Understanding Organisations Essay
[assignment 1 – decision analysis]Ford Australia’s decision to cut 440 Jobs – July 2012 | AUTHOR: | | SHAUN VICTOR PICKERING | |
Table of Contents INTRODUCTION 2 PART 1 - Modernist Analysis 3 1.1 Environment 4 1.2 Social Structure 6 1.3 Technology 8 1.4 Culture 9 PART 2 - Symbolic Interpretive Critique 11 2.1 Environment 11 2.2 Social Structure 12 2.3 Technology 13 2.4 Culture 14 PART 3 - Postmodern Critique 15 3.1 Environment 16 3.2 Social Structure 17 3.3 Technology 18 3.4 Culture 19 CONCLUSION 20 REFERENCES 21
Ford Australia is one of the leaders in Australia’s automotive manufacturing industry. However …show more content…
Despite the redundancy, Ford Australia would maintain their mechanistic and inflexible organizational structure. Modernist theory would recommend for Ford to increase their degree of differentiation to better help the organization adapt and survive the shift in their organizational environment.
Technology, in modernist theory, refers to the means in which organizations convert inputs (e.g. raw materials) to all kinds of outputs (Pennings 1975). Therefore, modernist contingency theorists suggest that different types of organizational technology can be suited to certain types of organisation. Furthermore, these technologies also require or create certain social structures and hence need different actions from individuals (Hatch & Cunliffe 2006). When analysing a company’s technology, modernists use typologies to categorize and break down the workings of the core technology.
Ford Australia adopts a core technology which can be classified as small batch which is low in technical complexity. They make only a few vehicle models and in relatively small amounts. According to Woodward, an organization’s technical complexity ultimately shapes the structure of the company (Hatch & Cunliffe 2006) and small batch production is normally associated with organic