Fitting technology to structure

Scott and Davis (2007) define technology as the work an organization performs, which can include the hardware, and employee abilities used to accomplish the work. Contingency theorists consider technology to be a primary factor that determines organizational structure (Kreitner & Kinicki, 2007). After finding distinct structures for effective and ineffective companies based on the degrees of technological complexity, Joan Woodward (Woodward, 1965 in Fry, 1982) concluded that technology determines organizational structure. Woodward found those organizations that have either low-complexity or high-complexity technology tend to have organic structures. Organizations with medium complexity tend to be more effective if they have a mechanistic structure (Fry, 1982). In other words, an organization will be more effective if its structure matches its technology. Revisiting and building on Woodward's findings, Collins and Hull (1986) conducted a meta-analysis of 50 studies on technology-structure research to conclude the following: 1) The more technology requires interdependence among individuals and groups, the more organizations must integrate or coordinate activities, and; 2) As technology becomes less routine, organizations adopt "less formalized" and less centralized structures (p. 548).