3.1. learning objectives describe characteristics of organizationsdescribe characteristics of...

LEARNING OBJECTIVESLEARNING OBJECTIVES

• DESCRIBE CHARACTERISTICS OF DESCRIBE CHARACTERISTICS OF ORGANIZATIONSORGANIZATIONS

• RELATE INFO SYSTEMS TO RELATE INFO SYSTEMS TO ORGANIZATIONSORGANIZATIONS

• COMPARE MODELS DESCRIBING COMPARE MODELS DESCRIBING SYSTEM ORIGINSSYSTEM ORIGINS

**

3.2

LEARNING OBJECTIVESLEARNING OBJECTIVES

• COMPARE THEORIES OF COMPARE THEORIES OF ORGANIZATIONSORGANIZATIONS

• ANALYZE IMPACT OF INFO SYSTEM ANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATIONON ORGANIZATION

• DESCRIBE IMPLICATIONS OF SYSTEM DESCRIBE IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATIONDESIGN & IMPLEMENTATION

**

3.3

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• DIFFICULTIES OF MANAGING DIFFICULTIES OF MANAGING CHANGECHANGE

• ADJUSTING TECHNOLOGY AND ADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL FITORGANIZATION FOR OPTIMAL FIT

**

3.4

MEDIATING FACTORS:MEDIATING FACTORS: Environment Environment CultureCultureStructure Structure Standard Procedures Standard Procedures Politics Politics Management Decisions Management Decisions ChanceChance

ORGANIZATIONS & ORGANIZATIONS & INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

3.5

VP VP VP

CEOORGANIZATIONORGANIZATION

TECHNICAL DEFINITION:TECHNICAL DEFINITION:

STABLE, FORMAL STRUCTURESTABLE, FORMAL STRUCTURE• TAKES RESOURCES FROM TAKES RESOURCES FROM

ENVIRONMENTENVIRONMENT• PROCESSES THEMPROCESSES THEM• TO PRODUCE OUTPUTSTO PRODUCE OUTPUTS

**3.6

EN

VIR

ON

ME

NT

AL

RE

SO

UR

CE

SE

NV

IRO

NM

EN

TA

L R

ES

OU

RC

ES

EN

VIR

ON

ME

NT

AL

OU

TP

UT

SE

NV

IRO

NM

EN

TA

L O

UT

PU

TS

BEHAVIORAL VIEW OF ORGANIZATIONSBEHAVIORAL VIEW OF ORGANIZATIONS

STRUCTURE:STRUCTURE: HierarchyHierarchyDivision of Division of

laborlabor Rules, ProceduresRules, Procedures

PROCESS:PROCESS: Rights/Rights/ObligationsObligations Privileges/ResponsibilitiesPrivileges/Responsibilities ValuesValues

NormsNormsPeoplePeople **

3.7

STRUCTURAL CHARACTERISTICS OF STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONSALL ORGANIZATIONS

• CLEAR DIVISION OF LABORCLEAR DIVISION OF LABOR• HIERARCHYHIERARCHY• EXPLICIT RULES & PROCEDURESEXPLICIT RULES & PROCEDURES• IMPARTIAL JUDGMENTSIMPARTIAL JUDGMENTS• TECHNICAL QUALIFICATIONSTECHNICAL QUALIFICATIONS• MAXIMUM ORGANIZATIONAL MAXIMUM ORGANIZATIONAL

EFFICIENCYEFFICIENCY

**3.8

ORGANIZATIONAL STRUCTURESORGANIZATIONAL STRUCTURES

• ENTREPRENEURIAL:ENTREPRENEURIAL: Startup business Startup business• MACHINE BUREAUCRACY:MACHINE BUREAUCRACY: Mid-sized Mid-sized

manufacturing firmmanufacturing firm• DIVISIONALIZED BUREAUCRACY:DIVISIONALIZED BUREAUCRACY: Fortune Fortune

500500• PROFESSIONAL BUREAUCRACY:PROFESSIONAL BUREAUCRACY: Law Law

firms, hospitalsfirms, hospitals• ADHOCRACYADHOCRACY: Consulting firm: Consulting firm

**

3.9

ORGANIZATION & ITS ENVIRONMENTORGANIZATION & ITS ENVIRONMENT

THE FIRM

INFORMATION SYSTEMSINFORMATION SYSTEMS

THE ENVIRONMENT:THE ENVIRONMENT:

RESOURCES & CONSTRAINTS

GOVERNMENTS

COMPETITORS

FINANCIAL INSTITUTIONS

CULTURE

KNOWLEDGE

TECHNOLOGY

3.10

SALIENT FEATURES OF SALIENT FEATURES OF ORGANIZATIONSORGANIZATIONS

COMMON FEATURES:COMMON FEATURES:

