Managerial and Organisational Integration

Transcription

1 Managerial and Organisational Integration

2 Thomas G. Whiston Managerial and Organisational Integration With 62 Figures Springer-Verlag London Berlin Heidelberg New York Paris Tokyo Hong Kong Barcelona Budapest

3 Thomas G. Whiston BSc, MSc (Loughborough, UK), MSc (Toronto, Canada), PhD, CChem, MRSC Science Policy Research Unit, University of Sussex, Falmer, Brighton, E. Sussex BNt 9RF, UK Cover illustration: Ch. 9, Fig. 3. Further developments of multidirectional communication and involvement. British Library Cataloguing in Publication Data Whiston, Thomas G Managerial and organisational integration. 1. Organisational behaviour. Effects of technology. Management I. Title ISBn-13: e-isbn-13: DOl: / Library of Congress Cataloging-in-Publication Data Whiston, Thomas G., Managerial and organisational integrationlthomas G. Whiston. p. em. Includes index. 1. Technological innovations-management. 2. Technology- -Management. I. Title. HD45. W '02-dc CIP Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. Springer-Verlag London Limited 1992 Softcover reprint of the hardcover 1st edition 1992 The publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions that may be made. Composition by Genesis Typesetting, Laser Quay, Rochester, Kent 69/ Printed on acid-free paper

4 For Clare, Dan and Ben

5 Preface The best use of technology is an issue of critical importance to all enterprises. That statement applies both to the manufacturing and service sectors. But the optimum use of technology has to be viewed in a broad organisational and managerial perspective. Technology in whatever way it is used must not be seen as an "add on" feature; to be bought in and some how incorporated into existing organisational structures. A much more radical, symbiotic approach encompassing strategic planning; product development and its dependency upon process technologies; organisational structure; multiskilling and an interdisciplinary planning perspective is much needed. Unfortunately in Western OECD nations that synergy is often lacking. The Japanese have in many ways addressed that wider socio-ergonomic need. This book attempts to discuss a wide array of issues considered pertinent to the more effective use of technology, but with a particular perspective in mind. The cornerstone of my thesis is referred to, here, as "integration" - managerial and organisational integration. New technologies (and old) both demand, and offer, more integrative organisational systems which in essence implies, in addition to the synergy I indicated above, a need to link management and work-force more effectively. For that to occur, I argue here, management has to be more multidisciplinary and interdisciplinary in the perspectives and attitudes that it takes; the general work-force has to be given more responsibility; all have to be more fully educated and trained. My analysis and discussion, therefore, to some extent goes beyond the level of the enterprise into education policy issues and in particular the need of more intimate academic-industrial linkage. In order to achieve some of the recommendations which I make much will have to be "undone" with respect to the dominant educational and training policies presently encumbering Britain. Many of our European partners have a Significant lead in that respect. A considerable amount of my earlier research has included the undertaking of detailed reviews for UK Research Councils of some of the more challenging initiatives developed in the UK in

6 viii Preface recent years which aim to develop a more integrated, multidisciplinary individual. For example, the SERC Integrated Graduate Development Programme; the "Total Technology" scheme; the interdisciplinary ESRC-SERC postgraduate training programme; and for the EEC a review of the international Comett Programme. Much of what I have seen in those programmes influences my thinking and the arguments put forward here. But that is only the tip of an iceberg regarding the wider need. For all manufacturing nations, and despite manufacturing decline Britain is still an important one, will have to address in the near future the most challenging environmental, ecological, resource-use, energy-utilisation issues. In addition, whilst the European Community agenda gathers pace (and with that comes changing market needs and opportunities; changing educational inputs and requirements); so does the ability of maturing Newly Industrialised Countries (NICs) to compete on more equal terms in the global market-place. Also the "regulatory environment" becomes a more complex network of containment. Under those circumstances there is an increasing urgency, an increasing need for companies more effecively to link and integrate their R&D, manufacturing, marketing and related operational functions. There is the need to analyse how technologies and work organisation can be much more flexible to the increasing risks and uncertainties of the local and global market place. This implies the need for what I refer to as strategic integration which permits better strategic planning. The text, therefore, attempts to bridge and examine a wide range of public and corporate issues. It is only a start; much remains to be done. But the more carefully and thoughtfully technology and organisational structure permits flexible development, the more likely are the cases of success in the wider market-place. Industry cannot do that alone, however. For as I argue here there is an important role for governmental and educational institutions; for trade unions and for society at large. The agenda is wide and challenging - as wide, I hope, as the different horizons of the wider readership that I have in mind. Brighton, UK February 1991 T. G. Whiston

