The structural frame emphasizes goals, specialized roles, and formal relationships. Structures--commonly depicted by organization charts--are designed to fit an organization's environment and technology. Organizations allocate responsibilities to participants (division of labor) and create rules, policies, procedures, and hierarchies to coordinate diverse activities. Recent years have witnessed remarkable inventiveness in designing structures to emphasize flexibility, participation, and quality. Dramatic changes in technology and the business environment have rendered old structures obsolete at an unprecedented rate, spawning a resurgence of interest in organizational design. Pressures of globalization, competition, technology, customer expectations, and workforce dynamics are causing organizations worldwide to rethink and redesign structural patterns.
Strategy change: During Grove's tenures, the companies just focus on the core PC business, Otellini reorganized into product areas. Instead of remaining focused on PCs, he's pushing Intel to play a key technological role in a half-dozen fields, including consumer electronics, wireless communications, and health care. And rather than just microprocessors, he wants Intel to create all kinds of chips, as well as software, and then meld them together into what he calls "platforms." Intel's goal: to provide total packages of chips and software to makers of laptops, PCs, cell phones, and medical gear. Technology change: Viiv (rhymes with "alive") is the name of a new chip for home PCs, designed to replace your TiVo, stereo, and, potentially, cable or satellite set-top box. It will be able to download first-run movies, music, and games, and shift them around the home. Intel also will launch a set of notebook PC chips under the three-year-old Centerino brand, as will as so-called dual-core chips, which will put two processor cores on one sliver of silicon. The new brand "core" will be put on products that don't meet the specifications of the Viiv or Centrino platforms. The effort is winning high-profile support. In august, Intel announced it would dump its old architecture in favor of lower-power chips in 2006.
The human resource frame, based particularly on ideas from psychology, sees an organization as much like an extended family, inhabited by individuals who have needs, feeling, prejudices, skill, and limitations. They have a great capacity to learn and sometimes an even greater capacity to defend old attitudes and beliefs. From a human resource perspective, the key challenge is to tailor organizations to people--to find a way for individuals to get the job done while feeling good about what they are doing.
Otellini has reorganized the company top to bottom, putting most of its 98,000 employees into new jobs. He created business units for each product area, including mobility and digital health, and scattered the processor experts among them. He has also added 20,000 people in the past year. To bolster the push, Otellini is looking to recruit more execs from outside the company. Many of the new employees he's bringing on aren't typical Intel hires either. They include software developers, sociologists, ethnographers, even doctors to help develop products. Like Kim who had led Samsung's marketing and helped build it into a hot global brand, Bern Shen, a doctor who practiced internal medicine for 15 years, Steven Gray, the Nokia Corp. veteran.
The political frame, it sees organizations as arenas, contests, or...