Impact of IT on the Organizational Dynamics   2022 Latest Answers  

To illustrate the far-reaching impact of the changes described above, let us see what  

happens to the rest of the organization when the company’s Material department is  

closely coupled with the Sales department of the vendor. As we can see there are  

organization-wide implications. Higher coupling with the vendor will have to be  

“endorsed” by other departments and all the functional departments will have to  

operate is tandem. For instance, the Finance department may have to release money  

on development of the product that is actually being incurred by the vendor. Going  

by the previous practices and what SOP dictates, the auditors may have objections.  

They have to understand what is happening! Such ripple effects may be enormous.  

Unless taken care of in a timely manner (with the right support of top leadership) the  

old SOPs may currently be dysfunctional. Temporary organizational devices such  

as fi nancing vehicles may have to be resorted to. There may be higher costs associated with such arrangements.