INSTITUTE – University School of Business

DEPARTMENT – Management (M.B.A.)

Subject : Management Practices and Organizational Behavior
Subject Code : 22 BAT 603
Unit :1
Topic Name : Impact of technology on organizational design,
Faculty Name : Dr . Bhaskara Srinivas

DISCOVER . LEARN . EMPOWER

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 Course Objective

COB No. Title

CO1 To give an exposure to students of the individual behavior in organizations.

To enable students to combine relevant information and appraise options for the
CO2 most optimal solution so that they will be able to envisage and control human
behaviour at work and improve organizational effectiveness.

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 Practices and
Organizational
Behavior
Course Outcome
CO Title Level
Number
CO1 To understand the concepts of individual and group Remember
behavior in an organizational set up.
 

CO2 To be able to apply leadership styles to lead diverse Understand

teams in a volatile business environment settings.
 

CO3 To analyze different alternatives while taking strategic Understand

decisions for organizational growth Will be covered in
this lecture
CO4 To evaluate how organizational change and culture Understand
contribute in sustainability of an organization
CO5 To develop conflict resolution and motivational strategies Understand
to retain high performing people in the organization.
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 Learning Objectives
• Understand the meaning and nature of management.
• Identify the common challenges faced by managers in
today's dynamic business environment.
• Explore the impact of globalization on managerial
practices and strategies.
• Develop strategies for overcoming challenges related
to globalization, technology, and workforce dynamics.
• Enhance leadership and managerial skills to
effectively navigate through these challenges.

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 Content

• Impact of technology on
organizational design,
• Mechanistic vs. adaptive
structures,
• Formal vs. informal organizations

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The impact of technology on organizational design refers to how advancements
in technology influence the structure and functioning of an organization. Here
are some key points to consider

1.:Increased Efficiency: Technology allows organizations to automate tasks, streamline

processes, and improve overall operational efficiency. This may lead to changes in the
organizational structure to accommodate the integration of technology and optimize
workflow.
2.Communication and Collaboration: Technology enables improved communication
and collaboration among employees, regardless of their physical locations. Virtual teams,
online platforms, and digital tools facilitate real-time information sharing and
collaboration, potentially influencing the design of teams and departments within the
organization.
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3 Flexibility and Adaptability: Technology provides organizations with the
ability to respond quickly to changing market dynamics and customer
demands. This may require the adoption of flexible organizational structures
that can adapt to evolving technologies and market trends.

4 Decentralization: Technology empowers employees to work remotely and

access information from anywhere, reducing the need for centralized
physical offices. This can lead to a more decentralized organizational
structure, with a focus on remote work, virtual teams, and flexible work
arrangements.

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5 New Job Roles and Skills: Technological advancements often create new
job roles and skill requirements. Organizations may need to redefine job
positions, create specialized teams for technology-related functions, and
invest in upskilling employees to align with the changing technological
landscape
.
6 Data-Driven Decision Making: Technology provides access to vast
amounts of data and analytics capabilities. Organizations can leverage this
data to make informed decisions, optimize processes, and drive
performance. This may require adjustments in the organizational structure
to ensure data-driven decision-making processes are integrated effectively.
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Overall, the impact of technology on organizational design is multidimensional,
influencing the structure, processes, and capabilities of an organization.
Successful integration of technology requires careful consideration of these
factors to maximize its benefits and ensure alignment with organizational goals.

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examples
1.Automation and Robotics: The implementation of automated systems and
robotics in manufacturing industries can lead to a shift from labor-intensive
production lines to more streamlined and efficient processes. This may result in a
flatter organizational structure with fewer hierarchical levels and a greater emphasis
on cross-functional teams.
2.Virtual Teams and Remote Work: Advances in communication technology have
enabled organizations to create virtual teams that collaborate and work remotely.
This allows companies to access talent from different locations, reduce costs
associated with office space, and promote a more flexible work environment. The
organizational structure may incorporate virtual teams and provide the necessary
tools for remote collaboration.
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3 Mobile Technology and Customer Engagement: Mobile technology has
enabled organizations to engage with customers through mobile
applications, social media platforms, and personalized experiences.
Companies may establish dedicated mobile app development teams or
customer engagement teams to manage these digital touchpoints and
enhance customer satisfaction.
These examples demonstrate how technology influences the design of
organizations by shaping their structure, workflows, communication
channels, and talent requirements. Organizations must continuously
assess and adapt their organizational design to leverage the benefits of
technology effectively. 11
 Mechanistic vs. Adaptive Structures

Mechanistic Structures:
Mechanistic structures are characterized by centralized


decision-making authority and a rigid hierarchy of

command and control.
They have clearly defined roles and responsibilities,


standardized processes, and a focus on efficiency and

stability.

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 Mechanistic vs. Adaptive Structures


Decision-making is concentrated at the top of the hierarchy,
and information flows in a top-down manner.

