Informational Organizational Structure

An IT organizational structure infers the system used to define a hierarchy within the department charged with creating, monitoring, and maintaining information technology systems and services in a company. The system defines the job and function of everyone in an organization. The structure is established to ensure that all Informational Technology personnel support the organization's goals.  Companies that implement an organizational structure reap multiple benefits such as better communication, reduced employee conflict, elimination of work duplication, enhanced employee performance, improved operating efficiency, multiple business locations, and faster decision making (Riggio, 2017).

IT organizational structures vary with a company depending on its strategy and objectives. There are four broad types of organizational structures namely, functional, divisional, flatarchy, and matrix structure. A functional structure involves an IT department that is divided into specialized groups with specific roles and duties. It is commonly found in small to medium-sized companies. These specialized groups have a manager who oversees everything. Moreover, all managers in these groups have an administrator who supervises multiple departments. In a divisional structure, various departments work alongside each other towards a common goal. The structure is used by large companies where each division is managed by its executive. On the other hand, flatarchy structure has no levels of management and can only have one manager between the executive and employees. Lastly, the matrix structure is one where the employees report to two managers-functional managers and project managers.

Organizational structure has a great impact on the company culture. The organizational culture is built around its structure and changes with a change in the structure. For instance, the culture will change when the workers in an organization are assigned different roles in the same structure. Some cultures respond to changes immediately while others take time. Companies like mobile applications and software should have cultures that respond quickly to organizational changes. Consequently, when the structure and culture mismatch within an organization there is a possibility of a major disaster. As the business expands in size and scopes its structure changes.  Grasping the change in structure helps in decision making thus driving the company towards the right direction. Therefore, the executive must understand the relationship between an organizational structure and culture for effective management (Riggio, 2017). This calls for leadership and management training for skills development that can analyze a company’s culture to improve productivity and performance.

In the contemporary market, corporations fail to align their organizational structure with their strategy. It is a good practice to first come up with a strategy then later develop a structure that delivers it. The structure is one of the fundamental levels needed by executives to successfully manage the business and gain a competitive advantage. This proves that the structure and strategy in an organization are intertwined. Ideally, there is no industry standard for an organization structure. However, a unique structure will grant a company a competitive advantage in the marketplace. For instance, a flexible structure will result in a flexible strategy.

Organizational structure impacts a competitive advantage against other companies. One way is that internal communication becomes easier. The employees can communicate effectively with each other and the manager through the right organizational structure. Moreover, the employees get a platform where they are heard and can participate in matters of the organization. A good organizational structure also allows businesses to make decisions easily. The employees communicate efficiently and can take part in decision-making. Consequently, the leadership has accurate information for making the right decision that propels the company forward. It is also easy to carry out tasks when a company has a good organizational structure. Individuals know their role and gather all the necessary tools to perform effectively. The company employees become happier and are more productive on the job. This makes the organization run smoothly making the clients happier, too.

A business should organize and identify what is unique about its clients, products, and market. If the structure is similar to that of competitors then developing distinctive strategies becomes almost impossible. In other words, distinctive strategies require a unique structure. A company can know that the structure is different if it consistently outclasses its competitors. If the executive acknowledges the good work of the team then it means the structure is fine as the strategy is working.  Therefore, for effective management of staff, the organization must develop a good structure that addresses the challenges it faces. Though, the staff should also be talented to compete favorably in the market they serve. The manager needs to have the acumen of identifying and developing new customer relationships while creating new strategies. Meanwhile, this only happens when there is an organizational structure in place (Santos, Bronzo, Oliveira & Resende, 2014).

In conclusion, the organizational structure of a company is a key element that determines its competitive advantage in the marketplace. It entails a properly channeled communication plan, well-organized distribution of tasks and responsibilities, and flexibility of the organization amidst change. All these factors determine how the company relates to the external environment. A good organizational structure makes the business achieve its objectives.