutions, 561 •
Strategy and Structure Change 501
Contingency Framework, 561
The Dual-Core Approach, 502 •
Special Decision Circumstances 564
Organization Design for Implementing New
Management Processes, 502 High-Velocity Environments, 564 • Decision
Mistakes and Learning, 565
IN PRACTICE: GlaxoSmithKline 504
Culture Change 504 Chapter 13 Workshop: Style of Decision Making 568
Forces for Culture Change, 505 Case for Analysis: Government DTS 568
IN PRACTICE: Taco Bell 506
Case for Analysis: Dubois French Eatery 570
Culture Change Interventions, 507
IN PRACTICE: UnitedHealth Group 508 Chapter 14: Conflict, Power, and Politics 576
Tactics for Implementing Change 509 Purpose of This Chapter, 578
Leadership for Change, 509 • Techniques Interdepartmental Conflict in Organizations 578
for Implementation, 510 • Techniques for Sources of Conflict, 580
Overcoming Resistance, 511
IN PRACTICE: National Rifle Association (NRA) 582
Chapter 12 Workshop: Innovation Climate 514 Rational Versus Political Model, 582 • Tactics
Case for Analysis: Fabulous Footwear 515 for Enhancing Collaboration, 584
IN PRACTICE: The Freaky Friday Management Technique 586
Case for Analysis: Lamprey, Inc. 519
Power and Organizations 588
Chapter 13: Decision-Making Processes 526 Individual Versus Organizational Power, 588
• Power Versus Authority, 589 • Vertical Sources
of Power, 590
Types of Decisions 528
IN PRACTICE: Jay Bower, Crossbow Group 593
IN PRACTICE: Twitter 529
The Power of Empowerment, 594 •
Individual Decision Making 531 Horizontal Sources of Power, 594
Rational Approach, 531
Contentsxiii
IN PRACTICE: International Alliance of Theatrical Stage Tactics for Increasing Power, 605 • Political
Employees597 Tactics for Using Power, 606
Political Processes in Organizations 600 IN PRACTICE: The Vatican 607
Definition, 601 • When to Use Political BOOKMARK 14.0: Influence: Science and Practice 608
Activity, 602 IN PRACTICE: World Bank 609
IN PRACTICE: Nissan and Renault 602
Chapter 14 Workshop: How Do You Handle Conflict? 611
Using Soft Power and Politics 603
HOW DO YOU FIT THE DESIGN? Political Skills 604 Case for Analysis: East Tennessee News 613
Case for Analysis: The Burlington Plant 614
Integrative Cases 621

1.0 Disorganization at Semco: Human Resource 6.0 Lean Initiatives and Growth at Orlando Metering
Practices as a Strategic Advantage 623 Company 661
2.0 Walmart’s Failures in Entering Three Developed 7.0 SCG Lampang: Overcoming Community Resistance to
Markets 633 a Sustainability Project (A) 670
3.0 IKEA: Scandinavian Style 639 8.0 Costco: Join the Club 675
4.0 Engro Chemical Pakistan Limited—Restructuring 9.0 The Donor Services Department 679
the Marketing Division 644 10.0 Cisco Systems: Evolution of Structure 683
5.0 The New York Times Versus Amazon 656 11.0 ToolTopia.com 689
12.0 Sometimes a Simple Change Isn’t So Simple 693
Glossary698 Corporate Name Index 719

Name Index 709 Subject Index 723
Preface
My vision for the Thirteenth Edition of Organization Theory and Design is to

integrate current organization design problems with significant ideas and theories in
a way that is engaging and enjoyable for students. The biggest changes in the world
of organizations are the emergence of large digital, platform-based organizations
and the increasing focus in corporate America on the issues of social welfare and
sustainability. A new chapter in this edition gives students the chance to learn about
the design of dual-purpose organizations that combine profit-seeking and social
welfare goals to provide self-sustaining social benefits to society. In addition, the
chapter covering information technology has been completely revised to look at
the exciting development of new platform-based digital organizations, including
companies such as Uber, Airbnb, Facebook, and YouTube, and the increasing
digitalization of traditional organizations. An important change to the Thirteenth
Edition is a “Remember This” section at the end of each major section in a chapter
that reviews the key ideas and concepts covered in that section. Other significant
elements of this edition include “Managing by Design Questions” and “How Do
You Fit the Design?” boxes, along with updates to every chapter that incorporate
the most recent ideas, new case examples, new book reviews, and new end-of-book
integrative cases. The research and theories in the field of organization studies
are rich and insightful and will help students and managers understand their
organizational world and solve real-life problems. My mission is to combine the
concepts and models from organization theory with changing events in the real
world to provide the most up-to-date view of organization design available.
Distinguishing Features of the Thirteenth Edition

Many students in a typical organization theory course do not have extensive work
experience, especially at the middle and upper levels, where organization theory is
most applicable. Moreover, word from the field is that many students today often do
not read lengthy chapter opening examples or boxed examples, preferring instead
to focus on chapter content. To engage students in the world of organizations,
the Thirteenth Edition uses “Managing by Design Questions” at the start of each
chapter. These questions immediately engage students in thinking and expressing
their beliefs and opinions about organization design concepts. Another in-chapter
feature, “How Do You Fit the Design?” engages students in how their personal style
and approach will fit into an organization. Other experiential activities that engage
students in applying chapter concepts include new “BookMarks,” new “In Practice”
examples, new end-of-chapter cases, and new integrative cases for student analysis.
The total set of features substantially expands and improves the book’s content
and accessibility. These multiple pedagogical devices are used to enhance student
involvement in text materials.
xv
xvi Preface
New Chapters. Two chapters in the Thirteenth Edition contain virtually all new
material. Chapter 7 introduces students to the design of a new organizational form
called a dual-purpose or hybrid organization that combines profit-seeking and
social welfare goals to provide self-sustaining social benefits to society. Chapter 7
also discusses the design issues associated with an increasing corporate focus on
corporate social responsibility and sustainability. In addition, Chapter 9 (Chapter 8
in the previous edition) has been completely revised to explain the emerging
platform-based organization form, including companies such as Facebook, You-
Tube, Uber, and Airbnb, and the increasing digitalization of traditional industrial
organizations, such as GE and Siemens.
How Do You Fit the Design? The “How Do You Fit the Design?” feature pres-
ents a short questionnaire in each chapter about the student’s own style and pref-
erences, to quickly provide feedback about how they fit particular organizations
or situations. For example, questionnaire topics include “What Is Your Cultural
Intelligence?” “Your Strategy Strength,” “How Sustainable Are You?” “Are You
Ready to Fill an International Role?” “How Will You Handle Decentralization and
Autonomy?” “Corporate Culture Preference,” “Making Important Decisions,” and
“Personal Networking.” These short feedback questionnaires connect the student’s
personal preferences to chapter material to heighten interest and show the relevance
of chapter concepts.
Managing by Design Questions. Each chapter opens with three short opinion
questions that engage students in clarifying their thoughts about upcoming material
and concepts. These questions are based on the idea that when students express
their opinions first, they are more open to and interested in receiving material that
is relevant to the questions. Example questions, which ask students to agree or
disagree, include:
A certain amount of conflict is good for an organization.
The best measures of business performance are financial.
Artificial intelligence is objective and bias-free compared to human decision
making in organizations.
Platform-based organizations are a new form of organization, but the funda-
mental assumptions are the same as for a traditional industrial organization.
A CEO’s top priority is to make sure the organization is designed correctly.
Managers should use the most objective, rational process possible when making
a decision.
As a follow-up to the three “Managing by Design” questions, each chapter contains
three “Assess Your Answer” inserts that allow students to compare their original
opinions with the “correct” or most appropriate answers based on chapter con-
cepts. Students learn whether their mental models and beliefs about organizations
align with the world of organizations.
Opening Examples. Following the Managing by Design questions, each chapter’s

