Evaluation of the Effects of Organizational Change to Information Technology (IT) Structure

Organizational development (OD) refers to a series of action-oriented strategies to allow sustained performance in a given organization (Dückers et al. 2011, p.131). This exercise is old in the industry since it was evident in the early 1980s where Mark Frankel and Bill Gellermann began the development of a statement of values and ethics in an organization (Grieves 2000, p.402). Organizational development utilizes behavioral science technology, research, and theory in making critical changes in different departments of the organization including leadership, policies, job redesign, and power (Davis et al. 2014, p.176). The transformative actions in a department may affect the operations of a different section of the institution which makes it necessary for the researchers to carry out comprehensive checks to determine the effect of IT changes in the specific department. This research is crucial since it ensures a seamless adoption of the new strategy without compromising the performance of other departments which would otherwise have undesirable outcomes.

The purpose of this article is to show the need for an organization to update its IT structure to support its new strategies. It will include a critical analysis of the role of technology in OD and various methods that an institution may use to maximize the strategy’s operational benefits. The motivation factors to individual employees and teams play a significant role in the acceptability of new strategies and high productivity in individual employees (Avisona et al. 2004, p.232).

Organizational Development and Change

An organization is a social entity with specific goals and an organized structure to aid in the achievement of the targets (Sun 2000, p.379). It links several external and internal factors to ensure maximum productivity and successful implementation of its strategies. The external factors include the customers, competitors, and suppliers while the internal ones comprise the structures, people, beliefs, and information technology support systems (Serrat 2017, p.57). The organization should always consider these factors when changing their structures to ensure that the adopted measures achieve their target. Information technology is particularly crucial since it links all the departments in the organizational to ensure that they work in harmony for the betterment of the company’s operations (Gillet et al. 2013, p.462). For example, an organization may install an Electronic Resource Planning (ERP) software in their company to coordinate different sections of the unit. In such a case, most of the activities in the organization are interlinked to ease the operations, minimize the operational cost, and ensure maximum return on investment. If a new structure is introduced, it should support the IT system to avoid a system breakdown which would consequently result in the failure of the company’s internal factors to link with the external factors leading to losses. The ERP system ensures that the production, human resource, record keeping, stock-taking, and customer relations are connected which reduces the workforce required to maintain the operation of the institution( Almgren & Bach, 2014). Therefore, if a change in structure does not support the existing IT system, the cost of operation will increase as well as the chances of errors in the production process (Karanges et al.2015, p.234). There exist various sources of organizational change and development including:

Technological Advancements

The success of any organization is dependent on its flexibility to adopt changes in the technological environment (Guidroz et al.2010, p.152). This step eases the operations of the company by minimizing the effort required to achieve specific tasks and thus revolutionizing the hiring process in the company. Most companies in the world have their operational structures to accommodate the ever-rising level of technology and enhance their professionalism and productivity (Cascio and Montealegre 2016, p.360). For example, Unilever Company in the United Kingdom has adopted a dynamic approach to the evolution of technology and innovations which have helped it to successfully spread to other parts of the world despite the harsh economic periods and the rising competition that it has encountered since its inception in 1930(Unilever, 2018). The company spends approximately €1 billion annually in research and technology to ensure that it develops products that satisfy the consumer and ensure maximum returns for the company. Through this effort, it has employed more than 6000 research and development professionals globally to build its brand and withstand the competitive environment in the market. As such, the Unilever has diversified into producing numerous household items including soaps, margarine, cooking oil, and other high-demand items(Unilever, 2018).

The success achieved by Unilever due to its flexibility to adopt new technology and innovations emphasize the need for organizational change to conform to the prevailing environment thus ensure the production of high-quality products. An organization that remains static and fails to accommodate changes in technology, innovations, and inventions will not achieve their objectives since they will lose competitive edge over their competitors (Cascio and Montealegre 2016, p.358). The technology is currently applied in numerous facets of the business including the production, management, marketing, sales, and customer relations which makes it a critical element of any successful organization.

Changes in Social and Legal Factors

The dynamic nature of the social and legal guidelines necessitate an organizational change to ensure that the organization conforms to the requirement of their customers as well as the surrounding external environment (Bondarouk and Brewster 2016, p.2659). For example, if Unilever failed to transform its production unit to include substances that the society need, they would have stopped production due to significantly low demand. Instead, the company has adhered to the set legal guidelines and the social needs of its clients(Unilever, 2018). This flexibility is manifested by the introduction of different items by the company including perfumed soaps, biofortified cooking oil, enriched margarine, and many other customized items.

In some cases, the government may pass laws requiring companies like Unilever to fortify their products with crucial micronutrients to enable the fight against deficiencies. In this case, organizational change in the production structure is necessary to accommodate the legal requirements and help the society to overcome their day-to-day challenges (Gillet et al. 2013, p.462).

