Discuss about the organizational structures based on information systems.

Answer: Managerial decisions are made within the structure of an Organization, where an organizational structure identifies, among other things, the level of responsibility or authority and the scope of control that employees of the organization have. There are two types of organizational structures the pyramid, or hierarchical, structure and the task-based structure.

The pyramid structure:
One of the most popular organizational structures is the traditional pyramid or hierarchical structure in which the chief executive officer (CEO) and the top managers are at the top of the pyramid and non managerial employees (staff) form its base. Middle mangers fall somewhere between top management and staff. Let us take a closer look at these three levels.

• Lower level manager: Lower level managers are responsible for the day-to-day operations, activities, and transactions of an organization, which may include inventory control, payroll, processing sales transactions, and keeping track of employee work hours. They are responsible for the short-term performance of the company and mostly perform structured tasks, which are routine, are easily understood, and do not require intuition or judgment. For example, calculating necessary to solve structured problems is readily available and easily applicable to the given problem.


• Middle level manager: The next layer in the hierarchical organization comprises of middle managers, who coordinate, control, and monitor various activities in an organization and act as liaison between operational managers and top managers. The tasks performed by middle managers are partly structured and partly ambiguous, or unstructured; hence these tasks are called semi-structured. Semi structured tasks include assessing the impact of an increase in operational costs on company profits, appraising the impact of a new tax law on return on investment and so on.


• Top level manager: Finally, the top layer of the pyramid consists of top managers, who establish the vision and the long term goals of organization and chart its overall course. The decisions of top managers tend to unstructured—that is, decisions that rely heavily on intuition, judgment, and experience. Unstructured decisions include assessing the way of competitors may react to a new marketing strategy, predicting the impact of changes in the global economy, developing global competitive strategies and so on.

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