7 Acknowledgements I am extremely grateful to the Economic and Social Research Council-Science and Engineering Research Council Joint Committee (ESRC-SERC) who funded the research programme undertaken during 1989 which resulted in a variety of publications of which this book is one. Also I am grateful to other Research Councils and Agencies (MSC) who required me to undertake several national level policy reviews of some important higher education policy initiatives. All of that in one way or another informs what I have attempted to distil into a more general argument here. Many UK companies and enterprises provided useful data regarding my theme of managerial and organisational integration. They remain anonymous but are much thanked for their kind cooperation. We are grateful to the following for permission to reproduce illustrations: Figs. 3.5 and 3.6 from R. Hayes and S. Wheelwright, Restoring our Competitive Edge, J. Wiley and Sons Inc., New York, 1984 Fig from J. Bessant and B. Haywood, "Flexible manufacturing in Europe". European Management Journal 6(2) (1988): Figs from B. Haywood, "The role of computers and humans in integrated manufacturing". Computer-Integrated Manufacturing Systems 1(2) (1988): Butterworth-Heinemann 1988 Fig. 5.1a from L. R. Sayles and G. Strauss, Human Behaviour in Organizations, Prentice Hall, Englewood Cliffs, New Jersey 1966, p.349 Fig. 5.1b from T. H. Burnham and D. H. Bramley, Factory Organization and Management, Pitman, London 1957 Table 5.1 from K. Durham, "Does the management of technology matter?" International Journal of Technology Management 1(112) (1986): Fig. 5.8 from R. Martin and B. Moores, Management Structures and Techniques. Philip Allan, Oxford, 1985

8 x Acknowledgements Fig. 5.9 from J. Coven and B. Slevin, "The influence of organisational structure in the utility of an entrepreneurial top management style. Journal of Management Studies 25 (1988): Figs Technology Management, "The Invisible Advantage" by Dr David van Rest on behalf of the Jupiter Consortium Ltd Figs. 8.5 and 8.6 from A. J. Carpenter, "CAM: overcoming organizational inertia for competitive advantage". Institute of Production Engineers (Bristol University meeting 17 March 1988) Figs. 9.1, 9.2, 9.5 and 9.8 from B. Twiss, Managing Technological Innovation, 3rd edn. Pitman Publishing, London, 1990 Figs. 9.6 and 9.7 from P. B. McNamee, Tools and Techniques for Strategic Management. Pergamon Press, Oxford, 1985 Figs from A. Graves, "Globalisation of the automobile industry: the challenge for Europe" (to be published) And for permission to quote text from C. C. New and A. Myers, Managing Manufacturing Operations in the U.K British Institute of Management, Corby, 1986 In particular I would like to express my gratitude to Professor Roy Rothwell, SPRU, and Dr George Hayward, Editor, Technovation (Elsevier Advanced Technology, Mayfield House, 256 Banbury Road, Oxford OX2 7DH), for their encouragement with regard to the publication of this text which develops from an earlier series of papers published in Technovation. Mr Nicholas Pinfield, Engineering Editor, of the Springer editorial staff has been a stalwart supporter, especially in putting up with various time delays which have been due to my research and teaching commitments. Finally no praise is too strong with regard to the secretarial and administrative support that I have received from Mrs. Kath Kidd. To them all I express my deepest thanks and gratitude.

9 Contents List of Figures xiii List of Tables... xvii 1 Introduction: Internal and ExternallJlntegration" Towards a Wider Integration Managerial and Organisational Integration Needs Arising Out of Technical Change A Managerial and Organisational Perspective Managerial and Organisational Integration Within the Organic Enterprise Remaining Policy Issues and Organisational Questions A National Survey Integration: Public and Private Perspectives, Some Case Studies Corporate and Strategic Integration So You Really Want Integration? The Ten-by-Three Recipe Appendix: Managerial and Organisational Integration (MOl) in Relation to New Technologies, and Also in Its Own Right Subject Index

