¶ … Organizations
To gain an idea of the suitability of different organizational models for prospective informational technology organizations, it can be useful to review the currently existing models for all organizational hierarchies. Professor of Management from Yale University, Jeffrey Sonnefield has defined four distinct cultures or models for most business organizations. All of these models have parallels in the real world of existing informational technology firms to some degree, but all have varying levels of appropriateness for a successful IT firm. One of these, known as the 'fortress" style firm where "employees don't know if they'll be laid off or not," is perhaps the most familiar model for corporate America today, still, even after many years of attempt to soften managerial styles.
Fortress organizations often frequently undergo massive reorganizations, in the hope that 'shaking things' (or employees) up in the organizational hierarchy will produce more profits. There are many opportunities in these organizations "for those with timely, specialized skills," as was characteristic of fast-based, often Internet-based organizations, such as the early days of AOL. However, these organizations (AOL none withstanding) often have a quick lifespan and uncertainty is not conducive to long-term development of technology and a well-tested lifestyle management of new products. (Sonnefeld, cited by McCarter, 1999) Often in...
However, many long-term profitable technologies do not show dividends for some time, thus the fortress model has many flaws.
On the opposite extreme of the fortress model is an academy-style model, such as a research-based IT firm connected with a large university. In this organizational model, employees are highly skilled and tend to stay in the organization, while working their way up the ranks. The organization provides a stable environment in which employees can develop and exercise their skills. Examples of academy cultures are universities, hospitals, and other large corporations with IT divisions, as well as technologically dominated firms. (Sonnefeld, cited by McCarter, 1999)
The academy model's stress on skill often produces a quality product with a low level of error. The only problem is that protocol rather than innovation can lead in a highly entrenched organization. A singular, powerful figurehead such as at Microsoft also often dominates these types of organization. They can be very segmented between advertising, finance, and the actual technical departments, causing fragmentation of communication, ideas, and issues.
At the most extreme, such academy style organizations can be come…
