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    ChapterChapter--33Information Systems Organization,Information Systems Organization,

    Management & StrategyManagement & Strategy

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    ThisThis ChapterChapter exploresexplores thethe relationshiprelationship betweenbetween Organization,Organization,

    Management,Management, InformationInformation SystemsSystems && BusinessBusiness StrategyStrategy..

    1.1. OrganizationsOrganizations && InformationInformation SystemsSystems

    Mediating Factors1. Environment

    2. Culture

    3. Structure

    4. Business Process

    5. Politics

    6. Management Decisions

    7. Chance

    Organizations Information

    Technology

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    ISIS && organizationsorganizations influenceinfluence oneone anotheranother..

    ISIS mustmust bebe alignedaligned withwith thethe orgorg.. toto provideprovide informationinformation

    thatthat importantimportant groupsgroups withinwithin thethe orgorg.. needneed..

    AtAt thethe samesame time,time, thethe orgorg mustmust bebe awareaware ofof && bebe openopen toto

    thethe influencesinfluences ofof ISIS inin orderorder toto benefitbenefit fromfrom newnew

    technologiestechnologies..

    TheThe InteractionInteraction betweenbetween ITIT && orgorg isis veryvery complexcomplex && isis

    influencedinfluenced byby aa greatgreat manymany mediatingmediating factors,factors, includingincluding thethe

    orgorg.. structure,structure, politics,politics, culture,culture, surroundingsurrounding envtenvt..,, &&

    managementmanagement decisionsdecisions

    ManagerManager mustmust bebe awareaware aboutabout ISIS..

    TheyThey cannotcannot successfullysuccessfully designdesign newnew systemssystems oror understandunderstand

    existingexisting systemssystems withoutwithout understandingunderstanding orgorg..

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    ManagersManagers dodo decidedecide whatwhat systemssystems willwill bebe built,built, whatwhat theythey

    willwill do,do, howhow theythey willwill bebe implementedimplemented..

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    What is an organization ?What is an organization ?

    AnAn orgorg isis anan stable,stable, formal,formal, socialsocial structurestructure thatthat takestakes resourcesresources fromfrom

    thethe envtenvt.. && processprocess themthem toto produceproduce outputoutput.. (technical(technical Definition)Definition)

    Organization

    Inputs from

    the Envt.

    Outputs to

    the Envt.

    Production Process

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    BehavioralBehavioral DefinitionDefinition ofofOrgOrg..

    AA collectioncollection ofof rights,rights, privileges,privileges, obligationsobligations && responsibilitiesresponsibilities thatthatareare delicatelydelicately balancedbalanced overover aa periodperiod ofof timetime throughthrough conflictconflict &&

    conflictconflict resolutionresolution

    FORMAL ORGANIZATION

    Environmental

    Resources

    Environmental

    Output

    Structure

    Hierarchy

    Divisions of labor

    Rules, Procedures

    Business Process

    Process

    Rights

    Responsibilities

    Values

    People

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    CommonCommon FeaturesFeatures ofof OrganizationOrganization

    1.1. FormalFormal StructureStructure

    2.2. StandardStandard OperatingOperating ProceduresProcedures (SOPs)(SOPs)

    3.3. PoliticsPolitics

    4.4. CultureCulture

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    Organizational StructureOrganizational Structure

    Organizational TypeOrganizational Type ExampleExample

    EntrepreneurialEntrepreneurial

    StructureStructure

    Small startSmall start--up Businessup Business

    Machine BureaucracyMachine Bureaucracy Mid size Manufacturing FirmMid size Manufacturing Firm

    DivisionalzedDivisionalzed

    BureaucracyBureaucracy

    Fortune 500 firms such asFortune 500 firms such as

    General MotorsGeneral Motors

    ProfessionalProfessional

    BureaucracyBureaucracy

    Law firms, School SystemsLaw firms, School Systems

    AdhocracyAdhocracy Consulatancy Consulatancy

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    2.2. The Changing Role of Information SystemsThe Changing Role of Information Systems

    in Organizationin Organization

    InformationInformation TechnologyTechnology InfrastructureInfrastructure && InformationInformation

    TechnologyTechnology ServicesServices

    ITIT Services,Services, ManyMany typestypes ofof specialistspecialist && groupsgroups areare responsibleresponsible forfor

    designdesign && managementmanagement ofof thethe orgorg ITIT InfrastructureInfrastructure

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    THE

    O

    RGANIZATIO

    NSenior Management

    Major end users (division)

    Information Systems Department

    IT Infrastructure

    Hardware

    Software

    Data Storage

    Networks

    Information System Specialists

    CIO

    Manager

    Systems Analyst

    System Designers

    Programmers

    Network SpecialistsDatabase Administrator

    Clerical

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    The Internet & OrganizationsThe Internet & Organizations

    TheThe Internet,Internet, especiallyespecially thethe WWWWWW isis beginningbeginning toto havehave anan importantimportant

    impactimpact onon thethe relationshipsrelationships betweenbetween firmsfirms && externalexternal entitiesentities..

    TheThe InternetInternet increasesincreases thethe accessibility,accessibility, storagestorage && distributiondistribution ofof

    informationinformation && knowledgeknowledge forfor orgorg..

    EgEg::-- email,email, wwwwww

    EgEg::-- ICICIICICI ,, HDFCHDFC

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    33)) Managers,Managers, DecisionDecision MakingMaking && InformationInformation SystemsSystems

    TheThe RoleRole ofof ManagersManagers inin OrganizationsOrganizations

    ManagersManagers playplay aa keykey rolerole inin orgorg.. TheirTheir responsibilitiesresponsibilities rangerange fromfrom

    makingmaking decisions,decisions, toto writingwriting reports,reports, toto attendingattending meetings,meetings, etcetc..

    1.1. ClassicalClassical DescriptionDescription ofof ManagementManagement

    TheThe ClassicalClassical modelmodel ofof managementmanagement whichwhich describesdescribes whatwhat managersmanagers dodo.. HenriHenri

    FayolFayol && otherother earlyearly writers writers firstfirst describeddescribed thethe fivefive classicalclassical functionsfunctions ofof

    managersmanagers

    1.1. PlanningPlanning

    2.2. OrganizingOrganizing

    3.3. CoordinatingCoordinating

    4.4. DecidingDeciding

    5.5. ControllingControlling

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    2.2. BehavioralBehavioral ModelsModels

    BehavioralBehavioral ModelsModels statestate thatthat actualactual behaviorbehavior ofof managermanagerappearsappears toto bebe lessless systematic,systematic, moremore informal,informal, lessless reflective,reflective,moremore reactivereactive ,, lessless wellwell organizedorganized ..

    3.3. MintzbergMintzberg ModelsModels

    InterpersonalInterpersonal RolesRoles

    Figureh

    eadFigureh

    ead LeaderLeader

    LiaisonLiaison

    InformationalInformational RolesRoles

    NerveNerve CenterCenter

    DisseminatorDisseminator

    SpokespersonSpokesperson DecisionalDecisional RolesRoles

    EntrepreneurEntrepreneur

    DisturbanceDisturbance HandlerHandler

    ResourceResource AllocatorAllocator

    NegotiatorNegotiator

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    ManagersManagers && DecisionDecision MakingMaking ProcessProcessOrganizational Level

    Operational Knowledge Management StrategicTypes of

    Decision

    Structured

    Semi

    Structured

    Unstructured

    TPS

    KWS

    Office

    System MIS

    DSS

    ESS

    Accounts Receivable

    Product Design

    Electronic

    Scheduling

    Budget

    Preparation

    Production facility location

    New Product

    New Market

    Project Scheduling


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