Internal Environment

The factors within an organization are significant in determining the organizational structure that the unit will adopt (Dückers et al. 2011, p.123). These factors are crucial in the implementation of the adopted structure which makes it necessary that any organization considers their input before making crucial decisions. The factors include the employees, existing structures, financial position, and the goodwill of the people to implement the new or suggested organizational changes ( Gilson et al. 2014, p.1321). The organization should consult all the stakeholders to ensure a smooth adoption and implementation of a new structure. There should be a mutual understanding of the need for the changes after wide consultative meetings to explain the benefits that the organization stand to achieve by implementing the proposed structure ( Howard et al.2016, p.76).

Technology and Organizational Development

Technology has had numerous disruptive effects on the organizational structures of various institutions (Davis et al. 2014, p.171). Some of the most common technology techniques include electronic monitoring systems, wearable computer devices, teleconferencing, and robots. Institutions have adopted these methods to enhance their service delivery and customer satisfaction which has entirely revolutionized the working structures of such institutions ( Gilson et al. 2014, p.1329). The human resource personnel in modern-day institutions have been tasked with ensuring that they maximize production while minimizing the human resource input. As a result, this hiring personnel has been forced to embrace technology in ensuring that the production process takes place smoothly with the minimum number of employees possible (Shamloo and Cox 2010, p.140). For Example, in 2012, Amazon obtained Kiva robots at a cost of $ 775 million to aid in the management of their warehouses across the United States. By 2015, the company had acquired approximately 30,000 Kiva robots that were used across 13 of its 123 warehouses globally. The approach significantly reduced the company’s operating cost with an estimated 20% representing approximately $22 million for every warehouse(Optimus Amazon Prime, 2015). This cut in the operational costs resulted from the robots ability to efficiently perform the duties undertaken by human beings at lower maintenance costs as well as little space. The Amazon case is an illustration of the effects that technological advancements have had in the society. While businesses are reaping the benefits of these discoveries, human beings continue to lose jobs as their roles are taken up by the robots, electronic monitoring systems, and other technological innovations (Davis et al. 2014,p.180).

Organisations are using technology in a bid to improve efficiency and cut the operating costs thus maximizing the returns (Bondarouk and Brewster 2016, p.2665). For example, companies that produce in large quantities may require numerous people to be involved in stock-taking and data management systems. However, the company can significantly cut on the cost of operation by implementing an electronic monitoring system that codes, scans, and stores the data of the specific item on the company’s database. Such an item is always detected whenever the management needs to determine the quantities of the items in the store. This process eliminates the need for numerous employees to count the remaining stock and maintain the inventories (Cascio and Montealegre 2016, p.348). The electronic management system has been implemented by most companies dealing with electronics and automobiles including Toyota, Nissan, Samsung, and Sony. The aim of any company is to maximize the profits by ensuring the adoption of methods that are efficient yet less costly. This consideration has driven many of the organizations in the world to adopt technological innovations and inventions. Apart from human resource, space takes a considerable amount of expenditure budget and, therefore, a company would be interested to find a solution that would cut the space costs which has forced them to scrap the use of labor-intensive production methods (Gillet et al.2013, p.454). Most of these companies are using robots and other electronic devices that take up little space compared to the human beings. A hotel called Weird in Japan has used this approach to significantly reduce their rent budget and maximize the output by ensuring the provision of high-quality service at lower costs(CBS News, 2015).

The new technology will change the nature of work as people become more innovative to maintain the high pace set by technological advancements (Gillet et al. 2013, p.456). While people are continuously losing jobs due to their replacement with technical gadgets, it is paramount to note that the situation will also boost the inventions level. The need to solve problems in the society has led to a rise in the number of electronic devices and technology related services equipment (Walker et al. 2008, p.479). The sources of these innovations are mainly the pressure from the society to contribute to the development of the communities; the need for economic progress; need to solve the issue bedeviling the society; and the need to maximize profits in individual business establishments. These issues have propelled the level of scientific discoveries to a higher level compared to the previous decade ( Gilson et al. 2014, p.1337). These innovations have in turn led to the employment of millions of people which has contributed to the reduction of the unemployment levels in the world. For example, the last century has seen the development of Facebook, Snapchat, and other big companies that have turnovers amounting to billions and has employed a high number of people. Also, the nature of work is moving from the traditional hands-on tasks to automated tasks due to increased mechanization of tasks in different sectors of the economy (Davis et al. 2014, p.175).

