Organization Theory & Design 12e
Richard L. Daft Vanderbilt University
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iii
About the Author
Richard L. Daft, Ph.D., is the Brownlee O. Currey, Jr., Professor of Management in the Owen Graduate School of Management at Vanderbilt University. Professor Daft 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, 2016), The Leader- ship Experience (Cengage/South-Western, 2015), 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 Quar- terly, 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.
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v
Brief Contents
Part 1 Introduction to Organizations 1 1. Organizations and Organization Design 2
Part 2 Organization Purpose and Structural Design 45 2. Strategy, Organization Design, and Effectiveness 46 3. Fundamentals of Organization Structure 86
Part 3 Open System Design Elements 139 4. The External Environment 140 5. Interorganizational Relationships 178 6. Designing Organizations for the International Environment 212
Part 4 Internal Design Elements 257 7. Manufacturing and Service Technologies 258 8. Technology for Control, Social Business, and Big Data 304 9. Organization Size, Life Cycle, and Decline 342
Part 5 Managing Dynamic Processes 383 10. Organizational Culture and Ethical Values 384 11. Innovation and Change 420 12. Decision-Making Processes 466 13. Conflict, Power, and Politics 512
Integrative Cases 553 1.0 W. L. Gore—Culture of Innovation 555 2.0 Rondell Data Corporation 565 3.0 IKEA: Scandinavian Style 572 4.0 Engro Chemical Pakistan Limited—Restructuring the Marketing Division 576 5.0 First Union: An Office Without Walls 588 6.0 Lean Initiatives and Growth at Orlando Metering Company 591 7.0 Sometimes a Simple Change Isn’t So Simple 600 8.0 Costco: Join the Club 605 9.0 The Donor Services Department 608 10.0 Cisco Systems: Evolution of Structure 612 11.0 Hartland Memorial Hospital (A): An Inbox Exercise 616 12.0 Disorganization at Semco: Human Resource Practices as a Strategic Advantage 625
Glossary 635 Name Index 646 Corporate Name Index 657 Subject Index 661
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vii
Contents
Preface xv
Part 1 Introduction to Organizations 1
Chapter 1: Organizations and Organization Design 2 A Look Inside Xerox Corporation 3
What Went Wrong?, 3 • Entering the Digital Era, 4 • The Culture Problem, 5 • Shaking Up a Century-Old Company, 5 • “We No Longer Make Copiers”, 6
Organization Design in Action 6
Topics, 7
Bookmark 1.0: Great by Choice: Uncertainty, Chaos, and Luck—Why Some Thrive Despite Them All 8
Current Challenges, 9 • Purpose of This Chapter, 12
What Is an Organization? 13
Definition, 13 • From Multinationals to Nonprofits, 14 • Importance of Organizations, 15
In PraCtICe: Harley-Davidson 16
Dimensions of Organization Design 17
Structural Dimensions, 18
In PraCtICe: Shizugawa Elementary School Evacuation Center and BP Transocean Deepwater Horizon Oil Rig 20
Contingency Factors, 20
In PraCtICe: Valve Software 21
Performance and Effectiveness Outcomes, 23
The Evolution of Organization Design 24
Historical Perspectives, 25
How Do You FIt tHe DesIgn? Evolution of Style 26
It All Depends: Key Contingencies, 28
The Contrast of Organic and Mechanistic Designs 29
Contemporary Design Ideas: Radical Decentralization 31
In PraCtICe: Morning Star 31
Framework for the Book 32
Levels of Analysis, 32 • Plan of the Book, 33 • Plan of Each Chapter, 35
Design Essentials 35
Chapter 1 workshop: Measuring Dimensions of Organizations 37
Case for analysis: It Isn’t So Simple: Infrastructure Change at Royce Consulting 38
Part 2 Organization Purpose and Structural Design 45
Chapter 2: Strategy, Organization Design, and Effectiveness 46
Purpose of This Chapter, 47
The Role of Strategic Direction in Organization Design 48
Organizational Purpose 51
Strategic Intent, 51
Bookmark 2.0: Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant 53
In PraCtICe: Amazon 54
Operating Goals, 54 • Goal Conflict and the Hybrid Organization, 57
In PraCtICe: Bloomberg LP 57
The Importance of Goals, 58
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viii Contents
