3. INFORMATION SYSTEMS, ORGANIZATIONS,

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3. INFORMATION SYSTEMS, ORGANIZATIONS, BUSINESS
PROCESSES
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LEARNING OBJECTIVES

• DESCRIBE CHARACTERISTICS OF ORGANIZATIONS
• RELATE INFO SYSTEMS TO ORGANIZATIONS
• COMPARE MODELS DESCRIBING SYSTEM ORIGINS

3.2
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LEARNING OBJECTIVES

• COMPARE THEORIES OF ORGANIZATIONS
• ANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATION
• DESCRIBE IMPLICATIONS OF SYSTEM DESIGN
  IMPLEMENTATION

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MANAGEMENT CHALLENGES

• DIFFICULTIES OF MANAGING CHANGE
• ADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL
  FIT

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ORGANIZATIONS INFORMATION TECHNOLOGY
MEDIATING FACTORS Environment
Culture Structure
Standard Procedures Politics
Management Decisions
Chance
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ORGANIZATION

• TECHNICAL DEFINITION
• STABLE, FORMAL STRUCTURE
• TAKES RESOURCES FROM ENVIRONMENT
• PROCESSES THEM
• TO PRODUCE OUTPUTS

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BEHAVIORAL VIEW OF ORGANIZATIONS

• STRUCTURE Hierarchy Division of
  labor Rules, Procedures
• PROCESS Rights/Obligations
  Privileges/Responsibilities Values Norms
  People

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STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS

• CLEAR DIVISION OF LABOR
• HIERARCHY
• EXPLICIT RULES PROCEDURES
• IMPARTIAL JUDGMENTS
• TECHNICAL QUALIFICATIONS
• MAXIMUM ORGANIZATIONAL EFFICIENCY

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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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ORGANIZATION ITS ENVIRONMENT
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SALIENT FEATURES OF ORGANIZATIONS

• COMMON FEATURES
• FORMAL STRUCTURE
• STANDARD OPERATING PROCEDURES
• POLITICS
• CULTURE

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SALIENT FEATURES OF ORGANIZATIONS

• UNIQUE FEATURES
• ORGANIZATIONAL TYPE
• ENVIRONMENTS, GOALS, POWER
• CONSTITUENCIES, FUNCTION
• LEADERSHIP, TASKS
• TECHNOLOGY
• LEVELS

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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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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

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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

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PROBLEMS OF ALL WORK GROUPS

• MAKING ARRANGEMENTS
• ATTENDING MEETINGS
• LONG AGENDA
• COST OF MEETINGS
• BETWEEN-MEETING ACTIVITIES

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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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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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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

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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

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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

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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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HOW INFO SYSTEMS AFFECT ORGANIZATIONS

• POSTINDUSTRIAL THEORY Flatter organizations
  dominated by knowledge workers decentralized
  decision making
• CULTURAL THEORY Information technology must fit
  organizations culture to be accepted

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HOW INFO SYSTEMS AFFECT ORGANIZATIONS

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

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IMPLEMENTING CHANGE
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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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IMPLICATIONS FOR DESIGN UNDERSTANDING INFO
SYSTEMS

• ENVIRONMENT
• STRUCTURE
• CULTURE
• POLITICS

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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. INFORMATION SYSTEMS, ORGANIZATIONS, BUSINESS
PROCESSES
3.30