The Relationship between Motivational Approaches and the Information Technology Structure

An organization should ensure that they adequately utilize their human resource to achieve the desired results (Dückers et al. 2011, p.125). The people are the custodians of all the plans that a company may establish and aim at achieving within specified timelines. These individuals determine the applicability of the strategy and whether it will bear the expected fruits since they are solely responsible for the implementation process. The employer should offer both intrinsic and extrinsic motivation to the employees to ensure that they perform their duties as expected and consequently aid in the fulfillment of the organization’s goals, mission, and vision (de Jong et al. 2015, p.212). The employer will achieve intrinsic motivation among their employees by ensuring that they enjoy numerous benefits linked an achievement of a specified task. The employee must have a feeling of self-accomplishment and pride in belonging to an organization that is sensitive to their needs as well as to the needs of the society (Davis et al. 2014, p.176). The extrinsic motivation comes as a result of better pay and awards that the employees realize by achieving a specific task assigned to them. When the organizational structure offers these two crucial elements of management, the company will achieve a significantly high number of their targets. It will have a motivated workforce that feels a link between them and organization and thus ensure that they offer the best recommendations for structure improvement as well as support the existing organizational structures (Bondarouk and Brewster 2016, p.2670).

The link between Motivation and IT Structure

The structure of information technology systems in an organizational determines the attitude of the employees (Dückers et al. 2011, p.120). The employer has the obligation to provide the workers with a conducive environment to boost their operation and motivate them into their achieving their goals. The system should support both the needs and the process theories of motivation to ensure a seamless flow of company’s activities. The IT structure should be designed in a way that it identifies talent, recognizes distinction in performance, and enhances personal growth based on the productivity and the efficiency of the individual in their workplace (Shamloo and Cox 2010, p.143). For example, the IT structure may be designed in such a way that the rate of pay per hour increases when an employee surpasses a certain target. With such a structure, the employees develop intrinsic motivation to achieve their targets which consequently leads to a better life for them ( Thomas and Stephens 2015, p.10). Also, when determining the IT structure, the management should ensure that it considers the input of the employees. The consultations bring in trust and a mutual sense of belonging which is a major boost to the motivation of the employees to work towards the realization of the set goals. The structure should allow a fair and accountable system of evaluation, remuneration, and should meet all the needs of the employees (Avisona et al. 2004, p.232). The equity and goal theories are also a critical element in devising an IT structure. The employees should be treated equally and their goals should be uniform to ensure that they feel equally valued by the organization (Davis et al. 2014, p.178). For example, when an IT structure has a goal setting mechanism, it is necessary for the organization to include the employees when setting the goals to ensure that the targets are fair and that their input and concerns are considered during the process. When these factors are appropriately implemented, the employees own the structure and it becomes easy for the organization to use it to achieve its goals.

The Effect of Change on IT Structure on Team and Group

The change of IT structure will have some effects on the team operations of an organization which makes it fundamental to make changes that will maintain the morale of the teams to perform (Dückers et al. 2011,p. 124). Before the adoption of an IT structure, it is crucial that the company determines the needs of the teams to ensure that it does not disrupt their operations. The teams have differentiated abilities that enable them to perform specific roles through effective coordination of their duties (Gillet et al. 2013, p.450). The IT structure plays a crucial role in ensuring that the members of the team get the information, the targets, objectives, and other necessities to enhance the fulfillment of their duties. If the structure fails to achieve this, it becomes substantially vague and it may not serve its intended purpose. As such, the management should actively involve all the members of the specific groups in an organization to ensure that they evaluate the potential effects that the implementation of the proposed IT structure would have on their operations (Cascio and Montealegre 2016, p.349). This exercise will avoid future problems associated with the adopted modules which would otherwise compromise the productivity of the organization. An example of such a fault is a situation where the production and the store personnel work as a team to ensure timely delivery of a specific product. In such a case, the members of the team in the production unit need to have a clear IT structure that will enable a quick reception and execution of an order given to the members in the store department (Avisona et al. 2004, p.223). If the IT system can install a software that automatically use loud sound to pass the message from the production unit, allow a quick collection of the required item into a conveyer belt and the delivery made immediately, the process would run smoothly. As such they would be no delay in the production of such a product( Almgren & Bach, 2014). If, however, the IT structure fails to have such a model, it will lead to numerous errors which lead to distorted quality and reduced production quantities and thus low profits.

The rise of information technology should ensure efficiency in all the processes within the organization. It should allow the creation of conducive working environments for all the members which would ensure that all the members are intrinsically motivated to perform in their respective roles (Bondarouk and Brewster 2016, p.2652). One of the ways that this can be achieved is by ensuring that there are well-coordinated teams that perform their duties effectively due to the support accorded to them by the IT structure. There should exist virtual teams and virtual operations on a voluntary basis for the employees ( Gilson et al. 2014, p.1315). For example, a company may decide to implement an IT structure that allows home-based working for the employees where they identify main the main strengths of every employee after which they are grouped together to perform specific roles through virtual coordination. This would motivate the employees to work even smarter thus improving their efficacy and consequently enhancing the quality of goods and services delivered by the organization. Also, the IT structure will enhance teamwork in the institution while saving the company from excessive expenditure that would otherwise be incurred due to the high cost of rental spaces (Grieves 2000, p.345).

