Week Five: Organizational Technology and Structure

Week Five Objectives Discuss the Technologies of Public Organizations DJJ Case Short Paper Assignment Determinants and Impact of Structure

Rainey on Structure and Technology “Structure... refers to the configuration of the hierarchical levels and specialized units and positions within an organization, and the formal rules governing these arrangements.” “Technology... Refers to the work processes of an organization that often serves as a major influence on the design of organizational structure.”

Technology in Organizations Process that transforms materials or inputs into outputs Process by which organizations achieve outcomes Components of technology: – Inputs – Transforming Inputs – Producing Outputs

Variety and Analyzability in Organizational Technology (Perrow) Variety – How much task variation or uncertainty? Analyzability – How easy is it to break down processes into mechanical or distinct steps?

Routine Versus Non-routine Technology Routine Technology – Low variety & high analyzability – Implications for organizations Centralized structures Greater span of control Non-routine Technology – Low analyzability & high variety – Implications for organizations More decentralized structures More communication and coordination

Technological Interdependence (Thompson) Captures the degree to which units within an organization depend on each other when completing a task – Pooled – Sequential – Reciprocal More interdependent = less routinized

Technology in Human Service Organizations (HSOs) Transforming clients from one state to another, more preferred state What challenges do having humans for “inputs” pose for HSOs? Who determines what the preferred or prescribed state is or should be? Four stages: – Recruitment and selection – Assessment and classification – Status transformation – Termination and certification

Charting Service Technology

Why HSOs Are Unique Goals Selecting Proper Technology Autonomy of Clients Resources Committed to HSO

Organizational Structure Structure is the organization of the parts What does structure accomplish? – Division of tasks/labor – Coordination and integration – Accountability, rules, procedures Dimensions of structure: – Centralization and formalization – Horizontal and vertical complexity

Factors Affecting Structure Size Environment Technology Culture Monitoring capacity Available incentives

Decentralizing Trends: Larger Spans of Control SMALL SPAN OF CONTROL Close control Expensive Communication is difficult Slower decision making Isolates senior management Discourages employee autonomy LARGE SPAN OF CONTROL Control more difficult Cost savings Facilitates Communication Faster decisions Closer interaction between organizational levels More training and better leadership required

Types of Organizational Structures Simple Hierarchy Circle Network

Grouping Jobs or Activities in an Organization Activity or Functional Grouping – Group individuals and activities by resources Output or Product Grouping – Units are self-contained; coordination across functions Hybrid – Centralized & Decentralized Functions Matrix – Two Supervisors: Functional and Project Dynamic Network Design – Out-sourcing

DJJ Case Who are the key actors and stakeholders? What are their goals and incentives? Describe the environment surrounding DJJ What are the most prominent organizational dilemmas? What is the structure of DJJ? What did you recommend? Short- versus long-term strategies?

Goold and Campbell: Pursuing Structural Change Is this article relevant to public organizations? When should you alter the structure of an organization? What are some issues or concerns to be aware of as you are contemplating structural change? Why do we have such negative perceptions of large public bureaucracies? Are they warranted?

Readings to Be Completed for Next Class Period Rainey, Chapters 5 and 7 Kotter – coursepack Project Status Reports – 10 to 15 minute informal presentation – Key issues, data sources, challenges/obstacles – Expect and anticipate questions Bring your books/readings to class!!!