text begins with a brief, interesting example, often involving a problem or a sticky
situation, that gets students thinking about how the chapter topics apply in the
real world of organizations. Chapter 1 begins with a longer opening case about
GE’s successes and difficulties and the relevance of each chapter’s content to GE’s
Prefacexvii
issues. Nine of the 14 chapters are introduced by new real-life examples, including
Waymo’s self-driving cars, the U.S. Marine Corps Rifle Squads, Patagonia, and the
Coca-Cola Company.
BookMarks. “BookMarks” are short book reviews that reflect current issues
of concern for managers working in real-life organizations. These reviews, which
represent a unique feature of this text, describe the varied ways companies are
dealing with the challenges of today’s changing environment. New “BookMarks”
in the Thirteenth Edition include The Vanishing American Corporation: Navigating
the Hazards of a New Economy, Meltdown: Why Our Systems Fail and What We
Can Do About It, The Conversational Firm: Rethinking Bureaucracy in the Age
of Social Media, Astroball: The New Way to Win It All, Blue Ocean Shift: Beyond
Competing, and Rule Makers, Rule Breakers: How Tight and Loose Cultures Wire
Our World.
In Practice. This edition contains many new “In Practice” examples that illustrate
theoretical concepts in organizational settings. Many examples are international,
and all are based on real organizations. There are 38 new “In Practice” cases used
within chapters, including Uber and Didi Chuxing, Grameen Veolia Water, Warner
Media, LVMH Moët Hennessy Louis Vuitton, the Los Angeles Rams, Google
and Alphabet, Netflix, Panera Bread Company, Inditex S.A.’s Zara, BAE Systems,
Twitter, Volkswagen, Siemens Gamesa, Wells Fargo, Morgan Stanley, Huawei, and
the National Rifle Association. “In Practice” examples that have been retained from
the previous edition with substantial updating include Amazon Versus Walmart,
Carnival Cruise Lines, Omnicom and Publicis, Taco Bell, Allegiant Air, and Apple
and Samsung.
Manager’s Briefcase. Located in the chapter margins, this feature tells students
how to use concepts to analyze cases and manage organizations.
Text Exhibits. Frequent exhibits are used to help students visualize organiza-
tional relationships, and the artwork has been designed to clearly communicate
chapter concepts.
Remember This. At the end of each major section of a chapter is a “Remember

This” bullet-point summary of the key ideas and concepts discussed in that section.
The “Remember This” feature gives students a convenient way to review the essen-
tial points covered in each major section of the chapter.
Case for Analysis. These cases are tailored to chapter concepts and provide a
vehicle for student analysis and discussion. New cases for analysis include “Solo
Eyewear,” “Craft Originalities Inc.,” “Hermitage Escalator Company,” “Fiedler,
Philips & Wilson Design,” and “Digitalization in the Manufacturing Sector: Skills
in Transition.”
Integrative Cases. The integrative cases at the end of the text have been
expanded and positioned to encourage student discussion and involvement. The
new cases include The New York Times Versus Amazon, Lampang: Overcoming
Community Resistance to a Sustainability Project, Walmart’s Failures in Entering
xviii Preface
Three Developed Markets, and ToolTopia.com. Previous cases that have been
substantially revised and updated include Cisco Systems: Evolution of Structure,
Costco: Join the Club, and IKEA: Scandinavian Style.
New Concepts
The Thirteenth Edition contains an exceptional amount of new content. A new
chapter looks at dual-purpose organizations that combine profit-seeking and social
welfare goals, outlining designs for managing mission drift and the inherent goal
conflict in these companies. This chapter also includes a significant consideration
of designs for corporate sustainability and corporate social responsibility, including
CSR, ESG, the triple bottom line, conscious capitalism, and the bottom of the pyra-
mid concept. The chapter dealing with information technology has been completely
revised to include new platform-based digital organization designs, the impact of
artificial intelligence on organization design and management systems, and the
trend toward digitalization of all organizations.
Other concepts that have been added or expanded in the Thirteenth Edition include
the Internet of Things and its impact on big data analytics, a new form of control over
employees called algorithmic control, the use of nudge management for influencing
employees, the trend toward bossless organization designs and a new design called
the holacracy team structure, new material on overly complex technologies and high
reliability organizations, cultural intelligence, reverse innovation, the trend toward
glocalization, decision fallacies and cognitive biases, designing a high-performance
culture, SWOT analysis, scenario planning, and hard versus soft power.
Chapter Organization
Each chapter is highly focused and is organized into a logical framework. Many
organization 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 they apply in organizations. Moreover, each chapter sticks to the essen-
tial point. Students are not introduced to extraneous material or confusing meth-
odological squabbles that occur among organizational researchers. The body of
research in most areas points to a major trend, which is reported here. Several chap-
ters develop a framework that organizes major ideas into an overall scheme.
This book has been extensively tested on students. Feedback from students and
faculty members has been used in the revision. The combination of organization
theory concepts, book reviews, examples of leading organizations, self-insight
questionnaires, case illustrations, experiential exercises, and other teaching devices
is designed to meet student learning needs, and students have responded favorably.
Supplements
Instructor Companion Website. Access important teaching resources on the
companion website. For your convenience, you can download electronic versions of
the instructor supplements at the password-protected section of the site, including
the Instructor’s Manual, Test Bank, and PowerPoint presentations.
Prefacexix
To access these additional course materials and companion resources, please

visit www.cengagebrain.com. At the CengageBrain.com home page, search for
the ISBN of your title (from the back cover of your book) using the search box at
the top of the page. This will take you to the product page where free companion
resources can be found.
Instructor’s Manual. The Instructor’s Manual contains chapter overviews,

chapter outlines, lecture enhancements, discussion questions, discussion of activities,
discussion of chapter cases, and case notes for integrative cases.
Cognero Test Bank. The Cognero Test Bank contains easy-to-use test creation
software. Instructors can add or edit questions, instructions, and answers and
can select questions (randomly or numerically) by previewing them on the screen.
Instructors can also create and administer quizzes online.
PowerPoint Lecture Presentation. The PowerPoint Lecture Presentation

enables instructors to customize their own multimedia classroom presentations.
Prepared in conjunction with the text and instructor’s resource guide, the package
contains approximately 150 slides. It includes exhibits from the text as well as
outside materials to supplement chapter concepts. Material is organized by chapter
and can be modified or expanded for individual classroom use.
Acknowledgments
Textbook writing is a team enterprise. The Thirteenth Edition has integrated ideas and
hard work from many people to whom I am grateful. Reviewers and focus group par-
ticipants made an especially important contribution. They praised many features, were
critical of things that didn’t work well, and offered valuable suggestions.
David Ackerman Patricia Feltes

University of Alaska, Southeast Missouri State University
Kristin Backhaus Robert Girling
SUNY New Paltz Sonoma State University
Michael Bourke Yezdi H. Godiwalla
Houston Baptist University University of Wisconsin-Whitewater
Suzanne Clinton John A. Gould
Cameron University University of Maryland
Pat Driscoll George Griffin
Texas Woman’s University Spring Arbor University
Jo Anne Duffy Leda McIntyre Hall
Sam Houston State University Indiana University, South Bend
Cheryl Duvall Ralph Hanke
Mercer University Pennsylvania State University
Allen D. Engle, Sr Bruce J. Hanson
Eastern Kentucky University Pepperdine University
xx Preface
Thomas Head Richard Saaverda

