Can Company of Canada
Case 3 Continental Can Company of Canada, Ltd.
Teaching Notes
Copyright © Gareth R. Jones 1994
Synopsis
The case allows an in-depth analysis of a mechanistic structure and allows students to apply theorganizational theory concepts from Chapters 4, 5, and 6. It should be used after Chapter 6, and the TRWSystems case should follow (a two-class sequence) to illustrate the workings of an organic matrixstructure. This sequence exposes the meaning and significance of the mechanistic-organic distinction andprovides an example of contingency theory. CCC is in a stable environment, uses a mass-productiontechnology, has simple tasks, and uses a mechanistic structure, while TRW is a high-tech company,employs highly skilled people, operates an intensive technology in a dynamic, changing environment,and uses an organic structure.
Students should not be asked to provide a written report on this or theTRW case.
These cases should be presented by the instructor to bring out interesting and valuableimplications and protect their teaching value.Continental Can Company of Canada, Ltd. (CCC) is about a routine mass-production organization that isexperiencing conflict between the manufacturing and sales departments. Manufacturing has all the power,and managers are rewarded for reducing costs and increasing efficiency. They have no incentive to beresponsive to the needs of the sales department. Sales are declining somewhat and quality is going down.The issue is how to change the way the company operates and improve its effectiveness.
Teaching Objectives
1. To use organizational theory concepts to analyze an organization.2. To show the design choices that create a mechanistic structure.3. To link organizational design to the contingency approach.4. To demonstrate a classic example of production-sales conflict.5. To show the power of a budget in shaping expectations and behavior.Use this case after United Products, Inc. or Bennett’s Machine Shop. It takes about an hour to
Teaching Notes
Copyright © Gareth R. Jones 1994
Synopsis
The case allows an in-depth analysis of a mechanistic structure and allows students to apply theorganizational theory concepts from Chapters 4, 5, and 6. It should be used after Chapter 6, and the TRWSystems case should follow (a two-class sequence) to illustrate the workings of an organic matrixstructure. This sequence exposes the meaning and significance of the mechanistic-organic distinction andprovides an example of contingency theory. CCC is in a stable environment, uses a mass-productiontechnology, has simple tasks, and uses a mechanistic structure, while TRW is a high-tech company,employs highly skilled people, operates an intensive technology in a dynamic, changing environment,and uses an organic structure.
Students should not be asked to provide a written report on this or theTRW case.
These cases should be presented by the instructor to bring out interesting and valuableimplications and protect their teaching value.Continental Can Company of Canada, Ltd. (CCC) is about a routine mass-production organization that isexperiencing conflict between the manufacturing and sales departments. Manufacturing has all the power,and managers are rewarded for reducing costs and increasing efficiency. They have no incentive to beresponsive to the needs of the sales department. Sales are declining somewhat and quality is going down.The issue is how to change the way the company operates and improve its effectiveness.
Teaching Objectives
1. To use organizational theory concepts to analyze an organization.2. To show the design choices that create a mechanistic structure.3. To link organizational design to the contingency approach.4. To demonstrate a classic example of production-sales conflict.5. To show the power of a budget in shaping expectations and behavior.Use this case after United Products, Inc. or Bennett’s Machine Shop. It takes about an hour to