Information Systems,

3.1
LEARNING OBJECTIVES
• DESCRIBE CHARACTERISTICS OF
ORGANIZATIONS
• RELATE INFO SYSTEMS TO
ORGANIZATIONS
• COMPARE MODELS DESCRIBING
SYSTEM ORIGINS
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3.2
LEARNING OBJECTIVES
• COMPARE THEORIES OF
ORGANIZATIONS
• ANALYZE IMPACT OF INFO SYSTEM
ON ORGANIZATION
• DESCRIBE IMPLICATIONS OF
SYSTEM DESIGN &
IMPLEMENTATION

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3.3
MANAGEMENT CHALLENGES
• DIFFICULTIES OF MANAGING
CHANGE
• ADJUSTING TECHNOLOGY AND
ORGANIZATION FOR OPTIMAL FIT
*
3.4
MEDIATING FACTORS:
Environment
Culture
Structure
Standard Procedures
Politics
Management Decisions
Chance

ORGANIZATIONS &
INFORMATION TECHNOLOGY
ORGANIZATIONS
INFORMATION
TECHNOLOGY
3.5
VP VP VP
CEO
ORGANIZATION
TECHNICAL DEFINITION:

STABLE, FORMAL STRUCTURE
• TAKES RESOURCES FROM
ENVIRONMENT
• PROCESSES THEM
• TO PRODUCE OUTPUTS
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3.6
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BEHAVIORAL VIEW OF ORGANIZATIONS
STRUCTURE:
Hierarchy
Division of labor
Rules, Procedures
PROCESS:
Rights/Obligations
Privileges/Responsibilities
Values
Norms
People
*
3.7
STRUCTURAL CHARACTERISTICS OF
ALL ORGANIZATIONS
• CLEAR DIVISION OF LABOR
• HIERARCHY
• EXPLICIT RULES & PROCEDURES
• IMPARTIAL JUDGMENTS
• TECHNICAL QUALIFICATIONS
• MAXIMUM ORGANIZATIONAL
EFFICIENCY
*
3.8
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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3.9
ORGANIZATION & ITS ENVIRONMENT
THE FIRM
INFORMATION SYSTEMS
THE ENVIRONMENT:
RESOURCES & CONSTRAINTS
GOVERNMENTS
COMPETITORS
FINANCIAL INSTITUTIONS
CULTURE
KNOWLEDGE
TECHNOLOGY
3.10
SALIENT FEATURES OF
ORGANIZATIONS
COMMON FEATURES:
• FORMAL STRUCTURE
• STANDARD OPERATING
PROCEDURES
• POLITICS
• CULTURE
*

3.11
SALIENT FEATURES OF
ORGANIZATIONS
UNIQUE FEATURES:
ORGANIZATIONAL TYPE
ENVIRONMENTS, GOALS, POWER
CONSTITUENCIES, FUNCTION
LEADERSHIP, TASKS
TECHNOLOGY
LEVELS
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3.12
WORK GROUPS, PROBLEMS,
SYSTEM SUPPORT
• HIERARCHICAL: Frequent meetings,
workers dispersed
– VIDEO CONFERENCING, E-MAIL
• INTERDEPARTMENTAL
COMMITTEES: Need occasional
direct communication
– ELECTRONIC MESSAGING
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3.13
WORK GROUPS, PROBLEMS,
SYSTEM SUPPORT
• PROJECT TEAMS: Day-to-day
interactions, meeting schedules
– SCHEDULING/COMMUNICATION/
SUPPORT SOFTWARE, INTRANET
• COMMITTEES: High peak load,
intermittent communication
– ELECTRONIC BULLETIN BOARDS,
VIDEO/COMPUTER CONFERENCING,
E-MAIL
*
3.14
WORK GROUPS, PROBLEMS,
SYSTEM SUPPORT
• TASK FORCES: Rapid
communication, internal/external
data
– GRAPHICS DISPLAY, INFORMATION/
DOCUMENTATION INTERCHANGE
• PEER GROUPS: Intense personal
communication
– TELEPHONE, E-MAIL
*
3.15
PROBLEMS OF ALL WORK GROUPS
• MAKING ARRANGEMENTS
• ATTENDING MEETINGS
• LONG AGENDA
• COST OF MEETINGS
• BETWEEN-MEETING ACTIVITIES
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3.16
DEVELOPMENT OF
INFORMATION ARCHITECTURE
• 1950s: ELECTRONIC ACCOUNTING
MACHINES
• 1960s: DATA PROCESSING
DEPARTMENTS
• 1970s: INFORMATION SYSTEMS
• 1980s: INFORMATION SYSTEMS &
SERVICES
• 1990s: ENTERPRISE-WIDE
INFORMATION UTILITY
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3.17
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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3.18
WHY ORGANIZATIONS BUILD
INFORMATION SYSTEMS
• ENVIRONMENTAL FACTORS:
External factors that influence
adoption & design of system
• INSTITUTIONAL FACTORS:
Internal factors that influence
adoption & design of
system
*
3.19
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
*
3.21
• AGENCY THEORY: Firm is nexus of
contracts among agents who make
decisions; IS shrink number of
agents & reduce cost
• BEHAVIORAL THEORIES: Concepts
from Sociology, Psychology, Political
Science; Organizations & Information
Technology mutually influence each
other
*
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
3.21
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• DECISION & CONTROL THEORY:
Decisions are made under conditions
of risk & uncertainty; centralization &
hierarchy reduce uncertainty
• SOCIOLOGICAL THEORY:
Bureaucracy, SOPs help stabilize
organizations, but slow ability to
change
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3.22
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• POSTINDUSTRIAL THEORY: Flatter
organizations; dominated by
knowledge workers; decentralized
decision making
• CULTURAL THEORY: Information
technology must fit organization’s
culture to be accepted
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3.23
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• POLITICAL THEORY: Info systems
are outcome of political competition
for policies, procedures, resources
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3.24
IMPLEMENTING CHANGE
Source: Leavitt, Handbook of Organization (1965)
TASK
PEOPLE TECHNOLOGY
STRUCTURE
RESISTANCE
MUTUAL
ADJUST
MENT
3.25
HOW WEB AFFECTS ORGANIZATIONS
• MORE INFO, ANYWHERE, ANYTIME
• MORE SCOPE, DEPTH, RANGE OF
KNOWLEDGE: Global encyclopedia
• LOWERS COST, RAISES QUALITY
OF INFO DISTRIBUTION: Enhances
attention span of vendors,
customers, employees
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3.26
IMPLICATIONS FOR DESIGN &
UNDERSTANDING INFO SYSTEMS
ENVIRONMENT
STRUCTURE
CULTURE
POLITICS
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3.27
ROLE OF MANAGERS
• INTERPERSONAL: Figureheads,
leaders, liaison
• INFORMATIONAL: Receive &
disseminate critical information
• DECISIONAL: Initiate activities,
handle disturbances, allocate
resources, negotiate conflicts
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3.28
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3.29
3.30