Sociologie Organisatie en Beleid The Sociology of Organizations

Sociologie Organisatie en Beleid The Sociology of Organizations by Michael J. Handel Chapters 4 – 5 – 6 - Contingency theory

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.

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.

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 cooperative groups. General awareness of the common purpose of the concern’s attitudes.

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

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 else’s 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 concern’s tasks and technological ethos of material progress and expansion • Greater importance and prestige to external (cosmopolitan) knowledge, experience and skill

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: 1. 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

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.

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

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.

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

Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables Systems of Production Fig. 5. 1.

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

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

Chapter 5: Technology and Organization by Joan Woodward Analysis of Technical Variables Technology and 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)

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

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.

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?

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 of employment pratices • Formalization • Centralization • Configuration

Chapter 6: The Measurement of Organization Structures by D. S. Pugh Formal Analysis of Organization Structure Analysis of Six Structural Profiles Figure 6. 2.

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

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 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.

Chapter 6: The Measurement of Organization Structures by D. S. Pugh Formal Analysis of Organization Structure Exploring Structure and Context is a determing factor

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

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 lowerlevel specialists Clear relationship of structure to organizational climate and morale

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.