NO plagiarism/   only 3 qestions

Q.1 Based on your understanding of Lewin’s planned change model, explain how could the partners of Royce Consulting convince its managers to accept the “hoteling” system regarding the assignment of offices? 

Q.2 Discuss how the organizational culture of Royce Consulting can impede or support the decision for the required changes? 

Q.3 Based on your analysis, what would you predict will be the outcome if the partners proceed with the plan?  

College of Administrative and Financial Sciences

Assignment 1

Deadline: 09/03/2020 @ 23:59

Course Name: Organization Design & Development

Student’s Name:

Course Code: MGT404

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Semester: II

CRN:

Academic Year: 1440/1441 H

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Level of Marks:

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Department of Business Administration

Organization Design and Development- MGT 404

Assignment 1

Marks: 5

Course Learning Outcomes:

· Explain the basic functioning of organizational design approaches and models. (Lo 1.1)
· Identify the different elements and issues of organizations development and creating the need for change. (Lo 1.2 & 2.4)

Assignment Instructions:

· Be sure to use at least three scholarly, peer-reviewed references in support of each answer and also incorporate the key concepts from the course.

Assignment Workload:

· This Assignment comprise of a Case study.
· Assignment is to be submitted by each student individually.

Assignment-1

· Please read the integrative case study entitled as “IT ISN’T SO SIMPLE: INFRASTRUCTURE CHANGE AT ROYCE CONSULTING.” available in the textbook “Organization Theory and Design” 11th edition by Daft, R. and answer the following questions:

Assignment Question(s):

· Q.1 Based on your understanding of Lewin’s planned change model, explain how could the partners of Royce Consulting convince its managers to accept the “hoteling” system regarding the assignment of offices? (2 Marks). (Lo 1.1)
· Q.2 Discuss how the organizational culture of Royce Consulting can impede or support the decision for the required changes? (1.5 Marks) (Lo 1.2 & 2.4)
· Q.3 Based on your analysis, what would you predict will be the outcome if the partners proceed with the plan? (1.5 Marks) (Lo 1.2 & 2.4)

Answers:

A.1

A.2

A.3

518 Integrative Cases

The lights of the city glittered outside Ken Vin-
cent’s twelfth-floor office. After nine years of late
nights and missed holidays, Ken was in the exec-
utive suite with the words “Associate Partner” on
the door. Things should be easier now, but the
proposed changes at Royce Consulting had been
more challenging than he had expected. “I don’t

understand,” he thought. “At Royce Consulting our
clients, our people, and our reputation are what count, so
why do I feel so much tension from the managers about the
changes that are going to be made in the office? We’ve an-
alyzed why we have to make the changes. Heck, we even
got an outside person to help us. The administrative sup-
port staff are pleased. So why aren’t the managers enthusi-
astic? We all know what the decision at tomorrow’s meet-
ing will be—Go! Then it will all be over. Or will it?” Ken
thought as he turned out the lights.

Background
Royce Consulting is an international consulting firm whose
clients are large corporations, usually with long-term con-
tracts. Royce employees spend weeks, months, and even
years working under contract at the client’s site. Royce
consultants are employed by a wide range of industries,
from manufacturing facilities to utilities to service busi-
nesses. The firm has over 160 consulting offices located in
65 countries. At this location Royce employees included 85
staff members, 22 site managers, 9 partners and associate
partners, 6 administrative support staff, 1 human resource
professional, and 1 financial support person.

For the most part, Royce Consulting hired entry-level
staff straight out of college and promoted from within.
New hires worked on staff for five or six years; if they did
well, they were promoted to manager. Managers were re-
sponsible for maintaining client contracts and assisting
partners in creating proposals for future engagements.
Those who were not promoted after six or seven years gen-
erally left the company for other jobs.

Newly promoted managers were assigned an office, a
major perquisite of their new status. During the previous
year, some new managers had been forced to share an of-
fice because of space limitations. To minimize the friction
of sharing an office, one of the managers was usually as-
signed to a long-term project out of town. Thus, practically
speaking, each manager had a private office.

