Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo Organizational structure...

Senter for teknologi, innovasjon og kultur (TIK) - Universitetet i Oslo

Organizational structure

Torsdag 17. november 2005Forelesning 5


Core question

• Which factors determine the structure of the organization?


Division and coordination

• “Every organized human activity – from the making of pots to the placing of a man on the moon – gives rise to two fundamental and opposing requirements: the division of labor into various tasks to be performed, and the coordination of these tasks to accomplish the activity. The structure of an organization can be defined simply as the sum total of the ways in which it divides its labor into distinct tasks and then achieves coordination among them.”

Henry Mintzberg The Structure of Organizations (1979)


Division and coordination

• Two main structures of relevance:

– The division of labor

– Systems of coordination and control


Outline

1. Core technology and structure, rational perspectives

2. Natural views on structure3. Professional organizations4. Size and structure5. Networks


1. Core technology and structure

• The main argument:

– The structuring of organizations (division of labor and control mechanisms) is determined by the nature of their core technology

• Rational system argument (contingency theory)



• The technical core of an organization:– Define the primary outputs produced

– Follow the process by which the organization produces these outputs from beginning to end

– Include all components that are crucial for the functioning of the production process

• Technical components• Organizational components• Knowledge components



• Exercise– Describe the technical core of your organization



• Three dimensions of core technology

– Complexity: number of items included in the process

– Uncertainty: variability of items in the process

– Interdependence: connectedness of items



• Exercise:– Categorize the technical core of your organization on

the three dimensions using three levels: high, medium, low

• Complexity: number of items included in the process

• Uncertainty: variability of items in the process

• Interdependence: connectedness of items



• Organizations have different technical cores and their structures vary accordingly

– Assumptions:• High complexity structural differentiation• High uncertainty less formalization• High interdependence coordination important



• Find concrete examples of the following kinds of organizations:

– Low complexity, uncertainty, interdependence

– High complexity, uncertainty, interdependence



• Basic coordination mechanisms– Rules and programs– Schedules– Departmentalization– Hierarchy– Delegation– Client coordination

– Primarily capable of handling moderate levels of complexity, uncertainty and interdependence



• Advanced coordination strategies:

• Reducing information (complexity, uncertainty, interdependence)

– Process organization– Slack resources



• Advanced coordination strategies:

• Increase information handling capacity– Add systems / resources in established hierarchy

– Lateral connections• Liaison roles• Task forces• Project teams• Matrix structures


2. Natural views on structure

• The social shaping of technology– The development and implementation of technologies

a result of social processes

– Attacks the idea that technology determines organizational structure

– Social structures shape technology rather than technology shaping structures



• Structures as choices– Organizations can choose a number of different

alternative structures in a given situation

– Choice will be the result of internal struggles for power



• Informal structures

– Challenges the idea that formal organization can solve coordination problems

– Organizations need to take psychological and social aspects of the work place into account



• Tacit knowledge

– Challenges the idea that organizations can formalize the essential parts of their technical cores.

– Knowledge is often tacit and well functioning routines may not be the result of formal procedures.


3. Professional organizations

• The competent professional as a resource for handling increased complexity

– “Professional organizations incorporate two layers of response to task complexity: complex performers enter into and are supported and constrained by complex organizational structures.”


4. Size and structure

• Larger organizations tend to be more structurally complex

• Larger organizations are generally more formalized

• Formalization allows for increased decentralization of decision making authority


5. Networks

• Neither market nor hierarchy

– Complimentary strengths between organizations

– Relations important

– Conflicts handled by norms of reciprocity

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