What is Organizational Technology?
The tools, techniques, and actions used to transform organizational inputs into outputs
Technology includes
Core Technology
Primary work of organization
Directly creates value
Shapes structure & design
Examples:
Hospital: Patient care
University: Teaching
Support Technology
Enables core work
Administrative functions
Less impact on structure
Examples: Accounting systems, HR information systems, Email and communication
Woodward’s Manufacturing Technology Classification
Small Batch / Unit Production
Mass Production
Continuous Process
Small Batch / Unit Production
Custom products
Low volume, high variety
Skilled craftspeople
Examples: Custom furniture, aerospace, construction
Mass Production
Standardized products
High volume, low variety
Assembly lines
Examples: Automobiles, appliances, electronics
Continuous Process
Automated, continuous flow
Very high volume
Capital-intensive
Examples: Oil refining, chemicals, food processing
Small Batch - Structural Characteristics
Low formalization
Flat hierarchy (few levels)
Small span of control
Decentralized decisions
Organic structure
Mass Production - Structural Characteristics
Moderate formalization
Moderate hierarchy
Small span of control
Some decentralization
More organic
Continuous Process - Structural Characteristics
High formalization
Tall hierarchy (many levels)
Large span of control
Centralized decisions
Mechanistic structure
Characteristics of Service Organizations:
Perrow’s Technology Framework – Departmental Technologies
Routine Technology
Engineering Technology
Craft Technology
Nonroutine Technology