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Sociology of Organizationsmaandag 22 mei 2006 | pag. 2. Chapter 4: The Management of Innovation by Tom Burns
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1. zondag 21 mei 2006 | pag. 1 Sociologie Organisatie en BeleidThe Sociology of Organizations by Michael J. Handel Chapters 4 5 6 - Contingency theory
2. Sociology of Organizations
maandag 22 mei 2006 | pag. 2 Chapter 4: The Management of Innovation by Tom Burns G.M. Stalker Management structure and systems:
Organization within a stable programme:
The whole organization in a stable environment is visible as a pyramid of knowledge about het circumstances of the concern.
As one descends through the hierarchy, one finds more limited information, technical and local and more limited control of the resources.
System of management within the factory explicitly divised to keep production and production conditions stable.
Such changes as did occur were inaugurated at the top.
At all levels , decisionmaking occurred within the framework of familiar expectations and beliefs.
Fluctations in demand occur but treated as deviations.
3. Sociology of Organizations
maandag 22 mei 2006 | pag. 3 Chapter 4: The Management of Innovation by Tom Burns G.M. Stalker Organization for a Constant or Predictable Rate of Novelty
Much higher rates of technical and other change.
Formal system of meetings within a context of constant consultation between the directorate and their subordinates.
Free and frequent contact between lower levels in management.
The limits of responsabilities and authority are not defined.
No organization chart.
Change was the normal condition of things.
4. Sociology of Organizations
maandag 22 mei 2006 | pag. 4 Chapter 4: The Management of Innovation by Tom Burns G.M. Stalker Organizations and Innovations
Concerns in which organization was primarily defined in terms of the communication system.
Deliberate attempt to avoid specifying individual tasks.
Any dependence on the management hierarchy as a structure of defined functions and authority was forbidden.
Organization chart is inapplicable.
Fullest use of capacities of its members.
Written communication inside factory was actively discouraged.
Need of each individual manager for interaction with others.
Continual definition and redefinition specific tasks/members of specific co-operative groups.
General awareness of the common purpose of the concerns attitudes.
5. Sociology of Organizations
maandag 22 mei 2006 | pag. 5 Chapter 4: The Management of Innovation by Tom Burns G.M. Stalker Mechanistic and Organic systems of Measurement
Mechanistic and Organic Systems (Rational forms of organization)
Mechanistic Management System for stable conditions
Specialized differentiation of functional tasks
To pursue technical improvement of means not ends of the concern
Reconciliation performances on each levelof hierarchy
Precise definition rights and obligations of each functional role
Rights oligations responsabilities functional position
Hierarchic structure of control, authority and communication
Location of knowledge actualities exclusively top hierarchy
Vertical interaction between members
Operations and working behaviour governed by instructions and decisions by superiors
Insistence loyalty to concern and obedience to superiors ?? condition of membership
Greater importance and prestige to internal (local) than to general (cosmopolitan) knowledge, experience and skill
6. Sociology of Organizations
maandag 22 mei 2006 | pag. 6 Chapter 4: The Management of Innovation by Tom Burns G.M. Stalker Mechanistic and Organic systems of Measurement
Mechanistic and Organic Systems (Rational forms of organization)
Organic Management System for changing conditions
Contributive nature special knowledge/experience common task concern
Realistic nature individual task set by total situation concern
Adjustment and continual re-definition individual tasks through interaction with others
Problems not to be posted upwards, downwards or sideways as someone elses responsability
Spread of commitment
Network structure of control, authority and communication presumed community of interest
No omniscience of head of concern, knowledge located anywhere in the network
Lateral interaction between members
Content communication: information and advice rather than instructions and decisions
Commitment concerns tasks and technological ethos of material progress and expansion
Greater importance and prestige to external (cosmopolitan) knowledge, experience and skill
7. Sociology of Organizations
maandag 22 mei 2006 | pag. 7 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Systems of Production
Dubin contented that technology was the single most important determinant of working behaviour
2 Major phases:
Tools, instruments, machines, technical formulas basic to performance of work
Body of ideas which express goals of the work, functional importance and rational of employed methods
8. Sociology of Organizations
maandag 22 mei 2006 | pag. 8 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Systems of Production
Dubins 2 phases of technology are closely related:
Firms with similar goals and associated manufacturing policies had similar manufacturing processes: the range of tools, instruments, machines and technical formulas was limited and controlled by manufacturing policy.
