DETERMINANTS OF ORGANIZATION STRUCTURE -

TECHNOLOGY

Presented by;

Jimita Shah (53)

Sinhgad Institute of Business Management

What is technology ?

Processes & methods that transform inputs into

outputs in the organization

3 major contributions:

1) Joan Woodward

2) Charles Perrow

3) James Thompson
 1) Joan Woodward

Proposed 3 types of production technology – UNIT,

MASS & PROCESS

LOW TECHNOLOGY HIGH

Structural Unit Production Mass Process

characteristic Production Production

Complexity Low High Low

Formalization Low High Low

Centralization Low High Low

CONCLUSION: Effectiveness of firms related to the fit between

technology & structure
2) Charles Perrow

• Knowledge perspective of technology

• 2 dimensions of knowledge technology – task

variability & problem analyzability
 TASK VARIABILITY

FEW EXCEPTIONS MANY EXCEPTIONS

CRAFT NON
ROUTINE
ILL DEFINED

PROBLEM
ANALYZABILITY ROUTINE ENGINEERING

WELL DEFINED
 Technology Formalization Centralization Span of control

Routine High High Wide

Engineering Low High Moderate
Craft Moderate Low Moderate- wide
Nonroutine Low Low Moderate-narrow

CONCLUSION: More routine the technology, the more highly

structured the organization should be
 3) James Thompson

Classified technology into 3

types:

• Long-linked technology

• Mediating technology

• Intensive technology
INPUT A B C D OUTPUT
A B C D

LONG LINKED TECHNOLOGY

• Characterized by Sequential interdependence

 TRANSFORMATION
CLIENT A PROCESS CLIENT B

MEDIATING TECHNOLOGY

• Characterized by pooled interdependence

 INPUTS
RESOURCES
A TRANSFORM-
B ATION
OUTPUT
C PROCESS
D

FEEDBACK

INTENSIVE TECHNOLOGY

• Characterized by reciprocal interdependence

CONCLUSION

1. Routineness is the common denominator underlying most

of the research on technology

2. Routine technology positively related to low complexity

3. Routine technology positively related to high formalization

4. Routine technology positively corelated with centralization

if formalization is low
Thank You