1. Leadership & Technology
Organizational Theory, Design, and Change Fifth Edition Gareth R. Jones
Chapter 06
Leadership & Technology

2. What is Technology?
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

3. Technology and Organization
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
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

4. Technology and Organization
Technology is present in all organizational activities:
Input: allows each organizational function to handle relationships with outside stakeholders so that the organization can effectively manage its specific environment
Transformation: transforms inputs into outputs
Output: allows an organization to effectively dispose of finished goods and services to external stakeholders

5. Technology and Organization

6. Technical Complexity: The Theory of Joan Woodward
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.

7. Technical Complexity: The Theory of Joan Woodward
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
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

8. Technical Complexity: The Theory of Joan Woodward
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

9. Technical Complexity: The Theory of Joan Woodward
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

10. Technical Complexity: The Theory of Joan Woodward
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

11. Technical Complexity and Three Types of Technology

12. Technical Complexity and Organization Structure
An organization that uses small-batch technology
Impossibility of programming conversion activities because production depends on the skills and experience of people working together
An organic structure is the most appropriate structure for this technology

13. Technical Complexity and Organization Structure
An organization that uses mass production technology
Ability to program tasks in advance allows the organization to standardize the manufacturing process and make it predictable
A mechanistic structure becomes the appropriate structure for this technology

14. Technical Complexity and Organization Structure
An organization that uses mass production technology
Tasks can be programmed in advance, and the work process is predictable and controllable in a technical sense
Still the potential for a major systems breakdown
An organic structure is the appropriate structure for this technology

15. Technical Complexity and Organizational Structure

16. Technical Complexity and Organization Structure
Technological imperative
The argument that technology determines structure
Aston studies found that:
Technology is one determinant of structure
Organizational size is a more important determinant of structure

17. Routine Tasks and Complex Tasks: The Theory of Charles Perrow
Perrow’s two dimensions underlie the difference between routine and non-routine or complex tasks and technologies:
Task variability
Task analyzability

18. Routine Tasks and Complex Tasks: The Theory of Charles Perrow
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

19. Routine Tasks and Complex Tasks: The Theory of Charles Perrow
Four types of technology
Routine manufacturing: characterized by low task variability and high task analyzability
Craftswork: both task variability and task analyzability are low
Engineering production: both task variability and task analyzability are high
Nonroutine research: characterized by high task variability and low task analyzability

20. Routine Tasks and Complex Tasks: The Theory of Charles Perrow

21. Routine Tasks and Complex Tasks: The Theory of Charles Perrow
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

22. Routine and Non-routine Tasks and Organizational Design

23. Task Interdependence: The Theory of James D. Thompson
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

25. Theory of James D. Thompson
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

26. Theory of James D. Thompson
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

27. Theory of James D. Thompson
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

28. From Mass Production to Advanced Manufacturing Technology
Mass production is based on:
Dedicated machines: machines that can perform only one operation at a time and that produce a narrow range of products
Fixed workers: workers who perform standardized work procedures, thereby increasing an organization’s control over the conversion process

29. From Mass Production to Advanced Manufacturing Technology
Attempts to reduce costs by protecting its conversion processes from the uncertainty of the environment
Makes an organization inflexible
Fixed automation
Expensive and difficult to begin manufacturing a different kind of product when customer preferences change

30. Work Flow Mass Production Technology

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

32. Advanced Manufacturing Technology
Computer-aided design (CAD): an advanced manufacturing technique that greatly simplifies the design process
Computers can be used to design and physically manufacture products
Computer-aided materials management (CAMM): an advanced manufacturing technique that is used to manage the flow of raw materials and component parts into the conversion process, to develop master production schedules for manufacturing, and to control inventory
Flow of inputs determined by customer demand

33. Work Flow Advance Manufacturing Technology

34. Advanced Manufacturing Technology
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

35. Just-in-Time Inventory System

36. Flexible Manufacturing Technology
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

37. Computer-Integrated Manufacturing (CIM)
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