1. Organizational Development and Change Management
Lecture 12: Technologies and Organizational Structures

2. Objectives To discuss ways in which technology can be defined
To assess the ways in which technology – broadly defined – influences organization design.
To think about technology in relation to the tasks that (groups of) individuals in organizations complete
To discuss technology, strategy and organization design.

3. Question
When you think of ‘technology’, what do you think of?

4. TECHNOLOGY AND STRUCTURE
TYPE OF TECHNOLOGY
UNIT
MASS
CONTINUOUS PROCESS
Structural Characteristic
Number of management levels 3 4 6
Supervisor span of control 23 48 15
Direct:indirect labour
9:1
4:1
1:1
Manager:total personnel ratio
Low
Medium
High
Number of skilled staff
Formalization
Centralization
Written communication
Overall
Organic
Mechanistic

5. Call Centre Work Watch the short film on call-centre work.
How would you describe that work in terms of:
Number of skilled staff
Formalization
Centralization
Written communication
Use the labels ‘high’, ‘medium’ or ‘low’ to describe that work.

6. Types of Call Centres
MASS PRODUCTION
CUSTOMIZED BATCH PRODUCTION

7. MASS PRODUCTION AND F.M.S
Structure
Supervisor spans of control
Wide
Narrow
Hierarchical Levels
Many
Few
Supervisor Role
Controller
Facilitator
Tasks
Routine, simple
Complex, adaptive
Specialization
High
Low
Operator discretion
Considerable
Formalization
Limited
Human Resources
Interactions
Training
Narrow, limited
Broad, frequent
Expertise
Standardized, manual/technical
Cognitive and social, developing, problem solving
Inter-organizational
Customer demand
Stable, predictable
Changing
Suppliers
Many, arm’s length
Few, interdependent

8. CHARACTERISTICS OF SERVICE AND PRODUCT ORGANIZATIONS
BOTH
PRODUCT
Boundary Roles
Few
Some
Many
Geographical Dispersion
Considerable
Low
Technical Expertise of Operators
High
Moderate
Skill Emphasis
Broad and interpersonal
Narrow and broad
Narrow and technical
Centralization
Medium
Formalization
Examples
Airlines, hotels
Fast food, real estate
Steel, cars

9. CUSTOMER INTERACTION AND CUSTOMIZATION
SERVICE BUSINESSES
CUSTOMER INTERACTION AND CUSTOMIZATION
LOW
HIGH
LABOUR INTENSITY
ratio of labour cost to plant and equipment
AIRLINES
HOTELS
HOSPITALS
MACHINERY REPAIRS
MASS RETAILING
FAST FOOD RESTAURANTS
PROFESSIONAL SERVICES
ACCOUNTANTS
LAWYERS

10. Questions
Imagine that you are a senior manager either at McDonald’s or Subway.
In which quadrant of the previous matrix would you place your company?
What are the reasons behind your choice?
Are there likely to be any typical managerial problems that can be associated with this mix of labour intensity and customization?

11. CHALLENGES FOR SERVICE MANAGERS

12. Questions Imagine that you are a senior manager in a hospital.
Why might hospitals be placed in the ‘low labour intensity- high customization’ quadrant of the matrix?
What are the typical problems that you might face as a manager?

13. CHALLENGES FOR SERVICE MANAGERS

14. CHALLENGES FOR SERVICE MANAGERS

15. Technology and Organization Design
So far, we have looked at the technology used in organizations or specific organizational units in a broad way.
We can also think about technology at the task and problem levels.
This, too, has implications for organization design.

16. VARIETY OF TASKS AND PROBLEMS
How many of your tasks are the same from day to day?
Do you do the same job in the same way most of the time?
How different are the problems you have to deal with on a daily basis?

17. ANALYSABILITY OF TASKS AND PROBLEMS
To what extent is there a clearly known way to do your major tasks?
To what extent is there a clearly defined body of knowledge that can be followed in your work?
How often do you have to deal with unforeseen problems and difficulties?
How much can you rely on established procedures and practices to do your job effectively?

18. DEPARTMENTAL TASKS AND TECHNOLOGIES
An Apprentice Contestant
CALL-CENTRE WORKERS

19. The Apprentice
In terms of training and experience, how well prepared should apprentice contestants be (if they had to do that sort of job regularly and were not part of a TV programme that does a good line in ritual humiliation)?
How much training do they get do you think?

20. Questions
In terms of formalization, centralization, and type of communication (face- to-face meetings, written reports, etc.), how would you expect organizations associated with different areas of the preceding figure to be structured?
Choose one.
What are the reasons for your choices?

21. Mechanistic

22. Questions
Thinking back to the points made about call centres, how would you describe call centres in terms of the analyzability and variety of the tasks that they face?
How do you think most call centres are organized?
Is there a mismatch between how they are organized and how they should be organized?
If there is a mismatch, why does this mismatch arise?

23. Technology and Interaction
Technology can also be thought of as ways in which groups of individuals interact.

24. Interdependence and Co-ordination Mechanisms

25. Arthur Andersen – Pooled Interdependence

26. Conclusions
Technology – in a broad sense of the word – matters for organizational design.
The higher the levels of variety of tasks undertaken within the organization, and the higher the levels of reciprocal interdependence within the organization, the greater the need for more organic designs within the organization.