THE ROLE OF INFORMATION TECHNOLOGY IN ORGANIZATION DESIGN

Abstract

This paper introduces a set of information technology variables which can be used in designing organizations. We first look at traditional design variables and then present a series of options enabled by modern information technology. We use these IT design variables to describe four prototypical organizations which are beginning to appear in the workplace: virtual, negotiated, traditional and vertically integrated. It is argued that an organization designer must also consider how structure and technology influence job tasks and people in order to be successful. The paper discusses potential implementation difficulties, particularly in motivating traditional organizations to take advantage of IT design variables. The paper concludes that the design of information technology and the design of organizations is largely becoming the same task.