Lars Groth Master in Dr. oecon., NHH organizational Norwegian - - PowerPoint PPT Presentation

1 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Lars Groth

1970 1980 1990 2000 2010 2020

Master in

• rganizational

sociology, UiO

• Dr. oecon., NHH

Norwegian School

• f Economics

Nylands Verksted Prosjekt- styring Morgen- bladet Information System International Media Vision Enator Avenir Pharos NTNU

Department of Sociology and Political Science

UiO

Department

• f Informatics
• Prof. II

2 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

INF5210

The turbulent symbiosis between organizations and information systems

Lars Groth

3 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

The fundamental cause behind any organization – and its main challenge

Tasks too big for one person must be divided into smaller tasks suitable for

• ne individual

Since a number of people now need to cooperate, we need coordination to make the work of each one fit into the larger picture Here you will find the root of most

• rganizational challenges!

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“Every organized human activity - from the making of pots to the placing of a man on the moon - gives rise to two fundamental and opposing requirements: the division of labor into various tasks to be performed and the coordination of these tasks to accomplish the activity.

The structure of an organization can be defined simply as the sum total of the ways in which it divides its labor into distinct tasks and then achieves coordination among them."

Henry Mintzberg in "The Structuring of Organizations”

What is an organization? The essence - 1

Henry Mintzberg

5 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Jay R. Galbraith, ”Organization Design”, p. 2: ”As a beginning, it can be said that

• rganization is that ”something” which

distinguishes any collection of 50 individuals in Kennedy International Airport from the 50 individuals comprising av football team in the National Football League. ”

“Organization is what distiguishes Rosenborg’s first team from 11 unaquainted young men on Elgeseter bridge.”

Jay R. Galbraith in ”Organization Design”, page 2 (adapted to a Norwegian context)

What is an organization? The essence - 2

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7 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

8 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Organisation and systems are intervowen – indeed, they are one and the same!

9 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

But why do we really need organizations?

Oliver Williamson

Asset specificity Transaction uncertainty Transaction frequency

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Modern car manufacturing

Extended value chain

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1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2010

Max Weber Theory of Bureaucracy Frederick Taylor Scientific Management Henri Fayol Administrative theory Luther Gulick and Lyndall Urwick “Papers on the Science of Administration” Elton Mayo Human Relations Chester Barnard “The Functions of the Executive” Herbert A. Simon Bounded Rationality Philip Selznick The organization as social arena Eric Trist, Kenneth Bramforth, Fred Emery Sosiotechnics Herbert A. Simon and James March ”Organizations” William G. Ouchi Culture and team (theory Z) John W. Meyer and Brian Rowan ” Formal Structure as Myth and Ceremony” Ludwig von Bertalanffy General systems theory Daniel Katz and Robert L. Kahn The enterprise as an open system Burns and Stalker ”The Management of Innovation”

• W. Ross Ashby

Systems theory: Self- regulation and law of requisite variety Paul R. Lawrence and Jay W. Lorsch ”Organization and Environment” Henry Mintzberg ” The Structuring of Organizations” Charles D. Perrow ”A Framework for Comparative Analysis

• f Organizations”

James D. Thompson ” Organizations in Action” Joan Woodward ”Management and Technology” Harry Braverman Marxist organisation theory Jeffrey Pfeffer and Gerald D.Salancik Resource-based theory Michael T. Hannan and John H. Freeman Population ecology Erving Goffman Symbolic interactionsm Oliver E. Williamson Transaction cost Ronald Coase Transaction cost Jean Baudrillard Poststructuralism, epistemological postmodernism Jean-François Lyotard Epistemological postmodernism Jaques Derrida Epistemological postmodernism Karl E. Weick Organisation culture David Silverman Action perspective Stewart R. Clegg Ontological postmodernism Paul J. DiMaggio and Walter W. Powell Institutional isomorphism

