Organization

Structure, Design
and Change
Prof. Shreyashi Chakraborty
BM 2019-21
Technology
➔ Information, equipment, techniques and processes required to transform
inputs into outputs
➔ Implication of Size
➔

Industry Technology Size

Structure
Manufacturing Technology
Unit Production Mass Production Process Production

Number of Vertical 3 4 6
Levels

Span of Control 23 48 15

Proportion of skilled High Low High

workers

Specialization High Low High

Formalization Low High Low

Centralization Low High Low

Service Technology
Task Variability

1. How many of these tasks are the same from day to day?
2. To what extent would you say your work is routine?
3. People in this unit do about the same job in the same way most of the
time
4. Unit members perform repetitive activities in doing their jobs
5. How repetitious are your duties?
Service Technology
Problem Analyzability

1. To what extent is there a clearly known way to do the major types of work
you normally encounter?
2. To what extent is there a clearly defined body of knowledge of subject
matter which can guide you in doing your work?
3. To what extent is there a understandable sequence of steps that can be
followed in doing your work?
4. To do your work, to what extent can you actually rely on established
procedures or practices?
Service Technology
Technology Formalization Centralization Span of Control Coordination and
Control

Routine High High Wide Planning and rigid

rules

Engineering Moderate Moderate Moderate Reports and

Meetings

Craft Moderate Moderate Moderate -wide Training and

Meetings

Nonroutine Low Low Moderate-narrow Group norms and

meetings
Interdependence
➔ Sequential interdependence
◆ Mass-production lines, school cafeterias
◆ Highly standardized, highly formalized
➔ Pooled interdependence
◆ Banks, large retail stores, employment agencies, post offices
◆ Standardized and moderate specialization, High formalization
➔ Reciprocal interdependence
◆ Hospitals, universities, management consulting firms
◆ High specialization, low formalization
Technology and Structural Dimensions
➔ Routine technology and high standardization, high formalization
➔ Nonroutine technology and high specialization
➔ Routine technology can be associated with decentralization, if
formalization is high