Muni Case Working Draft
Muni Organizational Structure:
Applying concepts from the readings, identify the current organizational structure of Muni and explain
why this is the correct designation. Explain if you think the current organization structure is a major
factor behind Muni’s problems or not.
In doing so, answer the question: Would changing the Muni structure be an important step for
improving performance at Muni? In your explanation, you must provide the rationale for your answer.
Cultural Diversity:
Apply Cox's frameworks and concepts to describe Muni as it relates to cultural diversity and how, if at
all, issues related to cultural diversity are contributing to Muni’s problems.
Dimension
Acculturation
Structural Integration
Informal Integration
Cultural Bias
Organizational Identification
Inter-Group Conflict
Exhibit 1
Cox, 1991. P 35
Definition
Modes by which two groups adapt to each and resolve cultural
differences.
Cultural profiles of organization members including hiring, jobplacement, and job status profiles.
Inclusion of minority-culture members in informal networks and
activities outside of normal working hours.
Prejudice and discrimination
Feelings of belonging, loyalty, and commitment to the organization.
Friction, tension, and power struggles between cultural groups.
Conceptual Framework for Analysis of Organization Capability for
Effective Integration of Culturally Diverse Personnel
Dimension of
Integration
Form of
Acculturation
Degree of
Structural
Integration
Integration into
Informal
Organization
Degree of Cultural
Bias
Monolithic
Plural
Multicultural
Assimilation
Assimilation
Pluralism
Minimal
Partial
Full
Virtually None
Limited
Full
Both prejudice
and
discrimination
against minority
groups is
prevalent
Progress on both
prejudice and
discrimination but
both continue to
exist especially
institutional
discrimination
Medium to large
majority-minority
gap
High
Both prejudice
and
discrimination are
eliminated
Levels of
Large majorityNo majorityOrganizational
minority gap
minority gap.
Identification*
Degree of
Low
Low
Intergroup
Conflict
*Defined as difference between organization identification levels between
minorities and majorities
Exhibit 2
Organizational Types
Cox, 1991, p. 37
See Table 3 , Cox p41 for suggestions for MUNI , also see pp
Model Dimensions
I. Pluralism
Objectives:
o create a two-way socialization process
o ensure influence of minority culture
perspectives on core organization
norms and values
II. Full Structural Integration
Objective
o No correlation between culture-group
identity and job status
III. Integration in Informal Networks
Objective
o Eliminate barriers to entry and
participation
IV. Cultural Bias
Objective
o Eliminate discrimination
o Eliminate prejudice
V. Organizational Identification
5.
1.
2.
Tools
Managing/ valuing diversity
New member orientation program
Language training
Diversity in key committees
Explicit treatment of diversity in mission
statements
Advisory groups to senior management
Create flexibility in norm systems
Education Programs
Affirmative Action Programs
Targeted career development programs
Changes in manager performance
appraisal and reward systems
HR policy and benefit changes
Mentoring Programs
Company sponsored social events
1.
2.
3.
4.
5.
Equal Opportunity seminars
Focus Groups
Bias reduction training
Research
Task forces
1.
2.
3.
4.
5.
6.
7.
1.
2.
3.
4.
1. All items from the other five dimension
apply here
2. Survey feedback
3. Conflict management training
4. MVD training
5. Focus groups
VI. Intergroup Conflict
Objectives
o Minimize interpersonal conflict based on
group identity
o Minimize backlash by dominant-group
members
Exhibit 3: Creating the Multicultural Organization: Tools for Organizational Change
Cox. 1991. p 41
What should be done, if anything, to make Muni more culturally diverse - that is key organizational
changes would need to be changed to get the benefits of a diverse workforce and fulfill the democratic
values of a government organization in the United States?
Key Organizational Systems: Thinking in terms of the McKinsey 7-S Model, identify the two most
critical organizational systems you think need to be changed to significantly improve Muni's services
to its customers and citizens.
You should briefly explain what is wrong with each system and how the problem affects the
organization and its performance.
The bulk of your analysis should then focus on explaining why improving the two systems you identify
will significantly improve Muni's ability to fulfill its mission - this will require you to think deeply about
what is the

fundamental purpose of Muni:
o It carried some three quarters of a million riders daily ( Electronic Highway. p1)

