Dr Christopher T Selvarajah and

DF Stanley Petzall

Faculty of Business Staff Papers

SWINBURNE INSTITUTE OF TECHNOLOGY A division of Swinburne Ltd

TECHNOLOGY

Dr Christopher T Selvaraj ah and

Dr Stanley Petzall

Serial No. 6 0

ISBN 0 85590 648 0

Christopher Selvarajah is Senior Lecturer in Marketing and Organisational Behaviour in the Faculty of Business, Swinburne Institute of Technology, and Dr Stanley Petzall is Senior Lecturer in Organisational Behaviour, in the School of Management, Deakin University.

This paper should not be quoted or produced in whole or in part without the consent of the authors, to whom all comments and enquiries should be directed.

0 Selvarajah, C T, 1989

ABSTRACT

In the age of information, the role of appropriate technology and the role of management in harnessing output is seen to be crucial for the survival of not only business organisations but also the overall economic productivity of nations. ~ybernatic or information technology, as it is now commonly known, has engulfed the world at an alarming speed. Many blame the October 18, 1987 stockmarket crash to panic caused by 'information overloadf and the difficulty the public had in differentiating and absorbing information. Others, on the other hand praise modern technology for the efficient and effective relaying of global information and thus reducing a protracted global slump.

Therefore, given the role of modern technologies in harnessing greater output, the need for both familiarity and competence in operating these technologies and working in an increasingly modern technological environment is apparent for managers and workers.

This paper introduces some concepts pertaining to technology in relation to management of organisations. The concept of technology, the various phases of technological development and the factors affecting the choice of technology are discussed. This is followed by the implications of technology on individual and group behaviour in organisations. We also examine the effects of technology and technological change on organisational structure and behaviour. Finally, we give our ' view about the development of future technologies and their expected impact on organisations.

INTRODUCTION

~c~uiness' reports that the fundamental economic problem that is facing Australia is not the short term but the long term prospects of our Australian industries adjusting to the changing needs of the world economy. The Australian Federal Government and the state governments in the last few years have tried to address the fundamental issue of structural change and micro economic reforms in the economy. Senator John Button has often stated that management and industry have been slow to adjust to changes. As the federal minister responsible for industry, the Senatorls effort to restructure the struggling motor vehicle industry has been dubbed the Button Plan.

The ~ustralian export base is still dependent on primary industry and this is slowly being eroded away. Australia's

- traditional markets are either becoming self sufficient or in moving towards regionalisation, have restricted imports of agricultural products.

The -basic problem in the manufacturing industry in Australia is that it has been for far too long been cosseted behind high protective barriers, and has not been compelled to adopt an outward oriented competitive approach to the world economy.

The problem that Australia has to address' immediately is how it is going to restructure its industrial sector to compete for markets with the developed and the developing economies of the world. It is imperative that the technology it chooses should reflect the needs of the changing environment.

Technology has a considerable impact and effect on management in organisations, Stoner et.al, for instance, note that technology is an element of the indirect environment which has a noteworthy influence on management techniques. * Luthans, on the other hand, examines technology according to the manner by which it affects individual behaviour. Most management experts have at one time or another written on technology and its effects on management. Their conclusions have all been similar. In order for good management to be practised, due attention must be given to selection or adaptation of the appropriate technology,

Technology, in its narrowest sense, can be equated with simple mechanical techniques and in its broadest sense may be thought of as being a body of knowledge possessed by society. More simply put, technology refers to the tools that people use in performing goal directed work. Although there has been no consensus as to a universally accepted definition of technology, we shall use the concept in the sense of 'mechanical techniques and abstract knowledge that are employed by humans to help attain organisational objectives1. 4

In this paper, we examine in a more general way the different types of technology, the factors influencing choice of technology, the impact of technology on human behaviour and ways of managing technological change.

PEIASES OF TECHNOLOGICAL DEVELOPMENT

Even though there are no clear cut lines of demarcation, the process of technology can be conceptualised as being a continuum of different phases of development. Over time, technological development has generally moved from the very basic handicraft phase to the highly complex and complicated cybernated phase. In the different phases of development, the organisational structure set in place contributes to the control and social mechanisms within the organisation.

The relationship between technology and structure has been of interest to academics and researchers for a number of years. The celebrated work of Woodward on the effects of technological change on organisational design was one of the first ma'or contributions to this area of research. Collins 2 and Hull , and ~erwin', among others have however, questioned Woodwardts proposition that technology is a major determinant of organisational design. They raise the issue of whether technology has a major impact on structure, relative to other variables such as organisational size.

Handicraft technology

Although there may have been other forms of technology prior to this, handicraft technology marks the beginning of the kinds of technology which are relevant to organisational design. The handicraft industry's production is based on batch process. A variety of simple tools may be used to perform the work, but workers rely primarily on the use of their hands.

