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ORGANIZATION DEVELOPMENT DEPARTMENTS IN
SELECTED AMERICAN FIRMS:
AN EXPLORATORY BEHAVIORAL ANALYSIS

ITHESIS éoa THE DEGREE OF PM).
MICHIGAN STATE UNIVERSITY
William Frank GIuock
1966

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ABSTRACT

ORGANIZATION DEVELOPMENT DEPARTMENTS
IN SELECTED AMERICAN FIRMS: AN
EXPLORATORY BEHAVIORAL ANALYSIS

By William Frank Glueck

This thesis presents the findings of an investigation
of some behavioral characteristics of departments of organi-
zation development in seven large American firms. Firms have
utilized these departments as an agency to influence their
organization structure and work environment.

The firms studied were representative of large and
established industries and were chosen because peer direc-
tors of organization development indicated that these had ef-
fective departments. The firms were visited and the depart-
ments, their superiors, and clients were interviewed using
three preplanned interview schedules. The responses were
confirmed by: examination of the responses for consistency;
examination of printed sources (such as Annual Reports, Board
of Directors Meeting Notes, Policy Manuals, and published
sources); peer confirmations; and friendly informants within

the firms.

William Frank Glueck

The research was guided by the following hypotheses:

Hypothesis I:

Organization development departments serve their firms
in one of three missions: grand strategy, strategy, and
tactics. Given the mission, one can predict with a high
degree of confidence, the activity, interaction, influ-
ence, and accomplishment patterns the departments will

pursue.

Corrollaries I through IV specified the types of acti-
vities performed in each mission, the interactions in each
mission, the influence exerted by each mission, and the types

of accomplishments achieved by each.

Hypothesis II:

Organization development departments will be more
effective in solution of organization problems, the more
closely the department approximates the characteristics

of a grand strategy mission

Findings 9§_the Thesis

The problems the departments were concerned with most
frequently were: adaptation of the organization to a changing

environment; management of internal conflict; control of

William Frank Glueck

organization resources; fusion of individual and corporate
goals; and maintenance of corporate culture in times of change.

The departments were classified into three groups
based on their statements of mission or objectives and focus
of attention. The first group (grand strategy) focused on
the problems of the total corporation and attempted to solve
the problems by changing the organization structure (struc-
tural approach); the attitudes, opinions, and.work approaches
of the people (human approach), and the decision-making
ability and information flow available to the people (tech-
nological approach). The second group (strategy) utilized
the structural approach at the corporate level. The third
group utilized the structural approach at the unit level of
the firm.

Many activities were performed, but those most em-
phasized included: preparing organization studies and audits;
reviewing organization changes; training for group develop-
ment, interpersonal relations and organization goal setting;
analyzing objectives of corporate divisions; developing cor-
porate organization and policy manuals; preparing policies
for executive career development; and developing the long-

range organization plan.

William Frank Glueck

The three missions led to different interaction
patterns. Generally speaking, the closer the department was
to the objectives of the grand strategy mission, the more
likely was the interaction to be more frequent with top man-
agement. They would also formally report to Presidents and
Executive Vice Presidents. Tactical directors were likely
to report to Personnel Managers.

The more closely a department approximated the grand
strategy mission, the more influential the departments were
as measured by the number and types of policies the department
helped change or implement.

The grand strategy mission's accomplishments were
measurable qualitatively, the tactical mission's quantitively.

The findings of the thesis modify the generally held
opinion of the literature and business that the departments
are ineffective. The thesis shows that by utilization of the
grand strategy mission in an organization development de-
partment, firms can more effectively change their organiza—
tion structure and work environment. By maintaining a staff
agency serving as an internal management consultant, it can
draw upon the services of those who have experience in organi-
zation change and knowledge oftheir firm and industry. It also
assures continuity of advice and counsel for top management on

these matters.

William Frank Glueck

The thesis concludes with some future hypotheses and

the implications of the research to organizations theory.

ORGANIZATION DEVELOPMENT DEPARTMENTS
IN SELECTED AMERICAN FIRMS: AN

EXPLORATORY BEHAVIORAL ANALYSIS

by

William Frank Glueck

A THESIS

Submitted to
Michigan State University
in partial fulfillment of the requirements
for the degree of

DOCTOR OF PHILOSOPHY

Department of Management

1966

(5' Copyright by
William Frank Glueck

1967

ACKNOWLEDGMENTS

At this time, the author wishes to thank those who
helped him complete this thesis and the doctoral program at
Michigan State University.

First, Professor Dalton E. McFarland served as
Chairman of the Guidance Committee for the thesis. The au-
thor appreciates his guidance and kindness. Professors R.
Winston Oberg and Joseph Roberts, as members of the Guidance
Committee, offered many helpful suggestions and encouragement.

Second, the author wishes to acknowledge the aid of
Dean Milton B. Dickerson and Dean Alfred E. Seelye. While
serving them in the position of Assistant to the Dean of
Graduate Programs, the author was given a schedule flexible
enough to allow expeditious completion of the thesis.

Third, the author wishes to thank others who showed
interest in the author's progress at Michigan State. These
are: Professors Stanley Bryan, Richard Gonzales, Claude
”McMillan, and Harold Wein of the Department of Management;
Paul Smith and Leo Erickson of the Department of Marketing;

and Robert Anderson, Department of Sociology.

Fourth, the author is deeply grateful to the executives
of the firms studied in this thesis for their cooperation.

Finally, the author thanks his wife, Nancy Conneighton
Glueck, for the support she so willingly gives all his

endeavors.

TABLE OF CONTENTS

LIST OF TABLES . . . . . . . . . . . . . . . . .

LIST OF ILLUSTRATIONS . . . . . . . . . . . . .
Chapter
I. INTRODUCTION . . . . . . . . . . . . . . .
II. THE MISSIONS OF DEPARTMENTS OF ORGANIZATION
DEVELOPMENI‘ I O O O O O O 0 O O O I O 0
III. THE ACTIVITIES PERFORMED BY DEPARTMENTS OF
ORGANIZATION DEVELOPMENT . . . . . . . .
IV. INTERACTIONS OF DIRECTORS AND MEMBERS OF
DEPARTMENTS OF ORGANIZATION DEVELOPMENT
V. THE INFLUENCE EXERTED BY DEPARTMENTS OF
ORGANIZATION DEVELOPMENT . . . . . . . .
VI. THE ACCOMPLISHMENTS OF DEPARTMENTS OF

ORGANIZATION DEVELOPMENT . . . . . . .

VII.) CONCLUSIONS AND IMPLICATIONS . . . . . .

APPENDIXES

A.
B.
C.

INTERVIEWS WITH THE CONSULTANTS . . . . .
INTERVIEW SCHEDULES USED IN THE THESIS . .
ACTIVITIES PERFORMED BY THE DEPARTMENT . .

BIBLIOGRAPHY . . . . . . . . . . . . . . . . . .

Page

38

81

114

145

206
230
258
265
274

278

LIST OF TABLES

Table Page

I. Summary of Interaction Patterns: Directors
of the Department . . . . . . . . . . . . . . . 141

II. Summary of Interaction Patterns: Members
of the Departments . . . . . . . . . . . . . . 142

vi

LIST OF ILLUSTRATIONS

Figure Page

1. Reporting Relationship of the Department
at Remco . . . . . . . . . . . . . . . . . . . 117

2. Reporting Relationship of the Department
at Assembler . . . . . . . . . . . . . . . . . 121

3. Reporting Relationship of the Department
at Coman . . . . . . . . . . . . . . . . . . . 124

4. Reporting Relationship of the Department
at Extram . . . . . . . . . . . . . . . . . . 126

5. Reporting Relationship of the Department
at Manfex . . . . . . . . . . . . . . . . . . 129

6. Reporting Relationship of the Department
at Outlet . . . . . . . . . . . . . . . . . . 133

7. Reporting Relationship of the Department
at Tractem . . . . . . . . . . . . . . . . . . 136

vii

CHAPTER I

INTRODUCTION

This thesis is an analysis of selected functions and
processes of seven departments of organization development
serving large American firms. These departments are respon-
sible for analyzing and improving the organization structure
and work environment of their firms.

Chapter I discusses the background of the departments
and the hypotheses and research methods used to study them.

It will also define the terms used in the thesis.

The Evolution 9; Organization Departments
Prior to the middle of the nineteenth century, the
American business community was composed primarily of small
firms. Then, the legal code was modified and corporations
came into existence.1 The corporate form of organization

enabled the business firm to grow in size.

 

1For an analysis of this evolution, see C. Wright
Mills, White Collar (New York: Oxford University Press, 1956).

Adolf Berle, Jr., and G. C. Means, The Modern Corpora-
tion and Private Property (New York: Commerce Clearing House,

Since that time, our business society has experienced
an increase in the rate of Change. As firms grew in size and
complexity, the firms' managers experienced problems in or-
ganizing them. These problems can take many forms, only a
few of which can be Cited here. If a manager restructured
his division, he might inadvertently hinder the progress of
another.2 Or, the environment might call for a change of
structure. But the division might not adapt.3 There also
exists the possibility of overlap of functions and responsi-
bilities between units of the firm. This can lead to con-

flict.4 There may also be a lack of fusion between individual

 

InC., 1932); Adolf Berle, Jr., 20th Century_Capitali§§ Revolu-
tion (New York: Harcourt Brace and Company, 1954); Adolf
Berle, Jr., Power Without Property (New York: Harcourt Brace
and Company, 1959).

 

2See Harold Leavitt, Managerial Psychology (2d ed.
rev.; Chicago: University of Chicago Press, 1965), 20.
3See John Gardner, "How to Prevent Organization Dry
Rot," Harper‘s Magazine, October, 1965.

Robert Merton, "Bureaucratic Structure and Personal-
ity,” Journal 9: Social Forges (May, 1940), p. 97.

Robert Dubin, "Stability of Human Organizations," in
Mason Haire (Ed.) Modern Organizations (New'York: John Wiley
& Sons, 1961), p. 218.

4See James March and Herbert Simon, Organizations
(New York: John Wiley & Sons, 1958), pp. 182-83.

and unit goals after a reorganization.5 All of these and
many other problems of the organization process can affect

the success of the firm. As Peter Drucker says:

Productivity is vitally affected by the organi-
zation structure and by the balance between the various
activities within the business. If for lack of clear
organization, managers waste their time trying to find
out what they are supposed to do rather than doing it,
the company's scarcest resource is being wasted.6

Later Drucker says:

Organization is not an end in itself but a means to
the end of business performance and business results.
Organization structure is an indispensable means, and
the wrong structure will seriously impair business
performance and may even destroy it. . . ' Organiza-
tion must be designed so as to make possible the at-
tainment of the objectives of the business for five
to fifteen years hence.

Top management formerly expected the manager of a
division to deal with his own problems of organization. But
as the firms grew in size and complexity, corporate leaders

began to cope with these problems at the corporate level.

 

5See Chris Argyris, Integrating the Individual and
the Organization (New York: John Wiley and Sons, 1964).

6Peter Drucker, The Pragtice 9; Management (New York:
Harper and Brothers, 1954), p. 45.

Ibid.

Usually, ad hoc methods were tried. Chandler describes the
use of ad hoc methods such as committees to solve these
problems.8 The literature contains many reports of ad hoc

. . . 9
reorganizations by use of committees or management consultants.

 

gAlfred Chandler, Jr., Strategy and Structure (Cam-
bridge: Massachusetts Institute of Technology Press, 1962).

9A few examples are: "U. S. Steel Undergoes Sweeping
Reorganization,” Business Week, September 21, 1963, p. 29.

"Philco Gets the T-Bird Look--A Number of Organiza-
tion Jolts," Business Week, August 12, 1963, p. 45.

"When Managerial Styles Clash--Giant Merged Canadian
Forest Products Company Found Complete Reorganization to be
The Only Answer," Illustrated Business World, November 30,
1963, p. 65.

”Baking an Assortment in One Cake-~United Biscuit's
Hekman," Illugtrated Business World, November 30, 1963, p. 45.

"New Organization Plan Fills Manufacturing Three Way
Stretch--Westinghouse," Factory, September, 1960, p. 86.

"Hotpoint on the Hotseat," Tide, February 28, 1958,
p. 90.

, "How to Get More From Creative People with Better
Organization--Raytheon," Management Methods, February, 1958,
p. 20.

"How TRW Organizes," Business Week, November 29, 1958,

 

p. 52.

"Worthington's Reorganization," Printers Ink,
October 3, 1958, p. 3, and October 10, 1958, p. 45.

Some managers felt that problems of organization were
as continuous and important as other functional problems. If
the corporation had staff advice on legal, economic, and
other problems, it could also receive advice from a depart-
ment of organization on problems of organization structure
and the work environment. When these staff departments were
created, they were called "departments of organization,"
"departments of organization planning," and "departments of
organization development." "Organization developmenfl'seems
to be the predominant title at present.

The literature contains little information about
these departments, but what has been published can be placed
into three categories: works which advocate the creation of
the departments; works which describe the processes of the
departments; and works which evaluate their usefulness.

Prior to discussing the first category, it might be
useful to discuss the history of the department's origin. One
source gives the following history of the development of the
departments:

World War II brought with it a shortage of man—
power, so that there developed an interest in ration-
alizing the organizatiGI. The government required
manning tables and job descriptions to prevent the

hoarding of men and firms followed these procedures.
After the war, the shortage in non-blue collar personnel

continued, for the job mix had changed and more
sophisticated long run planning methods were used.

A rash of executive development programs were evi-
denced in the 50's and 60's because of the supply
[Shortage of manpower]. Planning for management per-
sonnel originally took the form of simple job evalua-
tion with boxes and charts but this soon led to an
expansion of staff agencies devoted to this problem
under such designations as organization planning, or-
ganization development or executive development.
These units were organizationally separate from tradi-
tional training programsin personnel departments be-
cause they called for the skills of organization
analysis rather than mere job technician.

In the first category, a number of articles and books
appeared shortly after World War II which argued that mana-
gers needed staff assistance to help solve problems of the or-
ganization process. Several examples will be given. For

example, Alvin Brown in 1949 said:

I am afraid the improvement of organization rests
on dead center. Neglected as a function by industrial
enterprise, literature and the schools ignore it as a
subject. Ignored as a subject by literature and the
schools, industrial enterprise neglects it as a
function . . .

One who is persuaded of the importance of organi-
zation can onLy hope that somewhere, somehow, this
deadlock will be broken. His most reasonable hope
ought to rest upon the students in business schools, for
they are the industrial managers of tomorrow; Were they

aware of organization as an industrial factor, one could

hope for the begg. (Emphasis mine)

 

 

10John Pfiffner and Martin Fels, The Supervision g;
Personnel (Englewood Cliffs: Prentice-Hall, 1965), 10.

My hope, in other words, is to see more written
about organization as such. My hope is to see an end
to the loose use of the name and the loose concept of
the subject. My hope is to see someone fill that
grievous gap in the encyclopedia—-and, for that matter,
to fill the management gap as well. My hope is to see
schools teach organization--as such. When these things
come, we may reasonably hope that industrial enterprise
will see organization gsia function. (Emphasis mine)

When these things do come, industrial enterprise
will be the better for them.11

Another example also specified the duties the depart-
ments should perform. In the 1951 revision of their 1941 book,
Holden, Fish, and Smith argued that firms needed separate de-
partments of organization planning. As these authors state

the case:

Best practice provides for comprehensive, long
range organization planning, rationalization of the
structure as a whole, proper design and clarification
of each part, competent review of proposed changes,
and periodic checks of actual organization practice.
This is the logical province of a competent staff
department specializing in organization problems,
working through the medium of a well designed organi-
zation manual.

 

11
Alvin Brown, "Organization as a Separate Branch of

Management," Annual Progeedings.pf the Academy pf Management
(December 30, 1949).

1 .
2Paul Holden, Lounsberry Fish, and H. L. Smith, 2gp

Management Organization and Control (New'York: McGrawkHill,
1951), pp. 12-13.

The authors specified the activities and

responsibilities they felt this department should perform.

This department's primary responsibilities logi-
cally are: to determine needs, formulate plans, and
secure acceptance, cooperation, and support to the ends
of: (l) the best possible organization to meet the
goals; (2) appropriate functions, objectives, and re-
lationships and limits of authority clarified and de-
fined for levels, departments and jobs; (3) size of
manpower kept to a minimum to handle the work. Speci-
fic activities should include: (1) to develop an ideal
plan of organization to work towards as opportunities
arise; (2) to develop and maintain organization manuals
and clarify and define approved plans of organization by
means of charts, job specifications, etc.; (3) initiating
and reviewing proposed Changes in the organization;

(4) periodic reviews to see if practice fits the plans
and to amend the plans as needed; (5) to survey for es-
sential work, manpower, and organizational requirements;
(6) to control payroll and manpower expenses; (7) a voice
in capital expenditures, operating expenditures, wages
and salaries, executive appointments, and product line
additions,for these are inseparable parts of organiza-
tion planning involving allocation of functions, assign—
ment of responsibilities and delegation of authority;

(8) it is the logical unit to serve as analyst and fact
finder for wage and salary administration to include:

(a) appraise relative job values, (b) search for outside
wage and salary levels (c) recommend salaries, (d) re-
view proposed changes.1

In 1952, Ernest Dale published a book on the organi-
zation process. Dale discussed the research for this book
with many of the directors of departments of organization

development of the period. By drawing attention to the

 

13
Holden, Fish, and Smith, pp. Cit.

importance of the organization process and suggesting the
possibility of the use of staff assistance for this function,
this book apparently influenced companies to create organiza-
tion departments.14

The American Management Association and the National

Industrial Conference Board have published many articles and

1
books advocating the creation of these departments.

 

14Ernest Dale, Planning and Developing the gpmpany
Organizatipn Strugture (New York: American Management
Association, 1952).

15See for example: Stewart Thompson, How Companies
Plan, "AMA Research Study No. 54," (New York: American.Man-
agement Association, 1962).

 

K. K. White, Understanding the Company Organization
Chart, "AMA Research Study," (New York: American Management
1963).

Geneva Seybold, Organizatign Charts, "Studies in Per-
sonnel PoliCy No. 139," (New York: National Industrial Con-
ference Board, 1955).

Louis A l len , 1192201139 Staff and Line. 39193.1..Qnshies,
"Studies in Personnel Policy No. 153," (New York: National
Industrial Conference Board, 1956).

Geneva Seybold, Preparing the Company Organization
Manual, "Studies in Personnel Policy No. 157,“ (New'York:
National Industrial Conference Board, 1957).

Louis Allen, Charting the Company Organization Struc-
ture, "Studies in Personnel Policy No. 168," (New York:

National Industrial Conference Board, 1958).

 

10

Since then, literature read by the businessman and
the business professor has frequently suggested the creation
of a staff department to aid the manager in the solution of
his organization problems. One example appeared recently
from the pen of the Secretary of Health, Education,and Welfare

who recommended:

. . . built in provisions for self criticism; the pro-
vision for continual fluidity in its internal structure,
some means of combating the process by which men become
prisoners of their own procedures, and some means to
combat vested interests that grow in institutions.16

After stating that frequent changes in tasks and
structural arrangements may be welcomed by many employees in
that they make the job situation more challenging and inter-

esting, Peter Blau makes the point that:

 

Harold Stieglitz, Corporate Organization Structure,
"Studies in Personnel Policy No. 183," (New York: National
Industrial Conference Board, 1960).

Harold Stieglitz, "Developing Patterns in Organiza~
tion Structures," Management Re ord, (January 1961), pp. 2-7.

Harold Stieglitz and Allen Janger, Tpp.Management
Organization 1p Divisionalized Compgnies," Personnel Policies

No. 195," (New”York: National Industrial Conference Board,
1965).

 

1
6Gardner,lgp. cit.

11

For new ideas to find expression in an
institutionalized change, they must first be bur-
eaucratically implemented. These changes do not
arise out of the current situation.17

Finally Robert Kahn and his co-authors discuss the
built-in inertia of bureaucracies such as large business or-
ganizations. Tharpoint out that some of them use such meas-
ures as informal organizations, linkage positions to the
changing external environment, and innoVation roles to adapt.

Regarding the latter, the authors say:

These roles demand innovative solutions to non-
routine problems. Such roles complement the more
routinely rules—oriented roles of the rest of an or-
ganization and increase the adaptive abilities of the
organization as a whole. In a sense, the innovative
roles represent patterned organizational deviance. It
is as if the bureaucracy, recognizing the dangers of
its rigidity, attempted to build into itself capacity
for change, but to do so in a way wholly consistent
with bureaucratic structure and organization. What
way could be more compatible than institutionalizing
and assigning to certain organization positions the
functions of being flexible, sensing changes in the
environment, and initiating appropriate responses in
the organization?18

The second category of the literature consists of

that which describes what the departments actually did.

 

1
7Peter Blau, Bureaucragy ig,MQdern Sogiety (New York:

Random House, 1956), p. 89.

1
8Robert Kahn, g3 g1., Organization Stress: Studies

.ip Rgle gpnfligt and.Ambiguity (New'York: John Wiley & Sons,
1964), p. 126.

12

Holden, Fish, and Smith described the departmental functions

as follows:

The agency assists top executives in developing
and maintaining plans of organization which will best
facilitate the management and control of the enterprise.
These agencies are headed by a manager responsible to
the president and supported by from one to twelve
specialists with wide experience and familiarity with
different major functions or fields.19

In 1951, Charles R. Hook, Jr., then the Vice President
of Industrial Relations of the C. and 0. Railroad, described
the reorganization of his department. Mr. Hook assigned the
previously separated functions of training, wage and salary
administration, and organization analysis to staff agents
called organization planners. The objectives sought by Hook

were stated as follows:

What we are seeking is not uniformity of the formal
organization and consistency of an approach, but the
harmonious cooperatioaoof people and the release of
initiative and ideas.

Hook saw several reasons for the failure of organiza-
tion planning departments at that time: (1) lack of support

by top management; (2) lack of cooperation by department heads

 

19Holden, Fish, and Smith, pp. cit., p. 49.

20Charles Hook, Jr., Organization Planning: Its
Challenges and Limitations, "Personnel Series No. 141," (New
York: American Management Association, 1951), p. 15.

13

(they felt organization people were top management spies);
(3) over-emphasis on Th; glgp (a mechanistic fallacy based on
belief in scientific laws of organization); (4) too much re-
liance on the planner to solve the organization problems him-
self, rather than in cooperation with the line executive.

As Hook says:

Organization planning is a continuous process and
too often fails because it is expected to perform mir-
acles after one revision of the structure. . . .21

 

Hook's recommendations, based on experience with the
function, were as follows: (1) focus organization planning
on concrete economic and human problems of a particular busi—
ness. This planning Cannot be completed once and for all, for
all businesses differ and change; (2) the process of organiza-
tion planning is critical. What formal organization is cre—
ated at the time is not. Resistance and fear must be con-
verted to support and understanding so that it can release
the initiative of the people in the organization. (3) An
organization is people, not a collection of functions. Too
often organization planning is done as if the planners are
building a new organization. Generally speaking, organiza-

tions need modification of the present structure. (4) People

 

21Hook,pp. cit., pp. 17-21.

14

are more important than plans in this process. Organization
planning has the task of finding the menito help key manage-
ment executives get the job done. Ofttimes, the most impor-
tant outcome of organization planning is to give a really
good man a chance to get to work. The structural prOblems
and the problem of people who make up the organization cannot
be divorced.2

When Carlos Efferson was chosen to create a department
of organization development at Kaiser Aluminum, he made a
series of visits to the departments in existence at that time
(1957). His conclusions were: (1) The use of the departments
was new and growing; (2) the functionalization of organization

was in the formative stage; and (3) the activities performed

varied tremendously. Efferson says:

As a national pattern, organization planning seems
literally to be whatever you call it, and an organiza-
tion planning man is whomever the firm chooses for the
job--his previous experience is typically unrelated to
organization planning. Finally, organization planning 23
seems to consist of whatever these people decide to do.

No other published works could be found that described

the functions and processes of these departments. But in a

 

22Hook,_o_.p. cit., pp. 17-21.

3Carlos Efferson, "Organization Planning for Management
Growth," Management Regord (April 1958), p. 134.

15

letter to the author, Dr. Frank Sherwood had this prediction

to make about the future of the departments:

In the future it seems to me that the organiza-
tion planner is going to face some real challenges as
to his role. This will be particularly true as organi-
zations become more "temporary," that is, as they in-
creasingly combine specializations for specific problem
solving tasks. The continual shifting of the ability
of organization planners to help people to adjust
quickly to new sets of task Circumstances will be vital.
This is not to say that formalization goes out the win-
dow; My impression is that the need will be greater in
the future. In work in an R and D lab, I find the exe-
cutive greatly over-worked, in part because jurisdic-
tional boundaries are so hard to establish. If there
were more formalization, there would be less need for
his personal intervention. How to get constructive for-
malization without handcuffing the highly dynamic
organization is a very big problem.

Evidence exists to show that Efferson's statements
about growth in use of the departments is correct. The Holden,
Fish and Smith survey found four departments in 1951. By 1962,
Professor Joseph Bailey reported a survey of seven hundred fifty
firms. He found that sixty-one firms had such departments;
ninety-eight firms assigned organization problems to existing
departments (especially Personnel or Corporate Planning); and

ninety firms assigned organization problems to a specific

 

4Personal letter from Dr. Frank Sherwood, Professor
and Dean of the School of Public Administration, University of
Southern California, November 5, 1965.

16

individual (especially the President, or Vice President-
Administration or Corporate Planning).

The research for this thesis found seventy-five such
departments. Sixty-five of their directors belong to three
associations: The Organization Development Council, The Coun-
cil on Organization Planning, and the West Coast Organization

gr.) ..
Planning Roundtablef' The growth in this staff function seems
to parallel the growth in the use of corporate staffs in
industry.

The final category of the literature was that concern-
ing evaluation of the work of the departments. Most of those
who expressed opinions were critical of the work performed.

But in no case were these statements supported by empirical

evidence. Typical of the comments were the following:

 

2
5Joseph Bailey, "Organization Planning: Whose Re-

sponsibility?,” qurnal pr the Academy pr_Management, VII
(June, 1964), p. 98.

26See for example:

Reinhard Bendix, Work and Authority in Industry (New
York: John Wiley & Sons, 1956), Part III.

Ernest Dale and Lyndall Urwick, Staff ;_ Qrganizatipn
(New York: McGraw~Hill, 1960).

 

Douglas McGregor, "The Staff Function in Human Rela-
tions," Journal _o_f_ Social Issues, IVQSB, (1948) .

Robert Sampson, The Staff Role rp Management (New
York: Harper and Brothers, 1955).

17

Organizations can build internal eyes on themselves
. . . in several ways. A department of organization
(a relatively rare phenomenon today) can serve such a
purpose. It can search continually for the problems
the mother structure is creating--for gaps in authority
or for overlapping authority. It can watch for red
flags from departments that are getting excessively
squeezed by the organization structure. It can look
for places where committees can operate better than in-
dividuals and individual better than committees. It can
feed back to the brains of the organization some infor-
mation about the effects of the organization's own behav-
ior. Unfortunately many departments of organization
don't do these jobs. They draw charts instead.

In the revised edition of his book in 1964, Professor
Leavitt does not mention the departments but does evidence

greater interest in the problems of organization structure:

American organizations have lately shown much more
interest in prdblems of communication and coordination
and much more concern about redefining appropriate work
flows. We have gotten more interested in who can talk
to whom in organizations because as organizations have
grown larger,the losses from communication failures
have become increasingly apparent . . .

The great early emphasis of structural people on
authority led us for a while toward rejecting the whole
structural approach. We tended, as we so often do, to
want to throw out the baby with the bath water. Re-
cently, we have begun to come back to structural ques-
tions from very different angles. We have come back to
structure largely because we have been forced to--
because it became so patently obvious that structure
is an organization dimension (1) that we can manipulate;
(2) that has direct effects on problem solving.

 

27Harold Leavitt, Managerial Psychology (Chicago:
University of Chicago Press, 1958), pp. 281-82.

18

If we decentralize, things happen. Maybe not all
the things we wanted to have happen, but things happen.
If we change the definition of roles of members of our
organization, things happen. If we change communica-
tion lines by removing telephones, or separating people,
or making some people inaccessible to others, things
happen.

All of those kinds of changes are fairly easy for
managers to carry out. So the structural dimension be-
came doubly important--important because they constrain

and thereby influence behavior--important because they
are readily manipulatible.

Mason Haire has said that organization development
directors presumably try to consider the best future or-
ganizations for their firm. But he asked the question: how
do they recognize one? To make a Choice among alternatives,
one must first know the Objectives the structure is designed
to attain and how specific aspects of the structure will at—
tain them. The reader tends to conclude that Professor Haire
sees the position in organization development as difficult
and perhaps impossible.29

When consultants were asked their opinion of the ef-

fectiveness of the departments, they agreed with these

evaluations. They felt that these departments and their

 

28Harold Leavitt, Managerial Psychplogz (ed Gd- rev.;),

p. 387.

29Mason Haire, Qrganizaripn Theory In Industrial
Practice (New York: John Wiley & Sons, 1962).

19

members were not concerned with the vital processes of
organization, and were indeed performing mechanical tasks
such as drawing Charts as Leavitt' indicated. They made lit-
tle contribution to the improvement of the organization process
of the firm as a whole in their opinion.3

It can be concluded from this review of the literature
that there are many who advocate the creation of the depart-
ments; several describe a few of the departmental processes,
and some criticize the department's usefulness without Citing
empirical support. This thesis will analyze selected proces-
ses of these departments and support the analysis with
empirical data.

The next section of this chapter will present the

hypotheses utilized in the research.

Hypotheses

This thesis utilized two major hypotheses. The first

has four corollaries.

Hypptheses Iyg

1 ol’

Organization development departments serve their firms

in one of three missions: grand strategy, strategy, tactics.

 

30See Appendix A.

’\

Q

htn his missi;
degree of confid

and accomplishre

The miss
spa-ext will affE
the objectives st
grand Strategy.
:clogical, and 'r.
If the mission is
Structural activ;
513.1 is tactical.

:C'lvines for s-

 

20

With this mission defined, one can predict, with a high
degree of confidence, the activity, interaction, influence,

and accomplishment patterns the department will puruse.

Corollary I

The mission of the department of organization devel-
opment will affect the activities it performs to accomplish
the objectives set forth in the mission. If the mission is
grand strategy, the department will perform structural, tech-
nological, and human activities for the total corporation.

If the mission is strategic, the department will perform
structural activities for the total corporation. If the mis-
sion is tactical, the department will perform structural

activities for specific units of the corporation.

Corollary II

The mission of the department of organization devel-
opment will affect the interactions of its director and mem~
bers with others in the corporation. In a grand strategy
udssion, the frequency of interaction with executives of vari-
ous levels is: top management (high), middle management (mod-
erate), lower management (low). The frequency of interaction

in tactical mission is the reverse of the grand strategy

mission. 139-95:

 

31‘: tween thee

fmcderatfl . 1C“

 

The mLS'
cpzent W111 affe

wzll influence .

'fir‘v' ‘1 ’ ‘.
we... fill; lnf“

u‘

'11? ~.' ~.
' ‘nfidehce

his Of the

3.33:»...
Mir will at
\
“531::
H. If tke
Ad
E‘"Q‘:-...

21

mission. Departments with strategic missions interaction lie

in between these two: middle management (high), top management

(moderate), lower management (low).

Corollary III

The mission of the department of organization devel-
opment will affect the kinds of policies which the department
will influence. If the mission is grand strategy, the depart-
ment will influence policies that will affect the total cor-
poration's organization structure and management philosophy
towards the work environment. If the mission is strategy, the
policies influenced will affect the organization structure of
the corporation. If the mission is tactical, the department
will influence the organization structure of particular sub-

units of the corporation.

Corollary IV

The mission of the department of organization devel-
opment will affect the nature of the department's accomplish-
ments. If the mission is grand strategy, the primary accom-
plishments will be measured in qualitative terms; if tactical,
the primary accomplishment will be measured in quantitative

terms. The accomplishmenu:of the strategic mission department

will lie in bet

tactics .

Organiz;

 

fective in the 5

grand strategn ..
.21 "

4.

- Can ‘:
165c1a551fy t‘n

Timer .
““neSls wit 1

&

:ge

‘
“53 W'h:
A eq'L
‘r3:e

1‘“

22

will lie in between those hypothesized for grand strategy and

tactics.

Hyppthesis II

Organization development departments will be more ef-
fective in the solution of problems of organization, the more
closely the department approximates the Characteristics of a

grand strategy mission.

It can be seen that Hypothesis I and its four corolar-
ies classify the departments into three types. Previous
writers have not attempted to classify the departments. This
hypothesis will be tested to see if the departments can be
categorized in this way.

The second hypothesis will be tested to determine the
degree to which effectiveness is correlated with the grand
strategy mission.

The terms used in the hypotheses and thesis will be

defined in the next section of this Chapter.

Deprition.gI Terms

In the hypotheses and the thesis, several terms are
used which require clarification. The terms to be defined are:

organization development department; mission; activities;

ht raction; tc

cragenent: inf

 

0r

An orga:

 

 

 

a mat of a fir:

CEZ‘JES budget a:

.g.»' mrtht Q
dee1C§lept ac;

58
a erttEn C
vir‘me?

23

interaction; top management, middle management, lower

management; influence; accomplishments; and effectiveness.

Organization Development Department

An organization development department is defined as
a unit of a firm that is organizationally identifiable, re-
ceives budget allocations to perform specified activities, is
led by an individual responsible for that department who re-
ports to a higher level in the organization; and spends at least
fifty percent of its allocated resources in organization

development activities.

Mission

The mission of an organization department is defined
as a written or verbal statement of objectives which the de-
partment is expected to accomplish. Wilbert E. Moore defines

the term as follows:

Strictly speaking, organizations do not have goals,
or ends or purposes. These are subjective concepts
properly attributable only to individuals, including
those who formulate and pursue objectives on behalf of
organizations . . . . Administrative organizations may,
however, properly be said to have a mission, meaning a
set of specific, limited, and ordered objectives.

All of the qualifications just noted are important.
An administrative organization is not established or
continued for vague purposes of friendly interaction

but rathe
and the c
appriasec
equipped

members'

plish lit
cooperatj

In tE

These were:

H‘

t
w‘ a ma

24

but rather for objectives that can be clearly stipulated
and the degree of achievement constantly or periodically
appriased. Such organizations are generally badly
equipped to fulfill all of life's functions or their
members' interests. But they are equipped to accom-

plish limited functions that require complex
cooperation.

In the thesis, specific missions were hypothesized.
These were: grand strategy, strategy, and tactics. The
terms are used in military theory. They are used in this
thesis since they help to conceptualize three patterns of

operation of these departments. In the military usage, grand

strategy is

the art and science of developing and using poli-
tical, economic, psychological, and military forces as
necessary during peace and war, to afford maximum
support to policies, in order to increase the probabil-
ities and favorable consequences of victory and to
lessen the chances of defeat.32

Thus once the decision is made to use war as the means,

all the resources of the nation: material, human, and idea-

tional are mobilized to wage the war and the peace beyond it.
Strategy is
the art and science of employing the armed forces

of a nation to secure the objectives of national policy
by the application of force, or the threat of force.33

 

31Wilbert Moore, The gonduct g: the Corporation (New
‘York: Vintage Books Division, Random House, 1963), pp. 23-24.

32Air Egrce Glossary pI_Terms.
33Ibid.

25

Tactics is

the employment of units in combat; the order of
arrangement and maneuver of units in relation to each
other and/Or to the enemy in order to utilize their
full potentialities.

In this thesis, the military missions are used analo-

gously. When the department is created, the mission may

specify the use of several means. The grand strategy mis-

sion uses structural technological, and human approaches.

35

In discussion solutions to organization problems,

Leavitt describes the structural approach as

the improvement of the task performance in an or-
ganization by clarification and definition of jobs of
people, the setting of clearly defined relationships of
authority and responsibility, and creation of formal
mechanisms for coordination. A second mechanism of the
structural approach is to decentralize the firm and thus
reduce the cost of coordination and increase the control-
lability of subunits.36

The technological approach consists in the application

 

of
direct problem-solving inventions like computers
and operations research techniques . . . to improve the
quality of decisions made . . .37
34 .
Air Force Glossary, pp. Cit.
35

Harold Leavitt, "Applied Organization Change in Industry,”

in James March (Ed.) Handbook g: Organizations (Chicago: Rand
McNally Press, 1966), pp. 1144-67.

361big.

37-..-

T he I1.)

the Ch
of its me:
creative 1
modificatj
structure)
tion and 1

' u ‘ ‘
.“ “ lme.
“"“Q 51.1 .

‘ I
N FIN ‘
fry-a ‘erIS) :9"
J

V
"r-
.‘0.

In t
‘z ‘
s‘ a ceg’ar‘v“

QZPRasiZE at

 

26

The human (or people) approaches consist in

the change of organization by changing the behavior
of its members. By changing behavior, one Causes the
creative invention of new tools or one can cause the
modification in the structure (especially the power
structure) . . . these lead to Changes in the task solu—
tion and task performance as well as in human growth and
fulfillment.

Warren Bennis, in a similar analysis, says that one
can change organizations (in an attempt to solve organization
problems) by an engineering (or technological) approach which
will focus on the organization structure and the tasks and
technology of the work system or by a people approach which
will focus on the Changing of people--their attitudes, per-
ceptions and values and interpersonal and group relations.39

In this thesis, the terms will be used as follows.