Two Frameworks for Selecting Strategy and Design 59
Porter’s Competitive Strategies, 60
How Do You FIt tHe DesIgn? Your Strategy/ Performance Strength 61
In PraCtICe: Allegiant Travel Company 63
Miles and Snow’s Strategy Typology, 63 • How Strategies Affect Organization Design, 65 • Other Contingency Factors Affecting Organization Design, 66
Assessing Organizational Effectiveness 67
Definition, 67 • Who Decides?, 68
Four Effectiveness Approaches 69
Goal Approach, 69 • Resource-Based Approach, 71 • Internal Process Approach, 72
In PraCtICe: BNSF Railway 73
Strategic Constituents Approach, 73
An Integrated Effectiveness Model 75
In PraCtICe: Samsung Group 78
Design Essentials 78
Chapter 2 workshop: Identify Your Goal Preferences 80 Case for analysis: The Venable Museum of Art 80 Case for analysis: Covington Corrugated
Parts & Services 82
Chapter 3: Fundamentals of Organization Structure 86
Purpose of This Chapter, 88
Organization Structure 88
Information-Sharing Perspective on Structure 90
Centralized Versus Decentralized, 90
Bookmark 3.0: The Future of Management 91
In PraCtICe: Toyota 92
Vertical Information Sharing, 93 • Horizontal Information Sharing and Collaboration, 94
How Do You FIt tHe DesIgn?: The Pleasure/Pain of Working on a Team 99
Relational Coordination, 99
In PraCtICe: Southwest Airlines 100
Organization Design Alternatives 101
Required Work Activities, 101 • Reporting Relationships, 102 • Departmental Grouping Options, 102
Functional, Divisional, and Geographic Designs 104
Functional Structure, 104
In PraCtICe: Narayana Hrudayalaya Hospital 105
Functional Structure with Horizontal Linkages, 105 • Divisional Structure, 106
In PraCtICe: Microsoft 109
Geographic Structure, 109
Matrix Structure 111
Conditions for the Matrix, 112 • Strengths and Weaknesses, 113
In PraCtICe: Englander Steel 114
Horizontal Structure 116
Characteristics, 117
In PraCtICe: GE Salisbury 118
Strengths and Weaknesses, 119
Virtual Networks and Outsourcing 120
How the Structure Works, 121
In PraCtICe: Sandy Springs, Georgia 121
Strengths and Weaknesses, 122
Hybrid Structure 124
Applications of Structural Design 126
Structural Alignment, 126 • Symptoms of Structural Deficiency, 127
Design Essentials 128
Chapter 3 workbook: You and Organization Structure 129 Case for analysis: C & C Grocery Stores, Inc. 130 Case for analysis: Aquarius Advertising Agency 133
Part 3 Open System Design Elements 139
Chapter 4: The External Environment 140 Purpose of This Chapter, 141
The Organization’s Environment 142
Task Environment, 142 • General Environment, 144 • International Environment, 145
In PraCtICe: Richard Ginori 146
The Changing Environment 146
Complexity, 147 • Dynamism, 148
In PraCtICe: Fujifilm Holding Corporation 148
Framework, 149
Bookmark 4.0: Confronting Reality: Doing What Matters to Get Things Right 150
Adapting to Complexity and Dynamism 152
Adding Positions and Departments, 152 • Building Relationships, 153 • Differentiation and Integration, 154 • Organic Versus Mechanistic Management Processes, 156
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Contents ix
How Do You FIt tHe DesIgn? Mind and Environment 157
Planning, Forecasting, and Responsiveness, 158
Framework for Adapting to Complexity and Dynamism 159
Dependence on Financial Resources 160
Influencing Financial Resources 161
Establishing Formal Relationships, 161
In PraCtICe: Omnicom and Publicis 162
Influencing Key Sectors, 164
In PraCtICe: Amazon and Walmart 164
In PraCtICe: Huawei Technologies 165
Organization–Environment Integrative Framework 167
Design Essentials 168
Chapter 4 workshop: Organizations You Rely On 169 Case for analysis: CPI Corporation: What Happened? 170 Case for analysis: The Paradoxical Twins: Acme
and Omega Electronics 171
Chapter 5: Interorganizational Relationships 178
Purpose of This Chapter, 180
Organizational Ecosystems 180
Is Competition Dead?, 181
In PraCtICe: Apple and Samsung 183
The Changing Role of Management, 183 • Interorganizational Framework, 185
Resource Dependence 185
Types of Resource-Dependence Relationships, 186 • Power Implications, 188
In PraCtICe: Facebook 188
Collaborative Networks 188
