Organizational design is a process of putting together a framework that will guide the flow of information from one department to another. This framework is often referred to as a matrix. Because information is spread across many departments, the process of putting together an organization’s structure involves dividing employees into teams and letting them perform different tasks and responsibilities. Similarly, there are different types of organizational structures that combine different styles.
Before personal computers, organizations typically centralized the information-systems function as an independent department to maximize control over their computing resources. However, as the proliferation of personal computers spread throughout organizations, some departments gained their own computing resources. As a result, some created internal information-systems groups. These departmental-IS groups served the information needs of their respective departments, providing higher levels of service and faster turnaround than the centralized IT department. However, this model can lead to inefficiencies.
If a group was formed with a simple purpose like a resolution of a particular issue, it may not require a formal structure. On the other hand, organizations that want to meet a long-term goal need more concrete structure. Then again, they may need more “in charge” people, meaning more rules and responsibilities. Then, the employees are more likely to perform better and feel more confident.
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