The Impact of IT on Organizational Structures
Anita Gaile, PhD.
The development of information technology (IT) in the 20th century significantly impacted how enterprises and institutions organize work. Here’s a breakdown of some common organizational structures, mainly: Linear Hierarchy, Matrix Structure, Project Management Structure, and Virtual Structure. Taking this into account, one must understand the interconnectedness of these structures and the skills to succeed within organizations that implement them.
Linear Hierarchy

The linear hierarchy is a traditional structure with centralized decision-making. It prioritizes maintaining order and following established procedures. This focus on organization structure ensures high quality. Work processes are meticulously mapped and documented, which is essential for further automation and digitization within the organization
Employees in a linear hierarchy report to a single manager and are expected to be disciplined and follow job descriptions precisely.
Matrix Structure

A matrix structure allows for decisions to be made at various levels with delegated responsibility across different functions. This structure arose with the emergence of early automatic information processing solutions. It is more flexible than a linear hierarchy, with a primary focus on client satisfaction. The matrix-type management structure emphasizes clear responsibilities, strong communication, and close teamwork. Work processes are still predefined and mapped, but employees have more flexibility to adjust their execution as long as it doesn’t affect predefined performance criteria (quality, safety, etc.). They must inform all involved parties about any changes to ensure smooth transfer of the product or service to the customer on time and at the desired quality level. In this structure, one employee may have two to three managers, requiring them to be flexible, possess good communication skills, and be able to reconcile potentially conflicting requests.
Project Management Structure

Project management structures are temporary structures created for the implementation of specific projects. They originated primarily in the construction industry, but IT/IS and related businesses began utilizing them in the 1990s. This structure prioritizes the speed of delivering a service or product to the customer while maximizing the utilization of highly skilled personnel. If an organization uses a project management structure, individuals may be involved in multiple projects, effectively leveraging their unique professional expertise. This also means they will have as many managers as projects they are involved in. People working in such structures require high levels of adaptability, the ability to switch between tasks easily, and a healthy sense of self-worth to avoid overloading themselves. Project roles can vary, and individuals may need to transition between them seamlessly. Project management structures require well-developed systems for tracking work hours and labor productivity.
Virtual Structures

Virtual structures involve cooperation between individuals without a formal management hierarchy. All participants have equal rights, and collaboration is established not as a manager-subordinate relationship but as a joint effort among equal partners. These temporary structures rely on mutual trust between members, who share responsibility for the outcome of the cooperation (profit or loss).
The Interconnectedness of Structures
In any modern organization, these different organizational structures are often intertwined and interact with each other. This creates the need for accurate and readily available information about the nature, plan, and status of every process within the organization.
Skills for Success
Each organizational structure requires different social skills and abilities for individuals to best contribute to achieving the organization’s goals. In a linear hierarchy, discipline and the ability to follow instructions are crucial. The matrix structure demands strong communication and flexibility. Project management structures require adaptability, the ability to switch between tasks, and a healthy sense of self-worth. Finally, virtual structures necessitate risk-taking and the ability to work based on mutual trust.
Effective cooperation between individuals with such diverse profiles is only possible when all processes essential to the organization’s core activity are mapped, and real-time information about their status is available.