Organizational Restructuring

Paper Summary:

The paper discusses, compares and analyzes the benefits and limitations of a centralized and decentralized organizational structure, specifically in the IT industry. The paper explains that both models portray attributes and shortcomings in terms of hardware and software procurement and responsiveness. The paper relates that senior executives in a centralized organization have the most power, whereas a decentralized corporation allocates responsibilities by each unit.

From the Paper:

"With increased global competition there is a need for organizational restructuring in order to meet the demands of the ever-changing IT industry. Now more than ever, companies are re-examining and comparing the benefits and limitations of centralized and decentralized organizational structures in an effort to determine which approach is most beneficial. IT companies are asking the fundamental question, "What is the best organizational structure for our IT operations?" As equipment and software remains expensive, and IT expertise is still difficult to find and manage, new issues have surfaced due to the increased creation of internal IT departments that are rapidly becoming an essential component of all business processes."

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