The ideas and examples referenced below are notes compiled by Robert Keel and Shannon Mayer in their reading of Volti's, Society and Technological Change, 3rd ed., St. Martin's Press, 1995. They are intended for classroom use.

ORGANIZATIONS AND TECHNOLOGICAL CHANGE

• Organizations — dominant part of modern life
• How do organizational structures affect technology

Technology as a Cause of Organizational Structure

• An organization’s structure is strongly influenced by the central technology the organization uses
• Robert Blauner (p. 267) studied relationship between technology used by industry and its effect on the workers

1. Printing — industry that required great skill from the worker
2. Thus, worker had significant autonomy
   1. With recent technological change: computer-based printing, the "printer" is practically non-existent.
3. Textile Mills — machines did all the work.
4. Workers merely cogs in the system. Had little autonomy.

• Joan Woodward (p. 268)—  how different technologies affect organizational structures
  • Not concerned with individual technologies, but with general manufacturing processes
    1. Unit and small batch production — e.g. shipbuilding
    2. Large-batch and mass production — e.g. automobile manufacturing
    3. Process production — e.g. production of chemical/petroleum products
  • Each category distinguished by differences in technological complexity and the extent to which uncertainty can be reduced through the application of routine procedures
  • 1 and 3 required far less rigid planning — workers had more freedom
  • 2 required very very specific rules — workers had less freedom, hierarchial structure
  • A successful organization is one that uses structures and procedures that are appropriate to the productive technology employed
• Charles Perrow (p. 269)—  considered the degree of variability of raw materials (objects--people) processed by organization  and the extent to which problem-solving procedures can routinized (number of exceptional cases).
  1. Few exceptions and analyzable searches: routinized organizations and custodial institutions (steel mils and prison)
  2. Few exceptions and unanalyzable searches: craft industries and socializing institutions (schools)
  3. Many exceptions and analyzable searches: engineering firms, programmed learning
  4. Many exceptions and unanalyzable searches: non-routine manufacturing (areospace) and therapeutic institutions (elite psychiatric hospitals).
  • Perrow’s definition of technology— it is a way of doing things
  • Perrow not concerned with specific material stuff used in technology but rather, overall organizational effectiveness.
  • Organizational structure is (should be) based on the particular qualities of the raw materials used, as well as the technologies used to process these materials.

Despite the differences among the three theories, all concur that technology does influence organizational structure. Also, in order to be successful, an organization needs to match its organizational structures and processes to the technologies it employs.

Technology as a Consequence of Organizational Structure

• Organizations can shape technological change through their ability to affect the supply and demand for a particular technology.

"An organization responsible for a sizable portion of an industry can greatly influence the technological development of the industry as a whole when it creates (or refrains from creating) new products." (270) (The Browser Wars) (Time's coverage of Microsoft's Anti-Trust Case)

• On what basis do organizations make technological choices?
• Little research done on this issue
• Technologies are often seen as independent entities

"A technology might be selected not because of its innate superiority, but because it meets the needs of the power holders within that organization." (Ibid.)

• Thus, the organization itself creates the technology or the need for it
• There may be several technologies that could meet a particular need, but often one in particular is selected because it meets the goals of those in power. "How the Refrigerator Got Its Hum"
• The above questions will take on greater importance as computers and automated systems are used more in the production process

Interorganizational Relations and Technological Development

• No business develops ALL of its technologies. It must rely on others for some of its supplies
• Thus, technological change is not solely the result of independent organizations, but rather the relationship between many organizations
• In these relationships, technological change can either grow or stagnate
  • The Automobile Industry:

• Industry historically dependent on many sources for supplies
• Suppliers called OEMs (original equipment manufacturers)
• Traditionally, relationship between OEM and Auto was non-cooperative
• OEMs were uncertain of how their products were being used
• This relationship is one reason why American cars fared so poorly against Japanese
• Japan relies on much more cooperation between auto and OEM
• American Auto beginning to cooperated more with OEMs

"...The creation of effective working relationships between separate organizations is an essential element of technological and economic vitality." (274)

Organizational Size and Technological Innovation

• Technological innovation requires commitment of personnel, money, and equipment
• As technology grows more complex, it is difficult to imagine that the "mom and pop" workshops of yesterday could produce the technology of today.
• Along the above reasoning, it would seem that only large firms would be the best source for technological output
• It is true that large scale factories will produce most technology BUT:
• Technological innovations will not necessarily emerge from these sources
• The individual will still be a source of innovation — but will probably rely on large firms to make her innovation a technical reality

Entrepreneurs and Organizations

• Organizations require the work of many people in order to function
• Organizations rely on three bureaucratic principles:

1. Specialization
2. Formalization (use of rules and regulations)
3. Hierarchical authority

• Although bureaucracies are often viewed as inefficient there is no reason why they should be
• Bureaucracies have limitations — thrive best with routine, which can be an enemy to innovation
• Inventors need freedom, not regulation

"There is a basic incompatibility of the new inventor and the large corporation. Large companies have well-developed planning mechanisms which need to know at the beginning of a new project how much it will cost, how long it will take, and above all what it’s going to do. None of these answers may be apparent to the inventor." (276) Jack Kilby, co-inventor of the integrated circuit

Questions?

1.  If you directed a research laboratory how would you structure work so as to allow for creativity, but inhibit the wasting of time on unproductive tangents?  How would you distinguish between productive and creative ideas and potentially unproductive ideas?

2.  Many key industries are dominated by a handful of large firms.   This tendency has become common in light of consolidations and buy outs.  How might this trend impact technological innovation?  What may its impact be on overall economic development?

3.  In 1986 Steve Jobs was eased out as the president of Apple?   Why?  About 2 years ago he was rehired.  Why?

• Back to Chapter 15

• Back to the Role of Experts

• On to the role of Government

• Chapter 3