Introduction

This chapter examines the transformation to professional management at Pardee Homes. Its particular emphasis is upon the transition from one type of organizational structure (functional) to another (matrix) as part of the overall transformation.

The focus upon structure is of particular significance, because the experience of Pardee Homes highlights the critical but often neglected role of structure as a key variable in determining organizational growth and success. Typically, the academic literature on organizational structure treats it in a descriptive way rather than as a driver or limitation of organizational success.

Company description and history

Pardee Homes is a multi-regional real estate development company with a focus on developing master-planned communities and building single-family and multi-family homes. It is headquartered in Los Angeles, and has regional offices in southern California (Corona, Irvine, San Diego, and Valencia), northern California (Pleasanton and Sacramento), and Nevada (Las Vegas). In 2006 Pardee Homes achieved revenues of about $2.0 billion from the construction and sale of more than 3,000 units (homes) by approximately 700 employees.

The company was founded in 1921 by George Pardee, Sr., as a builder of custom homes. In 1969 the company was acquired by Weyerhaeuser, a global leader in the forest products industry, and became the largest subsidiary of Weyerhaeuser Real Estate Company (WRECO).

In 2003 Pardee Homes celebrated fifty years of homebuilding in Nevada, and in 2004 it celebrated fifty years of building in San Diego.