Mgt689 Organizational Behavior and Design

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Stevens Institute of Technology

Howe School of Technology Management


Organizational Behavior and Design

Semester: 2012

Day of Week/Time:

Instructor Name & Contact Information:

Pat Holahan, Ph.D.

Babbio 429

Phone: 201.216.8991; Fax:201.216.5385 Email:

Office Hours:
Class Website:


Organization scientists generally think of organizations as being comprised of both a macro perspective (the organization as a whole and its respective divisions and departments) and a micro perspective (the behavior of individuals and groups that comprise the organization). This course covers organizational design and behavior from both a macro and a micro perspective. Individuals do not behave independently of the organizational structure in which they perform. Thus, an understanding of both the macro and micro perspectives and how these two perspectives interrelate are essential for understanding organizations and their effective management.

In this course we cover principles of organization design and its effects on specific behavioral processes. Specific issues and problems which are covered include: the relationship of the organization with the external environment, the influence of the organization's strategies, culture, size, and production technology on the organization's design, and strategies for managing organizational behavior such as teams, conflict, power/politics.

Learning Goals

Upon completion of this course the student will be able to:

1. Describe how contextual factors (e.g., the external environment, business strategy, organizational size, organizational (production) technology, and organizational culture) relate to organizational design choices.

2. Describe how organization design relates to the achievement of organizational goals.

3. Analyze a complex business case, determine the role of organizational behavior and design issues in organizational performance problems, and specify design changes to remedy the core problem(s).

4. Distinguish between and diagnose individual and group processes in organizations

5. Develop and specify recommendations for change and improvement based on the organizational behavior theories we discuss.


Readings, lectures, case analyses/discussions, videotapes, and class exercises will be employed to achieve the above objectives.

Required Text(s)

Text #1: Daft, R. L. (2010). Organization Theory and Design, 10th Edition. Cincinnati, OH: South-Western Publishing Co. ISBN 0-324-59889-0.

Text #2: Robbins, S. & Judge. (2010). Essentials of Organizational Behavior, 10th Edition. Prentice Hall. ISBN 0-13-607761-7.

Required Readings

Harvard Business School Cases:
PLEASE NOTE: HBS case titles are not always unique, order by using the case number.
Case Title Case Number

Merck: Conflict and Change 9-805-079

Technology Transfer At a Defense Contractor 9-489-084

Mount Everest 9-303-061

Supplementary Readings, Exercises, and Assessments:

All other readings, exercises, and assessments are posted to our electronic “Moodle” course site.


Class Participation

To get the most learning from this course, you must actively participate in the classroom experience. Participation first means coming to class. Participation also means actively participating in the classroom experience. Your participation will be graded at the end of the semester.

A midterm and final exam will be given in this course. They will cover the concepts covered up to the point that the exam is given. The exact nature of the exams will be discussed in class.

Team Member Evaluation

Students will be formed into teams early in the semester. You will work in these teams throughout the semester. At the end of the course, you will evaluate your teammate contributions to the team assignments. This evaluation will be factored into the final grade to adjust for any members that do more or less than their share of the work. Of course, you are also encouraged and welcomed to come see the instructor at any point during the course to discuss teamwork issues.

HBS Case Analysis Paper and Presentation

You will work as part of a team to analyze a complex business case, draw conclusions, write a report, and present your recommendations to the class. Your written report/analysis will contain the following six (6) parts:

1. Statement of the Problem
2. Problem Analysis
3. Bulleted List of Root Causes
4. Generation and Evaluation of Alternatives
5. Recommendation
All of the information you need to do the analysis is provided in the case. Superior analyses (grade of A) will demonstrate your ability to use theory to analyze the case and generate theory based solutions to the business/management problems presented in the case.

Your grade in the course will be based on the following:


Grade Percent

Class Participation


Mid-Term Exam


Final Exam


HBS Case Analysis (Team Assignment)


Team Member Evaluation




Ethical Conduct

The following statement is printed in the Stevens Graduate Catalog and applies to all students taking Stevens courses, on and off campus.

“Cheating during in-class tests or take-home examinations or homework is, of course, illegal and immoral. A Graduate Academic Evaluation Board exists to investigate academic improprieties, conduct hearings, and determine any necessary actions. The term ‘academic impropriety’ is meant to include, but is not limited to, cheating on homework, during in-class or take home examinations and plagiarism.“
Consequences of academic impropriety are severe, ranging from receiving an “F” in a course, to a warning from the Dean of the Graduate School, which becomes a part of the permanent student record, to expulsion.
Reference: The Graduate Student Handbook, Academic Year 2003-2004 Stevens

Institute of Technology, page 10.