This type of technology is still evident in many developing countries. The virtues of handicraft industries have been a subject of debate in the quest of enhancing human values and avoiding the pitfalls of modernisation. Mahatma andh hi for one, objected to the humiliation of mankind when it becomes dependent on other forms of technology which take away their personal initiative.

Mechanised technology

This phase of technological development was triggered off by the Industrial Revolution. The introduction of the factory system meant that man, for the first time, worked with power driven machines. Output and productivity were greatly enhanced.

woodward' s8 broader concern with technology in terms of 'how' and 'whyr organisations adopt certain structural forms was perhaps an extentsion of the work of the social theorist, vebleng, who proposed that the machine process was the fundamental factor which shaped modern institutions and western culture. The Tavistock studies1' also contributed to

the systematic analysis of Woodwardfs approach to technology in the workplace. The Tavistock studies argued that organisations consisted of two dynamic subsystems the social and the .technical. Woodward's contribution to the theory that technology is an important factor in shaping the structure of industrial organisations, seems to have its foundation in the studies conducted at the Tavistock Institute.

Mass production technology

This third stage was brought about by the rearrangement of the procedures used to implement mechanisation. It introduced division of labour and job specialisation. Tasks were broken down into small sub tasks and workers were required to be skilled in performing one sub task. This resulted in the ability to manufacture goods on a large scale.

Rackham and ~oodward'' stated that task variability is the conceptual link between the supervisory span of control and the type of production operation. For example, 'in mass production, task variety is less and there is greater standardisation of the product and process, facilitating mechanisation.

Mass production systems give rise to work methods that require a control mechanism consisting of a mixture o f bureaucratic rules and procedures and strong supervisory personalities.

Automated technology

Often referred to as the 'secondf Industrial Revolution, automated technology eliminated almost completely the need for human beings in the physical work process.

Whereas the first Industrial Revolution introduced power driven machines, the fsecond' one requires people to play only a control role in their operations.

Woodward asserted that the demand for automation represented broad historical changes in the production technologies and a gradual shift from the direct involvement of human beings in the production process. Mass production and process organisations differ in terms of the numbers of people they employ. Mass production organisations employ far more people, but process organisations are much more capital intensive.

Tracy and ~zumi'~ state that automation in organisations demands greater two way communication between employees involved in the work process, and that, the most effective organisational design is based on smaller workunits for better face to face contact. woodward13 also argues that in an automated organisation, delegation of authority is inevitable. ~ull'~ states that the higher the degree of automation, the lower the span of control. He explains that when organisations increase the degree of automation, many direct workers will be replaced by machinery. Emphasis will then be on supervision over a less number of machine operators, rather than over large direct labour, engaged in the production process.

Cybernated technology

Perhaps the most significant contribution to the development of this phase was made by the invention of the computer. Here, machines are used to control and run other machines; and people are only required to program and maintain the computer. It is important to realise that these forms of technology are by no means mutually exclusive. That is, the development of this stage does not signify the termination of the preceding one. In fact, all stages of technological development mentioned above are still very much with us today. This becomes especially obvious when we note that we often find parts of one contained in another. For example, an motor assembly plant would probably utilise all five stages of technological development mentioned above.

Hull and ~ollinsl~ in a controversial paper, argue that cybernation has created a new category in the batch process. They state that, many batch operations are moving to technologies that are complex in terms of knowledge, automation, integration and regulation and yet retain the capacity to produce small runs of different products. An example of this new category is the specialised and highly skilled groups of employees involved in research and development of computer software.

CHOICE OF TECHNOLOGY

Managers are sometimes given the task of selecting the type of technologys that they would adopt for their organisations. These decisions are normally quite flexible in nature, but evidence shows that it is advisable for management to consider four major issues. Whatever the type of technology employed, managers should strive for compatibility between the technology and: l6

1. the goals of the organisation

2. the work itself

3. the technological means available

4. the people who will use the tools.

The goals of the organisation

The diverse goals of different organisations naturally influence the choice of technology used. For example, an automobile plant would certainly have a different type of technology than, say, a university. Also, technology may differ horizontally, in line with the flow of work; or vertically through the management hierarchy itself. The compatibility of technology with organisational goals should not be over looked by managers, as it is fundamental to the decision making process.

The work itself

The characteristics of the work itself affect the choice of technology. Managers should review the degree of differentiation in the work. More specialised and repetitive work would normally require a simpler technology, while more complex and diversified work probably usually requires more sophisticated technology.

The forms of technology

The forms of technology available also affect the choices open to management.^ open to management. More complex tasks, as mentioned earlier, probably require more sophisticated technology. The problem, however, arises when more than one technology is available to perform the same task. Some kinds of technology may perform tasks economically and more efficiently while others may perform them in a way which creates more worker satisfaction. The manager must then decide which is the most suitable technology for his/her purposes.

