Impact Of Technology On Organization Structure

Question 1

Downsizing

Answer 1

means reduction in size of organization’s structure
it is only possible with high communication and technological system

Question 2

De-layering

Answer 2

means removing one or level of management from hierarchy
it is only possible with high communication system

Question 3

Restructuring

Answer 3

Restructuring may be vertical and horizontal both. Different organizations merge functions, sections and
departments according to the technological advancement and continuously restructure the organizational
structure.

Question 4

Outsourcing

Answer 4

Outsourcing means arranging for other business organisations to perform some administrative tasks, or
management tasks, instead of having to employ individuals to do the task internally, as part of the organisation’s
own activities.

Question 5

Reason for outsourcing

Answer 5

1. A successful business has some core competences that enable it to succeed and
   do better than rivals.
   2.When a business performs all these noncore activities itself, this diverts management attention away
   from the core competences.

Question 6

Problems of outsourcing

Question 7

Virtual organization

Answer 7

A virtual organisation is an organisation that has no physical hub or centre of operations. Instead, it is a network
of individuals linked by computer and telecommunications network (such as the internet).