organization and information systems - knowledgedeals
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Information systems and organizations impact each other. This interaction is complex for both and it is influenced by many mediating factors such as business ... Skiptocontent Thischapterdescribesmainlytheinteractionbetweenorganizationandinformationsystems.Thisincludesimportantfeaturesoforganizationsthatmanagersrequiretouseinformationsystemssuccessfully. TableofContents KeyhighlightsWhatisanorganization?FeaturesoforganizationsBusinessprocessesOrganizationalpoliticsOrganizationalcultureOrganizationalenvironmentOrganizationalstructureImpactofinformationsystemstotheorganizationRelatedsearches Keyhighlights TherelationshipbetweenorganizationsandinformationtechnologyTechnical,behavioral,andmicroeconomicdefinitionsofanorganizationFeaturesoforganizationImpactofinformationsystemsontheorganization. Informationsystemsandorganizationsimpacteachother.Thisinteractioniscomplexforbothanditisinfluencedbymanymediatingfactorssuchasbusinessprocesses,organizationalculture,environment,organizationalstructure,managementdecisions,andorganizationalPolitics.Thereforeitisnecessarytounderstandhowinformationsystemscanimpactthefirmbychangingsocialandworklife. Whatisanorganization? Intechnicaldefinition,anorganizationisreferredtoasastable,formalstructurewhichistakingresourcesfromtheenvironmentandtransformsthemtoproducegoodsandservices(outputs) Accordingtothemicroeconomicdefinitionoforganizations,capitalandlaborresourcesaretransformedbytheorganizationthroughaproductionprocessintogoodsandservices. Inthebehavioraldefinitionoforganizations,itisconsistsofrights,responsibilities,privileges,andobligationsthataresmoothlybalancedoveraparticulartimeperiodthroughconflictaswellasconflictresolution. Featuresoforganizations Anorganizationisalwaysfollowingtheprincipleofefficiency.Thismeans,maximizingoutputusingminimumresources.Sotherearemanyfeaturesthatcanbeseeninanorganization.Itincludesbusinessprocesses,organizationalculture,environment,organizationalpolitics,organizationalstructure,goals,constituencies,andleadershipstyles.Allofthesefeaturesinfluenceinformationsystems. Businessprocesses Simply,thebusinessprocessesarethetasksandbehaviorsusedbyanorganizationinordertoachievedesiredgoalsandobjectives.Businessprocessesaretheflowsofinformation,materials,andknowledgeintheorganization.Soanorganizationcanbeidentifiedasacollectionofthebusinessprocess.Mainlytherearesomecommonbusinessprocesseswhichincludeaccounting&financeprocesses,manufacturingprocesses,marketingprocesses,andhumanresources. Whenanorganizationoperatingitsbusinessprocesses,theorganizationneedstoengagewithvariousinformation.Stakeholdersofthebusinessprovidemuchinformationtoeachbusinessprocess;inthiscase,informationsystemshelptomanagethebusinessprocesswelltoensureorganizationalperformance. Organizationalpolitics Basically,organizationalpoliticsreferstobehaviorsorattitudesthatinfluencepositivelyornegativelyonothers.Organizationalpoliticshelptodevelopinterpersonalrelationshipsintheorganizationandincreaseorganizationalperformance.Thepeoplewhoworkintheorganizationoperatetheirjobsunderdifferentjobpositionswithdifferentspecialties.Soallofthemhavedifferentpointsofviewabouthowresourcesandotherthingsshouldbedistributed.Thesedifferencesaresoimportanttomanagersaswellasemployeesintheorganization.Becauseofthesedifferences,theorganizationmayhavetofacestrugglesforcompetition,Resources,andconflict.Thepoliticalresistancecanbeidentifiedasthegreatdifficultyamongtherestofthedifficulties-especiallywhentheorganizationinvestsininformationsystems,itwillmakeabigchangeinbusinessobjectives,businessprocesses,andstrategies.Inthiscase,thepeoplewhoknowhowtoworkwithorganizationalpoliticswillbecomesuccessfulintheorganizationratherthanless-skilledpeople. Organizationalculture Organizationalcultureincludesbeliefs,assumptions,anorganization’sexpectations,andvaluesthatinteractwiththesocialandpsychologicalenvironmentoftheentity.Organizationalcultureorcorporateculturecoversasetofassumptionsaboutwhattoproduce,howtoproduce,whereshouldproduce,andforwhomtoproduce.Sothisisapowerfulelementfortheorganization.Byreasonofthisculture,theorganizationhighlyconsidertechnologicalchangeandtheimpactsontheorganization’sculture. Organizationalenvironment Tooperatebusinessprocessessmoothly,theorganizationalenvironmentisanecessityfortheorganization.Everyorganizationisdependingonandopenstoitsphysicalandsocialenvironment.So,bothorganizationandenvironmenthaveareciprocalrelationship. Basically,theenvironmentchangesfasterthanorganizations.Thesechangesmakestrengths,weaknesses,opportunities,andthreatstotheorganization.Thereforeeveryorganizationdoesanenvironmentalanalysisbeforeoperatingtheirbusinessprocesses. Inthiscase,informationsystemsplayavitalroleasaninstrumentfortheorganization.Informationsystemsprovideinformationabouttheircustomers,suppliers,andotherrelatedinformationtohelpmanagersinthedecision-makingprocess.Also,informationsystemshelpmanagerstoidentifyenvironmentalchangesthattheorganizationneedstorespondto. Organizationalstructure Everyorganizationintheworld,haveanorganizationalstructureorshape.AccordingtoMintzberg’sclassification,therearefivebasickindsoforganizationalstructureswhichincludeentrepreneurialstructure,machinebureaucracy,divisionalsizedbureaucracy,professionalbureaucracy,andadhocracy.Thestructureofanorganizationissoimportantforinformationsystems.Awell-designedstructureisveryusefulfortheflowofinformationamongtheorganizationanditisveryeasytomakeimproveddecisionsforeachmanagementlevel. Impactofinformationsystemstotheorganization Whenconsideringaboutimpactsofinformationsystems,informationtechnologyinfluenceonrelativecostsofcapitalaswellasthecostofinformation.Informationsystemscanbeidentifiedasafactorofproductioncost.Itcanbeusedasasubstitutefactorinsteadoftraditionalcapitalandlabor.Byreasonofinformationsystems,thecostofinformationtechnologywilldecreaseanditalsoinfluencesotherformsofcapital(machineryorbuildings).It’snotonlyaboutthecostofIT,butalsoaffectsthequalityofinformationaswellastheeconomicsofinformation. Inadditiontothat,informationtechnologycanreducethecostofinternalmanagementtoo.Whenanorganizationstartsgrowinginsizeandscope,eventuallytheagencycostsorcoordinationcostswillincrease.Thereasonforincreasingthesecostsismoreeffortinmanagingandsupervisingtheworkforceintheorganization.Soinformationtechnologyenablesorganizationstoincreaserevenuebyreducingagencycosts. 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