2000

Wanda Orlikowski and Susan Scott Sociomateriality

Back to Basics

Tor Hernes The organisation as process

Organization theory – a timeline

Classical theory Neoclassical and institutional theory Systems theory Contingency theory Other theories Postmodern approaches Interactionism

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Sosiotechnics

Eric Trist, British social psychologist (1909-93) – published in 1951 together with Kenneth Bamforth, a former coal miner, ”Some Social and Psychological Consequences of the Longwall Method of Coal Getting“ in Human Relations

– Director of The Tavistock Institute of Human Relations in London for more than 20 years – Designed a theory about the interaction between people and technology in work places, basedon a study of technology change in British coal mines during the transition from the “shortwall” to the “longwall” method for coal mining.

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Contingency theory

Joan Woodward (1916-1971

– ”Management and Technology”, 1958, ”Industrial Organization”, 1965 – Studied a large number of firms (100) in the South Essex area of England in the 1950s – Found that organizational form varied, and correlated with production technology – Concluded that there was not ”one best way” to organize – the nature of the production process would determine which form that would be most suitable

Tom Burns (1913-2001) and G. M. Stalker

– ”The Management of Innovation” (1961) – Studied the introduction of electronics in Scottish industry – Described two ideal types of organization on each side of a continuum – the mechanistic and the

• rganismic (organic) organization

– Viewed the organization as a result of the simultaneous working of (at least) three different social systems:

• Formal authority: aims, technology, relations with the environment
• Cooperative systems of people with different aspirations
• The political system – the competition and cooperation for power

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Contingency theory

Henry Mintzberg – ”The Structuring of Organizations” (1979)

– Synthesized large parts of the organizational research up to ca. 1975 – Proposed five basic organizational configurations (forms), each based on one main coordinating mechanism and one key part of the organization:

• The Simple Structure (Entrepreneurial Form) – based on Direct supervision, Strategic Apex key
• The Machine Bureaucracy – based on Standardization of work, Technostructure key
• Professional Bureaucracy – based on Standardization of skills, Operating core key
• The Adhocracy (Innovative Organization) – based on Mutual adjustment, Support staff (R&D) key
• The Divisionalized Form (Diversified Organization) – based on Standardization of output, Middle line key

– Has later suggested two new configurations:

• The Missionary Organization – based on Standardization of norms, Ideology key
• The Political Organization – no prime coordinating mechanism, no key part

Simple Structure Direct supervision Divisionalized Form Standardization of output Adhocracy Mutual coordination Professional Bureaucracy Standardization of skills Machine Bureaucracy Standardization of work

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Interactionism

Karl E. Weick – ”The Social Psychology of Organizing” (1969)

– Enactment: Organizations are enacted, they are created by being talked about – Sensemaking: Organizations are primarely “sensemaking systems”, incessantly create and recreate conceptions about themselves – Loose coupling: The lack of firmness in the coupling among some of the parts of the organization – changes can take place locally with little consequence elswhere

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Institutional theory

Paul J. DiMaggio and Walter W. Powell

– Institutional isomorfism

• The question is not why organizations differ, but why there is such an overwhelming degree of homogeneity – why

bureaucracy has become the common organizational form

• Organizations within the same business may have displayed considerable diversity when first set up, but converge over time

toward bureaucracy

• They do so not because bureaucracy is the most efficient, but because it furnishes legitimacy in the eyes of outside

stakeholders

– Three kinds of isomorfism:

• Coercive isomorfism – by political influence
• Mimetic isomorfism – a response to uncertainty
• Normative isomorfism – a result of professional managers

John W. Meyer and Brian Rowan

– Organization is more about conforming to institutionalized rules than about coordinating and controlling activities – The myth of organizational rationality is necessary to obtain legitimacy in a society with rationality as the central norm – However, the formal structure – comprised of authority structures, plans and rules – is only loosely coupled to what is actually done in the organization – Thus, you have two organizational structures – one formal, which can be shaped according to the normative expectations in the environment, and one informal that is actually used for getting things done – The advantages conferred by the myths are stability, legitimity and resources – exactly what is needed to survive