The people who will use the tools

Finally, the technology chosen should be suited to the people in the organisation. The compatibility of the technology with employees in general, should not be passed off as something trivial. This is perhaps the most- important factor to consider, and certainly has been an area which has been largely ignored. Broadly speaking the greater the 'fit*, the more likely it is for employee satisfaction and work efficiency to be achieved. Conversely, the less the 'fitf, the more likely it is that employee dissatisfaction and lack of motivation will prevail. People become alienated and display resistance. Managers often find it is difficult to select and implement a technology that suits both the people and the organisation.

TECHNOLOGY AND BEHAVIOUR

We have seen that technology affects people in organisations. Behaviour can be changed by technology, sometimes for the better, sometimes for the worse. The final effect which technology has on behaviour will be largely dependent on whether technology inhibits or facilitates the growth and development of a person. Naturally, the more it facilitates the growth and development of a person, the more positive effects will be on behaviour. The more technology inhibits the growth and development of a person, the more negative its effects will be. Research has indicated that technology can

affect individual behaviour and group behaviour when it is implemented so that it will:''

1. place limits on how a job is divided among people and groups ;

2. determine status relationships among people and groups according to educational requirements or position in the flow of work;

3. position people, for example, so that they can be close enough to talk to one another; and

4. affect the conditions of work (eg. noise and temperature level).

Technology and individual behaviour

The general effect of technology on organisational behaviour is often more negative than it is positive. One such negative result is alienation at the individual level. This pro5lem was highlighted by Walker and Guest in their study of automobile assembly line workers. 18 The structured, monotonous and repetitive nature of the work resulted in these workers detesting their jobs. They stayed on only because they needed to make a living and they were afraid of losing their retirement benefits. Walker and Guest also found that the quality of work performed was poor as a result of workers feeling powerless, useless and isolated. Dissatisfaction was prevalent and the ultimate result was a high rate of absenteeism, and a variety of nervous reactions towards their work. Other studies have confirmed the alienating tendencies inherent in assembly line technology, both in automobile manufacturing and other types of manufacturing. However, it is still open to management to adopt strategies and policies which will counteract the alienating tendencies in mass production technology. Low job satisfaction, negative worker attitudes and conflict are not iner, this is where the paradox of technology lZes. More complex technologies may demand cohesive group behaviour, but, at the same time, the very nature of the technology may set up barriers to group cohesiveness by requiring physical distance or other activities which limit the opportunities for developing stable relations.20 Thus, the manager is faced with a possible trade off. But generally, if positive feelings and attitudes are created by technology, group cohesiveness should be increased and performr, this is where the paradox of technology lies. More complex technologies may demand cohesive group behaviour, but, at the same time, the very nature of the technology may set up barriers to group cohesiveness by requiring physical distance or other activities which limit the opportunities for developing stable relations. 20 Thus, the manager is faced with a possible trade off. But generally, if positive feelings and attitudes are created by technology, group cohesiveness should be increased and performance should be enhanced.

Joan Woodward who conducted a study of 100 English firms in the 1960fs, uncovered some rather interesting effects of technology on group behaviour. 21 She classified her firms into three types on the basis of their technologies:

1. Unit Production - Production of individual products tailored to customer specifications. The technology used here was the least complex of the three since the item was produced largely by individual craftsmen.

2. Mass or Large Batch Production - This was the production of goods on a large scale. Sometimes an assembly line method of production was used.

3. Process Production - Production of material which was sold by weight or volume. The nature of the process was usually complex and continuous. Woodward found that the quality of group relationships appeared better at the extremes than in the middle of the scale. For instance, finns in the mass production category had more bureaucratic structures, used more fornial written forms of communication and experienced more industrial disputes than firms in the other two categories. 22

Commenting on Woodwardfs findings, Hellriegel and Slocum observe that the levels of group autonomy differed considerably in the three types of technology. 23

They note, for instance, that employees in the unit production technology were highly motivated and satisfied with their jobs. Each was able to produce an entire product and took pride in his/her work. They had sufficient job depth and job scope to keep them satisfied. The mass production technology, on the other hand, had the lowest level of autonomy. Hellriegel and Slocum attribute this to the monotonous and unchallenging nature of the jobs created by this technology Finally, they observe that employees of the process technology had a higher level of autonomy than those in the mass production technology but at a lower level of autonomy than the workers in the unit production technology. Members- of this group were found to be highly independent people and communicated with each other on a continuous basis. This group had considerable control over the allocation of certain tasks and the job to be performed in general. 2 4

Technology and Industrial Relations

Woodward noted that technology also has an important influence on 'employer employee relations in firms. The quality of industrial relations appeared to be better at both ends of the technological spectrum i.e. in small batch and process production than in the middle i.e. in large bass or mass production. She attributed this phenomenon to a combination of the degree of pressure exerted by the technology on management and workers (greatest in mass production technology), the size of work groups created by the technology (largest in mass production technology) and the need to

achieve economy in the use of labour (most intense in mass production) . 25 Other writers have also argued that assembly line technology tends to produce the worst industrial relations. This has been attributed to increased stress and strain, boredom, lack of opportunity for social interaction, lack of job satisfaction, caused by extreme specialisation of labour and fragmentation of work, and increased shift and night work, which disrupts bodily rhythms, and family and social life. 26

