Teori Organisasi Lanjutan

Sesi 4 TEKNOLOGI

Dr. A. Wahyudi Atmoko 1

 Goals and
Strategy
Environment Power,
Change

Culture Structure Technology

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What is Technology?

9 Technology is the term used to refer to the work performed by an

organization.

9 Technology refers to the knowledge, tools, machines, information,

skills, and materials used to complete tasks within organizations, as
well as to the nature of the outputs of the organization

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Three Levels Of Technology

1- Organizational or Core Technology

used to characterize the entire organization

2- Work unit or department technology

3- Interdependent relationships
result from the flow of work between work units

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 1- Organization-Level Technology:
The Technical Core

Joan Woodward’s 1950's study of British manufacturing companies

developed a three category scheme for classifying organization-level
technology:

1- Unit or Small Batch

Technological
Complexity

2- Mass or Large Batch

3- Continuous Process or Flow

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 Relationship Between Technical Complexity
and Structural Characteristics

Technology
Structural Characteristics Unit Mass Continuous
Production Production Process
Number of management levels 3 4 6
Supervisor span of control 23 48 15
Direct/indirect labor ratio 9:1 4:1 1:1
Manager/total personnel ratio Low Medium High
Workers’ skill level High Low High
Formalized procedures Low High Low
Centralization Low High Low
Amount of verbal communication High Low High
Amount of written communication Low High Low
Overall structure Organic Mechanistic Organic
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Source: Joan Woodward, Industrial Organization: Theory and Practice (London: Oxford University Press, 1965).
 Woodward’s Results

9 Contingency relationship between technology and structure

1) The unit or small batch => organic structure
2) The mass or large batch => a mechanistic/bureaucratic structure
3) The continuous process or flow => an organic structure

9 Relationship between structure-technology and success

| Many of the Organizational characteristics of the successful firms were
near the average of their technology category

z Structural characteristics could be interpreted as clustering into

organic and mechanistic management systems.
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 Relationship of Computer-Integrated Manufacturing
Technology to Traditional Technologies
Flexible Mass
Small batch
Manufacturing Customization
Customized
NEW CHOICES
TRA
DIT
ION
AL
PRODUCT FLEXIBILITY

Mass
Production

CH
OIC
ES Continuous
Process

Standardized

Small BATCH SIZE Unlimited

Source: Based on Jack Meredith, “The Strategic Advantages of New Manufacturing Technologies For Small Firms.”
Strategic Management Journal 8 (1987): 249-58; Paul Adler, “Managing Flexible Automation,” California Management
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Review (Spring 1988): 34-56; and Otis Port, “Custom-made Direct from the Plant.” Business Week/21st Century
Capitalism, 18 November 1994, 158-59.
 Comparison of Organizational Characteristics Associated with Mass Production
and Computer Integrated Manufacturing

Characteristic Mass Production CIM

Span of Control Wide Narrow

Hierarchical levels Many Few

Structure

Tasks Routine, repetitive Adaptive, craft-like

Specialization High Low

Decision making Centralized Decentralized

Overall Bureaucratic, mechanistic Self-regulating, organic

Interactions Stand alone Teamwork

Training Narrow, one time Broad, frequent

HR

Expertise Manual, technical Cognitive, social

Solve problems
Customer Demand/Suppliers Stable/Many Changing/Few, close

Source: Based on Patricia L. Nemetz and Louis W. Fry, “Flexible Manufacturing Organizations: Implications for
Strategy Formulation and Organization Design.” Academy of Management Review 13 (1988); 627-38; Paul S. Adler,
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“Managing Flexible Automation,” California Management Review (Spring 1988); 34-56; Jeremy Main, “Manufacturing
the Right Way,” Fortune, 21 May 1990, 54-64.
 Service As a Core Technology

Manufacturing Technology
1. Tangible product
2. Products can be inventoried for later
consumption
3. Capital asset intensive
Service Technology 4. Little direct customer interaction
1. Intangible product 5. Human element may be less important
2. Production and consumption take place 6. Quality is directly measured
simultaneously 7. Longer response time is acceptable
3. Labor and knowledge intensive 8. Site of facility is moderately important
4. Customer interaction generally high
5. Human element very important
6. Quality is perceived and difficult to
measure
7. Rapid response time is usually
necessary
8. Site of facility is extremely important

Service: Product and Service: Product:

