manoj.ghadge_otpr.course [session 8]
DESCRIPTION
Organizational TheoryTRANSCRIPT
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Organizational Technology
Coordinator & Facilitator
Manoj M Ghadge
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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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