Communication is formal and follows established channels.

Examples of organizations with mechanistic structures
include large manufacturing companies, bureaucratic
government agencies, and traditional hierarchical
organizations.

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 Examples of Mechanistic Structures:

• A large manufacturing company with a hierarchical structure,

where decision-making is concentrated at the top
management level, and information flows from top to bottom
through formal channels.
• A government agency with clear job roles and responsibilities,
standardized processes, and a centralized decision-making
system.
• A traditional bank with a strict hierarchy, where employees
have clearly defined roles and tasks, and decisions are made
by managers at different levels.

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 Adaptive Structures:

• Adaptive structures are characterized by decentralized

decision-making authority and a more flexible and organic
approach.
• They have a flatter organizational hierarchy, with empowered
teams and individuals who can make decisions and adapt to
changing circumstances.
• Roles and responsibilities may be more fluid, and employees
are encouraged to collaborate and take ownership of their
work.

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 Adaptive Structures:

• Decision-making is distributed throughout the organization,

and information flows in multiple directions.
• Communication is more informal and encourages open
dialogue and knowledge sharing.
• Examples of organizations with adaptive structures include
startups, creative industries, and companies operating in
dynamic and rapidly changing markets.

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 Examples of Adaptive Structures:

• A technology startup with a flat organizational structure,

where teams have autonomy and decision-making authority
to respond quickly to market changes.
• A creative agency where employees work in cross-functional
teams, collaborate openly, and have the flexibility to adapt
their roles and responsibilities based on project needs.
• A software development company that embraces agile
methodologies, where self-organizing teams collaborate and
make decisions collectively to deliver projects in an iterative
and adaptive manner.

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 Formal vs. Informal Organizations

Formal Organizations:
•Formal organizations have a well-defined structure,
established rules and procedures, and official systems of
authority.
•They have clear lines of authority, hierarchical reporting
relationships, and standardized processes.
•Communication follows formal channels, such as official
meetings, reports, and memos.
•Relationships are based on designated roles and positions
within the organization.

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 Examples of Formal Organizations:

• Examples of formal organizations include corporations,

government agencies, educational institutions, and large non-
profit organizations.
• A multinational corporation with departments, divisions, and
a clear chain of command, where communication follows
established protocols and procedures.
• A university with various departments and administrative
units, where decision-making is guided by formal policies and
processes.
• A government ministry with defined roles, hierarchies, and
bureaucratic structures, where decisions are made based on
legal and regulatory frameworks.
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 Informal Organizations:

•  Informal organizations exist within formal organizations and

emerge through social interactions among employees.
• They are characterized by unofficial networks, social
relationships, and informal communication channels.
• Informal organizations can influence decision-making,
information sharing, and the overall culture of the workplace.
• Relationships are based on personal connections, shared
interests, and informal influence.
• Examples of informal organizations include employee social
groups, informal mentorship networks, and friendship-based
networks within the workplace.
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 Informal Organizations:

• Examples of Informal Organizations:

• A workplace where employees form informal social groups,
such as lunch clubs or hobby-based interest groups, that
contribute to a supportive and collaborative work
environment.
• An organization where employees build informal mentorship
relationships, seeking guidance and advice from experienced
colleagues outside of their official reporting lines.
• A company where informal communication networks, like
informal gatherings or online communities, play a significant
role in knowledge sharing and fostering innovation among
employees. 
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 Informal Organizations:

• It's important to note that many organizations have

elements of both mechanistic and adaptive structures,
as well as formal and informal elements. The specific
organizational design depends on various factors such as
industry, size, culture, and strategic goals. Organizations
may also evolve and adapt their structures over time in
response to internal and external factors.

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Summary of the Topic

• The impact of technology on organizational design is

examined through mechanistic and adaptive
structures. Formal and informal organizations are also
discussed, highlighting their influence on
communication, decision-making, and employee
behavior within the organization.

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 References
Books • Durai, P. (2015). Principles of Management, Text and Cases. New
Delhi: Pearson Education.
• Koontz, H. (2010). Essentials of Management. New Delhi: Tata
McGraw-Hill Education.
• Stoner, Freeman & Gilbert Jr. (2009). Management. New Delhi:
Prentice Hall.
• Weihrich, H. & Koontz, H. (2010). Management- A Global
Perspective: New Delhi: Tata McGraw-Hill Education.
Websites • https://www.preservearticles.com/
• https://www.yourarticlelibrary.com/

Video https://www.youtube.com/watch?v=jzpF4cOYiiM
Link https://www.youtube.com/watch?v=-XZ1poxYt84&t=15s 24
 Assessment Pattern
Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks

Max. Marks 10 10 6 4 4 4 2 40

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 THANK YOU

For queries you can reach me on Email:

bhaskara.e11372cumail.in

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