Woodward Study:

She developed a scale and organized the firms according to technical complexity of
the manufacturing process. Technical complexity represents the extent of
mechanization of the manufacturing process.
1. High technical complexity: Machine Intensive
2. Low Technical complexity: Labor Intensive

Ten categories and three basic technology groups:

1. Small batch and unit production: Manufacture and assemble small orders to
meet specific needs of customers. It relies heavily on human operator and
thus has very low technical complexity.
2. Large batch and mass production: It is characterized by long production runs
of standardized parts. Output often goes into inventory, because customers
do not have special needs.
3. Continuous process production: The entire process is mechanized. Examples:
Chemical plants, oil refineries, liquor producers, etc.

Key findings:
1. The number of management levels and manager to total-personnel ratio
increases as technical complexity increases from unit production to
continuous production.
2. Direct to indirect labor ratio decreases with technical complexity because
more indirect workers are required to support and maintain complex
machinery.
3. Span of control, formalized procedures and centralization are high for mass
production technology because the work is standardized.
4. Unit production and continuous production require highly skilled workers to
run the machines and verbal communication to adapt to changing conditions.
Mass production is routinized and standardized, hence little verbal
communication is needed and employees are less skilled.
5. Management system in unit and continuous production is organic (free
flowing, adaptive with fewer procedures and less standardization) while it is
mechanized in mass production

Structure, technology and performance

1. Successful firms tended to be those that had complementary structures and

technologies.
Strategy, structure and technology need to be aligned, especially when competitive
conditions change. Organisation structures and management processes must also
be realigned, as a highly mechanized structure hampers flexibility.

Perrow’s study of non-core departmental technology:

He specified 2 dimensions of departmental activities: Variety and analyzability.
1. Routine: low variety and high analyzability. High formalization, high
centralization, little training or experience, wide span of control, vertical and
written communications (memos, reports,.)
2. Engineering: High variety and high analyzability. Mostly mechanistic
structures, moderate centralization and formalization, formal training,
moderate span, written and verbal communications
3. Non Routine: High variety and low analyzability. Low formalization and
centralization, moderate to narrow span, horizontal communications,
meetings
4. Craft: Low variety and low analyzability

Thomson study of Workflow interdependence among departments:

Low interdependence: Departments can do their work independently of each other

and have little for interaction, consultation and exchange of materials.
Thomson defined three types of interdependence that influence organization
structure:
1. Pooled: Lowest form of interdependence among departments. Each
department contributes to the common good of the organization, but works
independently. It may be associated with the relationships within a divisional
structure.
Mediating technology: It provides product or services that mediate or link
clients through the external environment and hence allows each department
to work independently.
2. Sequential: Interdependence is of serial form, outputs in one department
become inputs of other department.
Long linked technology: