inamullah, kardan university organizational theory, design, and change fifth edition gareth r. jones...

Inamullah, Kardan UniversityInamullah, Kardan University

Organizational Theory, Design, and Change

Fifth EditionGareth R. Jones

Chapter 06

Leadership & Technology

1


What is Technology?

Technology: the combination of skills, knowledge, abilities, techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials into valuable goods and services

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Technology and Organization

Technology exists at three levels1. Individual level: the personal skills, knowledge

and competences that individuals possess2. Functional or department level: the

procedures and techniques that groups work out to perform their work and create value

3. Organizational level: the way an organization converts inputs into outputs

Mass production: the organizational technology based on competences in using standardized, progressive assembly process to manufacture goods

Craftswork: the technology that involves groups of skilled workers who interact closely to produce custom-designed products

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Technology is present in all organizational activities:

Input: allows each organizational function to handle relationships with outside stakeholders so that the organization can effectively manage its specific environment

Transformation: transforms inputs into outputs

Output: allows an organization to effectively dispose of finished goods and services to external stakeholders

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5


Technical Complexity: The Theory of Joan Woodward

Technical complexity: the extent to which a production process can be programmed so that it can be controlled and made predictable.

High technical complexity: exists when conversion processes can be programmed in advance and fully automated.

Low technical complexity: exists when conversion processes depend primarily on people and their skills and knowledge and not on machines.

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Programmed technology: a technology in which the procedures for converting inputs into outputs can be specified in advance Tasks can be standardized and the work

process can be made predictable Woodward identified 10 levels of technical

complexity that are associated with three types of production technology:1.Small-batch and unit technology2.Large-batch and mass production technology3.Continuous-process technology


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Small-batch and unit technology Involves making one-of-a-kind, customized

products or small quantities of products The conversion process is flexible, thereby

providing the capacity to produce a wide range of goods that can be adapted to individual orders

Is relatively expensive Scores lowest on the dimension of technical

complexity


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Large-batch and mass production technology

Involves producing large volumes of standardized products

The conversion process is standardized and highly controllable

Allows an organization to save money on production and charge a lower price for its products

Scores higher on the technical complexity dimension


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Continuous-process technology Involves producing a steady stream of output

Production continues with little variation in output and rarely stops

Individuals are only used to manage exceptions in the work process

Tends to be more technically efficient than mass production

Scores highest on the technical complexity dimension


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Technical Complexity and Three Types of Technology

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Technical Complexity and Organization Structure

An organization that uses small-batch technology

Impossibility of programming conversion activities because production depends on the skills and experience of people working together

An organic structure is the most appropriate structure for this technology

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An organization that uses mass production technology

Ability to program tasks in advance allows the organization to standardize the manufacturing process and make it predictable

A mechanistic structure becomes the appropriate structure for this technology

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An organization that uses mass production technology Tasks can be programmed in advance, and the

work process is predictable and controllable in a technical sense

Still the potential for a major systems breakdown

An organic structure is the appropriate structure for this technology

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Technical Complexity and Organizational Structure

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Technological imperative The argument that technology determines

structure Aston studies found that:

Technology is one determinant of structure Organizational size is a more important determinant of

structure

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Routine Tasks and Complex Tasks: The Theory of Charles Perrow

Routine Tasks and Complex Tasks: Perrow’s two dimensions underlie the

difference between routine and non-routine or complex tasks and technologies:

Task variability Task analyzability

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Task variability: the number of exceptions – new or unexpected situations – that a person encounters while performing a task Is low when a task is standardized or repetitious

Task analyzability: the degree to which search activity is needed to solve a problem Is high when the task is routine


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Four types of technology Routine manufacturing: characterized by

low task variability and high task analyzability Craftswork: both task variability and task

analyzability are low Engineering production: both task

variability and task analyzability are high Nonroutine research: characterized by high

task variability and low task analyzability


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When technology is routine, employees perform clearly defined tasks – work process is programmed and standardized Mechanistic structure

Nonroutine technology requires the organization to develop structure that allows employees to respond quickly to manage exceptions and create new solutions Organic structure


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Routine and Non-routine Tasks and Organizational Design

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Task Interdependence: The Theory of James D. Thompson

Task interdependence: the manner in which different organizational tasks are related to one another affects an organization’s technology and structure

Three types of technology Mediating Long-linked Intensive

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Theory of James D. Thompson

Mediating technology: a technology characterized by a work process in which input, conversion, and output activities can be performed independently of one another

Based on pooled task interdependence Each part of the organization contributes separately

to the performance of the whole organization

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Long-linked technology: based on a work process in which input, conversion, and output activities must be performed in series

Based on sequential task interdependence Actions of one person or department directly affect

the actions of another Slack resources: surplus resources that

enable an organization to deal with unexpected situations

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Intensive technology: a technology characterized by a work process in which input, conversion, and output activities are inseparable Based on reciprocal task interdependence

The activities of all people and all departments are fully dependent on one another

Specialism: producing only a narrow range of outputs

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From Mass Production to Advanced Manufacturing Technology

Mass production is based on: Dedicated machines: machines that can

perform only one operation at a time and that produce a narrow range of products

Fixed workers: workers who perform standardized work procedures, thereby increasing an organization’s control over the conversion process

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From Mass Production to Advanced Manufacturing Technology

Mass production: Attempts to reduce costs by protecting its

conversion processes from the uncertainty of the environment

Makes an organization inflexible Fixed automation Expensive and difficult to begin manufacturing a

different kind of product when customer preferences change

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Work FlowMass Production Technology

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Advanced Manufacturing Technology: Innovations in

Materials Technology

Advanced manufacturing technology: technology which consists of innovations in materials and in knowledge that change the work process of traditional mass-production organizations

Materials technology: comprises machinery, other equipment, and computers Organization actively seeks ways to increase its

ability to integrate or coordinate the flow of resources between input, conversion, and output activities

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Advanced Manufacturing Technology

Computer-aided design (CAD): an advanced manufacturing technique that greatly simplifies the design process Computers can be used to design and physically

manufacture products Computer-aided materials management

(CAMM): an advanced manufacturing technique that is used to manage the flow of raw materials and component parts into the conversion process, to develop master production schedules for manufacturing, and to control inventory Flow of inputs determined by customer demand

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Work FlowAdvance Manufacturing

Technology


Advanced Manufacturing Technology

Just-in-time inventory (JIT) system: requires inputs and components needed for production to be delivered to the conversion process just as they are needed Input inventories can then be kept to a minimum CAMM is necessary for JIT to work effectively Increases task interdependence between stages

in the production chain

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Just-in-Time Inventory System

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Flexible Manufacturing Technology

Technology that allows the production of many kinds of components at little or no extra cost on the same machine Each machine is able to perform a range of

different operations Machines in sequence able to vary operations so

that a wide variety of different components can be produced

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Computer-Integrated Manufacturing (CIM)

An advanced manufacturing technique that controls the changeover from one operation to another by means of commands given to the machines through computer software

Depends on computers programmed to: Feed the machines with components Assemble the product from components and move it

from one machine to another Unload the final product from the machine to the

shipping area Use of robots integral to CIM

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