Communication systems and sub-systems are the means by which the organizations coordinate various human activities to work in the common direction for achieving the end goals. Hence, communication is the binding factor that integrates the two ? Information Technology and Organizations. The aim of this essay is to highlight the effects of information technology on an organizational structure and bring out the challenges that organization structures face in today's information age.



An organization can be defined as a collection or grouping of humans working in coordination with each other without breaking link with the external environment. Classically, the structure of an organization addresses the issues of breaking down of a task into sub-tasks, allotment of teams to sub-tasks, coordination among the teams and exercising supervision These issues can be handled in a number of ways.

The organizational structure has a close dependence on the type and strength of teams, goals of the organization and the technology used. The guiding parameters for an organization's structural design are the number of management levels, level of delegation, staffing, reporting, linking and control mechanisms. We will focus our discussion on the dependence of organizational structures on Information Technology.

Information Technology has a telling effect on all the design parameters of classical organizational structure. Physical proximity of the task groups is no longer a requirement for the purpose of supervision. Other design parameters like, linking and control mechanisms have been automated. Information Technology has led to enhanced mission effectiveness through thoughtful adaptation of organizational structures. Multi-layered managerial tasks, as existent in classical organizations, have been thinned owing to electronic mailing, especially where administrative matters are concerned.

Enhanced reach of managers over a larger number of work groups has improved managerial efficiency by many folds. Automation of manufacturing processes has led to production automation, as is evident from financial industry. Electronic linking has resulted in better interaction between the manufacturer, supplier and the customers. Electronic linking has removed the geographical boundaries between the various work groups with in the organization and between the organization and the external environment. Now work groups can be easily formed and coordinate to achieve the ends.

Electronic data interchange (EDI) between the manufacturer and the supplier has strengthened their integration, thereby involving the supplier in the organization's manufacturing process.

Traditional organizational structures require being flexible and adapting to the new technology that offers expeditious interaction via quality information sharing. Thus the organizations should organize to derive optimum benefit from Information Technology.