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TECHNOLOGY

The document discusses the concept of technology in organizations, emphasizing its role in transforming inputs into outputs. It reviews contributions from Joan Woodward, Charles Perrow, and James Thompson regarding technology classification, its impact on organizational structure, and the relationship between technology and complexity. Key classifications include routine, engineering, craft, and non-routine technologies, each with distinct characteristics regarding formalization and centralization.

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19 views12 pages

TECHNOLOGY

The document discusses the concept of technology in organizations, emphasizing its role in transforming inputs into outputs. It reviews contributions from Joan Woodward, Charles Perrow, and James Thompson regarding technology classification, its impact on organizational structure, and the relationship between technology and complexity. Key classifications include routine, engineering, craft, and non-routine technologies, each with distinct characteristics regarding formalization and centralization.

Uploaded by

distinctoutlook
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TECHNOLOGY

• TECHNOLOGY refers to the information,


equipment, techniques and processes
required to transform inputs into outputs in
an oganisation
• How does one measure technology?
Joan Woodward
• First attempt to view organisation structure
from a technology perspective
• Her efforts to link common structures to
effectiveness was a dismal failure
• Categorised the firms into one of three types;
Unit, Mass or Process production
• The degree of vertical differentiation
increased with technical complexity
• Administrative component was positively
correlated to technical complexity
CHARLES PERROW: KNOWLEDGE BASED
TECHNOLOGY
• Two underlying dimensions of Knowledge
Technology
– Task Variability
– Problem analyzability
• Construction of 2 x 2 matrix
– Routine technologies
– Engineering technologies
– Craft technologies
– Non-routine technologies
Perrow’s Technology Classification
Cell Technology Formalisation Centralisation Span of
Control

1 Routine High High Wide

2 Engineering Low High Moderate

3 Craft Moderate Low Moderate-


wide

4 Non-routine Low Low Moderate-


narrow
JAMES THOMPSON: TECHNOLOGICAL
UNCERTAINTY
Thompson’s contribution lies in demonstrating
that technology determines the selection of
strategy for reducing uncertainty and that
specific structural arrangement can facilitate
uncertainty reduction.
Thomson’s insight into Structural
Terminology
Long linked technology Moderate Complexity &
High Formalization

Mediating Technology Low Complexity & High


Formalization

Intensive Technology High Complexity & Low


Formalization
Technology & Structure
• Routine Technology positively associated with low
complexity
• Non-routine Technology is likely to lead to high
complexity
• Routine Technology to be positively related with
Formalization
• Non-routine Technology permit greater discretion &
flexibility
• Routine Technology would be associated with
centralized structure
• Non-routine Technology by delegated decision
authority

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