The Effect of IT on Organizational Structure (Case study: Refah bank in Guilan)

Abstract

Undoubtedly, information technology (IT) has undergone extensive developments in various social and economic spheres; its effect on human society is in such a way that the world today is referred as information society. Besides, information technology, attributed as the main agent of global change, is to achieve meta- organization purposes. It also pertains to appropriate information formulated in the strategic policy of a given organization to achieve its ultimate organizational goals. Extensive research from different aspects is conducted on the impact of IT on organizational structure over the past three decades. Nevertheless, findings of the respective research are posited as inconsistent and incongruous. The sustained developments, enormous potential of information technology and its applicability in various domains have raised the question of the accuracy of earlier research findings. The study is to explain the results of previous research, based on modern information technology instances, including various information systems e.g., internet, intranet, extranet, etc in order to give coherence to the review of the related literature and to further identify the impact of IT on organizational structure of ‘Refah' Bank in Guilan by tapping into 24-question Robbins standardized questionnaire distributed among 140 managers and heads of branches and experts of ‘Refah' Bank in Guilan. The collected data was subsequently analyzed by using software SPSS 18 the propounded hypotheses based on research model were duly analyzed with t-test, which confirmed significant relationship in the impact of IT on organizational structure. The obtained results pinpointed the importance of IT in easing the complexity and Centralization and reducing bureaucracy (Formalization) in organizational structure of the ‘Refah' Bank in Guilan.