How Do You FIt tHe DesIgn? Personal Networking 189
Why Collaboration?, 189
In PraCtICe: Accelerating Medicines Partnership 191
From Adversaries to Partners, 191
Bookmark 5.0: Managing Strategic Relationships: The Key to Business Success 192
Population Ecology 193
What Hinders Adaptation?, 194
In PraCtICe: Barnes & Noble Versus Amazon 194
Organizational Form and Niche, 195 • Process of Ecological Change, 195 • Strategies for Survival, 196
Institutionalism 197
The Institutional View and Organization Design, 198 • Institutional Similarity, 199
Design Essentials 202
Chapter 5 workshop: The Shamatosi 204 Case for analysis: Why is Cooperation So Hard? 205 Case for analysis: Oxford Plastics Company 206
Chapter 6: Designing Organizations for the International Environment 212
Purpose of This Chapter, 214
Entering the Global Arena 214
Motivations for Global Expansion, 215
Bookmark 6.0: The World Is Flat: A Brief History of the Twenty-First Century 215
In PraCtICe: Amway 218
Stages of International Development, 219
How Do You FIt tHe DesIgn? What Is Your Cultural Intelligence? 221
Global Expansion Through International Alliances and Acquisitions, 222
In PraCtICe: China’s International Expansion 223
The Challenges of Global Design 223
Increased Complexity and Differentiation, 224 • Increased Need for Coordination, 225 • More Difficult Transfer of Knowledge and Innovation, 226
Designing Structure to Fit Global Strategy 228
Strategies for Global Versus Local Opportunities, 228
In PraCtICe: Panasonic 231
International Division, 231 • Global Product Division Structure, 232 • Global Geographic Division Structure, 234
In PraCtICe: Colgate-Palmolive Company 235
Global Matrix Structure, 235
In PraCtICe: ABB Group 237
Additional Global Coordination Mechanisms 238
Global Teams, 238
In PraCtICe: L’Oréal 239
Headquarters Planning, 240 • Expanded Coordination Roles, 240 • Benefits of Coordination, 241
The Transnational Model of Organization 242
Design Essentials 246
Chapter 6 workshop: Made in the U.S.A.? 247 Case for analysis: TopDog Software 248 Case for analysis: Rhodes Indestries 249
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x Contents
Part 4 Internal Design Elements 257
Chapter 7: Manufacturing and Service Technologies 258
Purpose of This Chapter, 261
Core Organization Manufacturing Technology 262
Manufacturing Firms, 262 • Strategy, Technology, and Performance, 265
Contemporary Applications 265
Trends, 266
In PraCtICe: Carnival Cruise Lines 266
Bookmark 7.0: Inviting Disaster: Lessons from the Edge of Technology 267
The Smart Factory, 268 • Lean Manufacturing, 269
In PraCtICe: La-Z-Boy 270
Performance and Structural Implications, 272
Core Organization Service Technology 273
Service Firms, 273
How Do You FIt tHe DesIgn? Manufacturing Versus Service 276
In PraCtICe: Seattle Children’s Hospital 276
Designing the Service Organization, 277
In PraCtICe: Home Depot Inc. 278
Noncore Departmental Technology 279
Variety, 279 • Analyzability, 280 • Framework, 280 • Department Design, 282
In PraCtICe: Memorial Sloan-Kettering Cancer Center 282
Workflow Interdependence Among Departments 284
Types, 285
In PraCtICe: Southwest Airlines 287
Structural Priority, 288 • Structural Implications, 288
In PraCtICe: Athletic Teams 289
Sociotechnical Systems 290
Design Essentials 292
Chapter 7 workshop: Bistro Technology 294 Case for analysis: AV Corporate: Software Tool Project 294
Chapter 8: Technology for Control, Social Business, and Big Data 304
Purpose of This Chapter, 306
Information Technology Evolution 306
The Philosophy and Focus of Control Systems 308
The Changing Philosophy of Control, 308 • Feedback Control Model, 311
How Do You FIt tHe DesIgn? Is Goal-Setting Your Style? 312
Organization Level: The Balanced Scorecard, 313 • Department Level: Behavior Versus Outcome Control, 316
In PraCtICe: University of Tennessee Medical Center 316
Bookmark 6.0: The Checklist Manifesto: How to Get Things Right 318
Facilitating Employee Coordination and Efficiency 318
Knowledge Management, 318 • Social Network Analysis, 320
Adding Strategic Value 322
Social Business, 323
In PraCtICe: General Motors 323
