Types of Change
Incremental
Discontinous
Anticipatory
Innovation
Redirection
Adaptation
Overhaul
Reactive
Importance of Timing
Discontinuous
Change
Incremental
Change
Equilibrium
ALLENTOWN MATERIALS
CORPORATION (A)
Harvard Business School
Case Study
Performance Gaps
•
•
•
•
Profitability Poor
Problems in Developing New Products
Low Morale
Organization Not Pulling Together
External Environment
• Change From Military to Commercial
Markets
• Increased Price Competition & Cost/Price
Squeeze
• Need to Develop New Products
• Increased Demands for Service
• High Degree of Uncertainty &
Unpredictability
Organizational Problems
• Conflicts Between Functions
• Poor Coordination
• A Culture Where Conflict Is Not
Confronted
• A History of No Teamwork at the Top
• No Clear or Agreed Upon Strategy
Organizational Problems
• No Common Agreement About Criteria of
Performance
• Marketing Seen As Important, But Not
Competent--Low Influence
• Product Development Meetings Are
Ineffective
Organization Design Issues
• Moved HQs From Barnett to Allentown
• Marketing Role Not Clearly Understood
• Manufacturing Measured on Profit, but
Unable to Control Unit Costs
• Separation of Sales & Marketing
• Coordination Through Top of Organization,
--No Other Mechanisms
Leadership Issues
• Death of Joe Bennett
• New G.M. Has Different, Less Directive
Style
• New G.M. Not Confronting
People
• High Expectations for Growth and
Advancement
• New Managers Brought in by G.M. From
Traditional Glass Business
Congruence Model of Organizations
Inputs
Environment
Outputs
System
Resources
Unit
History
Individual
Congruence Model of Organizations
Informal
System
Inputs
Outputs
Environment
Resources
System
Strateg
y
Formal
System
Work
Unit
History
Individual
People