Convenience

Changing Organization Structure and Design
Organization change might be focused on any of the basic components of organization
structure or on the organization’s overall design. Thus, the organization might change
the way it designs its jobs or its bases of departmentalization. Likewise, it might change
reporting relationships or the distribution of authority. For example, we noted in
Outmoded production facilities
Excess capacity
Need to cut costs
Reasons for Closing
Possible future needs
Concern about worker welfare
Resistance from unions
Plant
closing
Reasons Against Closing
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F I G U R E 7 . 2
Force-Field Analysis for Plant Closing at General Motors
A force-field analysis can help a manager facilitate change. A manager who is able
to identify forces acting both for and against a change can see where to focus efforts
to remove barriers to change (such as offering training and relocation to displaced
workers). Removing the forces against the change can at least partially overcome
resistance.
Chapter 7:
Organization Change and Innovation
2 0 1
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Chapter 6 the trend toward flatter organizations. Coordination mechanisms and line-
and-staff configurations are also subject to change. On a larger scale, the organization
might change its overall design. For example, a growing business could decide to drop
its functional design and adopt a divisional design. Or it might transform itself into a
matrix. Changes in culture usually involve the structure and design of the organization
as well (recall that we discussed changing culture back in Chapter 2). Finally, the organi-
zation might change any part of its human resource management system, such as its
selection criteria, its performance appraisal methods, or its compensation package.
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