Roosevelt University University of Michigan
Patricia Holahan W. Robert Sampson
Stevens Institute of Technology University of Wisconsin, Eau Claire
Jon Kalinowski Amy Sevier
Minnesota State University, Mankato University of Southern Mississippi
Guiseppe Labianca W. Scott Sherman
Tulane University Texas A&M University
Jane Lemaster Marjorie Smith
University of Texas–Pan American Pasadena City College
Kim Lukaszewski R. Stephen Smith
Wright State University Virginia Commonwealth University
Steven Maranville Filiz Tabak
University of Saint Thomas Towson University
Rick Martinez Thomas Terrell
Baylor University Coppin State College
Ann Marie Nagye Jack Tucci
Mountain State University Southeastern Louisiana University
Janet Near Renee Tyre
Indiana University Wilmington University
Julie Newcomer Isaiah Ugboro
Texas Woman’s University North Carolina A&T State University
Frank Nolan Warren Watson
Liberty University University of North Texas
Asbjorn Osland Richard Weiss
George Fox University University of Delaware
Laynie Pizzolatto Judith White
Nicholls State University Santa Clara University
Paula Reardon Jan Zahrly
State University of New York, Delhi University of North Dakota
Samantha Rice
Abilene Christian University
Among my professional colleagues, I am grateful to my friends and colleagues at

Vanderbilt’s Owen School—Bruce Barry, Ranga Ramanujam, Bart Victor, and Tim
Vogus—for their intellectual stimulation and feedback. I also owe a special debt to
Dean Eric Johnson and Associate Dean Richard Willis for providing the time and
resources for me to stay current on the organization design literature and develop
the revisions for the text.
I want to extend special thanks to my editorial associate, Pat Lane. She skill-
fully wrote materials on a variety of topics and special features, found resources,
and did an outstanding job with the copyedited manuscript and page proofs. Pat’s
personal enthusiasm and care for the content of this text enabled the Thirteenth
Prefacexxi
Edition to continue its high level of excellence. I also thank DeeGee Lester for her
work drafting new end-of-chapter and integrative cases. DeeGee’s creative writing
skills brought to life key organizational issues that students will enjoy discussing
and solving.
The team at Cengage also deserves special mention. Mike Giffen, Senior
Product Manager, gave his administrative support, encouragement, and ideas for
improvement to this new edition. Julia Chase, Senior Content Manager, managed
the production of the new edition superbly and made multiple insightful suggestions
along the way for content improvement. Courtney Wolstoncroft, Learning Designer,
and Carol Moore, Subject Matter Expert, offered expert advice for enhancing
student learning opportunities. Joseph Malcolm, Senior Project Manager, provided
superb project coordination and applied his creativity and management skills to
facilitate the book’s on-time completion. Audrey Wyrick, Marketing Manager, and
Alexis Cortez, Marketing Coordinator, offered additional support, creativity, and
valuable market expertise.
Finally, I want to acknowledge the love and support of my daughters, Danielle,
Amy, Roxanne, Solange, and Elizabeth, and my newest grandchildren, Nelson and
Samantha, Reed and Brielle, Phoenix and Roman, who make my life special during
our precious times together.
Richard L. Daft
Nashville, Tennessee
July 2019
Introduction to
1
PART
Organizations
Chapter 1 Organizations and Organization Design
iStock.com/chinaface
1
Organizations and
CHAPTER
Organization Design
iStock.com/chinaface
Learning Objectives Chapter Outline
After reading this chapter you should be A Look Inside General Electric
able to: The Jack Welch Era 1981–2001 • The Jeff
1. Discuss current challenges that organizations Immelt Era 2001–2017 • Events Since 2017
face. Organization Design in Action
2. Describe the importance of organizations in
Topics • Purpose of This Chapter • Current
society.
3. Describe how the structural dimensions of Challenges
organizations are shaped by contingencies What Is an Organization?
organizations face. Definition • From Multinationals to Nonprofits
4. Outline the evolution of organizational design. • Importance of Organizations
5. Compare and contrast organic and mechanistic
organization designs, including the contingency Dimensions of Organization Design
factors typically associated with each. Structural Dimensions • Contingency Factors
6. Explain the current trend toward bossless • Performance and Effectiveness Outcomes
organization design. The Evolution of Organization Design
Historical Perspectives • It All Depends: Key
Contingencies
The Contrast of Organic and Mechanistic Designs
The Emerging Bossless Design Trend
Framework for the Book
Levels of Analysis • Plan of the Book • Plan of
Each Chapter
Chapter 1: Organizations and Organization Design3
Before reading this chapter, please check whether you agree or disagree with
each of the following statements:
1 An organization can be understood primarily by understanding the people who

make it up.
I AGREE I DISAGREE
2 The primary role of managers in business organizations is to achieve maximum

efficiency.
I AGREE I DISAGREE
3 A CEO’s top priority is to make sure the organization is designed correctly.

I AGREE I DISAGREE
1.1 A Look Inside General Electric

General Electric (GE) has a glorious heritage. Founded by Thomas Edison in 1878
to generate and distribute electric power, GE became a world leader as a diversified
industrial company. For decades, GE had a reputation for excellent and innovative
management practices that other companies copied. As a model industrial company,
General Electric’s stock had been part of the Dow Jones Industrial Average since 1907.
Since the late 1800s, GE moved in and out of multiple businesses as a key part
of its strategy and success. In 2019, GE was still a diversified worldwide conglom-
erate. Its industrial businesses included the power segment (gas and steam power
systems), renewable energy (wind turbines), oil and gas (drilling systems), aviation
(jet engines), healthcare (MRI machines), transportation (locomotives), and capital
(loans to buy equipment).
However, by 2019 GE’s value had fallen precipitously from its earlier prosperity,
hitting a low of about 10 percent of its former value. How could a company that
rose to fame as the best managed company in the world fall on such hard times?
The answer to GE’s ups and downs lies partly with how its leaders used organiza-
tion design.
Reginald Jones was CEO from 1972 to 1981 and helped build GE’s sophisticated
strategic planning system. The GE conglomerate was composed of 43 autonomous
businesses, within which it had 10 groups, 46 divisions, and 190 departments that
participated in strategic planning. To help manage the massive amounts of paperwork
and information required from 43 strategic plans, GE added a management layer to
its structure to oversee sectors or groupings of businesses and reduce the load on top
management. GE was a respected and highly successful company, and paperwork and
bureaucracy seemed to increase along with organization size and complexity.
1.1a The Jack Welch Era 1981–2001

When he was hired as an engineer at GE in the early 1960s, Jack Welch hated the
company’s bureaucracy so much that he submitted his resignation after only six
months on the job. Fortunately for GE, Welch’s boss convinced him to stay and
4 Part 1: Introduction to Organizations
make a difference. After rising to CEO, Welch was quick to begin busting the
ever-growing GE bureaucracy. Near the end of his two-decade run as CEO, in 2001,
Fortune magazine named Welch “Manager of the Century” to recognize his aston-
ishing record at GE and also named GE the “Most Admired Company in the United
States.” What changes did Welch and GE managers make to achieve these accolades?
Strategy Changes. GE had begun using the advertising slogan “We bring good things
to life” in the late 1970s and it continued in the Welch era, with Welch maintaining
the strategy of being a conglomerate of diverse businesses. But Welch added a new key
objective: each business must become the No. 1 or No. 2 competitor in its industry or
risk being cut. GE’s new strategy was to be a leader in each of its industries.
Changes in Structure. Welch attacked the bureaucratic layers within GE by first

