The document discusses technology and organizational effectiveness. It defines technology and explains how it exists at different organizational levels. It also discusses how organizations use technology in input, conversion and output stages. Further, it explains that technology allows organizations to become more efficient, innovative and meet stakeholder needs. The document also defines organizational effectiveness and describes three approaches to measure it: control, innovation and efficiency. It discusses how organizations can use technology to improve effectiveness based on these three approaches. Finally, the document summarizes several theories about how technology impacts organizations, including theories by Woodward, Perrow and Thompson.

1. TECHNOLOGY & ORGANIZATIONAL
EFFECTIVENESS
BIKRAM ADHIKARI
MBA 3RD SEMESTER, PCMS

2. TECHNOLOGY
 Combination of skills, knowledge, abilities, techniques,
materials, machines, computers, tools and other
equipment that people use to convert or change raw
materials into valuable goods and services.
Organizational Level Technology is
Individual Level the personal skills, knowledge, and
competences that individual personnel
Functional Level the procedures and techniques that groups
work out
Organizational Level characterize as converting inputs into outputs
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

3. TECHNOLOGY IN ORGANIZATIONAL ACTIVITIES
1. Input Stage
• Technology - Skills, procedures, techniques, and competences – allow each organizational
function to handle relationships with outside stakeholders so that the organization can
effectively manage its specific environment.
2. Conversion Stage
• Technology - a combination of machines, techniques, and work procedures – transforms
inputs into outputs.
3. Output Stage
• Technology – allows an organization to effectively dispose of finished goods and services to
external stakeholders.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

4. TECHNOLOGY IN ORGANIZATION
• Organization use technology to become more efficient, more innovative, and be able to
meet the needs and desires of stakeholders.
• Each department in an organization is responsible for building competences and
developing technology that allows it to make a positive contribution to organizational
performance.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

5. ORGANIZATIONAL EFFECTIVENESS
• Organizational Effectiveness is defined as the degree to which an organization achieves its objectives
with given amount of resources without putting extra pressure on its members.
• Approaches of Organizational Effectiveness
 Researchers have pointed control, innovation, and efficiency as the three most important processes
managers use to assess and measure how effective they, and their organizations, are at creating value.
 External Resources Approach (Control) : Evaluates the organization’s ability to secure, manage, and
control scarce and valued skills and resources.
 Internal Systems Approach (Innovation) : Evaluates the organization’s ability to be innovative and
function quickly and responsively.
 Technical Approach (Efficiency) : Evaluates the organization’s ability to convert skills and resources into
goods and services efficiently.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

6. ORGANIZATIONAL EFFECTIVENESS THROUGH TECHNOLOGY
External Resources Approach (Control) :
Uses technology to increase its ability to manage and control external
stakeholders.
Internal Systems Approach (Innovation):
Uses technology to increase the success of its attempts to innovate; to
develop new products, services, and processes; and to reduce the time
needed to bring new products to market. i.e, mass production
Technical Approach (Efficiency)
Uses technology to improve efficiency and reduce costs while simultaneously
enhancing the quality and reliability of its products.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

7. THEORIES OF TECHNOLOGY
Technical Complexity: The theory of Joan
Woodward
Routine Tasks and Complex Tasks: The
Theory of Charles Perrow
Task Interdependence: The Theory of James D.
Thompson
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

8. TECHNICAL COMPLEXITY: THE THEORY OF JOAN WOODWARD
 Technical complexity is the extent to which a production process is controllable and
predictable.
 According to Joan Woodward, technical complexity differentiates small-batch and unit
production, large-batch and mass production, and continuous-process production.
 Woodward argued that each technology is associated with a different organizational structure
because each technology presents different control and coordination problems.
 In general, small-batch and continuous-process technologies are associated with an
organic structure, and mass production is associated with a mechanistic structure.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

9. ROUTINE TASKS AND COMPLEX TASKS: THE THEORY OF CHARLES
PERROW
 According to Charles Perrow, two dimensions underlie the difference between routine and
nonroutine tasks and technologies: task variability and task analyzability.
 The higher the level of task variability and the lower the level of task analyzability, the more
complex and nonroutine are organizational tasks.
 Using task variability and analyzability, Perrow described four types of technology: crafts
work, nonroutine research, engineering production, and routine manufacturing.
 The more routine the tasks, the more likely an organization is to use a mechanistic
structure. The more complex the tasks, the more likely an organization is to use an
organic structure.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

10. TASK INTERDEPENDENCE: THE THEORY OF JAMES D. THOMPSON
 James D.Thompson focused on the way in which task interdependence affects an
organization’s technology and structure.
 Task interdependence is the manner in which different organizational tasks are related to one
another and the degree to which the performance of one person or department depends on
and affects the performance of another.
 Thompson identified three types of technology, which he associated with three forms of task
interdependence: mediating technology and pooled interdependence; long-linked technology
and sequential interdependence; and intensive technology and reciprocal interdependence.
 The higher the level of task interdependence, the more likely an organization is to use
mutual adjustment rather than standardization to coordinate work activities.
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.

11. THANK YOU
SOURCE: JONES, M. (2018). ORGANIZATIONAL THEORY, DESIGN AND CHANGE (7TH ED.). PEARSON INDIA.