There Are a Number of Different Models for it Organizations

¶ … Organizations

To gain an idea of the suitability of different organizational models for prospective informational technology organizations, it can be useful to review the currently existing models for all organizational hierarchies. Professor of Management from Yale University, Jeffrey Sonnefield has defined four distinct cultures or models for most business organizations. All of these models have parallels in the real world of existing informational technology firms to some degree, but all have varying levels of appropriateness for a successful IT firm. One of these, known as the 'fortress" style firm where "employees don't know if they'll be laid off or not," is perhaps the most familiar model for corporate America today, still, even after many years of attempt to soften managerial styles.

Fortress organizations often frequently undergo massive reorganizations, in the hope that 'shaking things' (or employees) up in the organizational hierarchy will produce more profits. There are many opportunities in these organizations "for those with timely, specialized skills," as was characteristic of fast-based, often Internet-based organizations, such as the early days of AOL. However, these organizations (AOL none withstanding) often have a quick lifespan and uncertainty is not conducive to long-term development of technology and a well-tested lifestyle management of new products. (Sonnefeld, cited by McCarter, 1999) Often in these pressured environments, the IT department exists as a means to an end, and is looked at as a way to create more profits for the organization, rather than as a respected power player in the organizational department. However, many long-term profitable technologies do not show dividends for some time, thus the fortress model has many flaws.

On the opposite extreme of the fortress model is an academy-style model, such as a research-based IT firm connected with a large university. In this organizational model, employees are highly skilled and tend to stay in the organization, while working their way up the ranks. The organization provides a stable environment in which employees can develop and exercise their skills. Examples of academy cultures are universities, hospitals, and other large corporations with IT divisions, as well as technologically dominated firms. (Sonnefeld, cited by McCarter, 1999)

The academy model's stress on skill often produces a quality product with a low level of error. The only problem is that protocol rather than innovation can lead in a highly entrenched organization. A singular, powerful figurehead such as at Microsoft also often dominates these types of organization. They can be very segmented between advertising, finance, and the actual technical departments, causing fragmentation of communication, ideas, and issues.

At the most extreme, such academy style organizations can be come "club" organizational models, where the most important requirement for employees in this culture is to fit into the group. Usually employees start at the bottom and stay with the organization. The organization promotes from within and highly values seniority. Examples are the military, some law firms, and any organization where credentials are the key for entry, and loyalty the key for remaining in the organization. Few purely IT firms hold to this model tenaciously, but some firms can exhibit this hierarchical and protocol laden model's flaws, if hierarchies become sufficiently entrenched and stifling to the creative process of generating innovation, rather than the same thing over and over again.

The last, other model suggested by Sonnefeld is that of a "Baseball Team" model where "employees are "free agents" who have highly prized skills. They are in high demand and can rather easily get jobs elsewhere. This type of culture exists in fast-paced, high-risk organizations, such as investment banking, advertising, and some Internet startups. (Sonnefeld, cited by McCarter, 1999)