ORGANIZATIONAL DESIGN AND BUSINESS MANAGEMENT

(DISCUSSION QUESTIONS)

ASSIGNMENT

Submitted by:
Aji Kurnia Dewanta

(12522091)

INTERNATIONAL INDUSTRIAL ENGINEERING DEPARTMENT

FACULTY OF INDUSTRIAL TECHNOLOGY
UNIVERSITAS ISLAM INDONESIA
2014

DISCUSSION QUESTIONS
1. Why is technical complexity greatest with continuous-process
technology? How does technical complexity affect organizational
structure?
Answer:
Because Continuous-process technology has an automated conversion
process. Employees are not involved in production, but monitor the
machinery and manage exceptions, such as machine breakdowns. Technical
complexity is the extent to which a production process can be programmed
so that it can be controlled and made predictable. Technical complexity also
greatest with continuous-process technology because in continuous process
tech, involves continues production with little variation in output and rarely
stops.
1) Technical complexity increases the levels in the hierarchy: small-batch
technology needs three levels; mass production, four levels; and continuousprocess, six levels.
2) Span of control is narrow for small-batch technology with decisionmaking decentralized and wide for mass production with decision-making
centralized. Span of control is narrow for continuous-process technology
with decision-making centralized.
3) Small-batch or continuous-process technology need organic structures
whereas mass production needs a mechanistic structure.

2. What makes some tasks more complex than others? Give an example of
an organization that uses each of the four types of technology identified
by Perrow.
Answer:

Task complexity depends on task variability and task analyzability. Task

variability is the number of new or unexpected situations or exceptions that
an employee encounters while performing a task. Task analyzability is the
degree to which search activity is required to solve a problem. Low task
variability and analyzability implies that tasks that are easy to analyze,
routine, and less complex.
Four type of technology identified by Perrow is
Routine manufacturing: characterized by low task variability and
high task analyzability. For example car production industry.
Craftswork: both task variability and task analyzability are low. For
example souvenir home industry, creative groups.
Engineering Production: Both task variability and task
analyzability are high. For example accounting firm, mechanical
engineering like bridge constructors.
Non-routine research: high task variability and low task
analyzability. For example laboratories or research and strategic
planning.

3. What level of task interdependence is associated with the activities of

(a) A large accounting firm,
(b) A fast-food restaurant, and
(c) A biotechnology company?
What different kinds of structure are you likely to find in these
organizations? Why?

Answer:
A large accounting firm has a sequential level of task interdependence.
This kind of firm provides products or services that has a work process in which
input, conversion, and output activities must be performed in series. Actions of
one person in accounting directly affect the action of another. Accounting firm
will likely implement organic structure, because its a continuous-process
technology and need to supervise the work intensively.
A fast-food restaurant has pooled interdependency. Because fast-food
restaurant work does not flow between units. Each unit only contributes to the
common good of the organization, but does its work independently. A fast-food
restaurant will likely implement mechanistic structure, because work of the
output must be standardized in order to make the same output which is the food
itself.
A biotechnology company has reciprocal task of interdependence. The
technology by work process in input, conversion, and output activities are
inseparable. Activities of all people and all department are fully dependent on
one another. A biotechnology company will likely implement organic structure
because specialism and intensive supervise work is irresistible to provide a
details process and specific product.