Organizational Technology

Coordinator & Facilitator

Manoj M Ghadge

Technology

Technology refers to work processes, techniques,

machines, and actions used to transform organizational

inputs (materials, information, ideas) into outputs (products

and services).

• Core technology

• Non-core technology

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The theorists…

1. Joan Woodward

2. Charles Perrow

3. James Thompson

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Joan Woodward

• In the early 1960’s Woodward demonstrated that

organization structures adapt to their technology.

• In categorizing companies into three groups she identified

that production run sizes were linked to increasing levels of

complexity and technological sophistication.

• Technical complexity is the extent of mechanization of the

manufacturing process.

• Scale of technical complexity has 10 categories.

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Meaning(s)

1. Extent of mechanization: extent to which it can be

programmed. It can be controlled and made

predictable.

2. High technical complexity: conversion process is

programmed in advance and fully automated.

3. Low technical complexity: production process primarily

depend on people and their skills and not on machine.

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Technology Categories

1. Unit Production

2. Mass Production

3. Process Production

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Meaning(s)

1. Unit production: score low on the dimension of complexity.

Conversion process is flexible. Can be customized. Relatively

expensive to operate.

2. Mass Production: save money, predictable and efficient.

Production process is controllable.

3. Process Production: conversion process is entirely

automated. Employee role is limited to monitoring the

exceptions. Process is more predictable and more efficient.

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Unit Production

The production of items in single units and small batches;

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Mass Production

The production of large-batch manufacturing;

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Process Production

The production of continuous-process products such as oil and

chemical refiners;

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Designing the ‘‘SERVICE’’ Organization

Service organizations are not necessarily large

Often small locations, close to customers

Service organizations require technical core employees – close to

customer

Service customers interact directly with technical employees

The skills of technical employees need to be high

Employees need knowledge, awareness and interpersonal skills

Decision making is often decentralized

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Technology & Tasks

• Why some technologies are more complex (more unpredictable

and difficult to control) than others ?

• Why the task associated with some technology are more

complex than others ?

• Two dimension determine the complexity in task and technology

– task variability and task analyzability

• The framework on complexity is developed by – Charles Perrow

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Task Variability

Task variability – the number of exceptions –

new or unexpected situations that a person

encounter while performing a task.

When is the task variability is high or low ?

What about efficiency ?

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Task Analyzability

Task analyzability – the degree to which search activity is needed to solve a problem

Task are hard to analyze when … ?

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Four types of “TECHNOLOGY”

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Technology and Structure

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Task Interdependence

Till now, we have learnt how organizational technology affect its choice of

structure and how the complexity of task affect the organizational

structure. But how the relationship among different tasks affect the

structure?

How task interdependence affect organizational structure ?

James D Thompson has an answer for this…

Task interdependence – the manner in which different organizational task

are related to one another.

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Thompson’s Type of “TECHNOLOGY”

1. Mediating technology and pooled interdependence

Mediating technology - is characterized by a work

process in which input, conversion and output activities

can be performed independently of one another.

Pooled interdependence - each part of the organization

contribute separately to the performance of the

organization

Management implications ?

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Thompson’s Type of “TECHNOLOGY”

2. Long-linked technology and sequential interdependence

Long-linked technology - is characterized by a work

process in which input, conversion and output activities

must be performed in series.

Sequential interdependence - means the action of one

person directly affect the action of another.

Management Implications ?

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Thompson’s Type of “TECHNOLOGY”

3. Intensive technology and reciprocal interdependence

Intensive technology - is characterized by a work process

in which input, conversion and output activities are

inseparable .

Reciprocal Interdependence - means activities of all

people and all departments fully depend on each other.

Management Implications ?

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Interdependence and Management Implications

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Structural Implications …

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