Organizational Design and Technology

Organizational Design and Technology

Introduction

Technology is the practical application of knowledge and use of techniques in productive activities. This definition reflects a sociological concern with technology as a social product which incorporates both the 'hardware' of human artefacts such as tools and machines and the knowledge and ideas involved in different productive activities. Such knowledge need not depend upon science as its driving force: for example, the relatively simple forms of mechanization associated with the early industrial revolution. More recent developments in energy production and information technology may, however, depend upon innovations derived from organized science, Sometimes technology is referred to in the narrow sense as machines, whereas wider definitions include productive systems as a whole and even work organization and the division of labour. The narrow definition tends to treat technology as autonomous and ignore the social processes involved in the design and choice of technology; more inclusive definitions make it difficult to distinguish between the technology and the social arrangements with which it is related.

Jones (2010) defines organizational technology as “the combination of skills, knowledge, abilities, techniques, materials, machines, computers, tools, and other equipment that people use to convert or change raw materials, problems, and new ideas into valuable goods and services” (p. 240). In describing how technology impacts organizational design, the textbook and other required readings discuss the theories of Joan Woodward, Charles Perrow, and James D. Thompson, each of whom offers a way of explaining how technology influences optimal structure of organizations.

Technology Increase Organizational Efficiency

In an information society, several types of activities regarding information occur. First, information creation requires obtaining facts and data and organizing them into a meaningful collection. Information distribution requires effort and equipment that convey information where it is needed. Information processing and analysis transform information to maximize its usefulness for specific situations. Information storage ensures that information will continue to be available, while information retrieval activities make it easier to find relevant information in the future.

Unlike other economic activities, information activities are not confined to a specific sector of the economy. Information activities are useful and relevant in the production, distribution, and consumption of all types of goods and services. Sometimes, information activity is indistinguishable from the production of goods and services. Someone who builds a computer is both producing a good and creating a tool to perform information activities. Someone who creates and maintains a web site may be providing a service while also distributing, storing, or retrieving information.

While some dispute that information technology is fundamentally changing society, most agree that information technology is having a significant impact on many organizations. Organizational employees often need to have skills related to the use and implementation of informational technology. Many organizations use web sites and the Internet for marketing, communication, advertising, sales, and other functions. The structure of organizations has also been influenced by information technology. With the implementation of information technology to increase the efficiency of communication, organizations can be more flexible and less ...