If a department uses a ptructurgl approach, its solutions will
emphasize attention to the formal organization by analysis

and change of formal relationships such as organization charts,
responsibilities of position holders, and transferring of per-

sonnel. If a department uses a technological approach, its

 

38Leavitt,.gp. cit., pp. 1149.

39 . . . .
Warren Bennis, Changing Organizations: Essays on

the Development and Evolution of Human Organization (New'York:
McGraWbHill, 1966), pp. 114-15.

27

focus will be on changing the information technology or
instituting newer technology in the work place to improve the
anaIytical quality of decisions. If a department utilizes a
human approach, its emphasis will be to change the people as
such, by improving their inperpersonal skills or by changing
their attitudes, perceptions and values and consequent adjust-
ments in group and interpersonal relationships.

In this thesis, a grand strategy mission will be char-
acterized by the use of structural, technological, and human
approaches or means in the solution of problems of
organization for the corporation. A strategic mission will
be characterized by the use of the structural approach to the
solution of organization problems for the corporation. The
tactical mission will be characterized by the use of the
structural approach to the solution of organization problems

for subunits of the corporation.

Activities

Activities are those tasks and functions which are
performed by a department in the pursuit of its short and long
run goals. The specific activities performed by the

departments are deScribed in Appendix C.

An

asre perso

H
J.

J
A.

S

whet

;Y7‘.‘- y

-N-5

C

I 83:28 up.
{Eferri‘

behavio

28

Interaction

An interaction is a social contact between two or

more persons. As Homans defines it:

when we refer to the fact that some unit of ac-
tivity of one man follows . . . or is stimulated by
some unit of activity of another . . . then we are
referring Bo interaction . . . an element of social
behavior.4

By interaction pattern then, is meant the frequency, duration
and order of interaction between the organization development
department directors, members and other position holders,

and departments in the firm in the work situation.

It is difficult to differentiate hierarchial levels.
But interaction takes place among these levels. They are
defined as follows.

Lowgr Management: Those individuals which the firm
designates as part of management at the smallest unit and at
the lowest hierarchial level are defined as members of lower
management. Examples include: the manager of Unit 1, the
supervisor of Production Unit 1, the "Sales Manager" of the
Ohio Sales Force and the "Director" of the Blue Collar Wage

and Salary Section, and other first line supervisors.

 

0George Homans, The Human Group (New'York: Harcourt,
Brace and Company, 1950), p. 36.

 

Middle I
policy makers s

first line sup-e

    

:iddle mama-gene

        
  

3v-
an

TCDM.

mart to him,

,5.“ ‘s“ a

is evidenced 1:1;

"Us ,
35 txecutive C

zanagenent .

29

Middle.Manggemenr: .Managers below formal corporate
policy makers such as Division Vice Presidents, and above
first line supervisors (lower management) are defined as
middle management.

Top.Managemggr: The President, Vice Presidents who
report to him, or Group and/Or Executive Vice Presidents, and
the latter, and any others who make corporate policy formally,
as evidenced by membership on corporate level committees such
as "Executive Committee," are defined as members of top

management.

Influence

Influence is the process by which an individual or
group induces those in power (those who make decisions which
affect the policies of others in the organization) to change
the policies in the sphere of activity desired by the
individual or group.

The weight of influence is the degree to whh:h the
policies are actually changed. The scope of influence is the
range of values affected by the Change. The domain of influ-
ence is the individual or group of individuals with the power

who are changed. The sources of influence are: expertise

of the individ
individual and
41

nrfl ‘D
wV~’

Corolla

 

 

 

vary with the IT:
cission will pr'
in qualitative
accomplishments
:er muld be nu
,-

:1..- example of t

or ada ptab i l i t‘,

See 1

2.. Harold

Jew, ha‘len. YE

1“ Robert

tert of James I
I\: I flu
“~41: e
e 1955)) C
3:51.. ierrek
N (~0towa
Bennie

30

of the individual or group, the values offered by the
individual and group, and the charisma of the person or
group.

Nature of Accomplishments

CorollaryIV predicts that the accomplishments will
vary with the mission of the departments. A grand strategy
mission will produce accomplishments that will be expressed
in qualitative terms. A tactical mission will express its
accomplishments in quantitative terms. An example of the lat-
ter would be numbers of people terminated or dollars saved.

An example of the former is increased organization productivity

or adaptability to change.

 

41See for example:

Harold Lasswell and Abraham Kaplan, Power and Society
(New Haven: Yale University Press, 1950), p. 60.

 

Robert Bierstedt, ”An Analysis of Social Power,"
American Sociologigal Review, XV (December 1950), p. 731.

James March, "Introduction to the Theory and Measure-
ment of Influence," American PolitIgal Science Review, XXXXIX
(June 1955), p. 435.

Terrence K. Hopkins, The Exercise 9; Influence i_ Small
Grgups (Totowa: The Bedminster Press, 1964), p. 41.

 

Bennis, pp. gi ., pp. 161-75.

31

Effectiveness

The statement was made (Hypothesis II): ". . .
departments will be more effective . . ." Effectiveness is
difficult to measure. In a business firm, effectiveness is
normally measured by the degree to which the firm attains its
goals. Organization development is one of many functions in
the firm. Normally, the firm would not attribute an increase
in profit, for example, to one function or one set of policy
Changes. Therefore, effectiveness will be measured by the
degree to which the executives of the firm feel the department
is effective, as evidenced by their statements and their be-
havior toward the department.

Having defined the terms used in the thesis, the
chapter concludes with a discussion of the methods used to
test the hypotheses and pursue the field research for the

thesis.

Research Methodology

Various research methods were available to study or-
ganization development departments. Two that frequently are
used are mailed questionnaires and field research. .Mailed
questionnaires can be useful, if some prior research has in-

dicated which are the critical variables and if these are

{fl

likely to be a

 

But as ChriStc

A pain
is that me
just grand
research a;
real life 1
societies.
living and
able of er

 

exPlain and
it exPerm
scieties.‘

Thereff
servaiicn. na

were ‘dSed. A

:‘IEIESted’ and

ing f‘]
Semant,c and <
Altho
42
019,14 2 'Chr
43
44

32

likely to be answered by the respondents through the mails.

But as Christopher Sower has said:

A painful but real dilemma for social scientists
is that neither questionnaires, computer methods, nor
just grand theorizing are adequate substitutes for solid
research and experimental designs conducted with the
real life situations of the organizations of modern
societies. As these methods are detached from work with
living and functioning organizations, they are not cap-
able of producing a theory which can be used to either
explain and predict organization change, or to produce
it experimentally in stated situations of real life
societies.

Therefore, field research methods which included ob-
servation, analysis of corporate documents, and interviewing
were used. A series of interview schedules was prepared,
pretested, and refined in a preliminary interview with a
departmental director and interviews of three management
consulting firms.43 The schedules were also refined for
semantic and other bias by pretesting the questions.44

Although some questions concerned the origin of the

department and characteristics of its members, the primary

 

42Christopher Sower, "Innovation in Development

Organizations," East Lansing, 1966, (Mineographed).

3For a summary of their reSponses, see Appendix A.

44The schedules used are contained in Appendix B.

33

emphasis was placed on the functions and processes of the
departments. These included: the activities performed by
these departments, who they were performed for (interaction)
with what degree of success (influence) and with what results
(accomplishments).

Seven firms were visited. Departmental directors and
members, superiors of the director, and clients of the depart-
ment were interviewed. Visits varied in length from a maximum
of four days to a minimum of one-half of a working day. A
significant advantage of this approach was that a number of
internal and external sources of confirmation of the data
could be utilized.

The first source of confirmation was the use of delib-
erately overlapping questions on the interview schedule. A
second came from multiple interviews within the organization.
Whenever possible, apparent contradictions or discrepancies
were clarified during the interviews or by mail after the
visit.

A third source of confirmation was printed material.
In every case, examination of the appropriate corporate docu-
ments (such as reports, brochures, annual reports, diaries of
meetings) and published data was performed. These were checked

with the responses of the interviewees.

A fO'

informants a

Fina
directors.
meetings and

0f confirna':

34

A fourth source of confirmation was the use of
informants available to the research at three of the seven
firms.

Finally, peer directors were asked to evaluate other
directors. These men knew each other well from association
meetings and other relationships and were a valuable source
of confirmation.

The sample chosen for investigation will now be de-
scribed. Seventy-five firms were known to have such depart-
ments. Because of limitations of finances and time, only
the forty-nine companies located East of the Mississippi
River were considered. Because it appeared that the diver-
sity of products produced, the age of the firm, and the
volatility of the industry might have important effects,45
several industry groups were eliminated. The universe con-
sisted of the following groups: sixteen engaged in extrac-
tive manufacturing, fourteen in manufacturing and assembling,
eight in retailing, six utilities and two each in service and
financial businesses. The last three categories were
eliminated. Directors who belonged to the Organization Devel-
opment Council and the Council on Organization Planning were

asked to nominate firms in these industries who maintained

 

45See Joan Woodward, Industrial Organization (London:
Oxford University Press, 1965), 1-3.

effective de
dues extrac
one manufact
(Manfex, Re:
tion seems t

The

P191". and hi:

The

0“
(D
0.)

r1

5. with

“re Within

35

effective departments. From this group seven were Chosen:
three extractive manufacturers (Coman, Extram, and Tractem);
one manufacturer (Assembler); two manufacturers and retailers
(Manfex, Remco) and one retailer (Outlet).46 This distribu—
tion seems to fit that of the universe moderately well.

The firms were described by using the scheme of Derek

Pugh and his associates:47

Age of the Firm

The range was from fifty-five to one hundred ten
years, with a median of sixty-five years. Five of the seven

were within ten years of the median.

Ownership

All seven were corporations, four of which had com-
pletely diversified ownership. Two had less than twenty
percent family ownership of the stock. And the seventh was

attempting to broaden its thirty percent family share.

 

46These company names are used so that the firms

studied could remain anonymous.

47Derek Pugh, gr_aI., "A Conceptual Scheme for Organi-
zational Analysis," Administrative Sgience Quarterly, VIII
(December 1963), p. 289.

All 56

I
l

as the corpora

The tec

 

 

 

e ‘
“It. predomina:

36

Charters
All seven corporate charters called for profitability
as the corporate objective.
Technology
The technology of these firms was mixed with no one
form predominating.
Resources
The resources of these firms were considerable and
differed only in the variation of ideology.
Interdependence
The firms tended to be oligopolists with good labor
relations and no special prOblems with suppliers.
Performance

This variable is difficult to measure, but the re-
ports of stock brokerage firms and investment analysts saw
only one as an outstandingly successful performer relative

to the total market in the last ten years.

the median c
Sum:
1201'::C, but

the median 1

T h

w.

"'5 reaSon
In

fill k

37

Size

Assets: Varried from $385,000,000 to $1,100,000,000
but six of the seven did not vary more than $50,000,000 from
the median of $575,000,000.

Number of Employees: This varied from 30,000 -
120,000, but five of the seven did not vary appreciably from
the median of 65,000.

The sample is felt to be representative of the uni-
verse in the variables of age, ownership, resources, tech-
nology, interdependence, and size. The performance variable
may be atypical but is felt to be an important indicator of

the reason for creation of a department.

In Chapter II, the missions of the departments studied

will be described.

(h

 

The mi:
develogtent put
states that on:
teraction, inf
dicted. The s
the degree to
the grand stra

Chapte

7.76.
'1 dePartme

CHAPTER II

THE MISSIONS OF THE DEPARTMENTS

OF ORGANIZATION DEVELOPMENT

The missions the departments of organization
development pursue are very important. The first hypothesis
states that once these missions are known, the activity, in-
teraction, influence, and accomplishment patterns can be pre-
dicted. The second hypothesis relates effectiveness with
the degree to which the department's mission approximates
the grand strategy mission.

Chapter II presents the mission statements of the
seven departments. It also presents the historical evolution
of the missions. This evolution is important since it indi-
cates the trend of top management support of the department.
Each department's mission statements will be presented. Then
these will be analyzed and the department will be classified
as pursuing a grand strategy, strategy, or tactical mission.
Later chapters will present data about activities, interaction,

influence, and accomplishment to confirm this classification.

38

(h

 

 
 
   

printed source
and published

terview sched;

chedtzle l: ‘

 

Schedule 2: F-

Sched‘ile 3 ;

I?"

This c

tents have . L

then.
Eat
The d

vPate,
fit at Ram.

In“

39

The mission statements were derived from the following:
printed sources such as corporate documents, annual reports,
and published articles; and responses to questions on the in-

terview schedules (especially those underlined):

Schedule 1: 1(H); 1(I); 1(J), 3, 4, 5, 6, 10, 12, 13,.IQ,

Schedule 2: A; B; H(3).

Schedule 3: AA; DD; GG.

This Chapter will examine what objectives the depart-

ments have. Later chapters will describe how they accomplished

them.

Data n The Missions gI_Departments__r

 

Organization Development

Remco

The director of the department of organization devel-
opment at Remco will be called Ronald.49 Prior to 1963, this

firm employing over 100,000 employees had no corporate staff.

 

48SeeAppendix B.

49All names of companies and persons used throughout

the thesis are fictitious to protect their identify.

When Remco
department
ganization

Ro

Remco in l

the Plan‘-

.‘A
‘-
II“-

40

When Remco created this staff, the organization development

department came into being. Ronald had had many years of or-

ganization development experience with large firms.

Ronald stated that the mission of the department at

Remco in 1963 was the same as the present mission:

the

[R-l]50 My job at Remco is to do organization
studies of the plants. For example, last week I did
a study on the plant. (Ronald produced a
packet of organization charts.) Here you can see the
plant organization before and after my work. They
were all messed up. I changed them from a functional
to product organization basis. In the process, I cut
twenty percent of their personnel. There was a lot
of fat in their operation.

Ronald stated that his clients were concentrated at

plant level, and not at the corporate level.

[R-2] Our new President took an old one-product
company and gave it diversification. In the process,
he created a corporate staff, but the line makes little
use of the staff. Our corporation really has two levels:
corporate level and plant or store level. All of my
work has been with the plants. I have not been asked
to work at the corporate level. The President sees this
as his prerogative.

Finally, the approaches utilized by Ronald in his work

were discussed. During this discussion, the structural,

 

50[R-1] and subsequent letter-number combinations will

be used to refer to the data presented at this time later in
the thesis.

(1"

techno 109ica "
stated that 1'.
preaches. He
scribed in so:
Studies. The:

In all cases,

 

 

structural cha

The de
studies. [R—l
at t‘

ne corpora

:,.,
wJZdIlCe of st

41

technological, and human approaches were described. Ronald
stated that he did not use the human or technological ap-
proaches. He emphasized the structural approach. He de-
scribed in some detail several plant level organization
studies. These were given as examples of his objectives.
In all cases, the goals were personnel savings through
structural changes.

The department focused on plant level organization
studies. [R-l] Ronald denied that he performed analysis
at the corporate level [R-2]. And Ronald described the per-
formance of structural activities to illustrate the use of
the structural approach. In addition, he denied that he or
any other department at Remco utilized the technological or
human approaches to organization problems.

Thus, Remco fulfills the two requirements for a tac-
tical mission: utilization of the structural approach to
solve organization prOblems at the unit level of the

corporation.

Assembler

The director of the department of organization devel-
opment at Assembler is Called Arnold. In 1956, he worked for

a management consulting firm. This firm reviewed the

I“

organization .

st ucture . T

 

retirement of
firm for fort;
for Assemb let
Ely-F .
-gd. 5‘. as his a
1

the changes ,

When 1

AIHOICI d1 Scus

3"-
i.Se at ASSe

fiv-
Vs':
U

ERLZathn

.N‘e':

42

organization of Assembler with a view to changing the
structure. This change was necessitated by the impending
retirement of Assembler's chief executive who had led the
firm for forty-five years. 1956 also saw explosive growth
for Assembler. The new President asked Arnold to join his
firm as his assistant. Arnold's duties were to help the
President evaluate the consultant's report and help implement
the changes.

When this project was completed, the President and
Arnold discussed the future organization problems which might
arise at Assembler. They decided to create a department of
organization development. The President wanted the department
to help the executives to control the organization problems
they were likely to face with the expected growth in the
future.

The director stated the original mission of the de-

partment as follows:

[A-l] In the beginning, our job was to implement
the decentralization program for the corporation to
assure that the divisions complied with our plans.
This was quite an extensive task and the department
grew because of our[Assembler's]growth.

The director described the present mission at several

points in the interview. At one point he said:

{A-ZI

department

‘ divisions

i zation dev

man may be

organizat;

ment 8:." te

and the d;

and 9011c;

trcls, del.
bilities,

Structure,

consultant

 

 

EA-aj
to review
We apprais
to
a

be made
higher 1
SEnt to US
Plans 50 t
StruCtUre.
that alloc
with them
and make I
the proper

43

/

[A-2] At Assembler now, the organization v/
department contains seven professionals. The largest
divisions have at least one divisional level organi-
zation development man. In the smaller divisions, one
man may be responsible for several divisions. We view
organization as the implementation of a total manage-
ment system. We try to help the corporate headquarters
and the divisions phrase their organization objectives
and policies. We help them set up organization con-
trols, delegation of authority, executive responsi-
bilities, proper decision levels and sound organization
structure. We try to act as an internal management
consultant for them on their organization structure problems.

Later, Arnold said:

[A-3] We meet with the top executives frequently
to review and approve their division organization plans.
We appraise their decisions on the level decisions are
to be made, checking if these decisions are reserved for
a higher level. All major organization changes must be
sent to us. Top management sends us their long-range
plans so that we can project the future organization
structure. There is a separate Business Planning staff
that allocates resources of the firm. We work closely
with them to see if they think a new division is needed
and make recommendations on whether we feel they have
the proper structure.

I believe that there are principles of management--
and management has the basic responsibility to use
these. Our department must try to see that they do so.
The general manager must plan, control, and measure -
watch his span of control, delegate authority effec-
tively to the lowest level, avoid committees for they
are not effective decision makers. We try to get the
top management to work together as a "choir" not as
soloists. Otherwise, too much overlap results. Per-
haps you can have five percent overlap with efficiency,
but no more. We've got to watch staff and line rela-
tionships and the balance of the organization.

 

It was
I and whether n:
aroaches to or

follows:

1.4} Per
E' managers a
The comrur‘.
with inforl
talk 350“
department

 

When AI
:ated in a spec

an organizatio:

[A- 5
5 eff divi:
for example
if they as.-

Zation pro
With an ads
:or A8882?“
“ff Bad 1
tions of .
ganization

Arnold

tea I:

Y's
"C

COIlfirmeci 1

44

It was important to know what approaches Arnold used
and whether he was involved in the human or structural ap-

proaches to organization development. Arnold replied as

follows:

[A-4] Personnel changes are the concern of the line
managers and some staff people such as personnel.

The communications and systems department is concerned
with information flow. The rest of the duties you
talk about are handled by the management development
department.

When Arnold was asked whether his department coordi—
nated in a special way with these other departments during

an organization change, he said:

[A-S] We don't have any more contact with these
staff divisions than we do with systems engineering,
for example. We normally are involved with them only
if they ask for our help in their own internal organi-
zation prdblems. Our chief focus is to be concerned
with an adequate and efficient organization structure
for Assembler. We are closest to the Plans and Controls
staff and together make sure that the management func-
tions of planning, organizing and controlling the or-
ganization are adequately and efficiently performed.

Arnold stressed the corporate focus of his depart-
ment and its use of the structural approach. This impression
was confirmed by other sources. The corporate policy manuel

stated the department's mission as:

(A-
will me
the co:
all po
the 80
powers
to the

RCZEnc
It wil
Change
follow
chart:
divis;
also .
will ;
their

45

[A-6] The department of organization development
will maintain the company policy manuals, specifying
the controls the corporation exercises. It will issue
all policy statements in the area for the Chairman of
the Board and the President. These will specify the
powers and duties reserved by themselves, to the Board,
to the Vice Presidents and to the divisions. It is the
custodian of the management system . . . The department'
of organization will be concerned that principles of
organization are followed in Assembler, carefully clari-
fying the responsibilities of individuals and departments,and
maintaining proper line and staff controls. The depart-
ment will assure that the departments are planning their
objectives, planning their organizations, and responsi-
bilities. This department will issue manuals of proper
nomenclature, position titles, and task descriptions.
It will be its responsibility to control organization
changes. It will determine if the departments are
following corporate policy by checking organization
charts and departmental policies. It will inspect the
division organization manuals . . . The department will
also issue the corporation organization directory which
will show the names and titles of present personnel and
their reporting relationships and responsibilities.

Arthur, a typical department member, has worked in the
department since 1957. His descriptions of the origin and

evolution and present mission confirmed Arnold's statements.

[A-7] Each of us work at corporate level and with
some of the divisions. We do service work, such as
keeping their manuals up to date, checking titles and
job descriptions for adequacy with reference to corpor-
ate policies. We do organization studies to consider new
structures, or we check the adequacy of present structures
for the divisions. The chief objective we have is to
make sure that our departments are efficient in their
service. For example, some executives questioned whether
our legal staff was servicing the corporation well. They
were divided into antitrust and general legal departments.
I did a study. There was some overlap because lawyers

1‘.

are a PI
segments
Each 59!
divisior

Arne
tion at the
plementing t
In jA-zj, he
partment the

to help the

46

are a pretty jealous lot. So I broke it into three
segments: current operations, litigation, and research.
Each served certain top executives plus certain
division responsibilities.

Arnold stated that the department focused its atten-
tion at the corporate level. In [A-l], Arnold spoke of im-
plementing the "decentralization program of the corporation.”
In [A-2], he descirbes an organization structure for the de-
partment that fits this pattern. Further, he says: "We try
to help the corporate headquarters and the divisions to
. . . ." [A-2]. Similar statements are made in [A-3], and
are confirmed in statements from the policy manual [A-6]:
"The department . . . will maintain the company . . . man-
uals, specifying the controls the corporation exercises. . ."
Corporate focus was confirmed also by Arthur‘s statements [A-7].

What then of the approach taken by the department to
organization problems? Arnold, Arthur, and the policy man-
ual give evidence of the use of the structural approach. [A-Z]
". . . We help them set up organization controls, delegation
of authority . . . and sound organization structure. We try
to act as an internal management consultant for them on their
organization structure problems. . ." Similar statements are
made in [A-3, A-6, A-7]. Finally, Arnold specifically denied

the use of human and technological approaches or even special

1'5

coordinat

these sta
ing .

structur

r1

Q‘v N;
V-satES‘C

to solve

47

coordination with those who do [A-4]: ". . . the duties you
talk about are handled by the management development depart-
ment . . ." [A-S] "We don't have any more contact with
these staff divisions than we do with . . . system engineer-
ing . . . Our chief focus is . . . efficient organization
structure. . ."
Thus, Assembler fulfulls the two requirements for a
Strategic Mission: utilization of the structural approach
to solve organization problems, and focus on their solution
at the corporate level. There is only one similarity between
Remco and Assembler's departments. That similarity is the
use of the structural approach. There is a distinct con-
trast between Ronalds plant level studies and Arnold's cor-

porate focus. And Assembler has division-level organization

staff to do plant studies.

Coman

Charles has been the director of the department of
organization development since its creation in 1959. The

department's background was described by Charles as follows:

[C-l] Our executives were not satisfied with our
employees' performance. We felt that they were not
working to their potential and probably because too
much of our energy was drained off into internal

I'v-

conflicts
that it w
want to M'
we were r

In 1958,

Likert, M
ing numbe
heir 1::
been uSlr.f
havioral

organizat

With our

rial tech
some of ti
by Haire,
thEir Wri
functions
new def-Dar
wanted tC
I'd Scare
initial IT.
Flementin.
and Organ,
ministrat.
W’anted a
ésnnel‘wo
Gered if

Person“
so the

1“age.

   
       
 

 

C
s.

V
81
Or:

48

conflicts. But in our company, we didn't believe
that it was a union problem or that people don't
want to work any more, but that it might be the way
we were managing.

In 1958, I came under the influence of Professors
Likert, McGregor and Haire. I learned that a grow-
ing number of executives, managers, supervisors and
their immediate organizations in the company had
been using relevant research findings from the be—
havioral sciences in an attempt to build better
organizations and to improve organized human effort.

With our problems and my knowledge of the new manage—
rial techniques, I suggested that we consider using
some of the approaches to management being suggested
by Haire, Likert and McGregor. I wrote a report of
their writings and suggested we separate certain
functions of Industrial Relations. We called the

new department: Management Personnel Services. I
wanted to call it Organization Development, but felt
I'd scare them with that title at that time. Our
initial mission was: "to assist in evolving and im-
plementing sound principles of motivation, management,
and organization with respect to the efforts of ad-
ministrative, technical, and professional people." We
wanted a separate department because we felt that per-
sonnel work was not relating to line people and won-
dered if we could use Theory Y. We separated from
personnel because we wished to operate differently and
so the organizational separation could help change the
image.

The director then discussed the evolution of the
department. He also indicated how the mission changed over

this time period.

[C-Z] How could we seven or eight people influence
thousands of employees from all over the world, espe-
cially since we wanted to be an inside consulting serv-
ice and not use top management pressure to sell our

-1“

41 ..

message?
assistanc-
and exer;
our help

example.

came in t.
most freq
became cc:
tated thrf
has been

We organi;
as an exa:
t0 exercis
if we WEI:
salary ch;
Porting 51'
03! first
ary admin-
approache:
aSking f0:
aCCEpted .

Managemepl

fOur exert“:
in industg
training ’
1961 We re
IUduS

 

tria1

49

message? Well, we began by emphasizing our three
assistance functions--organization charts, training,

and exempt salary administration. Managers could get
our help in implementing the unified salary plan for
example. Initially, most requests for our services
came in the area of salary administration. The next
most frequent request was organization. The managers
became convinced that the human effort could be facili-
tated through reorganization. Later on, the emphasis
has been to forward planning, not day-to-day operations.

We organized the department along the lines of Theory Y
as an example to the firm. And so we did not attempt
to exercise control in our areas. We would only act

if we were asked to help. We didn't attempt to control
salary changes, and weren't concerned about formal re-
porting systems. Well, we had to wait six months for
our first customer. They came to ask for help in sal-
ary administration. We used the Likert-Haire-McGregor
approaches and soon other units of the company started
asking for our help. But it was a while before we were
accepted.

Management Personnel Services was initially made up of
four exempt and four nonexempt people, whose backgrounds
in industrial relations included salary administration,
training, and organization development. From 1959 to
1961 we reported to the same vice president as did the
Industrial Relations Department.

The objective remains the same today as it was in 1959.
We changed our name and relationship. Early in 1962

the company decided to bring together a number of cor-
porate staff units that might loosely be thought of as
having a forward planning orientation rather than deal-
ing primarily with day-to-day problems. Management Per-
sonnel Services, under the new title of Organization
Development, was transferred to this grouping along with
four other staff units. All report to a vice president
of the corporation. Our current mission statement is
”To assist managers at any level to make the most effec-
tive use of current knowledge about organized human

ffort in
zation per

So you
conditions

We are in:
attitudes
organizat;
In orc>
teconfirned,
this document '.
Partrent Basin:
the Projected :
nreconfirmed.
comment which

Fr:

““' BUt the s

.{A ‘ I
:‘J1Wlth Char‘

 

50

effort in their continuing attempt to improve organi-
zation performance."

So you can see we are concerned with creating the
conditions such that group relations are supportive.
We are interested in persuading Coman to change its
attitudes to Theory Y, and helping these processes by
organization work, salary work, and training aids.

In order that the statements given by Charles could
be confirmed, the department's annual report was reviewed.
This document was called ”The Organization Development De-
partment Business Plan." It included an annual report and
the projected program for the next year. Charles” comments
were confirmed. The mission statement was printed on this
document which had been approved by the department's superi-
ors. But the spirit and attitudes perceived from the discus-
sion with Charles also wemapresent. The utilization of the

human and structural approach can be seen in [C-3].

[C-3] Long-Term Objectives of the Department

The principal long-term objective of the department
continues to be to assist managers at any level to make
the most effective use of current knowledge about or-
ganized human effort in their continuing attempt to im-
prove organizational performance. The department is
responsible for guiding the Corporations' exempt salary
program, coordinating the exempt personnel inventory,
maintaining the major organization charts of the Corpora-
tion and providing a variety of informational and con-
sultative services relating to organizational effective-
ness. These services include:

Conce;
Planning a
Teams -- R
Motivation
-- Minimiz
Operatin
Incentive-

 

Other
{ Um Genera
Training P
sultaticn

But th
chentation of
scion titled

v

iC-4]
(1) Th
is primer;
Pies to a E
09139 fer
meet the

(2) Th
reqUESt.
wHere ther-

(3) A:

 

 

51 '

Conceptual and Consultative Assistance In: --
Planning and Implementing Change -- Building Effective
Teams -- Resolving Organizational Conflicts -- Applying
Motivational Knowledge -- Linking Organizational Systems
—- Minimizing Communication Obstacles -- Planning and
Operating Within the Salary Program -- Using Financial
Incentives -- Using Objectives Constructively.

Other Direct Services: Exempt Job Evaluation for
the General Departments -- Executive Development and
Training Program Information -- Outside Placement Con-
sultation -- Individual Relationship Consultation.

But the utilization of Theory Y and the particular
orientation of the department was especially noticed in the

section titled "Policies of the Department"[C-4].

[0-4]

(1) The aim of an Organization Development consultant
is primarily to provide insight, perceptions and princi-
ples to assist the manager or his organization in devel-
oping for themselves the kinds of solutions which best
meet the problems at hand.

(2) The services of a consultant are available upon
request. He will not seek to interject such services
where they are not wanted.

(3) An invitation to consult, advise or assist on any
specific or given problem does not commit the seeking
manager or organization to any continuing relationship
with the department or a consultant, nor does it commit
him to accept counsel nor the principles on which coun-
sel is given. Similarly, consultants expect to be free
to withdraw from situations where they feel they cannot
be helpful.

(4) In formal conceptual work, the department ex-
pects to be held fully accountable for the integrity of
the principles evolved. On the other hand, once a formal
system, procedure or program has been adopted by line
management, the accountability for its operation belongs
with the line.

’1‘-

(S) T
of the de
manager t
problems
and his c
manager t

(6) T.
confident.
formal or
Developme:
dential.
and experi
COEP€tence
of mutual
Which all;
and proble
Sharing 0;
internal r
Partners
Often com:
33°39 Ours
for the c;

g l

The m;

Straw

“ ~e€n{ . E‘j_r
Marion, not

cescribes how

ange, but

sL 0n tiue ffil:fi_

L

 

tern
tfirate leve‘

§‘.
used} I
V:

Sdn‘
..Cls
CDf F

trait.
in? the C

t179
. DYE? £31763

52

(5) Time and availability permitting, any member
of the department will accept an invitation from any
manager to work with him and his organization on their
problems and will report findings only to that manager
and his organization unless Specifically asked by the
manager to convey data to his organization superiors.

(6) The members of the department will not misuse
confidential information entrusted to them by either
formal or informal means, but within the Organization
Development Department such information is not confi-
dential. Free and complete internal exchange of data
and experience is necessary to maximize learning and
competence. (The essence of this policy is an attitude
of mutual trust, mutual support and open communications
which allows for complete exchange of ideas, experiences
and problems among members of the group as needed. The
sharing of every conversation and problem is not an
internal objective of Organization Development, but like
partners in any effective consulting organization we are
often compelled by the needs of the client to consult
among ourselves to try to produce the most useful help
for the client.)

The mission of the department at Coman is grand
strategy. First of all, its focus of attention is the cor-
poration, not subunits of the firm. In [C-1, C-2], Charles
describes hOW'he wanted the whole philosophy of the company
to change, but he would not be inconsistent and try to force
it on the firm. Instead, the function was created at the
corporate level. Their purpose was [c-2] ". . . influence
thousands of people all over the world . . . [C-Z] ". . .

creating the conditions such that group relations are suppor-

tive. We are interested in persuading Coman to change its

41k

attitudes. -
the Business F
for guiding th
ing the major
This orientati
Second
rulti_le. The

given so far.

  

from the behav;

~\
g
d

, rizations

Drganization C"

 

53

attitudes. . . .” The corporate orientation is evident from

the Business Plan [C-3] ". . . The Department is responsible
for guiding the corporation's exempt salary . . . . maintain-
ing the major organization charts for the corporation . . ."

This orientation is found in [C-4] as well.

Secondly, the approaches chosen by the department are
multiple. The structural approach appears throughout the data
given so far. [C-l] ". . . using relevant research findings
from the behavioral sciences in an attempt to build better or-
ganizations . . .". [C-2] "We began by emphasizing . . .
organization charts . . . The managers became convinced that
the human effort can be facilitated through reorganization."
Many of the services provided by the department were structural
activities (See Appendix C). [C-3] "Planning and Implementing
Change . . . Resolving Organizational Conflicts . . . Linking
Organizational Systems . . ."

Thus, Organization Development Department at Coman is
involved in changing the organization structure of Coman by
using the structural approach. But it also is concerned with
changing the people involved. This is the human approach.
Practically every statement given so far emphasizes this ap-
proach. Examples include: [C-2] ". . . creating the condi-

tions such that group relations are supportive . . ."

 

Teams . - - A3
and mad other
approach of t”

attitudes so *

 

. e
The technolog‘.
g was evident ir
tense in .
ing programs 1
. Thus,
‘

the structure

The

32?;-
. em: a t

l"

ZQiCQtt,

:- ~
«.hst

ein.

54

[c-3] ". . . These services include: . . . Building Effective
Teams . . . Applying Motivational Knowledge . . ." In these
and many other statements, Charles indicated that a primary
approach of the department was to change the people and their
attitudes so that the organization would be more effective.
The technological approach was not stressed particularly, but
was evident in a few mentions such as [C-3] "provide assis-
tence in . . . minimizing communication obstacles . . . train-
ing programs for executives."

Thus, Coman's department utilizes several approaches:
the structural and human and (to a small degree) the techno—
logical. It also focuses its attention at the corporate level.

Therefore, it is classified as pursuing a mission of grand

strategy.

Extram

The Director of the Department of Organization Devel-
opment at Extram is Edward. Members of the Department include
Endicott, Edwina, and Esmund. The department's superior is
Einstein.

Extram has a history which included past interest in

problems of organization. As Edward described it:

4.1“

{E-l;
problems
educated
President
tion, the
President
in the Mi:
list of e
ditional
of the cc
everythin
company F
about org
were 1501
work had .
rESPCnsib
This p05;
imProvin;
mittee d;l
moving, b-
level, I.
created w
self the
man was a
became rei

 

received a
when We a:

At t:.
9«ace in ‘

55

[E-l] The earliest interest in organization
problems was shown by the well respected and best
educated executive of Extram at that time, the Vice
President of Industrial Engineering. At his sugges-
tion, the company created a Committee of the Vice
Presidents called "Committee on Organization Planning"
in the Mid-1940's. It met regularly and issued a
list of eleven principles of organization of the tra-
ditional type which was to help us manage all aspects
of the company. These principles were applied to
everything from plant organization to running the
company picnic. The Committee pestered the bosses
about organization structure, but these principles
were isolated from the total management process. This
work had filtered down to the plant level and I was
responsible for these matters at the plant level.

This position focused entirely on drawing charts and
improving "the mechanics" of the structure. The Com-
mittee died from attrition of executives retiring and
moving, but the seeds had been planted at the plant
level. To implement the ideas of these men, there was
created within the Industrial Relations Department it-
self the position of an Organization Planner. This
man was a Purdue Industrial Engineering graduate. He
became restless at staff work so in 1960 requested and
received a line position in a new division created
when we acquired a firm.

At the same time as these developments were taking
place in organization, management development was grow-
ing as an area. At Extram, an assistant to the Presi-
dent, who had been the Director of Industrial Relations,
was given the project assignment of finding out about
management development. This project lasted from 1953-
57. He visited all the companies who had this function
and wrote reports about them. He recorded the "useful"
aspects and had created a large file. About this time,
the assistant to the President was promoted into a
divisional line position. I was given the management
‘ development department and shortly thereafter the or-
ganization planning function so I had the beginnings of
an organization development department.

. _[flk

Edwar

andsubsequen

25-22
do? Well
on print;
tion plan
made recon
volved w;
ning were
work. Wti
President
dent just
we concen

 

it up, a:
9059 Of c-
ganizatic
VEIoprentl
methods.

it- The l
Organizat;
aSPECtS 0
Side and
needed Or
tents to
use and t
Confused
prC’CESS a
Part of t

Ed'fial

RSSiOn state

56.

Edward describes the status of the functions prior

and subsequent to his assumption of leadership.

[E-Z] You might ask: What did these departments
do? Well, management development primarily gave courses
on principles of management and such things. Organiza-
tion planning produced directories, did studies, and
made recommendations for changes. They were not in-
volved with each other. The people in organization plan-
ning were quite frustrated. They saw no one using their
work. When it came time for changes, not even the Vice-
President-Industrial Relations was consulted. The Presi-
dent just went ahead and did what he wanted to do. So
we concentrated on lower and middle management. To sum
it up, at that time I guess you could say that the pur-
pose of organization planning was to do studies of or-
ganization structure and the purpose of management de-
velopment was to teach courses about better management
methods. That's what we were expected to do and we did
it. The prior President seemed little interested in
organization studies so I concentrated the publicized
aspects of our function on the management development
side and continued organization studies for those who
needed or wanted them. I started using various consul-
tants to help us. On the organization side, I tried to
use and teach the Principles of Alvin Brown but I was
confused until I saw it as part of the total management
process and it could then take its rightful place as .
part of this process, not just isolated studies.

