organizational design, competences, and technology 1

Organizational Design,

Competences, and Technology

1

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Identify what technology is and how it relates to organizational effectiveness

Differentiate among three different kinds of technology that create different competences

Understand how each type of technology needs to be matched to a certain kind of organizational structure if an organization is to be effective

2-2


Understand how technology affects organizational culture

Appreciate how advances in technology, and new techniques for managing technology, are helping increase organizational effectiveness

2-3


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

2-4


Technology exists at three levels

Individual level - The personal skills, knowledge, and competences that individuals possess

Functional or department level - The procedures and techniques that groups work out to perform their work and create value

2-5


Technology exists at three levels (cont.) 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

2-6


Technology is present in all organizational activities: Input: Allows each organizational

function to handle relationships with outside stakeholders

Conversion: Transforms inputs into outputs

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

2-7


The technology of an organization’s input, conversion, and output processes is an important source of competitive advantage

2-8


External resource approach for managing and controlling outside stakeholders.

Internal systems approach for innovation, product development, and reduced development time.

Technical approach for increasing efficiency and quality, and reducing costs.

2-9


• Technical complexity

• Complex tasks and routine tasks

• Task interdependence

2-10


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

2-11


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

2-12


Woodward identified 10 levels of technical complexity that are associated with three types of production technology: Small-batch and unit technology Large-batch and mass production

technology Continuous-process technology

2-13


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

2-15


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

2-16


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

2-17


Technological imperative: The argument that technology determines structure

For small organizations the importance of technology as a predictor of structure may be more important than it is for large organizations

2-19


Perrow’s two dimensions underlie the difference between routine and nonroutine or complex tasks and technologies:

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

2-20


Four types of technologyRoutine manufacturing: characterized by low task variability and high task analyzabilityCraftswork: both task variability and task analyzability are lowEngineering production: both task variability and task analyzability are highNonroutine research: characterized by high task variability and low task analyzability

2-21


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

2-23


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

2-25


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

2-26


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

2-27


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

2-28


Mass production is based on: Dedicated machines: Machines that

can perform only one operation at a time, such as repeatedly cutting or drilling or stamping out a car body part

Fixed workers: Workers who perform standardized work procedures increase an organization’s control over the conversion process

2-30


Mass production: Attempts to reduce costs by protecting

its conversion processes from the uncertainty of the environment

Makes an organization inflexible Fixed automation is a combination of

dedicated machines and fixed workers Expensive and difficult to begin manufacturing

a different kind of product when customer preferences change

2-31


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

2-32


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

2-35


Computer-aided design (CAD) Computer-aided materials management (CAMM)

Just-in-time inventory (JIT) system

2-36


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

physically manufacture products

2-37


Reduced design costs and a differentiation advantage

Improved manufacturing efficiency Easier selling and servicing with improvements made

during design Risk of failure reduced by solving problems during

design Competitive advantage and reduced costs through

quality Increased flexibility and lower cost Customized product design Quick response to environmental changes

2-38


Computer-aided materials management (CAMM):

An advanced manufacturing technique that is used to manage the flow of raw materials and component parts into the conversation process Develops master production schedules

for manufacturing and controls inventory

2-39


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

2-40


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

2-42


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

2-43

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical,

photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.


44

organizational design, competences, and technology 1

Documents

pearson education

organizational technology

prentice hallthe technology

prentice halltechnology

prentice hallunderstand

prentice hallidentify

organizational level

different kinds of technology