The Impact of Technology on Organisations Structure and Strategy - Essay Example

1. Explain the variety of perspectives which are used to theorise the nature of technology and explain the impact of technology on organisations' structure and strategy. In the broadest sense, technology refers to tools and machines that may be used to help solve problems. The turning point of human technology began at the discovery of fire, used as a tool to provide heat and better food. To contact a person, you can try for his office line, not in Call the mobile phone, busy Try the e-mail, which he could later excess with his computer or palm top, want to make sure again Try short text messaging. If he still unavailable, chances are, he's avoiding you. Try checking his finance profile on the net. Technology had also been referred to as a technique, one used to solve matter through a combination of different sources to achieve a desired result. To achieve this technique, one must not only know how to push a button to obtain the desired result, but to have the technical know-how to accomplish one's goal. Example of such technology includes medical technology, construction technology and computer technology. Human being relies on technology not only as tools and a means to an end. It forms the very basis of our humanity. Imagine a world with no writing, no music and no spoken word. These three elements are the vary backbone of human communication, how we differentiate each other, how we develop culturally and how we can tell just by listening to a person, could tell whether he's French or English. The art of writing is a technology developed to record events, speech to communicate, and music for expression of the soul. With the new age technology, arrival of video cameras, computers and the rapid development of various computer softwares produces a leaner organisational structure. Less people are needed as the more mundane and repetitive works are replaced with technology. Security guards' job are taken over by video cameras, computers keeping the numbers of accountants to the minimum and robotics replacing the slicing, cutting and assembling part of factory jobs en masse. Thus, technology is viewed with suspicion by some, particularly senior labour workers, who are afraid of being made obsolete by science. Despite all the misgivings that existed, technology continues to sweep into the business world, with the most notable of all conquerors being mobile phones. It is almost impossible to imagine a businessman or woman to function without one or two of these handy little gadgets. Information is the key medium of business making process these days. It isn't unusual to find mobile phones with added features of being a palm top, a planner with GPRS and internet system on top of the conventional phone uses. After the initial staff trimming, the next thing an organisation could expect is growth. With sheer availability of ICT (Information and Technology) devices, growth of a company is made easier. It would a simple matter to schedule meetings by calling up everyone involved for the nearest available time, then informing the time, date and venue. Unexpected changes or results could be relayed quickly through short text messaging and lengthy reports via e-mail attaches. A quick call to the head office, the supplier and you will have the best possible presentation for your client. All these information boils down to one very important factor for the corporation. Global access. With the emergence of these technologies, small companies are equipped with the necessary weapons to challenge the global market. Smaller company's has the advantage of being more flexible, able to tailor their goods and services to the client's needs. With such lucrative market at hand, company's strategies, especially those on the manufacturing and dealer's side, could focus on getting their product into the market directly through the internet, bypassing the middle man, thereby generating more income. Strategy could centre round such factor as webpage building and maintenance, hiring computer savvy personnel, and creating a product that is small enough to be sent through the post if the company isn't financially prepared to hire an entire shipping crew. 1. Explain the variety of perspectives which are used to theorise the nature of technology and explain the impact of technology on organisations' structure and strategy. There are many theories of technology, the most prominent one being technology as science, one that is used to built machines and computers and all the manner of electronic and mechanical inventions that are used to improve the lives of human beings. There are some that liken technology to advances in human races, writing, speech, music and problem skills are some of them. How technology affects the business world is a matter of great import. As was shown in a study of neoclassical economics, as long as there are advances in technology, growth is almost inevitable. This is because technology creates opportunities for new businesses to grow, and gives birth to new need which could be exploited for profit. Observe the mobile phone business; twenty years ago the first mobile appeared as a bulky little brief case, complete with its cord, cradle and grips. It comes in one colour, black. To have one on you is the ultimate image of a successful businessman. Of course, no one bother mention that this nifty little gadget comes with a whole lot if inconveniences, dead or dying batteries, static induced sound, one type only ring tone, where one ring would cause a roomful of business people reaching for their respective mobile. Now, twenty years later, no one would be caught