Edward indicated that [E-2] was close to the earliest
mission statement as he understood it. Edward next discussed
the interim period prior to the present mission.

[E-3] We evolved a new management development pro-
gram using Kepner and Blake as consultants. Many exe-
cutives took these courses, including our present
President. In late 1962, the prior President was get-
ting close to retirement and his indicated successor
was concerned (along with the executive committee) about

the poor C
needed a 1
He had tai-
the philo:
But he sa:
develop se
it? How '
Jectives x
large, 094
diversify
programs ;
gether an:
so we beg;
reader of
ZaEBQEIS 1
Survey of
and give :
and I S‘dg:
We modife:

In t»,
=33 Edward ev

scribed the N

H'

IE-4:
t° Pele t
Seonsible
Can dEve]
COCrdinat
Signs,

SE
OrganiZaT

57

the poor quality of our executives. Whenever we

needed a replacement, we weren't happy about the results.
He had taken our course and said he was satisfied with
the philosophy of management we were trying to teach.
But he said, "Does our organization structure help us
develop self-starting, independent managers, or impede
it? How likely are our managers to set their own ob-
jectives with our centralized organization? We are
large, operate over a wide geographical area, and are
diversifying in products. Yet our profits are poor, our
programs are not effectively evaluated. Let's get to-
gether and discuss this." My boss was acquiescent and
so we began meeting weekly. The President is an avid
reader of the literature and circulates freely with top
managers outside the company. He asked me to make a
survey of the corporation's organization for problems
and give some recommendations. I made the usual charts
and I suggested a new organization plan (decentralized).
We modifed it by the people he had to sell to the board.

In the process of these discussions, the President
and Edward evolved the mission of the department. Edward de-

scribed the mission in terms of objectives:

[E-4] So we set some objectives that we would try
to help the corporation achieve: a capable manager re-
sponsible for every business in this company. One who
can develop objectives for his business, administer it,
coordinate his objectives with other functions and divi-
sions, set priorities, be accountable for results. An
organization of jobs and levels of jobs which promotes
and permits optimum communication and coordination
throughout the company. An organization structure which
reflects sound Principles of Organization that can be
reapplied to any segment of the company; and finally
that organization of responsibilities which can maximize
the management and administration of the business
objectives.

Edward and the department's future were intimately

involved with the new President and Edward was excited as he said:

 

A. _ _J‘

[1
to the
get t2
of the
assure
consul
our ol
screer
prove:
he set
proved
trolle
Presio

here
(forms
suited
execut
right
haPPGn
organ:
manag;

58

[E-S] I remember the day the new President went
to the Board. He threatened he'd quit if he didn’t
get the organization we proposed. He had presold some
of them privately. The Board accepted the plan. To
assure acceptance of the plan, I suggested we employ a
consultant to run a parallel study (without telling them
our objectives). I interviewed the consultants and
screened them--suggesting one which the president ap-
'proved. I suggested a ”Fundamental Change Committee"
be set up to review the suggestions. The President ap-
proved and I was made chairman. It included the Con-
troller, the Vice-President of Marketing, the Vice-
President of Research, and two others. By this time,
there was a new Vice President of Industrial Relations
(former Vice President of Research) and he was con-
sulted. This Committee also helped identify potential
executives for the new organization. We were given the
right to move people, and remove people (this had never
happened before). Functions were dropped. This whole
organization change was to support our philosophy of
managing.

At other times during the interview, Edward returned

to his mission and objectives at present and in the future:

[E-6] Our objectives are that all people at all
levels will help to manage, to solve their own prob-
lems, do their own training. Another objective is a
better grade of employee. Organization structure is an
essential part of my philosophy of management. If you
give an old structure to a new leader, he must destroy
it. He must use the structure to organize. We can give
them a better work force, better training, superior
technology to a new structure, better work environment
--all to better manage the business. So we try to get
these objectives by putting together all of our tools to
get the job done. On the organization side, we are
concerned with studies to determine the best relation-
ships. We run the seminars trying to make better deci-
sion makers of our managers--the apex cases of Kepner
help us on these. . . Then there is the problem of people.
We try to change people to fit our organization needs.

Conf;
found, with '
ad others if
hunan approai
to work with
He also had j
process of no
cal approach.
and some of t
lkear progra
irplementing

work environ."

ZE-7;
He needs
more mear_
Committed
(Without
PriOr to
Plant had
they are
The Plant
this time

Ehdic

 

59

Confirmation of the mission and approaches used was
found, with varying emphasis, among the department members
and others in the firm. Esmund was chiefly involved in the
human approaches by use of seminars. He made frequent trips
to work with salesmen and other Extram employees in the field.
He also had just returned from an IBM seminar and was in the
process of making suggestions for the use of the technologi-
cal approach, by use of better information flow for decisions
and some of the newer decision-making techniques, such as
linear programming. Endicott was spending most of his time
implementing the change in organization structure and the

work environment. He stated his function as follows:

[E-7] I am the conscience of the plant manager.
He needs prodding to make organization and management
more meaningful. For although he is intellectually
committed, in actuality he tries to be a personal leader
(without objectives). His people are happier now.
Prior to our organization studies and development, this
plant had the lowest ranking. Now, with objectives,
they are not as discouraged and are making progress.
The plant manager was too oriented ”to this problem at
this time."

Endicott had prepared some tools to implement his
Plans. They consisted of planning sheets for meetings to
set objectives for the plant all the way down to the team
level and by this level. Each of these had organization

aspects. It was a part of the integrated approach of

grganization

hotan resourc
survey to st;
net and seek

tools, the ma

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cerned with 5

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6O

organization plus management of resources, especially the
human resources. The department provided tools such as a
survey to stimulate thinking about organization and manage-
ment and seek ideas from the human resources. By use of these
tools, the managers and employees were encouraged to be con—

cerned with such questions as:

[E-8] What five things can the individual manager
do, working on his own, to create an over-all climate
conducive to innovation? . . .

What does the phrase ”management by objective” mean
to you? In what specific ways might this have impact
upon: profit, organization, appraisal, participative
management, control and results? . . .

Corporate Policy assumes that the same rules are
equitable and fair for all employees in a company. In
what ways might a specific Corporate Policy be more ef-
fective if it allowed for social and cultural, work or
value differences among the employees? . . .

Policy is said to be both written and unwritten.
The ethical or moral intent by which a company or any
portion thereof will be managed is infrequently written
as policy. In your judgment, what should the key ethi-
cal or moral values of "the company" be? . . .

By what means would you, as a manager, determine the
need for a "program" to implement a chosen course of
action? Who would you have Spell it out? . . .

"Systems and procedures may be used to audit control,
but should not in themselves be a control mechanism."
Do you agree--or disagree? Why? . . .

In what ways might--or should--the budget or account-
ing system determine how a company is organized? Why? . .

To w?
managemez-
standards
Why? . .

"More
emphasiz;
what, how
what exte

 

 

tiVE? Is
Which

have vest
19§€d aut
“:71"? To

structure

How? ,

61

To what degree should a manager rely upon non-
management employees to participate in setting cost
standards, quality standards, standard methods?
Why? . . .

“More recent attempts to define jobs have been
emphasizing only the ”results expected" in terms of
what, how much and when." Why is this happening? To
‘what extent do you believe it is more or less effec-
tive? Is it feasible? . .

Which central or corporate (staff) functions should
have vested authority over lines, if any? Why? Privi-
leged authority and why? Authority of knowledge and
why? To what extent should the corporate organization
structure be changed to differentiate these authorities?
How? . . .

It is thought that the principles of organized re-
lationships are not conducive to good inter-personal
relationships. What are some specific examples? How
might these be made more compatible? . . .

What would you list as the necessary functions em-
ployed to supply and maintain the ”people” resources?
HOW'Well do you think the company is doing in each?
What major changes would you make, if any? . . .

To what extent do you believe that participation in
management decision making is motivating to the non-
management employee or to employees in lower management
echelons? Why? To the degree that you think it effec-
tive, how could it best be accomplished? . . .

It is said that "successful decentralization of
authority is dependent upon effective centralized con-
trol.” What does this mean to the individual manager?
To a corporation? . . .

Endicott was involved in the process of reorganization
and reorientation of the managers as a participant observer.

He helped the manager plan the meetings, attended planning or

organizing IT:
of reorganiz;

Finai
Relations an:

mission when

{Ia-9;
to do sort
their for
oriented
Thus we w
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the corp:
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any compel
to set t‘r.
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The I:

rent at EXtra

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62

organizing meetings, and served as a catalyst in this process
of reorganizing the firm's largest plant.

Finally, Einstein, the Vice President of Industrial
Relations and Edward's superior, confirmed the department's

mission when he said:

[E-9] The mission of organization development is
to do something about the way people in Extram marshall
their forces to solve problems. The employees are too
oriented to the present and our results were not good.
Thus we wanted to reorganize and to change the orienta-
tion of the people we had here at Extram toxwork toward
the corporate goals. For there is a limited supply of
good managers and they are the critical resource of
any company. So we have set out, within the department,
to get the right organization and right people, or to
change them, to get this company moving again.

The mssion of the department of organization develop-
ment at Extram is grand strategy. First of all, the focus
is the corporation. [E-4] "So we set some objectives that
‘we would try to help the corporation achieve . . .” [E-S]
r<alates the creation of a Fundamental Change Committee for
tine corporation. [E—6] ". . . All people at all levels will
help to manage . . ." In [E-9], the superior of the depart-
ment clearly states that the department is concerned with af-
fecting the policies of the corporation.

Secondly, the department utilizes all three approaches

t0 organization problems. The structural approach is discussed

in several pl

 

Levels that
sound Princi;
sponsibilitia
structure is
:ent. . ."
tural. :3-3;
develop self—l
- . a capa':
are that 311

try to Chance

 

 

 

63

in several places. [E-4] "An organization of jobs and
levels that . . . an organization structure which reflects
sound Principles of Organization . . . organization of re-
sponsibilities which can . . ." [E-6] ". . . organization
structure is an essential part of my philosophy of manage—
ment. . .” The human approach is integrated with the struc-
tural. [E-3] ". . . Does our organization structure help us
develop self-starting managers . . ." [E-4] ". . . objectives
. . a capable manager . . ." [E-6] ". . . Our objectives
are that all people at all levels will help manage. . . We
try to change people to fit our organization needs . . ”
[E-7] ". . . although he is intellectually committed, . . .
he tries to be a personal leader . . ." [E-9] ". . . to
change the orientation of the people we had . . . to get the
right people, or to change them . . ."
Finally, the technological approach was beginning to
bee used as evidenced by Esmund's plans. This department con-
trasts sharply with Remco's unit focusamuistructural approach

and with Assemblers' sole reliance on the structural approach.

It resembles Coman's much more closely.

 

 

tion prob-lens

EM-l}
hundred y
with strcj
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jUStify t
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our majOr
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Matthe

First c

 

64

Manfex

The Director of Organization Development at Manfex
is Matthew. The Director first gave a history of organiza-
tion problems at Manfex.

[M-l] Manfex has been in the business almost one
hundred years. In 1929-30, we were a holding company
with strong autonomous divisions. We were caught with
a big inventory. The directors created a corporate
staff other than legal and financial. The company
grew. There were many rivalries between divisions
and between corporate staffs and division staffs. You
can't imagine how it got out of hand. Each division
was doing its own research in secret. There was no
coordination and much duplication of products, func-
tions. And all of this was because of the secrecy and
rivalry. The staffs all jumped on the latest fads to
justify their existence. Part of this developed because
we had completely decentralized by 1951. And it was
seen as a panacea to our problems. At corporate level,
there were few controls to parallel the decentralization.

By 1957, the President saw real problems in terms
of control. He felt that this was the cause of lack of
growth and profits. We had slipped from number one in
our major line to number two and by 1957 we were number
three. The President felt that in our company, units
do not organize themselves out of business. They cannot
objectively make decisions affecting theor own existence.

So the President hired a consultant and brought back
a retired Vice-President. They suggested a reorganiza-
tion and the creation of a department of organization
development to handle prdblems of organization in the
future. I had been doing manpower planning and was
selected to be the new department head.

Matthew stated the mission of the department several
ways. First of all, he quoted the statement the new President

made to him in 1960:

 

ml

r. i.
O t

Euhu~

nuJ fix

 

65

[M-2] This company was first in the business,
then second, and now third. We're known as old and
conservative and not as a growth company. Look,
Matthew, I can run the shop or put us back in first
place. It'll take big changes, but let's go. What
you cangdgqis help me reorganize this company and get
the right people in the right spots. The kinds of
changes and functions that must be performed are too
important to be done on a davrto-dav basis. It needs
a higher_gggree of continuity and we must;beqin plan-
ning for a longer period of time.(Emphasis mine) This
will not be a job that will win you any popularity
contests, but it will help us to improve the company's
position.

 

 

Later on, Matthew described his mission and gave some

illustrations of his work.

[M—3] I am charged with deliberate changes in the
organization structure which will benefit the corpora-
tion as a whole. If a unit doesn't fit our pattern of
getting the job done, we make interim moves to bridge
the gap. For example, an earlier President felt that
advertising was a function we needed centralized. We
had a thirty-two man staff, yet the divisions all hired
their agencies . . . I tried to get the divisions to
use central advertising or move corporate advertising's
people to the divisions. The corporate people refused
to go to the divisions so I abolished corporate adver-
tising . . . In a way, my purpose is the planning of
organization structure changes and people changes. I am
the boss's dreamer. He asked me how we should reorgan-
ize the international aspects of the corporation. He
can't go to the current people. They just justify them-
selves and present positions and resist change to the
point of desperation. I begin with a function—~to see
what the best fit is for the objectives of the business.
And then I move the people. I may take fifteen cracks
at the job. And then I put the people in it. I check
the salary and other benefits at the same time. Really,
I'm involved with developing the careers of top manage-
ment. As I see it, there are these elements to organi-
zation planning: the function to be performed, the

 

t.‘
;.CH

66

people available, the timing of the move, the climate
he's moving into, and the state of the business at the
time. In an older company such as ours, if we've done
anything one way for more than five years, we need a
change. You need an outsider such as me to make
changes, not the involved personnel, for they will
protect themselves.

Matthew had developed a philosophy of the organiza-

tion function that influenced how he performed his mission.

[M-4]There isrr>one best way of organizing because
there is no one best way to manage. I deliberately
back up a hard nosed boss with a more democratic man,
or vice versa, because the hard nose may keep costs in
line, but crush all the guys with ideas too. What I
must do is pick the best man for the job and put him
in it. In an older company, getting change is a prob—
lem. One way I see of getting these changes is to
build complementary structures. If the top man in a
division is a manufacturing man, then the next man should
be marketing and so on. If not, the organization be-
comes run by one function on the basis of friendship
and we'll still do things the way we always did.
Sometimes, line executives try to prevent my creation
of complementary structures or arrangement of men. For
example, I recently selected a man to head a division.
He's a shirt sleeve operator and he had the division
shaped up in a hurry. The people below him like him but
he's not accepted at headquarters. I arranged for him
to take sensitivity training, and tried to improve his
working with people. In fact, that still is a key part
of my job. We use sensitivity training and all kinds of
group methods to attempt to make our executives more
aware of other people's contributions. We even try to
change some of the ideas some of our executives have
about people in general and this company. With some, it
works. One executive told me it was degrading to go
through it but is happy he had it now. Some very sensi-
tive ones, I don't ask to take it. It may be a
threatening experience to them.

T.

67

Later, Matthew summarized his objectives, mission,

and philosophy as follows:

[M-6] If I had to summarize my beliefs and what
I'm supposed to do around here, I'd say:

(1) Growth comes from change of methods and people.
If we've used a method or an executive for five years,
we need a change . . .

(2) There is no such thing as an ideal organization
structure. Look for the best combination of functions
and men to get the job done and this results from the
dynamic interaction of functions, people, timing, cli-
mate, and state of business.

(3) There is no such thing as.§ good man or type of
man for Manfex. Promote the best man even if he is an
odd-ball and try to change some others so they can be
promotable.

(4) We train effective managers and get the changes
we need by complementary placement in the structure,
e.g. always give a marketing-oriented general manager
an assistant with different training.

(5) We place men and promote men to the Presidency
and change the structure to meet our greatest functional
need for the future.

(6) So what I do is help the President plan his
needs for the future. I help him organize the corpora-
tion effectively, and help control the growth of our
company. I help provide him with the right people for
the job. I place them in right relationships so they
can work together and get the job done. I even try to
change some people so that they will be happier here
and we can get the job done.

Confirmation of the mission statement was found in
the minutes of the Board of Directors meetings. Each year,
at this particular firm, the Board holds a ritual in which the

chief officer of a department or division is formally invested

 

_l‘ \-

size

Stdllé

«v 1'
VI. 4
of the

68

with his authority and given a mission for the year. The
title of director of management development was used up to
1960 for Matthew; The scope of its mission seemed to empha-
size training and development. Then, in 1960, with the in-
stallation of the new President, Matthew was listed as Direc-
tor of the Department of Organization Planning. The mission

of the department was listed in these minutes as follows:

[M-7] 1. To create a sound plan of organization
for the corporation;

2. To give the corporation farsighted plan-
ning for and clarification of the corporate
objectives;

3. To give the corporation effective means of
control over the organization.

Then each year a fourth "project" type responsibility
was given them. For example:
4. To clarify the complicated relationships

between staff and line departments in the
corporation.

The department at Manfex has a grand strategy mission.
Its focus of activity is the corporation. This is clear from
the creation described in [M-l], the President's statement
[Mrz] ". . . help reorganize this company." It also is clear
in Matthew's statements of mission: [M-3] "I am charged

'with deliberate changes . . . that will benefit the

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69

corporation . . ." It is clear in all of his statements.

In Chapter III, it will be shown that Matthew does not even
work at the unit level as Remco does. Secondly, Matthew
used both structural and human approaches to problems of or-
ganization. The structural emphasis is evident from the
following statements: [M-3] "I am charged with deliberate
changes in the organization structure . . ." and the change
Matthew made with the advertising department. His approach
of beginning with functions and later matching people to them
shows the structural approach as well.

There was no evidence of the use of the technological
approach, although Matthew spoke vaguely of adding it to his
department soon. But the human approach was quite evidently
integrated with the structural. [M-3] ". . . In a way, my
purpose is planning of organization structure changes and
people changes . . ." His description [M-S] of attempts to
change the division Vice-President so that he would be more
"acceptable" was another example. [M-S] ”. . . In fact,
that [changing of people] is a key part of my job. We use
sensitivity training. . . to attempt to make our executives
aware . . . try to change some of the ideas of our executives
about people . . ." Since the focus is corporate and the

approaches multiple, Manfex has a grand strategy mission.

_L- ertz-w. v —..- _r

‘ 'V .i
He‘n'EL

.
oegar

70

Outlet

The Director of the Department of Organization
Development at Outlet is Otto. The background of the firm's

department was stated by him as follows:

[0-1] Outlet is a firm that had had profitable
and dynamic growth in the 1930's. More than two-
thirds of our stores were added during that period.
The third President concentrated on stabilizing our
position. But we stabilized into a relative decline in
profit and growth. By the mid-forty's, Outlet knew it
was in trouble and the executive group began to analyze
its future. In early 1958, the year the third Presi—
dent was to retire, Outlet brought in the management
consulting firm that I was working for. We recommended
the setting up of a function called "Planning and
Research"--emphasizing marketing and organization
problems. They set up an organization committee con-
sisting of the then Board Chairman, Executive Vice-
President, Vice-President of Finance. This function was
put under the Vice-President of Finance. Well, I had
known the about-to-be Chairman when he had consulted
‘with the government and when I was at the consulting
firm. I took a job as assistant to him and helped set
up this planning function. The Vice-President of
Finance was moving up and I suggested we split the func-
tion into Organization Development and Marketing. They
agreed and I took over the Organization part in 1959.

Otto described the evolution of the organization
function since then. The mission of the department is also

given at this time.

[0-2] In the beginning, I reported to the Vice-
President of Finance. He was just the right kind of
executive to report to for this function. He let us
alone. But there were others who were not so cordial.
For example, the accounting department felt we were

w

CCCI

Ch ‘I‘ I‘

I! a

Q»

71

just extra expense. So we had to be accepted without
becoming a political football. I staffed with con-
sultant-type guys, who took the selfless and broad view
of the company. At the beginning, we undertook regular
organization studies. For example, in our first study,
we centralized a function and showed a saving of
$1,000,000. After we established ourselves, we could
take on our real function. This is to be an inside
consultant who thinks about the company the way a man-
agement consultant does. You cannot approach the function
the way Personnel was trying to do. You see, for quite
some time, Personnel had had an organization planning
department for the store level, concerned with manpower
analysis. Whenever they needed an organization study of
the whole store, they brought in a consultant. The

store level organization planning unit is still active.

I knew what this function could do, but the company
didn't . . . We're here to support the company as a
whole, involved in long range and market planning.
Organization development's mission is to picture the
company as it is today and where it will be five years
from now so as to help plan the period in between. We
perform organization studies to help in this area. Our
funcdon is also the planning of people as well as organi-
zation planning. We are concerned with development of
executives and succession. &>in a way we have become
involved in executive development, partially because
Personnel did not involve itself in this function. For
one thing, we think differently. We're not so embroiled
in the political swim as Personnel is. We're willing to
take a position, take our lumps if necessary and fight it
out. In one case regarding an executive move, the Presi-
dent saw it one way. The Chairman another. I helped to
get the difference out in the open, see the different
opinions and settle it. We can be "yes men" and dead or
courageous and get the job done. We must get people to
see each other's ideas and respect them so that they

can get along. An important part of our objectives is
that of being concerned with change in the organization,
in terms of policy, organization planning, and people.

At another point in the interview, Otto returned to

the subject of the mission:

b'v-s'

its
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lt}'

Inn
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n

of

our
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72

[0-3] My function is to be a devil's advocate, a
man thinking about problems the company is not covering
or handling poorly. Management needs someone to remind
them of functions it has overlooked. It needs a cata—
lyst to bring problems up. That is what organization
development does . . .

A very important objective for us is to realize that
this company has certain values which are important to
its success. Suppliers and customers know that we are
very ethical and that our own'brand items are top qual-
ity, that this company has always taken care of its
employees in a very moral way. We are then conscious
of the possible implications of each new policy proposed
or change suggested in terms of: what will this do to
our principles, the things Outlet has stood for. Some-
one in the organization must be on the lookout for these
things and it is an important objective of our work.

This department pursues a grand strategy mission.

First of all, the focus of attention of the Department at

Outlet is the corporate level. Otto says [0-2] ". . . We're
here to support the company as a whole . . . to picture the

company as it will be five years from now . . ." [0-3]
". . . a man thinking about the problems the company is not
covering . . . The company has certain values needing protec-
tion . . ." Secondly, the department utilized all three ap-
proaches. The structural approach is evident in Otto's dis-
cussion of organization studies [0-2] and formal policy

analysis [0-2]. The human approach is evident in Otto's

statements of ". . . planning of people [0-2] and developing

the exe
in fo-a

way we

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73

the executives [0-2]. The technological approach is mentioned
in [0-3] ". . . problems like: are we making decisions in the

way we ought to?"
Thus, since Outlet focused at the corporate level and
utilized all three approaches, it can be said that the depart—

ment is pursuing a grand strategy mission.

Tractem

The Director of the Department of Organization Develop-
ment at Tractem is Thomas. He described the history of the

function at Tractem.

[T-l] After I had been at Tractem for several
years in the Personnel Department, the present Presi- .
dent and I proposed a study of our corporate structurei.
The President and Board Chairman reviewed our study '
and approved it. Our recommendation included the
creation of the department. In 1956, when Mr.

(the present President) was the director, the depart-
ment was engaged primarily in large scale structural
changes necessitated by the retirement of the Board
Chairman. He had run the company for so many years
that all the decisions had been set for quite some
time. When an era passes, major changes must take place.
We began changes in structure and personnel then.

These were to continue through several interim presi-
dents until he became President. Really, we've contin-
ued them since then, but most of the major changes took
place with some large scale retirements and structural
changes the first few years.

The mission of the department was stated by Thomas

as follows:

74

[T-2] One reason I came to Tractem was its long
history of interest in and human attitude toward its
employees. Tractem, from the beginning, had been aware
of its responsibilities to develop its people in all
functions. Our department sees to it that this tradi-
tion will not be violated by short term decisions. This
approach has meant too much to Tractem to let it be
easily changed. So, one duty is to make sure that, in
organization changes, or personnel changes, the dignity
of the human is respected as our founder wanted it to
be. Another function we perform takes place when a di-
vision or department needs to plan its objectives or its
organization. It is our function to provide the occa-
sion and the place (he pointed to his conference room)
away from the press of their duties to clarify where they
are going, why, with what people and which type of or-
ganization. The managers must sit down together in a
permissive atmosphere and clear up their plans and or-
ganization problems. The executives must realize that
their functions and departments are interrelated. And
thus they will overlap, but they need each other's
functions. So we bring them here and stimulate them
to think through these problems. We can't really solve
their problems. We can point the direction perhaps,
but that's all. The main function of this department is
to create the conditions to effectively weld the people
and the organization so that Tractem can continue to
prospEr and the people who make up Tractem can feel
stimulated and satisfied working here.

Thomas repeatedly discussed his personal philosophy
of organization. It appeared to influence the performance

of the function at Tractem. As Thomas stated it:

[T~3] From my college days, my mission in life has
been clear. I saw early in the game that you need
human relations to get along. But personnel and human
relations activities were not popular. I met so many
guys in it that were crushed by the accountants and
production engineers who were riding high. And personnel
was loaded with meaningless duties and forms. I risked

 

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75

my job a number of times to get my ideas across and
proved that it worked. My responsibility areas had

the highest safety and productivity records when the
human relationships were good. I was also very much
influenced by Mason Haire, Rensis Likert, and Douglas
McGregor at the Aspen Conference in 1958, and we re-
doubled our effort to do our job. In each of my jobs
over the years, it's always the same theme: how can we
make the organization structure and people work to-
gether to get the job done? How do we get the talent
and capabilities selected, developed and accepting
change? We must blend the structure and people together
to achieve the objectives of the business.

An examination of the corporate policies about or-
ganization development confirmed the mission at Tractem.

The policies said:

[T-4] The objectives of the department of organiza-
tion development are as follows:

(1) Organization development will be concerned with
implementing the best organization for Tractem.

(2) The department can implement # (l) by having ade-
quate organization controls, in the forms of
organization charts, manuals, cost comparisons,
and files. These will specify the nature of re-
sponsibility and authority of each level, and
how various departments of the organization are
related.

(3) The department can implement # (l) by being con-
cerned with management organization: creating
policies relating to management's definition of
positions and working relationships: helping
management with long range organization studies
on organization problems submitted by customers,
licenses, or divisions; and insure maximum col-
laboration of all functions and services which
can contribute to the solution of the problem.

 

 

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76

(4) The department can implement # (l) by creating
a managerial resource program to insure manager-
ial replacement, and development, promote inter-
function and inter-division assignments.

(5) Collaborate with Personnel Relations to see that
their recruiting efforts parallel the needs of
the company: create development programs for the
individuals such that they are prepared for
future management assignments.

This department pursues a grand strategy mission.
Its focus is the corporation. [T-l] discusses the meeting
with top management to create the department. It also dis-
cusses corporate structural changes. [T-2] discusses the
presentation of corporate values in organization changes.
The Policy Manuel indicated [T-4) that the department serves
the whole corporation.

Secondly, the department utilizes both structural
and human approaches. In [T-l], [T-2], and [T-4], the two
approaches are always linked to the Solution of organization

problems.

Comparisons of the Missions of the Departments

Hypothesis 1 and the corollaries presented three
mission models. As is true with most models, the character-
istics describe ideal types. Remco, Assembler, Extram, and

Outlet seem to fit the categories rather closely. Manfex,

an

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77

Coman, and Tractem, by not emphasizing the technological
approach, are less than perfect models of grand strategy,
but more than strategy missions. Perhaps, the missions can

be viewed as part of two continua of the two requirements.

Focus of Attention

Corporate Unit
Coman
Extram
Marfex

I Outlet Remco l
Tractem I
Assembler

Mission: Grand Tactics
Strategy
and
Strategy

Approaches Used

 

 

 

 

 

Structural Structural Structural
Burner; .Hilmae _20nl
Technological Marfex
Extram Coman Remco
Outlet Tractem Assembler|
Grand Strategy
Strategy Tactics

Since Coman, Manfex, and Tractem more closely approxi-
mate the grand strategy than any other, they shall be so

Classified.

 

 

 

 

 

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78

Finally, what bearing, if any, has the mission
statements and evolution, on the degree of effectiveness pre-
dicted in Hypothesis II? These provide clues to future chap-
ters when the activities, interaction, influence and accom-
plishments are described.

At Remco, the department had a tactical mission. It
apparently did not consider expanding the mission to strategy
or had not been successful in doing so. In any case, his
mission still was the original one and, as will be seen later,
he had little or no influence on the firm's policies. In
fact, Ronald was leaving the firm.

Arnold and his department at Assembler had not
changed the mission. They had not even attempted to change
it informally, by linking their efforts with those of the de-
partments utilizing the human and technological approaches. AS
a result,the department had not been given broader responsi-
bilities and in fact, had lost its interaction and influence
with the President (See Chapters IV and V).

So in a negative sense, when the department did not
‘use the human or technological approaches, it did not expand
its area of responsibility and thus potential influence.

On the other hand, Edward took the two separate func-

tions of organization planning and management development and

 

 

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joined them to form an integrated approach to organization
development. It was now able to attract the attention of

top management. Thus, Edward and his department were soon
involved in the change of organization structure and work en-
vironment. The addition of the human and technological to

the structural approaches changed a function which was per-
forming almost meaningless and certainly uninfluential acti-
vities to one of significant potential to influence management
policies.

Charles took a set of uninfluential personnel activi-
ties and transformed them into a total philosophy of organi-
zation development. He effectively joined the structural and
human approaches. It was not long before he was reorganizing
the office of the President itself (see Chapter 5).

Matthew added structural approach to the human and
soon was dictating to line Vice—Presidents the structure and
environment they would use.

Otto began with structural studies and added human
and technological approaches. He increased his degree of in-
teraction with the Chairman to direct reporting relationship
and soon was deciding questions that affected allocation of

resources, creativity, and company decision making methods.

 

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80

Thomas began with the human approaches and added the
structural. Soon he too was reporting (informally) to the
President and affecting the organization structure and en-
vironment of the firm.

Therefore, the statements of history and evolution
of mission give indications that the closer a department ap-
proximates the grand strategy mission, the more effective it
is. But later chapters of this thesis will discuss this at
greater length.

This chapter has presented the statements of mission
of each of the departments. On the basis of these statements,
the departments were classified as pursuing grand strategy,
strategy or tactical missions. Chapter III will present the
data about activity patterns of the departments. This will
present an opportunity for further examination of the

hypotheses.

‘bgh’fi

CHAPTER III

THE ACTIVITIES PERFORMED BY DEPARTMENTS

OF ORGANIZATION DEVELOPMENT

This chapter presents the data on the activities
performed by the departments of organization studied. It
will present the data from observations, documents, and
interviews that concern the activities performed. The in-
terview data for this section was derived primarily from
the responses to the following questions of the interview
schedules:

Schedule 1: 5(D); 9(B); 12; 13; l ; l ; l ; l ; 19;

Schedule 2: A; E(l);

Schedule 3: AA; DD; 51

Corollary 1 of Hypothesis I posited that a depart-
ment with a grand strategy mission would perform structural,
technological, and human activities. It also predicted that
only structural activities would be performed by tactical

and strategic mission departments. From the literature on

 

51These schedules are contained in Appendix B.

81

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organization departments, a list of the most probable
activities was prepared. These activities were classified
as structural, technological, and human. They were coded for
52
ease of reference.
Chapter III then will contain the data on the activi-
ties, a summary of the activities most frequently performed,

and a comparison of the activities of each department to the

conditions hypothesized in Corollary 1.

Data on The Activities Performed by Departments

of Organization Development

Remco

In Chapter II, Remco was classified as pursuing a
tactical mission. In his earlier statements, Ronald described
smne activities he performed. In [R-l], Ronald presented
exatnples of organization charts he had made of the plants.

He also had described several structural activities he per-
formed. Later, he described his activities in more detail.
But he first placed the activities in perspective.

52A list of the coded activities is given in

Appendix C.

 

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83

[R-3] Remco’s biggest problem has been that, prior
to a few years ago, it had no control over activities
at the plant level. The President created a corporate
staff for this purpose and to generate new ideas for
the company. The trouble is, we were a line company so
long that many executives don't use the staff. After I
arrived, the President continued to make many acquisi-
tions. In fact, that's where the growth was coming
from. He decided which personnel of the older companies
Remco would keep. Well, my job has been to do organi-
zation studies of the plants of our firm. Generally,
these studies have been two-to three-day reviews of
the organization structure and efficiency of the plants
we acquired and longer studies of our main product
plants. . .

But later he described his activities Specifically.

[R-4] When I make these short studies, my emphasis
varies. For example, after I looked at division,
I suggested that we consolidate their facilities into
one plant. Later, I was called back; they had been
functionally organized for two to three years. So I
suggested they increase the marketing and research and
development sections. They are beginning to set up
line regional managers as I suggested because their
present organization had overlapping coverage. I rec-
ommended that they have only one department of adver-
tising to cut the overlap in this area. . .

The problem is not always that there is costly over-
lap. At plant, they were over-specialized--
too much functionalization in the processes and layout. .

Ronald was asked for a typical example of his work.

Hetflescribed it as follows:

[R—S] Recently, I was requested to do a study of
the plant because it was not profitable.
I went there (Ronald starts talking from the organiza-

tion charts he had shown earlier) and performed studies
I

 

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76 NET.

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84

of each position and job in the plant--the job, and an
evaluation of span afcontrol, grouping of work, time and
motion study, and all the normal organization analyses.
Well, the results were that I reduced the staff from
173 to 135. . .

Look at these charts. Notice that the products are
now numbered for easy reference.‘ Notice that I am not
limited to one method of structuring. I used product
organization for 460, 366, 271, Artisan Machine, Low
Volume Span, and Low'Volume Machines. Still there was

need for a process department for there were efficien-
cies in this approach, so I used it.

In the process of his descriptions of his activities,
he mentioned or implied that he performed the following
activities:

SI-l Write job descriptions;
SI—2 Perform job evaluation;
*

SI~3 Develop position and organization controls;

SI~5 Study the allocation of authority and responsi-
bility to executives:

SD-l Help write and analyze goals and objectives of the
unit;

SD-2 Draw exact and up-to-date organization charts;
SD-3 Analyze units for logical grouping of jobs;

SD-4 Analyze physical workflow to determine more effi-
cient organization;

SD-6 Perform work simplification measurement studies.

 

* Items designated by this symbol were emphasized
frequently.

85

Remco's department has a tactical mission. It
performs only structural activities and at the unit level.

This confirms our classification of Chapter II.

Assembler

At Assembler, the statements in Chapter II already
disclosed the focus of the activity as corporate. The spe-

cific division of labor was described by Arnold as:

[A-S] In our day-to-day activities, each man has
line and staff activities assigned to him from the
divisions. We then work with the organization repre-
sentative at divisional level and he does the detailed
work.

Arnold has already given some indication of his
work. [A-2] ". . . we help them (executives) set up organi-

zation controls, delegation of authority, executive respon-

sibilities, proper decision levels. . ." [A-3] ". . . We
meet with top executives frequently to review . . . organiza-
tion plans . . . checking decisions. . . organization
changes . . . ."

The Corporate Policy Manuel [A-6] and Arthur [A-7]
disclosed some of the structural activities performed by the
department. Arnold and Arthur described these activities at
other times in the interview. Arnold kept returning to the

control and coordination function of his department.

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86

[A-9] I meet frequently with the Executive
Committee when they review and approve the plans of
the divisions, appraise and decide that the decision
areas are not reserved by a higher level of management,
and listen for new developments. Many of our assign-
ments are given to us by this committee, such as to
undertake organization studies of sets of divisions, or
corporate staff groups.

Some of our time is used to review all organization
changes of a significant nature. Many times we receive
requests for assistance and guidance from the divisions.

When top management is considering a plan, they ask
us for a report of the long run organization implica-
tions of this (projected size of the corporation, the
nature of the business, the number and types of skills
needed and its physical location).

again:

[A-lO] One of my biggest activities is to get top
management to sing like a choir, not as soloists. We
help them understand the interrelationships within the
company and want optimum efficiency. This can mean
five percent overlap but not much more. To expedite
this, there needs to be division-to-division checks
and balances and line and staff balances of authority.
We make sure (through reviews) that in their planning
process, such as the two-year, five-year plan of the
entire business, that this conflict does not arise.

As proposed plans go through the channels, each unit
(including ourselves) send along a statement of concur-
rence or alternative recommendations. This’is how

the alternative plans develop.

When Arnold was asked for a breakdown of his time

into activity groups, he replied:

[A-ll] About sixty percent of the time, I am at the
corporate level, doing corporate organization planning.
These are projects involving corporate management and

 

1‘).
(7'

87

structure, projections of corporate organization
growth and requirements and so on. Twenty-five percent
of the time I pursue my division responsibilities (on
their invitation or by my request). I serve as a com-
munication source from the corporate level to division.
Five percent of my time is used writing manuals and
directives at the corporate level and five percent on
internal education,such as speeches training in organi-
zation work. Finally, about five percent is in
departmental administration.

