Generally, the structure in traditional organizations is top-heavy, hierarchical, and bureaucratic (Rigg, 1992, p. 13). Michael Rigg, an industrial engineer with Fluor Daniel who addresses issues of organizational structure, observes that studies indicate these traditional structures tend to prevail in stable environments where the production technology requires a large number of line workers. However, although it may be appropriate in such environments, it leads to stratification because these structures reduce individual control and negatively affect worker motivation. People in higher-level positions may perceive themselves to be "more important" to the organization than those at lower levels and prevent effective information sharing, cooperation, and collaboration (LeBlanc & McInerney, 1994, p. 74). These overly vertical structures cause competition, as employees race to climb to the top of the hierarchy (LeBlanc & McInerney, 1994, p. 74).
Rigg suggests instead an organization based on teamwork and an analysis of the case of the black-and-white film division of Rochester, New York-based Eastman Kodak offers support for his suggestion. At the end of the 1980s, the black-and-white film division was largely regarded by employees as the worst place in the company to work (Team Zebra, 1994, p. 57). Although the division was responsible for generating 7,000 products from 250 product lines it was actually losing money for the company. It suffered from budget overruns, huge inventories, waste, poor deliveries, and late delivery of products. Finally, in August 1989, the parent company gave the division 18 months to turn around its financial performance or stop making product (Team Zebra, 1994, p. 57).
Analysis of the Organizational Structure
Today, the black-and-white division--nicknamed Team Zebra--is one of Kodak's leading business units in product quality, customer satisfaction and overall operating efficiency (Team Z...