Inamullah, Kardan UniversityInamullah, Kardan University
Organizational Theory, Design, and Change
Fifth EditionGareth R. Jones
Chapter 06
Leadership & Technology
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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 and Organization
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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Technology and Organization
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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
Technical Complexity: The Theory of Joan Woodward
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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
Technical Complexity: The Theory of Joan Woodward
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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
Technical Complexity: The Theory of Joan Woodward
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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
Technical Complexity: The Theory of Joan Woodward
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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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Technical Complexity and Organization Structure
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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Technical Complexity and Organization Structure
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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Technical Complexity and Organization Structure
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
Routine Tasks and Complex Tasks: The Theory of Charles Perrow
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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
Routine Tasks and Complex Tasks: The Theory of Charles Perrow
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Routine Tasks and Complex Tasks: The Theory of Charles Perrow
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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
Routine Tasks and Complex Tasks: The Theory of Charles Perrow
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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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Theory of James D. Thompson
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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Theory of James D. Thompson
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
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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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