IT IMPACT ON ORGANIZATIONHarnoor Singh

WHAT IMPACTS ORGANIZATIONAL STRUCTURE?

Organizational structure is the method by which an organization communicates, distributes responsibility and adapts to change.

According to the Reference for Business, organizational structure is how a company utilizes its resources to achieve its goals.

A company needs to keep its structure dynamic so that it can respond to the things that impact organizational structure. The company that can adapt is better able to survive.

TECHNOLOGICAL IMPACT Technology can have an impact on how your

organization is structured and how work flows. The Reference for Business points out that when

computer networks became popular, it became easier for people to work as groups. People did not need to be in the same room, or even the same building, to be efficient.

Technology can create positions within your company and it can eliminate positions.

When filing is done electronically, there is no longer a need for as many file clerks as you once had but there is a need for a department of technicians to maintain and grow the computer network.

As technology continues to change the function of jobs in the workplace, the landscape of organizational structure changes with it.

IT DEMAND - TO SERVE CUSTOMER NEEDS

Customer service is important in business, so many companies have created entire divisions dedicated to customer service and retention.

If a particular customer awards a large contract to your company, you may need to rearrange certain parts of your organization to accommodate the contract. For example, there may need to be an entire sales division created just for that customer and manufacturing may need to create a sub-process to build specialized products as well. As the needs of your customers shift, so to will the structure of your organization.

GROWTH MANAGED BY IT A major factor that impacts organizational structure is

company growth. As a company grows, the impact on the structure of the organization is significant.

This can be especially true when the organization begins to expand to other geographic regions and the structure of the organization is spread out over many miles.

A company may start out small, but, as time goes by, more employees may be hired, necessitating the introduction of departmental managers to help create a managerial structure. Additionally, an executive team may be required to run the various aspects of the business, and there may be the need for middle managers who would report to the managers. The management and sync is very well performed using IT

ON-DEMAND ORGANIZATION

NEED OF ON-DEMAND ORGANIZATION

 Too much managerial overhead can slow down productivity and discourage creativity

 Companies like tech company GitHub and gaming software developer Valve have sought to do away with this obstacle by adopting a “flat” organizational structure with the idea that having fewer middle managers empowers employees to be more innovative and organize themselves around projects.

ON DEMAND ORGANIZATION BENEFITS

The Organization Chart for On Demand offers:

 Flexibility. Availability. Compatibility. Visualization.

BALANCE COMPANY CULTURE WITH DIVERSITY

While hiring a candidate who fits the company’s culture is important, businesses also need to take diversity into consideration. Finley says that one way flat-structure organizations ensure that work always gets done without direct supervision is through hiring people who “fit the culture.”

But the darker side of this hiring approach can lead to hiring too many candidates who come from the same background.

“It’s important to balance culture fit with bringing in people who have a fresh perspective.”

WHY ON-DEMAND? A systematic force that leads such firms to use

more of the supposed complements would be an alternative. Systematic forces could be:

The expansion path of inputs as the scale of output rises. Bigger firms buy more of the "complements."

Managerial rents and free cash flow might lead successful firms to demand more of these particular inputs. Managers might take pleasure from working with smarter and more capable people, and so on.

Worker rents. Rather than computerization and skills being complements, the causation operates in the reverse direction and is unrelated to productivity. For example, skilled workers might get computers for fun.

ADVANTAGES

Investment in Human Capital Market Competition Resource Utilization Dynamicity Exploit new ideas Lesser Risk

CHALLENGES

High Skilled management required. Negotiation at each level. Availability of Resources. Cope against Loyalty. Limited to a level. Less support from financial institutions. Decisions delivery is required to be fast.