TECHNOLOGY STRUCTURE AND SOCIAL BOUNDARIES
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Technology structure and social boundaries
Eileen Merced
School of Business, Liberty University
TECHNOLOGY STRUCTURE AND SOCIAL BOUNDARIES
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Technology structure and social boundaries
The development of the organization structure has been more complex today, especially
after the COVID-19 pandemic. Therefore, it is crucial to understand the structure and social
boundaries involved in the organization and how this affects their development. The degree of
investment and the impact are substantial for some organizations. On the other hand, some
organizations are more flexible in adapting the business, which allows them to be an advantage
over the other organization. However, these changes and adjustments in company structure are
shaped by factors like technology, information technology, communication, social and political
factors. According to Weigelt and Miller (2013), organization structure influences the flow and
cost of knowledge development and the exchange inside the firm.
Technology
For an organization, technology represents having the most innovative machinery to
develop a product; it also includes the knowledge of employees to perform specific tasks in the
organization. Orlikowski (1992:399, as cited by Scott and Davis, 2007: 124), "technology refers
to the work performed by an organization." Some theories from 1960, according to Scott and
Davis (2017), stated that environments play a vital role in the organization structure and how the
organization is structured depends on the nature of the settings. Furthermore, technology is seen
as part of the puzzle that can affect the organization structure, not limited to environment, task
environment, technical systems. However, the organization's success will strive to have a solid
structure well organized, open to manage conflict, and invest in innovation to face the challenges
of the modern world. The advancement of information technology (ICT) in the organization
structure, according to Scott and Davis (2007), affects the collection of information and data that
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can be used in decision making. Obtaining fresh ideas and developing new technology does not
appear to be sufficient in a highly competitive economy (Faghih et al., 2018).
Faghih et al. (2018) stated that a combination of systems could be critical in the organization's
success. The technology could also allow organizations to create new partnerships; technology
can also be used by the organization to recognize and understand the factors involved in the
company's performance.
Technology Structure: Rational Approach
From a rational perspective, technology maximizes productivity to achieve the established
goal. Scott and Davis (2007) state that coordination and formal structure view the organization's
performance and employees as actions. An organization can protect its technical core through
Coding, stockpiling, leveling, and forecasting from external environments through rational
systems. Coding allows the organization to have an organized structure. Coding can be done by
category, client feedback, product categorization, or material. Stockpiling enables the
organization to hold the product until it is time for its launch to target its objective. Leveling will
allow the organization to adjust their production, and finally, forecasting enables the organization
to forecast the demand and adapt their strategy as needed.
Technology Structure: Natural Approach
Natural systems organization is managed by complexity. In the biological approach,
technology can be shaped by "social and cultural factors shaping the relation between technology
and structure, substituting informal to formal structure; and the importance of tacit knowledge,
under the control of performers, in contrast to explicit performance programs designed by
officials" (Scott & Davis, 2007, p. 137). The social and cultural factors will play an essential role
in the performance of the organization's culture due to the difference in culture, country
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objectives, and policy. Amstrong (2007, as cited by Mohelska and Sokolova, 2017) "set of
values, standards, beliefs, attitudes, and suppositions that, although has not explicitly been
formulated anywhere, determines how people behave and act, and how they perform their work.
The values relate to what is believed to be important in the behavior of people and organizations.
Standards are then unwritten rules of conduct. "
The informal structure approach in the rational system's organization focuses on
maximizing productivity by collecting data to adjust their process to reach their goal. In other
words, through rational systems, organizations tend to control more and micromanage associates
to deliver better results. On the contrary, through natural systems organization, according to Scott
and Davis (2007), "rather than augmenting hierarchies, and rather than creating new, specialized
lateral roles and relations, they encourage more direct, open, face-to-face communications
among any or all participants as required” (p. 143). According to Wu and Li (2018),
organizations have a new demand for precise information and transparency due to social media's
real-time flow of information. According to Zadeh et al. (2019), social media made possible data
to reach and impact broad, geographical areas populations with incredible speeds.
Tacit knowledge is recognized as necessary in rational systems and natural systems. Both
systems recognized the importance of performance programs. Under rational systems, primarily
is to adjust the job's tasks to minimize time and resources and focus more on the use of
machinery. Meanwhile, natural systems emphasize more the ability of the employee to perform
the task versus in the designer. Individual knowledge production and crystallizing and integrating
it into an organization's knowledge system is the process of organizational knowledge creation
(Nonaka and Krogh, 2009). In general, knowledge is vital in the organization. Having
knowledgeable employees will allow the organization to be more productive. Having well-
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trained employees will constitute a significant chance for the organization to stay competitive.
Satterlee (2018), development is the process of educating employees, so they are prepared to
move to the next level, and future of the organization (p.2010. Jahanzeb and Mohanty 92018);
employee development is beneficial for maintaining personal and organizational abilities. God
wants men to continue their work and teach and develop others. God selected 12 apostles among
all his followers. They did not have special skills, but he found something social in them among
the rest of society during his selection. According to the Bible, "bring up a child by teaching him
the way he should go, and when he is old, he will not turn away from it (New King James Bible
1769/1984, Proverbs 2:26). Merida (2013), God wants us to lead others with patience,
wilderness, a voice, and vision.
