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Chapter 5
Transformation
Inputs Outputs
Process
Task
Technology -
Unit Levels of
Analysis
Organizational
Societal
Technologies
Work processes,
Tools & activities,
equipment procedures,
techniques,
Knowledge &
skills
Modernist Definitions of Technology
Core technology
High technology
Service technology
Woodward was
looking for the one Strategy
best way to
organize . . .
Structure
Strategy
. . . she found that
the best way
depended on Technology
technology:
Structure
Figure 5.2 Woodward’s Technical Complexity Scale
Low
Production of single pieces to customer orders
Large quantities of
identical products using
highly routinized and often
mechanized procedures
e.g. assembly line
Continuous Process
Levels of management 3 4 6
Span of control 23 48 15
Ratio direct to indirect labor 9:1 4:1 1:1
Administrative ratio low medium high
Formalization (written) low high low
Centralization low high low
Verbal communication high low high
Skill level of workers high low high
Overall structure organic mechanistic organic
Thompson added services to the typology
Manufacturing technology
Tangible product
Products can be held in inventory
Service technology
Capital intensive
Intangible output
Production and consumption
simultaneous (no inventory)
Knowledge and labor intensive
Figure 5.3 Thompson’s Matrix of Technologies
TRANSFORMATION PROCESSES
standardized non-standardized
standardized
INPUTS/OUTPUTS
Long-linked ?
non-standardized
Mediating Intensive
Figure 5.4 Perrow’s Typology
TASK VARIABILITY
low high
TASK ANALYZABILITY
high
Routine Engineering
(assembly line) (accounting)
Craft Non-routine
low
(construction) (R & D)
Perrow’s Types of Technology
Symbolic-Interpretive Perspective on
Technology
Technology is co-constructed
by environmental, social,
cultural, economic, and
technical factors.
- A technological/human
organization.
The Technological Imperative
Technology determines structure …
Woodward (1965)
The degree of technical complexity will affect structure. Organizations can be
successful if they align strategy, structure, and technology.
Perrow (1970)
Technology influences the degree of uncertainty in work, which in turns affects
the appropriate organizational design and management style. These may vary
across departments.
Thompson (1967)
Technology will affect the degree of interdependence and therefore the need for
coordination and therefore which type of structure is best.
Figure 5.5 Woodward’s view of technology
Small Mass Continuous
HIGH Batch Production Processing
Routineness of work
assembly
workers
artisans technicians,
scientists
LOW HIGH
Technological complexity
Figure 5.6 Woodward’s Routineness &
Perrow’s Task Typology
ro
ut VARIABILITY
in
en
es low high
s
ANALYZABILITY
high
Routine Engineering
low
Craft Non-routine
Inputs Transformation Inputs
A's
technology
Client 1 Client 2
tasks
+
Client 3 B's Client 4
tasks
+
Figure 5.7
C's
Client 5 Client 6
tasks
Outputs
Figure 5.8 Long-linked technology
Transformation Process
Transformation
Process
A's
tasks
Inputs Outputs
B's C's
tasks tasks
Reciprocal task
interdependence
Links between Thompson’s Technology, Task
Interdependence and Coordination Mechanisms
Pooled X
Sequential X X
Reciprocal X X X
Figure 5.10. HOW MODERNIST THEORIES
ARE ELABORATED
Woodward Technology
Structure Performance
Galbraith Communication
Technology Structure
Technology
Combining Woodward &
Galbraith
Communication
Structure Performance
Adaptive Structuration Theory