3.1 prof jess role @ ueab 2010 3 3 information systems, organizations, management, and strategy

3.3.11Prof Jess Role @ UEAB 2010

33 INFORMATION INFORMATION SYSTEMS, SYSTEMS,

ORGANIZATIONS, ORGANIZATIONS, MANAGEMENT, MANAGEMENT, AND STRATEGYAND STRATEGY


LEARNING OBJECTIVESLEARNING OBJECTIVES

• IDENTIFY SALIENT CHARACTERISTICS IDENTIFY SALIENT CHARACTERISTICS OF ORGANIZATIONSOF ORGANIZATIONS

• ANALYZE RELATIONSHIP BETWEEN ANALYZE RELATIONSHIP BETWEEN INFO SYSTEM & ORGANIZATIONSINFO SYSTEM & ORGANIZATIONS

**


LEARNING OBJECTIVESLEARNING OBJECTIVES

• CONTRAST THEORIES OF CONTRAST THEORIES OF ORGANIZATIONSORGANIZATIONS

• DESCRIBE DECISION PROCESSESDESCRIBE DECISION PROCESSES• EVALUATE ROLE OF INFORMATION EVALUATE ROLE OF INFORMATION

SYSTEMS IN SUPPORTING SYSTEMS IN SUPPORTING BUSINESS STRATEGYBUSINESS STRATEGY

**


MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• ORGANIZATIONS & INFORMATION ORGANIZATIONS & INFORMATION SYSTEMSSYSTEMS

• CHANGING ROLES OF SYSTEMS IN CHANGING ROLES OF SYSTEMS IN ORGANIZATIONSORGANIZATIONS

• MANAGERS, DECISION MAKING & MANAGERS, DECISION MAKING & INFORMATION SYSTEMSINFORMATION SYSTEMS

• INFORMATION SYSTEMS & BUSINESS INFORMATION SYSTEMS & BUSINESS STRATEGYSTRATEGY

**


MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

1. SUSTAINABILITY OF 1. SUSTAINABILITY OF COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE

2. FITTING TECHNOLOGY & 2. FITTING TECHNOLOGY & ORGANIZATIONORGANIZATION

**


MEDIATING FACTORS:\MEDIATING FACTORS:\ Environment Environment

CultureCulture

StructureStructure

Standard ProceduresStandard Procedures

politics politics

Management Decisions Management Decisions

ChanceChance

ORGANIZATIONS & INFORMATION ORGANIZATIONS & INFORMATION TECHNOLOGYTECHNOLOGY

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY


VP VP VP

CEOORGANIZATIONORGANIZATION

TECHNICAL DEFINITION: TECHNICAL DEFINITION:

STABLE, FORMAL STRUCTURESTABLE, FORMAL STRUCTURE

• TAKES RESOURCES FROM TAKES RESOURCES FROM ENVIRONMENT AND PROCESSES ENVIRONMENT AND PROCESSES THEM TO PRODUCE OUTPUTSTHEM TO PRODUCE OUTPUTS

**


TECHNICAL MICROECONOMIC DEFINITION TECHNICAL MICROECONOMIC DEFINITION OF ORGANIZATIONOF ORGANIZATION

OUTPUTS TO ENVIRONMENT

ORGANIZATIONORGANIZATION

PRODUCTION PROCESS

INPUTS FROMENVIRONMENT


ORGANIZATIONORGANIZATION

BEHAVIORAL DEFINITION: BEHAVIORAL DEFINITION:

COLLECTION OF:COLLECTION OF:

• RIGHTS, PRIVILEGES, RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIESOBLIGATIONS, RESPONSIBILITIES

• DELICATELY BALANCEDDELICATELY BALANCED

• CONFLICT RESOLUTIONCONFLICT RESOLUTION

**


EN

VIR

ON

ME

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AL

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SO

UR

CE

SE

NV

IRO

NM

EN

TA

L R

ES

OU

RC

ES

EN

VIR

ON

ME

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AL

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TP

UT

SE

NV

IRO

NM

EN

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L O

UT

PU

TS

FORMAL ORGANIZATIONFORMAL ORGANIZATION

STRUCTURE:STRUCTURE:HierarchyHierarchyDivision of laborDivision of laborRules, ProceduresRules, Procedures

PROCESS:PROCESS:Rights/ObligationsRights/Obligations Privileges/ResponsibilitiesPrivileges/ResponsibilitiesValuesValues

NormsNormsPeoplePeople


STRUCTURAL CHARACTERISTICS OF ALL STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONSORGANIZATIONS

• CLEAR DIVISION OF LABORCLEAR DIVISION OF LABOR• HIERARCHYHIERARCHY• EXPLICIT RULES & PROCEDURESEXPLICIT RULES & PROCEDURES• IMPARTIAL JUDGMENTSIMPARTIAL JUDGMENTS• TECHNICAL QUALIFICATIONSTECHNICAL QUALIFICATIONS• MAXIMUM ORGANIZATIONAL MAXIMUM ORGANIZATIONAL