Infrastructure and Proposed Changes
Royce was thinking about instituting a hoteling office
system—also referred to as a “nonterritorial” or “free-
address” office. A hoteling office system made offices

available to managers on a reservation or drop-in basis.
Managers are not assigned a permanent office; instead,
whatever materials and equipment the manager needs are
moved into the temporary office. These are some of the
features and advantages of a hoteling office system:

• No permanent office assigned
• Offices are scheduled by reservations
• Long-term scheduling of an office is feasible
• Storage space would be located in a separate file room
• Standard manuals and supplies would be maintained in

each office
• Hoteling coordinator is responsible for maintaining offices
• A change in “possession of space”
• Eliminates two or more managers assigned to the same

office
• Allows managers to keep the same office if desired
• Managers would have to bring in whatever files they

needed for their stay
• Information available would be standardized regardless

of office
• Managers do not have to worry about “housekeeping

issues”

The other innovation under consideration was an up-
grade to state-of-the-art electronic office technology. All
managers would receive a new notebook computer with up-
dated communications capability to use Royce’s integrated
and proprietary software. Also, as part of the electronic of-
fice technology, an electronic filing system was considered.
The electronic filing system meant information regarding
proposals, client records, and promotional materials would
be electronically available on the Royce Consulting network.

The administrative support staff had limited experi-
ence with many of the application packages used by the
managers. While they used word processing extensively,
they had little experience with spreadsheets, communica-
tions, or graphics packages. The firm had a graphics de-
partment and the managers did most of their own work, so
the administrative staff did not have to work with those
application software packages.

Integrative Case 1.0

It Isn’t So Simple: Infrastructure Change at Royce Consulting*

1.0

*Presented to and accepted by the Society for Case Research. All rights
reserved to the authors and SCR.

This case was prepared by Sally Dresdow of the University of Wisconsin at
Green Bay and Joy Benson of the University of Illinois at Springfield and is
intended to be used as a basis for class discussion. The views represented
here are those of the case authors and do not necessarily reflect the views
of the Society for Case Research. The authors’ views are based on their
own professional judgments. The names of the organization, individuals,
and location have been disguised to preserve the organization’s request for
anonymity.

Copyright 2007 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.

Licensed to:

Integrative Cases 519

Work Patterns
Royce Consulting was located in a large city in the Mid-
west. The office was located in the downtown area, but it
was easy to get to. Managers assigned to in-town projects
often stopped by for a few hours at various times of the
day. Managers who were not currently assigned to client
projects were expected to be in the office to assist on cur-
rent projects or work with a partner to develop proposals
for new business.

In a consulting firm, managers spend a significant por-
tion of their time at client sites. As a result, the office oc-
cupancy rate at Royce Consulting was about 40 to 60 per-
cent. This meant that the firm paid lease costs for offices
that were empty approximately half of the time. With the
planned growth over the next ten years, assigning perma-
nent offices to every manager, even in doubled-up arrange-
ments, was judged to be economically unnecessary given
the amount of time offices were empty.

The proposed changes would require managers and ad-
ministrative support staff to adjust their work patterns. Ad-
ditionally, if a hoteling office system was adopted, managers
would need to keep their files in a centralized file room.

Organizational Culture
Royce Consulting had a strong organizational culture, and
management personnel were highly effective at communi-
cating it to all employees.

Stability of Culture
The culture at Royce Consulting was stable. The leadership
of the corporation had a clear picture of who they were and
what type of organization they were. Royce Consulting had
positioned itself to be a leader in all areas of large business
consulting. Royce Consulting’s CEO articulated the firm’s
commitment to being client-centered. Everything that was
done at Royce Consulting was because of the client.

