Technology and Design

Prof. Pavni Kaushiva

DWO 2021-22
 Technology
Input Conversion Output
• Skills, • Machines, • Testing quality,
procedures, techniques, selling and
techniques and work marketing,
competences procedures managing
after-sales
service

Each department or function is responsible for building competences and

developing technology to make a positive contribution to organizational
performance.
Structure needed to maximize effectiveness of the technology
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 Theories of technology
Joan Woodward:
Technical complexity “The extent to which a production process can be programmed (rules, SOPs) so that it
can be controlled and made more predictable.
Technological imperative
10 levels of technical complexity
1. Production of simple units to customers’ orders
2. Production of technically complex units
Small batch and 3. Fabrication of large equipment in stages
unit production 4. Production of small batches
5. Production of components in large batches assembled diversely
Large batch and Technical
6. Production of large batches, assembly-line type complexity
mass production
7. Mass production
8. Process production combined with preparation of a product for sale by large-
Continuous process batch/ mass production methods
production 9. Process production of chemicals in batches
10. Continuous flow production of liquids, gases and solid shapes

Ref: Understanding the theory and design of organizations, Daft & Uppal, 2013, exhibit 13.3 3
Small batch and unit technology: Machines are less • 3 managerial levels
important than human skills; people decide how and • Small span of control
when to use machines
◦ Specialized furniture, custom-made cars, small team of
software engineers

Large-batch and mass production • 3-4 managerial levels

◦ Soft drinks, cars
• Wide span of control
◦ IKEA

Continuous process technology: Conversion process is

almost entirely automated. Employees primarily • 6-7 managerial levels
manage exceptions (breakdown/malfunction) • Small span of control
◦ Breweries

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Theories of technology
Charles Perrow: Routine and Complex tasks
Task variability: Number of exceptions/ unexpected situations that a person encounters while
performing a task
Task analyzability: Degree to which information needed to solve a problem can be
documented
Move from mechanistic to organic as tasks become more complex and less routine
Routine manufacturing – Low task variability and high task analyzability.
Mass production
Craftswork – Low task variability, low task analyzability
Engineering production – High task variability and analyzability
Nonroutine research – High variability, low analyzability

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Relationship of Department Technology to Structural
and Management Characteristics

Ref: Understanding the theory and

design of organizations, Daft & Uppal,
2013, exhibit 13.9

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Theories of technology
James Thompson: Task interdependence
Mediated technology
Pooled interdependence – Each part of the organization contributes separately to the
performance of the whole.
Low task interdependence, Standardization as co-ordination
Long-linked
Sequential interdependence – Actions of one person/ department directly affect the
actions of another.
Planning and scheduling as means of co-ordination
Intensive
Reciprocal interdependence – Activities of all people and all departments fully depend
on one another
Mutual adjustment as main type of co-ordination

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Lean Manufacturing
Highly trained employees at every stage of production
Cut waste and improve quality
Incorporates technological elements – CAD, CAM, PLM
◦ Just-in-time inventory
◦ Product life-cycle management
◦ Continuous flow production
◦ Quick changeover of assembly lines
◦ Continuous improvement
◦ Preventive maintenance

Paved the way for mass customization - Using mass-production technology to quickly and
cost-effectively assemble individual goods for customers

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Service Firms
Production and provision of services.
◦ Education, health care, transportation, and banking all have unique dimensions

Services have intangible output

Production and consumption take place simultaneously
Labour and knowledge intensive
There is direct interaction with customer and employee
Human element is important
Quality of service cannot be directly measured

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The Dabbawala System
What was the existing technology and core competence in the Dabbalwalas?
How are the various work processes linked? What aspects needed improvement?
How would technology impact the core process?

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Lean Services
Expectations have required that service firms must become lean, too
◦ Cut waste
◦ Improve customer service
Adopt continuous improvement approach

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Structure of the Service Organization
Service organizations are not necessarily large – economies achieved by creating small
units close to customers
Highly skilled technical core – social as well as technical
Service customers interact directly with technical employees
Decision making is often decentralized, low formalization

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Sociotechnical systems approach
Recognizes the interaction of technical and human needs – aims at joint optimization

Addressing impact of technology

• Job Rotation
• Job Enrichment
• Job Enlargement

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