Technology and Structure

Technology is composed of the major techniques (processes) and tasks performed to produce the output of the organisation. 

Organisations employ two types of technology -operations technology, and information technology. Operations technology represents the tools, techniques and know how necessary for effective task performance. Work flow of every organisation consists of the acquisition of inputs (reasons), the processing of these inputs, and the exit of outputs. 

Example 

A hospital takes in patients, treats them, and sends them out hopefully healthier. 

As far as operations technology is concerned it includes managerial and non-managerial knowledge or experience, a range of equipment from very simple to very complex, production techniques that vary widely, and a variety of different materials. 

Example 

An individual weaving a rug on a hand loom is using relatively simple technology, which an operator in the control room of a large automated refine is using complex, sophisticated technology. Yet, both are involved in operations technology. 

On the other hand, information technology converts information inputs into information outputs. Since organisations are essentially "information-processing systems", information technology is also equally relevant. 

While designing and structuring an organisation, you need to bring about and sustain sound interrelationship between workflow operations technology, and information technology. 

In order to establish relationship between an organisation's technology and its structure, you can classify the technologies used by organisations into two types of activities - routine (simple, requiring a few repetitive tasks); and non-routine (complex, requiring a variety of non-repetitive tasks). 

Example 

The technology used in mass-production activities may be classified as routine. The technology utilised in research and development activities may be classified as non-routine. 

The structures that are most effective for these two technologies differ, For organisations employing a routine technology, a mechanistic structure is usually more effective. An organic structure is generally more effective for organisations employing a non-routine technology. 

Further, note that technology is also an important consideration for departmental units. A number of simple and complex technologies may be used in different departments within an organisation. 

Example 

The marketing research and computer systems departments are likely to have non-routine technologies. Both the departments can be organically structured, since they need a lot of freedom and flexibility to be effective. In contrast, the accounting and production departments are typically routine. They can be mechanically structured.