Training
New hires at Royce Consulting received extensive training
in the culture of the organization and the methodology em-
ployed in consulting projects. They began with a structured
program of classroom instruction and computer-aided
courses covering technologies used in the various industries
in which the firm was involved. Royce Consulting recruited
top young people who were aggressive and who were will-
ing to do whatever was necessary to get the job done and
build a common bond. Among new hires, camaraderie was
encouraged along with a level of competition. This kind of
behavior continued to be cultivated throughout the train-
ing and promotion process.

Work Relationships
Royce Consulting employees had a remarkably similar out-
look on the organization. Accepting the culture and norms
of the organization was important for each employee. The

norms of Royce Consulting revolved around high perfor-
mance expectations and strong job involvement.

By the time people made manager, they were aware of
what types of behaviors were acceptable. Managers were
formally assigned the role of coach to younger
staff people, and they modeled acceptable behav-
ior. Behavioral norms included when they came
into the office, how late they stayed at the office,
and the type of comments they made about others.
Managers spent time checking on staff people and
talking with them about how they were doing.

The standard for relationships was that of
professionalism. Managers knew they had to do
what the partners asked and they were to be available at all
times. A norms survey and conversations made it clear that
people at Royce Consulting were expected to help each
other with on-the-job problems, but personal problems
were outside the realm of sanctioned relationships. Personal
problems were not to interfere with performance on a job.
To illustrate, vacations were put on hold and other kinds of
commitments were set aside if something was needed at
Royce Consulting.

Organizational Values
Three things were of major importance to the organization:
its clients, its people, and its reputation. There was a strong
client-centered philosophy communicated and practiced.
Organization members sought to meet and exceed cus-
tomer expectations. Putting clients first was stressed. The
management of Royce Consulting listened to its clients and
made adjustments to satisfy the client.

The reputation of Royce Consulting was important to
those leading the organization. They protected and en-
hanced it by focusing on quality services delivered by qual-
ity people. The emphasis on clients, Royce Consulting per-
sonnel, and the firm’s reputation was cultivated by
developing a highly motivated, cohesive, and committed
group of employees.

Management Style and Hierarchical Structure
The company organization was characterized by a directive
style of management. The partners had the final word on
all issues of importance. It was common to hear statements
like “Managers are expected to solve problems, and do
whatever it takes to finish the job” and “Whatever the
partners want, we do.” Partners accepted and asked for
managers’ feedback on projects, but in the final analysis,
the partners made the decisions.

Current Situation
Royce Consulting had an aggressive five-year plan that was
predicated on a continued increase in business. Increases in
the total number of partners, associate partners, managers,
and staff were forecast. Additional office space would be
required to accommodate the growth in staff; this would

1.0
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Licensed to:

520 Integrative Cases

increase rental costs at a time when Royce’s fixed and vari-
able costs were going up.

The partners, led by managing partner Donald Gray
and associate partner Ken Vincent, believed that something

had to be done to improve space utilization and
the productivity of the managers and administra-
tive personnel. The partners approved a feasibil-
ity study of the innovations and their impact on
the company.

The ultimate decision makers were the part-
ner group who had the power to approve the con-
cepts and commit the required financial invest-
ment. A planning committee consisted of Ken

Vincent; the human resources person; the financial officer;
and an outside consultant, Mary Schrean.

The Feasibility Study
Within two working days of the initial meeting, all the
partners and managers received a memo announcing the
hoteling office feasibility study. The memo included a brief
description of the concept and stated that it would include
an interview with the staff. By this time, partners and man-
agers had already heard about the possible changes and
knew that Gray was leaning toward hoteling offices.

Interviews with the Partners
All the partners were interviewed. One similarity in the
comments was that they thought the move to hoteling of-
fices was necessary but they were glad it would not affect
them. Three partners expressed concern about managers’
acceptance of the change to a hoteling system. The conclu-
sion of each partner was that if Royce Consulting moved
to hoteling offices, with or without electronic office tech-
nology, the managers would accept the change. The reason
given by the partners for such acceptance was that the
managers would do what the partners wanted done.