STRUCTURE

Woodward's study of the 100 firms is, however, not renowned so much for the effects technology has on groups, but rather for the relationship between the technology of an organisation and its structure. She had initially embarked upon the study when she was puzzled by the lack of consistency between adherence to classical organisational principles and the performance of organisations. When her preliminary analysis showed that there appeared to be no significant relationship between the two, Woodward, turned to the technological processes used by the f inns. 27

It was then that she classified the technological processes of the firms into the three categories already mentioned. This is illustrated in Figure 1.

FIGURE 1

TECHNOLOGY AS AN INTERACTIVE VARIABLE

I STRUCTURE I ,- I TECHNOLOGY I PEOPLE'S BEHAVIOUR:

ACTIVITIES, INTERACTIONS, DECISIONS

Source: Atchison, Hill, Management Today (USA) Harcourt Brace ~ovanich, Inc., 1978, p.290.

This later phase of Woodwardfs study did indicate a significant relationship between the technologies employed by the organisation and the structure of the organisation. She reached the following conclusions:

1. The more complex the technology, the greater the number of managers and management levels (going from unit to process) . This in essence meant that complex technologies resulted in tall organisational structures. Woodward explained that complex technologies required a greater amount of supervision and coordination thus more levels and managers. (Figure 2).

2. The span of control of first line managers increased from unit production to mass production, and decreased from mass production to process production technology. In both the unit and process production technologies, the lower level employees were quite independent and skilled. They tended to form small work groups making a narrow span of management inevitable.

FIGURE 2

TECHNOLOGICAL COMPLEXITY AND MANAGEMENT LEVELS

NUMBER AND TYPE OF FIRMS

Unit and Small Batch Production

Large Batch and Mass Production

A Median

10

Number of Levels

Process 5 Production 0

Source: J.A. Stoner, Management, (Englewood Cliffs, NJ: Prentice Hall Inc., 1978), p.325.

3. The greater the technological comp+exities of a firm, the larger the clerical and administrative staff. This seems logical as more complex technologies would naturally require more support services.

1 I III ] l o l l I I i

4. The level of bureaucracy increases from unit to mass and decreases from mass to process production. The tasks performed in the mass technology are quite structured, monotonous and fixed. This means a classical management approach is more appropriate to this type of technology.

2 3 4 5 6 7 8

Business functions

More specifically, Woodward identified three major business functions: 28

1. Production

2. Development

3. Marketing

She observed that the order in which these functions occurred in different technologies varied from one product system to a-nother. This was brought about by each technology having a different central function which was seen as being critical to the success or survival of a firm. The relationship of business functions to production technology is illustrated in Figure 3.

-Unit Production - In this system, planning is for the short term. The development and production of a product cannot proceed until firm orders have been received. Marketing then would be the first function. Once these orders have been received, product development and then production can proceed accordingly. Development is the critical function.

Mass Production - Here, planning is for the long term and production is geared towards future - or predicted market demand. The product is first developed, then produced and then marketed to its target consumer. Because this system caters for a market which has been defined, production must proceed as smoothly as possible and is thus seen as the critical function.

Process Production - Marketing is the critical function in this system. The production is first developed with a sample batch being run off as a part of the development phase. Having developed the product, a market analysis with have to be performed to assure the firm than an established demand for the product exists. After confirming this, production can then proceed with as few interruptions as possible.

FIGURE 3

SEQUENCE OF BUSINESS FUNCTIONS ACCORDING TO PRODUCTION TECHNOLOGY

UNIT '-9 MASS

PROCESS I-') MARKETING } PRODUCTION > Source: D.R. Hampton, Contemporary Management, (McGraw Hill Book Company, 1981), p.121.

success of an organisation

Woodward concluded that for each organisation with a specific technology there would be a particular form of organisational structure which would be more suitable for it than others. In other words, successful firms would normally have a structure which was harmonious with the type of technology employed. For instance, a firm which was successful and employed mass production technology would probably be using classical principles of management. 29

After Woodward published her discoveries, the University of Aston conducted a similar study on fifty firms. 30 In this study three dimensions of structure were examined:

1. The extent to which activities were prescribed;

2 . the concentration of authority; and

3 . the extent of personal control over the flow of work.

his study reached the following conclusions:

1. Work tended to become increasingly structured as a firm grew in size.

2. organisations tended to become more impersonal over time. This was a direct result- of management losing control over the flow of work and thus adopting a more structured and directive approach.

3. Even organisations that relied primarily on human knowledge and skills could have authority concentrated at the administrative hierarchy.

