Workplace Technology and

Design
Chapter

13
Understanding the Theory & Design
of Organizations
Eleventh Edition
Richard L. Daft

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Service and Manufacturing Technologies

• Technology refers to the work processes,

techniques, machines, and actions used to
transform input into outputs
• Technology influences organizational structure
• Understanding technology helps dictate how
organizations can be designed for efficiency
• Core technology relates to the transformation
process to provide goods/service
• Non-core technology is not directly related to
the primary mission of the organization
2
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Core Transformation Process for a
Manufacturing Company

3
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 Pressures Affecting
Organization Design

4
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 Manufacturing Firms

• Technical complexity defines the extent of

mechanization of the manufacturing process
• Three basic technology groups defined by
Woodward:
– Small-batch and unit production
– Large-batch and mass production
– Continuous-process production

5
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Woodward’s Classification Based on
System of Production

6
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duplicated, or posted to a publicly accessible website, in whole or in part.
Relationship between Technical Complexity
and Structural Characteristics

7
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 Strategy, Technology, and Performance

• Strategy, structure, and technology need to

be aligned
• Successful firms have complementary
structures and technologies
• Failing to adopt a new technology or failing to
realign strategy can lead to poor performance

8
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Flexible Manufacturing Technology
vs. Traditional Technologies

9
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 Lean Manufacturing
• Highly trained employees at every stage of
production
• Cut waste and improve quality
• Incorporates technological elements
• Paved the way for mass customization
– Using mass-production technology to quickly and
cost-effectively assemble individual goods for
customers

10
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 Comparison of Organizational
Characteristics

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 Service Firms

• Service technologies are different from

manufacturing technologies and require different
organizational design
• Education, health care, transportation, and banking
all have unique dimensions
• Services have intangible output
• There is direct interaction with customer and
employee
• Human element is important
• Quality of service cannot be directly measured
12
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Core Organization Service Technology

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Trend Toward Lean Services
• Customer expectations are rising
• Expectations have required that service firms
must become lean, too
– Cut waste
– Improve customer service
• Adopt continuous improvement approach

14
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 Structural Characteristics of Service
Organizations versus Product Organizations

15
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 Non-Core Departmental Technology
• Every department in an organization has a
production process (Charles Perrow)
– Variety: frequency of unexpected and novel
events
– Analyzability: ability to apply standard procedures
• Routine vs. Nonroutine Dimension
• Engineering Technologies
• Craft Technologies
16
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Framework for Department Technologies

17
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Relationship of Department Technology to
Structural and Management Characteristics

18
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 Interdependence and
Management Implications(james
Thompson)

19
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Coordination for Interdependence

20
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 Sociotechnical Systems Model

21
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