1. Tid-bits from Chapter 2 What do you wish to do? Why?
Write a “future” mission statement.
Write a vision.
Develop a strategy.
Develop goals to actionize strategy. (strategic direction)
Strategic direction: (opportunities, threats, uncertainty, resource availability, strengths, distinctive competence, leader style, past performance)
Long

2. Do you have a competitive advantage? Core competencies?
Formulating strategies: Porter model and Miles and Snow strategy typology
Porter: Differentiation vs low-cost leadership
Miles and Snow: Prospector, Defender, Analyzer, Reactor
Four Effectiveness Approaches: Goal approach, Resource- based approach, Internal process approach, Strategic constituents approach
Long

3. What is Structure? Designates formal reporting relationships
Identifies grouping of individuals into units and units into the organization
Includes design of systems to ensure communication, coordination and integration of effort
Long

4. Designed for efficiency: Centralized Designed for learning: Decentralized
Long

5. Information-sharing Perspective on Structure
Design: Provide both vertical and horizontal information flow to accomplish organizational goals. If structure doesn’t fit, people will have either too little information or spend time processing information not vital to their tasks. Vertical linkages are designed primarily for control. Horizontal linkages are designed for coordination and collaboration, which usually means reducing control.
Long

6. Design Options for Grouping Employees into Departments
Functional
Grouping
CEO
Engineering
Marketing
Manufacturing
Divisional
Grouping
CEO
Division A
Division B
Division C
Long

7. Technology
MGT 4153
Dr. Rebecca Long

8. What is Technology? (pages 259-261)
Work processes, techniques, machines, and actions used to transform organizational inputs (materials, information, ideas) into outputs (products and services)
Core
Non-Core
Long

9. Core vs Non-Core
Core technology is the work process that is directly related to the organization’s mission, such as teaching in a school, medical services at a medical clinic
Non-core technology is a department work process that is important to the organization but is not directly related to its primary mission. (HR, Accounting, R&D, Marketing)

10. What is the difference between manufacturing technology and service technology? Manufacturing: Core technology begins with raw materials (e.g., steel, aluminum, composite metals) if their products are created using those materials. Service: (UPS) Includes production equipment to sort and transport the product and procedures to ensure that the product is delivered on time and in good condition.
Long

11. Joan Woodward (British industrial sociologist)
Developed a scale and organized the firms she studied according to technical complexity of the manufacturing process. Technical complexity (page 262) represents the extent of mechanization of the manufacturing process. High Technical Complexity: Most of the work done by machines. Low Technical Complexity: Workers play a larger role in the production process.
Long

12. Woodward’s Manufacturing Technologies
Group I (Low Technical Complexity) (organic)
Small-batch and unit production (job shops, small orders, relies heavily upon the human operator) Custom work the norm. (Kelly handbags hand-sewn) (page 262)
Group II (Mechanistic)
Large-batch and mass production (characterized by long production runs of standardized parts [traditional assembly lines]) (page 263)
Group III (High Technical Complexity) (Organic)
Continuous process production (entire process is mechanized) (page 263)
Long

13. Flexible Manufacturing Systems (page 268) (Also called computer-integrated manufacturing, smart factories, advanced manufacturing technology, agile manufacturing, or the factory of the future. FMS links together manufacturing components that previously stood alone. Robots, machines, product design and engineering analysis are coordinated by a single computer system). Result of:
Computer-aided design
(CAD)
Computer-aided manufacturing
(CAM)
Integrated Information Network
Long

14. Lean Manufacturing: Uses highly trained employees at every stage of the production process, who take a painstaking approach to details and problem solving to cut waste and improve quality. The heart of lean manufacturing is people, not machines. Employees are trained to attack waste and strive for continuous improvement in all areas. One lesson of LM is that there is always room for improvement. (pages )
Long

15. Mass & Flexible Manufacturing (page 272)
Characteristic
Mass Production
FMS
Structure:
Span of Control
Wide
Narrow
Hierarchical levels
Many
Few
Tasks
Routine, repetitive
Adaptive, craft-like
Specialization
High
Low
Decision making
Centralized
Decentralized
Overall
Bureaucratic, mechanistic
Self-regulating, organic

16. Manufacturing versus Service Technologies (page 274, Exhibit 7.7)
Tangible product
Products can be inventoried for later consumption
Capital asset intensive
Little direct customer interaction
Human element may be less important
Quality is directly measured
Longer response time is acceptable
Site of facility is moderately important
Service
Intangible product
Production and consumption take place simultaneously
Labor and knowledge intensive
Customer interaction generally high
Human element very important
Quality is perceived and difficult to measure
Rapid response time is usually necessary
Site of facility is extremely important
Service:
Airlines, Hotels, Consultants,
Healthcare, Law firms
Product and Service:
Fast-food outlets, Cosmetics,
Real estate, Stockbrokers,
Retail stores
Product:
Soft drink companies,
Steel companies,
Auto manufacturers,
Food processing plants

17. Service versus Product Organizations (page 277, Exhibit 7.8)
Structural Characteristics:
Separate boundary roles
Few
Many
Geographical dispersion
Much
Little
Decision making
Decentralized
Centralized
Formalization
Lower
Higher
Human Resources:
Employee skill level
Skill emphasis
Interpersonal
Technical

18. Department level of analysis for departments not necessarily within the technical core (pages )
Analyzes the nature of departmental technology and its relationship with departmental structure, developed by Charles Perrow.
He specified two dimensions of departmental activities relevant to organizational structure and process.
Variety – The frequency of unexpected and novel events that occur in the conversion process. Are work processes performed the same way every time or differ from time to time.
Analyzability – Can the work be reduced to mechanical steps and can participants follow an objective, computational procedure to solve problems?

19. Departmental Technologies (280-281)
CRAFT
Low analyzability
Low variety
Examples: Performing arts
Trades
Fine goods mfg.
NONROUTINE
Low analyzability
High variety
Examples: Strategic planning
Social science
Applied research
ROUTINE
High analyzability
Low variety
Examples: Sales
Clerical
Drafting
Auditing
ENGINEERING
Examples: Legal
Engineering
Tax accounting
General accounting

20. Department Technology & Structural/Management Characteristics (283)
Mechanistic Structure
1. High formalization
2. High centralization
3. Little training or experience
4. Wide span
5. Vertical, written
communications
ROUTINE
Mostly Mechanistic Structure
1. Moderate formalization
2. Moderate centralization
3. Formal training
4. Moderate span
5. Written and verbal
ENGINEERING
Mostly Organic Structure
3. Work experience
4. Moderate to wide span
5. Horizontal, verbal
CRAFT
Organic Structure
1. Low formalization
2. Low centralization
3. Training plus experience
4. Moderate to narrow span
5. Horizontal communications
meetings
NONROUTINE

21. Key to Previous Slide: Formalization Centralization
Staff qualifications
Span of control
Communication and coordination
Long

22. Implications of Thompson’s Interdependence (pages 284 & 285)
Form of Interdependence
Demands on Horizontal Communications, Decision Making
Type of Coordination Required
Priority for Locating Units Close Together
Pooled (bank)
Low
communication
Standardization, rules, procedures
Divisional Structure
Sequential
(assembly line)
Medium
Plans, schedules, feedback
Task Forces
Reciprocal (hospital)
High
Mutual adjustment, cross-departmental meetings, teamwork
Horizontal Structure
Client
Client
Client
Long