The Aston study can be interpreted as confirming Woodward's conclusions that operational technology affects the structure of an organisation in terms of the flow of work. However, the Asfon researchers placed more emphasis on size than technology as a -determinant of structure.

INTRODUCING AND MANAGING TECHNOLOGICAL CHANGE

Although technology in general is moving at a rapid pace. there are certain industries where technological change occurs at a much slower pace than others. Stoner et.al, for instance, suggest three types of environment which influence rates of technological change.

1. The stable environment - This is an environment where change does not normally occur. Example of industries operating in this sort of an environment are hard to come by these days, but, as Stoner et.al point out, it is a long time since dramatic changes occurred in the manufacturing of some items, such as toothpicks, manhole covers and violins.

2. The turbulent environment - In this environment, the firm is normally surprised by the change that occurs. Changes are unpredictable and occur at almost any possible time. Firms .normally go through a period of turbulence before things settle down again. However some firms, such as those in the computer industry, have to operate in an almost constant state of turbulance.

3. The changing environment - This environment allows the manager to predict the trend or change that will occur and thus prepare for it. The trend is likely to be quite apparent and firms normally are able to adjust to it quite easily. Some typical examples are many service, construction and supply industries. 31

Burns and Stalker performed a study based on the three types of environments and concluded that a mechanistic system of management would be suitable for firms in stable environments. This system is somewhat similar to classical management in

. that its activities are broken down into specialised tasks. Objectives and authority are the keywords and are defined by top level management This would be a bureaucratic system of

*32 classical management.

For the turbulent environment, Burns and Stalker suggested that an organic system of management would be best.

Activities in an organic system are likely to be solved in group settings rather than in fsupervisor subordinate settings'. Members communicate on a frequent basis and no hard and fast rules are set. Organisation is much more fluid and less hierarchical. The emphasis is on communication of advice and information rather than orders. Sanctions are based on peer group pressure rather than coming from above. There is a network structure of control, authority and communication.

Finally, Burns and Stalker suggest a system that is a combination of both the mechanistic and organic system of management for firms in changing environments. This system would be neither as structured nor as indefinite as the first two types as the environment is neither as dynamic nor as stable.

Research shows that the less routine the technology, the greater the uncertainty; the less effective the mechanistic qualities and more important it is to use flexible forms of organisation. In .the research conducted by Selvarajah on 148 managers employed in 10 different industrial categories in Australia, the computer industry was perceived to operate in a dynamic environment where uncertainty is' high and there is potential for major and rapid changes. In this typeg30f environment, a flexible organic structure is most suitable.

Table 1 shows the influence of new technology on industry type. The respondents from the computer industry as indicated in the table, also stated that their industry has a very high need to develop training. programmes associated with new technology. This suggests that the survival of organisations.

Table 1 Influence of new technology on industry type

Q1.7 Count Row Pct

Low High Row 1 2 3 4 5 Total

Government 6.8 15.9 15.9 34.1 27.3 29.7

Defence

3 Exploration

4 4 8 2 11 5 30 Manufacturing 13.3 26.7 6.7 36.7 16.7 20.3

5 3 1 4 Service 75.0 25.0 2.7

6 1 1 1 2 3 8 Retail 12.5 12.5 12.5 -25.0 37.5 5.4

Tertiary

Professional

9 Insurance & Finance

10 Computers

11 Other

Column total

Chi square

48.33249

D.F.

40

Significance

Source: Selvarajah, C.T, 1989, p.218.

in the computer industry depends very much on their adaptability to the fast changing technology. Respondents from the other industries like services, retailing, manufacturing and professions do not reflect the same enthusiasm for the development of training programmes associated with new technology. 34

Thus, environmental factors play an important part in influencing the degree to which technological change occurs in different industries, and analysis of the environment is a useful pointer to what management system is best suited to particular conditions.

However, whatever new form of organisation is ultimately adopted in response to the needs of changing technology, it must be remembered that the way in which the new technology and its accompanying changes are introduced are often as crucial to success as the form of organisation of the work itself,

Principles of consultation and employee participation in the introduction of new technology have often been espoused, both as a means to an end, to minimise negative results, and as an end in itself, to give employees a say in decisions affecting them. 35

Adoption of such principles is particularly important where technological change is likely to disrupt established work group relationships and threaten job security. ~ustralia is a highly unionised society, and management is generally unwise to try to force changes onto employees without consultation, as damaging industrial disputes are often the consequence of such action, This has been particularly true of the post 1971 era of recession and unemployment, when job insecurity has spread to previously exempt tertiary sector industries, such as banking and insurance, threatening white collar employment, as well as blue collar employment in secondary sector manufacturing industry. 36

In the late 1970' s, the Federal Government established a Committee of Inquiry into Technological Change in Australia (CITCA) to assist it in economic and social policy making in relation to technological change. The Committee reported in 1980. 37 (CITCA. Technological Change in Australia. Canberra. AGPS, 1980) . The committee made a number of recommendations, including the need for procedures for notification and consultation by employers with their employees prior to introducing technological change. The Fraser Government's response was to accept the CITCA recommendations in principle, but to do little about them in practice. 38

The Australian Council of Trade Unions, however, supported by a number of state governments, launched a test case before the Australian Conciliation and Arbitration Commission, to try to persuade the Commission to adopt the recommendations of CITCA on consultation and other industrial relations issues.

