Fundamentals of Management, 8th ed

Chapter 7: Organization Change and Innovation

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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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