New_Technology

------------------------------------------------- Chapter 23- Technology as a Contingency Factor ------------------------------------------------- By Richard M. Burton and Borge Obel Burton and Obel state that various dimensions of technology have an effect on the organizational design. Within chapter 23 they consider and analyze technology’s effect on 7 aspects of organizations (including formalization, centralization, complexity, configuration, coordination, and control, and incentives) by using propositions. Technology Effects on Formalization Propositions 1. If technology routineness is low, then formalization should be low. 2. If technology routineness is high, then formalization should be high. 3. If the organization employs many professionals, then Proposition 2 is not strong. Technology Effects on Centralization Propositions 4. If technology routineness is high and the size of the organization is small, then centralization should be high. 5. If the organization is large and technology routineness is high, then centralization should be medium. Technology Effects on Organizational Complexity Propositions 6. If the size of the organization is large and the organization has a technology that is routine, then complexity should be high—particularly horizontal differentiation. 7. If the size of the organization is small and the organization has a technology that is routine, then complexity should be medium. Technology Effects on Configuration 8. If the technology type is unit, then it is more likely that the organization has a matrix configuration. 9. If the organization has a nonroutine technology, then the functional configuration is not likely to be an efficient configuration. 10. If the technology is not divisible, then the configuration cannot be divisional. Technology Effects on Coordination and Control Mechanisms 11. If the size of the organization is not small and if the technology is routine, then coordination and control should be obtained via rules and planning, and a media with low richness and a small amount of information can be used. Incentives should be based on procedures. 12. If the technology is nonroutine, then coordination should be obtained via group meetings and media with high richness and a large amount of information should be used. References Read more: http://www.businessdictionary.com/definition/.html#ixzz0zccTvBif