Introduction
Organizational design is relative to the success of any organization and determines numerous factors such as operation adequacy, productivity, innovation, and the environment. Featured in the Manager’s notepad 10.2, size, strategy, lifecycle, technology, human resources, and environment are the contingency factors in organizational design (Kodama, 2021). While many may argue that either human resources or strategy contingency are the most important to influence internal aspects of organizational performance, I am convinced that Information Technology is the most vital contingency. Amazon is an example of multinational retail organization leveraging IT to enhance other competencies such as size and human resources. IT is undeniably crucial in automation, HR efficiency, innovation, organizational networking framework, and predictability. Peer-reviewed literature hint at a fit between IT success, level of contingency, organizational characteristic, and potential growth.
Application of IT in Organization Design
IT is primary to numerous organizational design features, including but not limited to automation, networking, HR efficiency and adaptability, structures, and systems set-up. In the digital era, IT is the cornerstone of an organization’s networking framework. It is responsible for organizing, expanding, and connecting the business with key stakeholders by facilitating communication, marketing, and data collection (Lobach et al., 2018). Amazon employs Management Information Systems (MIS) that is elemental in collection, analysis, dissemination, and storage of organizational data while implementing management functions. Adopting technological developments in design improves HR, operation, systems, and decision-making efficiencies (Mehmood, 2021). A mismatch between external and internal technological environments would severely implicate organizational design compared to other competencies.
Process of Adopting IT in Organizational Design
To positively influence benefits from foregrounding IT in organizational design, firms ought to evaluate the potential fit or appropriateness of the IT design selected for adoption. Selensky (2022) highlights that the Contingency Theory of “Fit” guides assessment for the most appropriate technological system targeting group level and individual levels of performance utilizing the Van de Ven and Drazin approach and the task-technology theory, respectively. For instance, the appropriateness of technology utilized in Amazon is determined by the ability to detect strategic issues that confront the business. A cross-sectional study by Joseph (2020) indicated that technology fit influences multiple indicators of organizational performance, such as cost, sales, adaptability, and brand. Therefore, frequent organizational reviews determine when and under what conditions IT solutions are a candidate for contingency.
Conclusion
Ultimately, IT is the most critical contingency for organizational design, central to distinguishing between mechanic and organic structure, automation for mass production, communication, a company’s systems, and control of tasks. Any firm’s efficacy in internal operations and external networking is primarily determined by technological complexity and fit. Amazon is an example of organization that manipulates MIS systems to influence all spheres of operations and decision-making. Technology is all around us, so ubiquitous that we cannot almost notice it. However, it has developed to be the predominant influence of communication, innovation, productivity, and collaboration fundamental in organizational design.
References
Joseph, J., Baumann, O., Burton, R., & Srikanth, K. (2018). Reviewing, revisiting, and renewing the foundations of organization design. In Organization Design. Emerald Publishing Limited. Web.
Kodama, M. (2021). Managing IT for Innovation: Dynamic Capabilities and Competitive Advantage. Routledge. Web.
Lobach, O., Babych, I., & Persiyanova, E. (2018). Information technology for the integrated assessment of expert competency. The current state of scientific research and technology in industry, (3), 44-56. Web.
Mehmood, T. (2021). Do Information Technology Competencies and Fleet Management Practices lead to Effective Service Delivery? Empirical Evidence from E-Commerce Industry. International Journal of Technology, Innovation, and Management (IJTIM), 1(2), 14–41. Web.
Selensky, S. (2022). Process innovation in supply chains Towards a method for achieving process-technology fit (Doctoral dissertation, Universitдt St. Gallen). Web.