Management by Unknown

Author:Unknown
Language: eng
Format: epub, pdf

358 Part 4 Organizing

Size and Structure

There’s considerable evidence that an organization’s size affects

its structure.33 Large organizations—typically considered to

be those with more than 2,000 employees—tend to have more

specialization, departmentalization, centralization, and rules

and regulations than do small organizations. However, once

an organization grows past a certain size, size has less influ-

ence on structure. Why? Essentially, once there are around

2,000 employees, it’s already fairly mechanistic. Adding another

500 employees won’t impact the structure much. On the other

hand, adding 500 employees to an organization with only

300 employees is likely to make it more mechanistic.

Technology and Structure

3M Company’s organic structure helps it to

adapt quickly to dynamic environmental forces

Every organization uses some form of technology to convert its inputs into outputs.

of global competition and product innovation.

For instance, CloudDDM uses 3D printers to make prototypes and product parts for

With a flexible structure, 3M can satisfy

corporate customers. This technology has made it possible to conduct the work with few

customers’ fast-growing demand for touch-

workers. According to Mitch Free, CloudDDM’s founder, “we’ll have 100 high-tech 3D

screen products such as Ideum’s new coffee

table PC shown here that incorporates 3M’s

printers running 24 hours, 7 days a week. And it’ll need just three employees: one for

multitouch technology, an application that is

each of the eight-hour shifts.”34 Employees at FedEx Office produce custom design and

key to expanding the reach of 3M’s interactive

print jobs for individual customers. And employees at Bayer’s facility in Karachi, Paki-

systems and displays.

stan, are involved in producing pharmaceuticals on a continuous-flow production line.

Source: Ideum/REX/AP Images

The initial research on technology’s effect on structure can be traced to Joan

Woodward, who studied small manufacturing firms in southern England to determine

the extent to which structural design elements were related to organizational success.35

She couldn’t find any consistent pattern until she divided the firms into three distinct

technologies that had increasing levels of complexity and sophistication. The first cat-

unit production

egory, unit production, described the production of items in units or small batches.

The production of items in units or small

The second category, mass production, described large-batch manufacturing.

batches

Finally, the third and most technically complex group, process production, included

mass production

continuous-process production. A summary of her findings is shown in Exhibit 11-7.

The production of items in large batches

Other studies also have shown that organizations adapt their structures to their

process production

technology depending on how routine their technology is for transforming inputs into

The production of items in continuous

outputs.36 In general, the more routine the technology, the more mechanistic the struc-

processes

ture can be, and organizations with more nonroutine technology are more likely to

have organic structures.37

Environmental Uncertainty and Structure

Some organizations face stable and simple environments with little uncertainty; oth-

ers face dynamic and complex environments with a lot of uncertainty. Managers try

to minimize environmental uncertainty by adjusting the organization’s structure.38 In

stable and simple environments, mechanistic designs can be more effective. On the

other hand, the greater the uncertainty, the more an organization needs the flexibility

Exhibit 11-7

Unit Production

Mass Production

Process Production

Woodward’s Findings on

Structural

Low vertical

Moderate vertical

High vertical

Technology and Structure

characteristics:

differentiation

differentiation

differentiation

Low horizontal

High horizontal

Low horizontal

differentiation

differentiation

differentiation

Low formalization

High formalization

Low formalization

Most effective

Organic

Mechanistic

Organic

structure:

M11_ROBB7604_14_SE_CH11_pp346-pp377.indd 358

03/10/16 5:37 PM

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.