Structural Design for Social Business, 324 • Big Data, 325 • Big Data and Organization Structure, 328
In PraCtICe: Caesars Entertainment 330
Impact on Organization Design 331
Design Essentials 332
Chapter 8 workshop: Balanced Scorecard Exercise 334 Case for analysis: Century Medical 336 Case for analysis: Is Anybody Listening? 337
Chapter 9: Organization Size, Life Cycle, and Decline 342
Purpose of This Chapter, 344
Organization Size: Is Bigger Better? 344
Pressures for Growth, 344
Bookmark 9.0: Small Giants: Companies That Choose to Be Great Instead of Big 345
Dilemmas of Large Size, 346
How Do You FIt tHe DesIgn? What Size Organization for You? 348
In PraCtICe: Dell Inc. 350
Organizational Life Cycle 350
Stages of Life-Cycle Development, 350
In PraCtICe: Google 354
Organizational Characteristics During the Life Cycle, 354
Organizational Size, Bureaucracy, and Control 355
What Is Bureaucracy?, 356
In PraCtICe: United Parcel Service (UPS) 357
Size and Structural Control, 358
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
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Contents xi
Bureaucracy in a Changing World 360
Organizing Temporary Systems, 361
In PraCtICe: Salvation Army 361
Other Approaches to Busting Bureaucracy, 362
Bureaucracy Versus Other Forms of Control 363
Bureaucratic Control, 363
In PraCtICe: East Resources Inc. and Royal Dutch Shell PLC 365
Market Control, 365 • Clan Control, 366
In PraCtICe: Menlo Innovations, FAVI 367
Organizational Decline and Downsizing 368
Definition and Causes, 368
In PraCtICe: Eastman Kodak 369
A Model of Decline Stages, 370 • Downsizing Implementation, 371
Design Essentials 373
Chapter 9 workshop: Classroom Control 375 Case for analysis: Yahoo: “Get to Work!” 375 Case for analysis: Sunflower Incorporated 376
Part 5 Managing Dynamic Processes 383
Chapter 10: Organizational Culture and Ethical Values 384
Purpose of This Chapter, 386
Organizational Culture 386
What Is Culture?, 386 • Emergence and Purpose of Culture, 387
In PraCtICe: Billtrust 388
Interpreting Culture, 389
Organization Design and Culture 393
The Adaptability Culture, 394
In PraCtICe: Zappos 394
The Mission Culture, 395 • The Clan Culture, 395 • The Bureaucratic Culture, 395 • Culture Strength and Organizational Subcultures, 396
How Do You FIt tHe DesIgn? Corporate Culture Preference 397
In PraCtICe: Pitney Bowes Credit Corporation 397
Constructive Culture, Learning, and Performance 398
In PraCtICe: Box 398
Ethical Values and Social Responsibility 400
Sources of Individual Ethical Principles, 400 • Managerial Ethics, 401 • Corporate Social Responsibility, 403
Bookmark 10.0: Conscious Capitalism: Liberating the Heroic Spirit of Business 404
Does It Pay to Be Good?, 405
How Managers Shape Culture and Ethics 405
Values-Based Leadership, 406
In PraCtICe: Costco 407
Formal Structure and Systems, 408
Corporate Culture and Ethics in a Global Environment 410
Design Essentials 411
Chapter 10 workshop: The Power of Ethics 413 Case for analysis: Implementing Change at National
Industrial Products 413 Case for analysis: The Boys Versus Corporate 415
Chapter 11: Innovation and Change 420 Purpose of This Chapter, 422
The Strategic Role of Change 422
Innovate or Fail, 422 • Strategic Types of Innovation and Change, 424
In PraCtICe: Elkay Manufac turing 425
Elements for Successful Change 426
Technology Change 428
How Do You FIt tHe DesIgn? Are You Innovative? 429
The Ambidextrous Approach, 430 • The Bottom-Up Approach, 431
In PraCtICe: Taco Bell and Frito-Lay 431
Techniques for Encouraging Technology Change, 432
Bookmark 11.0: Creativity Inc.: Overcoming the Unseen Forces That Stand in the Way of True Inspiration 434
New Products and Services 435
New Product Success Rate, 436 • Reasons for New Product Success, 437 • Horizontal Coordination Model, 437
In PraCtICe: Corning, Inc. 439
Open Innovation and Crowdsourcing, 439 • Achieving Competitive Advantage: The Need for Speed, 441
Strategy and Structure Change 441
The Dual-Core Approach, 442 • Organization Design for Implementing Management Change, 443
In PraCtICe: GlaxoSmith Kline 444
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
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xii Contents