The IT structure should consider the group dynamics to ensure functionality of members as a team with common goals and objectives. It should develop fair methods of measuring loyalty and productivity which is necessary for maintaining a cohesive group that will receive bonuses as they achieve their targets (Cascio and Montealegre 2016, p.352). If the IT structure fails to devise an evaluation method, the change in the IT structure will have detrimental effects and may consequently lead to the collapse of the organization.

The Effect of Change on IT Structure on Communication

Effective communication mechanisms are necessary for the alignment and integration of the organization into its goals and strategies (Yeomans and FitzPatrick 2017, p.57). An ideal IT structure should allow seamless communication between different individuals or teams of an organization to ensure efficient coordination of activities and consequently an enhanced productivity. A reliable method of communication builds on employees’ trust and a more positive working environment without uncertainties, insecurities, and cluelessness among employees which can easily demotivate the employees resulting in a drop in profitability of the organization ( Thomas and Stephens 2015, p.8).

An effective IT structure should offer solutions to communication challenges that face the organization through offering channels including emails, video conferencing, and virtual meetings among other technologically advanced methods (Yeomans and FitzPatrick 2017, p.83). These strategies simplify the communication model thus avoiding misunderstandings and ensuring that all decisions are communicated effectively without delays (Walker et al.2008, p.487). When devising the systems, the IT strategists should consider all the channels and models of communication.

Marketing Communications

The IT structure should allow the linear passage of crucial information to the customers while ensuring that the organization gets the feedback from the target clients. For example, many companies have developed a portal system where the potential clients can create a private account where they can inquire anything they desire to know about specific products (Gillet et al. 2013, p.456). The organization, on their user interface, can read and respond to the customers inquires inline. Also, some IT structure has a special messaging system that allows the customers to interact with the customer care representatives directly which increases trust and loyalty among the customers.

Non-linear Communication Model

These models are designed to ensure that all the decisions made are determined by the past experiences of the organization. If an IT structure is to be designed in a way that it will support this form of communication, it should have a strong memory where the current communication can be based on previous messages (Walker et al. 2008, p.489). This method eases the time taken to explain a concept since the representative will link all the messages to ensure timely and accurate relay of information. This method removes all the chances of errors thus enhancing accuracy and increased reliability in the production system (Dückers et al.2011, p.132).

Closed and Open Communication Systems

Closed communication strategies are critical in passing crucial information among the members of the organization ( Thomas and Stephens 2015, p.11). This is one of the most important elements of communication since the internal structures offer the primary means of communication. As such, an IT structure should have an elaborate system to pass relevant information from one body to the next (Yeomans and FitzPatrick 2017, p.76). For example, an IT structure should have distinctive channels of communication to pass information to different bodies. A structure designed for the Board of Management should strictly be used to pass information for that target group. This structure would be crucial in avoiding mix up of information which would lead to leakage of confidential information to the competitors or other cyber bullies who may use it to intimidate and compromise the integrity of the institution ( Thomas and Stephens 2015, p.10). The IT experts should consider the need to have tight security measures surrounding the confidential information passed within the institution. As such, an ideal IT structure should have distinctive security measures that have been proven to work against hackers and other forms of internet bullying.

In cases where the organization need to pass information to the external bodies, the IT structure should allow a simplistic format for all the customers to use. The solitary goal of the IT model should be to pass the information to as many people as possible ( Gilson et al. 2014, p.1318). As such, an easy-to-use model would serve the purpose adequately and boost the organization-society relationship and consequently increase the image and the business of the company ( Thomas and Stephens 2015, p.7).

Conclusion

The IT structure is a critical determinant of the performance of an organization. Its change affects different facets of the institution and thus, there should widespread consultation among all the stakeholders to determine the efficiency of a given structure before its adoption. Communication in any organization should be flawless to ensure appropriate passage of information from one individual/group to the next. If the process is erroneous, it will lead to poor coordination among different departments which will consequently result in reduced productivity among the employees. An ideal IT structure should offer elaborate communication platforms for the management, employees, and the customers. The openness created by such communication channels boost the morale of the employees since there are no mischief, mistrust, and suspicion. Additionally, the IT structure should motivate the employees to work the extra mile to achieve their goals and objectives. If the adopted IT model does not consider the needs of the workers, they will not be enthusiastic in its implementation process which will lead to its collapse. Therefore, it is necessary that the employees participate in the creation of the device to ensure their views are considered and integrated into the features of the IT system. The consultation process applies to both the individual employees as well as the team/ group employees. Conclusively, the improvement of IT structure is necessary to allow the organization to align itself with the advancement in technology which will boost its visibility and productivity.

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