Chap 9.pdf

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San Jose State University
BUS3 161B
Declineto State

Chapter 9 - Organizational Design, Competences, Technology Technology ɾTechnology: combination of skills, knowledge, abilities, techniques, materials, machines, computers, tools and other equipment that ppl use to convert raw materials into valuable g&s - Individual: technology is the personal skills, knowledge and competences that individual ppl possess - Functional/Departmental: the procedures an techniques that groups work out to perform their work create competences that constitute technology Ex. Surgical operating team ɾMass production: the organizational technology that uses machinery to standardize assembly process to manufacture goods ɾCraftwork: technology that involves groups of skilled workers interacting closely and combining their skills to produce custom-made products Technology and Organizational Effectiveness ▯ ▯ ▯ Conversion Output Process ▯ Input Process Process ▯ ▯ ▯ ▯ ɾAt input stage technology (skills, procedures, competences) allows each company to handle relationships w/outside stakeholders so that the company can effectively manage its specific environment ɾAt conversion stage, technology (machines, techniques) transforms inputs into outputs - Best case is when technology allows a company to ad value at the least cost of resources ɾAt output state, technology allows a company to effectively dispose of finished g&s to external stakeholders - Have competence in testing quality of product an selling/marketing product and after sales service to customers ▯ ɾExternal resource approach: use tech to increase ability to manage an control external stakeholders ɾInternal systems approach: use tech to increase success of attempts to innovate and reduce time need to bring products to market ɾTechnical approach: use tech to improve efficiency and reduce costs while enhancing quality an reliability ▯ Technical Complexity - Theory of Joan Woodward ɾProgramed technology: when procedures for converting inputs int outputs can be specified in advance so tasks can be standardized and work process made predictable ɾTechnical complexity: is a measure of the extent to which a production process can be programmed so that it can be controlled and made predictable ɾHigh technical complexity: when a conversion process can be programmed and be fully automated ɾLow technical complexity: when a conversion process depends primarily on ppl an their skills ɾWith increased human involvement the less reliance on machines, work actives can’t be programmed in advance and this results in difficulty in maintaining high quality and consistency ɾWoodward associated 10 levels of technical complexity with 3 types of technology 1. Small-bath and unit technology: produce customized products/small quantities - technology has low tech complexity, because personal skills are more important than machines - ex. furniture maker for speciality tastes of few - flexibility to wide range of products, but expensive 2. Large-batch and mass-production technology: use machines to increase tech complexity and efficiency - large volumes of standardized products are made with task programmed machines with resulting standardized work and controlled production - ex. gillette - lower production costs lead to lower prices and creates a mass market - automated equipment, but ppl perform assembly operations 3. Continuous-process technology: the high of tech complexity since productions is almost all automated - employees only handle breakdowns - ex. brewing - advantage is continuous production, greater efficiency, more predictability and lower costs ▯ Technical Complexity and Organizational Structure Figure 9.3 (know table) ɾTechnology affects structure ɾCharles Perrow argues that unpredictable events happen in technical complexity - want nuclear power plants to close - others argue continuous process tech can be operated if there’s a balance of centralized an decentralized ▯ Technological Imperative ɾTechnological imperative: argument that tech determines structure, so company must fit structure to tech ɾSmall companies are more receptive to technology, while larger companies are less receptive ɾSome argue that a companies size is more important that tech in determining a companies choice of structure - tech can affect the structure of small company, the structure of a large company may be a product of other factors that cause a company to grow/differentiate ▯ ▯ Routine Tasks and Complex Task ɾThe difference between routine and nonroutine task are, explain why some task are more routine than others.... ɾTask Variability: the number of exceptions (new or unexpected) that a person encounters while performing a task - can occur at any stage of input, conversion or output - High variability is when a person can expect to encounter many new situations/problems while performing task - Low variability when a task is highly standardized so a worker encounters the same situation again an again ▯ ɾTask Analyzability: the degree to which search an info gathering is needed to solve a problem - the more analyzable a task, the less search activity required. More routine - task are hard to analyze when the procedure for doing them an dealing with exceptions can’t be worked out in advance ▯ Four Types of Technology 1. Routine Manufacturing - Low task variability and high task analyzability - New situation few and exceptions not require much search to correct - Large batch tech ▯ 2. Craftswork - Low task variability an low analyzability - Exceptions rarely occur an new situations take time to re
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