what its key services are

how changing a system will ripple through the entire organization and impact the other
organizational dimensions identified in the 7-S Model; and result in an overall better
functioning organization.
Structure and The Muni Case : Checklist Questions for the McKinsey 7-S Framework as Applied to the
Muni Case
Strategy is defined in the McKinsey 7-SModel Framework as a plan developed by a firm to achieve
sustained competitive advantage and successfully compete in the market. Furthermore, the model
states a strong plan is supported by the string vision , mission, and values. (McKinsey, p 4)
Strategy Questions
What is the strategy?
What is the intent to achieve objectives?
How is competitive pressure dealt with?
How are changes in customer demands dealt
with?
How is the strategy adjusted for environmental
issues ?
Muni Response
Structure is defined in the McKinsey 7-SModel Framework represents the way business divisions and
units are organized and included information of who is accountable to whom. In short, structure
represents the organizational chart of the company.
San Francisco Mayor
San Francisco
Board of Supervisors
Municipal Transportation Authority (MTA)
Board of Directors
MTA Citizens’
Advisory Council
Municipal Railway (Muni) General Manager
Facilities Maintenance
Operations
Equipment Maintenance
Diesel Buses
& Trolleys
Light Rail &
Cable Cars
Electronic Hallway. 1996. p 2
Structure Questions
How is the company/team divided?
What is the hierarchy?
Muni Response
Mayor to Board of Supervisors ( appointees) to
MTA Board of Directors (Advised by the MTA
Citizens’ Advisory Council) to MTA supervised by
seven commissioners appointed by the mayor,
and confirmed by the Board of Supervisors, (
City Mobility Manager) to Muni GM to Facilities
DGM ( oversees ways and structure including six
workshops, non-repair equipment and physical
plant used by EM)
and Operations (drivers
and supervisors ) DHM and Equipment
Maintenance DGM (oversees Diesel Buses and
Trolleys and Light Rail and Cable Cars.)
How do the various departments coordinate
activities?
How do the team members organize and align
themselves?
Is decision-making centralized or decentralized?
Is this as it should be given what the organization
is going?
Where are the lines of communication? Explicit
or implicit?
Case Teaching Resources. 1996. P 1
Systems is defined in the McKinsey 7-SModel Framework the processes and procedures of the company
which reveal the daily activities and how decisions are made. This area determines how business is
done and should be a main focus during organizational change.
Systems Questions
What are the main systems that run the
organization? Consider financial and HR systems,
as well as communications and document
storage.
What are the controls and how are they
monitored and evaluated?
What internal rules and processes does the team
use to keep on track?
Muni Response
Shared Values is defined in the McKinsey 7-S Model Framework
Shared Values Questions
What are the organizations core values?
What is the corporate/ team culture like?
How strong are the values?
What are the fundamental values that the
company/team was built on?
Muni Response
Staff is defined in the McKinsey 7-S Model Framework the element that is concerned with that type and
how many employees the organization will need , and how they will be recruited, trained, motivated
and rewarded.
Staff Questions
What positions or specializations are represented
within the team?
Muni Response
Operations – 3,000 Drivers and Supervisors
(Electronic Highway. 1996)
Equipment Maintenance- “800, give or take 200”
(Electronic Highway. 1996) with two subdivisions:
according to vehicle mode: diesel busses and
electric vehicles (trolley busses), and lightrail-vehicles (LRV's) (3).
What positions need to be filled?
Are there gaps in required competencies?
DGM – EM
Skills is defined in the McKinsey 7-S Model Framework the abilities that the firm’s employees perform
well. This includes capabilities and competencies.
Skills Questions
What are the strongest skills represented with
the company/team?
Are there any skill gaps?
What is the company/ team known for doing
well?
DO the current employees/team members have
the ability to do the job?
How are skills monitored and assessed ?
Muni Response
References
Cox, Taylor. 1991. The multicultural organization. Academy of Management Executive, 1991 Vol.5 No. 2
The Electronic Hallway ®. 1996. Case Teaching Resources from the Evans School of Public Affairs
Box 353060 · University of Washington · Seattle WA 98195-3060 www.hallway.org
The Easy Guide to the McKinsey 7SModel. 2022. https://creately.com/blog/diagrams/mckinsey-7smodel-guide/