organization and technology

8/12/2019 Organization and Technology

1/29


2/29


3/29

Since the beginning of business ingeneral, enterprising businessmen and

women have always aimed for a betterperformance than their competitors.

This means: doing things better andfaster than the others to deliver aproduct or service.


4/29


5/29

But why?

"There is at least one point in the historyof any company when you have tochange dramatically to rise to the next

level of performance. Miss that moment -and you start to decline."

Andy Grove, Intel


6/29

Change in technology is more than justmaking more profits

it is constantly maintaining a rise in thequality of your company.

not only through in house management butalso through keeping up with the times.


7/29

"It is not the strongest of the species that survives, nor the most intelligent, but the onesmost responsive to change. - Charles Darwin

Technology erodes boundaries

Physical and digital worlds areconverging. Consumers expect uniform service

whether they are in the physical world orif they are in the digital world. The convergence of the business and personal

use of technology is also fueling this trend.


8/29

The Next Generation

Technology is just a tool and wont by itselfchange the world.

The next generation has grown up in aworld where use of technology in both theirpersonal and professional lives is inherentlyunderstood.

this almost transparent use of technology will beone of the major sources of change social networking, automation, identity and

intelligence would not be disruptors but ratheran ingrained part of society and business asusual.


9/29

Rise of the Machines

Interconnected machines with the ability

to harvest and exploit data will generateentirely new infrastructures oforchestrated and efficient systems. Intelligence derived from these systems can

be exploited to: enable transforming efficiency gains

open up new modes of operation across boththe physical and virtual world.


10/29

In 2013, mobile devices passed PCs to be the most common Web access tools. By2015, over 80% of handsets in the markets will be smart phones.


11/29


12/29

There are three different methods ofhandling the conversion or production

process - Job, Batch and Flow

The various methods of production are

not associated with a particular volumeof production. (Not exclusive)

several methods may be used at differentstages of the overall production process.


13/29

complete task is handled by a single worker or groupof workers. Jobs can be small-scale/low technology as well as

complex/high technology.

Low technology jobs:

organisation is extremely simple with the required skills andequipment easily obtainable. Enables customer's specific requirements to be included,

often as the job progresses. Examples include: hairdressers; tailoring

High technology jobs: Involve much greater complexity present greater management challenge. The important ingredient in high-technology job

production is project management, or project control. Examples: film production; large construction projects


14/29

work for any task is divided into parts oroperations. Each operation is completed through the

whole batch before the next operation isperformed.

Possible to achieve specialisation of labour.Capital expenditure can also be kept lower.

This method aims to: Concentrate skills (specialisation)

Achieve high equipment utilisation


15/29

Most commonly used method fororganising manufacture. Example: the

production of electronic instruments. Not without their problems:

There is a high probability of poor work flow,

Batch methods often result in the build up ofsignificant "work in progress" or stocks (i.e.completed batches waiting for their turn tobe worked on in the next operation).


16/29


17/29

In order that flow methods can work well,several requirements must be met: (1) There must be substantially constant demand

(2) The product and/or production tasks must bestandardised

(3) Materials used in production must be to

specification and delivered on time (4) Each operation in the production flow must

be carefully defined - and recorded in detail

(5) The output from each stage of the flow mustconform to quality standards


18/29

The achievement of a successfulproduction flow line requiresconsiderable planning, particularly inensuring that the correct productionmaterials are delivered on time and thatoperations in the flow are of equalduration.

Common examples where flow methodsare used are the manufacture of motorcars, chocolates and televisions.


19/29


20/29

The differentiated productThedifferentiated product enjoys a

distinction from other similarproducts/brands in the market.

The differential claimed may be real,with a real distinction on ingredient,quality, utility, or service, or it may bepsychological brought about throughsubtle sales appeals.


21/29

The customised product - Customerspecific requirements are taken into

account while developing the product. Commonly practised in the industrial

product marketing, where themanufacturer and the user are in direct

contact and the product getscustomised to the requirements of thecustomer.


22/29

The augmented productTheaugmented product is the result ofvoluntary improvements brought aboutby the manufacturer in order toenhance the value of the product,which are neither suggested by thecustomer nor expected by them.

The marketer on his own augments theproduct, by adding an extra facility oran extra feature to the product.


23/29

The potential productThe potentialproduct is tomorrows product carrying

with it all the improvements and finessepossible under the given technological,economic and competitive condition.

There are no limits to the potential

product. Only the technological andeconomic resources of the firm set thelimit.


24/29

Tells you the character of anorganization and the values it believes in.

Therefore, when you do business with anorganization or getting into a new job inan organization, it is always a great ideato get to know and understand their

organizational structure.


25/29

Bureaucratic structures maintain strict hierarchies when it comesto people management. There are three types of bureaucratic structures:

Pre-bureaucratic structures lacks the standards.

Usually observed in small scale, start-up companies.

Structure is centralized and there is only one key decision maker.

The communication is done in one-on-one conversations. This type of structures is quite helpful for small organizations due to the

fact that the founder has the full control over all the decisions andoperations.

Bureaucratic structures Have a certain degree of standardization.

When the organizations grow complex and large, bureaucratic structures

are required for management. These structures are quite suitable for tall organizations.

Post-bureaucratic Structures The organizations that follow post-bureaucratic structures still inherit the

strict hierarchies, but open to more modern ideas and methodologies.

They follow techniques such as total quality management (TQM), culturemanagement, etc.


26/29

Functional Structure Divided into segments based on the functions when

managing. Allows the organization to enhance the efficiencies of these

functional groups. Example: Software engineers will only staff the entire software

development department. This way, management of thisfunctional group becomes easy and effective.

successful in large organization that produces highvolumes of products at low costs. The low cost can beachieved by such companies due to the efficiencies

within functional groups. Disadvantage from an organizational perspective if the

communication between the functional groups is noteffective. In this case, organization may find it difficult to achieve some

organizational objectives at the end.


27/29


28/29

Divisional Structure Divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to

function independently.

Divisions can be defined based on the geographicalbasis, products/services basis, or any other measurement.

As an example, take a company such as GeneralElectrics. It can have microwave division, turbinedivision, etc., and these divisions have their ownmarketing teams, finance teams, etc. In that sense,each division can be considered as a micro-company with the main organization.


29/29

Matrix Structure Organization places the employees based on the

function and the product. Gives the best of the both worlds of functional and

divisional structures. In this type of an organization, the company uses

teams to complete tasks. The teams are formedbased on the functions they belong to (ex: softwareengineers) and product they are involved in (ex:Project A).

This way, there are many teams in this organizationsuch as software engineers of project A, softwareengineers of project B, quality engineers of project A,etc.

organization and technology

Documents