The Organized Human Activity Under the Structure of Organization - Research Paper Example

Any organized human activity, which is done in-group, will be most times constituted into an organization. So, organization is a structure with a ‘collage’ of humans doing their allocated work under the management of a leader, for the benefit of the organization as well as them. These employees will normally be apportioned or “structurized” into different departments for better arrangement and streamlining of work. Normally employees will be assigned different roles by the management, according to their educational qualifications, experience, skill, knowledge, etc. When the management team and the employees work together, they will be aided by various tools, including technological tools Through the years, many technological products and services particularly Information Technology (IT) tools had and are currently having optimum applications and uses in maximum spheres of human lives. These technological products and importantly IT products and services are being used in many organizations or business. Organizations all over the world have incorporated IT in every aspect of their functioning. From carrying out simple operations to high level advanced operations, IT and its related products has become a ubiquitous entity in organizations. “It is largely discussed in the literature that IT role in organisations can vary from simple administrative support to a strategic position (Henderson and Venkatraman qtd in Laurindo and Moraes 2006). This is quite visible in pan-national organizations like World Bank. World Bank, as the name suggests, has operations throughout the world and to handle its extensive operations, Information technology has been incorporated in to its functioning, with the scope to integrate more. So, this paper will focus on World Bank , analyzing how IT is being used in World Bank for strategic collaboration between business (or branches) using Parker, Benson and Trainor’s benefits analysis and will also recommend additional solutions to the problems faced by World Bank. To analyze this perspective of World Bank operations, Parker et. al approaches towards IT/IS integration in an organization need to be focused. In the 1980’s Marilyn M. Parker, Robert J. Benson and HE Trainor developed the concept of Information Economics (IE) model, which attempts to assess the ways in which information and systems benefits accrue and how they can be quantified to help in justifying investments (Ward, Griffiths and Whitmore, 1993). IE applies a IT based decision framework that separates as well as merges the business justifications for the application of IT and the relevant proposed justifications. Parker et. al (1992) came up with three main application types namely, the Financial domain, Business domain and Technological domain, to analyze the potential of IT inclusion in an organization. To summarize, the total evaluation of the IS/IT investments proposal takes place in three steps, covering financial, business and technological criteria, both positive and negative. (). In this case of World Bank, to actualize a financial smooth flow, and to actualize its business outlook, the technological aspect of IT is being incorporated. About World Bank World Bank was owned, financed and run by 184 member countries. It is the world’s largest provider of financial assistance for many developmental activities that are being carried out throughout the world, specifically in Third World countries. “…Bank supported efforts including building schools and health centers, providing water and electricity, helping to create a better investment climate and more efficient public sector” (Applegate et. al 2003). Through these initiatives, World Bank has become a significant partner with member countries, to eradicate poverty, by helping people to help themselves. That is, in line with Parker’s financial domain, World Bank by providing financial resources, sharing knowledge and through other steps, it tries to elevate the standard of living of the people. When it comes to low-income countries, World Bank gives them interest-free loans and importantly gives them around 35-40 years to repay the loans, with a 10 year grace period as well. Under the aegis of World Bank, there are many specialized agencies focusing on specific aspects of developmental assistance like IBRD, IDA, etc. The term, “World Bank Group” encompasses five institutions. The term “World Bank” refers specifically to two: IBRD and IDA. Apart from developmental assistance, World Bank’s ‘radar’ covered many social problems like the AIDS problem. And to combat it, the Bank has provided more than $1.6 billion in the last few years. So, with this much functionality from the perspective of finances, World Bank has to have a sound, foolproof and efficient operations management, to avoid any problems. That is, World Bank is an omnipresent organization with businesses and branches all over the world and importantly the Bank is funding all the above mentioned projects from building schools to combating AIDS. So, as its operations are very extensive, it has to collaborate with all its branches and interests to achieve success. So, here the Parker et. al domain of finances and business tries to merge and that merger can be facilitated by the technological domain. That is, this is where IT comes into the scenario, as it helps to achieve certain issues or problems faced by World Bank. In today's environment, information and technology have become a critical component of successful businesses and organisations (Avison, 2003). Most of the organisations are now relying upon the information systems in their day-to-day operations, management decisions and other business activities and World Bank tried it optimally. IT implementation Issues and Problems In the early part of 2000’s, World Bank and particularly its President James Wolfensohn set two main objectives to optimize its performance. The two objectives, which it wants to achieve, are decentralization and creation of a knowledge Bank. To achieve these objectives, World Bank has to incorporate Information technology into its functioning and so Wolfensohn put the responsibility on the Chief Information Officer, Mohamed Muhsin. “Wolfensohn turned to his newly appointed CIO, Muhsin and told him to revamp the information systems and build a global network.” (Applegate et. al 2003). Muhsin only oversaw the development and implementation of IT based strategies and services in World Bank’s operations. So, he was