• FORMAL STRUCTUREFORMAL STRUCTURE

• STANDARD OPERATING STANDARD OPERATING PROCEDURESPROCEDURES

• POLITICSPOLITICS

• CULTURECULTURE

**

3.11

SALIENT FEATURES OF SALIENT FEATURES OF ORGANIZATIONSORGANIZATIONS

UNIQUE FEATURES:UNIQUE FEATURES:

ORGANIZATIONAL TYPEORGANIZATIONAL TYPE

ENVIRONMENTS, GOALS, POWERENVIRONMENTS, GOALS, POWER

CONSTITUENCIES, FUNCTIONCONSTITUENCIES, FUNCTION

LEADERSHIP, TASKSLEADERSHIP, TASKS

TECHNOLOGYTECHNOLOGY

LEVELSLEVELS

**3.12

WORK GROUPS, PROBLEMS, WORK GROUPS, PROBLEMS, SYSTEM SUPPORTSYSTEM SUPPORT

• HIERARCHICAL:HIERARCHICAL: Frequent meetings, Frequent meetings, workers dispersedworkers dispersed– VIDEO CONFERENCING, E-MAILVIDEO CONFERENCING, E-MAIL

• INTERDEPARTMENTAL INTERDEPARTMENTAL COMMITTEES:COMMITTEES: Need occasional Need occasional direct communicationdirect communication– ELECTRONIC MESSAGINGELECTRONIC MESSAGING

**3.13


• PROJECT TEAMS:PROJECT TEAMS: Day-to-day Day-to-day interactions, meeting schedulesinteractions, meeting schedules– SCHEDULING/COMMUNICATION/SCHEDULING/COMMUNICATION/

SUPPORT SOFTWARE, INTRANETSUPPORT SOFTWARE, INTRANET

• COMMITTEES:COMMITTEES: High peak load, High peak load, intermittent communicationintermittent communication– ELECTRONIC BULLETIN BOARDS, ELECTRONIC BULLETIN BOARDS,

VIDEO/COMPUTER CONFERENCING, E-MAILVIDEO/COMPUTER CONFERENCING, E-MAIL

**

3.14


• TASK FORCES: TASK FORCES: Rapid Rapid communication, internal/external datacommunication, internal/external data– GRAPHICS DISPLAY, INFORMATION/ GRAPHICS DISPLAY, INFORMATION/

DOCUMENTATION INTERCHANGEDOCUMENTATION INTERCHANGE

• PEER GROUPS:PEER GROUPS: Intense personal Intense personal communicationcommunication– TELEPHONE, E-MAILTELEPHONE, E-MAIL

**

3.15

PROBLEMS OF ALL WORK GROUPSPROBLEMS OF ALL WORK GROUPS

• MAKING ARRANGEMENTSMAKING ARRANGEMENTS

• ATTENDING MEETINGSATTENDING MEETINGS

• LONG AGENDALONG AGENDA

• COST OF MEETINGSCOST OF MEETINGS

• BETWEEN-MEETING ACTIVITIESBETWEEN-MEETING ACTIVITIES

**

3.16

DEVELOPMENT OF INFORMATION DEVELOPMENT OF INFORMATION ARCHITECTUREARCHITECTURE

• 1950s:1950s: ELECTRONIC ACCOUNTING ELECTRONIC ACCOUNTING MACHINESMACHINES

• 1960s:1960s: DATA PROCESSING DEPARTMENTS DATA PROCESSING DEPARTMENTS• 1970s:1970s: INFORMATION SYSTEMS INFORMATION SYSTEMS• 1980s:1980s: INFORMATION SYSTEMS & SERVICES INFORMATION SYSTEMS & SERVICES• 1990s:1990s: ENTERPRISE-WIDE INFORMATION ENTERPRISE-WIDE INFORMATION

UTILITYUTILITY

**

3.17

INFORMATION SYSTEMS INFORMATION SYSTEMS DEPARTMENTDEPARTMENT

• PROGRAMMERS:PROGRAMMERS: Write software Write software

• SYSTEMS ANALYSTS:SYSTEMS ANALYSTS: Translate Translate business problems into solutionsbusiness problems into solutions

• IS MANAGERS:IS MANAGERS: Department leaders Department leaders

• END USERS:END USERS: Department reps for Department reps for whom applications are whom applications are developed developed

