Matching Technology and Organizational Structure:

Abstract

A case study is presented of a life and health insurance company that undertook a reorganization of work flow, management practices and structure following the implementation of automation. With the adoption of an on-line computer system, there was the potential for a competent, rapidly responsive and adaptive organization. However, the functionally organized, highly specialized business was operating as a white-collar assembly line. It was unable to respond to market demands and financial market changes in a creative, timely manner. The organizational potential created by the total processing system could not be realized until the social system, the organization of the people, was adapted to take full advantages of new technical capabilities. An assessment involving all of top management was conducted in which managers were allowed to determine the problems, goals, and potential solutions. Management developed a long range, overall approach to the organizational change. The decision was made to phase in experimental self managed work teams and to restructure organizational contingencies to support achievement or organizational rather than unit goals. This paper presents the intial twenty-four month period in the process.