Consistent with the above statements, all homework exercises, tests and exams that are designated as individual assignments must contain the following signed statement before they can be accepted for grading. ____________________________________________________________________

I pledge on my honor that I have not given or received any unauthorized assistance on this assignment/examination. I further pledge that I have not copied any material from a book, article, the Internet or any other source except where I have expressly cited the source.

Name (Print) ___________________ Signature ________________ Date: _____________

Class Schedule





Reading Assignment



The Organization

Course Introduction & Overview


Overview of Theories of Management

  • Classical Management Theory

  • Scientific Management Theory

  • Human Relations Theory

  • Systems Theory

  • Contingency Theory

· Rdg: Mechanization Takes Command

· Rdg: Nature Intervenes

Class Exercise - Theories of Mgt.


Contingency Theory;
Competitive Business Strategy and Structure

  • Overview of Contingency Theory

  • Dimensions of Organization Design

  • Porter’s Competitive Strategies

  • Miles and Snow Strategy Typology

  • How Competitive Business Strategy Affects Organization Design

·Daft – Chs. 1 & 2

In-class case. Bring text to class


The External Organizational Environment and Structure

·Daft - Ch. 4

Mini Case - IBM (Org'l Envir.)





Reading Assignment



Organizational Technology and Structure;

Organizational Size and Structure

  • Perrow’s Typology of Organizational Technology

  • Core Production Technology and Uncertainty

  • Interdependence and The Technical Core

  • Horizontal Coordination and Integration

  • Organization Size and Uncertainty

· Daft - Ch. 7

· Daft – Ch. 9, pp. 332-352


Organizational Designs

  • Functional Design

  • Divisional Design

  • Matrix Design

  • Horizontal Design

  • Hybrid Design

  • Daft – Ch. 3

  • Daft - Aquarius Ad Agency, pp. 132-134

  • Rdg – A Cheeky Ad Agency

Mini Case – Aquarius Ad Agency. Bring text to class.


Global Designs

  • Multidomestic Strategy

  • Globalization Strategy

  • Designing Structure to Fit Global Strategy

  • Global Product Structure

  • Global Geographic Structure

  • Global Matrix Structure

  • Daft – Ch. 6

  • Rdg – Alex Trotman’s Daring Global Strategy

Exam I



Power, Influence & Politics;

Actual leaders in organizations

  • Sources of Power

  • Influence Tactics

  • Political Tactics

  • Leadership Theories

  • Actual leaders in orgs – CEOs, TMT's, and boards – and how they make decisions

  • Robbins – Chs. 11 & 12

Exercises: Leadership checklist & Least Preferred Coworker assessment (no advance prep needed)





Reading Assignment



Decision Making;

Leadership Ethics

  • Perception, Intuition & Judgment

  • Decision Making in Organizations

  • Common D.M. Biases

  • Ethical Theories

  • Personal Ethics vs. Business Ethics

  • Corporate Social Responsibility

  • Authentic Leadership

  • Rdg - I was greedy too.

  • Merck Case

Merck Case: Team Presentation & Class Discussion



Teams & Group Behavior

  • Importance of Teams

  • Types of Teams, including virtual teams

  • Team Composition

  • Team Member Roles

  • Team Development Stages

  • Robbins – Chs. 8 & 9



  • Types of Conflict

  • Conflict Process

  • Determinants & Outcomes of Conflict

  • Virtuality & Conflict

  • Individual Conflict Management Styles

  • Conflict Management

  • Robbins – Ch. 13

  • Rdg - How management teams can have a good fight.

  • Rdg - Conflict in project teams: Gaining the benefits, avoiding the costs.

Exercise-Take home Conflict Management assessment.





Reading Assignment




  • The communication process

  • Personal Communication Styles

  • Communication channels

  • Verbal/Nonverbal/Written/Virtual communication

  • Virtual communication technologies

Exercise- Take home Johari Window assessment. See WebCT.
Tech Transfer Case: Team Presentation & Class Discussion



Motivation Theory

  • Motivation Process & Theory

  • Maslow

  • Theory X&Y

  • Herzberg 2 Factor

  • McLelland Theory of Needs

  • Goal Setting Theory

  • Reinforcement Theory

  • Job Design Theory

  • Equity Theory

  • Expectancy Theory

  • Robbins – Ch. 5 & 6

Exercise – Tower Building & WPI Questionnaire (no advance prep needed)


Motivation Applications

  • Performance Management Systems

  • Liking rewards with performance

  • MBO

  • Employee Recognition

  • Employee Involvement

  • Job Redesign & Scheduling

  • Rdg – Employee Motivation: A Powerful New Model

  • Rdg – Next Ideas: Rethinking Money and Motivation

  • Mt Everest Case

Mt. Everest Case: Team Presentation & Class Discussion


Exam 2

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