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CSIS 114 Lab 8: Organizational Culture and Structure. Spring, 2006


Title: An Introduction to Information Systems Author: Dr. W Last modified by: Bob Yoder Created Date: 11/28/2000 9:20:44 PM Document presentation format – PowerPoint PPT presentation

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Title: CSIS 114 Lab 8: Organizational Culture and Structure. Spring, 2006

CSIS 114 Lab 8 Organizational Culture and
Structure. Spring, 2006
Part 1 Organizational culture
  • Shared understandings, values assumptions in an
  • Influences information systems
  • Siena and IBM example

IBMs culture then
  • Lifetime employment (up until 1987 !)
  • Social interaction Kingston Country Club
  • Conservative dress
  • Our computers are the best
  • Other companies make computers, too?
  • Push the big iron

IBMs culture now
  • 40 mobile workforce
  • 30 women
  • Services to help customer use IT.
  • Collaboration innovation
  • To respond to problems opportunities
  • Personal responsibility trust

Sienas Culture
  • Men with brown robes Franciscan influence.
  • ROTC.
  • Strong athletic program and alumni support.
  • Academics Liberal arts.
  • Students mostly regional, Irish/Italian.

Culture Characteristics low or high on scale
  • Innovation Risk taking encouraged?
  • Attention to detail precision, analysis
  • Outcome orientation (vs process)
  • People orientation - consideration
  • Team organization work activities
  • Aggressiveness - competitiveness
  • Stability status quo

Function of Culture
  • Distinguishes organization from others
  • Conveys sense of identity to members
  • Commitment to group rather than self
  • Enhance social system stability guidelines for
  • Encourages conformity (control) - rewards

Creating and maintaining culture
  • Stories - history
  • Rituals
  • Language jargon or slogans
  • Material symbols dress codes, office space,
    furnishings, other perks, rewards system

Success storyThe Toyota Way
  • Kaizen CI as frame of mind.
  • Genchi genbutsu Go to the source for facts
    (not hearsay).
  • Seek challenge. View problems positively as
    opportunities to improve.
  • Teamwork company interest first.
  • Respect for others and their knowledge.
  • Builds consistency in decision making aligned
    with the values of the company.

  • Read
  • Fill out worksheet
  • Discussion

Part 2 Organizational structures
  • Affect information flow, work processes and the
    implementation of information systems that should
    empower and support workers.

Organizational Structure influences information
  • Lines of communication
  • Formal
  • Informal IT makes CEO more accessible.
    Relationships make business processes work.
  • Vertical (control) vs Horizontal (collaborative)

Traditional Organizational Structure
  • Fig. 2.3

Organizational Structure Approaches
  • Traditional hierarchy
  • Industrial revolution and earlier
  • command and control
  • Rote work by unskilled staff
  • Flat
  • Project
  • Team
  • Multidimensional

Example of Traditional Structure
  • Fig 2.4

Flat Organizational Structure
  • Less middle managers
  • Less up/down (filtering) communication
  • Empowerment of staff via IS
  • Faster action and Lower costs
  • EX Insurance rep handles entire case
  • Cable TV help desk can make decisions and provide
    refunds/extras (up to certain amount)
  • Be careful about becoming too flat sometimes
    managers can see the big picture or resolve
    longer-term problems.

Project Organizational Structure
  • Fig 2.5

DELL Sales force structure changed to
accommodate growth
  • Maintained double-digit sustained growth by
    market segmentation.
  • Each group has specific customers that they
    specialized in.
  • Each group was close-knit and entrepreneurial.
  • As sales grew, company split off more specialized
    groups- see next slide.

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Team Organizational Structure
  • Work groups of various sizes
  • Temporary or permanent teams
  • Peer pressure to perform
  • Each member learns all functions of team
  • Team can even make budgetary and hire/fire

Gores innovative organization model (makers of
  • Split divisions when they reach gt 150 people.
  • Research indicates that people dont feel part of
    community that is too large.
  • EX Shakers split families that are too large.
  • No managers, just mentors
  • Titles, offices dont mean a thing.

