X1

FALL 2020

Course Title: Organization Theory and Design

Course Code: MGMT6473

Quiz No. 1

Course Instructor: DR. SHABANA NAVEED

Section: A1 Program: MS Date: 25-11-2020

Time Allowed: 20 Minutes Maximum Marks: 20

Program Objective:PO1 Course Objective:CO1 Course Learning Objective: CLO1

TO BE FILLED IN BY THE STUDENT

Student Name: Registration No: Sr. No:

Cisco Systems started out as a typical hierarchical organization with a command and control
mindset. Most decisions were made by top managers, and employees were expected to perform their
jobs as directed, obey the rules, and follow formal procedures. That all changed after the dot-com
bubble burst in the early 2000s and Cisco’s stock dropped 86 percent virtually overnight.

CEO John Chambers believed the company needed a new approach to management and
organization design if it was to survive. He knew collaborative teamwork would be required to get the
company growing again. In addition, Chambers thought employees would be more creative, more
productive, and more committed to rebuilding the organization if they had more autonomy and fewer
limitations. So, he essentially threw out the old structures and controls. Now, rather than having
proposals and suggestions sent to top executives for approval, a network of councils and boards that
cross functional, departmental, and hierarchical lines are empowered to launch new businesses. One
board made up of volunteer self-identified “sports freaks” built a product called Stadium Vision, which
allows venue owners to push video and digital content such as advertising to fans in the stadium.
Now a multibillion-dollar business, Stadium Vision came together in less than four months, without the
CEO ever being involved in the decision.

Command and control is a thing of the past, Chambers asserts, with the future belonging to those
companies that build leadership throughout the organization and take a more flexible and organic
approach to design. The organic approach helped Cisco emerge from the dot-com crisis more
profitable than ever and the company has since outperformed many technology rivals.

Q1- The structural design of Cisco has changed from mechanic to organic structure over the period of
time. Do you agree or not. Provide reasons for your answer and analyze the current structure of
Cisco with reference to critical elements of organizational structure. hjkl

Q2- How change in organizational strategic can have impact on organizational structure? Discuss.