eliminating the sector level of management hierarchy that Reginald Jones created.
He continued to fight the over-managed hierarchy until the number of levels was
reduced from nine to as few as four. In many cases, department managers, sub-
sector managers, unit managers, and sometimes supervisors were eliminated along
with the sector managers. Now the CEO and top managers could deal directly with
each business without going through multiple layers of hierarchy. Moreover, Welch
stretched senior managers’ span of control to 15 or more direct reports to force
more delegation and autonomy downward.
Downsizing. Welch’s assault on the bureaucracy also involved cutting down the num-
ber of employees. GE eliminated tens of thousands of managers and employees through
delayering and de-staffing and even more through divestitures. The number of GE
employees declined from about 404,000 in 1982 to 292,000 by 1989. Welch was given
the nickname “Neutron Jack” because a neutron bomb killed people and left buildings
intact. The nickname was reinforced by the CEO’s replacement of 12 of his 14 business
heads. During this period, Welch was named “toughest boss in America.”
A New Culture. Welch wanted a corporate culture based on direct conversations

of openness and candor, eyeball to eyeball, between managers and direct reports
rather than via formal meetings and bureaucratic paperwork. A practice called
Work-Out was one answer. Groups of up to 100 employees from a business unit
would gather in a town meeting-style atmosphere. The business unit boss presented
a challenge and left the room. Employees divided into teams and attacked problems
and bureaucratic inefficiencies in their business unit with new, often dramatic, solu-
tions. On the third day, bosses returned and listened to the teams’ presentations.
Bosses had about one minute to decide whether to accept or reject each proposal.
One boss from an aircraft engine factory accepted 100 of 108 proposals, enabling a
transformation in factory operations. Bosses often lost their jobs if they were unable
to accept the dramatic change proposals from subordinates. Over 10 years, about
200,000 GE members participated in Work-Out.
Going Global. Welch also focused GE on global expansion. The U.S. market was
not big enough. Welch encouraged international expansion by increasing the stan-
dard for business unit performance from being the “No. 1 or No. 2” business in
your industry to being the No. 1 or No. 2 business in the world! To support each
company’s global effort, he hired a senior manager of International Operations to
facilitate each business’s overseas expansion. GE managers had to learn to think
and act globally.
Chapter 1: Organizations and Organization Design5
Performance Management, Stretch Goals, and Control. Welch and his most senior
executives were responsible for the progress of GE’s top 3,000 executives. They visited
each company to review progress toward stated targets, often including “stretch” goals,
another concept Welch introduced. Stretch goals used managers’ “dreams” as targets
that might be impossible to reach but would motivate exceptional accomplishment. In
another move, Welch installed a manager evaluation system on a “vitality curve.” This
annual review process became known as “rank and yank,” because the top 20 percent
received generous rewards, the vital 70 percent were largely left alone, and the bottom
10 percent were encouraged to leave the company.
E-Business. About two years from retirement, Welch saw the potential of the Inter-
net as “the biggest change I have ever seen.” He thought a big, traditional company
like GE might be afraid of the new technology, so he required each business unit
to establish a full-time team charged with including strategic opportunities for the
Internet. Digitizing the company was Welch’s final major initiative.
To summarize, the Jack Welch era at GE was the most phenomenal in company
history. Welch and GE earned prestigious awards, such as Financial Times naming GE
the “Most Admired Company in the World.” Moreover, Jack Welch became an icon for
brilliant management and his name became known in popular culture. GE’s market
value increased an astonishing 27 times from $18 billion to $500 billion under Welch’s
guidance. In the year 2000, GE was the most valuable company in the world.
1.1b The Jeff Immelt Era 2001–2017

Welch personally chose Jeff Immelt to become GE’s new CEO. Immelt had broad
experience at GE, changing jobs often across GE Appliance, GE Plastics, and GE
Healthcare, eventually running the healthcare unit.
The External Environment. Immelt and GE faced major environmental challenges

almost from Day 1—starting with the September 11, 2001 terrorist attacks that stunned
the world. GE also endured the 2002 stock market crash, an oil price collapse, and the
2008 collapse of Wall Street and the long global recession that followed.
Strategy Changes. Immelt shifted GE toward an industrial business focus consis-

tent with GE’s industrial roots while simultaneously learning to thrive in the Inter-
net age. He added software capability to GE and predicted GE would become a
major software company. Immelt also placed special emphasis on globalization and
on more innovations via greater investments in research and development.
Innovation. Under Immelt’s watch, GE developed a new concept called “reverse

innovation.” GE’s innovation strategy for decades had been to develop high-end
products in the United States and then sell the products internationally with modest
adaptations to fit local conditions. Reverse innovation means to develop low-end
products in poor countries and then sell those products in wealthy, well-developed
countries. One example was the development of a cheap, portable ultrasound
machine in China that was also sold successfully in the United States and Europe.
Sustainability. At GE, sustainability means aligning business strategy to meet soci-

