WHAT IMPACTS ORGANIZATIONAL
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.
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
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
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
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
ON DEMAND ORGANIZATION BENEFITS
The Organization Chart for On Demand
BALANCE COMPANY CULTURE WITH
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
“It’s important to balance culture fit with bringing in
people who have a fresh perspective.”
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.
Investment in Human Capital
Exploit new ideas
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.