In: Operations Management
Describe Woodward's classification of organisational technologies. Explain why each of the three technology groups is related differently to organisational structure and management processes
Woodward’s classification focuses more on the association of organizational performance based on structure. The classified groups are –
- Group 1: It relates to the technologies which produces small project or unit projects or small batch of project. This is more successful in construction companies where organic structures are followed. Thus, termed as “Small batch and unit technology”.
- Group 2: This group relates to the technologies which has less involvement on the production processes such as assembly line operations, consumer electronics etc. It is important where standardized processes are followed, and identical products are produced. This is applicable to organizations which have mechanistic structure. Thus, termed as “large batch and mass production”.
- Group 3: This group relates to the technologies which are used in ongoing processes and where less manual involvement is realized, and huge capital is involved in production, such as oil refineries or chemical plants. This group represents the organization comprising multiple levels of management and are in organic in nature. Thus, termed as “continuous process production”.
Therefore, based on these groups the unit technology is lesser complex whereas rest falls in the more complex categories.