etal needs, while minimizing environmental impact and advancing social develop-
ment. Immelt pushed GE to embed sustainability at every level, from high-visibility
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thousand Hunanese troops at Hami, and twenty thousand more
under General Liu[140] at Kashgar. One of his Generals was that
Tung Fu-hsiang who subsequently became known to the world as
the leader of the bloodthirsty Kansuh soldiery at Peking in 1900; at
the taking of Khotan he laid the foundations of his reputation for
truculent ferocity. Tso firmly believed that his Hunanese were the
finest fighting men in the world, and was most anxious to use them,
in 1879, in trying conclusions with the Russians, boasting that with
two hundred thousand of them he would easily march to St.
Petersburg and there dictate a peace which should wipe out the
humiliating concessions negotiated by Ch’ung Hou in the Treaty of
Livadia. Fortunately for him, his patriotic ambitions came to the ears
of the Empress Dowager, who, desiring no more complications,
recalled him in hot haste to Peking, where she loaded him with
honours and rewards.
His was the simple nature of the elementary fighter, inured to the
hard life of camps. He knew little of other lands, but professed the
greatest admiration for Bismarck, chiefly because of the enormous
indemnity which the German conqueror had exacted as the price of
victory, Tso’s own troops being accustomed to live almost exclusively
on the spoils of war. He despised wealth for himself, but loved
plunder for his men.
Upon his triumphant return to Peking he was informed that the
Palace authorities expected him to pay forty thousand taels as “gate-
money” before entering the capital. Tso flatly refused. “The Emperor
has sent for me,” he said, “and I have come, but I will not pay a cash.
If he wishes to see me, he must either obtain for me free entry or pay
the gate-money himself.” He waited stolidly five days and then had
his way, entering scot-free. Later, when the Empress Dowager made
him a present of ten thousand taels, he divided the money between
his soldiers and the poor.
SUN CHIA-NAI
This official, chiefly known to fame among his countrymen as one
of the tutors of His Majesty Kuang-Hsü, was a sturdy Conservative of
the orthodox type, but an honest and kindly man. His character and
opinions may be gauged from a well-known saying of his: “One
Chinese character is better than ten thousand words of the
barbarians. By knowing Chinese a man may rise to become a Grand
Secretary; by knowing the tongues of the barbarians, he can at best
aspire to become the mouth-piece of other men.”
Ceiling and Pillars of the Tai Ho Tien.
Photo, Ogawa, Tokio.
In his later years he felt and expressed great grief at the condition
of his country, and particularly in regard to the strained relations
between the Empress Dowager and the Emperor. He traced the first
causes of these misfortunes to the war with Japan, and never
ceased to blame his colleague, the Imperial Tutor Weng T’ung-ho,
for persuading the Emperor to sign the Decree whereby that war was
declared, which he described as the act of a madman. Weng,
however, was by no means alone in holding the opinion that China
could easily dispose of the Japanese forces by land and by sea. It
was well-known at Court, and the Emperor must have learned it from
more than one quarter, that several foreigners holding high positions
under the Chinese Government, including the Inspector-General of
Customs (Sir Robert Hart), concurred in the view that China had
practically no alternative but to declare war in view of Japan’s high-
handed proceedings and insulting attitude. Prestige apart, it was
probable that the Emperor was by no means averse to taking this
step on his own authority, even though he knew that the Empress
Dowager was opposed to the idea of war, because of its inevitable
interference with the preparations for her sixtieth birthday; at that
moment, Tzŭ Hsi was living in quasi-retirement at the Summer
Palace. After war had been declared and China’s reverses began,
she complained to the Emperor and to others, that the fatal step had
been taken without her knowledge and consent, but this was only
“making face,” for it is certain that she had been kept fully informed
of all that was done and that, had she so desired, she could easily
have prevented the issue of the Decree, and the despatch of the
Chinese troops to Asan. Sun Chia-nai’s reputation for sagacity was
increased after the event, and upon the subsequent disgrace and
dismissal of Weng T’ung-ho he stood high in Her Majesty’s favour.
Nevertheless his loyalty to the unfortunate Emperor remained
unshaken.
In 1898, his tendencies were theoretically on the side of reform,
but he thoroughly disapproved of the methods and self-seeking
personality of K’ang Yu-wei, advising the Emperor that, while
possibly fit for an Under-Secretaryship, he was quite unfitted for any
high post of responsibility. When matters first approached a crisis, it
was by his advice that the Emperor directed K’ang to proceed to
Shanghai for the organisation of the Press Bureau scheme. Sun,
peace-loving and prudent, hoped thereby to find an outlet for K’ang
Yu-wei’s patriotic activities while leaving the Manchu dovecots
unfluttered. Later, after the coup d’état, being above all things
orthodox and a stickler for harmonious observance of precedents, he
deplored the harsh treatment and humiliation inflicted upon the
Emperor. It is reported of him that on one occasion at audience he
broke down completely, and with tears implored the Empress
Dowager not to allow her mind to be poisoned against His Majesty,
but without effect.
Upon the nomination of the Heir Apparent, in 1900, which he, like
many others, regarded as the Emperor’s death sentence, he sent in
a strongly worded Memorial against this step, and subsequently
denounced it at a meeting of the Grand Council. Thereafter, his
protests proving ineffective, he resigned all his offices, but remained
at the capital in retirement, watching events. At the commencement
of the Boxer crisis, unable to contain his feelings, he sent in a
Memorial through the Censorate denouncing the rabid reactionary
Hsü T’ung, whom he described as “the friend of traitors, who would
bring the State to ruin if further confidence were placed in him.”
Throughout his career he displayed the courage of his convictions,
which, judged by the common standard of Chinese officialdom, were
conspicuously honest. He was a man of that Spartan type of private
life which one finds not infrequently associated with the higher
branches of Chinese scholarship and Confucian philosophy; it was
his boast that he never employed a secretary, but wrote out all his
correspondence and Memorials with his own hand.
A pleasing illustration of his character is the following: He was
seated one day in his shabby old cart, and driving down the main
street to his home, when his driver collided with the vehicle of a well-
known Censor, named Chao. The police came up to make enquiries
and administer street-justice, but learning that one cart belonged to
the Grand Secretary Sun, they told his driver to proceed. The
Censor, justly indignant at such servility, wrote a note to Sun in which
he said: “The Grand Secretary enjoys, no doubt, great prestige, but
even he cannot lightly disregard the power of the Censorate.” Sun,
on receiving this note, proceeded at once on foot in full official dress
to the Censor’s house, and upon being informed that he was not at
home, prostrated himself before the servant, saying: “The nation is
indeed to be congratulated upon possessing a virtuous Censor.”
Chao, not to be outdone in generosity, proceeded in his turn to the
residence of the Grand Secretary, intending to return the
compliment, but Sun declined to allow him to apologise in any way.
TUAN FANG
In 1898, Tuan Fang was a Secretary of the Board of Works; his
rapid promotion after that date was chiefly due to the patronage of
his friend Jung Lu. For a Manchu, he is remarkably progressive and
liberal in his views.
In 1900, he was Acting-Governor of Shensi. As the Boxer
movement spread and increased in violence, and as the fears of
Jung Lu led him to take an increasingly decided line of action against
them, Tuan Fang, acting upon his advice, followed suit. In spite of
the fact that at the time of the coup d’état he had adroitly saved
himself from clear identification with the reformers and had penned a
classical composition in praise of filial piety, which was commonly
regarded as a veiled reproof to the Emperor for not yielding implicit
obedience to the Old Buddha, he had never enjoyed any special
marks of favour at the latter’s hands, nor been received into that
confidential friendliness with which she frequently honoured her
favourites.
In his private life, as in his administration, Tuan Fang has always
recognised the changing conditions of his country and endeavoured
to adapt himself to the needs of the time; he was one of the first
among the Manchus to send his sons abroad for their education. His
sympathies were at first unmistakably with K’ang Yu-wei and his
fellow reformers, but he withdrew from them because of the anti-
dynastic nature of their movement, of which he naturally
disapproved.
As Acting-Governor of Shensi, in July, 1900, he clearly realised
the serious nature of the situation and the dangers that must arise
from the success of the Boxer movement, and he therefore issued
two Proclamations to the province, in which he earnestly warned the
people to abstain from acts of violence. These documents were
undoubtedly the means of saving the lives of many missionaries and
other foreigners isolated in the interior. In the first a curious passage
occurs, wherein, after denouncing the Boxers, he said:
“The creed of the Boxers is no new thing: in the reign of

Chia-Ch’ing, followers of the same cult were beheaded in
droves. But the present-day Boxer has taken the field
ostensibly for the defence of his country against the foreigner,
so that we need not refer to the past. While accepting their
good intentions, I would merely ask, is it reasonable for us to
credit these men with supernatural powers or invulnerability?
Are we to believe that all the corpses which now strew the
country between Peking and the sea are those of spurious
Boxers and that the survivors alone represent the true faith?”
After prophesying for them the same fate which overtook the
Mahomedan rebels and those of the Taiping insurrection, he
delivered himself of advice to the people which, while calculated to
prevent the slaughter of foreigners, would preserve his reputation for
patriotism. It is well, now that Tuan Fang has fallen upon evil days, to
remember the good work he did in a very difficult position. His
Proclamation ran as follows:—
“I have never for a moment doubted that you men of Shensi

are brave and patriotic and that, should occasion offer, you
would fight nobly for your country. I know that if you joined
these Boxers, it would be from patriotic motives. I would have
you observe, however, that our enemies are the foreign
troops who have invaded the Metropolitan province and not
the foreign missionaries who reside in the interior. If the
Throne orders you to take up arms in the defence of your
country, then I, as Governor of this province, will surely share
in that glory. But if, on your own account, you set forth to slay
a handful of harmless and defenceless missionaries, you will
undoubtedly be actuated by a desire for plunder, there will be
nothing noble in your deed, and your neighbours will despise
you as surely as the law will punish you.
“At this very moment our troops are pouring in upon the
capital from every province in the Empire. Heaven’s avenging
sword is pointed against the invader. This being so, it is
absurd to suppose that there can be any need for such
services as you people could render at such a time. Your
obvious and simple duty is to remain quietly in your homes,
pursuing your usual avocations. It is the business of the
official to protect the people, and you may rely upon me to do
so. As to that Edict of Their Majesties which, last year,
ordered the organisation of trained bands, the idea was
merely to encourage self-defence for local purposes, on the
principle laid down by Mencius of watch and ward being kept
by each district.”
A little later the Governor referred to that Decree of the Empress

