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Types of Change. Anticipatory. Reactive. Importance of Timing. 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.

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Types of Change

Anticipatory

Reactive



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ALLENTOWN MATERIALS CORPORATION (A)

Harvard Business School

Case Study


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Performance Gaps

  • Profitability Poor

  • Problems in Developing New Products

  • Low Morale

  • Organization Not Pulling Together


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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


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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


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Organizational Problems

  • No Common Agreement About Criteria of Performance

  • Marketing Seen As Important, But Not Competent--Low Influence

  • Product Development Meetings Are Ineffective


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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


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Leadership Issues

  • Death of Joe Bennett

  • New G.M. Has Different, Less Directive Style

  • New G.M. Not Confronting


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People

  • High Expectations for Growth and Advancement

  • New Managers Brought in by G.M. From Traditional Glass Business


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Congruence Model of Organizations

Environment

Resources

History

System

Unit

Individual


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Congruence Model of Organizations

Informal System

Environment

Resources

History

System

Unit

Individual

Work

Formal

System

Strategy

People