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ORGANIZATIONAL THEORY, DESIGN, AND CHANGE - Chapter 09

ORGANIZATIONAL THEORY, DESIGN, AND CHANGE - Chapter 09

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Lesson Plan of Chapter 9
Jones, G. R. (2007). Organizational Theory, Design, and Change (5th ed.). New Jersey: Pearson Education, Inc.
Lesson Plan of Chapter 9
Jones, G. R. (2007). Organizational Theory, Design, and Change (5th ed.). New Jersey: Pearson Education, Inc.

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PHAM HOANG HIEN
[ORGANIZATIONAL THEORY, DESIGN, AND CHANGE]
 
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CHAPTER 9 ORGANIZATIONAL DESIGN, COMPETENCES, ANDTECHNOLOGY
TEACHING OBJECTIVES
 
1. To de
fine technology as the combination of skills, knowledge, machines, and other equipment usedto convert inputs into outputs. (9.1)
2.
To show that technology is used at all stages in the value creation process: input, conversion, output.(9.2)
3.
To consider how technology can improve organizational effectiveness using three approaches:external resource, internal systems, and technical. (9.2)
4.
To examine Joan Woodward’s theory that technical complexity differentiates technologies. (9.3)
5.
To analyze how technical complexity affects organizational structure. (9.3)
6.
To review the technological imperative and the Aston Studies. (9.3)
7.
To examine Charles Perrow’s theory that differences between routine and nonroutine tasks resultfrom task variability and task analyzability. (9.4)
8.
To review the structural characteristics of routine and nonroutine tasks. (9.4)
9.
To examine James D. Thompson’s theory that task interdependence affects technology and structure.(9.5)
10.
To consider the costs of intensive technology and cost reduction through specialism. (9.5)11. To review the major elements of traditional mass production: dedicated machines, fixed workers, andinventory stockpiles. (9.6)12. To examine innovations in materials technology: computer-aided design (CAD), computer-aidedmaterials management (CAMM), just-in-time (JIT) inventory, and computer-integratedmanufacturing (CIM). (9.7)
CHAPTER SUMMARY
 
Technology is the combination of skills, abilities, machines, computers, and other tools used to transforminputs into outputs. Technology exists at three levels: individual, functional, and organizational. It createsvalue and increases effectiveness at all three stages: input, conversion, and output. The external resourceapproach uses technology to help manage and control outside stakeholders. The internal systemsapproach uses technology to increase innovation and reduce design and production time. The technicalapproach uses technology to improve efficiency and quality while reducing costs.Three models examine the effect of technology on organizational design. Technical complexity, routineand complex tasks, and task interdependence are reviewed. According to Joan Woodward, technicalcomplexity, the extent to which the production process can be controlled, differentiates technologies.Three types of technology, in order of complexity include: small-batch and unit, mass production andlarge-batch, and continuous-process. Small-batch and continuous-process technology have organicstructures, whereas mass production has a mechanistic structure. The concept that strategy determinesstructure is called the technological imperative. The Aston Studies found that size determines structuremore than technology. Charles Perrow distinguished between routine and nonroutine tasks according totask variability and task analyzability. These two dimensions classify four types of technology: routinemanufacturing, craftswork, engineering production, and nonroutine research. As tasks become morecomplex, an organization moves from a mechanistic to an organic structure.
 
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In the third model, James D. Thompson considers task interdependence, mediating technology andpooled interdependence, long-linked technology and sequential interdependence, and intensivetechnology and reciprocal interdependence. The strategy of specialism reduces the costs associated withintensive technology. Technology relates to culture, so a change in technology impacts culture.Sociotechnical theory is explained.Mass production has moved toward advanced manufacturing technology. Traditional mass productionuses dedicated machines and fixed workers to facilitate economies of scale and a low-cost advantage.New technologies allow for flexibility and cost control. Advanced manufacturing technology (AMT)consists of innovations in materials technology and in knowledge.Innovations in materials technology involve machinery and computers. Traditionally, organizationsstockpiled inventory to protect the conversion process, but AMT coordinates input, conversion, andoutput activities. Computer-aided design (CAD), computer-aided materials management (CAMM), just-in-time (JIT) inventory systems, and computer-integrated manufacturing (CIM). CAD and CAMMcoordinate the input and conversion stages. CPA uses robots in the conversion stage. These technologiesincrease technical complexity and task interdependence and make tasks more nonroutine, achievingflexibility at little or no cost increase. Changes have affected both structure and culture.
CHAPTER OUTLINE9.1 What Is Technology?
 
Technology is the combination of skills, abilities, techniques, materials, machinery, and other equipmentthat people use to transform inputs into outputs. It also applies to services.Technology exists at three levels: individual, personal skills and individual knowledge; functional ordepartmental, group techniques to perform work and create value; and organizational, the way inputs areconverted into outputs (i.e., mass production and craftswork).Mass-production technology involves using conveyor belts and a standardized assembly process toproduce goods. Craftswork involves skilled workers interacting to make a customized product.
Organizational Insight 9.1:
Progressive Manufacture at Ford
Henry Ford manufactured cars using craftswork, but in 1913 he opened a “progressive manufacture” ormass-production plant, which reduced car prices by two-thirds and created a mass market. Yet, workershated their jobs and were constantly monitored.Q. Describe the system of progressive manufacture.
A.
Work was delivered via conveyor belts and performed sequentially (i.e., tasks built on precedingtasks); tasks were broken down into simple components, and parts were interchangeable; verticalintegration controlled inputs.Q. Why was the new manufacturing process so efficient?
 
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A. The process was so controllable and predictable that direct supervision was eliminated and the span of control widened. Mass-production technology simplified tasks, reduced the need for skilled workers, andcreated specialization and division of labor.Notes________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
9.2 Technology and Organizational Effectiveness
 
Q. Describe the three stages of the value creation process.A. Technology is used at all three stages in the value creation process—input, conversion, and output.(Fig. 9.1)The input stage uses technology, such as skills and procedures, to manage relationships with outsidestakeholders, the organization’s specific environment. The finance department obtains money at afavorable interest rate.Q. Describe technology at the conversion stage.A. The conversion stage combines machines, techniques, and procedures to transform inputs into outputs.To improve efficiency, employees learn time management techniques.The output stage uses technology for distribution to external stakeholders (e.g., procedures for qualitytesting, selling and marketing, and managing after-sales service).Q. What approaches measure and increase effectiveness using technology?
A. 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.Because each function develops technologies to create value, the organizational structure must maximizethe effectiveness of technology. Technology influences structure. Three theories consider the relationshipbetween technology and design. Managers should understand
technical complexity
,
 
the differencesbetween complex and routine tasks, and
task interdependence.
Notes________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
 Refer to discussion question 1 here to review three approaches for measuring effectiveness usingtechnology.__________________________________________________________________________________________________________________________________________________________________
9.3 Technical Complexity: The Theory of Joan Woodward

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