The activities described by Arnold were confirmed by a

list of the activities the department was responsible for

 

according to the Corporate Policy Manual:

[A-12]

(1) Establish organization policies for the corporation:

(2) Maintain corporate organization charts:

(3) Establish procedures for the formal planning
process of the corporation:

(4) Write policies for line and staff relationships,
delegation of authority and responsibility and
levels of authority in which decisions would be
made:

(5) Examine division manuals to maintain conformity
with corporate level:

(6) Establish and control uniform nomenclature of
position titles and acceptable organization
styles;

(7) Maintain corporate policy manual for each func-
tion and staff:

(8) Maintain corporate organization directory,
including job descriptions and reporting relation-
ships.

Arthur has no administrative duties to perform. His
description of activities describes clearly what activities

the department performs:

 

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to:

88

[A-13] Each member has a division or subsidiary as
a client and we work with our organization specialists
there. I do service work and maintain the corporate
organization manual and directory and check the position
titles. For example, I must check that above a certain
level, the right title is given so that it gives the
right information and refers to the proper status
level . . . I also perform three types of organization
studies: '

(1) Every four or five years, there is a major task ,
force study. The executives from the divisions work i
on the possibility of new structure. The last one
was in 1958. This year (1965), we reorganized the
engineering and manufacturing aspects of our business.

 

(2) Special Studies: In a division, an internal reorgani-
zation may be going on. The division management may
request our help or top management may request that
we study a division's effectiveness, or a particular
function throughout the corporation.

(3) Individual studies of departments.

The department of organization development at
Assembler performed the following activities: (emphasizing
those with asterisk).

SD—l Analyze goals and objectives of divisions.
SD—2 Draw exact and up-to-date organization charts.

SD—3 Analyze divisions to ascertain logical grouping of
jobs.

SF~1* Write corporate organization manuals and develop
procedures.

SF—2* Develop corporate policy manuals.

SF-3* Appraise organization titles and nomenclatures.

89

SF-4 Teach techniques of structural analysis.

SF-6 Propose structural reorganization.

SF-7 Develop the ideal organization plan.

SF-8* Review and approve all structural changes.

SF-10* Perform organization audits to assure compliance.

SF-13 Perform policy audits to assure compliance;

The activities of the department indicate that the
structural approach was being used by the department and at
the corporate level. This confirmed the classification of
this department (in Chapter II) as a strategic mission

department.

Coman

In Chapter II, Charles listed some of the activities

performed by his department.

[C-3] Conceptual and Consultative Assistance in:
Planning and Implementing Change; Building Effective
Teams; Resolving Organizational Conflicts; Applying
Motivational Knowledge; Linking Organizational Systems;
Minimizing Communication Obstacles; Operating Within
The Salary Program; Using Financial Incentives; Using
Objectives Constructively.

Direct Department Services: Exempt Salary Program;'
Corporate Organization Charts; Exempt Personnel Inven-
tory; Exempt Job Evaluation for the General Departments;
Executive Development and Training Information; Outside
Placement Consultation; Individual Relationship
Consultation.

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90

When asked about emphasis and importance of each

activity, Charles replied:

[C-S] To give you some idea of your emphases, I
want to show you this. (Shows author yearly budget)

Detailed budgets have been submitted in accordance

with instructions. The 1964-65 budget totaled

$269,700. This was reduced to $258,200 by depart-
mental action early in the year with actual expenditures
for 1965 now forecast at $250,000. Shown below is our
internal distribution of costs for 1965.

1965-66 Plan

Salaries
and
% Related Other
Time Costs Costs Total
Compensation
Services 25.0 $ 46,450 $18,250 $64,700
Exempt Personnel
Services 20.0 37,160 14,600 51,760
Organizational
Services 45.0 83,610 32,850 116,460

Research and
Development 10.0 18,580 .1.300 25,880
$100.0 $185,800 $73,000 $258,800

Later, Charles was asked how the department operated.

He described it as follows:

[C-6] Organization development works from a group
base with high individual responsibility. In general
organizational development work, each consultant is
responsible for developing his own clientele and for

91

calling on other members of the group for advice and
assistance as needed. In each of the more formal areas
of responsibility, such as salary administration,

exempt personnel inventory, organization chart main-
tenance, liaison with university executive development
programs and outside placement of displaced personnel,
prime accountability is assumed by one member of the
department. Each member is expected to become familiar
enough with all specialties to be useful as an assistant
to another member when needed.

The department uses itself as a laboratory for
methods of improving productivity in staff areas. A
case in point is the area of salary administration.

In 1959, this activity at the Corporate level required
the full-time services of three exempt people, a non-
exempt statistician and two stenographers. By 1963, a
more effective activity required the full-time services
of two exempt personnel and a secretary who doubled in
statistical work. With the transfer in September, 1964,
of Mr. to the Division, the acti-
vity now requires the fullntime services of one exempt
person and one secretary. This is not, however, just a
case of one or two people doing more and more work. For
example, during August, September and October, under the
department's concept of organizational effectiveness, an
intensive short-range program was undertaken to update
and improve the skills of all exempt members of the de—
partment in the specifics of salary administration in
order that the man with prime accountability, Mr.

could draw parttime help as needed from other members of
the group.

Finally, Charles discussed how they planned to im-
prove the performance of their activities in the next year.
This conveys some idea of the activities performed by the

department.

92

[C-7] We will, of course, continue our involvement
in current projects and be available for consultation,
assistance and service in the same areas as the past. See
[c-3]

Under certain conditions, we will assume the ini-
tiative for feedback on the operation of administrative
systems to those responsible for initiating or directing
them. Such feedback will be initiated only when:

a. The operation of the systems appears to be creat-
ing problems within the organization.

b. The feedback will not violate a confidential re-
lationship between members of the organization
development department and other persons.

c. The decision to feedwback will not violate a
specific consulting relationship between our-
selves and other organizations within Coman.

We don°t assume that the offering of such feedback
entitled the department to further involvement in the
problem or its solution.

Since the first of the year, the Exempt Salary
Program will have been in effect for three years. In
spite of the general satisfaction expressed to Chester,
in his survey of last year, some specific weaknesses
in the system are apparent. As early as possible we
will initiate discussions with the Salary Administrators,
the Operating Committees, the staff officers of the
Corporation and the President's Office aimed at re-
solving some of the known problems in the system. If
resolution can be achieved, a new and more comprehen-
sive set of guidelines will be issued.

We feel that our Exempt Personnel Inventory has
proved itself to be of significant value as an aid to
better use of the Corporation's key human resources.
Now, the new Corporate Manpower Committee has indicated
that if the costs are reasonable, the Committee will
recommend to the Group Vice—Presidents that the program
be installed throughout the Corporation. If the recom-
mendation is accepted, we will devote a maximum effort
to assisting the Divisions and Departments in completing
the installation of the system. We will also undertake
whatever training is needed in the writing of specifica-
tions for program retrieval.

 

93

The most important change of administrative systems
in Coman during 1965 was the realignment of the organi-
zation covered in the President's memorandum recently.
By late spring of this year, the new system should have
been in effect long enough to permit an initial assess-
ment of the change and its preliminary effects on the
organization. The department proposes that the Presi-
dent's Office consider a study of these effects to begin
sometime after the stockholders' meeting in April.

The emphasis at Coman has been to operate at the cor-
porate level and consult with any divisions that requested
its help. The department integrated the use of human and
structural approaches as was seen in Chapter II, Chapter III,
and in other statements by Charles. The activities emphasized
were: ('3Ir = most emphasized)

SD-2 Draw organization charts;

SD-3 Analyze departments for grouping of jobs;
SF-l Write corporate organization manuals;

SF-6 Propose structural reorganization:

SF-15 Prepare wage and salary policies:

HI-l Offer counseling to transferees:

HI-3 Train executives in human relations:

HI-4 Provide interpersonal value training:

HG-l Laboratory seminars for team development:
HG-2 Laboratory seminars for intergroup training;
HG-B Laboratory seminars for group goal setting:

HG-S Give training in interpersonal relations.

tne .

hara

 

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94

From this analysis of the activities performed by
the department at Coman, it appears that the structural and
human approaches were used and integrated in addressing or-
ganization problems from the corporate level. The department
used various services and activities to integrate structural
and human approaches and activities. This confirms the
classification of the department as pursuing a grand strategy

mission.

Extram

The data from Chapter II already has indicated some
of the activities performed at Extram. Edward described per-
forming structural organization studies [E-3, E-4]. Also
described was some human and technological activities, es-
pecially training in group and interpersonal seminars, and
computer applications to decision making. It is felt that
some further amplification of these data would be useful.

Edward summarized his activities and discussed how

his activities had varied in the last few years.

[E-lO] After the President decided to go ahead
with a reorganization, much of my time was taken up by
the major organization study of the firm. (Edward at
this point showed the author the seventy page report of
recommended structural, personnel, and environmental
changes he recommended and which were being implemented

95

at that time). Basically, we implemented this by
making everyone a manager. We trained everyone in
these skills and thereby reduced the number of hier-
archical levels and staff needed. In the process,
we put most of the staff at the divisions, including
one-half of my own staff.

My emphasis has varied with the needs of the situation.
When I was first in this department, the then President
preferred to make organization changes at the top, so
our emphasis was management development and organization
studies at the middle and lower management. When he re-
tired, the organization structure needed so much atten-
tion that I spent one hundred percent of my time on
organization studies and liaison with the Management
Consultants. Then I spent most of the time on the man-
agement seminars. This phase is about over. Our biggest
emphasis now will be consultation to implement the
change—wwe will apply what we have taught. We will not
let organization studies go dormant. We get as many re-
quests for organization studies as we do for management
development work. It is all part of the total manage-
ment process. We may add career development to our
functions.

We know, from our experience, that the new managing
and organization knowledges can be taught in relatively
brief seminar periods. We also know (to our regret) that
it takes infinitely longer for the line manager to apply
the knowledge he learns in the seminar opportunity.
Therefore, I predict that we will spend infinitely more
time in "helping managers to manage" than have spent in
conducting the learning opportunities.

Statements from department members give further con-
firmation of the activities at Extram. Edwina, for example,

said:

[E-ll] My activities have concentrated on manage-
ment audits, organization studies, and giving seminars
on management. My emphasis varies. At present, I am

 

iffid a:

96

spending thirty percent of my time on organization
studies and seventy percent on the time in management
seminars. In fiscal 1965, I did mostly teaching
(--say fifty percent). I spent twenty-five percent
on organization studies, ten percent in consulting
with the divisions, the rest in research. Next year,
the emphasis will be on consultation so that we can
implement what we have taught.

We ought to distinguish the emphasis of Edward from
the rest of us. The last two years, he spent almost the
whole year with the President and the consulting firm
to reorganize the company. He has since spent much of
his time auditing this practice and little time in semi-
nars. That's why Edmund and Endicott were brought in,
to do much of the routine work. Edward too will now
emphasize consulting and research.

Several of Edwina's organization studies were exam-
ined and she integrated the structural and human approaches.
Esmund described his activities as follows:

[E-lZ] This year I have spent seventy-five percent
of my time running seminars in order to train our man-
agers in the philosophy of organization and management
we have been using. The rest of the time was spent in
organization studies. Next year, I expect more emphasis
on consulting with our clients to help implement the
organization change we just made.

And Endicott said:

[E‘13] I have been spending all of my time consult-
ing with the plant manager of the largest plant for the
firm. I live with the plant manager, attend his meet-
ings, help make up the superintendent's objectives to
implement the change. I issue newsletters to the men
outlining agenda for specific group planning in the areas
of service, quality, and cost targets. The resource ob-
jectives in terms of manpower and materials are also in
this outline tied in with organization change suggestions.

 

‘1“.

97

Each manager and employee has some part in one of these
meetings and a place is created for him to contribute.
Finally, the objectives chosen are recorded on a form
and circulated for comment.

The department submits a report of the number of
work days it spent for each division. The divisions

were billed for this. This also enabled the department
to get a good estimate of the emphasis of its activities.

This was examined and it confirmed the statements
given. The data presented here and other statements indi-
cate that the activities performed and emphasized (*) at
Extram were:

SD-l Analyze goals and objectives of divisions;
SD-2 Drawing organization charts;

SF-l Writing corporate organization manuals;
SF-2 Develop corporate policy manuals;

SF-4 Teaching techniques of structural analysis;
SF~8 Review and approve organization changes;
SF-14 Prepare executive replacement policies;

SF-lS Prepare selective merit rating and wage and salary
policies for executives;

TA Analyze and improve organization information system;
TB Training executives in use of better decision tools;
HI-l Individual counseling for transferees;

HI-3 Train executives in human relations:

HG-l Laboratory seminars for team development;

98

*
HG-Z Laboratory seminars for intergroup training;
*
HG-3 Laboratory training for goal setting;
*
HG-4 Group meetings to stimulate organization change;

*
HG-S Other interpersonal relations training.

The activities performed reinforced the conclusion
of Chapter II that Extram was utilizing the structural, hu-
man, and technological approaches at corporate and other
levels. Thus, again, it appears Extram pursues a grand

strategy mission.

Manfex

When Matthew discussed the mission of the department,
he gave some examples of his activities. Matthew described
[M-3] his methods of structural change in general and the ad—
vertising department change in particular. He described the
integration of the structural and human approaches [in M-4]
when he spoke of complementary structures. An illustration
of a human activity was also given when he described his at-
tempt to make the new division manager more acceptable.

Later in the interview, Matthew described a very im-
portant activity for his department, organization studies.
The first stageis investigation of the division or function

in question.

99

[M-8] I usually make tours of the divisions when
I do my organization analyses. I also check with the
NICB to see who else has the problems and get in touch
with them. I also supplement my staff with consultants
to do the detailed lower level work.

After a thorough study of the situation, Matthew plans

the organization change.

[M-9] In my planning, I do make up a lot of charts
to reorganize a portion of the business if we are moving
functions. Ifls not just moving people. I start with
the function and see where it fits into the overall pic-
ture of the company. Then I prepare a dozen plans.

Then I choose the best one, put the people in it (con-
sidering what kind of people they need). I check the
salary administrative aspects, job evaluation aspects,
and training aspects. In a way, I manage the careers
of these men above a certain level until they retire.

Matthew integrates a number of activities into his

organization development plan:

[M-lO] To get the job done, our organization
work may well include: wage and salary administration,
job evaluation, some recruiting and training. We send
most of the training work out. I want only four men
in my section. So we contract out such things as
sensitivity training, and other types of activities
that get the guy out of his environment and try to im-
prove his working with people. We use National Train-
ing Lab, Kepner and Blake. We do all we can to change
their attitudes to tolerance and understanding of
people.

Matthew described several strategies he used to

expedite his plans.

100

[M-ll] One strategy I use in organization work is
to use a "sacrificial lamb“ to get a change. You take
division. We got tired of no change and
no growth. So we transferred (from an un-
related division) because he had guts. He shook the
division up and we heard no more of "Look, I have run
that division for years and it can't be
done."

 

In another case, we felt we had a problem in finance.
The Vice-President was not doing the job so we retired
him. But, we didn't want to discourage his subordi-
nates who are in their mid forties but not quite ripe
yet. So I found a man who was 59. When he retires,
they'll be ready.

Many times I move a general manager from one divi—
sion to another. I'll let him take some of his people
from the other division. I will leave that division
alone for at least a year. This way, we get a high
percentage of the desired change even when they are
opposed.

Finally, Matthew is called upon to perform special

projects such as the following:

[M-12] One recent example of the type of Special
projects I get was that the government wanted us to
reopen a war plant for Viet Nam. All I had there was
Sixty maintenance men. I had three months to get it
going with fifty-nine hundred workers and two thousand
technicians. Another example of a project was when we
took over a General Electric plant to convert it to
war production. We had large organization problems in
the "start up" phase of that one.

Confirmation of Matthew's activities and power to

Perform them was found in the corporate policy manual.

101

First of all, Matthew's ability to control top

executive promotions was found in Policy Number 31 and 32.

wa S

[M‘13] ”Policy Number 31: Approval of Employment
of New or Former Employee." With a management position
with job point values of 191-255, no executive may hire
a manager without prior endorsement of the Operating
Policy Committee to whom the General Manager reports
and the endorsement of the Director of Organization
Development. If the position is valued at 256 points
and higher, this position is approved by Director of
Organization Development and the President.

"Policy Number 32: Steps for Approval of Execu-
tive:" (1) .Management functional analysis form and
appropriate job evaluation must be acquired from Or-
ganization Development Department; (2) The total points
for the job evaluation is Specified by the Organization
Development Department; (3) Specify the placement lo-
cation requested; (4) The Director of Organization will
furnish a salary range for position and proposed hiring
rate; (5) Give the names of two executives in the com-
pany, regardless of their position or location, who
most closely approximate the qualifications desired for
this position. Foreward these to Organization Develop-
ment Department . . .

The department's activities in organization change

confirmed in Policy No. 33.

[M-14] "Policy No. 33.“ An up-to-date organization
chart manual will assist the manager in his day-to-day
conduct of his business by clarifying lines of respon-
sibility and authority and give specific names of
personnel. Charts will be kept up-to-date. There will
be two kinds of changes which will occur: (1) If a
change of incumbants is desired in existing function,
request will be made to Organization Development De-
partment and General Manager; (2) Final authority for
approval of all functional changes rest with the

 

formed

53

SD

33

SF'

SF-

SF-

SF‘

102

President and Director of Organization Development.
The Organization Development Department will issue
statements of all organization charts after approval
of all changes.

The activities which the department at Manfex per-
formed (most emphasized - *) were:
SD-l Analyze goals and objectives of divisions;

SD-2 Drawing up-to-date organization charts;
*
SD-3 Analysis for logical grouping of jobs;

SF-l Maintaining corporate organization manuals and
procedures:

SF—2 Developing corporate policy manuals;

SF-6* Proposing structural reorganizations;

SF-7 Developing the ideal organization structure;
SF-8* Reviewing all structural changes;

SF—lO Performing organization surveys and audits;

*
SF-ll Developing personnel and structural changes to
prevent the development of vested interests;

*
SF—14 Prepare policies for executive replacement and
development;

*
SF-lS Prepare policies for executive rating and salary
administration:

*
HG-l Laboratory seminar training for group development;

*
HG-2 Laboratory seminars for intergroup training;

*
HG-S Training in interpersonal relations.

103

The mix of human and structural activities at
corporate level reinforces the previous conclusion that

Manfex pursues a grand strategy mission.

Outlet

Otto described some of the activities performed in
his department in Chapter II. He discussed organization
studies, planning activities, and development of executives
[0-2]. The director amplified his earlier comments about the
department's activities later in the interview. The depart-
ment continues to perform organization studies,of course.

But some of these attempt to deal with broader questions now.
as Otto says:

[0-4] of course, a major amount of our time is
still spent with organization studies. 'But now, we
study much more complex questions, such as: Are we
making merchandising decisions the way we ought to?
And, is the budget process affecting creativity in our
firm?} What organization climate fosters innovations
and creativity the most?

A second activity we are now concerned with is com-
munications. We feel that this has organizational im-
plications. The Personnel department was supposed to
handle this. Typical of their solutions was their
suggestion: create a division of communications in
the Personnel department. This problem is to be
studied objectively before we decide what is needed.

We are doing a study of the quality and usefulness of
our present system of communications.

 

\F‘
6: .

 

104

A third activity we are now entering is the
maintenance of adequate executive inventory here at
Outlet. Again we are doing this because Personnel
did not do its job in this area either.

Otto had discussed earlier (Chapter II) his role as
a devil's advocate and internal management consultant. He

gave an illustration of this activity.

[0-5] Someone in every company must attempt to
judge activities on their merit to the company, not
just their division. When we were talking before, I
called this role "devil's advocate". That phone call
I just finished involved telling our discount division
what our management had decided to do with their re-
quest to set up their own warehousing operation. Here
is the report I gave management. Management concurred.
The division wanted its own warehouse and they sent a
proposal including the people and organization Struc-
ture for it. But they are not experts in warehousing,
no matter how expert they are in merchandising. Here
at the parent company we are. Some of their store man-
agers would have run the warehouse. I Showed management
that they weren't trained to do this, and it would du-
plicate what we had. This is typical of the special
services we provide for management. I also watch that
functions which are not being performed by the company
and are needed get some attention. This is what a con-
sultant would do and what I feel this department ought
to be doing.

Another activity performed by the department is the
integration of corporate policy. This is not a mechanical
task of writing manuals. Rather it is a creative endeavor
to assure consistency, unity and most of all, continuity of

the cultural norms at Outlet. Otto described it as follows:

 

 

(006

”L00

105

[0-6] I don't want to write policy physically or
be a job analyst. But I am a catalyst to policy
coordination for the divisions. Some departments pre-
sent some suggestions that may change the whole nature
of the business. I must analyze this and make sug-
gestions on what to do in these circumstances to maintain
the best climate of unity in our finn. .

Our quality image remains intact at Outlet. We
carefully guard this on the eighteenth floor because it
is part of the total set of values which we stand for.
We believe our values are unmatched anywhere in quality.
But perhaps even more importantly, we feel that the
espirit de corps of our employees is unmatched in the
retailing industry. We've always felt that they work
with us, not for us. I think we have reason to be
proud of our tradition of interrelationships with them.
They are our major strength and we are willing to re-
ward them accordingly. Because we felt this is So, one
of my major projects now is this. As we revise our poli-
cies to bring them up—to—date, we must always keep this
tradition in mind before any changes are made.

Otto described the way his work was allocated. He
produced the report the department submits to management of

the use of time and said:

[0-7] So, as you see here (in the report) I meet
monthly with the top executives to participate in the
planning process for the semi-annual, annual and five-
year plans and see hOW‘We can help. Some other portion
of my time is spent in administering the department. I
spend thirty-five percent of my time doing organization
studies for departments that I have always handled my-
self. The other fifty percent of my time is spent in
performing projects for top management. Presently,
there are two I am concentrating on: the creativity
project; and the revision of the policy manual (it
is a five-foot shelf of manuals.)

106

The activities performed by the department at Outlet

are as follows: (* = most emphasized)

SD-l*

SD-Z

HG-l

HG-3*

HG-5*

Analysis of goals and objectives of divisions;
Organization charts for divisions;

Analysis of grouping of jobs of divisions;
Inventories of executive manpower;

Write corporate organization manuals;

Develop corporate policy manuals;

Analysis of communication flow;

Propose structural reorganization;

Review all structural changes;

Perform organization surveys and audits;

Prepare executive replacement and development
policies;

Analyze organization information system;
Seminar training for team development;
Seminars for organizational goal setting;

Training in interpersonal relations.

The activities performed at Outlet include structual,

technological, and human activities. Thus, Outlet is again

‘3 la 8 s ified

as pursuing a grand strategy mission.

107

Tractem

Thomas already described some of the activities he
performed at Tractem. He discussed organization studies and
changes [T-l, T-2], changing of attitudes and people [T-2].
The corporate policy manual described many activities too
[T-4]. Thomas said that he spent most of his time with the
President and Vice President on organization studies and
changes. He described the rest of the departmental activi-

ties by defining the duties of each departmental member.

[T-S] First, we have Theodore who is an organization
analyst in charge of organization controls. He does
the following: Prepares and issues organization charts;
maintains up-to-date organization manuals; maintains up-
to-date management listings; maintains management or-
ganization cost comparisons; maintains memorandums of
planned organization changes. He also maintains organi-
zation files: current and historic charts and guides,
other company arrangements, etc.; prepares initial
drafts of organization change announcements; compiles
special analyses from the above materials.

The next member is Tonto. He is the manager of our
management organization section. His duties include:
to establish uniform company-wide policies, practices
and controls relating to management; to maintain organi-
zation charts and manuals; to maintain position guides
and descriptions. Tonto checks additions and cost con—
trols; nomenclature and titles. He also issues change
announcements and listings; works with executive man-
agement in preparing for, conducting or coordinating
current and long-range studies on specific organization
problems within any function or division. Tonto also
insures that each Study results in appropriate executive

108

review and decision. He studies and prepares analyses
and recommendations on organization problems submitted
by: customers; licensees, technical aid companies.
Tonto establishes professional procedures for making
management analyses and insures maximum collaboration
with all functions and services which can contribute
to the solution of the problem.

Ted is an organization analyst responsible for the
appraisals and resources files. He processes and main-
tains current data records, appraisals, inventory charts
and reviews notes on all exempt and potential manage-
ment and key professional people. Ted processes and
maintains the management Skills inventory and prepares
materials for reviews. He keeps notes during reviews
as directed and assists in compiling talent listings,
Special resources analyses, reports and chartings.

O O O C O O O O O O O O O O C O O O O O O O O C O I O

The next man is Tibbals and he is the manager of our
managerial resources area. His duties include: estab-
lishing and conducting a coordinated company-wide
managerial resources program including: data records
and appraisals, management inventory charts. Tibbals
reviews the management Skills inventory and works with
executive management to insure that managerial replace-
ment talent is identified and in adequate supply and
that replacement plans are brought to decision. Tibbals
compiles talent listings and selection criteria to in-
sure all candidates are considered as selection decisions
are made. He promotes inter-function and inter-division
assignments and transfers and collaborate with Personnel
Relations to insure that: college recruiting is aligned
with the present and future managerial needs of Tractem.
Individual development plans are prepared for identified
managerial talent needs; training programs are developed
to communicate Tractem's managerial resources programs.
Persons are assigned at each location to give attention
to managerial resources programs, objectives and
schedules.

109

Our other four members, Thompson, Talcott, Testor,
and Tile are organization specialists who do projects
for four divisions and their duties include: to con-
duct or participate in management analyses requiring
extensive investigation and specific proposal for im-
provement. They keep thoroughly acquainted with past
and present organizations of the assigned business
functions so as to: advise their functional client,
flag inconsistencies and potentialmproblems, attain cost
savings, analyze and Spot proposals, correlate with
salary evaluations. They keep informed of organization
experiences and trends of other companies within their
assigned business functions and perform special analyses
relating to general organization planning, management
organization or managerial resources as assigned.

Finally, Thomas stressed the importance of preserv-
ing the company traditions as part of his duties at Tractem.
Copies of these policies and traditions were provided the
author. Thomas explained how he assured that policy changes
in the organization and management area did not violate these
norms.

The activities performed and emphasized (*) at
Tractem are:

*

SD-l Analyze divisional goals and objectives;
SD-2* Draw up-to-date organization charts;
SD-3 Analyze jobs for logical grouping;

SD-4* Management inventories prepared;

SF-l Preparation of corporate organization manuals;

SF-2 Preparation of corporate policy manuals;

110

SF-4 Teach techniques of structural analysis;

SF-6 Propose structural reorganization:

SF-8 Review all organization changes;

SF-10* Perform organization studies and audits:

HG-l Seminar training for team development;

HG-Z Seminar training for intergroup development;

HG-3 Seminar training for organization goal setting; and

HG-S Seminar training for interpersonal relations.

Since human and structural activities are performed,

it is concluded again that Tractem's department pursues a

grand strategy mission.

Comparisons and Conclusions About the

Activitiep pf the Departmentg

The conclusions stated in Chapter II were found to be
reinforced by the findings in Chapter III. Hypothesis 1 pre—
dicted that grand strategy departments worked at the total
firm level and utilized more than the structural approach.

It was found that the activities performed by departments
with missions of grand Strategy varied in their emphasis
because of the requirements of the individual firm.

For example, Manfex's management felt the firm had

lost control when it "over-decentralized." Therefore, the

111

department stressed structural controls. Just the opposite
was found at Coman and Extram. Their management felt that
they had held the reins of control too closely. They wanted
to allow more freedom. Since this was so, the emphasis of

activities varied as follows:

Remco : 1 Structural

Assembler: 1 Structural

Coman : 1 Human; 2 Structural

Extram : 1 Human; 2 Structural; 3 Technological
Manfex : 1 Structural; 2 Human

Outlet : 1 Structural; 2 Human; 3 Technological
Tractem : 1 Structural; 2 Human

The technological approach appears to be just begin-
ning to be used. It can be predicted that the grand strategy
departments will put more emphasis on this in the future, as
evidenced by Extram's steps so far; Tractem's past, present
interest; and Coman's integration of the approach now.

In the case of Assembler, its department performed
structural activities at the corporate level. Remco performed
structural activities at the unit level, both as predicted
since they were classified as strategic and tactical missions.

So, on the continua of the three missions, the

activities corollary leads to the following:

112

Agtivities

 

 

Grand Strategy
Strategy Tactics
Coman '————-—-

Extram Manfex Assembler
Outlet Tractem Remco

Structural Structural Structural

Technological Human _ Activities

Human Activities

Activites

Again, several of the departments do not fit the models
of missions exactly. Coman, Manfex, and Tractem did not per-
form technological activities. But they approximate the grand
strategy mission more closely than they do the other two
missions.

Based upon the frequency of mention by the interview-
ees, and the emphasis they said they gave the activities, the
most frequent and emphasized activities by all departments
were as follows (in this order):

SF-lO Perform organization studies and audits;

SF-8 Review and approve all structural changes;

HG-S Laboratory training for interpersonal relations;
SD-l Analyze the goals and objectives of divisions;
SF-6 Propose structural reorganizations;

SD-2 Draw exact and up-to-date organization charts.

113

SD-3 Analyze divisions to ascertain if jobs are
grouped logically;

SF-l ‘Write corporate organization manuals;
HG-Z Seminar training for inter-group development;

HG-3 Laboratory seminar training for organizational
goal setting;

SF-l4 Prepare policies for executive replacement and
development;

HG-l Laboratory training for team development; and

SF-2 Develop corporate policy manuals.

As was expected, Since Six of the seven departments
operated at corporate level, most of their activities performed
were at the firm or group levels, rather than individual
levels.

This chapter has presented the data about the activi-
ties performed by the departments studied. Chapter IV will
discuss the interactions of the department directors and

members with others in the firm.

CHAPTER IV

THE INTERACTIONS OF DIRECTORS AND MEMBERS OF
ORGANIZATION DEVELOPMENT DEPARTMENTS AND

OTHERS IN THEIR FIRMS

This chapter presents the data on the interactions
of the directors and members of the departments with others

in the firm.
Bailey quoted several top managers on the importance

of interaction with them by successful department directors.

Organization development is too important to the
success of the company in the future to delegate it
either too far from the President, or for it to be a
subordinate or extracurricular activity. In a large
multi—divisional company, it requires full-time atten-
tion for satisfactory results.

The central organization planning [development]
staff acts as a captive consulting function for all
divisions of the corporation. With free license to
study and analyze jobs, records, costs, future plans,
and other factors, a thorough and systematic program
can be carried on within the company. This group has
an opportunity to identify, study, but not necessarily
be bound by corporate traditions, customs, or particular
political trends of the moment. Such a staff can

114

115

effectively operate only where its personnel are
allowed free and open discussion with top management
officials on any corporate problem.53

Whether this interaction was deemed desirable or
. . . . 54

not, many (including the consultants interViewed ) felt
that the directors did not interact with top management.

There are many methods of recording interaction with-
in an organization. Some of these methods are complex and

. 55 . . . .

comprehenSive. The interaction patterns reported in this
thesis result from responses of the interviewees to the fol-
lowing questions of the interview schedule:

Schedule 1: 3, 4, 2, 10, 13(C), 15, 17, 19, 22, 23,
26(B), 27(B), 29.

Schedule 2: B, C, EjglJ EJ G(1).
Schedule 3: BB, GG, HH(1).
These data were confirmed in part by behavior observed
during the interviews. Formal reporting relationships also
give some indication of interaction. These will also be

presented.

 

53Bailey,.gp. cit., pp. 100-101.

54See Appendix A.

See especially: Robert Bales, Interaction Procepg
Aaalygig (Cambridge: Addison Wesley Press, 1951); Elliot
Chapple, "Measuring Human Relations," Genetic Psychological
Mgflpgraphs, XXII (1940), pp. 3-147; Paul Lawrence, Th;
Qhéggipg g: Qrganization Behavior Patterns, (Cambridge:
Harvard University Press, 1958), Chapter 2.

116

Corollary II predicted the following interaction

pattern:

Diregtggs High Moderate Lo

Grand Strategy Top Manage- Middle Manage- Lower Manage-

ment ment ment

Strategy Middle Man- Top Manage- Lower Manage-
agement ment ment

Tractis Lower Man- Middle Manage- Top Manage-
agement ment ment

The chapter will present the data to determine the

degree to whhzh these patterns were found.

Datg on the Interaction of Organization

 

pepartment Directors and Members with

Others in the Firms

Remco

Ronald's interactions with others in the company have
received some attention in earlier data. In [R-2] and others,
Ronald indicated that all of his interactions took place at
the plant level. His formal reporting relationship Shows
that he is two levels below the President (see Figure 1).

But this may or may not indicate frequent interac-
tions with the President and top management. Ronald described

his reporting relationship as follows:

117

 

H mMDme
ucwEdon>mQ
eoflumuacmmuo
mo Heuoouan
meowpmamm
oo>OHmEm >wcuouu< meagesouo¢
mo “Ouowufln wumuomuoo mo Houoouan

_ L

mummpm wumuomnoo

 

 

pcmoammum

coaumuom.

 

~00 OOEmm

SOHmH>HQ eoflmfl>fln

mcflumummo HMSOHumcumucH

unwofimmuMoUH> uzoofimoum mUH>
wmpuflaaoo
oucmcam

118

(R-6] I am a member of the Department of Employee
Relations. There are only five of us in employee re-
lations at the corporate level for a firm with over
one hundred thousand employees. My area of responsi-
bility is organization.

But Ronald was more Specific in describing his inter-
actions within the firm. He stressed again the problem of a.
staff executive influencing or interacting with top

management.

[R-7] I report to Director of
Employee Relations. This has been a very strong line
company. The President himself is a strong line man.
They do not request assistance from the staff, includ-
ing myself, at the top levels. I have never met the
President. Once or twice, I sent an organization
analysis of several of my plant studies to my boss.

In one case, he sent it on to the President who, when
he returned it to my boss had noted "Have read with
interest and approval." Six words. That's all I've
ever had from the President and that through my boss.
AS to top line executives, they never request help
and I don't see them. When I do my work for the
plants, the report is always written to that executive
at the plant; if he wants to do something about it,
the line executive takes it to his boss and gets his
approval.

In fact, Ronald told the author that he did not "mix"
with people outside his department. The receptionist on the
floor of his office building stated: "Employee relations
people stick pretty much to themselves." This receptionist

had been employed in this position for seven years. There

119

were relatively few executives on this floor. She seemed to
know most of them, but did not know Ronald.

Ronald's interactions within the firm are clear.
They are high with lower management, nonexistent with top
management, and small with middle management. This pattern
fits the tactical mission and is consistent with earlier

conclusions about Remco's department.

Assembler

Most of the data indicating interaction of the direc-
tor and members at Assembler have already been given.

Earlier statements by Arnold indicated that he met
frequently with top management [A-3, A-9] to help in the plan-
ning process. This statement was confirmed in the policy
manuals [A-6].

In his discussion of the activities performed [A-lO,
A-ll, A-12] Arnold said that he Spent approximately sixty per-
cent of his time with corporate level and top management. It
was observed during the interview that Arnold was called to
several Vice-Presidents' offices for consultation.

Arnold indicated that he spent approximately twenty-
five percent of his time at the middle management level with

his assigned divisions [A-12, A-13]. He spent little or no

120

time with lower management. The division level organization
development people interacted with them.

A major indicator of interaction potential would seem
to be the formal reporting relationship within the firm.

Arnold answered the question about this as follows:

[A-l4] From 1956 to 1964, I reported directly to
the President. Since then, the President felt he had
too many people reporting directly to him, and so he
created the position: Vice—President and Group
Executive--Corporate Staff. I now report to this
individual.

This relationship was confirmed by the following or-
ganization chart from the corporate organization manual
(see Figure 2).

The departmental members interacted highly with
middle management. Arthur's statements [A-7, A-13] indicated
this and confirmed Arnold's comments [A-l6]. The depart-
mental members Spent more of their time at divisional level.
Little or no time was spent at lower management levels since
there were division-level organization Specialists whose func-
tion it~was to perform these activities.

These statements were internally consistent and the
Corporate Policy Manual indicated that this was the proper

emphasis.

121

 

 

 

 

 

 

 

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_ P _ _ _ _
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unmoamoum

oumom map 0 cmEuwmeu

uoH mmmfi

122

The prediction for a strategic mission was that most
of the interaction would take place at middle management
(which was true of the members); little interaction would
take place with lower management (which was true of members
and the director); and moderate interaction with top manage-
ment (which was true of the members). Arnold, however,
spent more time with top management than was predicted to be
so. Thus, the department generally fits the strategic mis-
sion pattern, but with relatively high interaction of the
director with top management. This apparently had declined
from an earlier period when he reported to the President

directly, however.

Coman

Earlier data given on the department at Coman indi-
cated wide interaction with the firm's members. Initially,
they interacted at middle management level [C-2, C-3, C-4].

AS the department's services became more widely known, greater
interaction took place between the director and top manage-
ment. One indication of this comes from the formal reporting

relationship. Charles described it as follows:

[C-8] From 1959 until recently, I reported to the
Vice-President--Industria1'Relations.

123

AS you probably know, the Vice-President of
Industrial Relations was made President of our company
several years ago. We had always worked as a team, so
that when the new'Vice-President--Industrial Relations
was appointed, I continued to clear most of my major
plans with the now President. Several weeks ago, it
became official that I would report to the President.

