ORGANIZATIONAL PEtEPAREDNOSS

AKHILESH K.B. AND MQIAN T.R.

W O W INSTITUTE Qp SCIENCE6 BANGALORE

Abstract

E f f e c t i v e technology management depends mostly on the emphasis l a i d by the organizat ion on learn ing a t a l l leve ls . This paper based on several c.ase studies and empir ica l analys is o f over 2GG organizat ions describes the organizat ional issues involved i n successful technological t ransformat ion. F l e x i b i l i t y , planning, emphasis , on t r a i n i n g and development and unique experiments such as gang-planks (gatekeepers) f a c i l i t a t e technological i nnov'at i on.

I. Int roduc t i on

Technological change i n capi ta? goods sector has been recognised as the most powerful and important instrument t o b r i ng about rap id and extensilve economic growth i! ~ f i ] .This sector employing both both market ( formal ) and non-market i informal i informat ion promotes capi ta l -sav ing technical changes which have cascading e f f e c t s , on the economy [ 2 ] . Previous studies o f technological change have dea l t w i th industry l eve i var iab les f o r analysig [3,5,71. These studies assume d i f f rences among f i rms t o be t r a n s i t o r y or unimportant unless based on economic o f scale. However, recent research contends t h a t f i rm-market cha rac te r i s t i cs play a dominant r o l e i n the technologica l change i n the sector [ 3 , 4 , 8 ] . Recently the focus o f analys is has s h i f t e d t o invest igate what mechanisms f o s t e r i i n h i b i t the process.

Previous s tud ies have focused on c e r t a i n aspects o f the transformation process. K i m and associates C5,6,7j on the basis o f t h e i r analys is o f Korean f i rms observe, t h a t management c a p a b i l i t y and technology p o l i c y o f a f i r m are .important f o r i t s long term development. I n view o f the fragmentary knowledge about %he dynamics o f the

process, exploratory q u a l i t a t i v e methods are the best way t o a r r i v e a t a comprehensive view o f the technological change process a t f i r m l eve l . This a r t i c l e , based on several case s tud ies and analys is o f over 200 f i rms, presents what organizat ional mechanisms f o s t e r / i n h i b i t t he technological change process a t var ious stages - adoption, adaptation and innovation.

Dominant Factors

The case analys is and empir ica l ananlysis o f the organizat ions o f fe red q u i t e i n t e r e s t i n g i ns igh ts i n t o th4 dynamics o f technological t ransformat ion in Ind ian manufacturing f i r m s . The most important f ac to rs i n f l uenc ing the technologicai t ransformat ion process i n Ind ian manufacturing organizat ions werepl anni ng , top management support, donor cha rac te r i s t i cs , t r a i n i n g and development, vendor management, nat ional p lan p r i o r i t i e s , and un ive rs i t y - i ndus t r y l inkages. Fol lowing paragraphs provide a desc r ip t i ve account o f c r i t i c a l elements.

The management o f technological t ransformat ion depends upon r a t i o n a l decision-making behavior. The decis ions made a t t he technology se lec t i on has cascading e f f e c t on the technological e f f o r t s a f i r m undertakes. ApDropriate se lec t i on mechanisms 1 i ke formal s t ruc tu res represented from d i f f e r e n t funct ions can e f f e c t i v e l y search and scan f o r any technological oppor tun i t ies and threats . involvement o f S 8 T personnel i n the technology se lec t i on not on ly inf luenced ea r i y adoption but a lso a more r a t i o n a l technology content se lect ion. The f i rms thus bene f i t from paying f o r the r i g h t mode o f technology t rans fe r when formal groups i nc lus i ve o f S & T personnel se lec t a technology for absorption and development. Hence,

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setting up of formal structures to monitor, select technoiogies is important.

The success of technological transformation process in a firm is dependent upon. productive structure which allow for a more effect.ive expl.oi t.ation of the resources. Development and sustenance of mechanisms fostering effective utilization of resources', such as quality circles, kink groups, Value engineering groups fosters successful learning effects.

The effectiveness of technological transformation prccess depends upon exploiting the complementarities between research and the production activit.ies. The effectiveness depends upon integrative efforts and structural differentiations with in the firm. Hence, the development of mechanisms t.0 integrate techno?ogy efforts with other funttions, i s necessary to rat'ona7ise both resource allocat.ion and utiliza- tion.

Continuous professional technical and managerial trai r,i ng and development enbanci ng orqani iati oial skills were found to be hallmarks o f innovative firms. Emphasis on effective HRD practices foster creative organizationa! climate triggeriqg inventive ideas. Hence there 1 % a ne& to promote HRG Dractices to deveicp and exploit the potential of employees as a means to ensure creative climnte.

The linkages between industry, university whether formal or informal prove to be of great importance in the industrial research system. These linkages are generally informal, most of the time person to person contact which can be developed at no additional cost. The firms need to resort to promotion of internal mechanisms to encourage formal or informal links with external technology sources'.