9. Sociology of Organizations
maandag 22 mei 2006 | pag. 9 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Systems of Production
Companies that produced one off kind to meet customers individual requirements
subdivided by nature of these products:
simple technologically
complex technologically
by size of the unit produced (small/large)
Companies whose production was standardized
subdivided by production methods:
continuous production
interruption at frequent intervals
considerable diversity of products
relatively little flexibility of production facilities
10. Sociology of Organizations
maandag 22 mei 2006 | pag. 10 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Systems of Production
Another way of dividing firms into categories:
those making integral products:
Manufacturing industry
those making dimensional products measured by weight, capacity or volume (chemical plants)
Process industry
Distinction between multi-purpose plants with intermittent production and single-purpose plant with continuous production.
11. Sociology of Organizations
maandag 22 mei 2006 | pag. 11 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Systems of Production
Another way of dividing firms into categories like the production engineers:
Jobbing
Batch
Mass production
12. Sociology of Organizations
maandag 22 mei 2006 | pag. 12 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Systems of Production
Fig.5.1.
13. Sociology of Organizations
maandag 22 mei 2006 | pag. 13 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Production Systems and Size
Important more than merely reclassifying firms on a basis of size, production systems were related to size.
Increasing Technical Complexity
Figure 5.1. scale chronological development and technical complexity
Prediction and control easier in manufacture of dimensional production than in the manufacture of integral products
Each system of production its own applications and limitations, appropriate tot the achievement of its specific objectives
14. Sociology of Organizations
maandag 22 mei 2006 | pag. 14 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Increasing Technical Complexity
Standardization, specification and simplification are the ideals on which modern manufacturing methods are based
Our increased standard of living depends upon standardized production
But
Increases in standard of living result in greater demands for goods manufactured to customers individual requirements
15. Sociology of Organizations
maandag 22 mei 2006 | pag. 15 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Technology and Organization
Organizational Trends
Firms with similar production systems appeared to have similar organizational structures
Existence of a link between technology and social structure (without neglect of the important influence of history and background of the firm and its management)
16. Sociology of Organizations
maandag 22 mei 2006 | pag. 16 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Technology and Organization
The Direct Relationship:
Direct relationship with technical advance:
Length of the line of command
Percentage of total turnover allocated to payment wages and salaries
Ratios of managers to total personnel, clercical and administrative staff to manual workers, direct to indirect labour and graduate to non-graduate supervision in production departments
17. Sociology of Organizations
maandag 22 mei 2006 | pag. 17 Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables
Technology and Organization
Similarities at the Extremes:
Small spans of control in unit production and process production
Large number of skilled workers
Tendency for organic management systems
Flexible organization with a high degree of delegation both of authority and responsibility of decisionmaking with permissive and participating management
Less organizaton consciousness (organization charts)
Line organization, few specialists, line managers and specialists interchangeable
Communications tend to be verbal, life more pleasant and easy-going.
18. Sociology of Organizations
maandag 22 mei 2006 | pag. 18 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Does Context Determine Form?
Do general structures of organization exist of does context determine what structure is appropriate?
19. Sociology of Organizations
maandag 22 mei 2006 | pag. 19 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Six primary variable or dimensions of organization structure:
Specialization
Standardization
Standardization of employment pratices
Formalization
Centralization
Configuration
20. Sociology of Organizations
maandag 22 mei 2006 | pag. 20 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Analysis of Six Structural Profiles
Figure 6.2.
21. Sociology of Organizations
maandag 22 mei 2006 | pag. 21 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Analysis of Organizational Context
Origin and History
Ownership and Control
Size
Technology
Location
Interdependence
22. Sociology of Organizations
maandag 22 mei 2006 | pag. 22 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Exploring Structure and Context
Correlation between size and overall role specialization 0.75
Correlation between Workflow Integration and overall specialization 0.38
Multiple correlation size with technology and specialization 0.81
Multiple correlation organizations dependence on other organizations and geographical dispersion over sites and centralization of authority 0.75
? 50% variability between structures directly related to contextual features such as size, technology, interdepence etc.
23. Sociology of Organizations
maandag 22 mei 2006 | pag. 23 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Exploring Structure and Context
Context is a determing factor
24. Sociology of Organizations
maandag 22 mei 2006 | pag. 24 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
The Effects of Technology on Organizations
Measure of Technology: Workflow Integration
25. Sociology of Organizations
maandag 22 mei 2006 | pag. 25 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Further Developments
Overall decrease in size of 5 to 10% as measured by number of employees
Clear tendency for structuring scores to increase (more specialization, standardization, formalization) but with decrease in centralization
Or more decision making at the top, or to delegate decisions to lower-level specialists
Clear relationship of structure to organizational climate and morale
26. Sociology of Organizations
maandag 22 mei 2006 | pag. 26 Chapter 6: The Measurement of Organization Structures by D.S. Pugh Formal Analysis of Organization Structure
Implications of the Research
Though we would certainly expect personality, events and policies to play their part, the fact that information relating solely to an organizations context enables us to make such good predictions indicates that context is more important than is generally realized.