Factors Affecting Organizational Design in the IT and Business Process Management Industry – An Analysis

Abstract

The organizational development is continuously emerging to cope with the rapid changes in the environment, technology and competition. Managers struggle to engage employees due to threats of downsizing or outsourcing. In the field of Information Technology and Business Process Management (ITBPM), organizational development is one of the key points in their business operations. These business operations include game development, contact center or customer sales services, animation, health care information management, and software development. The challenge now is how to properly manage and design the organization of the ITBPM companies? What are the things to consider when it comes to strategy, structure, process, and reward and people management? Will the decision fit the needs of the current industry? There are many factors affecting the organizational design. The first is strategy, which dictates direction. The second is structure, which determines the location of decision-making power. The third is process, which has to do with the flow of information; they are the means of responding to information technologies. The fourth is rewards and reward systems, which influence the motivation of people to perform and address organizational goals. The fifth is made up of human resource policies, which influence and frequently define the employees’ mind-sets and skills.