EFFICIENCYEFFICIENCY

**


COMMON FEATURES OF COMMON FEATURES OF ORGANIZATIONSORGANIZATIONS

• FORMAL STRUCTUREFORMAL STRUCTURE

• STANDARD OPERATING STANDARD OPERATING PROCEDURESPROCEDURES

• POLITICSPOLITICS

• CULTURECULTURE

**


UNIQUE FEATURES OF UNIQUE FEATURES OF ORGANIZATIONSORGANIZATIONS

• ORGANIZATIONAL TYPES ORGANIZATIONAL TYPES

• ENVIRONMENTS, GOALS, POWERENVIRONMENTS, GOALS, POWER

• CONSTITUENCIES, FUNCTIONCONSTITUENCIES, FUNCTION

• LEADERSHIP, TASKSLEADERSHIP, TASKS

• TECHNOLOGYTECHNOLOGY

• BUSINESS PROCESSESBUSINESS PROCESSES

**


ORGANIZATIONAL STRUCTURESORGANIZATIONAL STRUCTURES

• ENTREPRENEURIAL: Startup businessENTREPRENEURIAL: Startup business• MACHINE BUREAUCRACY: Mid-sized MACHINE BUREAUCRACY: Mid-sized

manufacturing firmmanufacturing firm• DIVISIONALIZED BUREAUCRACY: DIVISIONALIZED BUREAUCRACY:

Fortune 500Fortune 500• PROFESSIONAL BUREAUCRACY: Law PROFESSIONAL BUREAUCRACY: Law

firms, hospitalsfirms, hospitals• ADHOCRACY: Consulting firmADHOCRACY: Consulting firm

**


ORGANIZATION & ITS ENVIRONMENTORGANIZATION & ITS ENVIRONMENT

THE SCHOOL

INFORMATION SYSTEMSINFORMATION SYSTEMS

THE ENVIRONMENT:THE ENVIRONMENT:

RESOURCES & CONSTRAINTS

GOVERNMENTS

COMPETITORS

FINANCIAL INSTITUTIONS

CULTURE

KNOWLEDGE

TECHNOLOGY


INFORMATION SYSTEMS DEPARTMENTINFORMATION SYSTEMS DEPARTMENT

• PROGRAMMERS: Write softwarePROGRAMMERS: Write software• SYSTEMS ANALYSTS: Translate SYSTEMS ANALYSTS: Translate

business problems into solutionsbusiness problems into solutions• ISIS MANAGERS: Department leaders MANAGERS: Department leaders• END USERS: Department reps for END USERS: Department reps for

whom applications are whom applications are developed developed

**


THE ORGANIZATIONTHE ORGANIZATION SENIOR MANAGEMENTSENIOR MANAGEMENT MAJOR END-USERS (DIVISIONS) MAJOR END-USERS (DIVISIONS)

INFORMATION SYSTEMS DEPARTMENTINFORMATION SYSTEMS DEPARTMENT

IT Infrastructure:IT Infrastructure:

HardwareHardwareSoftwareSoftwareData NetworksData Networks

Information System Information System Specialists:Specialists:

CIOCIOManagersManagersSystem AnalystsSystem AnalystsSystem DevelopersSystem DevelopersProgrammersProgrammersNetwork SpecialistsNetwork SpecialistsDatabase AdministratorDatabase AdministratorClericalClerical


HOW INFO SYSTEMS HOW INFO SYSTEMS AFFECT ORGANIZATIONSAFFECT ORGANIZATIONS

• MICROECONOMIC MODEL: Info MICROECONOMIC MODEL: Info technology is a factor of production, technology is a factor of production, like capital & laborlike capital & labor

• TRANSACTION COST THEORY: TRANSACTION COST THEORY: Firms attempt to minimize Firms attempt to minimize transaction costs internally & transaction costs internally & externallyexternally

**


• AGENCY THEORY: Firm is nexus of AGENCY THEORY: Firm is nexus of contracts among self-interested parties contracts among self-interested parties requiring supervisionrequiring supervision

• BEHAVIORAL THEORIES: Info systems BEHAVIORAL THEORIES: Info systems could change hierarchy of decision could change hierarchy of decision making; reduce need for middle making; reduce need for middle management & clerical support; distribute management & clerical support; distribute informationinformation

**

HOW INFO SYSTEMS HOW INFO SYSTEMS AFFECT ORGANIZATIONSAFFECT ORGANIZATIONS


IMPLEMENTING CHANGEIMPLEMENTING CHANGE

Source: Leavitt, Handbook of Organization (1965)