dead with one, unless you are an antique dealer specializing on telephone history. With super cool designs, colour screens, GPS system, digital camera functions and not forgetting a million different types of ring tones, all of which could be bought at a fraction of the hulking piece of contraption they called mobile phone of 1980s. To further emphasize how this technology change the way of making money, we need only to look at the most famous reality TV shows of our lifetime. The American Idol. How many people actually voted for their favourite idol in the show Be honest, assuming there are 298,772,903 people in America, that only 50% voted for the show. That would be 150 million people voting. Assuming the phone company earns 10 cents for every sms (short text messaging), and the show earns 5 cents. That would be about 15 billion for every voting stage, and since some people vote more than once, do the math and we have the reason why one is being held every year. On the manufacturing side robotics, process control and material processing technology are used to produce more efficient labour productivity. Allowing the company to plan for growth and utilize the profit generated to purchase more technologically advance equipments. Where a company once employed architects and designers at a high price to create new products and services, with Computer Aided Designs (CAD), the company could send its more creative staffs for computing lessons and have them design for the company instead. Saving costs and generates ideas for their own use. Advances of technology create opportunities because it gives primary users an edge over those who had missed the boat. With the current onslaught of new technology kept popping up every couple of years, opportunity for profit keeps on changing, coffee shops now come equipped with computers and internet access, businesses specializing in mobile phone accessories cropped up like mushrooms after a rain and electronic massage equipments are all the rage nowadays replacing the X2000 exercise machines. The evolution of information is rapidly changing too, people expect you to know that graphic cards are not cards at all, and tell the difference between software and driver, or how a driver has nothing to do with cars at all. With the changing of technology, management lines are blurred, organisations restructured. Lowly clerks became the company's most important graphic designer, long time workers became obsolete over lack of computer skills and a will to learn. It is a chance for new blood to shine, and a smart executive would do his best to keep abreast with the world's changing technological trends lest be replaced by someone more qualified. It is unwise to use an old structure to support new strategies, if a company plans to obtain growth and create a bigger market for its business. It would need to utilize technologies to its advantage. That means investing on new machineries, replacing some staff on the manufacturing side, send key staff for training and encourage feedback from sales advisors, cashiers and people who dealt directly with customers. It would be folly for the company to stick to its old structure of keeping everyone under control and not giving into change. Just because a particular structure works ten or even five years ago, does not meant it would work now. Gone were the days where the boss keeps a tight watch over his employees. Nowadays managers use a job system, keeping the bills and the cash separated, grant certain authority to certain key people and place them in charge of different sections of the job. As a company grows, so will the structure, adding layers until the next technological advance crash in and forces a restructuring again. 2. How to build and maintain an ethical organisational culture. Appreciate how differences in national culture affect the culture of organisations. In order to build and maintain an organisational culture, we must first identify what are the existing cultures involved. As a rule, senior staffing and long time workers are the ones with the most power over working environments. When an organisation comes under new management, a cloud of unease usually settles on the staff. To overcome future problems, the manager must first convince those with the social control to embrace a new way of working before enforcing it onto the general staffs. Positive role models are perhaps the best way of convincing others to embrace a new culture. For people to follow a new culture, it should first be similar to their national culture. You should not expect an American to be motivated by speeches of honour and loyalty to the company. They would most likely be turned off by lengthy speeches as time is literally money to them. On the other hand, Japanese are known for staying with one company for majority of their lives, therefore loyalty is probably the best medium to introduce a sensitive subject such as a cultural change. To observe how national culture affects the culture of an organisation, we need only to make a comparison between two of the world biggest economical power houses, US and Japan. Both are formidable competitors of the global market field, yet practices vastly different organisation cultural. Both countries are a success driven lot, with many achievement tucked in their belts. Japan's culture of professionals could be summed up by the people behind the Akashi Kaikyo Bridge, the longest bridge in Japan. Constructed on an earthquake prone sea, against 80 m/s wind and tidal waves of 4.5 m per second, it is a dangerous job indeed. Which makes their world class safety record (6 injuries and no deaths during the 10 year construction), even more