Technology and Interdependence/Uncertainty

Core Concepts and Typologies

The core concepts in the theory are uncertainty, technical rationality, organizational rationality, interdependence, structure, and task environment. Also, two typologies are central to Thompson’s theory: types of organizational technologies and types of internal interdependence. These concepts and typologies are explained below followed by the relationships among these concepts and the rationale behind these relationships.

Uncertainty can be understood as the opposite of determinate: Under conditions of uncertainty, there are more variables in the system than the actor can make sense of, or at least, some of the variables are not predictable or controllable by the actor.

Technical rationality is a system of cause-effect relationships which leads to a desired result, whereas organizational rationality also involves input and output activities to the technical rationality.

Structure is the internal differentiation and patterning of relationships.

Task environment, as proposed by William Dill, refers to the parts of the environment which are relevant or potentially relevant to goal setting and goal attainment. There are four elements of a task environment: (a) customers; (b) suppliers of materials, labor, capital, equipment, and work space; (c) competitors; and (d) regulatory groups.

Interdependence refers to the dependence of units within an organization to each other (i.e., internal interdependence) and also the dependence of an organization and its environment to achieve a common goal (i.e., interdependence with the task environment). There are three types of internal interdependence. Pooled interdependence refers to the condition under which each part makes a discrete contribution to the whole, and each is supported by the whole. It is illustrated by two different geographical branches of a bank. Sequential interdependence refers to the condition under which part X has to complete its part successfully before part Y can act, and part X cannot find use for its output if part Y does not act. It is illustrated by a production plant for tires and another plant for cars. Reciprocal interdependence refers to the condition under which the outputs of each unit are inputs for the other. It is illustrated by the operations and maintenance units of an airline company. The operations unit’s output is an aircraft needing maintenance and is an input for the maintenance unit, whereas the maintenance unit’s output is a usable aircraft which is the input for the operations unit. All organizations have pooled interdependence, more complex ones have sequential interdependence, and the most complex ones have all three types.

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