Dowager (her first attempt at hedging) which began by quoting the
“Spring and Autumn Classic” in reference to the sacred nature of
foreign Envoys, and used it as a text for emphasising the fact that
the members of the several missionary societies in Shensi had
always been on the best of terms with the people. He referred to the
further fact that many refugees from the famine-stricken districts of
Shansi, and numbers of disbanded soldiers, had crossed the borders
of the province, and fearing lest these lawless folk should organise
an attack upon the foreigners, he once more urged his people to
permit no violation of the sacred laws of hospitality. The province had
already commenced to feel the effects of the long drought which had
caused such suffering in Shansi, and the superstitious lower classes
were disposed to attribute this calamity to the wrath of Heaven,
brought upon them by reason of their failure to join the Boxers. Tuan
Fang proceeded to disabuse their minds of this idea.
“If the rain has not fallen upon your barren fields,” he said,
“if the demon of drought threatens to harass you, be sure that
it is because you have gone astray, led by false rumours, and
have committed deeds of violence. Repent now and return to
your peaceful ways, and the rains will assuredly fall. Behold
the ruin which has come upon the provinces of Chihli and
Shantung; it is to save you from their fate that I now warn you.
Are we not all alike subjects of the great Manchu Dynasty,
and shall we not acquit ourselves like men in the service of
the State? If there were any chance of this province being
invaded by the enemy, you would naturally sacrifice your lives
and property to repel him, as a matter of simple patriotism.
But if, in a sudden access of madness, you set forth to
butcher a few helpless foreigners, you will in no wise benefit
the Empire, but will merely be raising fresh difficulties for the
Throne. For the time being, your own consciences will accuse
you of ignoble deeds, and later you will surely pay the penalty
with your lives and the ruin of your families. Surely, you men
of Shensi, enlightened and high-principled, will not fall so low
as this? There are, I know, among you some evil men who,
professing patriotic enmity to foreigners and Christians, wax
fat on foreign plunder. But the few missionary Chapels in this
province offer but meagre booty, and it is safe to predict that
those who begin by sacking them will certainly proceed next
to loot the houses of your wealthier citizens. From the burning
of foreigners’ homes, the conflagration will spread to your
own, and many innocent persons will share the fate of the
slaughtered Christians. The plunderers will escape with their
booty, and the foolish onlookers will pay the penalty of these
crimes. Is it not a well-known fact that every anti-Christian
outbreak invariably brings misery to the stupid innocent
people of the district concerned? Is not this a lamentable
thing? As for me, I care neither for praise nor blame; my only
object in preaching peace in Shensi is to save you, my
people, from dire ruin and destruction.”
Tuan Fang was a member of the Mission to foreign countries in