10 Figures 3.1 Technological historical progression 3.2 Historical progression of computer-supported equipment 3.3 Mitchell's vision of the evolution for the automatic factory 3.4 The general need for "relocation" 3.5 A two-dimensional hierarchy relating product life cycle and level of process development 3.6 "Location" of industrial or product forms on the "map" 3.7 Advantages of various product-process developments and locations 3.8 Pressure for companies' production process to "relocate" 3.9 Changing systems demand, production potential and changing process location 3.10 Range of options in flexible manufacturing 3.11 Technological responses: AGVs, automated guided vehicles 3.12 Technological and organisational options 3.13 The more integrated approach 4.1 The interplay of four major areas in determining specialisation and fragmentation 4.2 National patterns of interaction 4.3 The old conventional wisdom and the new alternative perspective 4.4 Bridges and mechanisms for getting from A to B 4.5 Factors influencing the old conventional wisdom with regard to fragmentation and specialisation 4.6 Integration: some major requirements 5.1a Hierarchy and decision making 5.1b The management function: span of control 5.1c Cellular structures placed into hierarchical structures 5.2 The non-linearity of power and decision load 5.3 A predetermined mechanistic structure 5.4 A fluid structure 5.5 MOl implies a need for transfer of responsibility 5.6 Increasing sophistication of technical systems

11 xiv Figures 5.7 Planning and production dimensions 5.8 Types of production systems 5.9 Organic and mechanistic structures 5.10 The differentiation-integration dimension 5.11 Five examples of CIM integrative models 5.12 A strategic perspective to education and training for managerial and organisational integration skills 5.13 The domain of management of technology 5.14 The management of technology: potential syllabus topics 5.15 Technical and management routes to Master's degrees 5.16 Academic-industrial collaboration 6.1 Flattening the organisational pyramid 6.2 Patterns of collaborative integration 6.3 Interactive forces controlling organisational integration 6.4 Integration 6.5 Micro-dependencies influencing integration 6.6 A pattern of dependency regarding organisational and managerial integration 7.1 Technologies introduced in the past two decades 8.1 Summary of organisational changes 8.2 A Micro-Hawthorne effect 8.3 Sequential procedure 8.4 Company E: group structures 8.5 Typical lead times 8.6 Computer system configuration 8.7 An integrative training system 9.1 The elements of corporate planning 9.2 Technological innovation as a result of complex interactions 9.3 Further developments of multidirectional communication and involvement 9.4 Maintaining profits through new product development 9.5 Profit growth from successive products - oneproduct company 9.6 The product market portfolio 9.7 Matrice approaches: ideal movements of product and cash 9.8 Profit and sales volume - life cycles for a typical product 9.9 Assembly quality in the automobile industry 9.10 Assembly productivity in the automobile industry 9.11 Shop-floor production system 9.12 Relationship between R&D, product development and production: USA and Europe

12 Figures xv 9.13 Relationship between R&D, product development and production: a typical Japanese model

13 Tables 3.1 Integration: some basic questions emerging from the literature 3.2 Dimensions of integration 3.3 Advantages and disadvantages relating to process level 3.4 Examples of technological and organisational factors or considerations at each of the four process levels which need to be assessed in order to improve or achieve maximum operational flexibility 4.1 Demand characteristics identified in the Jupiter survey 5.1 Attitudes of functions involved in innovation 7.1 Listing of the major findings of a national questionnaire concerning managerial and organisational integration (all companies) 7.2 Listing of the major findings of a national questionnaire (comparison of smaller and larger companies) 7.3 Listing of the major findings of a national questionnaire (comparison of those who have or have not achieved satisfactory integration) 7.4 Managerial and organisational descriptants 7.5 Percentage of companies not achieving various forms of integration 7.6 Achievement of functional integration at various levels of management 7.7 The most important organisational links 7.8 Technological literacy 7.9 The demands of technology: managerial and organisational skills 7.10 The perceived relative importance of intra- and inter-organisational integration 7.11 Resistance to managerial and organisational integration 7.12 Training 7.13 Training and integration needs irrespective of technical change 7.14 Mechanisms for greater integration in British industry (large companies)

14 xviii Tables 7.15 Mechanisms for greater integration in British industry (smaller companies) 7.16 Mechanisms for greater integration (ranking) 7.17 Increasing specialisation 7.18 Barriers to full integration (larger companies) 7.19 Barriers to full integration (smaller companies) 7.20 Barriers to full integration (ranking and comparisons) 7.21 Those who have or have not achieved satisfactory organisational integration 7.22 Functional integration at various levels 7.23 Technological literacy 7.24 Technology: the need for integration 7.25 Technology: the achievement of integration 7.26 The lack of integrative skills 7.27 The lack of organisational skills 7.28 Intra- and inter-organisational integration 7.29 Mechanisms for greater integration 7.30 Barriers to integration 7.31 Resistance to managerial and organisational integration 7.32 Training programmes: levels of involvement 8.1 Resources for successful design, planning and implementation of the FMS system 9.1 Comparison of lead times: Japan, Europe and USA 10.1 The ten-by-three recipe: mechanisms for integration