Sociologie Organisatie en Beleid
The Sociology of Organizations by
Michael J. Handel
Chapters 4 – 5 – 6 - Contingency theory
zondag 21 mei 2006 | pag. 1
Chapter 4: The Management of Innovation by Tom
Burns – G.M. Stalker
Management structure and systems:
Organization within a stable programme:
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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.
Sociology of Organizations
maandag 22 mei 2006 | pag. 2
Chapter 4: The Management of Innovation
by Tom Burns – G.M. Stalker
Organization for a Constant or Predictable
Rate of Novelty
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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.
Sociology of Organizations
maandag 22 mei 2006 | pag. 3
Chapter 4: The Management of Innovation
by Tom Burns – G.M. Stalker
Organizations and Innovations
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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 cooperative groups.
General awareness of the common purpose of the concern’s attitudes.
Sociology of Organizations
maandag 22 mei 2006 | pag. 4
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
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Specialized differentiation of functional tasks
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To pursue technical improvement of means not ends of the concern
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Reconciliation performances on each levelof hierarchy
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Precise definition rights and obligations of each functional role
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Rights – oligations – responsabilities functional position
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Hierarchic structure of control, authority and communication
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Location of knowledge actualities exclusively top hierarchy
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Vertical interaction between members
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Operations and working behaviour governed by instructions and decisions by superiors
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Insistence loyalty to concern and obedience to superiors →→ condition of membership
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Greater importance and prestige to internal (local) than to general (cosmopolitan) knowledge,
experience and skill
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)
Organic Management System for changing conditions
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Contributive nature special knowledge/experience common task concern
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Realistic nature individual task set by total situation concern
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Adjustment and continual re-definition individual tasks through interaction with others
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Problems not to be posted upwards, downwards or sideways as someone else’s responsability
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Spread of commitment
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Network structure of control, authority and communication – presumed community of interest
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No omniscience of head of concern, knowledge located anywhere in the network
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Lateral interaction between members
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Content communication: information and advice rather than instructions and decisions
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Commitment concern’s tasks and technological ethos of material progress and expansion
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Greater importance and prestige to external (cosmopolitan) knowledge, experience and skill
Sociology of Organizations
maandag 22 mei 2006 | pag. 6
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:
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2.
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
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’s 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.
Sociology of Organizations
maandag 22 mei 2006 | pag. 8
Chapter 5: Technology and Organization by
Joan Woodward
Analysis of Technical Variables
Systems of Production
Companies that produced “one off” kind to meet customer’s 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
Sociology of Organizations
maandag 22 mei 2006 | pag. 9
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
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Distinction between multi-purpose plants with intermittent production
and single-purpose plant with continuous production.
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 like the production engineers:
• Jobbing
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Batch
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Mass production
Sociology of Organizations
maandag 22 mei 2006 | pag. 11
Chapter 5: Technology and Organization by
Joan Woodward
Analysis of Technical Variables
Systems of Production
Fig.5.1.
Sociology of Organizations
maandag 22 mei 2006 | pag. 12
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
Sociology of Organizations
maandag 22 mei 2006 | pag. 13
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
Sociology of Organizations
maandag 22 mei 2006 | pag. 14
Chapter 5: Technology and Organization by
Joan Woodward
Analysis of Technical Variables
Technology and Organization
Organizational Trends
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Firms with similar production systems appeared to have similar
organizational structures
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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)
Sociology of Organizations
maandag 22 mei 2006 | pag. 15
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
Sociology of Organizations
maandag 22 mei 2006 | pag. 16
Chapter 5: Technology and Organization by
Joan Woodward
Analysis of Technical Variables
Technology and Organization
Similarities at the Extremes:
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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.
Sociology of Organizations
maandag 22 mei 2006 | pag. 17
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?
Sociology of Organizations
maandag 22 mei 2006 | pag. 18
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
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Standardization
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Standardization of employment pratices
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Formalization
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Centralization
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Configuration
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
Analysis of Six Structural Profiles
Figure 6.2.
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 Organizational Context
• Origin and History
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Ownership and Control
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Size
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Technology
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Location
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Interdependence
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
Exploring Structure and Context
• Correlation between size and overall role specialization 0.75
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Correlation between Workflow Integration and overall specialization
0.38
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Multiple correlation size with technology and specialization 0.81
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Multiple correlation organization’s 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.
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
Context is a determing factor
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
The Effects of Technology on Organizations
• Measure of Technology: Workflow
Integration
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
Further Developments
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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 lowerlevel specialists
Clear relationship of structure to organizational climate and morale
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
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 organization’s
context enables us to make such good predictions indicates that
context is more important than is generally realized.
Sociology of Organizations
maandag 22 mei 2006 | pag. 26