Transborder Data Flow
401). The information environment in which organizations must function is changing. In turn, these changes demand changes in organizational structure and relationships. Thomas Malone and John Rockart (1991, pp. 128-136) argued that the advent of intensive computer networking in the corporate business setting will transform the internal structure and functioning of business organizations, and will fundamentally alter the way such organizations interact with their external environments. The authors postulated that such transformation will occur through a hierarchy of effects resulting from the implementation of computer network technology.

The first-order effect in the effects hierarchy is the substitution of information technology for human coordination. An increased use of coordination is the second-order effect, while the third-order effect is a shift in organizational structure to one that is coordination-intensive.

Within the contemporary environment, a firm's success in the global economy is dependent upon the effective use of information technology (King and Sethi, 1993, p. 53). In the 1990s, a widely held view is that an organization's long-term interests are best served through global strategies (Doktor and Lie, 1991, pp. 125- 133).

 

Daft (1992, p. 142) held that the organic organizational structure is associated with change and that such a structure is preferable when functioning within a dynamic external environment. Another widely held contention is that innovation is fostered by an organic organizational structure, while innovation tends to be stifled by a mechanistic organizational structure. A phenomenon also observed, however, is that while organic structures tend to foster innovation they are often somewhat ineffective for the implementation of that innovation. In such instances, suggestions have been made for the adoption of a composite organizational structure that incorporates characteristics of both the organic and the mechanistic organizational concepts. This ambidextrous organizational structure would permit a shifting emphasis as required by a changing situation. The different level of emphasis on structural characteristics for innovation and implementation are presented in Exhibit 2, which may be found below on this page.

--------------------- -------------------- --------------------

Formalization Low High

1. Organizations functioning within a stable external environment typically had formal internal organizational structures with clearly established and observed operating procedures and rules, and a well defined hierarchy of authority. Within such organizations, decision making was typically top-down in character. This type of internal organizational structure was termed mechanistic in character.

Task definition Rigid Adjustable and redefinable through

Organizational integration refers to the quality of collaboration between organizational subunits. Dynamic environments and organic organizational structures tend to cause communications between organizational subunits to become more difficult and uncertain. Daft (1992, p. 143) sug

 
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    Some topics in this essay  
 
    Bartlett Ghoshal | Mechanistic Low | Waples Norris | Vertical Horizontal | Federal Express | John Rockart | COMPANIES Introduction | King Sethi | organizational structure | Mechanistic Organic | Information Transborder | information systems | data flow | 1992 pp | transborder data flow | organic organizational | daft 1992 | organizational structures | transborder data | external environment | mechanistic organic | ghoshal 1992 pp | organic organizational structures | bartlett ghoshal 1992 | dynamic external environment |  
   
 
 
 
   
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