In PraCtICe: Zappos 445
Culture Change 445
Forces for Culture Change, 446 • Organization Development Culture Change Interventions, 447
In PraCtICe: United Health Group 448
Strategies for Implementing Change 449
Leadership for Change, 449 • Techniques for Implementation, 450 • Techniques for Overcoming Resistance, 451
Design Essentials 453
Chapter 11 workshop: Innovation Climate 454 Case for analysis: Shoe Corporation of Illinois 456 Case for analysis: Southern Discomfort 460
Chapter 12: Decision-Making Processes 466
Purpose of This Chapter, 468
Types of Decisions 468
In PraCtICe: McDonald’s 469
Individual Decision Making 470
Rational Approach, 471
In PraCtICe: Saskatchewan Consulting 473
Bounded Rationality Perspective, 474
How Do You FIt tHe DesIgn? Making Important Decisions 477
Bookmark 12.0: Blink: The Power of Thinking without Thinking 479
Organizational Decision Making 480
Management Science Approach, 480 • Carnegie Model, 482
In PraCtICe: The New York Times 482
Incremental Decision Model, 484
In PraCtICe: Ford Motor Company 485
Organizational Decisions and Change 488
Combining the Incremental and Carnegie Models, 488 • Garbage Can Model, 488
In PraCtICe: Nike 492
Contingency Decision-Making Framework 493
Problem Consensus, 493 • Technical Knowledge about Solutions, 494 • Contingency Framework, 494
Special Decision Circumstances 497
High-Velocity Environments, 497 • Decision Mistakes and Learning, 498 • Cognitive Biases, 499 • Overcoming Cognitive Biases, 500
Design Essentials 501
Chapter 12 workshop: Do Biases Influence Your Decision Making? 503
Case for analysis: Cracking the Whip 504 Case for analysis: Medici Mediterranean Restaurant 505 answers to Questions in “workshop” 506
Chapter 13: Conflict, Power, and Politics 512 Purpose of This Chapter, 514
Interdepartmental Conflict in Organizations 514
Sources of Conflict, 515
In PraCtICe: The U.S. Military 518
Rational Versus Political Model, 518 • Tactics for Enhancing Collaboration, 520
In PraCtICe: The Freaky Friday Management Technique 522
Power and Organizations 523
Individual Versus Organizational Power, 524 • Power Versus Authority, 524 • Vertical Sources of Power, 525 • The Power of Empowerment, 529
In PraCtICe: Morning Star 530
Horizontal Sources of Power, 530
In PraCtICe: International Alliance of Theatrical Stage Employees 533
In PraCtICe: Carilion Health System 535
Political Processes in Organizations 536
Definition, 536 • When to Use Political Activity, 537
Using Soft Power and Politics 538
How Do You FIt tHe DesIgn? Political Skills 539
Tactics for Increasing Power, 540 • Political Tactics for Using Power, 541
In PraCtICe: The Vatican 541
Bookmark 13.0: Influence: Science and Practice 543
In PraCtICe: World Bank 544
Design Essentials 544
Chapter 13 workshop: How Do You Handle Conflict? 546 Case for analysis: The Daily Tribune 547 Case for analysis: The New Haven Initiative 548
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents xiii
Integrative Cases 553
1.0 W. L. Gore—Culture of Innovation 555 2.0 Rondell Data Corporation 565 3.0 IKEA: Scandinavian Style 572 4.0 Engro Chemical Pakistan Limited—Restructuring the
Marketing Division 576 5.0 First Union: An Office Without Walls 588 6.0 Lean Initiatives and Growth at Orlando Metering
Company 591
7.0 Sometimes a Simple Change Isn’t So Simple 600 8.0 Costco: Join the Club 605 9.0 The Donor Services Department 608 10.0 Cisco Systems: Evolution of Structure 612 11.0 Hartland Memorial Hospital (A): An Inbox
Exercise 616 12.0 Disorganization at Semco: Human Resource Practices
as a Strategic Advantage 625
Glossary 635
Name Index 646
Corporate Name Index 657
Subject Index 661
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
xv
Preface
My vision for the Twelfth 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. There is an average of 37 new citations per chapter for new findings and examples that make the Twelfth Edition current and applicable for students. In addition, 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 organizational theory with changing events in the real world to provide the most up-to-date view of organization design available.