The paper "How Technology Plays an Important Role in Organizational Structures" is an outstanding example of a management assignment. Every organization has its own structure and culture. When this distinct organization has to merge with another organization a multitude of issues arises. Such a case study shall be analyzed in this paper. The paper also analyzes how technology plays an important role in organizational structures. Indigo and Chapters are bookshop chains in Canada. Indigo and Chapters both had similar organisational structures – a functional-based design. Indigo’ s corporate structure, for instance, consisted of departments such as marketing, human resources and retail.
Indigo gained control of the nationwide chain of 210 Cole’ s Books and SmithBooks stores, as well as a new internet division, Chapters Online. The structure of the newly merged organisation had to change in order to incorporate these new businesses. They went through a merger and faced major losses. This paper discusses the case with the help of a few question which is answered in the discussion. In an organization which is merging its self with another organization usually faces a lot of structural issues.
According to Krug (2009) structural issues which an organization faces can be the manner in which the staff interacts with the top management and how the information is passed on to the customers. Other issues may include operational policies, which include the culture of the organizations. These policies are not written in black and white, yet they become an important part of the organisation’ s structure. For instance, if one organization has a workaholic and informal environment, while the merged one has a more corporate and formal way of communication.
In this case, an issue may arise after the merge takes place. Another issue which arises is that organizations usually do not consider the culture as part of the organizational structure, and try to change it that is when a major issue arises. According to Straub (2007), the bigger or stronger organization tries to implement its culture and way of operating in the smaller organization. Of course, the smaller organization is offended and tries to make its culture and point of view stronger than those which have been thrown on upon them.
However, the large one also pushes back and thus it turns into what can be called civil war. This is a major issue when two organizations merge. Considering the above discussion about why Indigo should consider both a partial mechanistic and partial organic structure. The management of the organization is based on a mechanistic structure. However, maybe even organic structure in the 300 stores to enable flexibility and decisions of a day to day nature to be made close to where stores function The structure is important for any organisation.
The allocation of responsibilities and affiliation among employees of the organisation can also develop in an informal manner. However, there is a need for a formal organisational structure in larger organisations. Considering the importance of its growth and development, the organizational structure has to be continuously changed according to its circumstances. This helps in ensuring that the organization has the most suitable structure, especially for very large organisations. According to Mullins (2007), the structure of an organisation affects not only productivity and economic efficiency but also the morale and job satisfaction of the members of the organisations.
According Mullins to (2007). The structure should be designed so as to encourage the willing participation of members of the organisation and effective organisational performance
Brynjolfsson, E., and H. Mendelson (1993). Information systems and the organization of modern enterprise. Journal of Organizational Computing 3: 245-55.
Burns, T. & Stalker, G. M. (1961), The Management of Innovation, Tavistock, London.
Krug Jeffery (2009). Mergers and Acquisitions: Turmoil in Top Management Teams. Business Expert Press
Kunov Andrei and Sitnikov Alexis (1999). "Economic Legislation of the Duma: The Role of Organizational Structure," Russian Economic Trends, v. 8, no. 2
Malhotra Yogesh (1993). Role of Information Technology in Managing Organizational Change and Organizational Interdependence . Brint Institute.
Miles Raymond E. and Snow Charles C. (1978). Organizational strategy, structure, and process. New York: McGraw-Hill Book C
Moore Brad and Brown Alan (2006).“The Application of TQM: Organic or Mechanistic?” International Journal of Quality and Reliability Management Vol. 23. Issue 7.
Mullins, L.J. ( 2007.) Management and Organisational Behaviour. FT Prentice Hall
Pleshko. L.P. (2007). Strategic orientation, organizational structure and the associated effects on performance. Journal of Financial Services Marketing . 7(3), 258-266
Straub Thomas (2007). Reasons for frequent failure in Mergers and Acquisitions: A comprehensive analysis. Wiesbaden: Deutscher Universitätsverlag