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.