miraculous. It shows the world a hint of that meticulous attention and care for detail and safety employed by the people of Japan. As any students of Business Studies should know, the JIT (Just in Time) system or Kaizen as was known in Japan is most widely practiced in Japan. Although the idea was developed outside Japan, it fits in well with the Japanese's thrifty and perfectionist disposition. Tradition is still very much part of Japan, it is a normal sight to see people bowing to each other instead of shaking hands. In addition to being a normal cultural tradition, it is a way of respecting each other's personal space. Sexual equality is also practiced in Japan, though women are generally encouraged to get married and leave the company, their places in a corporate setting is reasonably assured. In the US, money is the deciding factor for many things, and for years, had practiced a 'bigger is better' attitude, the biggest project, the biggest house, the biggest slice of the financial cake. What sets US apart from other countries is The American Dream. US is famous for its mobile class system, it is believed that if you work hard enough, want it badly enough, you can break the poverty line into the upper class earning section. However, the American Dream could also backfire on a person, reducing a rich man to poverty in an instance. Independence is highly regarded in America, so is the freedom of speech. Therefore Americans are very blunt people who will not hesitate to say 'no' into your face. Decisions are made quickly this way as they have no difficulty making their wishes known, either your goals coincides with theirs, or they would take their business elsewhere. Being highly competitive in both work and leisure, they have no trouble working together when the situation compels it. 3. The reciprocal relationship between organisation strategy and organisation structure. Examples about how corporate strategies specify the major structural features needed by the company to support it. Types of organisation structure reflect the type of control the top management has on the company. A tall structure, one with multiple levels of hierarchy usually reflects a tight control, where employees are closely monitored and given directions of what to do, when to do it and how to do the job. This type of structure is almost inevitable with very large corporations, where work is specialized and employees are separated into different offices according to the type of work done. Organisations which require this type of control are usually government offices. Control is essential to help direct the construction workers, environmentalists and government staff to work in the general direction of the country's goal. The second type of organisation is the flat level type, with wide span of control. The manager may have around 50 to 200 personnel reporting to him; naturally it would be difficult to supervise such a large number of staffs. This type of structure allows the staff to work with minimal supervision and make certain authorised decisions without prior need to inform the management. An example of this type of business is the direct sales agency, where agents dealt directly with the customers, decide how much product to stock and what type, and report the sales figure or place a new order with the dealers involved. Another type of business utilizing this type of structure is insurance agencies. Before deciding on the type of organisational structure, the company should establish the type of business it is in. For businesses that require the staff to exercise decision making and initiative, a loose, flat organisation with wide span of control would be more suitable. The best example of this type of structure is probably the 3M Company which is built on the strategy of creating a diversity of product under a single brand name, encouraging new inventions and nurturing an enthusiastic and creative staff force. The wide structure also allows 3M to expand quickly at international level with products and service available in US, Japan, Brazil, Germany and China just to name a few. The tall and narrow span of control is decidedly unpopular on paper as it generally meant slow or late decision making. Although many large companies would probably agree that this is the best way of monitoring their staff, by making each level of management responsible for the one below them, and the lower management o report directly to the manager above them, effectively forcing them to keep an eye on each other. One may argue that its inevitable bureaucracy character may soon be a thing of an end with increasingly sophisticated ICT tools. With the form of control it offers, this type of structure is possibly the best type in tackling new and difficult projects with inexperience staff. The top managements may have their goals and the specific strategy to reach it. Banks are possibly the best example for this type of structure; a tight control is certainly needed, in addition to specific jobs, each management are accountable for each other. Making it easier to discover fraud when it happens. Volti's, Society and Technological Change, 3rd ed., St. Martin's Press, 1995 Gillespie, Andrew AS Level Business Studies Wikipedia - The Free Encyclopaedia, Technology (http://en.wikipedia.org/wiki/Technology#Technology_as_technique) Cultural definition (http://www.tamu.edu/classes/cosc/choudhury/culture.html) Cooper, James D. World's Longest Suspension Bridge Opens in Japan (http://www.tfhrc.gov/pubrds/julaug98/worlds.htm) Working Etiquette and Employment Trends in the United States (http://www-rohan.sdsu.edu/aiesec/culture/usculture.html) 3M Worldwide (http://www.3m.com/) Read More