Social Boundaries
For organizations determining their boundaries is complex. According to Scott ad Davis
(2007), it is hard to decide what is favorable and what is not, and the edges will vary depending
on the organization. These boundaries will depend on the organization’s goal. For an
organization, Human capital is vital in the process during the process of establishing limitations;
these boundaries can be social or in the organization. However, setting these boundaries can raise
theoretical and empirical problems in the organization; these boundaries can change from time to
time. Laumann et al. (1983, as cited by Scott and Davis, 2007) identify the realist and the
nominalist approaches. Scott and Davis (2017) “regardless of the approach selected, the
investigator must determine what features of the situation to emphasize as the criterion for
deciding boundaries (p. 152).
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Social boundaries in rational systems
According to Scott and Davis (2007), boundaries contribute to organizational rationality
(p.155). One of the organization boundaries can be established through recruitment in rational
systems. According to Valentine et al. (2019), recruiting is the process of generating a pool of
qualified candidates. God calls us to be transparent through the selection and find meaning in our
work. Other factors like age, sex, and ethnicity represent boundaries in rational systems. During
rational systems, organizations are more focused on reaching their goal, which during the
selection process of personnel they might be selective to have the right personnel with specific
qualifications. Sometimes this can be a problem for the organization due to the lack of EEO that
might affect the selection process because they are more focused on attaining their goal.
Social boundaries in natural systems and open systems
According to Scott and Davis for Natural systems is impossible it is impossible to
eliminate the disturbance of social identities on the contrary to natural systems, is essential
during the recruitment process to consider the environments and factors like sex class, ethnicity,
class during the process of assigning employees to a specific role. According to Scott and Davis
(2007), the natural systems allow the employees to express themselves in the organization and
value theirs imputes to the organization's future, putting the objective of reaching their goal
secondary.
In organizations with open systems social boundaries are hard to identify due to the
constant change of environments and how these environments influence the decision process of
the organization According to Scott and Davis (2007), “to embrace the notion of organization
systems is to acknowledge that organizations are penetrated by their environments in ways that
blur and confound any simple criterion for distinguishing one from the other” (p.152).
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Division of labor
For the organization, the division of labor somewhat will be effective in rational systems.
This will allow organizations, especially in manufacturing companies, to have specialized
employees to perform specific tasks, resulting in an increase in production vs. having one
employee perform all the tasks assigned. But on the other hand, this also represents an
investment for the organization during the initial phase. The organization will have to invest in
training, machinery, and technology for each division. Klockman et al. (2021), if efficient
production requires collective knowledge, all employees should become workers and acquire it.
However, suppose efficient production demands a broader range of abilities. In that case, one
team member should step into the manager’s role, develop special skills, and help the other
workers (Klockman et al., 2021).
Braverman (1974; Hardy and Clegg, 1996 as cited by Scott and Davis, 2007), work is
divided and subdivided not to improve efficiency but to create resilience among workers and
dislike, to create division in the work environment, and to remove power from employees and
transfer it to managers. Scoot and Davis (2007), division of work produces and justifies position
in the organization. In today’s world, this transfer and division of power open the door to create
uncertainty of jobs security among the employees. Merida (2013), “uncertainty is held up as a
virtue. According to the Bible “ The L is my rock, and my fortress, and my deliverer; my
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God, my strength, in whom I will trust; my buckler, and the horn of my salvation, and my high
tower” This instability can be seen when the (New King James Bible 1769/1984, Psalm 18:2).
organization has a lot of division. Unfortunately, their structure is not adequate, forcing the
organization to reorganize its business structure and eliminate divisions that are not necessary to
stay competitive and survive. According to Blocher et al. (2020), “A consideration of the
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business and competitive context of the decision, together with an understanding of the firm’s
strategy and the relevant costs, ensures that each decision will help advance the firm’s strategy,
performance, and success” (p.429).
Labor market and Organizational Boundaries
The organization’s success will rely on the collaboration of employees to work
together to reach their gal. It is essential for leaders in the organization to be open and
transparent during the communication process and prepare employees when upcoming changes.
These will move any barrier among employees and management and develop loyalty. Leaders
play an essential role in the organization; they are drivers and mentors during the implementation
of company structure and change. Organizations are expected to be fair, and HR plays a vital role
in this process. Solid company policy, open door, appropriate pay rate, effective hiring, and
investment of training and associate development will be critical in developing a fair and positive
work environment.
This concept can be manipulated by the organization and creates inequity and insecurity
in the work environment. They use this policy to satisfy their needs and not prioritize employees.
According to Scott and Davis (2007), specific organizations have more flexibility to use
temporary and part-time workers, use contracts that allow organizations to save more and
minimize the benefits to the employees. These create insecurity and instability, forcing the
employee in this new era to demand better concessions and pay due to other markets'
competitiveness and causing instability and an increase of attrition in the organization due to
employees not having what they want.
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