asked to formulate and implement strategies based on Information technology to decentralize the operations in a more effective way and to create a useful knowledge bank. That is, to achieve the objective of decentralization and knowledge bank and thereby fulfill its financial commitments, an alignment between business and IT has to take place and to aid that alignment, strategies was first formulated. For that to happen, strategic integration or alignment has to take place first, before business and IT integration is actualized or takes place. For the strategies and the operations to integrate and align, the basic business strategies related to the organization have to be formulated first. That is, after formulating the business strategy only, the IT strategy can be associated with it. In order to plan or associate IT based strategies, four important factors should be considered (i) business strategy; (ii) IT Strategy; (iii) organizational infrastructure and processes; (iv) infrastructure of information systems and processes. The basic premise of the Strategic Alignment Model is that an effective IT requires a balance between the decisions in all these four factors (Laurindo and Moraes). Among these factors, business strategies have to be firstly formulated and in the case of World Bank, its main business strategy is to decentralize its operations to fulfill maximum financial commitments and at the same time strengthen its knowledge bank. Decentralization in the sense, the World Bank wants its business operations to be made little closer to the clients, who want financial resources in a quick and importantly apt time. For that, it wants the decision making process regarding the awarding of loans and other financial resources to be decentralized or given to the branch offices in more than 100 client countries. If the branch offices are decentralized and provided the collaborative tools, it would help the far-flung Bank staff and other stakeholders work more closely and effectively with the local clients in providing the needed loans. Thus, to fulfill Parker et. al (1992) domain of finances, certain business strategies has to be put in place so that World Banks main financial duty is fulfilled. Even while decentralizing its operations; World Bank needs constant communication with those branches offices and its staff, to ensure smooth flow of instructions and completion of given work, thereby apt management of business. This is the main business strategy World Bank and James Wolfensohn wanted to implement and to effectively implement this strategy, the IT based products or services has to aligned or incorporated with it. “Efficiency is associated to the use of resources, while effectiveness is associated to achieving goals and objectives and with requirements satisfaction” (Laurindo and Moraes). So, as espoused by Parker et. al (1992) information economics model, all three domains of finance, business and technology seems to have converged regarding World Bank’s world wide operations. The World Bank also formulated another business strategy relating to the creation of a knowledge bank. That is, the Bank wanted to integrate the various solutions or plans that may be formulated by the Banks’ staffs or management at different countries, for a specific problem. If different and successfully ‘assembled’ solutions or plans are integrated in the form of a knowledge bank and made easily accessible, it can be accessed by the branches or staffs any where, who might face similar kind of problem. These branches and staffs can use those solutions for their problems, which may happen in their country or in their locality. So, this business strategy of forming a knowledge Bank by collecting, integrating, consulting, collaborating, etc, will aid World Bank to actualize many successful projects all over the world. But, all the successful solutions and plans in both the written or in digital form cannot be accessed by the people, who may need it, without a channel. So, here again, IT functions has the channel and can be used to collect and integrate all the solutions and plans, as form of knowledge bank. Then can also be used to help the people to access it, without traveling any physical distances. Thus, IT strategy aligns with the business strategy of knowledge bank. That is, as mentioned before, the Parker’s et. al (1992) mainly focuses on the alignment of business strategy and IT strategy and in the case of World Bank, this model gets clearly fulfilled because both its business strategies needs IT products and services. As decentralization and creation of knowledge bank needs IT, it can be clearly assumed that an alignment has successfully taken place between business and IT. In the case of World Bank, its objective of decentralization and knowledge bank creation can be achieved by slightly modifying its processes particularly in relation to its hierarchy. That is, World Bank has to reorganize its hierarchical structure or processes, so that the top level managements’ powers are reduced and the staffs working in branches are organized primarily around regional geography. It that is done, a matrix of networks and regions will be formed, which will aid in achieving the objective of decentralization and knowledge creation (and also sharing). Importantly, the alignment of IT to business can be effectively actualized, if the infrastructure of information systems and processes is developed and optimized. That is, all the IT products have to develop a sound physical as well as virtual infrastructure. In the case of World Bank, this aspect was being taken care and thereby aiding in the achievement of the two objectives. That is, as mentioned above decentralization and knowledge bank can be actualized only if IT is incorporated into its functioning. To incorporate IT, IT related products have to be used to create a structure. Robust information management architecture was created to provide a solid foundation for the next generation of web services and portal applications (Applegate et. al 2003). Then as part of changing IT infrastructure, World Bank was able to provide videoconferencing services to country staff and clients from 110 country offices and other centers. Along with this service, World Bank also used geostationary satellites to optimize its IT infrastructure and thereby aid in the achievement of the two objectives. World Bank to achieve this objective even more optimally has to align IT into its functioning in an even more optimal manner. So according to Henderson and Parker et. al model