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Postmodern approaches

There are two branches of postmodern theory:

– Epistemological theory (episteme = reason, knowledge): No unequivocal relations between forms of representation (symbols, like words and images) and an objective, external world is possible – we cannot get behind the words – Ontological theory (ontos = being, existence): The society is moving into a new era, which differ from the previous “modern” age in significant ways – which can be understood, but not with the old theories

• The core of modernity is differentiation – in organizations, especially the rational, increasingly fine-grained and rigid division of

labor

• The core of postmodernity is de-differentiation – the gradual integration of jobs, the blurring of areas of responsibility, the

increasing overlap of functions, the increasing flexibility, the team attitudes

Stewart Clegg, “Modern Organizations” (1990)

– Rationality is subjective, and relative to context – “Agents” (persons, organizations or parts of organizations) all act under a subjective rationality: they attempt to accomplish projects “which make sense in terms of the calculation which agents have available to them” – Subjective rationalities can differ widely, as any agent will be heavily influenced by the cultural and institutional values of their national frameworks – Therefore, organizational forms and practices cannot be universal – “Organizations are human fabrications. They are made out of whatever materials come to hand and can be modified or adopted. Organizations are concocted out of whatever recipe-knowledge is locally available.”

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Sociomateriality

Wanda J. Orlikowski and Susan V. Scott

– Technology is an integrated part of work, and how it appears to the world – “Work practices are constituted by an array of sociomaterial agencies, for example, space, devices, standards, categories, algorithms, expert judgements, physical mechanisms, and so on.” – “Sociomateriality is so much part of our everyday

• rganizational experience that it becomes taken-for-

granted.” – “Work in itself is sociomaterial, so to understand work we have to understand its sociomaterial forms.” – “Different forms of sociomateriality in practice not only increase the capacity for transactions to be disembedded from time and space, but also disappear from the attentions of users and

• bservers.”

“We see the physical hub of a person’s work practices composed of an array of materiality imbued with multiple logics and capabilities (programs, reminders, sources, and connections) all poised to form part of the pattern of her work flow, ready to be actively configured into a situated work performance.”

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20 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Processor power

Processing power for Intel processors

1971-2016

Intel 4004

2300 transistors 200 dollar

Intel Xeon E5-2699

7 200 000 000 transistors 4100 dollar Equals ca. 5 800 000 4004s

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22 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Our physiological constraints

We can, by and large, only tackle one task at any

• ne time, and have limited capacity for physical

work Our active, conscious memory is very limited Our ability to consciously process information is limited Our communication capacity is very limited Our natural means for communicaction have very limited reach

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Pre-literate age

Explicit knowledge Tacit knowledge Assigned behavior

Rules Data Communication

Asyncronous Syncronous

24 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth Tacit knowledge Assigned behavior

Rules Data Communication

Industrial age

Explicit knowledge

Asyncronous Syncronous

25 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth Processing Storage and retrieval Automatic data acquisition

Digital age

Assigned behavior Explicit knowledge Tacit knowledge

Rules Data Communication

Asyncronous Syncronous

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What IT basically contributes

Information can be processed by machines

– Provides incalculable possibilities for automation and elimination of work (including self service) – Provides extremely improved possibilities for understanding and controlling complexity

Qualitative quantum leap in information storage (structured and unstructured)

– Provides a revolution in information retrieval and analysis – Makes automatic coordination possible at so far unknown scales

Automatic data acquisition Much increased bandwidth for remote communication (many

• rders of magnitude)

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Coordination of Work

Coordination by feedback Coordination by program

Mutual Adjustment Direct Supervision Standardization

• f Work

Standardization

• f Skills

Tacit Skills Explicit Skills

Taxonomy of Coordinating Mechanisms: Level 1

(Standardization of

• utput)

