woodward

Technology

Scott V. Savage, Ph.D.

Joan Woodward Technology and Organizations Background • Initially, Woodward was interested in whether ??????? • Surveyed 110 firms in England to identify what resulted in firms being successful or failing. - She found ???????. • So, what did affect a firm's success?

• Initially, Woodward was interested in whether teaching people management theory did any good. • Surveyed 110 firms in England to identify what resulted in firms being successful or failing. - She found no relationship between trained managers and successful firms. • So, what did affect a firm's success?

Technology • Organizational Structure and Success - For each type of technology, successful firms were closest to the ___ values for their type. That is, the successful firms were most likely to have the structure that best matched the __ structure for firms with that technology. • Woodward found that a firm's system of production is a determinant of its ___ ____, and that firms that had the most appropriate system of ___ for achieving their objectives were more successful. - e.g., successful firms using ___ production had mechanistic management systems (bureaucratic, inflexible) whereas successful firms on ____ production had organic systems (flexible and adaptive) - ___ ___ structure seemed to apply best to mass production

Technology • Organizational Structure and Success - For each type of technology, successful firms were closest to the median values for their type. That is, the successful firms were most likely to have the structure that best matched the median structure for firmswith that technology. • Woodward found that a firm's system of production is a determinant of its organizational structure, and that firms that had the most appropriate system of production for achieving their objectives were more successful. - e.g., successful firms using batch production had mechanistic management systems (bureaucratic, inflexible) whereas successful firms on non-batch production had organic systems (flexible and adaptive) - Classic bureaucratic structure seemed to apply best to mass production

What is technology? • Generally, technology refers to "??????????" (dictionary.com). • Applying this definition to the study of organizations leads us to conclude that technology is the process or processes by which ____are _____into ___. - It is the way work gets ____. • It is a ____process. - The tools, the labor efforts. • It is an _____process. - The ideas and intellectual systems. • We do not distinguish between the two because both are ________.

What is technology? • Generally, technology refers to "a scientific or industrial process" (dictionary.com). • Applying this definition to the study of organizations leads us to conclude that technology is the process or processes by which materials are transformed into outputs. - It is the way work gets done. • It is a physical process. - The tools, the labor efforts. • It is an intellectual process. - The ideas and intellectual systems. • We do not distinguish between the two because both are technology.

Key Lessons • Unlike ___ (and ___ for that matter), Woodward concludes that there is not only one way to best organize. - While the ___ ___ structure worked well with a placid environment and industrial technology, it didn't work as well in other cases. Other types of organization were needed. • This piece sparked further interest in the relationship between ___ form and ___. - This is a main reason this piece is typically classified within contingency theory. • Recall that contingency theory emphasizes the relationship between ___ ___ and ___ __.

Key Lessons • Unlike Taylor (and Weber for that matter), Woodward concludes that there is not only one way to best organize. - While the classic bureaucratic structure worked well with a placid environment and industrial technology, it didn't work as well in other cases. Other types of organization were needed. • This piece sparked further interest in the relationship between organizational form and environment. - This is a main reason this piece is typically classified within contingency theory. • Recallthatcontingencytheoryemphasizestherelationship between design decisions and environmental conditions.

Technology • Woodward Identifies three kinds of technology - ?????? - ????? -????? • She also found that the _______ of an industry was a critical variable for predicting organizational characteristics. - The administrative structure an organization chooses should reflect its ___if it is to be _____

Technology • Woodward Identifies three kinds of technology - Custom or small batch production - Mass or large batch production (discrete units) - Continuous or process production (continuous flow production; an oil refinery is an example) • She also found that the basic technology of an industry was a critical variable for predicting organizational characteristics. - The administrative structure an organization chooses should reflect its technology if it is to be economical

Technology • Organizational Structure and Success - Administrative methods that led to ___ in one system of production led to ____ in another (such as the degree to which managerial duties were codified)

Technology • Organizational Structure and Success - Administrative methods that led to success in one system of production led to failure in another (such as the degree to which managerial duties were codified)

Techology • Woodward found that firms with ____ production systems had ____ ___ structures, leading her to conclude that if you know a firms technology, you could predict its structure. - Specifically, relationships existed between technology and • ???, • ???? • ????

Techology • Woodward found that firms with similar production systems had similar organizational structures, leading her to conclude that if you know a firms technology, you could predict its structure. - Specifically, relationships existed between technology and • span of control, • the number of defined authority levels, and • the ratio of supervisory to non-supervisory staff.

Why does technology matter?: • Some theorists find a close relationship between ____ and ______ structure. ◦Perrow (1967), for example, thinks that two aspects of ____shape _____structure. - ???? - ???? Raw Materials -> ___-> _______ "industrial organization" by _______ offers a slightly different explanation.

Why does technology matter?: • Some theorists find a close relationship between technology and organizational structure. ◦Perrow (1967), for example, thinks that two aspects of technology shape organizational structure. - The number of exceptional events - Analyzability of exceptions Raw Materials -> Technology -> Organizational Structure "industrial organization" by Joan Woodward offers a slightly different explanation.