The partners all agreed that productivity could be im-
proved at all levels of the organization: in their own work
as well as among the secretaries and the managers. Partners
acknowledged that current levels of information technol-
ogy at Royce Consulting would not support the move to
hoteling offices and that advances in electronic office tech-
nology needed to be considered.

Partners viewed all filing issues as secondary to both the
office layout change and the proposed technology improve-
ment. What eventually emerged, however, was that owner-
ship and control of files was a major concern, and most
partners and managers did not want anything centralized.

Interviews with the Managers
Personal interviews were conducted with all ten managers
who were in the office. During the interviews, four of the
managers asked Schrean whether the change to hoteling of-
fices was her idea. The managers passed the question off as
a joke; however, they expected a response from her. She
stated that she was there as an adviser, that she had not

generated the idea, and that she would not make the final
decision regarding the changes.

The length of time that these managers had been in
their current positions ranged from six months to five years.
None of them expressed positive feelings about the hoteling
system, and all of them referred to how hard they had
worked to make manager and gain an office of their own.
Eight managers spoke of the status that the office gave them
and the convenience of having a permanent place to keep
their information and files. Two of the managers said they
did not care so much about the status but were concerned
about the convenience. One manager said he would come in
less frequently if he did not have his own office. The man-
agers believed that a change to hoteling offices would de-
crease their productivity. Two managers stated that they did
not care how much money Royce Consulting would save on
lease costs; they wanted to keep their offices.

However, for all the negative comments, all the man-
agers said that they would go along with whatever the
partners decided to do. One manager stated that if Royce
Consulting stays busy with client projects, having a perma-
nently assigned office was not a big issue.

During the interviews, every manager was enthusiastic
and supportive of new productivity tools, particularly the im-
proved electronic office technology. They believed that new
computers and integrated software and productivity tools
would definitely improve their productivity. Half the man-
agers stated that updated technology would make the change
to hoteling offices “a little less terrible,” and they wanted
their secretaries to have the same software as they did.

The managers’ responses to the filing issue varied. The
volume of files managers had was in direct proportion to
their tenure in that position: The longer a person was a
manager, the more files he or she had. In all cases, man-
agers took care of their own files, storing them in their of-
fices and in whatever filing drawers were free.

As part of the process of speaking with managers, their
administrative assistants were asked about the proposed
changes. Each of the six thought that the electronic office
upgrade would benefit the managers, although they were
somewhat concerned about what would be expected of
them. Regarding the move to hoteling offices, each said that
the managers would hate the change, but that they would
agree to it if the partners wanted to move in that direction.

Results of the Survey
A survey developed from the interviews was sent to all
partners, associate partners, and managers two weeks after
the interviews were conducted. The completed survey was
returned by 6 of the 9 partners and associate partners and
16 of the 22 managers. This is what the survey showed.

Work Patterns. It was “common knowledge” that
managers were out of the office a significant portion of
their time, but there were no figures to substantiate this
belief, so the respondents were asked to provide data on
where they spent their time. The survey results indicated

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Licensed to:

Integrative Cases 521

that partners spent 38 percent of their time in the office;
54 percent at client sites; 5 percent at home; and 3 percent
in other places, such as airports. Managers reported
spending 32 percent of their time in the office, 63 percent
at client sites, 4 percent at home, and 1 percent in other
places.

For 15 workdays, the planning team also visually
checked each of the 15 managers’ offices four times each
day: at 9 a.m., 11 a.m., 2 p.m., and 4 p.m. These times were
selected because initial observations indicated that these
were the peak occupancy times. An average of six offices (40
percent of all manager offices) were empty at any given time;
in other words, there was a 60 percent occupancy rate.

Alternative Office Layouts. One of the alternatives out-
lined by the planning committee was a continuation of and
expansion of shared offices. Eleven of the managers re-
sponding to the survey preferred shared offices to hoteling
offices. Occasions when more than one manager was in the
shared office at the same time were infrequent. Eight man-
agers reported 0 to 5 office conflicts per month; three man-
agers reported 6 to 10 office conflicts per month. The type
of problems encountered with shared offices included not
having enough filing space, problems in directing telephone
calls, and lack of privacy.

