Organizational Structure and the Role of Information Technology IT  Term Paper

Excerpt from Term Paper :

business organizations and environment facilitates a complex flow of information through each segment of the business corporation. It is therefore advocated that efficient and timely management of information is the backbone of all business organizations. So for the sake of acquaintance of effective information management of business records the organizations are now taking more technological approaches rather than manual ones. For that many organization have installed business software than offer customizable tools for different business and even various departments of the same organization. These customizable features have offered a great deal of satisfaction to the entrepreneurs and cooperation who basically seek for authenticity and accuracy.

Role of Information Technology in Business Organizations and Its Structure


As a matter of fact information technology is the core determinant of the contemporary organizations. The business landscape has been exposed to a wide variety of information management tools that offers instant solutions to complex business problems. The organization wide processes are directly and positively impacted by technology invasion and the remarkable outcomes are experienced by the stakeholders and organizational members. The fact needs to be acknowledged that contemporary organization today relies heavily on the tools of information technology.

Starting from the basic tools of recruitment and selection up till the orientation of new employees in an organization the information is processed electronically and the information database offers authenticity and accuracy as per the merits of information technology. The training tools and the performance management in organizations today are also guided by the principles of information technology. The discussion does not denies the importance of information technology for external business processes such as; customer satisfaction, sales, and even tools of e-commerce. But organizations today seem well versed with the importance of striking a diligent balance between the internal and external business processes by the appropriate information technology tools (Edwards).

On dissertation of the working principle of information technology it can be retrieved that the basic functioning of information technology pertains to the storing, controlling, regulating, disseminating and processing the information. Over the period of the decades information technology has successfully substituted the conventional tools of business administration by inventive and ground breaking technological gadgets. Apart from amplifying the efficiency of an organization the information technology has also pioneered the contemporary tools of expanding business globally by e-commerce.

The Role of IT in Business Transformation

The tools of information technology adapted by organizations today are much modified than the antecedent forms of technology applied in organization. Organizations today find it cheaper to install technology and IT tools than to manually maintain and train the employees for business record keeping. Owing to the modifications of technology and ever expanding horizons of information technology the business processes have been adjusted to be technology compatible and savvy. But if we trace the antecedents of information technology in organization structure than the fact will be retrieved that the business settings and organizations were not always technology compatible. It is for this reason that the past few decades are remarkable important and is viewed as the threshold of information system in the organization. The business and organization structures have mainly evolved and transformed on the basis of the attributes discussed below (Delmonte):

The Beneficial Identification of IT

Information Technology begins to impact the organization structure when the beneficial outcomes of its implementation astonished the business setting and organization structure. The benefits that incorporated the installation of Information technology in organization were primarily cost cutting, business record keeping, and confidentially of business information from unauthorized users. These attributes were augmented with further benefits including the customer database and online market surveys apart from the business process outsourcing.

Effects of IT in Organizational Context

The implementation of the tools of information technology have affected the contemporary organization structure in a number of ways including; the installation of mobile technology makes it easier for the organizations to contact the employees from any part of the world, this has created a directly strong bond of organization and has ensured the ever availability of employees to cater complex tasks. Secondly the idea software solutions endowed by the information technology tools in organization make it easier for the corporate governance as well as facilitate the employees and the organizational structure to easily manifest the solutions of complex problems. And at the same time makes an organization well versed with the fads and global trends of organizational cultures and decision making (Dawe).

The most vital effect of information technology on the organization structure is the maintenance of business records and financial transactions as well as customer databases and employee records on a specialized server. This specialized server takes less space and at the same and authorization barriers to save the business information as well as monitoring the performance at the same time.

The Nature of Contemporary Organizations

The organizations today are well equipped with the basic and advance tools of information technology. This also intensifies the need that the organization structure today much compatible to the tools of information technology as much of the corporate decisions are backed by the tools of information technology. The organizations nowadays allocate special budgets to upgrade the tools of Information Technology.

As a matter of fact today organizations are competing over the fringe advantages attained by the implementation and upgrading of technology tools. There is in fact no single organization existing without a specialized Information Technology Structure. This means that Information technology forms the mainstream of the business processes. The ground breaking relativity of Information technology has bestowed the expansion of business organizations. This also inculcates that globalization and internationalization to exceeding limits. The point of argument narrows down when the organizational structure identifies the role of information technology and strike the balance so as to incorporate the technology with the human resources for the better survival and existence of the organization.

Unique Attributes Of IT in Organizational Context

The implementation and profound outcomes of information technology are making the organizations stable and the organizations today compete for excellence in Information Technology tools to excel in the outcomes associated with the following attributes.

The Productivity Factor

Productivity as a matter of fact is the point of contention in organizational context. The reason of setting up and establishing the organization is to enhance the productivity. The information technology tools make it easier and cost effective for organizations to attain the motto of high productivity. The application of technological tools, including relational database technology, computer-aided designing, word processing, spreadsheets, enlarges the productivity of businesses ("The Information Technology Revolution" 105)

The Significance

The most important aspect of business operations and processes is to attain a commercial advantage. The originations today enhance their commercial advantage by the utilization of adequate information technology tools.

E- Commerce

Trading over the internet to the global market has inevitably become the most apt tool for small and medium size enterprises along with the large corporations. E- Commerce is primarily the buying and selling of specialized services and consumer goods over the Internet. An organization by operating online can control the lead time and the human resources requirements for the execution of business processes. It is an ultimate cost reduction tool that reduces the cost of physical labors, manual documentations as well as the requirement of a physical workspace ("The Information Technology Revolution" 105).

Relating the Importance of It Structure with My Career

While considering myself in the professional environment the understanding of information technology and its wide range implications becomes the core issue at disposal. The basic purpose of business today is to maximize the profits by reducing the cost and enhancing its efficiencies to foster long-term productivity.

By looking at my personal experience I am well convinced with the importance of information technology and information management in all the possible organizational functions. My first employment was…

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