Principles of Management

Chapter 10 ORGANIZATIONAL STRUCTURE AND CHANGE

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Learning Outcomes

After reading this chapter, you should be able to answer

these questions:

1.What are mechanistic versus organic

organizational structures?
2.What are the fundamental dimensions of
change?
3.How do managers deal with change?
 Exhibit 10.2 Formal Organizational Chart

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 Exhibit 10.3 Informal Organizational Chart

(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

 Table 10.1 Elements of Organizational Structure and Their Relationship to Mechanistic
and Organic Forms

Mechanistic Organic
Highly formalized Standardization Low

High/Narrow Specialization Low/Broad

Centralized Centralization Decentralized

Functional Departmentalization Divisional

(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

1. What are mechanistic versus
organic organizational structures?

CONCEPT CHECK
1. What is an organizational structure?
2. What are different types of organizational
structures?
3. What is organizational design?
4. What concepts should guide decisions about how
to design structures?
Max Weber: Bureaucracy

View the video and you will

notice that Weber used the term
particularism that today would
most likely be called favoritism.
Was Weber ahead of his time?
With the emphasis today on fair
employment hiring and
promotion processes that ignore
external factors such as gender,
race, religion or family
connections, it may seem that he
was.
“Max Weber Bureaucracy”, by Organizational Communication
Channel is licensed under CC BY-NC-ND 4.
 Max Weber: Bureaucracy
1. Was Weber ahead of his time?
2. What else about Weber’s contributions to management theory and
practice seem to also be relevant in modern times?
3. What, if anything, might be out-of-date?
 Exhibit 10.5 Organizational Life Cycle

(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

2. What are the fundamental
dimensions of change?

CONCEPT CHECK
1. What is organizational change?
2. What are the fundamental dimensions
of change?
Disruptive Innovation

In Section 10.2, the text mentions the level of change as a measure of the
breadth of the systems that need to be transformed within an organization. No
greater type of change that can impact both organizations and the societies in
which they function would likely be what Harvard professor Clayton
Christensen termed Disruptive Innovation.
Disruptive Innovation

How does Professor Christensen

apply the concept of Disruptive
Innovation and the “job the customer
needs to get done” as the way to
think essentially in reverse as a way
to engineer products and services?
Next, view the interview with
Professor Christensen where he
describes this concept in his own
words to the interviewer.

“Disruptive Innovation Explained”, by Harvard Business Review is

licensed under CC BY-NC-ND 4.
 Disruptive Innovation
1. According to Professor Christensen’s theory, there is a difference
between innovations which could be called merely sustaining and those
which are disruptive. What exactly distinguishes one from the other?
2. What is the “very specific definition” that makes a product disruptive
according to the Professor?
3. What kind of influence did the interviewer claim in the second video that
these theories had on such luminary innovators as Steve Jobs?
4. What else did you learn from these videos?
 Exhibit 10.8 Summary of Kurt Lewin’s Change Model

(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

 Exhibit 10.9 Summary of John Kotter’s Change Model

(Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

 Exhibit 10.10 Kotter’s Model versus Lewin’s Model

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Managing Change

In the Section 10.3 feature box titled

SUSTAINABILITY AND RESPONSIBLE
MANAGEMENT, the subheading asks this
question: Why Is the National Hockey
League Interested in Climate Change, and
Why Did They Hire Kim Davis? As
mentioned in the feature box, the NHL
“signaled a long-overdue shift in thinking
when it named Davis, a black woman, as
executive vice president of social impact,
growth initiatives, and legislative affairs”.
Review the story about the hiring of Kim
Davis and her mission as the NHL, and
then view the video.

“Making Hockey for Everyone: Kim Davis of the NHL”, by

Sustainability and Responsible Management is licensed under
CC BY-NC-ND 4.
Managing Change

Before you make your final determination

about the eventual success of this change
initiative at the NHL, view this video
where you will learn how Renee Hess of
the Black Girl Hockey Club works to
support black women hockey fans around
the NHL. Does the enthusiastic existence
of the Black Girl Hockey Club provide more
evidence that the NHL will be successful
with Hockey Is for Everyone?

“Black Girl Hockey Club fostering fan inclusivity, support in NHL”,

by NHL & NBC Sports is licensed under CC BY-NC-ND 4.

 Managing Change
1. If the NHL is trying to adapt and become more welcoming to those who
feel they don’t belong or haven’t been allowed to belong in the sport, do
you agree that Kim Davis is the perfect person to manage this change?
2. Was hiring someone from the outside, someone free of a hockey culture
the answer for a sport that the feature box claims has become stale by
current social standards?
3. Do you think the “Declaration of Principles” and the slogan Hockey is for
Everyone are effective tactics to facilitate the NHL’s new, more inclusive fan
strategy?
4. What else does Davis say in this interview that convinces you that she will
be successful to manage this change at the NHL?
5. Does the enthusiastic existence of the Black Girl Hockey Club provide more
evidence that the NHL will be successful with Hockey Is for Everyone?
 3. How do managers deal with
change?

CONCEPT CHECK
1. What are organizational development
(OD) and change management?
2. What questions may be used to guide
OD and change management?
3. What are the common models of OD
and change management?
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