The result was a victory for the ACTU, when the Commission handed down its decision in the Job protection Case in 1984. The decision imposed obligations to employers to consult with, and provide information of a non confidential nature to, employees and their unions prior to introduction of new technology with labour displacement effects or implications. 39 These procedures, however, are confined to certain federal awards only, and do not apply to the whole workforce.

Despite this development, according to Tacy and Gough, llpractical application of the principle of employee participation in the introduction of new technology is (still) not widespread (in Australia)." They argue for the need for Australian employees to have much greater invalvement than is currently the case in terms of timing (prior to any decision to introduce change) , and level and scope of decision making, if adverse impacts of technological change, are to be avoided, and the benefits of new technology are to be fully realised. They cite developments in Scandinavia, especially in relation to introduction of computer systems, as evidence of what can be achieved in this regard. 4 0

It is the general view that issues of employee participation in the workforce will gain in importance and managers need to be aware of the implications of this for organisations. If the technological advances needed to maintain Australia's economic competitiveness are to occur smoothly, managers will need more skills not only in selecting the best -technologies available for theiY purposes, but also in introducing them in a way which will minimise employee resistance and maximise job satisfaction and motivation.

TECHNOLOGICAL FORECASTING

. Managers have realised that technological change is occurring at an incredible pace today. Woodward noted that the ability to perceive this change would have a considerable-impact on organisational structure in general. To survive, managers riow appreciate the fact that they need to know what changes are likely and that the should prepare themselves for the change as far as possible. zl

Many methods are available to a manager to forecast technological change. The more popular methods are the Delphi technique, brain storming and scenario construction.. These methods are frequently used because they are relatively simple and allow the manager to make forecasts with a relatively limited amount of information. The 'bestt method is of course contingent on an array of circumstances. Among other things, a manager should consider for instance, the planning and decision making context, the amount of information available, the level of accuracy required, and also the time available to complete the forecast. 42

TECHNOLOGY AND THE FUTURE

The area which involves the impact of technology on people is one which has provoked strong reactions. Take, for instance, its effects on an organisation that strives to achieve higher productivity. As more and more plants are developed, jobs are redesigned to form new procedures which are not necessarily the best for employees in aggregate. Generally, workers recede more into the background as the level of mechanisation increases. Their abilities and knowledge become less important and this often results in their attitudes becoming even more negative.

It is clear that the effects of technological change are profoundly ambiguous. On the one hand, new and interesting job and career opportunities are opening up. A good example is provided by the computer field, in which the demand for specialists seems almost insatiable. On the other hand, technology can destroy whole occupations and create widespread redundancies and fear about the future. This has been the fate of many of the traditional crafts. computerisation has also had such negative consequences for many semi skilled and clerical and white collar workers in industries like banking and insurance.

More generally, there is a growing concern that technology has almost developed a momentum of its own. ~ncreasingly, people are questioning the ethical implications of the development of certain kinds of technology. The moral dilemmas which can result from in vitro fertilisation are a good example. To a growing extent there is a debate about the ultimate social purposes which technology serves, as well as its economic outcomes. Technology has always been (and probably will continue to be) dynamic and propulsive. It has been observed that there seems to be a general trend in this development over time. Technology is apparently developing at a much faster rate than before. That is to say, the time taken between one technological breakthrough and the next, is taking a shorter period of time to come about. Cameron Hall noted that, 'because of technology, it is taking less time to do some things, hence we have more time to do other thingsr. 43

Thus, we see how technology can have a major impact on management in organisations. Precious time is 'created' and managers find themselves confronted with new issues. Management in the future will then race to create more time, and the organisations that survive and prosper will be the ones that are able to utilise the time created in the most effective manner.

SUMMARY

Technology is always dynamic and propulsive. Technology refers to the tools that people use in performing goal directed work. The phases of technology are handicraft, mechanised, mass production, automated and cybernated (computer) technology. It is important to realise that these forms of technology are by no means mutually exclusive.

The choice of technology depends on the goals of the organisation, the work itself, the forms of technology available and the people who will use the tools. Generally the effects of technology on organisational behaviour are more often negative than they are positive. The nature of organisational structure varies with the complexity of technology employed by an organisation.

We reviewed some of the findings about the relationship between technology, and organisational structure and behaviour. The evidence suggests that certain types of structure are best suited to certain types of technology, and that kinds of technology contain alienating tendencies. However, we cautioned against taking a deterministic view of technology. We argued the need for management to harmonise the technology with the social system, and to consult with workers when change is introduced.

