how do i use information systems?Impact of information system on organization pptInformation is being produced faster than managers can process itwalmart's continuous replenishment system is an example of a firm using information systems to:Positive impact of information system on organizationImpact of information system on organizationImpact of information systems on organizations PDF

Organizations and Information Systems

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Organizations and information systems have a mutual influence on each other. The information needs of an organization affect the design of information systems ... ChapterContents OrganizationsandInformationSystems Organizationsandinformationsystemshaveamutualinfluenceoneachother.Theinformationneedsofanorganizationaffectthedesignofinformationsystemsandanorganizationmustbeopenitselftotheinfluencesofinformationsystemsinordertomorefullybenefitfromnewtechnologies.Theorganization'senvironment,culture,structure,standardoperatingprocedures,politicsandmanagementdecisionsaremediatingfactorsthatinfluencetheinteractionbetweeninformationtechnologyandorganizations.Figure3-1 FIGURE3-1THETWO-WAYRELATIONSHIPBETWEENORGANIZATIONSANDINFORMATIONTECHNOLOGYThiscomplextwo-wayrelationshipismediatedbymanyfactors,nottheleastofwhicharethedecisionsmade—ornotmade—bymanagers.Otherfactorsmediatingtherelationshipincludetheorganizationalculture,structure,politics,businessprocesses,andenvironment. Fromatechnicalview,anorganizationisaformal,legal,socialstructurethatprocessesresources,orinputs,toproduceoutputs.Thefirmisseenasinfinitelymalleable,withcapitalandlaborsubstitutingforeachotherquiteeasily. Figure3-2 FIGURE3-2THETECHNICALMICROECONOMICDEFINITIONOFTHE ORGANIZATIONInthemicroeconomicdefinitionoforganizations,capitalandlabor(theprimaryproductionfactors providedbytheenvironment)aretransformedbythefirmthroughtheproductionprocessinto productsandservices(outputstotheenvironment).Theproductsandservicesareconsumedbythe environment,whichsuppliesadditionalcapitalandlaborasinputsinthefeedbackloop. Abehavioraldefinitionofanorganizationisthatitisacollectionofrights,privileges,obligations,andresponsibilitiesthatisbalancedovertimethroughconflictandconflictresolution.Thisdefinitionsuggeststhatbuildingnewinformationsystemsorrebuildingoldonesinvolvesmuchmorethanatechnicalrearrangementofmachinesorworkers.Technologicalchangerequireschangesinwhoownsandcontrolsinformation,whohastherighttoaccessandupdatethatinformation,andwhomakesdecisionsaboutwhom,when,andhow. Figure3-3 FIGURE3-3THEBEHAVIORALVIEWOFORGANIZATIONSThebehavioralviewoforganizationsemphasizesgrouprelationships,values,andstructures. Thetechnicalandbehavioralviewsoforganizationscomplementoneanother.Thetechnicaldefinitiondescribeshowthousandsoffirmsincompetitivemarketscombinecapitalandlaborwithinformationtechnology,whereasthebehavioralmodeldescribeshowtechnologyaffectstheorganization'sinnerworkings. Allmodernorganizationscanbeseenasbureaucracieswhichsharesomeessentialcharacteristics:cleardivisionoflabor,hierarchy,explicitrulesandprocedures,impartialjudgments,technicalqualificationsforpositions,andmaximumorganizationalefficiency.Additionally,allorganizationsdeveloproutinesandbusinessprocedures,politics,andcultures. Businessprocessesarecollectionsofroutines,orstandardoperatingprocedures(SOPs),whichenableafirm'sefficiency. Figure3-4 FIGURE3-4ROUTINES,BUSINESSPROCESSES,ANDFIRMSAllorganizationsarecomposedofindividualroutinesandbehaviors,acollectionofwhichmakeupabusinessprocess.Acollectionofbusinessprocessesmakeupthebusinessfirm.Newinformationsystemapplicationsrequirethatindividualroutinesandbusinessprocesseschangetoachievehighlevelsoforganizationalperformance. Organizationalpoliticsreflectsthepoliticalstrugglesduetodivergentconcernsandperspectivesofindividualsandgroupswithintheorganization.Politicalresistanceisoneofthegreatdifficultiesofbringingaboutorganizationalchange. Organizationalcultureisthesetoffundamentalassumptionsaboutwhatproductstheorganizationshouldproduce,howitshouldproducethem,where,andforwhom.Organizationalcultureisapowerfulunifyingforcethatrestrainspoliticalconflict.However,technologicalchangethatthreatenscommonlyheldculturalassumptionsusuallymeetsgreatresistance. Notwoorganizationsareidentical.Organizationshavedifferentstructures,goals,constituencies,leadershipstyles,tasks,andsurroundingenvironments.Differencesinthesecharacteristicswillaffectthetypeofinformationsystemsusedbytheorganization. Organizationshavedifferentsocialandphysicalenvironments,whichexertapowerfulinfluenceontheorganization'sstructure.Informationsystemshelporganizationsrespondtotheirsurroundingenvironments,fromwhichtheydrawresourcesandtowhichtheysupplygoodsandservices.Informationsystemsarekeytoolsforenvironmentalscanning,helpingmanagersidentifyexternalchangesthatmightrequireanorganizationalresponse. Figure3-5 FIGURE3-5ENVIRONMENTSANDORGANIZATIONSHAVERECIPROCAL RELATIONSHIPSEnvironmentsshapewhatorganizationscando,butorganizationscaninfluencetheirenvironments anddecidetochangeenvironmentsaltogether.Informationtechnologyplaysacriticalroleinhelping organizationsperceiveenvironmentalchangeandinhelpingorganizationsactontheirenvironment. TheMintzbergclassificationoforganizationsincludesfivecategories: Entrepreneurialstructure:Young,smallfirm,suchasasmallstartupbusiness,inafast-changingenvironment.Ithasasimplebusinessstructureandismanagedbyanentrepreneurservingasitssinglechiefexecutiveofficer. Machinebureaucracy:Largebureaucracy,suchasamidsizemanufacturingfirm,existinginaslowlychangingenvironment,producingstandardproducts.Itisdominatedbyacentralizedmanagementteamandcentralizeddecisionmaking. Divisionalizedbureaucracy:Combinationofmultiplemachinebureaucracies,suchasaFortune500firm,eachproducingadifferentproductorservice,alltoppedbyonecentralheadquarters. Professionalbureaucracy:Knowledge-basedorganization(suchaslawfirms,schoolsystems,hospitals)wheregoodsandservicesdependontheexpertiseandknowledgeofprofessionals.Dominatedbydepartmentheadswithweakcentralizedauthority. Adhocracy:Taskforceorganization(suchasaconsultingfirm)thatmustrespondtorapidlychangingenvironments.Consistsoflargegroupsofspecialistsorganizedintoshort-livedmultidisciplinaryteamsandhasweakcentralmanagement. Organizationsalsodifferintheirultimategoals,thetypesofpowerusedtoachievethem,thegroupsandconstituenciestheyserve,thenatureofleadershipwithintheorganization,thetasksperformed,andthetechnologyused. ReturntoTop

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