Sources of Structural Complexity: The Technical Core

1
Sources of Structural Complexity The Technical
Core

• I. Defining and measuring technology
• Technology as a general determinant of
  organizational structure
• Complexity or diversity
• Uncertainty or unpredictability
• Interdependence
• The greater the technical complexity, the
  greater the structural complexity.
• The greater the technical uncertainty, the less
  formalization and centralization of decision
  making.
• The greater the technical interdependence, the
  more resources must be devoted to coordination
  (e.g., departmentalization).

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Sources of Structural Complexity The Technical
Core

• II. Technology and Structure Rational System
  Views
• Basic coordination mechanisms
• a. Rules and programs
• Rules and programs secure consistent and
  acceptable outcomes (e.g., forms, documents,
  procedural manuals)
• b. Schedules
• Schedules are necessary when different types of
  activities need to be carried on in the same
  location.
• c. Departmentalization
• Organizations group tasks so as to minimize
  coordinating costs.
• Organizations will place reciprocally related
  tasks in the same or closely adjacent units,
  sequentially related tasks in less closely
  adjacent units, and tasks exhibiting pooled
  interdependence in the least closely adjacent
  units.

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Sources of Structural Complexity The Technical
Core

• II. Technology and Structure Rational System
  Views
• Basic coordination mechanisms
• d. Hierarchy
• Higher level managers deal with unexpected and
  irregular occurrences on an exception basis, and
  lower level workers deal with more routinized
  regular tasks. Hierarchy is also a useful
  solution in that it is used to group tasks.
• e. Delegation
• Organizations do not control their work in detail
  but just specify the nature of the outcomes
  required and delegate some autonomy to workers.
• f. Microcoordination
• This refers to a coordination device to encourage
  the task object such as customers or clients to
  monitor and guide the services received.

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Sources of Structural Complexity The Technical
Core

• II. Technology and Structure Rational System
  Views
• (2) Additional coordination strategies Reducing
  information
• a. Product versus process organization
• Information processing costs can be efficiently
  reduced by the creation of product based
  department.
• b. Slack resources
• Slack resources reduce information processing
  requirements by lowering standards.
• Slack resources reduce the need for information
  processing by reducing interdependence. Slack
  resources allow looser coupling of interdependent
  work systems.

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Sources of Structural Complexity The Technical
Core

• II. Technology and Structure Rational System
  Views
• (3) Additional coordination strategies
  Increasing capacity
• a. Augmented hierarchies
• The capacity of hierarchical system can be
  increased in two ways (1) by increasing the
  information flows between nodes (actors) and (2)
  by increasing the information processing
  capacities of the nodes.
• b. Lateral connections
• Lateral connections allow information to flow
  more directly among participants in
  interdependent departments or work groups rather
  than up and over through hierarchical channel.
• liaison roles, task forces, project teams, and
  matrix structures

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Sources of Structural Complexity The Technical
Core

• II. Technology and Structure Rational System
  Views
• (3) Additional coordination strategies
  Increasing capacity
• b. Lateral connections
• Liaison roles are specialized positions or units
  created to facilitate interchange between two or
  more interdependent departments.
• A task force is a temporary group that is given a
  delimited problem to solve. It allows multiple
  representatives to interact intensively over a
  short period of time to achieve a specific goal.
• Project teams are groupings of personnel across
  departmental lines that fulfill some portion of
  the regular work of the organization.
• Matrix structures refer to organizational
  structures in which vertical and lateral channels
  of information and authority operate
  simultaneously. The traditional principle of
  unity of command is given up, and several
  different bases of authority are allowed to
  jointly govern the work flow.

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Sources of Structural Complexity The Technical
Core

• III. Technology and Structure Natural System
  Views
• (1) Social shaping of technology
• Technologies are socially constructed and
  influenced by the social and political context.
• Technologies are influenced by organizational
  politics.
• Social forces and cultural values have a powerful
  influence over the technologies that are selected
  for development as well as the ways in which
  those technologies evolve.

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Sources of Structural Complexity The Technical
Core

• III. Technology and Structure Natural System
  Views
• (2) The strategic connection of technology and
  structure
• Natural system theorists argue that contingency
  theorists place too much weight on external
  constraints and do not give sufficient attention
  to actors and their capacity for choice
  (Strategic contingency theory).
• Internal politics and strategic choices of
  organizations determine the structural forms, the
  manipulation of environmental features, and the
  choice of relevant performance standards that are
  selected by organizations.

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Sources of Structural Complexity The Technical
Core

• III. Technology and Structure Natural System
  Views
• (3) Reliance on informal rather than formal
  structure
• Inlarged roles of participants
• Internalized and peer controls
• More decentralized decision making processes
• Less formalized organizational roles
• Minimized vertical distinctions and flatten
  hierarchies
• More direct, face-to-face communications among
  participants

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Sources of Structural Complexity The Technical
Core

• III. Technology and Structure Natural System
  Views
• (3) Reliance on informal rather than formal
  structure
• a. Socio-technical systems (STS) Eric Trist
• Organizations are both social and technical
  systems. The needs of both should be served
  (joint optimization).
• STS concept of work design calls for the
  involvement of workers whenever possible in
  planning a new or redesigned work process.
• Volvo of Sweden
• the Quality Circle Movement in Japan

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Sources of Structural Complexity The Technical
Core

• III. Technology and Structure Natural System
  Views
• (3) Reliance on informal rather than formal
  structure
• b. Clan systems William Ouchi (1980, 1981)
• Non-specialized roles and career paths
• Implicit and internalized control mechanisms
• Holistic rather than segmented concerns
• Slow and diffuse evaluation
• Long-term, often lifetime, employment
• e.g. Japanese firms