1905 and has received decorations and honours at the hands of
several European sovereigns. In private life he is distinguished by
his complete absence of formality; a genial, hospitable man, given to
good living, delighting in new mechanical inventions and fond of his
joke. It is he who, as Viceroy of Nanking, organised the International
Exhibition now being held in that city. As Viceroy of Chihli, he was in
charge of the arrangements for the funeral of the Empress Dowager
in November of last year, and a week after that impressive ceremony
was denounced for alleged want of respect and decorum. It was
charged against him that he had permitted subordinate officials to
take photographs of the cortège and that he had even dared to use
certain trees in the sacred enclosure of the Mausolea as telegraph
poles, for which offences he was summarily cashiered; since then he
has lived in retirement. The charges were possibly true, but it is
matter of common knowledge that the real reason for his disgrace
was a matter of Palace politics rather than funereal etiquette, for he
was a protégé of the Regent and his removal was a triumph for the
Yehonala clan, at a time when its prestige called for a demonstration
of some sort against the growing power and influence of the
Emperor Kuang-Hsü’s brothers.
FOOTNOTES
[1] As an example of unbalanced vituperation, uttered in good
faith and with the best intentions, vide The Chinese Crisis from
Within by “Wen Ching,” republished from the Singapore Free
Press in 1901 (Grant Richards).
[2] About £120.
[3] The same euphemism was employed to describe the Court’s
flight in August 1900.
[4] Grandfather of Na T’ung, the present head of the Waiwupu.
[5] “Yi” and “Cheng” are honorific names, meaning respectively
“harmonious” and “sedate.”
[6] The expression has reference to the fact that the Empresses
Regent are supposed to be concealed from the sight of Ministers
at audience by a curtain suspended in front of the Throne.
[7] The age of the Emperor was less than six, but the solemn
farce of his alleged acts and opinions is solemnly accepted by the
Chinese as part of the eternal order of things.
[8] To allow women privily to accompany the Imperial cortège is
a crime punishable by law with the penalty of the lingering death.
[9] The Prison of the Imperial Clan Court.
[10] Poetical term for Purgatory.
[11] Hereditary titles in China usually descend in a diminishing
scale.
[12] He was the father of that Marquis Tseng who, as Minister
to England (1878), lived to be credited by the British press with
literary abilities which he did not possess and liberal opinions
which he did not share. His grandsons, educated partly in
England, have lately been distinguished for that quality of patriotic
Conservatism which prides itself on having no intercourse with
foreigners.
[13] A short biographical note on Tso Tsung-t’ang, the hero of
the Mahomedan rebellion who gained distinction under Tseng
against the Taipings, is given in the appendix.
[14] So called because they declined to plait the queue, as a
sign that they rejected Manchu rule.
[15] His younger brother, subsequently made an earl and
Viceroy of Nanking for many years.
[16] This is merely figurative, referring to an ancient and
obsolete custom.
[17] So named because, before becoming a eunuch at the age
of sixteen, he was apprenticed to a cobbler at his native place,
Ho-Chien fu, in Chihli, from which district most of the eunuchs
come.
[18] This form of argument, under similar conditions, obtains all
over the Empire. “How could I possibly squeeze my master?”
says the servant.
[19] Quotation from the Book of Changes, implying a sense of
impending danger.
[20] Chinese pamphleteers in Canton record the event with
much detail, and state that this son is alive to-day under the name
of Chiu Min.
[21] A fantastic account of this mission is contained in an
imaginative work recently published (La Vie Secrète de la Cour de
Chine, Paris, 1910), where the Chief Eunuch’s name is given as
“Siao.” This curious blunder is due to the fact that the Eunuch’s
nickname, on account of his stature, was “Hsiao An’rh” (little An),
just as Li hien-Ying’s is “P’i Hsiao” Li all over China.
[22] The Phœnix flag signified that he was sent by the
Empresses Regent.
[23] The same expression is used of a novice taking the vows
of Buddhist priesthood.
[24] Tzŭ Hsi was fond of masquerading with her favourite, till
well advanced in years. One photograph of her is on sale in
Peking, wherein she is posing as the Goddess of Mercy (Kuanyin)
with Li in attendance as one of the Boddhisatvas.
[25] A term of humility.
[26] This Kuei Ching was an uncle of Tuan Fang, recently
Viceroy of Chihli, and a man generally respected.
[27] This disease is regarded amongst the Chinese as one of
good omen, especially if the symptoms develop satisfactorily.
[28] The annual and seasonal sacrifices at the ancestral
Temple and at the Imperial tombs involve “kowtowing” before
each tablet of the sacred ancestors, and this cannot be done in
the presence of one of the same generation as the last deceased,
much less by him.
[29] Prince Kung was the sixth, Prince Ch’un the seventh, in
order of seniority.
[30] On the occasion to which the Memorialist refers, the lawful
heir to the Throne committed suicide. The allusion would be
readily understood (if not appreciated) by the Empress Dowager,
whose irregular choice of Kuang-Hsü and violation of the dynastic
laws had certainly led to the death of A-lu-te. Looked at from the
Chinese scholar’s point of view, the innuendo was in the nature of
a direct accusation.
[31] The writer refers to the united action of the Manchu Princes
and nobles who assisted in the establishment of law and order,
and the expulsion of the Chinese rebels and Pretenders, during
the troublous time of the first Regency (1644) and the minority of
the infant Emperor, Shun-Chih.
[32] The burial place was close to, but necessarily outside, the
large enclosed park which contains the Imperial mausolea.
[33] Burial clothes should all be new and clean—by cutting
away the soles, his boots would look less shabby.
[34] I.e. by causing the Empresses to have his corpse
mutilated.
[35] About £10.
[36] The point whence, according to legend, the Yellow
Emperor ascended to heaven and where his clothes were buried.
[37] A quotation from Tseng Tzu, one of the most noted
disciples of Confucius.
[38] A sort of Chinese Mr. Malaprop, known to history as one
who invariably spoke at the wrong time.
[39] It is curious to note how frequently the Imperial tombs have
been the scene of such unseemly wrangles, wherein grievances
and passions, long pent up within the Palace precincts, find
utterance. A case of this kind occurred in 1909, on the occasion
of the burial of Tzŭ Hsi, when the surviving consorts of T’ung-Chih
and Kuang-Hsü, having quarrelled with the new Empress
Dowager (Lung Yü) on a similar question of precedence, refused
to return to the City and remained in dudgeon at the tombs until a
special mission, under an Imperial Duke, was sent humbly to beg
them to come back, to the no small scandal of the orthodox.
[40] This title was originally given to an infamous eunuch of the
Court of the Ming Emperor Chu Yü-hsiao, who, because of his
influence over his dissolute master, was canonised by the latter
after his death. The same title was claimed and used by the
Eunuch An Te-hai, vide supra, page 90.
[41] See above, page 93.
[42] Tzŭ Hsi had no love for this official, for it was he who
drafted Hsien-Feng’s valedictory Decree, at the dictation of Su
Shun, in 1861. Vide page 33.
[43] Sun remained in high favour until December 1894, when
the Emperor was induced by Weng T’ung-ho to dismiss him. At
that time the Empress was taking little active part in the direction
of affairs, occupying her time with theatricals and other diversions
at the Summer Palace, and playing a watching game in politics,
so that for a while Sun’s life was in real danger.
[44] Apricot yellow is a colour reserved, strictly speaking, for the
use of the Throne.
[45] In that event it would not be the Yehonala clan alone which
would benefit, as the present Emperor’s grandmother (who was
one of Prince Ch’un’s concubines) is still alive and would
necessarily share in any honours posthumously conferred on her
husband, whilst Kuang-Hsü’s mother would be excluded.
[46] The results of the Prince’s eminent services in naval and
military reorganisation were demonstrated three years later, not
entirely to the nation’s satisfaction, in the war with Japan.
[47] From a sentence in the Book of Rites, which means “to
give rest and peace to Heaven-sent old age.”
[48] Sir Walter Hillier, appointed by Yüan Shih-k’ai to be foreign
adviser to the Grand Council in 1908. When Yuan was compelled
to flee from Seoul before the advance of the Japanese, he was
escorted to Chemulpo by a guard of blue-jackets.
[49] i.e. the Japanese (literal translation).
[50] At present Chinese Minister in London.
[51] Now known as the Empress Dowager Lung Yü.
[52] Kang Yi was a bigoted reactionary and the arch instigator
of the Boxer movement at the capital. Young China has carefully
preserved one of his sayings of that time: “The establishment of
schools and colleges has only encouraged Chinese ambitions
and developed Chinese talent to the danger of the Manchu
Dynasty: these students should therefore be exterminated without
delay.”
[53] In 1901, this official begged Tzŭ Hsi, just before her
departure from K’ai-Feng fu for Peking, not to return thither, on
the ground that her Palace had been polluted by the presence of
the foreign barbarians.
[54] The Emperor prided himself on being a great stickler in
such matters, and many of the younger officials feared him on
account of his quick temper and martinet manner in dealing with
them.
[55] K’ang’s subsequent escape under British protection, in
which one of the writers was instrumental, is graphically
described in despatch No. 401 of Blue Book No. 1 of 1899.
[56] She was thrown down a well, by Tzŭ Hsi’s orders, as the
Court prepared for flight after the entrance of the allied forces into
Peking. (Vide infra.)
[57] It is interesting to note that this Manchu Prince (Tsai Ch’u)
was released from prison by the present Regent, the Emperor’s
brother, and was appointed to the command of one of the Manchu
Banner Corps on the same day, in January 1909, that Yüan Shih-
k’ai was dismissed from the viceroyalty of Chihli. The Emperor’s
party, as opposed to the Yehonala Clan, heartily approved of his
reinstatement.
[58] Vide Blue Book China No. I. of 1899, letters Nos. 266, 401,
and 426.
[59] As an example of Chinese official methods: the Shanghai
Taotai when requesting the British Consul-General’s assistance to
arrest K’ang Yu-wei, did not hesitate to say that the Emperor was
dead, murdered by the Chief Reformer. Vide Blue Book No. I of
1899; letter No. 401.
[60] From The Times of 31st March, 1899.
[61] Chang Yin-huan, who had been created a Knight
Commander of St. Michael and St. George in connection with
Queen Victoria’s Jubilee celebration, was subsequently put to
death, after banishment to Turkestan. An order given by Prince
Tuan at the commencement of the Boxer crisis was the
immediate cause of his execution.
Another reformer named Hsü Chih-ching was condemned to
imprisonment for life in the Board of Punishments under this
same Decree; he was released by the Allies in August 1900,
when he proceeded at once to T’ai-Yüan fu, and handed himself
over to justice, disdaining to accept his release at the hands of
foreigners. This incident is typical of the Chinese officials’ attitude
of mind and of their reverence for the Decrees of the head of the
State.
[62] On the occasion of her seventieth birthday (1904), the
Empress Dowager promulgated a general amnesty for all those
who had taken part in the Reform Movement of 1898, excepting
only the leaders K’ang Yu-wei and Liang Ch’i-ch’ao, who were
expressly excluded from grace, and Dr. Sun Yat-sen, who was a
fugitive from justice on other counts.
[63] Li Tuan-fen returned from exile in Turkestan under the
amnesty of 1904.
[64] Weng T’ung-ho has been posthumously restored to his full
rank and titles by a Decree of the present Regent. Thus is the
Emperor tardily justified and the pale ghosts of his followers
continue to suffer, even in Hades, the chances and changes of
Chinese official life!
[65] This official was eventually decapitated by the allies, as
one of the originators of the Boxer rising.
[66] This Prefect of Hsüanhua was subsequently promoted by
the Empress Dowager, when passing through that city, at the
beginning of the flight from Peking.
[67] Hsü, to whom Jung Lu was writing, was a Cantonese by
birth, and was at this time Viceroy of Foochow.
[68] A note on the career and character of this courageous
official is given in the Appendix.
[69] The Decree is given at the end of this chapter.
[70] The victim was British, not French—viz., the Rev. Mr.
Brooks, killed on 31st December, 1899, just after Yu Hsien’s
removal had been arranged.
[71] Between January and June the entries are of no particular
interest.
[72] The Supreme Deity of the Taoists and tutelary spirit of the
Boxers.
[73] A nickname of An Te-hai, vide supra, p. 90 et seq.
[74] The Chancellor of the Japanese Legation, Mr. Sugiyama.
[75] This was a forgery.
[76] A quotation from the “Book of Odes.”
[77] This man’s subsequent arrest and execution are described
in a Censorate memorial at the end of this chapter.
[78] Mr. (later Sir Harry) Parkes.
[79] Professor James.
[80] Mentioned above under full name of Chi Shou-ch’eng. Chi
Pin was his “hao” or intimate personal name.
[81] Ching Shan’s house was just inside the Tung An Gate of
the Imperial City, about a quarter of a mile to the north of the
present Legation area boundary.
[82] This favourite companion of Tzŭ Hsi was really Jung Lu’s
secondary consort, who was only raised to the rank of la première
légitime after his first wife’s death in September, 1900. She
survived him and continued to exercise great influence with the
Old Buddha.
[83] A short biographical note on Chang Chih-tung will be found
in the Appendix.
[84] Vide under June 20th.
[85] A quotation from Mencius.
[86] Quotation from Mencius.
[87] History of events under the Chou dynasty, by Confucius;
one of the Five Classics.
[88] How well and successfully she did it, has been told in Miss
Catherine A. Carl’s book, With the Empress Dowager of China.
The painting of her portrait for the St. Louis exhibition was in itself
an example of Tzŭ Hsi’s “cardinal virtues of government,” which
she practised with conspicuous success on the simple-minded
wife of the American Minister, Mrs. Conger. (Vide Cordier,
Relations de la Chine, Vol. III., p. 423.)
[89] The second character of Prince Tuan’s name contained the
radical sign for dog, and was given him by the Emperor Hsien-
Feng, because he had been begotten during the period of
mourning for his parent Tao-Kuang; it being an offence, under
Chinese law, for a son to be begotten during the twenty-seventh
months of mourning for father or mother.
[90] A classical allusion, in common use, equivalent to “Ne
sutor ultra crepidam.”
[91] A traitor whose crime and punishment are recorded in the
Spring and Autumn Annals.
[92] A classical expression, meaning the Spirit-world.
[93] Referring to his part in the coup d’état of 1898.
[94] The expression is figurative.
[95] A species of owl—classical reference.
[96] Consort of Kuang-Hsü, now Empress Dowager, known by
the honorific title of Lung-yü.
[97] Prince Ch’un subsequently married Jung Lu’s daughter, by
special command of the Empress Dowager.
[98] This Memorial was never published officially, and Tzŭ Hsi
refrained from issuing a Rescript thereto; it was forwarded by an
official with the Court at Hsi-an to one of the vernacular papers at
Shanghai, which published it.
[99] A lane four hundred yards north of the glacis which now
surrounds the Legation quarter.
[100] Quotation from Confucius.
[101] Tzŭ Hsi was addicted to gentle sarcasm of this kind in
Decrees.
[102] Admiral Seymour’s expedition.
[103] See Dr. Smith’s “China in Convulsion,” page 361.
[104] The North Gate of the Imperial City.
[105] At that time Governor-designate of Shensi. He had come
north with troops to defend the capital.
[106] Tutor of the Heir Apparent, father-in-law of the Emperor
T’ung-Chih, his daughter, the Empress Chia-Shun (A-lu-te), had
committed suicide in 1875 (vide supra).
[107] An allusion to Kuang-Hsü’s order for Jung Lu’s summary
execution in September 1898.
[108] See biographical note, infra (Appendix).
[109] Deceased, 26th August 1910.
[110] As he had done for Tzŭ Hsi’s son, the Emperor T’ung-
Chih.
[111] Amongst Chinese officials no characteristic is more
common than their jealousy of each other and their promiscuous
habit of backbiting and slandering.
[112] It was because of Tung Fu-hsiang’s great popularity in
Kansu that Her Majesty, fearing another rebellion, hesitated to
order his execution.
[113] This sentence is equivalent to imprisonment for life.
[114] See Ching Shan’s Diary, page 258; also cf. page 324.
[115] The Empress Dowager was from the outset most anxious
to screen and protect this official, for whom she had a great
personal regard. On reviewing his case in the light of later
information and current public opinion, it would appear that most
of his actions were instigated, if not ordered, by Kang Yi, and that
the decision of the foreign Ministers to insist upon his death was
taken without any very definite information as to his share of guilt.
[116] In accordance with prescribed custom.
[117] He was directly descended from Nurhachu, the conqueror
of the Mings.
[118] This was no empty boast. Yü Hsien, cold-blooded fanatic
that he was, bore a most honourable name for absolute integrity
and contempt for wealth. He died in poverty, so miserable, that
amongst all his clothes there was not one suit new enough to be
fittingly used for his burial robes. His name is still held in high
honour by the people of Shansi, who sing the praises of his
Governorship, and who claim that his proud spirit it was which
protected their Province from being invaded by the foreigners.
They erected a shrine to his memory, but it was demolished to
appease the foreign Powers.
[119] The Chinese rendering of a German name.
[120] This is the Chinese date; the day of the audience was the
4th September.
[121] Wen T’i had been a censor in 1898, but was cashiered by
the Emperor for being reactionary. Tzŭ Hsi restored him to favour
after the coup d’état.
[122] Precisely the same quotation was used by Ch’ung Hou in
a despatch to the British Minister (Mr. Wade) in 1861, under
somewhat similar circumstances. Since that date the most
frequent criticism of foreign observers on the subject has been
“plus ça change, plus c’est la même chose.”
[123] The literal translation of the Chinese is, “She has eaten
her meal at sunset, and worn her clothes throughout the night.”
[124] Ginseng, the specific remedy of the Chinese
pharmacopœia for debility, supposed to possess certain magical
qualities when grown in shapes resembling the human form or
parts thereof. The best kind, supplied as tribute to the Throne,
grows wild in Manchuria and Corea.
[125] This house-law was made by the Emperor Ch’ien Lung to
prevent his Court officials from intriguing for the favour of the Heir
Apparent.
[126] The chief eunuch in reality objected to the Buddhist pontiff
on his own account, for the Lama’s exactions from the
superstitious would naturally diminish his own opportunities.
[127] He had succeeded Jung Lu as custodian of the
mausolea.
[128] The Imperial Mausoleum lies about ninety miles to the
east of Peking, covering a vast enclosure of magnificent approach
and decorated with splendid specimens of the best style of
Chinese architecture. It consists of four palaces, rising one behind
the other, and at the back of the fourth and highest stands the
huge mound classically termed the “Jewelled Citadel,” under
which lies the spacious grave chamber.
[129] Vide Biographical Note in the Appendix.
[130] 2nd January, 1909.
[131] Vide the Diary of Ching Shan, page 259.
[132] Grant Richards, 1901.