This change of relationship was confirmed by the

department, peer directors of organization development,
and published sources.

The reporting relationship is shown in Figure 3.

So, initially, it was very difficult to interact
with top management. Since then, and partially because of
the new President, Charles has been involved in reorganiza-
tion of the firm [C-7] and has interacted more frequently at
top management level, Spending most of his time with top man-
agement itself. This was especially true when he was helping
the President reorganize the firm, including the Office of
the President itself.

With regard to member interaction, it is mostly at
middle management level. In fact, the department policy
calls for fifty percent of a member's time to be spent at
division level and lower.

Coman's department at times operated a little differ-
ently from some of the others. If a top executive wished to
change a major division of the company, the department might

interact vertically towards lower management to help

124

 

 

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mmmmuw meoapmaom coama>an SOHmH>HQ conH>HQ COHmH>HQ
ucmEdon>mn Hoeuo HmwnumsosH msflpmuwdo meaumummo msflumummo mcflumuodo
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«Heuoouan mOH> oOH> oOH> oOH> moa> oofl>
_ _ T _ p _ _
usooammum

oumom may mo emauameo

CMEOU

125

accomplish this change. Thus, at times, the department at
Coman spent more time with middle and lower management than
many of the other organization development departments did.

Charles specifically stated that he separated his
department from other areas of industrial relations to get a
different environment [C-1, C-2] and thereafter did not
emphasize interaction with peer staffs.

From these emphases, it appears again that Coman has
a mission of grand strategy--interacting frequently with top
management, moderately often with middle management and

infrequently with lower management.

Extram

Edward has discussed his interaction pattern several
times in the data presented. His relationship with the Presi—
dent is important to an undertaking of this case. Edward dis-
cussed it in [E-2, E-2, E-4, E-S]. He described it again when
asked about formal reporting relationship as well. (See

Figure 4)

[E-l4] Well, if you look at the organization chart,
I report to the Vice-PreSident--Industrial Relations.
Einstein and I get along fine. For quite some time,
there was no Vice-President--Industria1 Relations. At
that time, I was under the manager of Industrial Rela-
tions and Einstein was‘Vice-President--Research and

 

Chen a stub-Avfihtnnand ESL Jvn...~

 

126

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uemo yswo usmo ucoo usoo ueoo psoo ucmo ucmo
Iammum Iflmmum Iwmmum Iammum Iammum Iamwum Iamwum Iamoum Iwmmum
mow» mOM> wow» m0w> mow> mOW> wow> mPW> mow> moM>
mea::mam meanmmeamnm
mumuomuou mumuomuoo
Houoouwa pcmowmmum wUH>
ucowflmmum
SOHHMHOQHOU Emuuxm

127

Development. In both cases, the major reorganization
work was done by me with the President. We kept .
Einstein informed, but he does not take an active in—
terest in the work. While the firm was reorganizing,
I spent at least two days a week with the President,
for a year.

This relationship>with the President was confirmed
by statements of the departmental members [E-7, E-8] and by
the members of the Fundamental Change Committee all of whom
were top management level (see statements in Chapter V).

These executives called Edward by his nickname and discussed
their organization problems with Edward. It was also con-
firmed by the friendly informant who stated that the President
and Edward were seen together socially.

Finally, Edward's office and other symbols of status
were not Significantly different from the Corporate Vice-
Presidents.

So Edward and, to some degree, the department members,
interacted primarily with top management. Interviews with
middle management indicated a moderate interaction rate. Since
the department had assigned members to the divisions now, this
was likely to decrease. In any case, it was not a regular oc-
currence, but involved the completion of a divisionS major

project such as a reorganization.

128

The division-level organization development staff
was expected to develop departmental-level organization
analysts to handle problems at lower—management levels.
Therefore, the interaction with lower management was low.

The department members indicated in their earlier
statements that they interacted primarily with middle
management.

The pattern of interaction at Extram: with top man-
agement, high interaction; with middle management, moderate
interaction; with lower management, low interaction. Extram

can again be classified as pursuing a grand strategy mission.

Manfex

At Manfex, the interaction frequency between Matthew
and top management was high. Matthew indicated that he fre-
quently interacted with the President [M-S]. He indicated
interaction with Vice Presidents as being frequent [M-6, M-ll].
The formal reporting relationship would indicate this. Matthew

described his relationship within the corporation as: (see

Figure 5)

[M-lS] Note that there are seven staff Vice-
Presidents and three operating division Vice—Presidents
who report to the President. I am one of the seven
staff Vice Presidents who report to Mr.
(the President).

 

129

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mam Hmoacnome

meancmam manneduoo
can

m mMDOHm

Amman

 

 

 

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owuuaeaoo muomm

 

 

 

lam: Hmumcoo

 

mammamcfi anonoom .Goaumuacmmuo
r . ..

mumuouowm munmcam msauoxumz

a -- _ _
muzwauummoa mmmum mumuomuou

unmoammum eon smEHHmAO

mmuuaeeou oouuaeaoo omuuHEEoo

muflmmsmm mscom oem mumamm pause

 

muouuouwn mo oumom

coaumuomuou xmmzmz

130

It should be noted that Matthew was a Vice President
of Manfex, the only director with this title.

Confirmation of this high interaction rate between
top management and MattheW'was quite convincing. While the
interview was taking place, the President calledafiaMatthew
and he negotiated the salary for a new line Vice-President.
Matthew got the President to agree to $40,000 not $36,000
per year.

The President called him several more times and in two
cases Matthew had ”quick conferences" with the President dur-
ing the interview period.

In addition to the phone calls from the President

during the interview, Matthew received phone calls from seven

u
III

Vice-Presidents. One Vice-President of an Operating Division
was waiting to see Matthew in Matthew's office when the inter-
view was completed. Matthew's secretary pointed out that two
more Vice-Presidents wished Matthew to call them back when
he could. This seemed to confirm Matthew's statements of in-
teraction at the top management level.

Another available sourve of confirmation was peer
evaluation. The several directors were asked to appraise each

others' activities, influence and interaction. MattheWHWES

rated as having the closest relationship withitop management

131

(Otto and Charles were also rated highly). This group was
only able to evaluate Ronald, Arnold, Otto, Matthew and
Charles, for Edward and Thomas's offices were not in this
area.

Matthew did not interact with lower management. But
when organization problems existed at these levels, occa-
sionalLy a departmental member would help or an outside con-
sultant was used. .Matthew interacted with middle management
occasionally, usually on special projects.

In the case of Manfex, the department interacted more
frequently at the top level, not at all with lower level, and
occasionally with middle management. It clearly is a grand
strategy mission although not a perfect fit because of inactiv-

'ity“*at the lower levels.

Outlet

Some references to Otto's and the members interactions
within Outlet have already been given.

In [0-1], Otto states that he was hired by the Chair-
man of the Board and served as his Assistant. Otto had known
him fro a previous experience. The activities performed by
Otto indicated high interaction with top management [0-4, 0-5].
Finally, Otto said that he personally spent at least fifty

percent of his time with top management.

132

Otto's formal reporting relationship facilitated
high interaction with top management (see Figure 6). Otto

gave examples of interaction with three top executives:

[0-8] I have done a lot of work for my three ex-
bosses both during the time when they were my bosses
and since. In several cases, I was asked to recommend
who should be promoted at the Vice-Presidential level,
and I am the only one present when the President and
Chairman of the Board discuss top-level promotions.

Peer evaluations of Otto's interaction confirmed that
he operated primarily at top-management levels.

There seems to be little doubt of the evolution of
the reporting relationship of Otto from reporting to a Vice-
President to reporting to the President. Otto's office (see
Chapter V) was next to the President's and across from the
Board Chairman's. He was asked to step into the President's
office several times and the Chairman's once during the
interview.

So, Otto had claimed close interaction with top man-
agement from the beginning [0-1, 0-2] and described the evo-
lution of reporting to a Vice-President to the President. He
stressed that he met often with top management [0-7] and per-

formed increasingly higher level organization studies requir-

ing interaction with the top executives at Outlet. His report

showed a large portion of his time was Spent at top-management

level.

ul~ U-O

 

133

 

 

 

 

 

 

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pcooammum owa> ucooammum.ooa> wumywuomm psoowmmum moa> unmoammum flwfl>
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134

The members dealt with divisional and departmental
executives. But Otto occasionally handled projects at the
divisional level, but normally for the President. He Spent
only a moderate amount of time below top management level.

The department members, however, worked primarily at the
divisional level and thus interacted frequently with middle
management and to a small degree, lower management. In the
Personnel Department, there existed an organization planning
section and these and outside consultants handled lower man—
agement organization problems.

The pattern of interaction at Outlet was Similar to
that of.Manfex. The directors both interacted frequently with
the Chief Executive officer. Otto said that his office loca-
tion was intended to increase interaction with top management.

It appears from the reporting relationships, Observa-
tions, peer evaluation, and interviews that the department's
interaction was high with top management and moderate with
middle management. It did not interact with lower management.
Thus, although not a perfect fit on lower management, the

department was pursuing a mission of grand strategy.

135

Tractem

Thomas' interaction with the President began Shortly
after he joined Tractem [T—l]. It has continued. Thomas
told the author (in describing his formal reporting

relationship):

[T-6] You will note (in Figure 7) that I report
to the Vice—President of Personnel. At Tractem, the
Vice—President of Personnel has traditionally been a
very important position. However, really, I deal with
the President as often as anyone else. For, he was
the first director of the Department. I just returned
from an early morning meeting with him. When we were
reorganizing under our previous President, I used to
go over to the President's house with the line execu-
tives and we'd work out the organization problems.

The policy manual [T-4] indicates the potential of
high interaction with top management.

The interaction can be inferred from the fact that
the President had doubled the Size of the department in the
last year.

There was evidence of frequent interaction with the
top executives having meetings in the department's conference
room with Thomas [T-4]. No doubt the close relationship of
Thomas with the President accentuated the interaction with
others in top management. The 1959 annual report (see Chapter

V) Showed interaction with top management as well.

136

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ucmEmOHw>wQ
coaumuacmmuo
mo Mouuouaa
Hoaaouudfioo awesomu m oocmcflm
wcooammum unmoammum pcmoflmmum m SOHmH>HQ
oUH> wUH> mUH> unwoamoum on>

_ _ _

mmmmum quHOQHOU
"mucwoflmmum on>

will

unmoammum

oumom on“ Mu Smfiuamoo

Emuo

 

NHB

m aoamaaao H coaha>ao
ucooamoHA.moH> unwoammum mUH>

i _

mSOHmH>HQ mcflpmuwoo
"mucooawmum wOH>

137

The descriptions of the activities of the department
members indicated frequent interaction with middle management
[T-S]. The annual report of 1959 indicated the activities
and relationships with middle management.

Thomas Spent all of his time with top management and
some Division Vice-Presidents. His staff interacted mainly
with middle management.

This interaction pattern fits the grand Strategy mis-

sion into which Tractem had been classified earlier.

Comparisopg and Analysig g; Interaction

The first indication of interaction potential given
in the data was the formal reporting relationship. The data

Showed that the reporting relationships were as follows:

Firm and Mission Formglly Reported To Informallv Reported To

Tactical Mission
Remco Employee Relations
Manager -

Strategic Mission
Assembler Group Vice-President Hard to determine;
Staff Activities In the past, reported
to the President

Grand Strategy

Mission
Coman President -
Extram Vice-President-- President

Industrial Relations

si
HE

V
{16

SC

F

 

138

Firm and Mission Formally Repprted To Informally Reported To

 

Grand Strategy Mission (continued)

Manfex President -
Outlet Chairman of the Board -
Tractem Vice President:

Personnel President

 

Ronald had reported to the Employee Relations Manager
Since 1963. Ronald noted that he had never met the President.
He said that occasionally his superior forwarded the report
he prepared to the President who returned it through channels,
sometimes with a notation that he had read it.

There were no indications that his reporting relation-
Ship would be changed.

Arnold reported to a group'Vice-President now. Arnold
had reported to the President in the first years of the func-
tion. He felt that this change can be explained by the fact
that the President had increased his interest in and emphasis
on external requirements of the corporation.

Charles had reported to the Vice-President of Indus-
trial Relations but had developed a welleknown informal rela-
tionship with the President when the President had been Vice-
President--Industrial Relations. Charles cleared most major

decisions with the President and this seemed reasonable since

139

they performed work quite differently from the normal Personnel
function (or so the department claimed). Then, just a few
months ago, the reporting relationship had been changed so

that Charles now reported to the President.

Edward reported to the Vice-President, Industrial
Relations formally. However, he socialized with the President
land whenever he felt it necessary, sought his approval direct-
ly. Edward claimed that this was with his superior's blessing.
And it is understandable Since Edward's relationship with the
President dated from a period when the Vice-Presidency was
vacant.

Matthew reported to the President and this had been
so since the office was created in 1958 officially. But the
important relationship between the two offices began in 1960
with the ascent of the present President.

Otto had reported to a Vice-President for five years.
He now reported directly to the Chairman of the Board. He
had worked as an assistant to the Chairman prior to the
creation of the function.

Thomas reported to the Vice-President--Personnel
formally. But since he and the President had created the

organization department together ten years ago, he cleared

140

most decisions with him. The informal relationship extended

to 1954 when these two proposed the function. They had worked
together for three years (until 1957) in the same office.

Thus, in the grand strategy mission, the interactions, as
evidenced by formal reporting relationships, had been ascend-
ing the corporate hierarchy. This was not true for the stra-
tegic mission where the director now reported to a Vice-
President instead of the President. Nor was it true of the
tactical mission, where the reporting relationship had remained
the same.

With regard to interaction frequency, the evidence
derived from observation, interviews, and confirmations indi-
cates the patterns Shown in Tables I and II

When the interaction frequencies of the Directors are

compared by mission, they appear as follows:

Top Middle Lower
Grand Strategy President Management Management Management

Coman High High Moderate Low

Extram High High Moderate Low

Manfex High High Moderate None

Outlet High High Moderate None

Tractem High High Moderate None
Strategic -

Assembler Moderate High Moderate None
Tactical -

Remco None None Low High

TABLE I

141

INTERACTION PATTERNS OF DIRECTORS OF THE DEPARTMENTS

 

 

 

 

 

 

 

 

pirecto; Interagtigp Egeggengy Confirmed by
Ronald President None Thomas denied inter-
Top Management None action higher than
Middle Management Low lower management
Lower Management High level.
Arnold President Low Department
Top Management High Members;
(60% of
his time)
Middle Management Moderate Statements;
Lower Management None Policy File;Observa-
tions of Behavior.
Charles President High Top management
Top Management High Statements;
Middle Management Moderate Policy File;
Lower Management Low Member Statements;
Peer Staff None Printed Works.
Edward President High Members
Top Management High Statements;
Middle Management Moderate Vice-Presidents
Lower Management None Statements;
Observations of
Behavior.
Matthew President High Department
Top Management High Members Statements;
Middle Management Moderate Observations of
Behavior:
Lower Management None Policy File.
Otto President and
Chairman High Policy File;
Top Management High Observation of
Behavior:
Middle Management Moderate Member Statements.
Lower Management None
Thomas President High Members
(60% of Statements;
his time)
Top Management High
Middle Management Moderate Policy File;
Lower Management None Observations of

Behavior.

 

TABLE II

142

INTERACTION PATTERNS OF MEMBERS OF THE DEPARTMENTS

 

 

Firm

Interaction Freguency

Confirmed by

 

Remco

(No members)

 

 

 

 

 

 

Assembler Top Management None Arnold's
Middle Management High Statements;
Lower Management None Arthur's Statements
Coman Top Management None Policy File;
Middle Management High Charles' Statements
Lower Management Low
Extram Top Management None Edward's Statements
Middle Management High Edwina, Endicott,
Lower Management Moderate Esmund's Statements
Manfex Top Management None Matthew's
Middle Management High Statements
Lower Management None
Outlet Top Management None Otto's
Middle Management High Statements
Lower Management None
Tractem Top Management None Thomas's
Middle Management High Statements;
Lower Management None Policy File

 

143

All of the departments fit the pattern of interaction
predicted for the missions in general. They were not all
exact fits. Tractem, Outlet, and Manfex did not interact
even at a low level with lower management. Assembler inter-
acted with top management more than would have been predicted.

So, the continua for interaction looks as follows:

 

 

 

Interaction
Grand Strategy Strategy, Tactics
Marfex

Coman Outlet

IExtram Tractem Assembler Remc0|
Top *
Mgt.: High High High Moderate Low
Middle
Mgt.? Moderate Moderate Moderate High Moderate
Lower
Mgt.: Low Low High

 

* Management

A researcher is rarely Satisfied with the amount of
confirmation of data on interaction. There is no Substitute
for extended observations of interaction, but even in this
case, one cannot be present at all times. Self recording
interaction devices may be biased by the respondent not

recording some "undesirable" interactions.

144

But the data already presented about activities, and
that which will be presented about influence and accomplish-
ment patterns serve to reinforce the findings about the in-
teractions. These factors are not independent of each other.

This chapter has summarized the interaction patterns
of the directors and members of organization development de-
partments in the firms studied. Chapter V presents the data
and analysis of the influence exerted by the departments on

the policy formation process of the firms.

CHAPTER V

THE INFLUENCE THE DIRECTORS AND MEMBERS

EXERT ON THE POLICIES OF THEIR FIRMS

This chapter presents the data which indicates the
influence of the departments on their firms. First of all,
circumstances that may indicate rank, status, and influence
will be described. Many feel that the physical circumstances
surrounding an individual or group can ofter serve as an in-
dicator of their influence. It is true that sometimes an
executive can be "promoted" into higher rank by giving him
greater trappings of office while he has Significantly less
actual influence. However, none of the directors held prior
position Significant for the corporation to create a well
decorated Shelf for him. [Edward, Matthew, Charles were
minor staff personnel; Otto, Thomas, Arnold and Ronald came
to the firms from the outside.] Secondly, the evidence is
presented that indicates which.policies the department influ-
enced. This is the chief measure of influence according to

the definitions used in this thesis.

145

146

Finally, a comparison and analysis of these data
will be given to determine the degree of support found for
the hypotheses. Corollary IIIof Hypothesis I predicted that
grand strategy departments would affect policies involving
the organization structures and management philosophy towards
the work environment for the corporation. The strategic de-
partment would affect the organization structure and policies
affecting it for the corporation. The tactical department
would affect the organization structure of units of the cor-
poration. Basically, grand strategy mission departments will
have greater weight, scope and domain of influence than the
other missions.

Hypothesis DZpredicted that grand strategy missions
would be more effective.

The data presented here were gathered from observa-
tion and responses to the following questions of the interview
schedules:

Schedule 1: l, 2, 3, 4(A), (B), (C), 5,.2LBL, 13(C),

15, 21 A B 22 23 24 A B C D E F ,
25(B), 26(B), 27(A), 28(C).
Schedule 2: A, C, E(1), g9 G(1). (2), (3), (5):.H131

Schedule 3: AA, pg, Lug, II(4), JJ(1) (4).

147

Data of the Influence of the pepartments f

Organization ngelopment

Remco

In many corporations, influence can be gauged by the
physical surroundings the corporation provides for the posi-
tion emcumbant. Ronald's office was located on the same
floor with the Accounting and Financial staff. It was modest
in Size (approximately 8' x 12'). It was about the same size
as a member's office in most of the other firm's studied.

His name was not listed on the firm's index in the lobby,
nor did the receptionist on his floor know him. Ronald's
secretary escorted the author to the interview. Her office
was located in a secretarial pool. His office was substan-
tially smaller than that of his superior.

From earlier data, much can already be inferred about
the influence Ronald has on the policies of the Remco Corpora-
tion. Ronald perceived his mission to include the completion
of plant-level organization studies [R-l]. He felt that lit—
tle corporate influence was forthcoming [R-7]. This lack of
influence contrasted with his past organization positions in
which he reorganized whole divisions of several multi-billion

dollar energy corporations. The contrast was so great and

148

his dissatisfaction so pronounced that he had already planned
to leave Remco. (By the time this is written, he has moved).
His peers directors were unaware of his circumstances. They
rank him as being quite successful based on his prior work.

Ronald felt that his formal education, including a
Masters Degree in Industrial Engineering, nine years on a
prestigious university faculty and several influential organi-
zation positions at large corporations prepared him to perform
in a competent manner.

In addition, Ronald perceived his position as that of
a staff executive, in a recently established staff [R-2], at-
tempting to make its way in a strong line company [R-7]. His
problem is complicated because the line has not been using the
staff.

He commented earlier on his lack of success in influ-
encing the forceful President. He had never received more
than Six words written on his studies from the President.

His position and influence were so weak that he had
difficulty influencing even the lower management executives

involved. AS Ronald stated it:

[R-8] When I finish a study, I send it to the
line executive concerned. Employee relations is not
strong. We're too junior. You need senior people to
get action and take initiative. So when I make

149

reports, I have to be very careful how I handle it
with the line executives. When this executive re-
ceives it, and if he wants to do something about it,
he will take it up his line of chain of command to
get the change through.

What has been the evolution of influence at Remco then?

The Director. Ronald has performed organiza-
tion studies of plants of Remco for three years.

The Superior. With a President who is only mildly
impressed with plant personnel cuts, the Employee Relations
Manager and Ronald have not been able to expand the function.

The Situation. Remco has been in a deSperate posi-
tion, having to change the nature of its business, its struc-
ture, and its personnel. The opportunity for the mission to
grow was there, but as Selznick says, leaders are not likely
to be impressed with only plant organization studies.

Ronald claimed no top management influence and ap-
parently had not received any. Even the plant level managers
did not have to accept his suggestions. Ronald was obviously
disappointed and was leaving the firm. The small office and
other indicators of influence confirmed this conclusion.

This department obviously influences at most the or-

ganization Structure of plants and other subunits of Remco,

 

56Selznick,‘gp. cit.

150

if their line executives agree. There is_pg support from the
corporate level. There was no attempt to influence corporate
policy.

Again, the pattern of the tactical mission fits Remco.
The influence, if any, is upon lower management policies as

they affect the organization structure of subunits of the firm.

Assembler

At Assembler, the corporate headquarters was located
in its own building in a suburban area of a large city. There
was no index of executives. Arnold's secretary escorted the
author past many offices the same as Arnold's. The department
had its own secretarial office and visitor lounge. Arnold's
office was approximately 12' x 12', carpeted, well furnished.
He had a beautiful view of the grounds. The office contained
many mementos of the organization association to which he
belonged.

Earlier data gave some indication of the department's
influence. In the beginning, Arnold reported to the President
and helped implement the reorganization of the firm his con-
sulting firm had suggested [A-l]. Subsequent to that, the
department and Arnold in particular interacted relatively

frequently with top management while it made policy decisions

151

about structural changes [A-2]. The department had some
influence because all structural changes required their ap-
proval or comment [A-2]. This helped the firm control the
Spheres of activity and the possible conflicts of proposed
changes. Most of the department's activities focused at the
corporate level, for the divisions have their own staffs.

Then in 1964, a new level of management was created which sep-
arated Arnold from a direct reporting relationship with the

President. When asked the reason for this, Arnold said:

[A-lS] Well, in 1964, we reorganized at the top.
The President created the position of Group Vice-
President in charge of Staff and we were Shifted to
this area. For the President is becoming loaded with
external responsibilities and he can't have everyone
reporting to him.

It seems reasonable to conclude that the President
did not feel the need to have as close a relationship with
the department as earlier.

Arnold saw the work which the department performed as
a good example of traditional staff work.

Arnold believed that he had studied organization mat-
ters and made decisions on it. On the basis of this, he could
act and help management. He saw organization as an area of
expertise separate from personnel.communications, and management

development. The experience with top management and his

152

particular divisions gave him reason to be confident of his
competence.

His statements of activity such as [A-8, A-9],
Showed no enthusiasm or dynamic interest in his work, but this
could have been his manner. Furthermore, he seemed disallu-

Sioned with it:

[A-16] Organization work at Assembler is easier
than at many other firms. For we have been growing so
much that many individuals don't worry about us as a
job threat, and always need some help in a change.
Management has accepted most of what we have recom-
mended, so this is one satisfaction of my job. It is
satisfying to be there when major decisions are made
and it gives you an opportunity to give my suggestions
and we get to study and recommend important changes and
it is a satisfaction when they are accepted and we get
a chance to implement our recommendations . . .

Most people who start in organization work stay in
it. If companies see it broadly, you can get into
other areas such as compensation. But once you're in
it, you usually stay. I know of only two major men who
have been able to Shift back to the line, and they had
strong line backgrounds. But if you start in this
Specialization, the probability is high that you become
a professional specialist. The yap; majority of men
stay in it but would prefer to get into general manage-
ment. Many have been in the work go long that they cgp't
switch. (Emphasis mine). Most in our Association have
been in it all their life.

What influence does the position have? As Arnold just
stated it, "It is satisfying to be there when major decisions

are made . . . and to give suggestions . . . But suggestions

153

about what? .Arnold consistently viewed organization work in

terms of control:

[A-17] All organization changes of a significant
nature must be cleared by us. This helps the corpora-
tion avoid a lot of trouble other corporations experi—
ence with frequent and poorly planned change or he
would refer to specific projects such as reorganizations
of portions of the divisions, policy manual revisions,
or quite specific if not mechanical conclusions to
activities.

The department responds to requests from management
fin'studies, but Arnold gave no indication that he suggested
means to improve the organizational environment or anticipate
organization change or other needs. The one suggestion he
discussed was that Assembler enter a new business. This is
normally not an organization department matter. What evolu-
tion of influence was seen at Assembler?

The Director. Arnold implemented his own suggestions
for structural charge and has not evolved the mission to in-
clude other approaches.

The Superior. The present President used organization
'development in the beginning, but quickly became involved in
other matters. He then created a new level of management for

the director to report to.

154

The Situation. Constant growth of the company
could have led to complacency. But one wonders if
Arnold really has the ideas or interest to evolve the function
to broader scope.

At Assembler, it can be seen that an ebbing of influ-
ence has taken place, with a new reporting level inserted be-
tween the power center and the department. No major policy
changes had been recently suggested or approved, nor had the
focus of activity changed in ten years.

Arnold was disillusioned and was trying to Shift to
line management. He did influence the corporate level to some
degree, but mostly as a control device for structural changes.
The mission is a strategic one. Arnold had division-level
organization analysts to do Ronald's type work. Yet the con-
trast is convincing when Assembler's pattern is compared to
the increasing influence and their scope and weight of influ-
ence of a grand strategy department. The indications of in-
fluence confirmed this mission, especially the office Size and
location.

In summary, Arnold and the department did not influence
significantly corporate policy on work environment or manage-
ment philosophy. It did serve as a control device, a unifica-

tion device, and adaptation device for the corporate level's

155

organization structure. It again appears that Assembler fits

the category of.a structural mission.

Coman

At Coman, Charles was one of the few executives whose
name was listed on the first floor index of the corporate
headquarters. The offices of the department and Charles were
located in an area of the building containing some of the cor-
porate staff. It was not on the same floor as the President
or Vice-Presidents of Coman.

The department members offices were typical of corpor-
ate staffs, very similar to those at Outlet and Manfex. Charles
and his secretary had an executive suite in the corner of the
building. The office was large (15' x 15') paneled in light
walnut and the windows had a walnut grill over them. He had
a large built—in bookcase area and the office had many art
objects. The furnishings were of Danish modern in walnut and
black and were quite expensive. The halls of this building
were not carpeted. The departmental offices were carpeted and
it extended about one foot beyond their office. Charles' of-
fice was carpeted in a different color and deeper pile than
the department offices. The author was escorted to Charles

office by his secretary who then served coffee and donuts.

156

Her office was larger than Ronald's, for example, Charles'
office was as large as some of the Corporate Vice-Presidents
at Coman.

In the data presented earlier, some evidence of in-
fluence was given. Charles discussed the early emphasis on
Specific functional activities of charts, training, and sal-
ary administration, without the "pressure" of top management
support, but it had no influence for six months [C-Z].

In discussing reporting relationship, it was noted
that Charles influences the President by a close informal re—
lationship dating from the period when the President was his
immediate superior. Since then he directly reports to him.
Charles' influence can be inferred from the fact that a non-
influential could not normally wait six months for its first
client. (A new program with no apparent results normally
dies.) Their influence on at least a portion of the firm is
manifested in the attitudes expressed by a client (a Vice-

President).

[C-9] While you are likely to find that clients
are generally enthusiastic about the organization de-
velopment people's way of working, you will also find
that each one has a somewhat different perception of
what the group is trying to do. Each one tends to
take from the group according to his particular needs
and understanding. It is more likely to be something
on a considerably smaller Scale, such as discovering

157

that leveling with his people is an effective way of
increasing real communication up as well as down the
line. Or that management by objectives seems to be a
good way to get things done. Or a client may just get
help in solving some particular problem and that's
about it. These organization development people are
different, at least they act differently. You can
absolutely trust them. They're not looking for credit
or prestige or power for themselves. They really want
to help you.

It's not the fact that a Special unit was set up or
a given certain functions that is important. What is
important is the kind of man who was selected to head
it, and the kind of people he in turn has brought into
the unit. With a different type of person there would
be little or nothing gained by simply adding another
organizational grouping. I can go to my boss and say,
“Oh, he's not doing this according to the rules; you
better check up on him." I wouldn't tell some of these
staff people who come poking around a thing. I'd be
a fool to. They'd just run back and get me in trouble.
Organization development doesn't work this way. They
just want to help. Formerly when I had some Special
problem I needed help on I called in an outside con-
sultant. Now I go to the organization development
people and see what they have to say.

I believe there are really two kinds of staff--
or at least there Should be. There are staff units
that are primarily concerned with control, that have
to audit and collect data for the people at the top
so they'll have some check on what's going on. And
then there are those groups that are set up mainly to
counsel and give assistance to Others. Personally
I'm Skeptical that control and assistance can be satis-
factorily combined. The minute I know that anybody is
checking up on me, I'm naturally going to try and pre-
sent my case in the best possible light. I'm certainly
not going to talk about my weak spots and the mistakes
I've made. On the other hand, weak Spots and mistakes
are precisely what I have to talk about if I'm going to
get any real assistance in dealing with problem areas.
So I don't believe the two roles mix.

158

I think the fact that organization development does not
try to control or in any way force its ideas on anyone
is one of the basic reasons why the people in my de-
partment have been able to work so well with the organi-
zation development unit in a Situation that has been
difficult at best. We've been in the process of a
complete reorganization. At the outset we decided that
ability to do the job would be the only criterion used
in selecting people for positions. This has meant not
only cutting staff but Shifting some people from rela-
tively high-level positions to spots that carried less
prestige and authority. That's rough. But with the
organization development people's help, we think we did
the job effectively and with about as little pain as
possible.

We leveled with these people, we told them just
what was going on, and we also asked for their help in

reorganizing the department. Now I think we're in
surprisingly good shape.

This client has indicated how the department has in-
fluenced him and others during the recent reorganization.
This reorganization was suggested by Charles and included
the reorganization of the President's office itself.

AS one famous business publication stated it after

discussing Coman's economic problems:

[C-lO] So, in 1959 the President asked Charles
, an Industrial Relations man, and who

 

 

had worked closely with President when he
was Vice-President Industrial Relations, to . . . The
President decided Charles' ideas were

 

good and set up<3rganization development as inside
Consultant . . . Organization development is still not
totally accepted but [The President] is
convinced Charles is right.

159

The publication went on to describe how Charles so
influenced the President with his ideas that the President
completely restructured his own office and top management to
utilize the group concept, reducing a number of divisions
into several groups and structuring the top levels of manage-
ment to utilize the linking-pin concept of Likert.

It requires Significant influence to reorganize a
firm and especially so if it is a radical change as this was.

Charles states the problem of measurement of influence

at Coman well when he Says:

[C-ll] We are told that our principles are having
an effect. And we see in some line operations, both
old and new, that they are having an effect. But Since
our role is catalytic, helping managers think through
problems of motivation, organization, and management of
human effort, our results can't, in the last analysis,
be measured by anyone but the people we serve. We are
content that it be this way.

We are profit oriented. The happiness of people is
not a goal although we suspect that people are prdbably
happier working this way. In profit-oriented terms, we
are convinced that an organization operating by these
principles can operate with fewer people, lower costs,
far greater effectiveness, and higher individual rewards
for the people who are so involved.

Charles then described the accomplishments of his de-
partment (See Chapter VI). These included: a change in at-
titude regarding the withholding of information from employees;

open discussion of the problems of the firm and discussion of

160

how to achieve the goals; an attitude change in the manner of
handling compensation executive compensation; develop means
to minimize conflicts over Promotions and salary changes;

the changing of attitudes toward organization changes to in-
clude human and structural approaches; counseling managers
on the methods of handling organization changes; more effi-
cient use of organization charts as tools of change; prepara-
tion of potential management inventories.

The evolution of influence seen at Coman was as
follows:

The Director. Charles brought the department from a
series of exempt personnel services to a resource for line
management to draw on for more effective organization
environment.

The Superior. The present President helped Charles
evolve the present philosophy when he was Charles' immediate
superior in industrial relations. He has increased the sup-
port of the department Since assuming the Presidency.

The ggtuation. A Situation of profit squeeze and
identity crisis for this conglomerate existed and the depart-
ment has helped to move it along the path to greater effec-

tiveness in the marketplace.

161

This department, and especially its director, can
point to major structural and environmental changes as a
direct result of its activities.

AS a result of his convictions, Charles was convinced
that group decisions and activities were critical to success.
The most dramatic result of his activity was a complete reor-
ganization at the top corporate level. The President was
given an "Office of the President" in which he regularly made
decisions with four other executives. This became a joint
executive. The divisions were grouped differently and each
group headed by a joint group executive consisting of a Group
Vice-President and Vice-Presidents of Divisions who made joint
decisions on most major matters. There were provisions for
"linking pin" positions between levels.

Charles claimed credit for this change and Since the
visit, the change was published in a national business maga-
zine, crediting the idea to Charles.

Similar changes in attitudes, work envisionment, and
structure were made earlier by cooperating divisions and
plants.

These changes indicate a degree of influence with the

President and Vice-Presidents. Major corporate organization

162

changes are not lightly made affecting their own power
positions, without top management support.

The President showed his interest and support by al-
lowing Charles to move the corporation toward Theory Y and
having Charles report to him.

The executive suite occupied by Charles supported
these indications of influence on policy.

It can be seen from these examples that Charles and
his department were concerned with influencing the manage-
ment philosophy and work environment of Coman. In addition,
they had just completed implementing a complete structural
reorganization of the firm. Both of these changes were at-
tributed to Charles' influence by clients, department members,
and published sources. These are effective indicators of
significant influence in the firm and again reinforces the
earlier conclusion that the department at Coman pursued a

grand strategy mission.

Extram

At Extram, Edward's office was large (12' x 15')
paneled, carpeted, and faced the plaza, not the plant. He had
the same type furniture and appointments as the Vice-

Presidents. It was located in the executive floor and his

163

secretary shared the same alcove as the Vice-President of
Finance. The departmental offices were located in a separate
building with other staff offices such as accounting and
personnel.

Some indication of Edward's influence on policies of
the corporation and top management have already been given.
After all, Edward and the President met to evolve the new or-
ganization structure and management philosophy [E-2, E-3].
Edward helped create the Fundamental Change Committee to ap-
prove (and derive support for) the changes they proposed
[E-S]. The Scope of the change itself is Significant. These
included the changing of the number of levels of the firm and
inducing blue collar workers to help set goals. These are
not paper changes.

The chief measure of influence is the degree to which
the department director is able to affect policies. These
policies are determined by top management. Several of the
Vice Presidents at Extram were helpful on this point. Their
statements follow.

First of all, there are these statements from Ein-
stein, Edward's superior and the Vice-President--Industrial

Relations:

164

[E-lS] In my dissatisfaction with Extram's
progress viz a viz my aspiration level for it, I
searched for a reason . . . we had good people in
terms of each Speciality . . . When I went to AMA Sem-
inars, our people performed as well as other firms in
terms of technical knowledge and ability to grasp a

task and attack it effectively . . . what we were doing
wrong was not marshalling our people well . . . they
were not self starters . . . I wondered why . . . About

this time [while he was still Vice-President Research
and Development], I met Edward. He was "preaching the
gospel" of marshalling people through effective manage-
ment and organization. I sent my people to his courses
and then took it myself . . . I saw that Edward had the
solution to these problems, including his proposed or-
ganization changes. When I came to this job, I saw the
same problem. No one evaluated this work, and so I
asked Edward for a solution. He suggested we start
charging for our services. If the divisions wished the
service, they'd pay for it. And we could account for
usefulness. Edward helped us to work toward corporate
goals. Our people started evaluating their own work as
a result of changed managerial orientation and changed
organization structure.

After discussing Edward's general influence on him-

(0

self, Einstein discussed the organization change and Edward

part in it.

[E-16] In the organization change, Edward was con-
fident enough to hire an outside consultant to test his
suggestions and audit the organization change. So we
made the big changes Edward suggested. Many divisions
are asking for Edward's services to make the same changes
and get the effectiveness he has brought at Corporate
headquarters and the divisions. When Edward works with
a division, in theory the head of that division should
outline authority, salary increases, etc. In reality,
Edward is doing a lot of it during the organization
changes. I am getting constant comments that "Edward
helped us through these changes? For example, he just

165

finished working with the traffic department. They
thanked him through me for asking the questions and
helping with the answers of, such as: What controls do
we need? What must be cleared with us?