28 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Coordination of Work

Coordination by feedback Coordination by program

Mutual Adjustment Direct Supervision Standardization

• f Work

Standardization

• f Skills

Tacit Skills Explicit Skills Implicit Coordination Technology Dependence Computer Dependence Implicit Coordination (by Database)

Taxonomy of Coordinating Mechanisms

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Booking for (2015):

484 airlines (flight information for 693) 421.000 hotels 43 car rentals 50 shipping companies 233 tour operators 90 railroads 16 insurance groups (2012) Up to 39 000 Customer transactions per second 47 billions SQL- executions per day 37 petabyte data storage 16.500 infrastructural units

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CEO

Travis Kalanick

Policy & Community

Recruiting Americas Asia Operations International Growth Community Operations

Legal

Policy, EMEA Policy & Communicat ions

HR

Global Talent

CTO Security Operations Strategic Initiatives

Belgium Western Europe France Hong Kong

EMEA & APAC

UK, Ireland & Nordics

Product

Maps Advanced Technologies Center Design Mobile Communication

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Coordination of Work

Coordination by feedback Coordination by program

Mutual Adjustment Direct Supervision Standardization

• f Work

Standardization

• f Skills

Tacit Skills Explicit Skills Implicit Coordination Technology Dependence Computer Dependence System- Supported Supervision Implicit Coordination (by Database)

Taxonomy of Coordinating Mechanisms

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Bennetton

33 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Coordination of Work

Coordination by feedback Coordination by program

Mutual Adjustment Direct Supervision Standardization

• f Work

Standardization

• f Skills

Tacit Skills Explicit Skills Implicit Coordination Explicit Routines Automation Technology Dependence Computer Dependence System- Supported Supervision Implicit Coordination (by Database) Programmed Routines Hyper- Automation

Taxonomy of Coordinating Mechanisms

34 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

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3D printing

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39 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Coordination of Work

Coordination by feedback Coordination by program

Mutual Adjustment Direct Supervision Standardization

• f Work

Standardization

• f Skills

Tacit Skills Explicit Skills Implicit Coordination Explicit Routines Automation Technology Dependence Computer Dependence System- Supported Supervision Implicit Coordination (by Database) Programmed Routines System- Supported Skills Hyper- Automation

Taxonomy of Coordinating Mechanisms

40 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Paging Dr. Watson: IBM and Cleveland Clinic Collaborate to Train Watson in Medicine

• 8. februar 2013: De første kommersielle produktene lansert for kreftbehandling

(http://www-03.ibm.com/innovation/us/watson/) In February 2013, IBM announced that Watson software system's first commercial application would be for utilization management decisions in lung cancer treatment at Memorial Sloan– Kettering Cancer Center in conjunction with health insurance company WellPoint. IBM Watson’s business chief Manoj Saxena says that 90% of nurses in the field who use Watson now follow its guidance.

41 INF5210 The turbulent symbiosis between organizations and information systems Lars Groth

Coordination of Work

Coordination by feedback Coordination by program

Mutual Adjustment Direct Supervision Standardization

• f Work

Standardization

• f Skills

Tacit Skills Explicit Skills Implicit Coordination Explicit Routines Automation Technology Dependence Computer Dependence System- Supported Supervision Implicit Coordination (by Database) Programmed Routines System- Supported Skills Hyper- Automation

Regulating Model Assisting Model Mediating Model

Taxonomy of Coordinating Mechanisms

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Main parameters when analyzing an organization

The coordination needs are decisive for structure – Mintzberg Organisations are patterns of actions that is «performed» every day – Weick, Silverman, Galbraith and others The connections between the various parts of an organization are often quite loose – Weick Technology and actors affect each other mutually in the design of

• rganizations – Trist, Orlikowski

Institutional isomorphism – DiMaggio og Powell, Meyer og Rowan All actors act in accordance with their subjective rationality – Clegg