Airlines, Hotels,Consultants, Fast-food outlets, Cosmetics, Soft drink companies,
Healthcare, Law firms Real estate, Stockbrokers, Steel companies,
Retail stores Auto manufacturers,
Food processing plants
Sources: Based on F. F. Reichheld and W. E. Sasser, Jr., “Zero Defections: Quality Comes to Services,” Harvard Business Review 68
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(September-October 1990): 105-11; and David E. Bowen, Caren Siehl, and Benjamin Schneider, “A Framework for Analyzing Customer
Service Orientations in Manufacturing,” Academy of Management Review 14 (1989): 75-95.
Managing Service Technology

9 Managing service technology is different from managing

manufacturing technology

9 The Ashton Group developed a workflow integration scale for

classifying technology based on three factors:

1- Automation of equipment
2- Workflow rigidity
3- Specificity of evaluation

Services tend to score low on workflow integration

Organic organizational structures that include low
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formalization, low specialization, and decentralization
 Limitations of Woodward

¾ The topologies are prototypes

¾ Her work ignores the issue of size

¾ Innovations in technology such as CIM, CAD, and CAM challenge

some of the assumptions made by Woodward

¾ Her work focuses on manufacturing and ignores the service

economy

¾ Finally, this approach is useful only for classifying the whole

organization

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 2- Work Unit or Department Technology

9 Framework was developed by Perrow and elaborated by Daft and

his colleagues

9 Technology is defined on two dimensions:

1- Exceptions/variety
Low variety technologies permit little flexibility, whereas high
variety permits greater flexibility

2- Analyzability
High-analyzability tasks can usually be standardized or
programmed. Low-analyzability tasks are uncertain,
ambiguous, and complex
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 Relationship of Department Technology to Structural and
Management Characteristics

Low Mostly Organic Structure Organic Structure

1. Moderate formalization 1. Low formalization
CRAFT NONROUTINE
2. Moderate centralization 2. Low centralization
ANALYSABILITY

Performing Arts Strategic planning

3. Work experience 3. Training plus experience
Designers Top management
4. Moderate to wide span 4. Moderate to narrow span
Advertising Social science research
5. Horizontal, verbal COMU 5. Horizontal COMU meetings
CRAFT NONROUTINE
e => e
t in utin
Mechanistic Structure ou o Mostly Mechanistic Structure
R onr
1. High formalization N 1. Moderate formalization
ROUTINE ENGINEERING
2. High centralization 2. Moderate centralization
Clerical General Accounting
3. Little training or experience 3. Formal training
Maintenance Engineering
4. Wide span 4. Moderate span
Auditing Legal research
5. Vertical, written COMU 5. Written and verbal COMU
High ROUTINE ENGINEERING

Low VARIETY High 15

- Work Flow and Technological Interdependence

¾ James Thompson developed a technology framework that focuses on

the nature of interdependence and coordination among departments

¾ He defined three types of technologies that result in three

different levels of interdependence. These three technologies and
the resulting interdependence are best managed by different
methods of coordination

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 Thompson’s Classification of Interdependence and Management
Implications

Type of Form of Communication Type of Priority for

Technology Interdependence Requirements Coordination Locating Units
Required Close Together

Pooled (bank) Standardization,

Low rules, procedures
Mediating Divisional Structure
communication Low
Client
Sequential Plans, schedules,
(assembly line) Medium feedback
Long-Linked Task Forces
Client communication Medium

Reciprocal (hospital) Mutual adjustment,

High cross-departmental
meetings, teamwork
Intensive communication High
Horizontal Structure
Client
Source: Adapted from Richard Daft , Organization Theory and Design (St. Paul, MN: West Publishing, 1992) and Andrew
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H. Van de Ven, Andre Delbecq, and Richard Koenig, “Determinants of Communication Modes Within Organizations,”
American Sociological Review (1976): 41.
Task Design and Technology: Sociotechnical Systems

ƒ Fitting People to Jobs:

The Traditional Industrial Ethic

ƒ Fitting Jobs to People:

The Task of the Postindustrial Society
ƒ Sociotechnical Systems:
A Middle Ground

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 Conclusions
1- Woodward’s Study in manufacturing technology. Relationships
between technology and structure in high-performing organizations

2- Service technologies differ in a systematic way from

manufacturing technologies; hence, organization design often
differs also
3- Perrow’s framework applied to department technologies.
Applying the wrong management system to a department will
result in dissatisfaction and reduced efficiency
4- Interdependence among departments. Organization design
must allow for the correct amount of communication and
coordination to handle interdependence across departments.
5- New CIM technologies are adopted by organizations and having
impact on organization design 19
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