ORGANISATIONS IN THE ENGINEERING & TECHNOLOGY ENVIRONMENT

Organisations in the Engineering & Technology Environment



Organisations in the Engineering & Technology Environment

Introduction

The organisational structure which would be suitable for an engineering and technology based organisation is dependent of various factors that may influence the application of complexity, centralisation, and formalisation in the framework of work environment and attainment of the overall organisational goals. Some of the determinants are discussed below. All the concepts of a suitable organisational structure are discussed specifically based on the working practices of an illustrative UK-based engineering and technology organisation by the name of KLM UK Engineering Ltd.

Organisational Structure of KLM Engineering Ltd

Spatial Dispersion in KLM Engineering

It can be a form of horizontal or vertical differentiation. The complexity increases with increasing dispersion. The three elements can vary independently of each other. They may also vary as a whole (as in the case of small organisations), however, this does not happen in large organisations.

There are two basic types of differentiation:

1. Assignment to a wide range of specialist tasks

As indicators of horizontal complexity, most of the authors proposed as the indicators the number of divisions within the organisation and the number of specialties within these divisions.

2. Vertical or hierarchical differentiation

Basically refers to the number of levels or positions between the highest executive and employees working in production lines. It is assumed that the higher level in the hierarchy there will be more authoritative.

For both types the rule applies that the greater differentiation, greater problems of control, coordination and communication will have the organisation.

Consequences of Complexity

There is a marked tendency of organisations to become increasingly complex to the extent that its activities and also environment are. The increasing complexity creates problems of coordination and control.

Coordination and Control Problems

The researchers have found that the differentiation in some organisations involved much more than simple differentiation of tasks, involving behaviours and attitudes of its members. The most important thing was that the differentiation of tasks, behaviours and attitudes was closely related to the environment in which they played different departments. A high degree of differentiation (complexity for these authors) is related to a highly complex environment and differential.

Formalization

It concerns the use of rules and procedures designed to handle the contingencies facing an organisation. The extent and degree of these variables on a continuum from the maximum formalization (extremely inflexible rules and procedures) to minimal formalization (very flexible), where usually there is no established procedures or rules. It does not necessarily require that the rules and procedures are put in writing. Sometimes the writing is not as demanding as writing.

Relationship of formalization with other organisational variables

Centralization of power: The greater centralization of power, greater formalization.

Exchange programs: The formalization is negatively related to the adoption of new programs.

Reactions to the formalization

Buropatico behaviour: it starts with the need to control subordinates and manifests later in a rigid adherence to rules. Momentum is generated by introducing more and more rules, an exaggerated indifference, and resistance to change.

Burot behaviour: involves curtailing the system, customize each activity and consider each rule ...