The size of an organisation affects the degree of
Hierarchical & tall structures - used for large multi-site operations such as supermarket chains. Advantage - responsibility and promotion path is clearly defined, the environment encourages the use of specialist managers and employees can develop a loyalty to their department. Disadvantages - the high degree of bureaucracy means there is a slow response to changing customer needs, communication across sections can be poor and departments can make decisions that benefit only them.
Flat structure organisation - will have only few or one layer of management. The chain of command is short so there is good communication and response. Advantages - more communication which leads to better team spirit, less bureaucracy so faster and easier decision making and fewer management means lower costs. Disadvantages - workers may have more than one manager, system may limit growth and function of each person could be blurred.
Matrix organisation - are used to develop new products and services. Advantages - individuals can be chosen according to the requirements of the projects and project managers are directly responsible for completing the project within a specific time and budget. Disadvantages - conflict of loyalty between org and line manager over resources, project progress hard to monitor and costs can be increased by additional managers.
Centralised and decentralised organisation
An ICT strategy should match the long-term aims of
- Whatever the organisation structure, there are three levels of personnel: strategic such as CEO and directors, tactical such as middle management and operational such as production workers.
- A formal strategy should include: strategy which is a plan or method of approach to successfully achieve an overall goal or objective. Policy which refers to a definite course of action which is used to promote the desired results. Tactics which involve the detail and order of how to achieve the desired results.
Contribution of ICT management to business strateg
- The role of the Chief Information Officer is to manage ICT budget, data security, provide leadership for teams of ICT professionals and provide ICT services for users.
- The CIO should ensure that the introduction of technology is based on the following features: the technology should be used for sufficient time to make savings or gains from the purchase, the technology should improve internal operations and make the organisation more efficient, the CIO should be looking at ways in which technology can create new services and should forecast how technology will change competition and adapt the business to this.