In response to the question about the effectiveness

of the department, Einstein replied:

[E-l7] We expect to see Extram profits up. You
can't just compare the cost of organization development
to other company's cost of this--that's irrelevant.
Corporate profit results from people using resources.
If you believe this, then these organization develop-
ment functions affect the people-profit equilibrium.
You can't figure results exactly. We did cut personnel
in this organization change and this is measurable.

If profits don't improve, my whole industrial rela-
tions function is suspect. For all people must work
effectively towards increased profitability. If profit
becomes worse, management Should ask: is this due to
poor management? Has our structure failed us? They
should compare divisions using our methods and those who
don't use them . . .

. . . You could also send a survey to the "customers"
of organization development and us. If they are uni-
formly enthusiastic, then its not our fault. Still, if

profits don't increase, we should ask: is industrial
relations worth it?

Thus, Edward's superior sought him out for advice
and accepted his suggestions to charge for staff services.
He felt that Edward's clients were satisfied. This could now
be measured by the payments of the division.

Esmund is the Vice-President--Finance. His comments

about Edward were favorable:

166

[E-l8] My concept of management is to delegate to
the proper level. You can't take various businesses
and set one method for all. But I was involved in
operating problems and had no time to consider long-
range planning, internal auditing, developing people.
We had no formal rules for all the divisions of accrual
methods, when to expense versus capitalize. We needed
rules of the game. So we created financial manuals for
the divisions. But here again came the problem of or-
ganization. We had a system but we also had people
problems. We brought in several consultants.

But no real progress came until Edward set up the
Fundamental Change Committee and brought in the last
consultant. Edward drew up the proposed organization
and the committee of Vice Presidents met continuously
for six months. At Edward's suggestions, we called in
all the people who had suggestions and tried to work
them in. The consultant did parallel work. We listed
several hundred potential executives and considered
them in terms of the jobs we needed. The consultants
concentrated at the lower levels in the larger divi-
sions. We have had smaller reorganizations in the past
but nothing like this one. ‘We also used manpower
planning and Edward helped uS there. The Committee
tapered off, but Edward and I still meet frequently.

My work is very different now. I am separated
from daily operations. I can concern myself with policy.
I receive reports on the data that I need. I can plan
future policy and personnel changes. The reorganization
meant some personnel changes. One out of eight of my
department was released and we reassigned many jobs.
We can now concentrate on long run and Significant
problems of methods of inventory and review of the fre—
quency of payout of cash instead of concern for petty
cash.

I now ask Edward to help me change my organization
structure. I'm going to divisionalize the information
system and ask them to do their own recruiting. I need
Edward to help me with people planning in the future.

I want to get away from accidental development. I also
rely on him as a sounding board for ideas. For example,

167

I just finished writing up a list'of responsibilities
for operating level controllers. I Showed it to him
for his appraisal. We use each other as feedback de-
vices, for we are personally compatible.

I use him as an advisor on salary administration.
An assistant division controller wanted a raise and
he was denied it. Edward can get the feed back on it.

So, in summary, to capitalize on these growing
markets, Extram has recently realigned its corporate
structure by establishing a number of separate operating
divisions which are true profit centers. Each of these
is headed by a Vice-President who has full authority and
responsibility for effective operations and profits.

We believe this new structure will give us a more
sensitive feel of the market place and enable the divi-
sions to respond more quickly and flexibly to changing
Situations.

At the same time as we have invested each operating
division with individual profit responsibility, we have
also streamlined our corporate staff, reducing its size
and limiting its function to policy-making decisions
and the handling of certain coordinating and auditing
activities . . .

Since we are looking at markets ten years away, we
must also program for the sort of executive force that
will carry out these long-range projects. The members
of our corporate executive staff today average fifty-
five years of age, with some thirty years of experience
per man with the company. On the divisional staff
level, the average age is forty-five with nineteen years
of experience; and our divisional line managers today
average forty-eight years and some twenty years of
experience with Extram. Edward has been a great help
in this process.

Edward's role in the reorganization was confirmed by

Esmund. But even more than this, Esmund shows that his

168

policies about organization and work environment are
influenced by the respect he has for Edward.
Ethelbert, the Vice—President of the largest division

of the company had this to say about Edward and the department:

[E-18] Edward has been a great help to me. He did
most of the Spade work for our recent divisional reor-
ganization while I was abroad. He furnished me with the
format to formulate management policies within the scope
of our corporation for my division. He set up round
table discussions for me, my personnel manager, and
others and helped clear the policies for the structural
changes of division. This process was accomplished in
a few weeks versus Six months if I had to do it myself.

He helped me write the statements of how I wanted
my managers to operate. He was a participant advisor
and counseler in meeting with my new department heads,
keeping minutes of these meetings, pointing out to me
later what items we missed. He met with us for thirty
days while we were reorganizing and then helped us to
communicate it to the people. He and I held meetings
with the people who were to be involved. He would Speak
for the corporation level, I for the division. We re-
ceived a lot of good comments from the trade and from
within Extram. To a man, they liked the way we handled
it, taking time out to discuss the objectives we had in
mind, reasons for the changes, what these were, and what
was now expected of them. Extram has restructured its
three divisions to allow them to plot more closely
their own growth and profit destinies. AS a result of
these changes, I can damn well tell you our growth pro-
jections are above the Six percent industry average and
the same goes for profits.

These objectives are more than likely shared by most com-
panies,but our goals are far more realistic because of
the way Extram is now pushing down profit responsibility
to people who can do something about it. Under Extram's
former setup, there was no sales and profit accountabil-
ity under the divisional general manager level. The

had

169

company couldn't make even general managers truly profit
responsible, because they didn't have cost control over
areas such as purchasing, personnel, traffic and distri—
bution and planning. The divisions were billed for these
corporate services as a percentage of sales. The only
areas we had control over were manufacturing and
marketing.

Under the present system, personnel, finance, dis-
tribution and planning and quality control have been
pulled under the divisional wing to allow each division
to ride close herd on costs . . . We had to make con-
siderable personnel changes, reducing personnel ten per-
cent by reassignment. We brought in two of our top fif-
teen executives from the outside. My major product man-
agers, especially Everett, used Edward to restructure
his "business." Edward is of the highest order. I
couldn't have accomplished this reorganization in less
than five times the time without him. Edward has the
talent to help managers without trying to force his
opinions on them. We'd be still fighting the throes
of the reorganization if he didn't have this talent. . .

We will continue to use Edward's service. We are
constantly reevaluating our organization because of the
constant changes in the market place. In the manage-
ment development area, we lean on him to keep his pro-
grams going and make better managers of us. I prefer
an inside and qualified staff expert to a management
consultant, for he is available to us on a continuing
basis, not just in and out, and knows this business.

Eddie, the Vice-President, Research and Development

this to say:

[E-19] There are few differences in managing
research and development units from other units. .Most
of the peculiarities (those attributed to creative and
professional people) are artificial. One thing Edward
and I did was take scientists off purely managerial
work, and integrated the scientist and manager into one
mold. We cut fifty percent of the managers. When the

170

shock wears off, they will be happier.For they will

gain status, which is vital to a scientist. My job

was to consolidate industrial engineering, engineering,
and research and development. It went surprisingly
easily. We farm out many of our projects now, create
group leaders,and treat the individuals with their pe-
cularities kept in mind. There is one scientist who
detests being audited. So I go to his customers and if
they are satisfied, I tell him hOWHWell he is doing.
Edward was a great help in restructuring the division and
we continue to use his service. Edward and I accomplished
the change by talking principles of organization. Then
we talked about the organization per se with no names.

We did this for a year. They began to wonder what_; was
going to do. .l was going to do little. Pretty soon they
started asking why we were doing x and y projects and
they were making their own suggestions of change. I
didn't set up a bunch of written policies for they re-
sented the prior ones and feared the restrictions. So
the ones I wrote were positive. . .

Edward has been a big help—-his courses can help
teach you how to be a manager. He helped minimize the
rules and procedures for me. The next project is to get
Edward to help me give the younger men more responsi-
bility. Three years on a job is enough. They need to
grow. 'Yes the reorganization went well. . .

Everett, a middle manager in Ethelebert's division

commented:

[E-20] Edward's courses really helped me structure
problems, to learn to work on the problem, not its symp-
toms. Edward really teaches problem solving and devel-
opment of management. These were means to the end.

When I was given this job (Product Division), I used
Edward to help me set my objectives. My area is compli-
cated and he helped me structure the problem. By the
way, I had some trouble getting to Edward. He is very
busy at the top management level. He came to the meet-
ings we set up to reorganize and kept us from going in
circles. Now we're showing a good profit and we'll
reorganize again if necessary.

171

Edward was needed to help structure the problem,
develop our training program, and so now our plants
and salesmen are trained in depth. Now, he sends
Endicott to look at us again, especially the organiza-
tion of salesmen and training of them in management.
It has caused real changes in performance. Thirty-five
percent of them actually used what we trained them, so
we are now managing for effectiveness. In the future,
we'll use Endicott and Edward. They will help us im-
plement what we've started and stay up with changes in
organization.

Finally, Egbert, a middle manager comments:

[E-21] Extram has now decentralized. Over the
years, Edward's group has provided their facilities to
us at the plant level and division level and we have
called upon them from time to time to provide us with
specialized knowledge that has been very helpful. For
example, they recently did a study for us of
plant. They worked closely with us. They are aggres-
sive and helpful and trying to sell their point of view
to us and to management to get the optimum arrangement.
Here's a copy of the most recent study which Edward
helped us complete.

 

(Egbert presented a twenty page study which was simi-
lar to the one given by Edwina and the one Edward performed

for the total firm. It used structural and human approaches.)

Feedback from the plants looks good and Edward is
anxious to follow up. There is a rapport between us
and Edward's group because of their talent. we sought
them out and their approach was to ask us: What are
your objectives? Once they know this, they follow
through--they don't just leave a report like a consul-
tant. They have helped us in training, organization
analysis and other areas. Since we are divisionalized,
they have trained one of our men in the use of these
tools. They helped us to see our responsibilities and
leaned over backwards to see that they were not doing

172

our jobs for us. In the reorganization, they were a
great help in helping us to adjust, furnishing advice,
counsel, and research to the division.

The evolution of influence at Extram can be summarized
as follows:

The Director. Edward accepted the position of direc-
tor of management development and then organization planning
when they were unrelated and low prestige activities and de-
veloped them into a coordinated and meaningful activity to
the firm.

The Superior. The present President of Extram, who
after he completed Edward's course, allowed the social friend-
ship between Edward and him develop and then encouraged Edward
to expand the usefulness of organization development.

The Situation. First, when the President wanted a

 

new structure to work with and later when profits and growth
was not adequate, the President and Edward employed the or-
ganization development means to aid goal achievement.

By reviewing the activities of the department, one can
assess its influences. When Edward met with the President,
they created objectives for the firm that most firms would
agree to in theory: effective managers, creating objectives,

doing their own planning and accomplishing better results in

173

terms of profitability and growth rates. But what policies

and programs did the department initiate and bring to fruition?
The firm was reorganized in that it was decentralized,

the levels cut and structure flattened, and employees trained

to manage by objectives. The President reported the follow-

ing in this year's annual report with regard to this:

[E-22] Organization changes. Our divisional organi-
zation has traditionally relied on central staff depart-
ments for a variety of services. During the year, a
number of these departments were reduced substantially
in size, and their divisional functions transferred di-
rectly into the various divisions. Our objective is a
strong, small corporate staff dealing with strictly
corporate problems, and divisions which have their own
essential staff services and are fully responsible and
accountable to the principal executives. We believe
these changes will enable us to function more effectively,
yet with fewer people.

The policy changes made then were a change from a
structurally centralized firm to a decentralized firm, empha-
sizing reliance on the individual managing his own work rather
than what Edward considered excessive numbers of supervisors
checking the work and excessive rules regulating the work.

By this change, Edward hoped to liberate and unleash the
latent energies of the employees to do the work which they
were trained to do.

This complete change of structure and work environment
was accompanied by substantial personnel changes, specifically

recommended in his reports.

174

Edward suggested that the way to determine whether
staff services were desired was to charge the divisions for
their use to give a quantity able justification for increases
or more meaningful measure for cutbacks.

Furthermore, most staff services were decentralized
to the divisions (including some of Edward's own people) and
only strictly corporate functions were kept there following
certain criteria.

The statements given by the Vice Presidents indicated
significant influence by and support for Edward and the
department.

The office location and size supported these indica-
tors of influence. Again, there is a substantial difference
between the increase in influence and scope and weight of
influence shown at Extram and the declining influence and
plant level influence of the tactical and strategic missions.

Obviously, Extram had a grand strategy mission.

Manfex

Matthew's office was located in the corporate head-
quarters in a large city. He was one of the thirty executives
whose name was listed on the first floor index of the thirty

story building. Occupying a corner suite, approximately the

175

same size as a line Vice-President's and on one of the two
top management floor's of the building, Matthew's office was
large (15' x 15'), carpeted, and expensively furnished. His
secretary's private office was also large, carpeted, and well
furnished. Matthew is a Vice-President,and is listed in the
Standard and Poor's Index of the Top Executives of American
Manufacturing Corporations (the only director so listed).

In earlier sections, the reader may have observed
some indications of the influence Matthew exerted at Manfex.
After all, it was the President who asked Matthew to help
him restructure and motivate the company [M-2]. The mission
of the department [M-7] required the director to be influen-
tial with top management, and this was exemplified when
Matthew spoke of eliminating whole staff departments [M-3],
changing committee structures, setting salaries for top man-
agement [M-l3], placing men in key executive positions [M-l3],
and moving them about. .

These examples of decisions involving the future of
top management salary, position and future were supported by
corporate statements.

In fact, the President saw the position as so influ-
ential that he made an agreement with Matthew to control it.

Matthew stated it this way:

the

176

[M-l6] When the President asked me to take this
position, he set the following conditions: (1) to
consider that this was my last job with the company;

(2) there would be no further promotions or changes.

He wanted continuity in the position. The President
said the position would be lonely and difficult. I

go to great ends to try to avoid the power struggle.

I can't avoid it entirely, however, for I have to do
the things the boss wants and this sometimes puts me

in a difficult situation. He said that I would not be
popular. Whatever changes we made, I would be blamed.
But he told me that he picked me because he knew I
wasn't at Manfex to win popularity contests. He said
that if I held the job five to six years, the smallest
chink in my armor might allow them to get me and I
might be out on the street. But the younger exe-
cutives would back what I was doing. To compensate for
these circumstances, my conditions were that: (l) I
would have the right to disagree and not be a yes man--
to be able to tell him off and fight him. In fact, we
haven't agreed the last seven times in a row; (2) That
I could propose a man for a job even if all the other
line executives disagreed and the President would back
me; (3) That Manfex had no incompetent people as such,
but they might be poorly trained and this was our fault;
so we must train them.

When the question of the satisfactions he received in

job was given, Matthew returned to this point:

[M-l7] Well, first of all, I'm well paid. I've
seen instituted a lot of things that I wanted. Many
may forget what I did. Others won't know what I did.
For example, I made a new man a Vice-President, but
he doesn't know it. I also put a man in as division head
whose superior wanted to fire him. I made this move
against everyone's advice and he's doing a terrific job.
The executives didn't want him. I threatened to quit
if he didn't get it and the President agreed with me.
He'll probably be the next President of Manfex.

I have no illusions that they'll put up a statue to
me. And there are problems with this job.

177

Its frustrating. The last time the Board Chairman had
a party, I was the only staff executive there. No one
would sit with us. Then one executive did and he said,
”Matthew, I'll sit with you. I'm not afraid of you. I
retire in a year."

When I visit a division, I try to be friendly and
smile, but they're scared. So, I don't go to company
parties anymore and really have few people I can talk
to here at Manfex.

It can be seen that Matthew was given a position of
trust and influence by the President. Later, Matthew returned
to a discussion of his relationships with the President and

to others in the company:

[M-lB] I do the organization planning but must
report my findings to the President. He makes the pol-
icy, he calls the shots, he is the only one who can sell
it to the Board. After all, I am a staff man and have
no line authority.

Line authority or no, his attitude towards people
indicated more influence than traditional organization theory

gives to a staff officer. As Matthew said:

[M-l9] Look, I don't have problems working with
other people. I know what must be done and I tell them
what to do. They have no choice. If they want to make
a change in job or structure, they've got to clear it
through me and that's it.

At another point, when discussing his activities,

Matthew said:

 

178

[M—ZO] I made a big mistake early in the game. I
tried to work with the people on the job. They just
fouled things up. All they wanted to do was to defend
their position, protect their jobs, justify their exis-
tence no matter what it meant to the corporation. Now,
its different. I work out the major change and they are
presented with a fait accompli. When I tried to work
it out with them, we got nowhere, for all they could see
was their empire slipping away and fear for their own
job.

Confirmation of his influence was given by his peer
directors and department members. Behavior observed at the
time of the interview also reinforced this impression. His
image of controlling and knowing what is best for the company
became evident in the way the policy manual was written, the
way he talked and acted towards people. He argued vigorously
with the President to get the new'Vice-President's salary
higher. When a Vice-President called to disagree with his
position, Matthew raised his voice and told him in no uncer-
tain terms that his (Matthew's) opinion was final.

While the author was reading policy manuals in his
secretary's office, another Vice—President (who had been wait-
ing) went into the office. The author heard the beginning of
the discussion because the door was still open. "Look, Matthew,
your ruling on my division is just unfair" he began. At this

Matthew jumped up, closed the door, but the researcher could

still hear the argument because both of them were "raising"

 

 

179

thefifvoiczs. There was no doubt that they both felt sure of
their positions and that Matthew considered himself equal to
the Vice—President on this point.

Matthew's influence seemed to be the strongest of
those observed at any of the firms visited. Matthew influ-
enced the placement of key executives, passed judgment on or-
ganization and personnel changes. He was involved in changing
the humans involved. He helped set their salaries and set up
whole plants. He influenced the work environment and helped
recentralize Manfex.

The evolution of influence at Manfex proceeded as
follows:

The Director. Matthew accepted the position of or-
ganization development director and evolved it into an inte-
grated program of structural reform and human changes.

The Superior. The President of Manfex because of
Matthew's persuasion, developed a friendship with him and
together they expanded the usefulness of organization
development.

The Situation. The President used the function to
help remedy the slipping market share and profit picture at

Manfex.

180

Matthew's influence can be inferred from the changing
of the firm from a loosely decentralized set of divisions to
more closely controlled divisions, still utilizing the
decentralization model.

His function included close control of personnel pro-
motions and transfers at the top as well as organization
changes at this level.

Matthew's ability to transform the structural and hu-
man approaches into vehicles for more effective utilization
of the human resource to prevent bureaupathology was amply
documented.

The President encouraged him to promote "the best
man" whether the system supported him or not, to create the
conditions for dynamics by building the structure alternating
various functional backgrounds and personality differences of
the executives.

By utilizing outside services, Matthew attempted to
change the executives themselves to be more responsive to
change and to suggestions of their personnel.

Influence can be inferred from Matthew's setting of
Vice-Presidenuf fiflaries, moving Vice-Presidents to divisions
needing change, controlling the structures with which they

worked, changing the executives themselves, all with the

181

support and encouragement of the President and sometimes
fighting the combined influence of all the line executives.

The President entrusted .thn with critical organiza-
tion projects such as mobilization of the war plants. His
office location, size, and title supported these conclusions
about Matthew's influence.

At Manfex, the President basically gave Matthew a
charter of his power and limited it by assuring him of no fu-
ture promotions. Matthew's age was such that the President
would still be in power when Matthew retired so as to enforce
this side of the charter. This would not have been necessary
if there were a lack of influence. This caused a significant
loss of friendship and social interaction. This was ex-

plained by Kahn when he discussed innovative roles.

To a degree the solution works, but with an almost
inevitable cost. The persons who fill these organiza-
tionally created "change“ roles must become change
oriented to fulfill the requirements of the role. Not
to do so would constitute failure; yet in doing so,
such persons are likely to find themselves at logger-
heads with the remainder of the organization-—often
including its largest and most powerful structures.57

 

182

Again, the contrast is clear. This department was
significantly more influential on major organization policies,
promotions and environment than-Assembler and Remco.

These statements and confirmations reinforce the con-
clusion earlier that this is a grand strategy mission. Matthew
significantly influenced top management and its policies on
organization and the work environment, utilizing structural

and human approaches.

Outlet

Otto's office was located in the corporate headquarters
building in a large city. His name was listed on the index.
The office was located next to the President's office (Otto's
secretary and the President's secretary shared the same office)
and across from the Board Chairman's. The office was richly
carpeted, expensively furnished, and large (12' x 14 ). Otto
pointed out that the Chairman wanted him to arrange a larger
one for himself when they were planning the building, but that
he deliberately made it one foot shorter than those of the
line Vice-Presidents.

Earlier in this thesis, some indications of Otto's and
the department's influence were given. First of all, Otto

knew the Chairman, had worked for him as a personal assistant,

183

and later created the department [O-l]. Otto indicated how
closely he knew several vice-presidents [O-l—-Finance, Real
Estate] and how he was involved in the discussion of very
confidential and significantly influential topics [organi-
zation studies and career planning of executives [0—4],
policy decisions affecting division responsibility, long
run planning for the corporation, and promotion at top man-
agement level. "I am the only one present when the President
and the Chairman discuss top-level promotions."

Otto discussed his influence with top executives pri-
marily in political terms. In spite of a previous fifteen
minute discussion of his political strength, he later re-

turned to this point:

[0-9] Well, there is always the possibility of
getting clobbered in a management upheaval. Look at
what happened to that big organization department at
G.E. when Cordiner retired. But people here respect
me, though not all of them like me. If a management
upheaval came, it is only vaguely possible that I'd
be out. Besides, that's no worry. I get offers all
the time. I don't worry about it. On the positive
side, my three ex-bosses will back me. I knew that
the division real estate director would be retiring.
With the large expansion we are undergoing, it needed
reorganization and he asked for us to do a study.

When we agreed, we covered manpower needs including

the new director. We said it needed a more high-

level guy and when asked for a suggestion, I recommended
my boss and he got the job. I suggested my second boss
for the head of a new division and he got it. The

third boss gave me strong backing and so do many of

our clients.

184

Later, in comparing other organization department

directors to himself, Otto said:

[O~lO] The difference between other organization
directors and myself is that they are clearly out of
the political swim. To take a position, the staff man
must take his lumps and fight it out. . . we can be
yes men and dead, or be courageous and get something
done. I'm not listened to because I report to the Chair-
man. I never pull rank or drop names, but try to con-
vince people of my position and support the right ones.
One political problem I have is that when you hire
people who want to go up, they will feel self-confident
about their position. You can't take sides just to
take sides-—that's too political. I have good support.
When I was in Planning, I had three Vice-Presidents
who knew what I could do. I don't agree with Matthew
about trying to stay out of politics. I'm the only man
who knows how people feel about each other around here.
I can act at the top level and few organization depart-
ments are really in with top management like I am-—most
of them work at division level.

Otto was confident of his ability to influence other

executives:

[O-ll] We have had trouble using consultants who
tried to use organization theory. We‘ve never had them
back. Organization development is not a bunch of prin-
ciples, it is not a group of psychometric interrelation-
ships, it is a group of people who think about business
realistically. I knew Doug McGregor. You can't organ-
ize by this theory or by organization studies done in
a lab, nor the principles pushed by the N.I.C.B. Or-
ganization planning is a picture of the company today
and five years from today. What you need in this work
is common sense, business sense, not just book knowl-
edge. I have good intuitive sense. I know what's wrong,
after all, I'm forty-four and you develop knowledge about
organization in these years. I know this company and

185

know what organization does to people. If a Vice-
President is not cutting the mustard, restructure the
department to get him out of the way.

Otto described how a staff executive's influence is

limited when discussing his job satisfaction at Outlet:

[0-12] It takes a different type of individual to
get satisfaction from this type of work. You don't get
pats on the head. The fact that you sense and know that
you have the confidence of top management is the satis-
faction. My boss rarely tells me that I'm doing a good
job. I know that from the fact that he calls on me to
answer the types of questions he does and involves me
in these decisions and this gives me satisfaction. Some
people need the type of satisfaction you get from being
in top management like being a Vice-President of Manu-
facturing. They get their names in the paper often and
lots of people tell you you did a good job. I get com-
pliments on what my men do, when they try to hire them
away. It comes to me because the President is on this
floor and I have free communication with him. I get
satisfaction from the fact that Vice-Presidents tell
me about their problems and how my man has gotten to
the nature of the problem.

Yet it is frustrating to work as a consultant or
staff man. You don't always get immediate results--you
see empire builders and try to stop them and when you do
so, as you do in daily life, it hurts your social life.

Oh sure, I have a nice office and view and good
salary increases but these aren't important. My real
satisfaction is knowing the struggle is worthwhile.
You.see your suggestions becoming decisions. You see
your boys regarded as the most effective and aggressive
staff group, getting accomplishments and fighting for
our decisions, but you are also damned as an S.O.B.
Ninety-five percent of organization jobs are not effec-
tive--they are just rubber stamps, job description
writers. So the best ones want to come to work here.
I'm not anti-social, but I don't live where the rest
of the Outlet executives live. You see, I have the

186

same problem the Controller or the President has--
I know inside information and can't reveal it.

Otto feels he is influential, but longs for a posi-

tion where he could make decisions directly:

[0-13] I'm not satisfied just to stay in organi-

tion development work forever. I'm too interested in

the mainstream activities. Counseling is hard work. There
is constant tension and there are never any dull mo-
ments. But a guy needs different kinds of challenges,

so that he doesn't get too personally involved. Some-

one else should take the time to handle fins responsi-
bility soon.

There are problems of handling confidential informa-

tion.

[0-14] In this job, you must be a professional.
You must retain confidences and you can't be an in-
formant for top management even if they want you to be
one. While doing a reorganization of the merchandising
division three to four years ago, the manager wanted
to knOW'what I found out. I wouldn't tell him. The
point is this: I'll help your development but there
are ground rules. If you disagree, I'll help you docu-
ment your position first and then later present my pro-
gram. This is not a political stab in the back. If we
agree, I'll support you.

We will not reveal the details of the study, only
such things as whether we're on target date. When
we're ready to make a presentation, they'll listen-—
maybe disagree and if so take the decision to top man-
agement. We keep confidential records on all execu-
tives. You must be careful.

Otto discussed his frequent luncheons and interac—
tions with Vice-Presidents and seemed rather open in his

discussions of his political strategies.

187

The fact that he has the authority to review and to
some degree control organization and policy changes gives us
some insight into his influence, as does the maintenance of

and growth of his department. As Otto stated it:

[0-15] I review organization changes because they
are important. They must submit them to me prior to
any change, but I try not to appear to control the
change as such. So you see, I'm involved in major re-
organizations here at Outlet. I took the initiative
in suggesting a split between sales and merchandizing,
and in helping reallocate responsibilities of the Board
Chairman and Chief Executive Officer. Just last year,
I was reporting to a Vice—President of Planning and
Research, now I report to the Chairman. I can point
to accomplishments in policy planning, systematic or-
ganization planning, and executive development--all
adding up to the proper administrative atmosphere of
creativity. I have been an effective catalyst for
policy coordination to the divisions. When departments
disagree, I help decide who will handle the new func-.
tion. I am concerned with effective communication, the
proper integration of the individual with the organi-
zation throughout Outlet.

For the most part, key executives are involved.
When I help reorganize a corporate department, we are
working with functions, but not only functions, people
too. I get to know this executive as coveteous or co-
operative, careful or loose with his staff. In any
case, I help evolve a position by sitting down with the
top executive, making sure that there are separate re-
sponsibilities for this new position and a chart position
for it. When we wish to make a change, I go over it
with him and reassign the function elsewhere.

Just the other day, a corporate staff department head
came to me and said that he wanted to add three men to
his department. I said, "Nonsense--this is completely
divergent from your field. It will add to conflicts in
X areas and with Y departments." So you have to clobber

188

a guy like that--he's just an empire builder. Really,
we are dealing with top management problems and one
real concern is to maintain the unusual atmosphere of
an ethical and open environment.

In running this company, the top executives have
given me assignments that show that I as a person have
done well. I am not concerned for my future. I could
easily become a Vice-President of a subsidiary or an
officer. Organization development for me is the type
of position you go in and out of and try to nurture a
relationship as a consultant. You can become interested
in and knowledgeable of the company this way. We must
operate in a special way here to be effective. We can't
be authoritarian. You must be a special kind of guy.

We must follow policy exactly to set an example. We
can't leave early. We must not exceed standard office
sizes or expect special favors. . .

In this kind of work, some men require a lot of ego
satisfaction. Some are political and ambitious. Others
are professional. This staff versus line stuff is all

nonsense. How you act influences and affects the
function.

At Outlet, the evolution of influence followed this
pattern: ‘

The Director. Otto accepted the directorship and
moved the department from organization studies alone to con-
sideration of many problems in the managerial process including
personal growth, value preservation, creativity, and organi-
zation dynamics.

The Superior. The Chairman hired Otto because of
his past dealings and friendship with him and together they

evolved the broader scope for organization development.

189

The Situation. The firm's profits and growth were
inadequate because of a changing market place. Using Otto
as an inside consultant helped Outlet back to much better
growth and profits pictures.

At Outlet, Otto was concerned with monitering and
controlling the direction and growth of the organization
structure of the firm. Outlet was expanding rapidly and
Otto had to see that the growth was a profitable and useful
direction for the firm to go.

Otto was involved in promotion and moving top execu-
tives at Outlet, being the only executive present when this
subject was discussed by the President and Chairman.

Since he was playing the role of devil's advocate, he
brought projects to the President such as changing and evalu-
ation of divisions and functions. He helped make decisions
that involved allocation of resources and functions, such as
determination of warehouse function and centralizing purchasing.

Otto could question the performance of a total func-
tion, such as the effect of the budgeting function on
creativity.

Finally, he was involved in the preservation of the

values of the firm by clarification of the firm's policies.

190

Thus, Otto made some major organization structure
changes but he did not propose a shift such as Extram and
Manfex because he was satisfied with the basic plan. His sug—
gestions of emphasis of new functions to infuse growth (such
as the research function and expanded real estate function)
are examples of major organization emphases.

But of equal importance was the development of top
management talent by effective promotion and mobility patterns
and the evaluation of all changes in light of the corporate
values.

He was reevaluating the company's policies and in-
volved in long-run planning. These indications of influence
on policy were reinforced by his office location, size, and
decorations.

Otto was also involved in the top political struggle
at Outlet. Otto contradicted himself on this subject. At
one point, he criticized his peer directors as being ineffec-
tive because they would not fight the political game. On the
other hand, he criticized the personnel department for "play-
ing too much politics." Here was a man who stated openly
that he was "on the make." He could and did recommend his
friends for promotion to Chairman who apparently trusted

him. In Otto's case, he suggested and was involved in

191

appointing many of the current Vice-Presidents and retiring
others. Is it not possible that he was protecting his future
by helping create his own "team"?

But again, the reporting relationship and policy
changes and growth of influence contrast sharply with the
picture at non-grand strategy departments.

Otto's influence with top management was also con-
firmed by discussions with peer directors too. It was also
confirmed by the fact that several times during the interview,
Otto left to go to the Chairman or Presidents' offices.

One can infer significant influence then from Otto's
office location, his interaction with the top executives of
the firm, growth of his department, and especially from the
decisions and policies he was involved with: changing cor-
porate policies; executive placement; allocation of responsi-
bilities to Vice-Presidents and divisions. All of these indi—

cate a mission of grand strategy.

Tractem

Tractem's corporate headquarters was located in a
small town. It was noted that Thomas' reserved parking space
was located in the Vice-Presidential area. His office was

located in the Personnel Department area in the same building

192

as the President, but not on the same floor. It was moderate
in size (12' x 10'). The departmental offices including the
conference room were located next to Thomas'. Thomas' office
was modestly furnished and was not nearly as imposing as the
Vice—President of Personnel's office.

In the earlier portion of the thesis, some indications
of influence have been presented. In [T-l], the current
President had been the first director of the department and
Thomas was with him at the beginning of the interview. The
mission statement [T-2] indicated that the department is di-
rectly involved in formal control of organization change and
executive preparation.

Thomas' human relations orientation expressed so fre-
quently above insists on the competence of the manager and
the worker to do their job, given an understanding of the
process involved. Yet his mission [T-2] calls for adequate
controls in the forms of charts, costs and files, clearly
defining authorities and responsibilities. So managers must
be brought to his office to have the environment to settle
the problems and the executives must be brought to realize
[T-4] the interrelationships. The extensive use of charts

and forms indicates some concern for control aSpects of the

193

function. In the activities descriptions, [T-S] the terms
"work with management" are used, but so are "insure that each
results in appropriate. . ." [T-S]

Many reports, forms and approvals must be received
and given by the department prior to line action in these
areas.

Several references were made to the process of invit-
ing Vice-Presidents to the Department% conference room and
Thomas would attempt to solve their organization problems

with them. For example:

[T-l7] My satisfaction comes from helping others
work out their problems. For example, recently one
division was having problems. They were losing com-
petitive supremacy in their area and we felt something
was wrong with their management. We asked them to come
in and helped them evolve a new structure and atmos-
phere. They are on their way again. Only time will
tell, but the feedback of how well our suggestions are
working out is our chief satisfaction. It's not like
being a consultant where you are in and out and never
see the long run results. It is a real thrill to come
up with a new way of doing things that permits the
energies of people to be released and used better. We
also move people around and get satisfaction as we see
them doing a new job, and see new people blossom out.

At another point in the interview, Thomas said:

[T-B] When a division has an organization problem,
as they see it, or when I see it, I invite them to come
here for a meeting. When the group is here, I introduce
the problem, then sneak to the back of the room. It is
vital that you make the problem description come out of

 

194

the executive. It is garbled if it comes from me. As

a staff executive, I can't tell them to do anything.

So why try. I get them to talk about it, prod them, and
then help when technical advice is needed, all in a
permissive atmosphere. When I do talk, I spend a lot of
time trying to get them to understand the interrelation-
ships of human activity. This takes time and is not
easy, but luckily we're not bucking tradition here at
Tractem for [the founder] stressed this
from the beginning.

The fact that the department could bring top execu-
tives to its offices [T-l] to work out organization changes
was indicative of its influence. The state of disarray of the
conference room showed that this activity was a continuous
one.

In discussing Thomas' interaction pattern, it has
been pointed out that there existed a close informal relation-
ship with the President, and his recent support of the depart-
ment's mission by doubling its staff gave further evidence of
this.

Thomas gave several illustrations of his relationship

with the President and influence on the company policies:

[T-9] You spoke of what activities and accom-
plishments we had achieved here. As I look back on it,
from 1954-64, I Spent seventy-five percent of my time
with the President and the top‘Vice-Presidents listen-
ing to their organization and people problems and coun-
seling them on how to solve them. We would discuss how
we could organize their division better, how to better
identify, use, and improve the talents of their people.

195

The other twenty-five percent was spent solving major
reorganization problems. In these cases, the executives
knew they needed help and came to 'us for help to change
the structure, relationships, and people.

He illustrated what these meant in terms of action

on policies later:

[T-lO] Last year, when the present President took
over, things really got busy. From his experience with
this department, he knew he should sit down with the
Vice-Presidents and take plenty of time to reach under-
standings of what the spheres of activity for each division
should be involved in, all of this taking place in a
Sharing and permissive atmosphere. The President and I
ask each.Vice-President what responsibilities and au-
thority he thinks he has;and given those, what plans,
objectives, and short run goals he has set to fulfill
his responsibilities. It is vital that this process
begin at the top or it will not be performed at the
bottom.

Furthermore, there must be an understanding in this
group of the interrelationships among their spheres, yet
at the same time, minimizing the overlap wherever pos-
sible. A large part of my time is now Spent as a par-
ticipant counselor in these meetings. Ite a wonderful

position to be in. The President understands the need
for this activity and is making it possible.

This influence was shown in a unique way by an exami-
nation of the company's Annual Report in 1959. For the first
time in its history, the firm included a six-page description
of a function it performed--organization development.
Excerpts from this follow:

[T—ll] In the highly competitive business world
of today, a company's profit-making ability can be only

196

as great as the combined skill of all the men who
manage it--from the newest foreman to the President.
For this reason Tractem has never left the develop-
ment of its management men to chance. Accent on man-
agement training has been a vital part of Tractem
policy for more than fifty years. And the company be-
lieves that all the time and money it has spent in
developing management skill has been wisely used. . .

These are the reasons: The projected growth of
the company will require more and more managers.
Tractem's movement toward more decentralized operation
with individual profit centers generates a need for
managers with an extremely broad knowledge of the busi-
ness. Tractem's policy of promotion from within, wher-
ever possible, brings with it an inherent obligation to
develop talented managers from the company's own ranks.
The increasing complexities of business management are
producing a growing need for the "professional" manager,
equipped with skills unlikely to be gained without di-
rected development. Here is a brief report on how
Tractem acquaints its younger men with modern manage-
ment techniques and passes its management philosophy
on to them.

Gauging the Man

Tractem's program of developing the abilities of
its managers is based on a continuing inventory of
management skills throughout the company. The work
and capabilities of every one of Tractem's five thou-
sand managers are appraised in a formal way each year. .

The qualifications of every manager are recorded by
the organization development department at headquarters.
Thus the individual appraisal system makes it possible
to review Tractem's entire management organization in
an efficient way. Upon request, the corporate staff
group can suggest qualified candidates for any manage-
ment position open anywhere in the company.

