IT management can be defined as a practice or a policy that is primarily used for managing different types of information technology for any kind of business environment. Information technology has become one of the inseparable parts for rendering the success of a business organization. In order to maintain a co-ordination between the employers and employees, organizations have to follow an organizational structure. Some of the most important organizational structures used by most of the well-known companies include Divisional, Flat Matrix, Hierarchy, Project based and so on. Cognizant Technology Solution, IBM, B2M Solution have been considered as one of the most popular IT companies occupying a predominant place in the realm of information technology industry. IT management has become an inevitable part for every business organization in order to provide an effective service to the customers. Business organizations within their IT department like to maintain Matrix organizational structure for making a coherence with the employees.
As defined by Awadh & Alyahya, (2013), IT management is not about mere installing and maintaining technology. The essence of IT management has its greater significance. IT management implies to use the technology in such a way that both the service providers and service users become facilitated and benefited for it. The primary responsibility of the IT users is not only to use information technology within the business process but also to train the stakeholders for making the best use of information technology both inside and outside of the organization. Therefore, this particular study has focused to highlight which particular structure of IT management has been followed by most of the predominating IT organization. The role of organizational structure for the success of a company has also been pointed out in this particular study.
In order to maintain an effective profit making planning business organizations have to maintain some of the major factors (Chen, Chiang & Storey, 2012). These factors include accurate data analysis, maintaining effective communication with the employees, keeping a constant record about the performance of employees, maintaining accurate financial calculation and so on. Information technology is the only way with the help of which the business experts can keep a constant record on the above mentioned factors. The impact of using IT management within the process of business is possessed with both positive and its negative impacts (Enqvist, Graham & Nikkinen, 2014). Organizational structure is highly important in order to maintain coherence within the business process of an organization.
Matrix organization structure does not like to follow traditional model like Hierarchy and Flat. IT managers would be able to take an effective as well as quick decision if they tend to follow this particular structure within their department. With this specific structure employees have to play dual role in order to deal with the customers effectively. They have to work both as a functional and as a product manager in Matrix. Matrix structure is possessed with some of the major advantages and disadvantages. Organization like Caterpillar tends to follow Matrix structure within the IT management. Some of the advantages of implementing matrix structure with the IT management are as follows:
Appropriate decision-making is the heart of business growth and success. A particular business organization would be able to make an appropriate decision at the right time only when the managers are having sufficient data and information. In matrix structure, employees are divided into small groups based on which they are able to take an effective decision at the right time. The chief executive officer of a particular organization divides two or three functional managers for a specific business organization. Under three functional managers few staffs are recruited to handle data and information. Information technology is the only reliable source that can provide appropriate data and information regarding the business goal. At present era, Google Analytics and Microsoft CRM Dynamics, Big data are the major tools to provide necessary information to the business experts (Fos & Knudsen, 2013). In the matrix structure, the IT experts play as the major role of functional by maintaining the productivity. Under the direction of functional managers, the employees of IT division like to keep a constant record on the performance of the employees (Garrigos-Simon et al. 2012). The advancement of technology helps business managers for taking a suitable decision within the stipulated period.
Hoogendoorn, Oosterbeek & Van Praag, (2013) stated that before launching the Eat Happy Project by TESCO, the marketing executives of this organization decided to conduct a market survey in order to collect an accumulated feedback from the target audience. The marketing executives collected the feedback from the target customers by utilizing the popularity of public forum (Kaplan & Mikes, 2012). By maintaining the matrix structure, the functional managers have divided the employees into small groups. Some of the employees were responsible for collecting feedback from the customers for launching Eat Happy Project in various schools of UK. Without the assistance of information technology, this company would never be able to launch Eat Happy Project for the wellbeing of children.
Matrix structure within IT management renders business growth. In order to promote the products and services, one single group of IT department tends to use the popularity of both electronic and digital media (Lo, Yeung & Cheng, 2012). The use of media has a greater impact on both the organization and the customers. On one hand, organizations are able to reach their brand to the various geographical boundaries in order to draw the attention of international customers. On the other hand, customers as well can get detailed information regarding the reliability of a particular product by visiting various online websites and public forums (Mok, Sparks & Kadampully, 2013).
For an example, marketing distribution plan and promotional activities of IBM are completed based on digital media. As a result, after starting their journey in Australia, this particular organization has launched their entire business process to various countries. More than 28 million customers are intending to use the service and product of this organization in each country. The functional managers by following the matrix structure are deciding to spread their entire business process to the international market. Information technology has left an immense contribution for the business development of this particular organization (Papadopoulos & Heslop, 2014).