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8. Woodward, J., Industrial Orsanisation: Theory and Practice, Oxford University Press, 1965.

9. Veblen, T,, The Theory of Business Enterprise, Scriber, New York, 1904.

10. Dublin, R., Working union management relations, In Sociology of Industrial Relations, Prentice Hall, Englewood cliffs, New Jersey, 1959.

11. Rackham, J and Woodward, J., The measurement of technical variables, In J. Woodward (Ed.), Industrial Orsanisation: Behaviour .and Control, Oxford-University Press, ond don; 1970, pp- 30 6.

12. Tracy, P and Azumi, K., Determinants of Administrative Control: a test of a theory with Japanese Factories, American Sociolow Review, Vol. 41, 1976, pp.80 94.

13. Woodward, J., Industrial Orsanisation: Theory and Practice, 2nd edition, Oxford University Press, 1980, p.200.

14. Hull, F.M., Task Uniformity, Technolosv and Oraanisation: A Comparative Analysis of Factories in the United States and Japan and a Case Study of an American Marketinq Cor~oration, Unpublished Ph.D Dissertation, Columbia University. .

15. Hull, F and Collins, P.P., High technology batch production systems: Woodward's missing Type, Academy of Manasement Journal, vol. 30, no. 4, 1987, pp. 786 797.

16. Atchison, T.J., & Hill, W.W., Manaaement Today, Harcourt Jovanovich, 1978, N.Y. p.272.

18. Walker, C.R and Guest, R.H. , The man on the assembly line, Harvard University Press, Cambridge, Mass., 1952.

19. Blauner, R., Alienation and Freedom, Chicago University, Press, 1973.

20. Ibid, p.284.

21. Woodward, 1965, op.cit.

22. Ibid., p.39.

23. Hellriegel, D., and Slocum, J.W., Manaaement Continsencv Approaches, Addison Wesley.Inc., USA, p.405.

Ibid.

Woodward, J., Manasement and ~echnolow, HMSO, 1958, p.18.

Stettner, L. The impact of advanced technology on in dustrial relations in Barrett, - B . Rhodes, E. and Bishan, J. (eds.) Industrial relations and the wider societv. As~ects of interaction. Open University Press, 1977, p.64.

Woodward, 1965, op.cit., p.39.

Ibid, p.137

Ibid, p.64.

Pugh, D . S . , Hickson, D.J. and Hinings, C.R. and Turner, c - I The context of organisations. Administrative Science Ouarterlv, vol. 14, (1969), pp.19 114.

Stoner et.al., op.cit, p.423.

Burns, T. and Stalker, G.M., The Manaqement of Innovation, London, Tavistock, 1961.

Selvarajah, C.T., A Studv of the Dimensions that Relate to Trainina Systems Effectiveness: A Systems Perstective, unpublished doctoral thesis, Deakin University, 1989, p.217.

Ibid., p.219.

Tacy, L. and Gough, R. The impact of technological change on organisations and jobs. In Davis, E. and Lansbury, R. (eds.), Technoloav, Work and Industrial Relations. Longman Cheshire, 1984, p.142.

Deery, J. and Plowman, D., Australian industrial relations, p.34. McGraw Hill, 2nd ed., 1985.

CITCA, Technolosical Chanse in Australia, AGPS, Canberra, 1980

Lansbury and Spillane, op.cit., p.213.

Punch, P., Guidebook to Australian Industrial Law, CCH, 4th ed., 1984, pp.553 4.

Tacy and Gough,

Atchison and Hill, op.cit., p.207.

Luthans, op-cit., 1985, p.624.

Ibid.

SWINBURNE INSTITUTE OF TECHNOLOGY

FACULTY OF BUSINESS

STAFF PAPERS PUBLISHED TO DATE

1981 'A Note on Customs Unions Theory: The Viner Controversy RIP' by D J Thomas

1981 'Disequilibrium and the Expectations- Augmented Phillips Curve' by Max Grant

'A View of Ideological Pressures in the Context of Managerial Power' by Max Brown

'Short Term Prediction of Student Numbers in the Victorian Secondary Education System' by Miles G Nicholls

'The Legal Protection of Geographical Trade Names: Prognosis for a Case of Champagne' by Bruce Clarke

'Corporate Planning Practice in Major American and Australian Manufacturing Companies' by Noel Capon, Chris Christodoulou, John U Farley and James Hulbert

1984 'A Modified Markovian Direct Control Model in Fixed Time Incorporating a New Objective Function Specification' by Miles G Nicholls

No 14 1984 'Government Intervention in the Labour Market - A Case Study of the Referral and Placement Activity of the Commonwealth Employment Service in a Major Metropolitan Area' by John B Wielgosz

1984 'Big Business in the US and Australia : A Comparative Study' by Noel Capon, Chris Christodoulou, John U Farley and James M Hulbert