Through these appraisals, Tractem is able both to
forecast its management needs of the future and to
make long range plans to fulfill them.

197

[Note--a picture of organization charting was
placed here together with comment--“Management in-
ventory charts aid organization planning.“]

The Tractem Manager's Individual Development

Although management skills and knowledge are most
often gained through day-to-day work experience, they
can be developed in many other concrete ways. A large
number of Tractem managers regularly attend in-plant
training courses. Most attend through their own
initiative. . .

Throughout his career, the Tractem manager has full
opportunity to further his individual development. The
degree of his willingness to work and to learn is his
only limitation. '

The Profession of Management

Both the philosophy behind Tractem's way of doing
business and the basic principles of scientific manage-
ment are being communicated to Tractem managers in
plants and offices everywhere through a new program
called "The Profession of Management."

A genuine innovation, "The Profession of Manage-
ment" was developed by Tractem in collaboration with
Mr. Louis A. Allen to suit the company's particular
needs. It uses the movie-conference method of communi-
cation, hence can be presented to many widely separated
groups at the same time. The opening film pictures all
divisions and subsidiaries of the company, how they op-
erate, and what they produce. It is designed to help
every Tractem manager relate the work of his own unit
to that of all the elements that make up the company.

Six working films then set forth those management
skills which experience has shown can be taught--
planning, organizing, motivating, and controlling--
and how Tractem believes they should be applied. The
showing of each film is followed by conference sessions
in which Specific management principles are applied to
local plant and office problems. The senior management

198

man of each group conducts the conferences. The program
is being presented to managers at all levels of re-
sponsibility, both in the United States and abroad.

With its fresh, stimulating approach, it is already
showing itself to be an excellent management develop-
ment aid. . .

This department's influence seems to be increasing.
As Thomas said:

[T-12] One project we are about to bring to frui-
tion is a meeting in two months of the top ninety exe-
cutives in Tractem. In this, we shall review how we
ought to be organized, as opposed to how we are organ-
ized. To prepare for this, the past month, I've spent
my time getting statements of position on this from all
the Corporate Vice Presidents. This week, in my con-
ference room, the Executive Vice President and three
Vice Presidents were here setting up a proposed new
division with me. Organization is an inherent respon-
sibility of the President and it is most desirable to
have a President who is organization conscious.

Well, I've been working with these top executives
to get their thoughts arranged about: the present for-
malization or our organization, and an understanding
both on the part of the individual and the group of their
leadership potential, and finally, the changes the Presi-
dent and I want to make in the organization structure.

This inside knowledge of organization change and the

Tknowledge of his influence had a cost to it for Thomas.

[T-12] One thing about it, you can't avoid the
kidding. When I come around, they expect changes and
they yell out "Here comes the king maker." What is
worse, is that when you are in a group or gathering,
you are inhibited. You must keep most changes in con-
fidence, for once a breech of confidence is made, you're
sunk. I prepare all the President's announcements, know
what's coming up, and can't comment when people try to
find out. It influences my life. It's a real sacrifice

in a small town like this.

199

I had to give up all close

friends and can't encourage friendships for soon the

time comes when they want to

talk about corporate moves.

They fear for their own future or a friends and may feel

I can influence the process.
and kids know, can't explain
you go to lunch, the tax man
must talk about the baseball
help, and friendships in the
There I can get Specific and
five couples are coming over,

I can't talk shop like they do,

I can't even let my wife
it, for they may slip. ‘When
can talk about his work. I
team. I can only get advice,
organization association.
talk shop. But, like tonight,
four of them are Doctors.
for part of what they

and merchants sell is gossip.

The evolution of influence at Tractem followed the

following pattern:
The Director. Thomas suggested the function and
helped evolve the department to more than the structural approach.

in a conservative company.

The Superior. The present President with Thomas
created the department and was its first director. Since as-
suming the presidency, he has greatly enlarged its scope.
The Situation. The problem of growth of a relatively
small firm in an industry of giants with squeezed profits

and with long tenure management retiring has existed. Organi-

zation development helped it solve some of these problems.
Indications of influence have been given in the data.

Thomas helped the President to restructure this company to a

different approach to its divisions, which Slowly decentralized

the firm. Along the way, Thomas helped in the training and

200

development of the executives who now had more potential
influence in the firm. He substantially changed the firm's
approach to managerial resources and development of execu-
tive talent, held meetings in which division objectives were
set and in which the division was restructured and position
holders assigned.

Clearly, the President's doubling of Thomas' depart—
mental resources did not indicate a lack of influence.

Thomas' office was modest but the department was get-
ting a new suite of offices as it was expanded in size.

The evidence seems clear. The director and his de-
partment have influenced the restructuring of the corporation
since 1956, both with the Presidents and with Divisional Vice
Presidents. They also influence the career development and
promotion of key executives. The department is pursuing a
grand strategy mission and the President is broadening the

,Depertments influence and increasing its size.

Comparison and Analysis of Influence

in the Firms

This chapter has presented the data on the influence
<of the departments. Corollary III found support in the data.

'The continua on influence appears to be as follows:

201

 

 

 

Influence
Grand Strategy Strategy Tactics
Coman
Extram
Manfex
Outlet
Tractem Assembler Remco I
Influenced:
Structural Structural Structural
Policies Policies Policies
Work Environment
Policies
At: Corporate Corporate Unit
Level Level Level

Influence is the process by which an individual or
group induces those with the power to make decisions to change
their policies to agree with their suggestions. The weight
of the influence could be measured by an analysis of the poli-
cies actually changed; the scope of influence is measured by
the range of values accepted and the domain of influence as
the set of individuals (in specific positions) whose opinion
was changed to fit our policy preconceptions.

Most of those who had previously written on this sub-
ject felt that these departments performed menial tasks at the

bottom of the pyramid. But these opinions were not confirmed

202

by their own (or others) empirical or behavioral evidence,
but by their "experience and judgment."

It seems that their judgment may be correct in the
case of the tactical mission. But even in this case, they
did not seem to consider the possibility of the evolution into
a strategic or grand strategy mission. Such an evolution took
place at Extram when Edward mobilized support for his new en-
vironment for that company from a mission of unrelated organi-
zation studies and management courses probably a tactical
mission. An evolution at Outlet took place from organization
studies that could show dollar savings to broader studies in-
volving the managerial processes of the firm. In Manfex, a
department that was primarily management development evolved
into a unit concerned with the development of a dynamic or-
ganization staffed by effective and dynamic position encum-
‘bents. At Coman, Charles waited six months before a customer
appeared. He began at the plant level and performed detailed
sand specialized compensation services but evolved the depart-
rnent into one involved with the changing the'ways Coman or-
¢ganized its human resources. Cases were also presented where
-the department did not evolve. At Assembler, ten years have

passed and if anything, the department is loosing influence.

203

At Remco, three years have passed and Ronald continues his
plant—level organization studies.

There is no question that this evolution involved
combination of factors: a director who can portray the pos-
sibilities of the department, a superior willing to be con-
vinced, and a situation presenting a problem which the
superior and director see as potentially helped by the
department.

What has been shown then is a set of patterns in
'which the directors with a grand strategy mission have evolved
their missions and therefore their rank is high in the firm,
observable because of their close association with their Presi-
dents and top Vice-Presidents, and therefore they maintain a
position of centrality in the firm.

The scope of their influence, and its domain have
been broadened so that they are becoming more useful and help-
ful to top management. The history of ever widening successes
has enabled them to build their influence base widely as
Charles and Edward and Thomas are doing. It seems reasonable
to expect a more influential future. In the case of Otto and
.Matthew, if their "power base" retires, they may be hard
pressed to keep their influence at the same level but are

quite influential at present.

204

Hypothesisll stated that the more closely the
departments approximate the grand strategy mission, the more
effective they will be.

It is felt that this has been demonstrated in this
chapter. As the departments evolved their missions toward
grand strategy, they had the potential to influence top man-
agement. The solutions they presented seemed more meaning-
ful solutions to top management than isolated plant organi-
zation studies. The organization problems mentioned in
Chapter I seem more amenable to solutions presented by a
multi-approach attack than structural analysis alone. This
helps explain the greater scope and weight of influence given
to the department and therefore the greater effectiveness of
-the grand strategy departments. As long as Edward concen-
‘trated on structural analysis alone, he could not formulate
'the comprehensive program of organization change which the
President approved.

Moore's statement that top leaders are not interested

in organization structural analysis alone seems more than ever

true.

 

8 .
Moore, 92. Clt.

205

So, measured by the scope and weight of influence,
the more closely the department approximates the grand strat-
egy mission, the more effective it is.

In the next chapter, the nature of the accomplishments

of the departments will be analyzed.

CHAPTER VI

THE ACCOMPLISHMENTS OF THE DEPARTMENTS

OF ORGANIZATION DEVELOPMENT

This chapter presents an analysis of the nature of
the accomplishments of the departments. Corollary IV of
Hypothesis I predicted that the accomplishments would be
stated and measured differently in the three missions. The
accomplishments of the grand strategy departments will be
stated and measured primarily in qualitative terms. The tac-
tical mission will present accomplishments measured primarily
in quantitative terms. The strategic mission accomplishments
will be a mixture of both. By an analysis of the accomplish-
ments of the departments, it will also be possible to com—
ment on the department's effectiveness. Then, Hypothesis II
can be tested as well.

The chief sources for new data were found in response
to the following questions on the interview Schedules:

Schedule 1: 5; 12; 13; 15; 16; 26; 27; 2

Schedule 2: A; F;.H

206

207

Schedu1e 3: AA; DD;,§§;._;; JJ.

Of course, appropriate data given in earlier chapters will

also be used.

——ww—_

DEPART_M_ENT§ 9g; ORGANIZATION DEVELOPMENT

Remco

It is clear from all of the data on Remco's depart-
ment that it pursues a tactical mission. The accomplish-
ments claimed by Ronald were all quantitively measurable.

When he spoke of his accomplishments, Ronald used

such statements as:

". . cut twenty percent of their personnel. . ." [R-l]

". . . consolidated their facilities into one plant. . ." [R—4]
“. . . cut overlap in this area. . ." [R-4]

". . . I reduced the staff from 173 to 134. . ." [R-S]

Each of these accomplishments can be quantified into
dollar savings. He gave no examples of accomplishments that
'were not quantifiable. At Remco, it is clear what Ronald was
expected to accomplish and at what level. He could Specifi-

cally define his accomplishments in quantifiable terms.

208

Thus, Remco definately fits the model of a tactical
mission in terms of the quantitative measure of his

accomplishments.

Assembler

In earlier chapters, Assembler has been shown to have
a strategic mission department. The accomplishment pattern
of this department was a mixture of qualitative and quanti-
tative accomplishments as predicted in Corollary IV.

Arnold discussed the department's accomplishments

several times. First of all, Arnold said:

[A-2] We help them [the divisions] set up organi—
zation controls, delegation authority . . . sound
organization structure.

The end results of these accomplishments is that the
department produces,with the divisions,charts, manuals,
forms that induce relatively specific results. But the de-
partment itself rarely does studies with the intent of Spe-
cific personnel cuts as was true with Remco. The accomplish-
ments are not as qualitative as that of the grand strategy
missions however.

The only accomplishment he specifically listed was
the implementation of the decentralization program in 1956

[A-l].

209

The others were Simply a listing of the discrete

functions they performed:

the

[A-3] "I meet frequently with the executive com-
mittee when they review their plans."

[A-3] "When top management is considering a plan,

they ask us for a report of the long run implications
II

[A-6] "The department maintains the corporate
organization manuals. . . The corporate instruction
manuals."

[A-7] “We do service work such as keeping their
manuals up to date, checking titles. . . and organiza-
tion studies to consider new structures. . ." Rather
Specific accomplishments could be given in a daily
report for these services.

[A-lO] "All organization changes of a significant
nature must be cleared by uS. . ."

[A-lz] usome of our time is used to review all
organization changes. , on ._

Their accomplishments seem to be only responses to

call of the Policy Manual to duty:

[A-6] "It will issue all policy statements. . . it
will Specify the powers reserved. . ."

[A-6] "The department will issue manuals of proper
nomenclature, position titles, task descriptions. It
will be its responsibility to control organization
changes."

Thus in Arnold's case, he could point to a manual

as an accomplishment.or a set of endorsement or deviance

210

letters with respect to an organization change as evidence
of what was accomplished. The department produces manuals,
policy statements. They are called upon to do some rather
specific activities that are possible to measure to some
degree. Yet they are not as measurable as X people out from
the payroll.

The accomplishments of the department again fit the

strategy mission model.

Coman

From the beginning of the statements at Coman, one
would expect a different kind of accomplishment than was seen
at Remco or Assembler.

The statement of the original mission gives some in-
dication of the focus: "assist in evolving and implementing
sound principles of motivation, management and organization

. ." [C-l] Although initially using Specific functional
activities as modes of operation, it was obvious that their
objective was to influence people to operate a Specific way.
Thus organization development activities were only a means
to an end and this end is only qualitatively measurable.

When speaking of accomplishments per se, we see the

department talking in different terms from the strategic or

211

tactical missions:

[C-2] ". . . creating the conditions such that
group relations are supportive. We are interested in

persuading Coman to change its attitudes to Theory Y
II

The client of the department [C-9] saw some of their

accomplishments as:

". . . Each one tendsto take from them according
to his particular needs . . . such as discovering that
leveling with his people is an effective way of in-
creasing real communications . . ."

When Charles Spoke of the department's accomplish-

ments, he listed qualitatively measurable results:

[C-12] I can summarize our accomplishments as
change in the mode in which Coman operates in the fol-
lowing way. We withhold no information, yet confi-
dential information is as safe with the newest member
of the department as it is with me. In these years
there has never been any misuse of such information.
Even the newest members of the department are fully
aware of the environment in which they are operating.
If there are financial or other problems which might
affect our operation, such problems are freely dis-
cussed. As a consequence, for example, when it becomes
time to budget against a tight year, we have no prob-
lems. When it becomes time to reduce expenditures, to
curtail programs, or to expand them or increase them,
everybody is fully aware of what is going on.

Each man has helped set the departmental objective
and then set objectives for himself which, if achieved,
would contribute to achieving the departmental objec-
tive. The manager is available to him, as is everyone
else, for help, but he sets his own deadline, plans his

212

own work, and works his own way and thus we effectively
plan our work. In communicating and setting the example
for free communication within the department and outside
of it, I have a primary responsibility. If I don't com-
municate, nobody does. If I don't insist that people
communicate, communication falls off and this has been
an important part of our contribution. When we approach
a problem, it is his individual responsibility not to
recommend a solution to me, but to help the people in-
volved to solve their own problems and they can and have
done so. . .

This is the change he feels he brought about in his

department and some others. He continues:

[C-13] What kind of "organizational" behavior has
our program produced? Since there aren't any secrets,
nobody Spends any time ferreting them out and secrets
have no status value. Not a single confidence has ever
been violated. Everyone is reaching for new work and
everyone believes he can do more. Everyone is aware that
there is only so much work and that adding unnecessary
people only lessens the challenge and opportunity for
each individual. Everyone is aware of the fact that
there is only so much money to go around, and that add-
ing unnecessary people (or tolerating substandard work)
simply lessens the financial rewards which are available
for performance and contribution.

Everyone has had to learn to communicate for himself,
and incidentally, to learn for himself that busy execu-
tives appreciate clarity, brevity, honesty and are im-
patient with inconsequential matters. New ideas are
constantly being generated and intergenerated because
each man is interacting freely with others in the depart-
ment and in the Corporation at large. Nobody has to
study me for acceptance. They are far too busy studying
real problems and working with managers to help managers
solve problems. (We don't solve them for them.)

In Short, the organization is alive, dynamic, flex-
ible, and vitally interested in achieving the goals that

213

have been set. The standards of expectation in this
kind of operation are very high. The manager here has

a very positive role. It is his job to be the princi-
pal upward influencer. It is his job to constantly

seek new innovative ways of applying these principles,
not only in his organization but in the larger organiza-
tion.

Looking at our own operation in terms of more con-
ventional results, we can Show examples of actual de-
partmental expenditures Slashed thirty percent in the
first full year of operation. During the first Six
months of operation, the department had one "customer”
on a project basis. By 1961, our department had thirty-
eight projects in operation covering compensation sys-
tems and procedures, organization studies, personnel
and managerial consultation, and pilot applications of
these same principles to line operations. But this did
not seem to be what they considered important. They
felt these accomplishments would flow from their major
accomplishments—-a change in the mode of operations.

Charles then provided examples of functional accom—
plishments. These were contained in his progress report to

Management.

[C-l4] In the area of compensation services, we
see the following:

Review the Exempt Salary Program (including the
Plan) with Corporate, Divisional and
Departmental management to see if it: (a) Is understood;
(b) IS meeting their needs; or (c) Should be changed to
meet a specific need.

 

This objective was not quite completed last year.
Discussions with Division Presidents, Division Salary
Administrators and some General Department Heads indicate
that the range controls and performance guidelines are
becoming better understood at these levels and meeting
needs wherever the program is permitted to function

214

naturally. There is some indication that the control
aspects of the program are not so well understood at
the corporate level. An over-all impression drawn from
discussions with divisional salary administrators and
supported by information analysis is that salary admin-
istration within the operating divisions has improved
remarkably in the last year.

Other specific accomplishments in the area of or-

ganization services were given:

[C-lS] Program Report to Management:

In assisting with organization planning, try to
emphasize that planning organizational relationships
is far more important than the traditional structure
planning. Strive to make managers aware of the well-
documented fact that changing only the structure of an
organization or 'shuffling the boxes on the chart may
change the nature of the problem but is not a prescrip-
tion for better performance. We are encouraged by the
opportunities they have had to participate with various
managers and their organizations in working through
organizational relationships as part of organization
change. Typical experiences has involved changing from
man-to-man to team operations; providing systematic
ways for groups in conflict to mutually explore specific
areas of conflict; and assisting organizations to re-
structure and reorient themselves from the inside out.
We believe that there is room for much more of this in
our current organizational system.

Be especially alert and receptive to managers who
are willing to consider alternative strategies to the
traditional "surprise" approach to changing organiza-
tional structures or assignments. We have had some
very productive experiences in this area. Each Situa-
tion has been different, but all have begun with a
manager who has decided that change is needed and wants
to explore alternative methods of bringing it about.
Different degrees of openness with and advance involve—
ment of the people to be affected have been employed.

215‘

The concensus of the managers has been favorable toward
the results of such experiments.

Devise some practical ways of introducing concepts
to seeking managers and their organizations which will
shorten the time gap between acquiring knowledge and
experimental use of such knowledge in improving or-
ganizational performance. The group has been experi-
menting with several approaches to this problem. So
far, the most practical solution seems to be the intro-
duction of ideas primarily as they might help in the
solution to a real and specific problem. ‘We conclude
on the basis of present knowledge that there are few,
if any, short cuts to understanding and operational
skill in this area.

Encourage managers to communicate the results,
(good or bad)of their experiments and innovations in
management practice. Although some of this has been
done, one of the problems has been the time which must
elapse before a manager and his organization can decide
whether or not the experiment has been successful or
unsuccessful. In at least one case, the organization
involved didn't realize the experiment had fallen Short
of its objectives until they decided to document its
success (after which they started over again and now
feel that they are achieving that which they set out
to accomplish).

Encourage the wide distribution of all kinds of
organization charts, emphasizing their primary value
as a communication device. One of the central dilemmas
here involves the timeliness of charts. A good analogy
would involve the construction of a timetable as com-
pared with the actual Scheduling and running of trains
and planes. Organizations tend to want to delay the
issuance of charts in anticipation of changes which
are always about to occur. As a result, many charts
become badly out of data and ineffective in telling
those who need to knOW‘WhO is formally responsible for
certain activities within that organization. A second
problem involves charts as a reflection of status rather
than as a communication device. The department hopes
to achieve a better mutual understanding with divisions

216

and other general departments in this area during the
forthcoming year. This, in turn, Should help us im-
prove our performance in chart maintenance.

Similar expressions were used with reference to
other services. But notice that these accomplishments are
stated in terms of systems'fl . . better utilization of the

human resource. . . effective way of increasing real communi-

cations. . . or get help in solving some particular problem
. . . they just want to help . . . they are set up to coun-
sel and give assistance. . . we think that we did the job of

reorganization with as little pain as possible with their
help."
In [C-lO] Charles describes change in behavior of
organization members to Theory Y as an accomplishment.
Specific accomplishments were given in [C-l3] to
include:
exempt salary program is understood. . .devise
means to minimize misunderstandings and conflicts
arising from salary authorization. . .devise better
exempt salary data. . .assist managers in applicatkan
of sound salary processes. . .emphasize organization

relationships, not structural planning. . .better
approaches of announcing organization changes

and so on.
Clearly, we are not dealing with the same types of
duties and accomplishments as Ronald's cutting twenty people

at Plant X.

217

Rather, they are qualitative changes that are likely
to pervade the total organization, not just one department,
and are only qualitatively measurable directly. As Charles

stated it in [C-ll]:

. . .we are told our principles are having an
effect. . . But since our role is catalytic. . .
our results can't. . .be measured by anyone but the
people we serve.

Charles presumes that his services will lead to meas-

urable results. [C-ll]
. . .In profit oriented terms, we are convinced that

an organization operating with these principles can
operate with fewer people, lower costs. . . .

But note that these flow from decisions and actions
of the line managers, not of the department. Thus its ac-
complishments are no less real than Remco's but are not di-
rectly measurable in quantitative terms. Coman again is

classified as pursuing a grand strategy mission.

Extram

Although initially the department at Extram focused
on specific activities [E-2] "gave courses on principles of
management. . .published directories, did studies. . ."
later on they focused differently. They discussed different

kinds of accomplishments. Some include:

218

[E-S] ". . .In the last four years, we changed the
organization structure and management of our firms. . .dra-

matic changes in the use of human resource. . .stimulated

the desire for change. .
Edward elaborated on these accomplishments at one

point.

[E-23] I felt our problem was that we had too
many layers of management in the hierarchy. We needed
to substitute the conept that everybody manages for
taking all the problems to "the manager" and then in
each situation, he "solves" the problem. So, I said:
why not take all operating people and teach them to
manage? Three years ago, I started in one plant to
put together a set of concepts to reorganize this com-
pany. We used a set of tools to teach them the basis
of management and problem solving. We used this and
gave the operating people no foremen, no technical
people to solve their problems, and just a few adminis-
trative people--one for finance and personnel and one
for professional skills--research and development, en-
gineering. We Specifically wished to avoid the typical
compartmentalizations of skills. We organized for spe-
cific projects. The whokaplant had only eight adminis-
trative people and the operating people. There were no
foremen. They had only Shift managers, one for each
shift of Six hundred people. This contrasts with the normal
plan of twelve foremen, assistant plant manager, etc.
We operated the same business with one-third less opera-
tors and one-half of the administrators as comparable
plants. This was possible because we taught them how to
manage, to solve their own problems, do their own train-
ing. They don't look to staff now. The operator holds
his own meeting with local employees. But with this
emphasis, we attracted better employees at the same wage
rate. The people are proud of their role, for they are
managing their own work in a fluid organization.

219

After this plant, we began the same program in our
older plants and with the same results, a more flexible
organization and one-half to two-thirds fewer adminis-
trators and managers. Our technology allows greater
freedom to leave thework station. So they can have their
own meetings, solve their own prdblems.

Management's reaction was mixed. We were centrale,
ized and many hoped it would fail so they could "help,
us out." But we sold top management on the savings, by
pumping them with information and facts for one and
one-half years. They gave us a chance but watched us
all the time.

In the plant, we reorganized and cut hier-
archical levels from six to three, and minimized neces-
sary controls. Extram had books full of formal controls.
These procedures just restricted the people's freedom,
but our procedures now just state the intent--not the
steps how to do it. In our newest operation, we have
used thirteen separate buildings to get this independ-
ence and diversification. Our total costs have been
lower, even with higher wages. The unions were very
cooperative. We let turnover take care of excess workers
and the majority were better off. We had an easier time
changing the unionized plants than non-union,because we
had only a few contacts there.

We made these changes by giving in-plant training on
attitudes and beliefs regarding each man being a manager.
Each individual received two weeks of this, but the
real learning took place on the job thereafter. The em-
phasis was to create self motivation and self evaluation..

We did this plant by plant. Then we decentralized
the corporate headquarters once the profit and satisfac-
tion of employee potential was realized by the management.

So we took individualized staff tasks--organization,
management development, compensation--and took them out
of the business of just creating big files--and got them
into the process of changing the corporation. Organiza-
tion as such took its rightful place as an integral part
of this process. It cannot be ignored.

220

In a summary later, Edward said:

[E-24] In the last four years at Extram, we had
to change the organization structure and management
of our firm. We needed dramatic changes in the use of
our human resources. We needed to stimulate within
them the desire to change. Organization is an impor-
tant part of this change process.

Eddie, the Vice-President, Research, started the

interview by saying:

[E-ZS] I agree with everything Edward's doing.
After all, I have been trying to get them to do it for
twenty years. All this company needed was effective
managers and organization and it will be rolling again.
That's what he is trying to do.

Ethelbert said:

[E-26] I couldn't have gotten my division in
Shape without Edward. He helped me move people, get
a better organization, train those who needed it, but
most of all, helped me plan and smooth the change I
needed to make when I took over Six months ago.

These statements of Edward indicate an approach which

is not primarily quantitatively measurable:

[E-22] We minimized the necessary controls. . .
the books full of formal controls and procedures just
restricted the people's freedom. . . total costs were
lower.

So we took individualized staff tasks-organization,
management development, compensation and took them out
of the business of just creating big files and got them
into the process of changing the corporation.

221

Organization took its rightful place as an integral
part of this process--it cannot be ignored, nor is it
just one more project.

We see the results of a whole change in environ-
ment, management, and organization at Extram. . . We
created new beliefs through our training, but. . .we
used devices. . .to create the conditions [for change]
in the training Situation.

Edward had faith in the future of his department.

AS he stated it:

[E-23] Because I believe that organizing and man-
aging is one of the few areas of competitive supremacy
left to most large companies, I assume there will al-
ways be some kind of activity such as ours at Extram.

I also assume that we are relatively in our infancy con-
cerning sophisticated managing. The very existence of
the computer poses more questions than answers concern-
ing organization and management in the foreseeable fu-
ture. The predictions I read about other technological
advances would lead me to conclude that these will have
dramatic effects. Therefore,shrewd companies will con-
tlnue to devote the full time knowledges of some staff
people to keeping abreast of the innovating managing and
organization knowledges which are bound to evolve. I
suppose you could ask if organization development is
profitable? I would guess that it represents the pres-
ervation of the profit oriented business, if it does not
literally represent millions of dollars of profits not
now realized. I think that managing and organization
will become as much of a specialized knowledge as is
engineering supposed to be today and that it will inno-
'vate "administration" to the same degree that we hope
engineering will innovate the manufacturing process—-
for profit.

It is true that some of the accomplishments discussed

by Edward were directly measurable in quantitative terms.

222

But, as was true at Coman, most of the accomplishments
listed by the department at Extram were qualitative. They
believed and their clients believed that quantitatively
measurable results would flow from these accomplishments.

Again, Extram is classified as a grand strategy mission.

Manfex

Matthew was brief in discussing the department's

accomplishments. He stated them as follows:

[m-Zl] As I see it, we are accomplishing a lot.
We are rapidly expanding overseas. At the end of WOrld
War II, we had nothing. NOW”We are taking over these
former affiliates. We produce over 33,000 items, with
complicated problems of product. We had the corporate
identity problem and the conversion to war production
problem. I try to help the President structure the
organization with the right people to help us grow and
prosper. We've prevented getting too set in our ways.
We've gotten the business moving toward profitability
by controlling runaway decentralization. My future
areas will be to continue restructuring the interna-
tional area, reorganize and rename some divisions,
Split up some others. We've been able to change some
of our top managers from egotists to more sensitive
managers. We've audited the organization performance,
checked for symptoms of problems, and helped some.

Most of my requests come from the President. Divi-
sions do call on me for some internal help, but I must
be careful so as not to tip the President's hand. Why,
when I was with the President just now, he Showed me
the list of those he was thinking of promoting to the
position of Vice President of Division
and asked me which one I wanted. I told him

 

223

and he told me to write up the announcement. This is
the kind of work I do around here-—it is politically
dangerous, but very satisfying work.

This summarizes some of his earlier statements such
as:

[M-l] In an older company such as ours, if we've
done anything one way for more than five years, we need a
change . You need an outsider such as me to make changes

. . to build complementary structure.

In [M-6],Matthew integrates his objectives--Struc-
ture, position occupant, growth, training, promotion, plan-
ning into the solution of organization problems.

Notice that Matthew [M-21] identifies with Presiden-
tial and corporate projects rather than identifying specific
outputs per se of the function. "I try to help the President
structure the organization with the right people to help us
grow and prosper. We've prevented getting too set in our
ways and waste both. we've gotten the business moving toward
profitability. . .we've changed some of our top managers. . ."

Rarely will Matthew point to a specific report, speci-
fic manual or Specific cut as one of his accomplishments at

the corporate level. The focus is different.

224

Again, the pattern is clear. The aiding of the
total corporation with better organization and people. Few
if any quantitative measures were used. Manfex fits the

grand strategy mission.

Outlet

The history at Outlet is similar to Extram. Initially,
the department pointed to specific savings and functions
[0-2] but later changed its focus of activities and accom-
plishments. These statements of objective and accomplishment
are not easy to quantify.

[0-2] . . . We're here to support the company as a
whole. . . to picture the company as it is today, where it
will be five years from now so as to help plan the period in
between. . .

[0-2] . . . Our function is the planning of people

. the development of executives and succession. . .

[0-3] . . . We're concerned with change in the or-
ganization, in terms of policy . . . the devils advocate
thinking about problems the company is not covering or han-
dling poorly . . . management needs someone to remind them

of functions it has overlooked. .

225

[0-6] "We help guard our quality image . . . We

feel that the espirit de corps of our employees is unmatched.
. one of my major projects is to revise our policies . . .

keeping this tradition in mind. . .”

[0-4] ”We study more complex questions . . . are we
making decisions the way we ought to . . . communication
effectiveness. . ."

[0-15] "I review organization changes because they
are important. They must submit them to me prior to any
change but I try not to appear to control the change as such."

[0-15] ”I'm an effective catalyst for policy coordi-
nation. . .I help decide who will handle a new function. . .
the integration of the individual with the organization. . .
Really I am dealing with top management problems . . . to
maintain the unusual atmosphere of an ethical and open
environment.”

The accomplishments that flowed from these objectives

are not subject to quantitative measures. Outlet too follows

the grand strategy mission.

Tractem
Although the policy manual calls for potentially spe-
cific activities [T-4] of charts, manuals, policy writing,

Thomas stated department's accomplishments as:

226

[T-6] . . . to make sure that organization changes,
personnel changes, and the dignity of the human being is re-

Spected as our founder wanted. . .

[T-7] . . . Providing the occasion and the place
. . . for the managers to sit down in a permissive
atmosphere and clear up their plans and organization
problems . . . we can't really solve their problems--
we can point the direction . . .; to create the condi-
tions to effectively meld the people and the organiza-
tion so that Tractem can continue to prosper and the
people who make up Tractem can feel stimulated and
satisfied working here. .

Although the duties in [T-S] could be focused on
producing reports and so on, the emphasis in accomplishments
Shows that this was not the purpose.

Thomas gives advice [T-ll], rather than emphasizing
controls. Thomas helps people solve the organization prob-
lems [T-8], finds new ways to do things [T-8], sees people
blossom out [T-8], assists the President [T-7], helps reor-
ganize [T-lS], changes the structure and broadly creates bet-
ter organization [T-lO], and developes people [T-lO] but
these are not quantifiably measurable too easily.

Thomas summarizes the accomplishments:

[T-l4] My satisfaction comes from the knowledge of
the people I placed and organization I molded working
effectively, groups getting satisfaction in their work,
an individual with his problem settled--these offset oth-
er losses. My satisfaction is seeing the new leadership

227

doing well, a good organization--for organization is
the key to success--good organization and people work-
ing effectively to develop the people and seeing the
organization achieving its goals. If I ever got really
unhappy here, I'd move someplace else, but in the same
kind of work there.

Thus Tractem's department too sees its accomplish-
ments in broad terms, too broad to be measured quantitively.
The President approvingly increases the department's size.

Thus Tractem also fits the grand strategy mission.

Comparisons _f the Accomplishments

pf the Departments

The data presented gave the reader a picture of the
degree of Specificity of accomplishments. Thus tactical de-
partments would point to specifically measurable results,
partially for the reasons that they felt compelled to justify
their existence rather regularly and because these men would
be primarily concerned with short-term goal achievement and/or
a subunit of the firm. Since the other two types dealt with
the total firm, the top management would tend to be more con-
cerned with long-term goal achievement than the lower manage-

ment. 'Jhe top management of many firms is well aware that many

228

very real achievements are difficult if not impossible to
measure quantitatively.

The quotations from the departments showed that
Ronald was concerned with Short-term personnel and cost
savings. Grand strategy mission accomplishments included
such matters as changing managerial orientation, changing
the essential method of use of human resource, changing sys-
tems of belief, or protecting such value systems, making the
firm's responses to change more dynamic, changing the broad
preparation pattern for future top management, serving as
an idea stimulant or a devil's advocate.

This is not to say that all departments did not use
the same methods. Most of them did studies, held meetings, ar-
ranged management development conferences, counseled execu-
tives, wrote manuals, issued policies and so on. The differ-
ence is a matter of emphasis and evaluation of importance,
essentially a means-end question. The emphasis given to the
mechanics by the tactical mission shows that what the others
viewed as a means, the tactical views as an end in itself.
Where the other missions saw the studies as helping the unit
to organize now at one point in time and as part of a total
Process that was constantly changing,the tactical approach

seemed to view it as a set of problems "to be solved."

229

Whatever strategy was used, consciously or
unconsciously, grand strategy directors moved their accom-
plishments away from a Situation where they studied a prob-
lem and issued a solution report, just as a management con-
sultant does. They moved to a process where they study the
problem, give a set of solutions, recommend one, train the
participants in the process, and then counsel them as they
solve the continuously changing problem for their depart-
ment. They serve as an information source, a training agent,
a counselor, a stimulant, and in the more critical cases, a
solution agent. The first and last of these are emphasized
by the tactical mission and the strategic mission is between
the two. The predicted differences in accomplishments were
there and the hypothesis supported. On the continua of

accomplishment, we see:

Accom lishment

 

 

 

Grand Strateqv Strategy, Tactigs
Coman

Extram Assembler Remco [
Manfex

Outlet

Tractem

Qualitively Quantitively

Measurable Mixed .Measurable

CHAPTER VII

CONCLUSIONS

In this chapter, the findings of the thesis will be
summarized. A comparison will be made between these find-
ings and the hypotheses to determine the degree to which
the hypotheses were or were not supported. The chapter will
then present hypotheses that bear future investigation.
Finally, the implications to the directors and the firms

to organization theory will be presented.

Findings pf the Thesis

The first hypothesis predicted that this investiga—
tion would reveal three missions and consequent patterns of
activities, interaction, influence, and accomplishment de-
riving from the three missions. The four corollaries speci-
fied the degree to which these factors would vary with each
mission.

Chapters III, IV, V, and VI presented these data and
commented on the degree to which each department studied

fitted the conditions posited in the corollaries. As would

230

231

be expected,there were variations in the degree to which
the departments fitted the predicted pattern for each fac-
tor. These could best be visualized as a set of continua
for each of these factors. (Each department was r
close or very close to the predicted model for grand strat-
egy, strategy, or tactics.

First of all, the findings of the activities factor
will be reviewed. Corollary I predicted that grand strategyI
mission departments would perform structural, human, and
technological activities at the corporate level. Strategic
departments would perform structural activities at the cor-
porate level. And tactical missions departments would per-
form structural activities at the unit level. Chapter III
presented data that described the emphasis of the problems
attacked and the activities pursued by the individual de-
partments and all the departments. The findings of the

individual departments were as follows:

Remco

This department performed structural activities at
the unit level. Its director denied that he used human or
technological activities or work at the levels above the

unit. It clearly fitted the model of tactical mission.

232

Assembler

This department performed structural activities at
the corporate level. Its director stated that they did not
perform human or technological activities, nor did they co-
ordinate closely with the departments who did. There existed
division-level organization specialists who performed these
activities at the levels lower than corporate. The depart-

ment fitted the strategic model.

Coman

The department at Coman performed structural and hu-
man activities at the corporate level. It apparently did
not perform technological activities at the present time.
Therefore, it is classified as a grand strategy mission, be-
cause it clearly performed different activities than those
at Assembler. But it does not fit the grand strategy model

exactly.

Extram

This department performed structural, human and tech-
nological activities at the corporate level. It approximated
1:he grand strategy mission more exactly than any Other in

tlie activities factor.

233

Manfex

This department performed structural and human
activities at the corporate level. It fitted the grand
strategy model similarly to Coman. This department used

consultants for unit-level organization work.

Outlet

The department at Outlet performed structural, human,
and to a small degree, technological activities at the cor-
porate level. The firm had a section which performed these
activities at the unit level in the Personnel Department.

It fits the grand strategy model.

Tractem

This department performed structural and human activ-
ities at the corporate level. It approximated the grand
strategy model to the same degree as Coman and Manfex.

