TECHNOLOGY

DEFINE TECHNOLOGY

Technology refers to the information, equipment, techniques and processes required to transform inputs into outputs in an organization

CONTD

The concept of technology despite its mechanical or manufacturing connotation, is applicable to all types & kind of organization The three land mark contribution to understanding technology were presented by: Joan Woodward Charles Perrow Thompson

TECHNOLOGY

INPUTS

OUTPUTS

PROCESS

CONTRIBUTIONS OF WOODWARD, PERROW & THOMPSON

Joan Woodward proposed production technology:

three

types

of

Unit, Mass and Process

Her major contribution lay in identifying distinct relationships among these technology classes and the subsequent structure of the firms and indicating that the effectiveness of the firms was related to the FIT between technology and structure

PERROWS CONTRIBUTION

Perrow proposed a broader view of technology by looking at knowledge. He identified two underlying dimensions of knowledge technology: Task Variability and Problem Analyzability These combine technology:

to

create

four

types

of

Routine, Engineering, Craft & Non-routine

CONTD

Perrow concluded that the more routine technology, the more highly structured the organization should be

PERROWS TECHNOLOGY CLASSIFICATION

TASK VARIABILITY Few Exceptions PROBLEM ANALYZABILITY Many Exceptions

ILL defined & Un-analyzable

CRAFT

NON ROUTINE

Well defined & Analyzable

ROUTINE

ENGINEERING

THOMPSONS CONTRIBUTION
Thompson demonstrated that the interdependency created by a technology is important in determining an organizations structure. Specifically, he identified long-linked, mediating, and intensive technologies; noted the unique interdependency of each; determined how each dealt with the uncertainty it faced & predicted the structural coordination devices that were most economical for each

INPUT

OUTPUT

(A) Long Linked Technology (characterized by sequential interdependence)

Client A

Transformation Process

Client B

(B) Mediating Technology (characterized by pooled interdependence)

RESOURCE A B C D Inputs Transformation Process Output

Feedback (C) Intensive Technology (characterized by reciprocal interdependence)

INFLUENCE OF INDUSTRY & SIZE

Industry:

In terms of its interrelationship between technology & size. Industry often influences the efficient operating size of an organization; its degree of competition, or extent of government regulation & thus limits the viable set of technology options. The strongest attacks against the technological imperative has come from those who argue that organizational size is critical determinant of structure

Size:

INFLUENCE

Size was found to have a more dominant on structure

influence

An organizations size moderates the impact of technology on structure

Industry constrains technology options. But organizations need to reach a particular size before advantages can be obtained from the benefits offered by the more complex technologies

INDUSTRY SIZE INTEGRATIVE MODEL

Industry

Technology

Size

Organizational Structure

THE COMMON DENOMINATOR

The common theme throughout the chapter, sometimes more explicitly evident than others, is that processes or methods that transform inputs into outputs differ by their degree of routineness Woodward mass technology is basically routine in nature. Perrow, too presented two extremes routine and non-routine technologies Thompsons two categories include technologies that are relatively routine. two

MANUFACTURING VS SERVICE TECHNOLOGIES

Real differences between the dominant technologies in the two types of organizations
Research studies that combine manufacturing to service organizations are less likely to find a significant relationship between technology and structure

TECHNOLOGY & STRUCTURE

Relationship of technology to the three structural dimensions of complexity, formalization and centralization Technology & Complexity:

Indicates that routine technology is positively associated with low complexity. The greater the routineness, the fewer the number of occupational groups and the less training possessed by professionals Non-routine complexity technology is likely to lead to high

TECHNOLOGY & STRUCTURE

Technology & Formalization:

Routine technology formalization

is

positively

related

with

As the operating core becomes more routine, the operating work becomes more predictable. In such situation, high formalization is an efficient coordination device

TECHNOLOGY & STRUCTURE CONTD.

Technology & Centralization:

This relationship generates inconsistent results

Routine technology should be associated with centralized control if there is a minimum of rules and regulation. However, if formalization is high, routine technology can be accompanied by decentralization. So we would predict that routine technology would lead to centralization only if formalization is low

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