TASKTASK

PEOPLEPEOPLETECHNOLOGYTECHNOLOGY

STRUCTURESTRUCTURE

RESISTANCERESISTANCE

MUTUALMUTUALADJUSTMENTADJUSTMENT


INTERNET & ORGANIZATIONSINTERNET & ORGANIZATIONS

• E-mail communicationE-mail communication

• Electronic handbooks published & Electronic handbooks published & revisedrevised

• Interactive training classesInteractive training classes

• Employees review, update personal Employees review, update personal datadata

**


ROLE OF MANAGERSROLE OF MANAGERS

• CLASSICAL: Describe functions- CLASSICAL: Describe functions- plan, organize, coordinate, decide, plan, organize, coordinate, decide, controlcontrol

• BEHAVIORAL: Based on BEHAVIORAL: Based on observations of managers on the jobobservations of managers on the job

**


INFO SYSTEMS, LEVELS, DECISIONSINFO SYSTEMS, LEVELS, DECISIONS

TPSOAS MIS

KWS

DSS

ESS

ORGANIZATIONAL LEVELORGANIZATIONAL LEVELTYPE OFTYPE OFDECISIONDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS RECEIVABLE

ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS

SEMI- BUDGETSTRUCTURED PREPARATION

PROJECTSCHEDULING

FACILITYLOCATION

UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS


STAGES OF STAGES OF DECISION MAKINGDECISION MAKING• INTELLIGENCE: Collect INTELLIGENCE: Collect information; information;

identify problemidentify problem• DESIGN: Conceive alternatives; select DESIGN: Conceive alternatives; select

criteriacriteria• CHOICE: Use criteria to evaluate CHOICE: Use criteria to evaluate

alternatives; select alternatives; select • IMPLEMENTATION: Put decision into IMPLEMENTATION: Put decision into

effect; allocate resources; controleffect; allocate resources; control**

SOURCE: Simon, The New Science of Management Decision (1960)


• RATIONAL: Comprehensive RATIONAL: Comprehensive rationality; evaluate all rationality; evaluate all alternativesalternatives

• SYSTEMATIC: Structured, formal SYSTEMATIC: Structured, formal methodmethod

• INTUITIVE: Trial & error, unstructured, INTUITIVE: Trial & error, unstructured, multiple approachmultiple approach

**

INDIVIDUAL MODELS OFINDIVIDUAL MODELS OFDECISION MAKINGDECISION MAKING


• BUREAUCRATIC: Follow BUREAUCRATIC: Follow standard operating procedures standard operating procedures (SOP)(SOP)

• POLITICAL: Key groups compete POLITICAL: Key groups compete and bargainand bargain

• ““GARBAGE CANGARBAGE CAN””: Organizations not : Organizations not rational; solutions accidentalrational; solutions accidental

**

ORGANIZATIONAL ORGANIZATIONAL MODELS OF MODELS OF DECISION MAKINGDECISION MAKING


BUSINESSBUSINESS LEVEL STRATEGY LEVEL STRATEGY

LOCK IN CUSTOMERS & SUPPLIERSLOCK IN CUSTOMERS & SUPPLIERS• SUPPLY CHAIN MANAGEMENT: Stockless SUPPLY CHAIN MANAGEMENT: Stockless

inventories, continuous replenishment, inventories, continuous replenishment, just-in-time deliveryjust-in-time delivery

• INTRA FIRM STRATEGY: Product INTRA FIRM STRATEGY: Product differentiation, focused differentiation, differentiation, focused differentiation, low-cost producerlow-cost producer

• EFFICIENT CUSTOMER RESPONSE: EFFICIENT CUSTOMER RESPONSE: Point-of-sale systems, dataminingPoint-of-sale systems, datamining

**


COMPETITIVE FORCES MODELCOMPETITIVE FORCES MODEL

SUBSTITUTE PRODUCTS &

SERVICES

NEW ACCADEMIC ENTRANTS

SUPPLIERS CUSTOMERS

SCHOOLTRADITIONAL

SCHOOLS COMPETITORS

EDUCATION EDUCATION SYSTEMSYSTEM


COMPETITIVE FORCES MODELCOMPETITIVE FORCES MODEL

SUBSTITUTE COURSES SERVICES

NEW COURSES ENTRANTS

LINK SCHOOLS

STUDENT

EDUCATION EDUCATION SETSET

INSTITUTIONAL COMPETITORS

SCHOOL 4SCHOOL 3

SCHOOL 2SCHOOL 1


INFORMATION INFORMATION SYSTEMS, SYSTEMS,

ORGANIZATIONS, ORGANIZATIONS, MANAGEMENT, MANAGEMENT, AND STRATEGYAND STRATEGY

3.1 prof jess role @ ueab 2010 3 3 information systems, organizations, management, and strategy

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