1984 'Modelling the Demand for Tertiary Education - An Exploratory Analysis Based on a Modified Human-Capital Approach' by Miles G Nicholls

1984 'Formal Corporate Planning Practices of Major Australian Manufacturing Companies' by Chris Christodoulou

'The Australian Short Run Demand for Money Function - Further Theoretical Considerations and Empirical Evidence using Bayesian Techniques1 by Edgar J Wilson

'Alternative Job Search and Job Finding Methods: Their Influence on Duration of Job Search and Job Satisfaction1 by John B Wielgosz and Susan Carpenter

'A Comprehensive Study of Strategic Planning in Australian Subsidiary and Non-Subsidiary Companies' by Chris Christodoulou and Peter T Fitzroy

'Towards an 0ptimal.Taxation Structure in Australia1 by David Thomas

' A Suggested Theoretical Basis for the Interpretation of the Effects of Income on the Demand for Tertiary Education' by Miles G Nicholls

'Austrian Economics and Australian Patents' by Bruce Oakman

'Ensuring a Future for your Organisation' by Chris Christodoulou

1

'The Long Search: A Pursuit of Organizational Understanding from the perspective of "System" Thinkers' by Max Brown

'Managing the Introduction of New Technology' by John Newton

'Positive ~conomic Analysis and the Task of State Enterprise Efficiency and Control' by Patrick Xavier

'Profitability of Horizontal Takeovers in the Australian Industrial Equity Market: 1978 to 1982' by M A Johns and N A Sinclair

'A Comparative Examination of Subsidiary and Non-Subsidiary Strategies' by Chris Christodoulou

'Solving Linearly Constrained Nonlinear Programming Problems' by Fatemeh Ghotb

~ *

'An Economic Appraisal of Recent Reforms in Public Enterprise Pricing Policy in Victoria' by Patrick Xavier

'Australian Manufacturing Companies and Academic Institutions: A Comparative Analysis of Strategic Planning' by Noel H Kelly and Robin N Shaw

'Centralisation of Information and Exchange with Special Reference to the South Australian Winegrape Industry' by C Hunt, P Tiernan and E Wilson

'The Impact of Home Office Culture on Subsidiary Strategic Planning' by Chris ~hristodoulou

' A Comparison between Guarantees 'Standby Credits and Performance Bonds' by Ann Johns

'The Effects of Uncertainty and Incomplete Information in a Foreign Exchange Market Subject to Noisy Rational Expectations by Edgar J Wilson

1987 'Inflation Accounting for Australian Public Enterprises - Economic Rationale and Financial Implications' by Barry Graham and Patrick Xavier

1987 'Financial Targets and Dividend Requirements for.Commonwealth Government Business Enterprises - Are They Appropriate and How should They be Determined and Measured?' by Barry Graham and Patrick Xavier

1988 'Wither Co-Operative Federalism? - An Analysis of the Commonwealth Government's Plan for Reform of Companies, Securities and Futures Legislation' by Peter Pascoe

1988 'An Analysis of the Pricing of Section 23 Expert Reports' by Ann Johns

1988 'Food Laws: Reviewing the Regulatory Framework' by Sandra Edmonds

1988 'Share Prices and Divestiture' by J Barker .

'Marketing Education in Malaysia: Implications for Australian Tertiary Institutions' by Christopher Selvaraj ah

'Forecasting the Demand for Tertiary Education using Econometric and Markovian Models' by Miles G Nicholls

'Power Pays .- An Analysis of the Relationship between Managerial Power and Interdepartmental Relations' by Max Brown

'Workers Participation - Concepts, Issues and Prospects. An Australian Perspective' by Christopher Selvarajah and Stanley Petzall

'Peformance Indicators for Telecommunications and Price-Cap Regulation' by Patrick Xavier

'Multinational Enterprises and Host Nation Response' by Christopher Selvaraj ah

'Women in Management' by Christopher Selvarajah and Stanley Petzall

'The Cultural, Political and Legal Environment of International Business' by Christopher Selvarajah

'Australia's Human Capital and Labour " Markets - Their Role in Achieving a More Competitive Economy' by Mirella S De Lorenzo

'A Comparative Analysis of the Strategy and Structure of United States and Australian Corporations' by Noel Capon, Chris Christodoulou, John U Farley and James M Hulbert

'Strategies During Market Transition - A Study of Detergent Marketing in Australia 1930s to 1960s' by David Ch ' ng

'Some Legal and Economic Aspects of Third World Debt' by Louise Kloot

'Access to Corporate Documents - Section 265B of The Code' by Stephen Kapnoullas

'Minding Everybody's Business: Performance Indicators for Australia Post' by Patrick Xavier

'Some Legal Aspects of Electronic Funds Transfer' by Louise Kloot

'Japanese Work Ethics' by Christopher T Selvarajah and Stanley Petzall

.'Strategy, Policy and Operational Planning' by Christopher T Selvarajah

'Technology' by Christopher T Selvaraj ah