Group/Individual Level

Facilitating structures - Organisational structures

Some structural options
There are several structural options and issues to consider at this point. Each is discussed below and can be accessed by clicking on the listing or by scrolling down the page. This listing is not exhaustive; there are too many options for us to consider them all. This listing represents some of the most salient structural options and issues for the implementation of innovation and technical change:


Adding new departmental functions
A popular way to encourage coordination of new technology while minimally disrupting the rest of the firm, is to create a new position or a new department and functions for the new technology.

In manufacturing, many firms simply add a new position or group to handle the programming, and/or a new function/group to be responsible for the project, the installation, and/or the technology in all aspects. In service industries, the new technology may initially be solely the responsibility of the data processing department, or of the new or existing computer support department, or as part of the information systems or MIS department in larger firms.

Although this may initially minimise disruption, the down-side is significant. Other managers may perceive that they have no stake or responsibility for implementation and technology success. Their needs may not be considered and/or met. This strategy may not allow the ultimate full coordination and integration of the new technology into the firm if it is simply added on with no other fundamental structural and cultural changes.

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Aligning existing structures
In some firms, managers implement the new technology and then take the opportunity to align organisational and work structures to promote coordination and integration. For example, firms can have both sales and manufacturing report directly to the general manager or plant manager if new technology necessitates greater coordination and understanding between the two.

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Matrix structures
Some firms have moved toward a more matrix structure where maintenance people, for example, report to both maintenance supervisors and to the technology committee or project head. In other cases, employees who are located in a pool or are assigned to a professional grouping may report to both their head resource person and to another person representing the other axis of the matrix. Still other firms have had the new information technology people work for both their department heads and the project heads for whom they do specific project work.

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Informal structures
Quite frequently firms find that they need to make significant alterations to informal organisational structures as well. People need to know about the big picture, how what they do fits in and how it affects other people, functions, processes, and customers. Forums are needed in which people can share experiences, feelings, frustrations, and learn from experiences. In some cases it is critical for people to be able to talk to managers and/or technical experts, to network with others using similar technology, to get used to working in teams and cooperating with each other and with management. These informal structural changes effectively begin to break down barriers between labour and management, to break down non-functional and non-critical artificial status distinctions, and have the positive effect of increasing communication that results in the increased flow of information and increases in the establishment of important interpersonal relationships.

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Networking and inter-organisational cooperation
One of the structural options to consider in the implementation of new technology, is inter-organisational cooperation.

There are many good reasons to cooperate with other organisations. If individual firms do not have the capital to invest in expensive new technology, or they can not exploit the full capacity of the technology, they can benefit by (1) pooling their resources, experience, knowledge, skills and abilities and (2) making large-scale material and parts purchases. Go to related information on types of cooperative organisational arrangements in the section on organisational structure.

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Standing committees or task forces
Some firms create standing committees or task forces made up of representatives from the relevant concerned and effected functions/departments. These structural changes attempt to ensure that all significantly concerned and affected units are represented during all phases of the innovation and technical change processes.

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Group technology: The "focused factory"
Another structural change possibility in manufacturing is the "focused factory" or grouping of common products together. People and functions that have similar needs can be more easily coordinated if grouped and distinguished from others with different needs. Groupings may be done by separating automated versus non-automated technology, or by grouping logical, whole units of production, or by grouping all people, functions and processes necessary to complete a certain production process.

This grouping strategy may also be done on the basis of product family groupings, or groupings of standard versus custom products. Parts may be alike in their design characteristics or in the manufacturing processes required to produce them. This has been shown to work well when the product-mix is limited and when production is self supporting and not highly interdependent with other units or functions.

By grouping similar parts into families and reorganising production processes, benefits can be realised in improved design, reduced set-up times and materials handling, and standardised processes and scheduling.

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