ch 8 otd-info-tech-cont
TRANSCRIPT
Organization Theory n Design
Information Technology n Control
Ch-8
By Kaleem a. Barlas
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Learning Objectives • Information tech. revolution • Information for decision making and control• ODMS• Feed back control model• MIS• Resource planning• KM n impact on Orgs. Design
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information Technology Evolution • Paradigm shift from manual to computer systems • DBMS• MIS• Reporting systems • DSS • EIS ( executive info. Sys.)• Feed back control systems• Management control systems • Balance score card
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Feed back control systems
• Effective control
• Use of feed back/information
• To match standards
• To help attain goals
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Cycle of control • Setting strategic goals• Effective control systems• Organizational standards• Performance evaluation • Change management techniques
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Feed back control model • Set strategic goals • Establish metrics and standards of
performance• Compare metrics of actual performance with
standards• Take corrective actions as needed
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Management control system • Routines • Reports• Procedures
To maintain or alter patterns in the orgs activities which include;• Planning • Budgeting • Performance evaluation• Resource allocations• Employee rewards• Targets are set in advance
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Continued • Out-put compared to targets• Variance reported to management for corrective action
Advances in IT have dramatically improved the efficiency and effectiveness of these systems.
Executives use dashboards, desk tops, lap-tops , CCTV n other devices to control day today operations
Budgets are monitored with the help ERP n other packages.
Financial reports help managers control the expenditure
Balance sheets are prepared by computers
Comparisons are weekly, monthly, qtrly. and annual are made
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The balance score card
• In the past the orgs. Relied on financial reports for measuring performance, today they want balanced view of both financial n operational measures for successful organizational control.
• BSC is comprehensive management control system that balances traditional financial measures with operational measures relating to co's critical success factors. It contains four ma major perspectives
• Financial performance • Customer services • Internal business processes • Orgs,s capacity for learning n growth
YOU sleeping wake up
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Financial perspective reflects a concern that its activities contribute to improving short n long term financial performance including,
• Net-income • Return on investment
Customer services indicators measure such things as how customers view orgs. N as well as customer satisfaction.
Business process indicators focus on production n cost of production
continued
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Continued
Potential for learning n growth focuses on how well resources and HIC are being
managed for business process
improvement n introduction of new
Products the BSC helps managers
Focus on key strategic measures That define the success
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Enterprise Resource Planning
ERP- Central Data Base • Sales • Human resources • Inventory n manufacturing • Financial accounting• Purchasing • Distributing
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Knowledge Management
A primary goal for IT system is to support management in operational, strategic and other areas. KM does that
What is KM Facts
Data
Information
Knowledge
Continued
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• Collective wisdom• Conclusions• Linkages n comparisons • Since inception to date rations • Application of knowledge leads to HIC
development
Approaches to KM • Explicit Knowledge intellectual
properties, • patterns, • licenses,• processes,
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Continued • Policies
• Procedures
• Info. On customers
• Markets
• Suppliers
• Intelligence reports
Which can be accessed
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Continued
Implicit or Tacit Knowledge • Individual expertise • Creativity• Logical thinking• Professional know-how• Insight• Personal experience• Intution•
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An orgs. That uses advanced IT systems to enable close coordination with in the co n as well as suppliers n customers, n partners. It includes’
• Information linkages • Horizontal relationships• Customer relationship
management
Integrated Enterprise
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continued• E-business Organization design • In-House Division• Spin-off • Strategic partnership
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IT impact on org. design• smaller orgs like
cyber cos. • Decentralized organizational
structure • Improved horizontal
coordination • Improved inter organizational
relationship• Enhanced network structure
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For you to think about it
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Left blank
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Assignment 3
Role of IT in Corporate Management