Task Interdependence:
Thompson’s three types of technology
• Mediating
•Pooled interdependence
• Long-linked
•Sequential interdependence
• Intensive
•Reciprocal interdependence
9-
1
Thompson’s Classification of
Interdependence and Management
Implications
Form of
Interdependence
Demands on
Horizontal
Communications,
Decision Making
Pooled (bank)
Low
communication
Client
Sequential
(assembly line)
Client
Medium
communication
Reciprocal (hospital)
Client
High
communication
Type of
Coordination
Required
Priority for
Locating Units
Close Together
Standardization,
rules, procedures
Divisional Structure
Low
Plans, schedules,
feedback
Task Forces
Mutual adjustment,
cross-departmental
meetings, teamwork
Horizontal Structure
Medium
High
Routine and Nonroutine Tasks
and Organizational Design
Structural characteristic
Nature of technology
Routine tasks
Nonroutine tasks
Standardization
High
Low
Mutual adjustment
Low
High
Specialization
Individual
Joint
Formalization
High
Low
Hierarchy of authority
Tall
Flat
Decision-making authority
Centralized
Decentralized
Overall structure
Mechanistic
Organic
9-
3
Technical Complexity:
Woodward’s Theory
Some kinds of technology are more complex
and difficult to control than others
because some are more difficult to program
than others.
Technology is said to be programmed when
procedures can be specified in advance to
make tasks standardized and predictable.
9-
4
Technical Complexity and Organization Structure
Technical
Low
Structural
Characteristics
Small-Batch and Unit
Technology
Complexity
Mass Production
Technology
High
Continuous-Process
Technology
Levels in the hierarchy
3
4
6
Span of control of CEO
4
7
10
Span of control of firstline supervisor
23
48
15
Ratio of managers to
nonmanagers
1 to 23
1 to 16
Relatively flat, with
narrow span of control
Relatively tall, with
wide span of control
1 to 8
Approximate shape of
organization
Type of structure
Organic
Cost of operation
High
9-
Very
tall, with very
narrow span of control
Mechanistic
Organic
Medium
Low
5
Process Choice at a Bakery
Advanced Manufacturing Technology
Computer-aided design
Computer-aided materials management
Just-in-time inventory systems
Computer-integrated manufacturing
10 -
7
Relationship of Computer-Integrated
Manufacturing Technology to
Traditional Technologies
Flexible
Manufacturing
Small batch
NEW
Customized
Mass
Customization
CHOICES
PRODUCT FLEXIBILITY
Mass
Production
Continuous
Process
Standardized
Small
Source: Based on Jack Meredith, “The Strategic Advantages of New
Manufacturing Technologies For Small Firms.” Strategic Management
Journal 8 (1987): 249-58; Paul Adler, “Managing Flexible Automation,”
California Management Review (Spring 1988): 34-56; and
Otis Port, “Custom-made Direct from the Plant.”
Business Week/21st Century Capitalism, 18 November 1994, 158-59.
BATCH SIZE
Unlimited
Differences Between Manufacturing
and Service Technologies
Manufacturing Technology
1.
2.
Service Technology
1.
2.
3.
4.
5.
6.
7.
8.
Intangible product
Production and consumption take place
simultaneously
Labor and knowledge intensive
Customer interaction generally high
Human element very important
Quality is perceived and difficult to
measure
Rapid response time is usually
necessary
Site of facility is extremely important
3.
4.
5.
6.
7.
8.
Tangible product
Products can be inventoried for later
consumption
Capital asset intensive
Little direct customer interaction
Human element may be less important
Quality is directly measured
Longer response time is acceptable
Site of facility is moderately important
Service:
Product and Service:
Product:
Airlines, Hotels,Consultants,
Healthcare, Law firms
Fast-food outlets, Cosmetics,
Real estate, Stockbrokers,
Retail stores
Soft drink companies,
Steel companies,
Auto manufacturers,
Sources: Based on F. F. Reichheld and W. E. Sasser, Jr.,
“Zero Defections: Quality Comes to Services,” Harvard Business
Review 68 (September-October 1990): 105-11; and David E.
Bowen, Caren Siehl, and Benjamin Schneider, “A Framework
for Analyzing Customer Service Orientations in Manufacturing,”
Academy of Management Review 14 (1989): 75-95.