**

3.18

WHY ORGANIZATIONS BUILD WHY ORGANIZATIONS BUILD INFORMATION SYSTEMSINFORMATION SYSTEMS

• ENVIRONMENTAL FACTORS:ENVIRONMENTAL FACTORS: External factors that influence External factors that influence adoption & design of systemadoption & design of system

• INSTITUTIONAL FACTORS:INSTITUTIONAL FACTORS: Internal factors that influence Internal factors that influence adoption & design of adoption & design of systemsystem

**

3.19

HOW INFO SYSTEMS AFFECT HOW INFO SYSTEMS AFFECT ORGANIZATIONSORGANIZATIONS

• MICROECONOMIC MODEL: MICROECONOMIC MODEL: Info Info technology is a factor of production, technology is a factor of production, like capital & laborlike capital & labor

• TRANSACTION COST THEORY: TRANSACTION COST THEORY: Firms attempt to minimize Firms attempt to minimize transaction costs internally & transaction costs internally & externallyexternally

**3.21

• AGENCY THEORY: AGENCY THEORY: Firm is nexus of Firm is nexus of contracts among agents who make contracts among agents who make decisions; IS shrink number of agents & decisions; IS shrink number of agents & reduce costreduce cost

• BEHAVIORAL THEORIES: BEHAVIORAL THEORIES: Concepts from Concepts from Sociology, Psychology, Political Science; Sociology, Psychology, Political Science; Organizations & Information Technology Organizations & Information Technology mutually influence each othermutually influence each other

**


3.21


• DECISION & CONTROL THEORY: DECISION & CONTROL THEORY: Decisions are made under conditions of Decisions are made under conditions of risk & uncertainty; centralization & risk & uncertainty; centralization & hierarchy reduce uncertaintyhierarchy reduce uncertainty

• SOCIOLOGICAL THEORY: SOCIOLOGICAL THEORY: Bureaucracy, Bureaucracy, SOPs help stabilize organizations, but SOPs help stabilize organizations, but slow ability to changeslow ability to change

**

3.22


• POSTINDUSTRIAL THEORY:POSTINDUSTRIAL THEORY: Flatter Flatter organizations; dominated by organizations; dominated by knowledge workers; decentralized knowledge workers; decentralized decision makingdecision making

• CULTURAL THEORY: CULTURAL THEORY: Information Information technology must fit organization’s technology must fit organization’s culture to be acceptedculture to be accepted

**3.23


• POLITICAL THEORY:POLITICAL THEORY: Info systems Info systems are outcome of political competition are outcome of political competition for policies, procedures, resourcesfor policies, procedures, resources

**

3.24

IMPLEMENTING CHANGEIMPLEMENTING CHANGE

Source: Leavitt, Handbook of Organization (1965)

TASKTASK

PEOPLEPEOPLETECHNOLOGYTECHNOLOGY

STRUCTURESTRUCTURE

RESISTANCERESISTANCE

MUTUALMUTUALADJUSTMENTADJUSTMENT

3.25

HOW WEB AFFECTS ORGANIZATIONSHOW WEB AFFECTS ORGANIZATIONS

• MORE INFO, ANYWHERE, ANYTIMEMORE INFO, ANYWHERE, ANYTIME• MORE SCOPE, DEPTH, RANGE OF MORE SCOPE, DEPTH, RANGE OF

KNOWLEDGE:KNOWLEDGE: Global encyclopediaGlobal encyclopedia• LOWERS COST, RAISES QUALITY OF LOWERS COST, RAISES QUALITY OF

INFO DISTRIBUTION:INFO DISTRIBUTION: Enhances Enhances attention span of vendors, customers, attention span of vendors, customers, employeesemployees

**

3.26

IMPLICATIONS FOR DESIGN & IMPLICATIONS FOR DESIGN & UNDERSTANDING INFO SYSTEMSUNDERSTANDING INFO SYSTEMS

ENVIRONMENTENVIRONMENT

STRUCTURESTRUCTURE

CULTURECULTURE

POLITICSPOLITICS**

3.27

ROLE OF MANAGERSROLE OF MANAGERS

• INTERPERSONAL:INTERPERSONAL: Figureheads, Figureheads, leaders, liaisonleaders, liaison

• INFORMATIONAL:INFORMATIONAL: Receive & Receive & disseminate critical informationdisseminate critical information

• DECISIONAL:DECISIONAL: Initiate activities, Initiate activities, handle disturbances, allocate handle disturbances, allocate resources, negotiate conflictsresources, negotiate conflicts

**3.28

Connect to the INTERNETConnect to the INTERNET

PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON

WEB SITE FOR MORE INFORMATION ON THIS CHAPTER

3.29

3.1. learning objectives describe characteristics of organizationsdescribe characteristics of...

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