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Organization theory and design: Lecture 15 provides students with content about: organizational level service technologies; changing focus from production to service; differences between service and manufacturing technologies; designing service organizations; departmental technology;... Please refer to the lesson for details!
Organizational Level Service Technologies • Changing focus from production to service 15 Differences Between Service & Manufacturing Technologies Manufacturing Service Tangible product Intangible Inventory No inventory Capital asset intense Lab/Knowledge intense Little direct customer involvement Much more HR less important Most important Quality measured directly Perceived Long response time Short Site mod important Site extremely important Differences Between Service & Manufacturing Technologies Examples: • SERVICE: airlines, hotels, consultants, health care, law firms • PRODUCT & SERVICE: fast-food outlets, cosmetics, real estate, stockbrokers, retail stores • PRODUCT: soft drink companies, steel companies, automobiles, mining, food processing plants Designing Service Organizations Structure Boundary spanners Service Few Product Many Decision making Decentralized Centralized Formalization Lower Higher Employee skills High Lower Skill emphasis Inter personal Technical Departmental Technology • Departments often have characteristics similar to service technology, providing services to other departments within the organization • Each department has its production process that consists of a distinct technology • Framework used on the understanding of departmental technologies was developed by Charles Perrow Framework Uses Two Elements: Variety: – Task variety, frequency of unexpected and novel events that occur in the conversion process, if they are high Variety is high Analyzability: – – – – When the process is analyzable, the work can be reduced to mechanical steps and participants can follow a set pattern to solve problems The reference for solutions is SOPs, manuals, text books, etc Not so if the problem has low analyzability Here the reference for solution is much less explicit and lies in implicit or tacit transfer of knowledge which is built through accumulated experiences Framework VARIETY • To what extent would you say your work is routine? • Do most of the times people solve the problem/issue the same way? • Are members performing repetitive activities in doing their jobs? ANALYZABILITY • To what extent is there a clearly known way to the major types of work you normally encounter? • To what extent is there an understandable sequence of steps that can be followed in doing your work? • To your work, to what can you actually rely on established procedures and practices? ... to other departments within the organization • Each department has its production process that consists of a distinct technology • Framework used on the understanding of departmental technologies... unexpected and novel events that occur in the conversion process, if they are high Variety is high Analyzability: – – – – When the process is analyzable, the work can be reduced to mechanical steps and. .. extent is there an understandable sequence of steps that can be followed in doing your work? • To your work, to what can you actually rely on established procedures and practices?