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PART 1 Introduction to Organizations 001

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Integrative Cases 621

PART 1 Introduction to Organizations 001

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Chapter 3: Fundamentals of Organization How the Structure Works, 123 • Strengths

PART 3 Open System Design Elements 145

PART 4 Internal Design Elements 313

PART 5 Managing Dynamic Processes 441

Case for Analysis: The Burlington Plant 614

Integrative Cases 621

Glossary698 Corporate Name Index 719

My vision for the Thirteenth Edition of Organization Theory and Design is to

Distinguishing Features of the Thirteenth Edition

Opening Examples. Following the Managing by Design questions, each chapter’s

Remember This. At the end of each major section of a chapter is a “Remember

To access these additional course materials and companion resources, please

Instructor’s Manual. The Instructor’s Manual contains chapter overviews,

PowerPoint Lecture Presentation. The PowerPoint Lecture Presentation

David Ackerman Patricia Feltes

Thomas Head Richard Saaverda

Among my professional colleagues, I am grateful to my friends and colleagues at

1 An organization can be understood primarily by understanding the people who

2 The primary role of managers in business organizations is to achieve maximum

3 A CEO’s top priority is to make sure the organization is designed correctly.

1.1 A Look Inside General Electric

1.1a The Jack Welch Era 1981–2001

Changes in Structure. Welch attacked the bureaucratic layers within GE by first

A New Culture. Welch wanted a corporate culture based on direct conversations

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The External Environment. Immelt and GE faced major environmental challenges

Strategy Changes. Immelt shifted GE toward an industrial business focus consis-

Innovation. Under Immelt’s watch, GE developed a new concept called “reverse

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Photo, Ogawa, Tokio.

“The creed of the Boxers is no new thing: in the reign of

“I have never for a moment doubted that you men of Shensi

A little later the Governor referred to that Decree of the Empress

Tuan Fang was a member of the Mission to foreign countries in

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Case for Analysis: The Burlington Plant 614

Glossary698 Corporate Name Index 719