SATM 6.2.2.4 The Technical Subsystem

The type of structure one should choose for an organization, to get maximum efficiency, will depend on the kind of technology employed to bring about the transformation process. Obviously, the "one best way" traditional approach was not being applied. Furthermore, there seemed to be no connection between business success and what traditional theory considered to be the best organizational structure.

This involved relating organization structure to the technology or production system employed. Three broad categories of technology were identified:

• Unit and small batch (production largely to customer requirement)
• Large batch and mass production (assembly line)
• Process production (continuous flow production of liquids, gases, etc.)

If technology changed, structure should be changed in order to bring success, that particular technologies need particular structures to get the best performance.

Jackson, M. (2000) Systems Approach to Management. Kluwer Academic / Plenum Publishers. NY. P112~113.