Technology can be defined as the way organizations’ tasks can be accomplished using equipments, tasks, techniques as well as human know-how. Technology advancement is major factor that can cause change in the organization structure. It can result into a greater efficiency of the organization and even lower the cost of running the organization such as the cost of production in business organizations producing goods or services. Studies have shown that technology is a key player in molding nature of organization’s work and shaping the organization structure.
The role of technology advancement such as the information technology is indirect but may affect flow of information in the organization as well as the potential for the flow of information which in turn would affect the organizational structure. Technology can allow large organizations such as those that are industrial in nature to centralize their control as well as decision making, altering the structure of the organization and also the management of middle jobs.
Advancement in technology can result to the top executive in the organization depending less on their subordinates. This can be brought out by the executives using computers, which can enable them to monitor every activity that takes place in the organization and react to it accordingly. Technology can enable the top management to make decisions of centralizing logistics in the organization. Technology can as well enabled organizations that have subsidiaries to take control of them at one central headquarter.
In organizations such as manufacturing firms, technology can affect organizational structure by narrowing distinction between the white collar and blue collar works and thus eliminating or reducing need for the middle management. Q2. Organization structure is the manner in which organization’s sub-units are inter-related or arranged. It is defined as the institutional mechanism and arrangement for mobilizing physical, financial, and human as well as information resources in all levels of organization system.
Organization structure may be composed of various components which include formalization, complexity and centralization. My organization uses matrix structure in its operation since is a housing cooperative company. This structure usually groups employees into groups which may be either product or function. The organization uses frequently employee teams to accomplish their work so that they can take the advantage of strengths of the employees and also make up their weaknesses of decentralized and functional forms.
This type of structure is regarded as a form of network structure and focuses on the project teams and brings individuals who are skilled together from all parts of the organization. Employees are made responsible to their project managers as well as to line managers responsible. This type of structure uses specialists effectively and their jobs are well secured because of their competence in work. In addition, if offers a friendly and conducive environment to the specialists in order to improve the performance of the organization. The organization has better facilities and equipments that enable the specialists to work efficiently.
However, this form of organization structure can also result to stress for the specialists since they are answerable to several bosses and thus it can easily cause conflict in the organization. Furthermore, the project managers usually require several specialists or even shared specialists due to their posts. All in all, this form of organization structure is one of the best structures, which can be used to manage the firm effectively. This is because it brings together personnel who are competent and thus it can result to high performance
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