Managers agreed that having a permanently assigned
office was an important perquisite. The survey confirmed
the information gathered in the interviews about managers’
attidues: All but two managers preferred shared offices
over hoteling, and managers believed their productivity
would be negatively impacted. The challenges facing Royce
Consulting if they move to hoteling offices centered around
tradition and managers’ expectations, file accessibility and
organization, security and privacy issues, unpredictable
work schedules, and high-traffic periods.

Control of Personal Files. Because of the comments
made during the face-to-face interviews, survey respon-
dents were asked to rank the importance of having per-
sonal control of their files. A 5-point scale was used, with
5 being “strongly agree” and 1 being “strongly disagree.”
Here are the responses.

Electronic Technology. Royce Consulting had a basic
network system in the office that could not accommodate
the current partners and managers working at a remote
site. The administrative support staff had a separate net-
work, and the managers and staff could not communicate
electronically. Of managers responding to the survey, 95
percent wanted to use the network but only 50 percent
could actually do so.

Option Analysis
A financial analysis showed that there were significant cost
differences between the options under consideration:

Option 1: Continue private offices with some office sharing
• Lease an additional floor in existing building; annual

cost, $360,000

• Build out the additional floor (i.e., construct, furnish,
and equip offices and work areas): one-time cost,
$600,000

Option 2: Move to hoteling offices with upgraded office
technology
• Upgrade office electronic technology: one-time

cost, $190,000

Option 1 was expensive because under the
terms of the existing lease, Royce had to commit
to an entire floor if it wanted additional space.
Hoteling offices showed an overall financial ad-
vantage of $360,000 per year and a one-time
savings of $410,000 over shared or individual offices.

The Challenge
Vincent met with Mary Schrean to discuss the upcoming
meeting of partners and managers, where they would pre-
sent the results of the study and a proposal for action. In-
cluded in the report were proposed layouts for both shared
and hoteling offices. Vincent and Gray were planning to
recommend a hoteling office system, which would include
storage areas, state-of-the-art electronic office technology
for managers and administrative support staff, and cen-
tralized files. The rationale for their decision emphasized
the amount of time that managers were out of the office
and the high cost of maintaining the status quo and was
built around the following points:

1. Royce’s business is different: offices are empty from 40
to 60 percent of the time.

2. Real estate costs continue to escalate.
3. Projections indicate there will be increased need for of-

fices and cost-control strategies as the business develops.
4. Royce Consulting plays a leading role in helping orga-

nizations implement innovation.

“It’s still a go,” thought Vincent as he and the others
returned from a break. “The cost figures support it and
the growth figures support it. It’s simple—or is it? The de-
cision is the easy part. What is it about Royce Consulting
that will help or hinder its acceptance? In the long run, I
hope we strengthen our internal processes and don’t hin-
der our effectiveness by going ahead with these simple
changes.”

1.0

Respondents Sample Rank

Partners 6 4.3
Managers:
0–1 year 5 4.6
2–3 years 5 3.6
4� years 6 4.3

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Licensed to:

• daft05421_0324405421_01.02_frontmatter

Table of Contents
Preface

• daft05421_0324405421_03.01_endmatter

Integrative Cases
Integrative Case 1.0: It Isn’t So Simple: Infrastructure Change at Royce Consulting
Integrative Case 2.0: Custom Chip, Inc.
Integrative Case 3.0: W. L. Gore & Associates, Inc. Entering 1998
Integrative Case 4.0: XEL Communications, Inc. (C): Forming a Strategic Partnership
Integrative Case 5.0: Empire Plastics
Integrative Case 6.0: The Audubon Zoo, 1993
Integrative Case 7.0: Moss Adams, LLP
Integrative Case 8.1: Littleton Manufacturing (A)
Integrative Case 8.2: Littleton Manufacturing (B)
Glossary
Name Index
Corporate Name Index
Subject Index

1. SealedMedia_User: iChapters User