Effects of Technology on Organization design

Effects of Technology on Organization design


Functional,business and corporate level strategies

Functionallevel strategy

Thisrefers to the tactics used by the functional units of an organizationto enhance competitiveness by operating at cheaper costs as comparedto the competitors and provide better products than the competitors(El Louadi &amp Tounsi, 2008). For example Samsung strives hard tooffer unique mobile phones to the market with unique quality fromother competitors’ mobile phones.

Businesslevel strategy

Thisis undertaken by middle level managers and focuses on the corecompetences of the functional strategies to increase the return oninvestment through an excellent satisfaction to the customers. Thestrategy brings out the actions a company takes to create value tothe customers and set out the firm’s competitive position in theindustry (Jones, 2010).

Corporatelevel strategy

Thisincludes the whole functional units and considers the corporation asa whole. It refers to the general direction of a firm and how itsbusiness processes will be operated and integrated together in orderto achieve the corporation goals.


Organizationdesign problems

Multidomestic strategy

Thisrefers to actions taken by a company to satisfy local marketcustomers’ needs. The products offered are designed to satisfydifferent needs of each niche market. The problems an organization isassociated with include absence of global adaptation as a result ofmuch attention to local market needs and little exposure to globalskills (El Louadi &amp Tounsi, 2008).


Thisserves a wider market area than the multi domestic strategy. In thisstrategy, an organization is subjected to problems such as highercosts of production as a result of increased market cover beingserved, still no exposure to global skills, the problem ofbureaucracy that result into increased costs and slower decisionmaking processes due to centralization and limited levels ofresponsiveness to the local market (Jones, 2010).


Thisaims at providing the benefits of both multi domestic and globalstrategies as it also focuses on local markets. An organization canface the problems such as higher costs associated with bureaucracy,the control system can be difficult and the organization structureand design can be complex as a result of the complex coordinationneeded.


Technologyand organization effectiveness

Thedevelopment of technology generally affects the organizationpositively as a result of the benefits that organizations obtain.Technology has led to mass customization that helps meet individualand niche market needs. It has also brought innovation that hasenabled organizations to reduce the product development cycle hencenew products can be developed and introduced into the market with ashorter period of time than before (Jones, 2010). Technology has alsobrought efficiency and effectiveness in the companies as a result ofreduced production costs and quality products.

Question# 4

Connectionof specific technologies and organizational structures


Astasks become complex Charles postulates that it is important fororganizations to move from a mechanistic structure to that of organicstructure. Standardization is a major or important aspect that isbrought about by routine technology coupled up with employeeefficiency (Jones, 2010).

Noroutine technology

Responsivenessis a key consideration in this case as complex structures need quickfacilitation. Flat and decentralized structures initiate betterauthority and autonomy that spur decision making process.


Asthe name suggests the technology encompass a work process thatinvolves input, conversion and output performed independently. Eachsegment of an organization contributes to the general performanceindependently since individuals do not work together there is lowtask interdependence (Jones, 2010).

Longlinked technology

Thistype of technology is based on the precept of sequentialinterdependence in this case it means that the actions of a singleindividual affect other people. In this case the activities areperformed in a series manner.


Inthis case the work of all people and the departments involved isinseparable since there is task interdependence based on a reciprocalapproach. It makes the tasks almost impossible to program bringingabout the need for mutual adjustments as a coordination technique(Jones, 2010).


Technologyand corporate technology

Thecontinuous process technology encompasses an automation conversionprocess in which case the employees are not involved in theproduction. The only role played by the employees in this case isthat of machine monitoring and management in case there arebreakdowns. Technical complexity leads to increase in the hierarchylevels which are the case with batch technology that needs threelevels, production needs four levels, and continuous process needssix levels. Small batch technology agglomerates a narrow span ofcontrol with a decentralized decision making process (Jones, 2010).Continuous production technology has a narrow control span and acentralized decision making process. Lastly small batch technologycalls for organic structures where the mass production adoptsmechanistic structures.


ElLouadi, M., &amp Tounsi, I. (2008). Do Organizational Memory andInformation Technology Interact to Affect Organizational InformationNeeds and Provision?. InternationalJournal Of Knowledge Management,4(4),21-39. doi:10.4018/jkm.2008100102

Jones,G. (2010). Organizationaltheory, design, and change.Upper Saddle River, N.J.: Pearson.