Technological change often induces structural change because it requires different ways of connecting across an organizational system.

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Technological change includes implementing new technologies, often as the environment shifts. Software upgrades may require employees to learn new ways of working, while machinery or hardware upgrades may require new procedures or restructuring how employees interact with one another.

Technological Change in Organizations

Structural change concerns changes in the overall formal relationships within an organization. Examples include reorganizing departments or business units, adding employee positions, and revising job roles or assignments.

Structural Change in Organizations

OpenStax Principles of Management. Source pages used for organizational culture, corporate culture, and management topics. https://openstax.org/books/principles-management

Principles of Management - OpenStax

OpenStax Organizational Behavior. Source pages used for organizational culture and organizational change topics. https://openstax.org/books/organizational-behavior

Organizational Behavior - OpenStax

Web-based cloud technologies are an example of technological change because they make new forms of collaboration more available.

Cloud Technologies as Collaboration-Expanding Technological Change

Technological Change as a Driver of Structural Change

Structural changes should support broader objectives such as centralizing or decentralizing operations, empowering employees, or finding greater efficiencies.

Objectives Supported by Structural Change

In renewal or decline, tensions between mechanistic and organic tendencies may become unbalanced. The organization may need to be reorganized or restructured to improve coordination across groups or subunits, and managers may need to address fundamental questions about overall direction and administration.

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