When the departments are placed on the continuum for

the activities factor, the following is found:

234

 

 

 

 

 

Activities
Grand Strategy Strategy Taptics
Extram Coman Assembler Remco
Outlet Manfex
Tractem J

Structural Structural Structural Structural]
Human Human
Technological

Activities Activities Activities Activities
Corporate Corporate Corporate Unit

Level Level Level Level

Secondly, the findings of the interaction factor will
be reviewed. Corollary II predicted that the interaction

pattern of the directors and members would be as follows:

Top Middle Lower
Management Management Management
Grand Strategy High Moderate Low
Strategy Moderate High Low
Tactics Low Moderate High

Chapter IV disclosed reporting relationships and
other measures of interaction. The following patterns were

found to exist:

235

 

Top Middle Lower
Management Management Management

Grand Strategy

Coman High Moderate Low
Extram High Moderate Low
Manfex High Moderate None
Outlet High Moderate None
Tractem High Moderate None

Thus Coman and Extram fitted the model exactly. The
other three did not interact with lower management as
expected.

At Assembler, the pattern found was:top management
(high), middle management (high), lower management (none).
It also did not fit the model exactly, but came closer to
the pattern at Tractem, Outlet, and Manfex.

At Remco, the pattern was as predicted: lower man-
agement (high), middle management (moderate), top management
(low).

The interaction continuum follows:

236

 

 

 

Interaction

GrangiStrateqy Strategy Tactics
Coman Manfex Assembler Remco
Extram Outlet [

Tractem |
Top Management:
High High High Moderate Low
Middle Management:
Moderate Moderate High High Moderate
Lower Management:
Low Low High

Thirdly, the findings about the influence factor will
be reviewed. Corollary III predicted that the grand strategy
department will affect the corporation's structure and work
environment policies. The strategic mission will affect the
policies of the corporation as they affect the corporate or-
ganization structure. The tactical mission will affect the
organization structure of the subunits of the corporation.

Chapter V presented the data that gave support to

the following conclusions:

Remco

This department affected the organization structure
(pf subunits of the firm in some cases. In other cases if

tflueir executives did not wish to accept the department's

237

recommendations, it did not affect the policies. It did
not affect policies above this level in the corporation. So

it fits the tactical model.

Assembler

This department affected structural policies at the
corporate level. But it did not influence directly or indi—
rectly the policies of the work environment. It did not at-
tempt to affect the way in which people worked at the corpora-
tion except insofar as this resulted from structural change.

This department fits the strategic model.

Coman

This department helped reorganize the corporate or-
ganization structure and changed the work environment to a
more permissive one approximating Theory Y. It fits the

grand strategy mission as closely as is possible.

Extram

This department helped reorganize the corporate or-
ganization structure and changed the work environment by
cutting the number of levels in the hierarchy, changing the

methods of goal setting and level of responsibility from

238

supervision to each member of the corporation. It
approximates the grand strategy model as closely as is

possible.

Manfex

This department helped restructure the firm and
changed the work environment by arrangement of personnel
and some Specialized training. In recentralizing, greater
corporate control also affected the work environment. But
changing the environment of work was secondary to greater

control. It fits the grand strategy mission.

Outlet

This department helped restructure some divisions
and functions of the firm. It helped preserve the current
work environment of the firm during policy changes. It fits

the grand strategy mission.

Tractem

This department helped restructure the firm and
helped preserve the current work environment of the firm as

it was restructured. It fits the grand strategy missFon.

terms.

factor:

The influence continuum is as follows:

 

 

 

239

 

Influence

Grand Strategy Strategy Tactics
Coman

Extram

Manfex

|Outlet

Tractem Assembler Remco I
Structural Structural Structural
Policies Policies Policies

Work Environment
Policies

Corporate Level

Corporate Level

Unit Level

Fourthly, the findings about the nature of accomplish-

ments of the departments will be reviewed.

Corollary IV predicted that grand strategy missions

will lie between these two.

would measure its primary accomplishments in qualitative
The tactical missions will measure their primary ac-

complishments in quantitative terms and the strategic mission

Chapter VI presented the data which Showed for the

accomplishments.

240

Remco

It was shown that this department measured its
accomplishments in quantitative terms. Ronald spoke of per-
sonnel cuts and dollars saved as his accomplishments. Remco

fitted the tactical model.

Assembler

Arnold did not speak of his accomplishments in quan-
titative terms. He gave examples of more effective control
and better coordination methods as his chief accomplishments.
These are qualitative measures from which he felt measurable
savings would derive. Actually, then, Assembler measured
its accomplishments primarily in qualitative terms. But its
accomplishments were not of the same order as the grand

strategy missions. It fitted the strategic model.

The Grand Strategy Missions

All five of these departments used qualitative
measures and explicitly or implicitly inferred quantitative
savings would come from their work. Coman spoke of making
the managers aware of behavioral research findings and the
improvement of the climate of interpersonal relations and

communication. Extram talked in terms of better managers

241

and more useful organization structure. Manfex talked of
better control of the corporation, better career development
of managers. Outlet gave examples of his devil's advocate
role and some organization studies. Tractem spoke of a bet-
ter organized and motivated corporation. These accomplish-
ments cannot be measured quantitatively. The department must
attribute to itself some of the corporation's goal
achievement.

A continuum for accomplishments is as follows:

 

 

 

 

Accomplishments
Grand Strategy Strategy, Tactics
Coman
Extram
[Manfex Remco]
[Outlet
Tractem
Assembler
Qualitative Quantitative

If, then, the positions of the seven departments are
summed up for all four factors, the following is what

appears:

 

 

 

242

 

 

 

 

 

 

 

 

Grand Strategy» Strategy Tactics
Activities
Extram Coman
[Outlet Manfex Apsembler Remco
Tractem
Interaction
Coman Manfex
[Extram Outlet Assembler Remco
Tractem
Influence
Coman
[Extram Assembler Remco [
IManfex I
Outlet
Tractem
Accomplishments
Coman
Extram
Manfex Remco I
|0utlet |
Tractem
Assembler
§Eflfl2£¥
,Manfex Assembler Remco _]

[Extram ggman
[ Outlet

 

Tractem

243

The summary shows that only Extram and Remco fitted
the models for all four factors exactly. Assembler fitted
the strategic model primarily in that two of the four were
as predicted and the third was very close.

Coman and Outlet met three of the four factors ex-
actly and the fourth was close. Tractem and Manfex met two
of the four factors exactly and the other two were close.
These closely approximated the grand strategy model then.

It has been shown that the departments studied fitted
the models posited in Hypothesis I and the four Corollaries
moderately well.

What then of the second hypothesis? Was it true that
the closer the departments approximated the grand strategy
mission, the more effective they would be? The measurement
for effectiveness was statements and behavior of the depart-
ment's superiors. This hypothesis was supported both
negatively and positively.

Negatively, the two non-grand strategy departments
had not been given greater authority or scope. In fact, they
had slipped.

Remco had not made any progress in its attempt to
attack the more significant organization problems there. So

significant was this to Ronald that he was leaving the finm.

aV‘

J",

_.l‘l

244

Assembler had not increased the scope of its
operations and had lost its direct relationship with the
President. This caused great dissatisfaction with Arnold
and he had requested a transfer to another position. This
was accomplished and he now is in a different department.
Arnold's superiors could not have thought him too effective
to restrict his Scope and to place an added reporting level
between them.

The grand strategy missions, however, had a differ-
ent set of results. At Coman, Charles was now reporting to
the President, had increased his work from unit level in
1959 to total corporate reorganization in 1966. He also was
changing the work environment to the Theory Y Model. At
Extram, Edward was no longer giving management courses and
doing plant-level organization studies. Instead, he was
dealing with the President, decentralizing the firm, and
changing its work environment.

Matthew was involved in top level corporate appoint-
ments and recentralizing the firm, instead of just running
management development courses.

Otto was now reporting to the Chairman and studying

corporate policies and the climate of creativity at his firm,

245

instead of reporting to a Vice-President and studying the
purchasing department.

Thomas was now involved in a reorganization of the
firm, reporting informally (for the present) to the Presi-
dent who was the former director of organization develop-
ment. The President was doubling the size of the department
to be better able to carry on its enlarged activities.

It seems reasonable to conclude that the statement
of Hypothesis II has been supported very strongly by the evi-
dence presented in this thesis.

Thus, the thesis has shown that the comments of most
of the literature and of the visited consultants need to be
modified. It has shown that these departments can perform
services for the firm which are useful to the firm on a con-
tinuous basis by people who have the knowledge of the techni-
ques and of the firm as well. They aid the top managers in
implementing the desired policies affecting the organization
structure and the managerial environment of the firm. They
can and do serve as captive consulting agents for top manage-
ment and make themselves available to divisions for special
projects, normally attempting to train division personnel in

solution of their own operating problems.

246

As is often the case, the commentators were no doubt

attempting to generalize their impressions of this function

from a few experiences. It is hoped that this study showed

useful differentiation of the function into three meaningful

and internally consistent patterns based upon their missions.

Potential Hypotheses

Several hypotheses are worth examining in the future.

First of all,

it would be interesting to know if there is a

relationship between the existence of a department and vari-

ous conditions existing in the firm. Factor analysis could

be used for the following set of conditions:

An organization development department will be used

more, located higher in the structure, and will exercise more

influence:

(a)

(b)

(c)
(d)
(e)
(f)

The

The
and

The

The

The

The

more diversified is corporate product line;

more growth has been derived from mergers
acquisitions;

greater the number of personnel;
more recently the firm was founded;
more recently the industry was founded;

more recently the present executive group

entered the firm;

247

(g) The more the executive group uses staffs
for other processes;

(h) The more receptive the firm is to organization
change;

(i) The more concerned the firm is with member
satisfaction;

(j) The greater number of firms in the industry
which have departments;

(k) The more violent the swings in profit cycle;

(1) The more developed the formal planning process
is in the firm;

(m) The greater shortage of good executives is
perceived to be.

Secondly, the processes discussed in this thesis
could be expanded to consider some of the following
hypotheses:

l. The primary activities performed and emphasized
by departments of organization development with a grand strat-
egy mission were . . . with a strategic mission were . . .
with a tactical mission were . . . (To test the findings on
a larger universe).

2. There is an inverse relationship between the ex-
clusive emphasis on the structural approach and activities,

and influence with top management.

248

3. "Top management is most likely to be influenced
by directors of organization development, the greater is the
emphasis of the total corporate problems and use of all ap—
proaches, for the problem will appear more significant to
top management."

4. The greater the emphasis of control by the de-
partment, the greater the loss of social interaction by the
director in the firm.

Others could be developed to validate the findings

of this research on a larger sample.

Implication pf This Research for Departments

_f Organipation Development

It is difficult to trace cause and effect through
the various factors that complete the patterns. If inter-
action potential increases, influence can increase. If in-
fluence did increase, was it the result of greater interaction?
Only if it can be shown that in all cases, when interaction
increases, influence increases. But, surely, Assembler is
a case where potential interaction with the President over
ten years did not increase the influence of the department.

These factors are mutually reinforcing, given a Situation

249

that calls for solution by organization means, a receptive
superior, and a creative department director.

If a situation that calls for major organization work
does not exist, the director must plan for the likely condi-
tions that may come about so that he will be prepared for
such eventualities. Such conditions as a profit squeeze, low
growth rate, tight labor market, a government reorganization
may be just the time to propose an organizational solution
to the problem.

This brings the subject of the temporal dimension to
the reader's attention. It seems worthwhile to point out
that this analysis attempted to present the history of the
departments and their present status. But, what of the fu-
ture of these departments? Will there be changes? It is
safe to say that there will be such changes. The Presidents
and leaders of these firms will at some time consider the re-
organization or environmental change as substantially com-
plete. Are they likely to devote equivalent attention and
interaction with the director then? Probably not. Thus,
the missions described are equivalent to a snapshot of a
firm. Over time, it will be interesting to see how influ-
ential the department becomes as it changes to the counseling

role for the accomplished changes.

 

250

Will the departments go through cycles of missions
from tactical to strategic to grand strategy and then re-
verse because of the attention given to the problem as it is
perceived by top management? It is not known at this time.

The second condition required is a receptive Presi-
dent. If the present President is unreceptive (as the prior
one was at Extram, Outlet, Manfex, and Coman), it would ap-
pear that a likely time for the director to propose a change
in his scope of authority would beattize change in the chief
executive officer. They can offer to help him prepare the
organization he wishes to work with. Getting his attention
will be of critical importance and perhaps use of attention
getting seminars as Edward did would be one method. Another
useful one would be to Show a history of successes and sav-
ings from prior analyses. Then propose a major project to
help him get his Presidency started with a noticeable change.
This can appeal to some executives who wish to make their
presence known in the day-to-day world of their corporation.

The third factor is a creative director. The first
two circumstances will be for naught if the director cannot
visualize his potential role in the corporation. If he per-

sists in viewing his role as a set of low-level structural

251

activities, no change can come about. This pattern fits
what Selznick called "the cult of efficiency" pattern in
governmental reorganizations.58

The director must be able to utilize the tools of
administration management of an organization but broaden
them into the leadership tools for an institution. If the
director can Show the President how he can help him become
an institutional leader, by developing ideologies for commu-
nication and self defense (enculturation); if he can Show
the President how he needs a unit to infuse his institution
with values (or protect the present values),59 then he will
be on the way to more effective organization development.
Organization can be just a technical instrument60 or ap-
proaches can be used to build an institution. The department
can help the President with his critical policy decisions of:
recruitment of the type of executive personnel needed for
top management, their training; adequate representation of

the various groups within an organization; and aid the

 

58Selznick,_o_p. cit.

59See Selznick, pp. cit., p. 14.

60See Selznick, pp. cit., p. 21.

252

cooperative process both within and to the outside of the
organization. Selznick says that there are four key func-
tions of leadership: to define the institutional mission
and goals (usually adaptive ones); to give the institution
the embodiment of purpose; to defend the institution's integ-
rity; and to order internal conflict.61 If the director is
creative enough that he can use the structural, human, and
technological approaches at his command to help the top man-
agement in these functions of leadership, the departments
will be effective instruments for their firms and their firms
will be better because of their existence. Traces of these
functions were seen in various grand strategy missions. It
seems reasonable to expect that if they perform these func-
tions for their managements, they need not have wide swings
from significant influence to insignificance. If the reor-
ganization is complete (for the time), other factors need
attention. If they relate only to structural change, when
it is complete, they will revert to a limbo such as
Assembler's department.

The implications are clear. If there is an unre-

ceptive leader at present, attempt to build a history of

 

61See Selznick, pp. cit., p. 62.

253

success and broaden the scope to include the other functions.
If the situation does not call for major reorganization,

many of the other functions just discussed may require at-
tention. If the director is unimaginative, there will be
problems. The President will either have to appoint a dif-
ferent one or some other executive or functional area will
assume these functions. At no point in this research was it
assumed that these departments are the pply_functional areas
which could perform these activities or give this support to
management. No doubt in many corporations, an effective
Personnel Department, Corporate Planning Department, Corpor-
ate Development Department might perform these functions.
What was commented upon was the most likely set of conditions

for the.Qgganization Development Department to be effective.

Conclusions and Implications pp

Organization Theory

In this research, then, the processes existing in
departments of organization development in some American
firms have been explored. In contrast to the opinions of
the consultants visited and many of the writers of the lit-
erature, neither a series of departments who Spent their

time in activities totally unrelated to the mainstream of

254

corporate activities nor a set of high-level staff departments
vitally involved in fill the key decisions of top management,
was found.

What was found was a set of departments with a range
of processes lying along theoretical continua and which fitted
three patterns. Depending upon many circumstances discussed
in the body of this research, the departments could serve in
one of three missions. Based upon these missions, they
would perform certain activities with certain emphases, in-
teract at certain levels and with certain frequencies, in-
fluence specific types of policies and accomplish several
types of results.

Finally, those pursuing the grand strategy mission
were found to be the most effective.

What implications might these findings have to or-
ganization theory? Organization theorists are individuals
interested in studying and improving the operation of organi-
zations. They usually are specialists in management, public
administration, organization sociology, organization psy-
chology, social anthropology, and economics.

Typical topics of organization theory are:

Organization Theory, Typology, and Taxonomy;

255

Organization Methodology;

Organization Design and Social Structure;
Organizational Behavior--Small Group Theory;
Organization Leadership--Motivation-rMora1e;
Organization Decision Making--Policy Formation;
Organizational Authority~~Power--Inf1uence;
Organizational Conflict;

The Organization and Communications;
Organization Control--Group Standards;
Organization and Individual-Fusion;
Organization Change and Improvement; Effectiveness;
Comparative Organizations;

And Many Others.

The findings of this thesis have some relevance to
each of these areas. But the findings seem especially rele-
vant to organization design and social structure; organization
decision making; organization change and improvement and com-
parative organizations. In the latter case, the thesis de-
scribed the agency that is equivalent to those existing in
the United States Air Force, various federal and state agen-

cies, and foreign governments. There could be direct

256

comparisons of orientation and effectiveness. To those
interested in organization change and improvement, the thesis
described an agency which attempts to utilize the findings

of our research and actualize change and improvement. Fin-
ally to those interested in organization design, the thesis
presents data to support use of several structural designs

under various conditions in the firm.

APPENDIXES

APPENDIX A
SUMMARY OF INTERVIEWS WITH CONSULTANTS

In the preliminary stage of this thesis, one Executive
Search Consulting Firm and two Management Consulting Firms
were interviewed to learn more about the history of these
departments and the types of individuals working in them.
It was felt that more could be learned about the department's
activities, interaction, influence, and accomplishments by
interviewing independent agents who performed Similar work.
And, they might be able to contrast their work with those of
the departments. Appendix A is a summary of the two days

spent in interviewing these sources.

Executive Search Firm

The Wall Street Journal regularly has advertisements
offering positions in organization departments. Several of
these advertisements were answered by the author. The speci-
fic advertisement whose source was interviewed, said:
"Organization Planning Specialist--Experienced; also will

assist in general areas of Administration and Benefits.”

258

259

An executive of the firm was interviewed using the following

interview schedule:

(1)

(2)

(3)

(4)

(5)

(6)
(7)
(8)
(9)
(10)

(11)

How often do you receive requests for organiza-
tion department positions? With what other
positions would you compare it?

What kinds of companies ask for organization
people?

When they request one, is it usually a replace-
ment or for a newly created department?

What kinds of backgrounds do the firms require
for this position? Do they usually stress
analytical ability, creativity, or formal
education?

You follow a lot of career patterns. What types
or promotion patterns exist for these Specialists?

What are the job satisfactions? Pay? and so on.
When did you start getting requests for them?
How large are these departments?

What do they do? What do they accomplish?

What is the future of this type of job?

How influential are these men? To whom do they
report?

This consultant answered the questions about the

environment of the positions. But he was reluctant to express

an opinion about the effectiveness of the function.

He stated that he first started receiving requests

for organization department people about three years ago.

260

It was his experience that organization specialists originally
developed from general planning positions. He knew of sev-
eral cases where they had been tax experts, with CPA'S or

law degrees. And in the slack periods, they were aSked to
perform other activities. The earliest such experiences have
taken place in the mid 1940's. Because they were respected
for their analytical ability, they were asked to do planning
work, including organization planning.

The consultant said that requests for these men are
relatively rare. The specifications tend to be for an in-
dividual with a broad background. Therefore, firms often
requested an individual with management consulting experience.
In any case, these men needed a variety of experience in sev-
eral functional areas. Another job specification seemed to
be personality compatibility. Often, the superior he was to
work for would specify a complementary type. Thus if the
superior's background had been accounting and he was a bit
of an introvert, the superior would specify that he wanted
an outgoing individual with a broad background.

The mobility patterns of organization people varied
and depended on the planner ability to capitalize on oppor-
tunities. In several cases they became Assistant to the

President. Then they were given substantial divisions to

261

supervise. It could be an opportunity for an individual to
enter a firm at the top level and do quite well.

The consultant said the beginning salaries tended
to vary from $13,000 - $15,000 range.

He expressed no opinion on their effectiveness or in-
fluence. He believed that this was a function of the

situation in each firm.

The Management Consultinngirms

Two management consulting firms were visited. Sev-
eral executives who performed organization analyses were
interviewed at each firm. The interview schedule for the
consulting firms is as follows:

(1) Let's begin with a broad question to "get the ball
rolling." Why do firms call in consultants such as
yourself when they feel they have problems of
organization?

(2) Do they use your services even if they have their
own organization departments? If so, why?

(3) What problems of organization do you seem to be con-
centrating on these days?

(4) What kinds of studies do you make? What methods of
analysis do you use?

(5) In your opinion, what are the advantages and disad-
vantages of departments of organization development?

(6) Would you describe and rank the five most important
problems of organization you see firms dealing with
today?

-OI.

262

(7) What organization problems have firms come to you
with in the last few studies you did?

(8) Do firms seem to be trying to form specific organi-
zation policies today? Why or why not? Do they use
them after you've suggested them?

(9) Do problems of organization arise at any particular
time or occasion more so than others? (e.g. person-
nel changes, market pressures, in times of good
profits or problem profit pictures).

(10) How often do you find firms which consider future or-
ganization problems when they decide upon policy
changes occasioned by mergers, major product line
additions or reductions?

(11) Do firms consider organization problems in their
long-range planning groups? Why or why not?

(12) Do you see firms asking you to help them in such or-
ganization problem areas as: job design and descrip-
tion, overlapping relationships, functional basis of
organization, authority and delegation, location of
decisions, communication, coordination, committee
authorities, span of control, responsibility for re-
ward or punishment?

(13) Are they concerned with resolving the apparent con-
flicts of delegation vs specialization, line and staff,
small spans of control vs minimum number of hierarchi-
cal levels, costs of coordination, organization stress
from lack of information or ambiguous relationships,
creativity and innovation vs effective formalization,
rational rule making vs the power of exception? If
so, how do they resolve these conflicts?

(14) When you are about to enter a consulting Situation,
how often are you given specific guidelines for the
decisions to be made?

(15) Do you have any basis for evaluation of company's
organization departments? And if so, hOW'WDuld you
evaluate them?

263

(16) Were there other comments you would like to make in
this area?

The consultants were helpful in providing a current
perspective on how and when firms are concerned with organi-
zation problems. These comments helped to modify the inter-
view schedules used when the departments were visited.

Some other findings from these interviews will be

summarized now.

Consultants Opinions about the Usefulness of

Departments of Organization in Firms

In general, the consultants did not feel that the de-
partments provided top management with useful advice on their

organization problems. One consultant said:

These departments are poorly regarded by top
executives. They can't persuade top management, for
they are too closely involved in the day-to-day
operations of the firm. If the bosses think busi—
ness is o.k., or the organizationis o.k., the de-
partments can‘t influence them. They must stay alive
in this firm you know. . .

Three to four years ago, the American Management
Association sold these departments to many companies.
The firms let these departments handle organization
problems way down in the organization structure.
Montgomery Ward has a big organization department
and the company has many problems, but they can't fight
it out up at the top. They are just errand boys for
top management, writing job descriptions. They are

 

 

 

264

not in the mainstream of the business world. They are
not staffed with people with a business orientation and
have no stature with line executives. . .

Too many of these departments are paper work
planning operations. The departments are not effective
because the traditional organization concerns are un-
interesting to top management today. The real issues
are getting the boss "off the hook" in decisions for
promotions. Most internal organization structural
changes are solved by power plays by line executives
and these departments are not influential at times
like that. Although firms should consider organization
problems at the time of acquisitions, mergers, etc.,
they don't because they are using the tactics of tell-
ing present emcumbents that they are to be kept. Two
years later is when the executives make their organi-
zation oves.

Another consultant expressed his opinions as follows:

My opinion is that organization development depart-
ments work primarily at the plant level, organizing the
manufacturing departments for example. I feel that
they are effective at this. But let's face it, they
earn about $15,000 per year and are not likely to in-
fluence a $75,000 a year executive. They are in fact

good in working at the middle levels and below, but
the personal relationship with top management is lack-
ing; at upper echelons, personalities and power poli—
tics are involved and the departments cannot operate at
this level, for they would be digging their own career
grave. It is dangerous to work at that level.

The consultants agreed with most of the statements
from the literature: that organization development was not
performing activities that influenced major policies of the

corporation.

APPENDIX B

INTERVIEW SCHEDULES USED IN THE RESEARCH

The following schedule was utilized in the questioning
of departmental members and directors. Insofar as was pos-
sible, the questions were administered in this order to all
the respondents.

The questions were memorized and responses recorded
in shorthand on answer Sheets prepared ahead of time.

Questions 1-29 were asked in the order given. If the
desired information was voluntarily given prior to asking
a specific question, it was of course omitted. Several of
the questions were designed to overlap as confirmation for
answers given earlier. 1-29 were used with Organization
Department Directors. Questions 3, 4, 5, 9, ll, 12, 13, 14,
15, l6, 17, 19, 20, 21, 22, 23, 26, 27(b)(c), 28, 29, and 30
were administered to department members, with appropriate but

minor changes in wording.

Schedule 1: Directors and Members, Departments

of Organization Development

265

(1)

(2)

(3)

(4)
(5)

(6)

(7)

(8)

266

Let's think back to the time when this department
came into being. What were the circumstances sur-
rounding this event?

To your knowledge, who first brought up the possi—
bility of an organization department here at
company?

 

Who was involved in the decision to create the de-
partment?

How were the first members selected and by whom?

No doubt a lot has transpired since the beginning

of the unit. In general, could you describe the
trends, both ups and downs of the department in terms
of: budget, personnel, facilities, Scope and re-
sponsibility. How do you explain these changes?

Let's talk a few moments now about the people asso-
ciated with your department. Could you review with

me the qualifications of the people you had in the
past, and of those who have left? What are the quali-
fications of your current members?

Let's talk a few moments now about the people asso-
ciated with the department. Could you review with
me who they are/or were: their backgrounds

and qualifications in terms of (a) formal education
of each;(b) conferences and seminars or other spe-
cific training given them; (c) journals they read
regularly; (d) diversity of experience within the
company; (e) experience with other companies; (f)
professional organizations they participate in;

(g) nature of their present responsibilities.

I know this may be hard to answer, but in general,
as far as you are concerned, which line or staff
units do you feel your people would compare with,
favorably, about the same, less favorably?

(9) A. I am interested now in seeing your relationship

within company. Could you tell me
how the department fits into the company's
structure?

 

   

(10)

(ll)

(12)

(13)

267

B. Are you involved with Management Development and

if so, how? (answers desired for 9):

l. The person he reports to.

2. From whom does he seek advice?

3. Are there organization members at operating
level?

4. Who approves budgets, expense accounts, vaca-
tions, staff increases (variation of (A) if
he is vague on (A).)

Of great interest to me is the pattern of preparation

for and exit from the department. What is a good

preparation for this department? How long do members

stay on this job and if they leave, why do they, and

where do they go? (Answers desired to 10):

A. Preparation for department.

B. How long the present members have been there.

C. Where did they go and why?

D. Whether those leaving were promoted or demoted.

E. Did they go to work for other companies in the
organization function?

Is the commitment to this specialty a long term one?
With what other staff or line positions would you
compare it as far as future advancement or development
is concerned?

A position such as yours has a basic philosophy behind
it--and no doubt you've done a lot of thinking about
what organization development is all about in your
company. Could you tell me what objectives you are
trying to accomplish? What ideals you are reaching
for? What are you trying to accomplish in this de-
partment? (Determine the positive, not normative ob-
jectives or mission statement).

A. Just what would you say are the biggest problems
of organization this department faces?
B. Could you give me illustrations of the toughest
problems you have handled recently?
C. How often have you been involved in major reor-
ganizations of this firm and what were the long
run results of these?

(14)

(15)

(16) As

(17)

(18)

(19)

(20)

268

Let's return to the origin of the department. What
were the activities you performed then (the most
important ones)? With value of hindsight, were
these Short run problems?

A.

B.

What activities do you perform now and which are
the most important?
Who performed these duties prior to the existence
of your department?

you look back over the trend of your activities,

what hau3been the changes in emphasis from the be-
ginnings of the unit until now?

Would you take a few problems you worked on recently
and tell me how you went about studying them?

As

we look at each company, we have lots of things

influence the organization they use. Could you tell

me

what are the key factors that gives

 

company its current structure? Does it differ Sig-
nificantly from others in the industry?

You've told me about your activities and thus given

me

some ideas of your problems. Many writers dis-

cuss some recurring problems. I'd like to mention
them now and ask if they are considered important

to
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

It

you here at X and why.

Job Design and Knowledge;
Basis of Organization;
Authority and Delegation;
Decision Making;
Coordination;

Span of Control;
Responsibility;

Identity;

Adjustment of Individual and Organization;
Others I haven't mentioned.

may be hard to answer,'but in general what have

you found the best conditions to be to get best re-
sults when you work with the operating units and
your superior?

(21)

(22)

(23)

(24)

269

A. Are you called upon to audit organization per-
formance?

B. In each of your areas of concern, who would you
say starts the ball rolling on your analyses and
activities?

C. What causes or symptoms are given in each of the
problem areas and by whom?

Though it is difficult to be very Specific on the

nature of your relationships, which of these would

you say you see yourself as predominantly?

A. An advisor in the organization are who when
called upon, can help operating units.

B. A department which has the authority to control
and supervise in organization problems.

C. As an advisor,but when you see problems you try
to discuss it with the operating unit.

D. Provide services to operating units.

E. Combinations of the above.

F. Other relationships.

Most of us at times experience help or hindrance of
various individuals or groups in our work. Whom
would you say have been most helpful or troublesome
in accomplishing your goals?

A. Other staff groups.

B. Superiors.

C. Line executives.

A. How much time do you spend in preparation of your
budget and “selling" it? Some staff groups tell me
they must constantly prove their usefulness. Is
this the case in organization?

B. Do you feel you must show the usefulness and
relevance of your work often to your superiors?

C. What committees do you serve on?

D. Are you able to see line officials easily or what
are the channels? Versus similar staff positions?

D. When executives consider merger or major policy
changes,are organization matters considered?

F. What suggestions for organization changes have
been made to you recently and by whom?

(25)

(26)

(27)

(28)

(29)

(30)

270

A. If your son were interested in staff work and
was a boy who wanted to get ahead, which groups
would you suggest he get experience with?

B. Do you get called upon to offer opinions on or~
ganization changes? To whom and how often?

C. If your superiors were asked to rank the staff
groups of this company in order of their impor-
tance, how highly do you think organization
would rank?

A. How effective do you feel you are in your work?
Do you achieve your objectives with operating
people, your superiors? Why or why not?

B. What feedback do you receive on your departments
work? How?

A. Let's assume a "new broom" came into
company and he decided to cut costs and was con-
sidering eliminating your department. How would
you attempt to persuade him of the usefulness of
organization?

B. Do you feel the average guy at operating level
who could use your departments help knows about
and does use it? Why or why not?

C. What conditions contribute to your effectiveness?
Or what does it take to get what you want done?

D. What is the future of organization departments
here at Company? In industry generally?

 

Think about a Situation recently which when you were
finished, you felt satisfied that you'd accomplished
something. Tell me about it and why you felt you
had accomplished something.

What Organization Developnert Associations do you be-
long to now, in the past, or do you plan to join?
What do you gain from this?

Do you get satisfaction in your job? What kinds?
You are around the company. Would you say others
you know would be anxious to work in the Organizaa
tion Department?

271

Schedule 2: Superior of the Department Director

My interest is to know about Organization Departments

as they are in companies such as yours. I've done all
the reading about what they could be or ought to be. And
so Mr. , I'd appreciate your helping me
understand them as they appear to you as one of your
areas of responsibility. What is the purpose of this
department? What are they asked to do? What's their
responsibility? (To determine the Mission).

Would you give me in your own words, some of the back-
ground reasons as to how this started at Company,
who started it, its general trend and growth from your
point of View?

AS you look at it now, versus the conditions of a few
years ago, are you satisfied with the kinds of people
you have in it, and its reporting relationship or do you
feel it could be more effective in another relationship?

Zulyour experience,what 'as been t'e best source for good or-
ganization men? If they leave this type of work, where
do they move?

Looking at it from the company's point of view, what
activities does it perform for Company? How
important are these? What ought they to do? Which levels
do they work at? At what levels of the company do they
spend most of their time?

As you look at it, or from the company's point of view,
what is relation of Organization Department to:

(1) Other staff groups?
(2) Operating units?

Where do they run into the most friction?
What is the best method of operation for them to use
to accomplish their mission?

AA.

BB.

CC.

DD.

EE.

FF.

272

How often do you see (the Director) and on
what type of problems?

How do people at the executive level feel about the
department?

Do you ever get requests for its help? From whom?

What staff units do you feel it is.m¢st*similar to in
prestige and influence?

Do you see future budget, facilities, personnel changes
in the Department?

How do you evaluate the goal accomplishment of the de-
partment? How do you evaluate your effectiveness in

the organization area? What Special problems do you feel
it has solved or caused? If you had to defend its
existence to superiors, how would you do it?

Schedule 3: Customers of the Department

(Lead in) I've been told you've had some experience with an
organization department. Can you tell me what problems

you were working on at the time and how and why you con-
tacted them or they contacted you? Why does the company
have this department? What is its purpose?

Under what circumstances and when did you first learn
of the availability of organization services here at
company?

 

What kind of people did you deal with from the department?
Did you know what they were doing?

What kind of activities do they perform for
company? for you?

 

Did you present them with a specific problem or was it
broader. If so, in either case, how did they go about
their services?

I gather you saw some of your problems as organization
problems. How did you determine this? (If the department
came to the customer). Did you feel you had organization
problems when the department entered the picture?

273

GG.‘What is your relationship with the department? Did you
call them? Did they visit you? Did you ask for help?
Did they give it?

HH. Do others you know in the company use these services?
In general, how do they feel about it? How important
is this area to you in your work? Examples.

If you wanted to rank staff departments in order of in-
fluence or their ability to get you to move on problems,
hOW'would they compare?

II. In what ways were they helpful?
What didn't they give you?
Did they have "stock answers" and not understand the
day-to-day problems?
Did you really use their advice? (check this with
employees)
‘How did your people like the department? Were they
bothersome, helpful or what?

JJ. Look, I'm here to find out, the way things app. Couldn't
you have done as well without them?
Do other firms you know use these departments?
In general, would you like to work for the organization
department?

APPENDIX C

ACTIVITIES PERFORMED BY DEPARTMENTS

OF ORGANIZATION DEVELOPMENT

ACTIVITIES PERFORMED: THE STRUCTURAL APPROACH

I. Structural Activities: Individual Level (SI)
1. Write job descriptions, specify the duties of task
of a position (SI-l)*
2. Perform job evaluations. (SI-2)
3. Develop position and organization controls. (SI-3)
4. Develop appraisal methods for management.(SI-4)
5. Study the allocation of authority and responsibility

to executives. (SI-5)

D. Structural Activities: Department or Division Level (SD)

1. Analyze the goals and objectives of a department or
division. (SD-l)

2. Draw exact and up-to-date organization charts. (SD-2)

3. Analyze departments/divisions to ascertain if the jobs

are grouped logically. (SD-3)

 

*When referring to an activity in the text, this one will
be called SI-l: S - Structural; I = Individual Level; 1 -
Activity Number 1.

274

11.

12.

13.

14.

15.

276

Propose frequent structural and personnel changes to
prevent the development of ”vested interests”. (SF-11)
Utilize suggestion boxes for proposed organization
changes. (SF-12)

Perform policy audits--to assure the compliance of
division policies to corporate policies.(SF-13)
Prepare policies for executive replacement and exe-
cutive development. (SF-14)

Prepare selection, merit rating, and wage and salary

policies for executives. (SF—15)

2. . TEQ’HNOLOGICAI'.’ APPROACH ACTlVITIES (T)

Analyze the organization information systems; improve
the information flow through computer and other in-
formation process aids. (TA)

Train management in the use of better analytical

tools in their decision making (e.g. computer decision
tools, operations research, and other decision tools.

(TB)

3 . HUMAN APPROACH ACTIVITIES (H)

Individual Level (HI)

10.

275

Analyze physical workflow to achieve more efficient
organizations. (SD-4)

Prepare inventories of available management potential.
(SD-5)

Perform work simplification and work measurement

studies on administrative and clerical duties. (SD-6)

Structural Activities: Total Firm Level (SF)
Write corporate organization manuals. (SF-l)
Develop corporate policy manuals. (SF-2)

Appraise organization titles and nomenclature for
uniformity. (SF-3)

Teach techniques of structural analyses of organi-
zation. (SF-4)

AnalyZe communication flow. (SF~5)

Propose structural reorganizations to approximate
an ideal plan of organization. (SF-6)

Develop the ideal organization plan. (SF~7)
Review and approve all structural changes by other
departments. (SF-8)

Audit the span of control at various levels. (SF-9)
Perform organization studies, surveys and audits.

(SF-10).

277

Offer individual counseling to those who are going

to change positions or are having problems adjusting
to the new environment. (HI-l)

Act as ombundsman.(HI-2)

Train individual executives in human relations. (HI-3)
Provide sensitivity training and other methods to make
the individual executive more aware of interpersonal

values. (HI-4)

Group Level (HG)

Hold laboratory seminar training for team development.
(HG-l)

Provide laboratory seminar for intergroup training.
(HG-2)

Provide laboratory seminar training for organizational
goal setting. (HG-3)

Use brainstorming and group meetings to stimulate
organization change ideas. (HG-4)

Give training in interpersonal relations by a variety

of methods. (HG-5)

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f
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