Operational Functions Information technology can make the organizational structure leaner. Functionally, related units and information management will act as supporting agencies where information technology is considered as a firm infrastructure. By implementing information technology, companies can save costs to pay employees because the technology has been able to replace the role of humans in processing information needed by the company.
Monitoring and control function The existence of information technology becomes an inseparable part of the activity at the managerial level embedded in every manager’s function, so that the organizational structure of the units associated with it must be able to have a span of control or peer relationship that enables effective interaction with related managers.
The function of planning and decision This function elevates information technology to a more strategic role because it is a knowledge generator for organizational leaders to determine a number of important decisions every day. Good information technology can produce information that is fast and accurate so that stakeholders can make decisions efficiently without wasting much time and money to verify the truth of the information. for example the application of data warehouse within a company.
Communication function This function places information technology as a means or media for individual organizations in communicating, collaborating, cooperating and interacting. information technology can help companies communicate. for example the application of communication applications within the company and the use of email to communicate remotely.
Interorganizational functions The spirit of globalization forces organizations to collaborate with other organizations, which will affect the design of the organizational structure. The latter function explains that information technology can help companies to forge partnerships with other companies. A simple example is a clothing supplier company that builds its product database so resellers can easily find out the stock of goods without the need to ask lots of suppliers.