or theories, this alignment can take place with the formulation of business strategy, followed by changes in the organizations and IT infrastructure. So, World Bank was able to achieve that alignment by making the necessary changes to its infrastructures. But, even while achieving its alignment and the resultant objectives, World Bank can improve further and for that World Bank can think of new and innovative ways to increase the leverage of IT. Recommendations As part of merging of the three application types or domains of finance, business and importantly technology, IT based products can be used inside World Bank. “The dynamic evolution of enterprises’ business, driven by new technologies, competitive pressures, regulatory changes and other factors, demand immediate IT support” (Plazaola et. al 2007). Among the many IT tools that can be implemented in the effective management of World Bank’s communication structure and thereby achieve its two objectives, VoIP and MPLS can be optimally useful. VoIP or Voice over Internet Protocol is a method which can be used to make long-distance phone calls with internet as the connecting and transferring medium. . “…is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular (or analog) phone line” (Federal Communications Commission). That is, internet will function as the transferring medium by transferring voice from computers to phones, computers to computers and vice versa. As operations of global companies are widespread, transfer of voice signals and data has to be handled in a combined format, to actualize the formation of virtual self-managed teams. This need can be easily fulfilled by VoIP. Transfer of combined format can be done through VoIP by compressing the voice signal to minimum levels. “…network configuration will benefit if the voice traffic is compressed as a result of the low bandwidth available for this access application” (International Engineering Consortium). So, optimum voice and data transfer including video conferencing facility between company’s headquarters and the branch offices will be possible. The other fact is usage of cellular or mobile phones are also on the rise among salespersons in various organizations. VoIP will be able to aid organizations in this aspect as well. MPLS or Multi protocol Label Switching is another IT based technology which has the ability to speed up the ‘traffic flow’ in the complicated maze of computer networks. It can actually fasten the transfer of these combined materials by labeling it, which can result in smooth communication between the management and the teams at various parts of the world. As all the important strategies will be taken at company’s headquarters, it has to be communicated to the self managed teams for them to perform and succeed as a team. For that, a constant, fast and secured communication or transfer should be maintained between it and its branch offices. For that the security aspect has to be taken care. Security aspect because if any pilferage or hacking happens it will lead to tremendous loss both research wise as well as profit wise to organizations. As MPLS circuits are not Internet circuits, security can be guaranteed. That is, even though MPLS networks work with internet, they are of secluded and privatized nature with a private IP address. “While these circuits usually ride the same backbone as the carrier's Internet traffic, they aren't public circuits, and they have a private IP address” (Davis, 2006). Also, the quality of communication can also be enhanced with MPLS because of its flexibility and ability to correct common but damaging network problems. With the World Banks’ operations having a widespread presence, the IT product of VoIP can be incorporated into the business strategy and to provide voice based communication through internet. Henderson and Venkatraman (1999) state, that inability to realise value from IT investments is in part due to lack of alignment between business and IT strategies of organisations (Bricknall et. al. 2007). Transfer of combined format including voice signals and also data can also be done through VoIP. “…network configuration will benefit if the voice traffic is compressed as a result of the low bandwidth available for this access application” (International Engineering Consortium). So, effective voice and data transfer with optimized video conferencing facility between World Bank’s headquarters or head offices and the branch offices will be possible, thereby actualizing good communication and decentralization at lower costs. Likewise, MPLS technology can help by providing the setup for the safe and fast transfers. Although MPLS networks work integrating with internet, they are of ‘privatized’ nature with a private IP address, thereby providing security. “While these circuits usually ride the same backbone as the carrier's Internet traffic, they aren't public circuits, and they have a private IP address” (Davis, 2006). “IT is still critically important in today’s business world in terms of organisational efficiency and effectiveness and business competitiveness. Today’s businesses could not survive, let alone compete without appropriately well designed and well implemented IT systems” (Marshall et. al 2007). So, these two technologies are viable options that can be implemented in World Bank’s operations along with the existing IT structures to further optimize its two objectives of decentralization (thereby improving further collaboration) and knowledge bank. Conclusion The organized human activity under the structure of organization has to be carried out with precision, for it to succeed. But, precision in organizing or planning cannot be done without the initiatives and the fullest co-operation of the motivated and hard working employees. This unison of many employees a under single organization to reach a target can always be aided by technology, importantly information technology. The information technology and its related products can be used optimally to optimize the functioning of the organization like the case with World Bank. When IT/IS integration or incorporation happens in various or maximum segments of its operations, it can result in good productivity. If all the parts of an organization conduct this way, they can be fully utilized to have ubiquitous presence all over the world for the organization Reference: Applegate, LM, Austin, RD and McFarlan, FW 2003, Corporate information, strategy and management, McGraw-Hill Irwin, New York. Avison D. 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