Organizational Strategy and Information Systems

Organizational Strategy and IT

Organizational Design

· Different designs accomplish different goals

· Decision rights will differ according to the design

· Different reporting relationships and organizational structure will allocate decision rights in different ways

· Four major organizational designs are:

· Hierarchical

· Flat

· Matrix

· Networked

Hierarchical Organizational Structure

· Orders go down and information goes up

· IT provides communication/memory in both directions

· Also known as a bureaucracy

· First observed by Max Weber in the Catholic Church and German army and applied to early factories and offices

· Features include

· Unity of command (one boss for each person)

· Span of control (measures the number of subordinates for each boss)

· Clear lines of authority and reporting duties

Flat Organizational Structure

· Also known as horizontal organizational structure

· Features:

· Decentralized decision making

· Less well-defined chain of command

· Less clear decision rights

· Few middle managers

· IT glues together the organization

· IT allows rapid response; supports internal communications

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NATIONAL CULTURE: GLOBE Cultural Dimensions

· Uncertainty avoidance

· Power distance

· Societal collectivism

· In-group collectivism

· General egalitarianism

· Assertiveness

· Future orientation

· Performance orientation

· Humane orientation

How are IT and Culture Linked?

· IT supports cross-cultural communication

· People need to be aware of cultural differences when communicating

· This awareness will lead to:

· Better listening and understanding (correctly framed messages)

· Searching for a solution that will be accepted widely

· Reduced conflict