CHAPTER 3' INFORMATION SYSTEMS, ORGANIZATIONS,

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CHAPTER 3. INFORMATION SYSTEMS, ORGANIZATIONS,
MANAGEMENT
BUSINESS PROCESSES ENTERPRISE SYSTEMS
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LEARNING OBJECTIVES

• IDENTIFY CHARACTERISTICS OF ORGANIZATIONS
• RELATE INFO SYSTEMS TO ORGANIZATIONS
• ASSESS ORGANIZATIONAL INFORMATION TECHNOLOGY

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LEARNING OBJECTIVES

• COMPARE THEORIES OF ORGANIZATIONS
• DESCRIBE DECISION PROCESSES
• ASSESS IMPLICATIONS OF SYSTEM DESIGN
  IMPLEMENTATION

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MANAGEMENT CHALLENGES

• DIFFICULTIES OF MANAGING CHANGE
• FITTING TECHNOLOGY ORGANIZATION

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ORGANIZATION

• TECHNICAL DEFINITION
• STABLE, FORMAL STRUCTURE
• TAKES RESOURCES FROM ENVIRONMENT
• PROCESSES THEM
• TO PRODUCE OUTPUTS

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ORGANIZATION

• BEHAVIORAL DEFINITION
• COLLECTION OF
• RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIES
• DELICATELY BALANCED
• CONFLICT RESOLUTION

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ORGANIZATIONS INFORMATION TECHNOLOGY
MEDIATING FACTORS Environment
Culture Structure
Standard Procedures Politics
Management Decisions
Chance
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FORMAL ORGANIZATION

• STRUCTURE Hierarchy Division of
  labor Rules, Procedures
• PROCESS Rights/Obligations
  Privileges/Responsibilities Values Norms
  People

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STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS

• CLEAR DIVISION OF LABOR
• HIERARCHY
• EXPLICIT RULES PROCEDURES
• IMPARTIAL JUDGMENTS
• TECHNICAL QUALIFICATIONS
• MAXIMUM ORGANIZATIONAL EFFICIENCY

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COMMON FEATURES OF ORGANIZATIONS

• FORMAL STRUCTURE
• STANDARD OPERATING PROCEDURES
• POLITICS
• CULTURE

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UNIQUE FEATURES OF ORGANIZATIONS

• ORGANIZATIONAL TYPES
• ENVIRONMENTS, GOALS, POWER
• CONSTITUENCIES, FUNCTION
• LEADERSHIP, TASKS
• TECHNOLOGY
• BUSINESS PROCESSES

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ORGANIZATION ITS ENVIRONMENT
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ORGANIZATIONAL STRUCTURES

• ENTREPRENEURIAL Startup business
• MACHINE BUREAUCRACY Mid-sized manufacturing firm
• DIVISIONALIZED BUREAUCRACY Fortune 500
• PROFESSIONAL BUREAUCRACY Law firms, hospitals
• ADHOCRACY Consulting firm

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INFORMATION SYSTEMS DEPARTMENT

• PROGRAMMERS Write software
• SYSTEMS ANALYSTS Translate business problems
  into solutions
• IS MANAGERS Department leaders
• END USERS Department reps for whom applications
  are developed

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THE ORGANIZATION
SENIOR MANAGEMENT
MAJOR END-USERS (DIVISIONS)
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HOW INFO SYSTEMS AFFECT ORGANIZATIONS

• MICROECONOMIC MODEL Info technology is a factor
  of production, like capital labor
• TRANSACTION COST THEORY Firms attempt to
  minimize transaction costs internally
  externally

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HOW INFO SYSTEMS AFFECT ORGANIZATIONS

• AGENCY THEORY Firm is nexus of contracts among
  self-interested parties requiring supervision
• BEHAVIORAL THEORIES Info systems could change
  hierarchy of decision making reduce need for
  middle management clerical support distribute
  information

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IMPLEMENTING CHANGE
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INTERNET ORGANIZATIONS

• E-mail communication
• Electronic handbooks published revised
• Interactive training classes
• Employees review, update personal data

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ENTERPRISE SYSTEM
Vendors
Customers
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ROLE OF MANAGERS

• CLASSICAL Describe functions- plan, organize,
  coordinate, decide, control
• BEHAVIORAL Based on observations of managers on
  the job

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INFO SYSTEMS, LEVELS, DECISIONS
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STAGES OF DECISION MAKING

• INTELLIGENCE Collect information identify
  problem
• DESIGN Conceive alternatives select criteria
• CHOICE Use criteria to evaluate alternatives
  select
• IMPLEMENTATION Put decision into effect
  allocate resources control

SOURCE Simon, The New Science of Management
Decision (1960)
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INDIVIDUAL MODELS OF DECISION MAKING

• RATIONAL Comprehensive rationality evaluate
  all alternatives
• SYSTEMATIC Structured, formal method
• INTUITIVE Trial error, unstructured, multiple
  approach

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ORGANIZATIONAL MODELS OF DECISION MAKING

• BUREAUCRATIC Follow standard operating
  procedures (SOP)
• POLITICAL Key groups compete and bargain
• GARBAGE CAN Organizations not rational
  solutions accidental

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IMPLICATIONS FOR DESIGN UNDERSTANDING INFO
SYSTEMS

• ENVIRONMENT
• STRUCTURE
• CULTURE
• POLITICS

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Connect to the INTERNET
Laudon/Laudon Web site http//www.prenhall.co
m/laudon Additional Internet Resources related
to this chapter http//spot.colorado.edu/isoadm
/ http//tools.org/EI/ICEIMT http//www.brint.co
m/ http//www.santafe.edu/ http//www.reengineer
ing.com/ http//bprc.warwick.ac.uk/www-site/bpr2i
ndx.html http//www.cio.com/forums/erp http//ww
w.eil.utoronto.ca/eil.html http//www.erpsupersit
e.com
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CHAPTER 3. INFORMATION SYSTEMS, ORGANIZATIONS,
MANAGEMENT
BUSINESS PROCESSES ENTERPRISE SYSTEMS