3.1
LEARNING OBJECTIVES
• DESCRIBE CHARACTERISTICS OF
ORGANIZATIONS
• RELATE INFO SYSTEMS TO
ORGANIZATIONS
• COMPARE MODELS DESCRIBING
SYSTEM ORIGINS
*
3.2
LEARNING OBJECTIVES
• COMPARE THEORIES OF
ORGANIZATIONS
• ANALYZE IMPACT OF INFO SYSTEM
ON ORGANIZATION
• DESCRIBE IMPLICATIONS OF
SYSTEM DESIGN &
IMPLEMENTATION
3.3
*
MANAGEMENT CHALLENGES
• DIFFICULTIES OF MANAGING
CHANGE
• ADJUSTING TECHNOLOGY AND
ORGANIZATION FOR OPTIMAL FIT
*
3.4
ORGANIZATIONS & INFORMATION
TECHNOLOGY
ORGANIZATIONS
3.5
MEDIATING FACTORS:
Environment
Culture
Structure
Standard Procedures
Politics
Management Decisions
Chance
INFORMATION
TECHNOLOGY
ORGANIZATION
CEO
TECHNICAL DEFINITION:
VP
STABLE, FORMAL STRUCTURE
• TAKES RESOURCES FROM
ENVIRONMENT
• PROCESSES THEM
• TO PRODUCE OUTPUTS
*
3.6
VP
VP
3.7
STRUCTURE:
Hierarchy
Division of labor
Rules, Procedures
PROCESS:
Rights/Obligations
Privileges/Responsibilities
Values
Norms
People
*
ENVIRONMENTAL OUTPUTS
ENVIRONMENTAL RESOURCES
BEHAVIORAL VIEW OF ORGANIZATIONS
STRUCTURAL CHARACTERISTICS OF
ALL ORGANIZATIONS
•
•
•
•
•
•
3.8
CLEAR DIVISION OF LABOR
HIERARCHY
EXPLICIT RULES & PROCEDURES
IMPARTIAL JUDGMENTS
TECHNICAL QUALIFICATIONS
MAXIMUM ORGANIZATIONAL
EFFICIENCY
*
ORGANIZATIONAL STRUCTURES
• ENTREPRENEURIAL: Startup business
• MACHINE BUREAUCRACY: Mid-sized
manufacturing firm
• DIVISIONALIZED BUREAUCRACY: Fortune
500
• PROFESSIONAL BUREAUCRACY: Law
firms, hospitals
• ADHOCRACY: Consulting firm
*
3.9
ORGANIZATION & ITS ENVIRONMENT
THE ENVIRONMENT:
RESOURCES & CONSTRAINTS
GOVERNMENTS
COMPETITORS
THE FIRM
FINANCIAL INSTITUTIONS
CULTURE
KNOWLEDGE
TECHNOLOGY
3.10
INFORMATION SYSTEMS
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
*
3.12
WORK GROUPS, PROBLEMS,
SYSTEM SUPPORT
• HIERARCHICAL: Frequent meetings,
workers dispersed
– VIDEO CONFERENCING, E-MAIL
• INTERDEPARTMENTAL
COMMITTEES: Need occasional
direct communication
– ELECTRONIC MESSAGING
*
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
3.14
– ELECTRONIC BULLETIN BOARDS,
VIDEO/COMPUTER CONFERENCING,
E-MAIL
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
*
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
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
*
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
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• 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
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
*
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
*
3.23
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• POLITICAL THEORY: Info systems
are outcome of political competition
for policies, procedures, resources
*
3.24
IMPLEMENTING CHANGE
TASK
RESISTANCE
TECHNOLOGY
PEOPLE
MUTUAL
ADJUST
MENT
STRUCTURE
3.25
Source: Leavitt, Handbook of Organization (1965)
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
*
3.26
IMPLICATIONS FOR DESIGN &
UNDERSTANDING INFO SYSTEMS
ENVIRONMENT
STRUCTURE
CULTURE
POLITICS
*
3.27
ROLE OF MANAGERS
• INTERPERSONAL: Figureheads,
leaders, liaison
• INFORMATIONAL: Receive &
disseminate critical information
• DECISIONAL: Initiate activities,
handle disturbances, allocate
resources, negotiate conflicts
*
3.28
Connect 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
3.30