At the same time, matrix structure within IT management is not devoid of some of its negative impacts as well. Employees by following this particular structure have been divided into small groups. As a result, people have to face communication barrier. Functional managers have to face difficulties to maintain the unity inside the team members. In addition, The rhythmic flow of business hampers immensely due to any kind of technological error. The managers would not be able o communicate with the employees if the data or performance record of the employees is demolished due to technological crisis (Rasula, Vuksic & Stemberger, 2012). In this kind of situation, IT management has to face innumerable difficulties to overcome all the barriers.
In order to follow matrix structure, the IT managers should be very much concerned on some of its major factors as well. The managers have to be concerned about the IT security for making their data and information confidential. While implementing IT management within the process of business, the business organization should follow some of the most important regulations and acts inside the organization. Data Protection act is the most important regulation that every business organization should follow at the workplace. Data protection act implies that the business experts or data analysts should never disclose any data in front of the third party without taking permission to that concerned person. The IT managers should strictly instruct the employees to maintain confidentiality of data in regards to the organization and both employees.
The success of a business organization may be affected being unable to maintain security within the confidential data. In order to run an organization successfully, the business experts should maintain confidentiality in business strategies and policies (Rosemann & vom Brocke, 2015). Otherwise, competitors may become a major threat in the market. However, encryption is one of the most effective ways of maintaining security on data and information from the customers as well as hackers (Thomas & Cornuel, 2012). If a particular business organization likes to maintain encryption, an unauthorized person would never be able to use or hack the computer. Maintaining confidentiality of data is quite difficult in matrix organizational structure.
In order to maintain data safe and secured, most of the business organizations like to depend on encryption process. While running an organization, the business experts love to maintain a constant financial record on computer. Employees while working under matrix structure have to face immense difficulties in order to maintain confidentiality of data (Wang, Chen & Chen, 2012). IT managers should provide an effective training for using encryption so that employees can make the best use of it. An unauthorized person would never be able to use an encrypted file. Therefore, the financial managers can easily maintain their database by using encryption.
Effective IT service is also possessed with some of its major impacts for rendering the success of a business organization. The business managers can maintain an effective communication with the employees as well as with the customers by using the advancement of technology. People from different corners are able to communicate with a particular business organization by utilizing the popularity of digital media. Customers can use the service and product of a business organization sitting at their home. For an example, Amazon.com has been considered as one of the most popular ecommerce business organizations that provide an effective online service to the customers of different geographical boundary. The service providers of this organization keep a constant contact with the customer in order to know their needs and demands (Wilton, 2012). The customers as well like to express their feedback to the service providers with the help of online media. As per the customers’ response and feedback, the business organizations like to reform their business strategies and policies. Therefore, the impact of IT service is vast that creates a major role for rendering the success of an organization. The data analyst of a business organization as well is able to provide an accurate data and information regarding the profit and loss. Based on the profit margin, the managers make their business policies of promoting their products. The marketing budget of an organization is highly dependent on the profit margin. Therefore, the contribution of IT service for the success of a business organization is truly undeniable.
In matrix structure, employees of similar skills and competencies are instructed to be kept under similar team. For an example, IT employees of IT departments have been kept under a similar group so that they do not have to face difficulties for providing effective services. IT functional managers never intend to amalgamate IT specialists with other departments. Information system is of the major sources of maintaining an effective communication with the customers. With the help of online market survey, the customers get the scope to express their own point of view regarding the service and product quality of a particular organization. Therefore, the product managers can make or re-form their strategies and policies as per the desires of customers.
The success of a business organization in matrix structure is highly dependent on the performance level of employees. Information system records the performance of the employees at every step. The functional managers should maintain a strong communication with every single employee in order to encourage him or her. The product managers should keep a record about the productivity of employees. As per the production level, the business experts like to provide appropriate suggestion regarding the betterment of business process.
The entire study has provided a detailed analysis about the impact of IT management structure for the success of a business organization. Business experts always crave for maintaining the image and reputation of an organization. In order to get an effective service from the employees, the managers need to provide an effective feedback to the performers so that they can improve their way of service. Information technology is one of the most effective sources that can keep a record about employee performance. IT management of most of the companies tends to follow Matrix structure for maintaining an effective communication with the existing workers. Organizations like to use the advanced technology for providing accurate data to the performers.
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