Page 198 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 6 • Organizational Structure and Design 197
unit production
Try It! The production of items in units or small batches
If your professor has assigned this, go to the Assignments section of mymanagementlab.com to mass production
complete the Simulation: Organizational Structure. Large-batch manufacturing

process production
Continuous flow or process production
Today’s View. Although some formalization is necessary for consistency and control,
many organizations today rely less on strict rules and standardization to guide and regulate
employee behavior. For instance, consider the following situation:
A customer comes into a branch of a large national drug store chain and drops off a roll
of film for same-day developing 37 minutes after the store’s cut-off time. Although the
sales clerk knows he’s supposed to follow the rules, he also knows he could get the film
developed with no problem and wants to accommodate the customer. So he accepts the
film and hopes that his manager won’t find out. 23

Did this employee do something wrong? He did “break” the rule. But by “breaking” the
rule, he actually brought in revenue and provided good customer service.

◂ ◂ ◂ From the Past to the Present ▸ ▸ ▸

• Initial research on Technology S Structure done by Joan technology is. These design decisions can influence an
Woodward. 24 organization’s sustainability efforts.
• Woodward, a British management scholar, studied small • More recent studies also have shown that organizations
manufacturing firms in southern England to determine the adapt their structures to their technology depending on
extent to which structural design elements were related how routine their technology is for transforming inputs
to organizational success. 25 into outputs.
• No consistent pattern found UNTIL firms divided into • More routine technology, more likely to have mecha-
three distinct technologies that had increasing levels of nistic structure
complexity and sophistication. • More nonroutine technology, more likely to have
• Least complex and sophisti- organic structure
cated: Unit production—the If your professor has assigned this,
production of items in units or How does technology go to the Assignments section of
small batches mymanagementlab.com to com-
• Mass production—large-batch affect organization plete these discussion questions.
manufacturing design? Talk About It 3: Why is (a)
• Most complex and sophisticated: mechanistic structure more appropri-
process production—continu- ate for an organization with routine
ous-process production technology and (b) organic structure more appropriate for an
• One of the earliest contingency studies. organization with nonroutine technology?
• Her answer to the “it depends on” question: Appropriate Talk About It 4: Does Woodward’s framework still
organizational design depends on what the organization’s apply to today’s organizations? Why or why not?

Exhibit 6–8 Woodward’s Findings on Technology and Structure

UnIT PRodUcTIon mASS PRodUcTIon PRoceSS PRodUcTIon
Structural characteristics: Low vertical differentiation Moderate vertical High vertical differentiation
differentiation
Low horizontal differentiation High horizontal differentiation Low horizontal differentiation
Low formalization High formalization Low formalization
Most effective structure: Organic Mechanistic Organic