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Adcption was dominated, especially during the early stages, by technical o r engineering considerations. Human aspects and implications are not eiplicitly considered, or only in so far as certain effects might be seen here as a result of the decision to invest i n new technology, based upon, financial , idministrative. sr technical project.ions. The only explicit way the amployee issues formed part of the early adoption i.e., selection was in financial or economic terms, that is to say, in t.erms of labour as a cost 9f producticn. More strictly qualitative issues and implications of t.he technology, such as j o b design and rroi-hing practices, were typically tgnored or not considered at a11 until the later stages of the adoption process ior early stages of the adaptation process) and the selection was total 7 y i n a sense tecknol ogi cal deterministic way. The t.echnologica1 .determinism was largely jnfluenced when the committee had a engineering personnel involved in the selection af the process. The staff and emplcyee involvement. per se was large?y superficial throughout the selection process. In the later stages of adoption industrial engineering, and training specialists carved into the process o f adopt i an establ i shi ng production and normalizing the structure of the firm. Thus, technology se:ection i s technology-detereministic.

Adaptation, unlihe-adoption, did riot usually invoive formal systems and budgetary allocations. Th6 adaptive efforts were found t.o be significantly related to the effectiveness of tne differentiated units. Most firms adopted a as and wtieii require.? strat.egj for adaotive efforts. The adaptive efforts were carried out by the R ?* i; and production personnel mostly as corrective and improvement irieasur'~~ i.e., process adaptations and tc ;i

ORGANIZATIONAL PREPAREDNESS

INDIHN INSTITUTE. OP ACIWCE, BANGALORE

{esser extent i n product. The product adaptat ims were found i n f i rms w i th hign importat ions o r when scale va r ia t i ons were required or the improved product parameters incorporated t o combat and achieve a ' n i che ' . Hence, i n Indian manufactuting f i rms, adaptation e f f o r t s are d i f f e r e n t i a t i o n a c t i v i t i e s .

On questions o f adaptation, involvement o f employees and s t a f f by providing encouragement f o r a l te rna te designs and material/manufacturing forms was imperative. The acceptance o f f a i l u r e s i n experimentation and the ?.OF management's r e a l i z a t i o n o f long- term bene f i t s were found necessary t o t r i g g e r o f f product adaptations. Support for ' st-reet smartness' by shop- ?Toor s t a f f and an emphasis on qual i t y engineer i ng was found t o be in f luencing process adaptations. The personnel funct ions such as t r a i n i n g , team-buildicg exercises were found i n process adaptive f i rms. The existence of employee suggestion and reward systems were seen as the e f f e c t i v e vehic les spurr ing emplcyee involvement and r e s p o n s i b i l i t y i n successful process adapters. Thus, important ly, top-mamagetvent, support i s c ruc ia l f o r successful t ransformat ion.

The suppl ier who could access the contro l o f f i r m through the co l laborat ion content- can l a rge ly in f luence the technology adoption and development. The ea r l y adoption was smoothly operated i nvo l v ing hands on t r a i n i n g o f personnel a t the mother p lant , t i p s i n se lec t i on and conf igurat ion o f machines and on s i t e t r a i n i n g by s k i l l e d technic ians f lown from , the co l laborator f i r m . The t rans fe r o f R & D in'formation, a clause i n t h e i r agreement, was found not t o be honored by many col labora- to rs . Another i n t e r e s t i n g po in t which needs more r igorous analys is was t h a t ventures i n which the co l l abo ra t i on was f i n a n c i a l , the s e l l e r had

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considerable inf luence over the technological a c t i v i t i e s b f t he f i r m . The repeated technological agreements were found t o be common, many a time f o r a scale va r ian t , i n ventures wherein the s e l l e r f i r m had representat ion on the board. I t was found, t o a l i m i t e d extent, t h a t there were conscientious e f f o r t s from the representat ives o f the co l l abo ra t i ng f i r m discouraging backward engineering and experimentation fear ing swaying away from dependency. Thus, suppl i e r dominance has long-term impact on technological tranformation,

The product focused manufacturing s t ra tegy w i th general purpose machines provided the f i rms the p lan t f l e x i b i l i t y required t o meet variances i n customer demand. Customer focused manufacturing coupled w i th m u l t i - s k i l l e d workforce helps the f i r m i n attempting product va r ian ts o r add i t i on o f features. Hence, important ly focused manufacturing fos te rs e f f e c t i v e product management.

Lack: o f a long-term leadership inf luences the emergence o f p r o f i t maximization cu l tu re which may i n h i b i t innovat ive e f f o r t s . Ind iscr iminate t rans fe r and lack o f managerial s k i l l s seem t o be a f f e c t i n g t runcat ion o f technological t ransformat ion i n pub l i c f i rms. Continuous focused leadership inf luences the technological transforma- t i o n process.

Fa i l u re t o recognise vendors as nodes o f product improvement and innovat ion seem t o have an impact on the technological t ransformat ion o f the f i r m . E f f e c t i v e management o f vendors and i n s t i t u t e s o f learn ing provide the f i rms capabi 1 i t ies t o e x p l o i t technological oppor tun i t ies. Linkages inf luences successful technological t ransformat ion process.

ORGANIZATIONAL PREPAREUNESS

INDIAN INSTITUTE OF SCIPJCE, BANGALORE

Conclusions

E f f e c t i v e technology management depends mostly on how much emphasis the organizat ion places on technology development. The r o l e o f f l e x i b i l i t y , top - management support, i n t e r - d i s c i p l i n a r y teams are quintessent ia l f o r technology transformat ion a t f i r m leve l .

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