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Involves the design and creation of a company with no formally-defined hierarchy. Describes the steps the founder takes to avoid the organizational politics he perceives as crushing the human contributions they were designed to harness. Fifteen years later, the company has achieved widespread recognition in the industry for its innovative designs, its quality products, and its highly ethical standards for business dealings. Describes the organization, the plant, and current concerns.

Describes the Dayton Hudson CEO evaluation process, one of the most intensive in corporate America today. The board of directors' role in the evaluation is examined, as is the question of whether the Dayton Hudson CEO evaluation process should serve as a model for other corporations.

Provides the reader with a basic understanding of organizational structure. The first section outlines some of the key tools and criteria that must be taken into account in designing organizational structures. In the second section, some archetypal forms of organizational structure and their strengths and weaknesses are described. Finally, some emerging trends in how organizations are structured are discussed in the last section of this note, supplemented by a brief summary, in timeline format, of the evolution of organizational structure in theory and practice.

1990 Business Week named Appex Corp. the fastest growing high-technology company in the United States. Appex provided management information systems and intercarrier network services to cellular telephone companies. During its rapid growth, the company went through several structural changes. At first, there was essentially no structure and no control systems. The atmosphere at Appex eventually became chaotic. As the new CEO, Shikhar Ghosh realized that Appex needed some structure and bureaucracy. Once control was established, he reasoned, he could begin to break down the structure. Much of the structural change he implemented had advantages and disadvantages in terms of company culture and productivity. In 1991, Appex was acquired by EDS. Appex's challenge now was to work out its own structure in the context of its role as a division of a large, bureaucratic organization.

In 1970 Xerox had a very progressive affirmative action program yet, once hired, black employees faced serious problems, due both to overt discrimination and to their exclusion from the informal networks of support, information and mentoring that the other salespeople shared. The black employees responded by establishing seven independent support groups around the United States. These black caucuses functioned as both self-help groups to prepare black employees for promotion and as pressure groups to push for policy changes within Xerox. In 1974 Xerox fears the caucuses are forming a national organization. Students must decide how to respond to this potentially dangerous situation.

Describes the compromise worked out between Xerox and the black caucus groups. The implications of this arrangement for Xerox and black employees over the next 16 years is also described.

The Plane Truth, a newspaper started by a group of flight attendants at the struggling Century Airlines, was considered one of the successes of the company's Century Spirit change program. With time, though, the Plane Truth began to run articles critical of management and of other work groups. Worried the paper was sabotaging the Spirit program, the president asked the human resources director to cancel it. Experts on organizational change and motivation analyze the situation.

Transforming Bell Atlantic from a bureaucratic, monopolistic company into an efficient entrepreneurial competitor meant creating a new mind-set and sense of teamwork for each employee. Raymond Smith credits his company's successful change to behavior established through the Bell Atlantic Way -- an improvement program stressing teamwork and accountability.

Explores how the human resource (HR) function at Apple Computer can best support the company's strategy. Provides an overview of the company's history, industry, competitive position, strategy, and organization. Written at a time when the company faces a very compelling threat to their business, and when morale within the company is very low. The purpose is to identify the key organizational issues which the company must address, and to begin to think about how the HR function can help it address them.

Explores how the human resource function at Apple Computer can best support the company's strategy. Analyzes the culture and morale at Apple. Apple has a very unique culture. Moreover, morale within the company is at a low. The culture is powerful in aiding the company in certain ways, and also a substantial hindrance to progress. Designed to study how Apple tries to keep what is good and change what is bad about the culture.

Explores how the human resource (HR) function at Apple Computer can best support the company's strategy. Describes in detail the HR function. The function is considering a reorganization at the end of the case, in response to criticism from non-HR employees and cost-cutting imperatives at Apple.

Provides a follow-up to the (C) case. A new organization chosen for the human resource (HR) function is described. Students must compare the design chosen by Apple's HR managers with the one they chose.

Lays out the business challenges facing First Chicago Corp. in 1986: the banking industry has been deregulated, many corporations are bypassing banks in their search for capital, and foreign competition has increased. Their traditional market--corporate banking--has eroded. The strategy they choose is to strengthen their corporate banking business by adding investment banking to its portfolio of products, and distinguishing itself as a "relationship" bank. They also want to move into the middle and retail markets in order to build a "superregional" bank.

In an effort to grow and contain costs, the airline initiates a series of cultural change programs designed to increase employee participation and decision-making, and accordingly decrease the proportion of supervisors. CTL is the most recent, and by far the most expensive and pervasive of these programs. The case poses the questions of how to evaluate, or quantify the gains from CTL, and how to further the cultural change effort.

To combat poor motivation and lack of commitment, and bridge the gap between performance and potential, the owner of Johnsonville Sausage completely changed his management style and redirected the structure of his company. By giving up his own authority and getting employees to take full responsibility for decisions on production, personnel, quality control, and company expansion, he was able to increase performance standards and market share.

Describes an ill-fated effort to institute a total quality program. Using the vantage point of one of the managers selected to be a quality instructor, the case traces the rise and fall of the quality effort during its very brief existence over the course of six months. Allows students to identify many things that can undermine implementation of change: lack of corporate commitment, overly formalized programs, inflated expectations, lack of initial successes, etc.

Merck & Co., Inc., a major pharmaceutical company, is in the process of reviewing and evaluating its personnel policies and practices. Employee interviews revealed that rewards for excellent performance were not adequate: outstanding performers received salary increases that were, in many cases, only marginally better than those given to average performers. In many cases, outstanding performance was not even clearly identified. The objective is to have students wrestle with a common malady of performance appraisal systems: the tendency of managers to assign uniform ratings to employees regardless of performance. Alternative appraisal systems should be suggested and discussed.

In late 1986, Merck revised its performance review and pay practices. The most important change was a shift from an absolute rating system to a forced-distribution system in which managers are forced to adhere to a given distribution of performance ratings. Other major revisions included revised rating categories, revised performance categories, and a shift in the timing of performance evaluations. A discretionary award program was also introduced. The objective is to have students discuss the costs and benefits of the revised performance plan, paying particular attention to the relative performance evaluation aspects of the new plan. Is it better than the plan it replaced? Is pay more closely related to performance under the new plan?

Discusses the 1989 modified performance appraisal program by adding performance gradations and allowing for differences in employee rating distributions depending on the division performance for the year. The objective is to have students discuss the revisions in the plan, focusing on the effects of forced-distribution ranking systems with flexible targets.

Levi Strauss & Co. chairman and CEO Robert Haas says that, because new economic realities place more complex demands on employees, a company's values are now more important than ever before. At Levi, Haas is using the company's values (codified in the Levi Strauss Aspirations Statement) to reinvent occupational roles and responsibilities, performance evaluations, employee training, work organization, and business decisions.