Multidimensional Organizational Structure
  • Fig 2.6

Multidimensional (matrix) Organizational Structure
  • May incorporate several structures at the same
  • Advantage
  • ability to simultaneously stress both traditional
    corporate areas and important product lines
  • Two mentors
  • Flexibility to move people within functional area
  • Disadvantage
  • multiple lines of authority

Matrix case Philips (then)
  • Dutch electronics mfr.
  • Had two reporting structures
  • To product division
  • To each organization HQ for each country
  • Problem accountability.
  • Who is responsible for performance?
  • Product division or country HQ ?

Philips now
  • Worldwide product divisions
  • Consumer electronics, medical products.
  • National offices report to worldwide org.
  • Encourage employees to work across business units
    and geographic regions by using training and

Virtual Organizational Structure diverse teams
act as a single entity.
  • Employs business units in geographically or
    organizationally dispersed areas
  • Southwest airlines Moms handle reservations at
  • Contract out work to specialty shops
  • Can be permanent or temporary.
  • IS must supportcoordinate virtual distributed
    organization. e-mail, scheduling,
    videoconferencing, etc. since workers mostly
    communicate electronically.

Organizational innovation
  • Downsizing - rightsizing (layoffs or hiring
  • Vertical Integration
  • own all phases of production
  • Horizontal Integration (conglomerates)
  • Going into other lines of business
  • Acquisitions and mergers
  • Keiretsu Japans answer to conglomerates
  • Can be either vertical or horizontally integrated
  • Virtual Integration
  • Business Web value chains act as one company.
  • EX Dell and its suppliers. CISCO and
  • Partnerships / Coopetition
  • Outsourcing/offshoring

PART 3 Globalization. is the closer
integration of the countries and peoples of the
world which has been brought about by the
enormous reduction of costs of TRANSPORTATION and
COMMUNICATION and the breaking down of artificial
barriers to the flows of goods, services,
capital, knowledge, and (to a lesser extent)
people across borders. -Joseph Stiglitz
Offshoring (ch. 14 in OBrien)
  • Also known as Off-shore outsourcing
  • More specific term than outsourcing.
  • Contract out to (or own) offshore company
  • GE, Texas Instruments have subsidiaries in India
  • Move sophisticated work to another country to
    take advantage of lower cost structures (finance,
    banking, call center, IT services programming,
    system management).
  • Countries with innovative, educated in
    IT/engineering, English speaking, workers are
  • Near-shoring to Canada less cultural

Off-Shoring projections
  • Gartner Inc. predicts that 40 of companies with
    revenue of more than 100 million will be trying
    out or using offshore services by the end of
  • Gartner also predicts that 24 of IT jobs will
    head offshore by the end of 2008.
  • Forrester Research Inc. projects that more than 3
    million U.S. white-collar jobs will be lost to
    offshore outsourcing during the next 10 years or
    so -- a half-million of them in IT.

When to outsource?
  • When you can cut costs.
  • Limited opportunity to distinguish competitively
    through the function.
  • When uninterrupted service is not critical.
  • When technical know-how can be maintained
  • When existing IS function is ineffective or
    inferior. Stair, p 523

Outsourcing 7 lenses model
  • An analysis technique used to discover various
    facets of a problem.
  • Forces us to look at many perspectives (lenses)
    of a problem, rather than basic Pro/Con analysis.
  • Systematic framework that captures the forces and
    trends that affect a business problem. Some items
    can be in more than one lens.

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7 Lenses
  • Political issues
  • International
  • National
  • Organizational levels
  • Relates to trade, political tensions,
    competition, etc.
  • Organizational issues
  • Management issues
  • Structural issues
  • Work flow
  • Labor issues
  • Project mgt. etc.

  • Economic issues
  • Labor costs
  • Trade
  • Taxes
  • Currency
  • Other costs
  • Technological
  • Internet
  • Telecommunications
  • Software, shareware
  • Web
  • E-commerce
  • collaboration

  • Cultural
  • Language
  • Religion
  • Values
  • Demographics
  • Gender
  • Way of doing business
  • Educational
  • Problems with existing educational structure.
  • Future education needs for future workforce.

  • Legal
  • Contracts
  • Intellectual property
  • Unions Labor laws
  • Environmental protection laws
  • Data and privacy laws

Finish up
  • Read Jolly technologies and the Delta airlines
  • Fill out worksheet, try to identify issues in the
    7 categories.
  • Discuss.
  • On-line quiz.
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