3.1. LEARNING OBJECTIVES DESCRIBE CHARACTERISTICS OF ORGANIZATIONSDESCRIBE CHARACTERISTICS OF...

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LEARNING OBJECTIVESLEARNING OBJECTIVES

• DESCRIBE CHARACTERISTICS OF DESCRIBE CHARACTERISTICS OF ORGANIZATIONSORGANIZATIONS

• RELATE INFO SYSTEMS TO RELATE INFO SYSTEMS TO ORGANIZATIONSORGANIZATIONS

• COMPARE MODELS DESCRIBING COMPARE MODELS DESCRIBING SYSTEM ORIGINSSYSTEM ORIGINS

LEARNING OBJECTIVESLEARNING OBJECTIVES

• COMPARE THEORIES OF COMPARE THEORIES OF ORGANIZATIONSORGANIZATIONS

• ANALYZE IMPACT OF INFO SYSTEM ANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATIONON ORGANIZATION

• DESCRIBE IMPLICATIONS OF SYSTEM DESCRIBE IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATIONDESIGN & IMPLEMENTATION

MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• DIFFICULTIES OF MANAGING DIFFICULTIES OF MANAGING CHANGECHANGE

• ADJUSTING TECHNOLOGY AND ADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL FITORGANIZATION FOR OPTIMAL FIT

MEDIATING FACTORS:MEDIATING FACTORS: Environment Environment CultureCultureStructure Structure Standard Procedures Standard Procedures Politics Politics Management Decisions Management Decisions ChanceChance

ORGANIZATIONS & ORGANIZATIONS & INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

VP VP VP

CEOORGANIZATIONORGANIZATION

TECHNICAL DEFINITION:TECHNICAL DEFINITION:

STABLE, FORMAL STRUCTURESTABLE, FORMAL STRUCTURE• TAKES RESOURCES FROM TAKES RESOURCES FROM

ENVIRONMENTENVIRONMENT• PROCESSES THEMPROCESSES THEM• TO PRODUCE OUTPUTSTO PRODUCE OUTPUTS

BEHAVIORAL VIEW OF ORGANIZATIONSBEHAVIORAL VIEW OF ORGANIZATIONS

STRUCTURE:STRUCTURE: HierarchyHierarchyDivision of Division of

laborlabor Rules, ProceduresRules, Procedures

PROCESS:PROCESS: Rights/Rights/ObligationsObligations Privileges/ResponsibilitiesPrivileges/Responsibilities ValuesValues

NormsNormsPeoplePeople **

STRUCTURAL CHARACTERISTICS OF STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONSALL ORGANIZATIONS

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

EFFICIENCYEFFICIENCY

ORGANIZATIONAL STRUCTURESORGANIZATIONAL STRUCTURES

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

manufacturing firmmanufacturing firm• DIVISIONALIZED BUREAUCRACY:DIVISIONALIZED BUREAUCRACY: Fortune Fortune

500500• PROFESSIONAL BUREAUCRACY:PROFESSIONAL BUREAUCRACY: Law Law

firms, hospitalsfirms, hospitals• ADHOCRACYADHOCRACY: Consulting firm: Consulting firm

ORGANIZATION & ITS ENVIRONMENTORGANIZATION & ITS ENVIRONMENT

THE FIRM

INFORMATION SYSTEMSINFORMATION SYSTEMS

THE ENVIRONMENT:THE ENVIRONMENT:

RESOURCES & CONSTRAINTS

GOVERNMENTS

COMPETITORS

FINANCIAL INSTITUTIONS

CULTURE

KNOWLEDGE

TECHNOLOGY

SALIENT FEATURES OF SALIENT FEATURES OF ORGANIZATIONSORGANIZATIONS

COMMON FEATURES:COMMON FEATURES:

• FORMAL STRUCTUREFORMAL STRUCTURE

• STANDARD OPERATING STANDARD OPERATING PROCEDURESPROCEDURES

• POLITICSPOLITICS

• CULTURECULTURE

SALIENT FEATURES OF SALIENT FEATURES OF ORGANIZATIONSORGANIZATIONS

UNIQUE FEATURES:UNIQUE FEATURES:

ORGANIZATIONAL TYPEORGANIZATIONAL TYPE

ENVIRONMENTS, GOALS, POWERENVIRONMENTS, GOALS, POWER

CONSTITUENCIES, FUNCTIONCONSTITUENCIES, FUNCTION

LEADERSHIP, TASKSLEADERSHIP, TASKS

TECHNOLOGYTECHNOLOGY

LEVELSLEVELS

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WORK GROUPS, PROBLEMS, WORK GROUPS, PROBLEMS, SYSTEM SUPPORTSYSTEM SUPPORT

• HIERARCHICAL:HIERARCHICAL: Frequent meetings, Frequent meetings, workers dispersedworkers dispersed– VIDEO CONFERENCING, E-MAILVIDEO CONFERENCING, E-MAIL

• INTERDEPARTMENTAL INTERDEPARTMENTAL COMMITTEES:COMMITTEES: Need occasional Need occasional direct communicationdirect communication– ELECTRONIC MESSAGINGELECTRONIC MESSAGING

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• PROJECT TEAMS:PROJECT TEAMS: Day-to-day Day-to-day interactions, meeting schedulesinteractions, meeting schedules– SCHEDULING/COMMUNICATION/SCHEDULING/COMMUNICATION/

SUPPORT SOFTWARE, INTRANETSUPPORT SOFTWARE, INTRANET

• COMMITTEES:COMMITTEES: High peak load, High peak load, intermittent communicationintermittent communication– ELECTRONIC BULLETIN BOARDS, ELECTRONIC BULLETIN BOARDS,

VIDEO/COMPUTER CONFERENCING, E-MAILVIDEO/COMPUTER CONFERENCING, E-MAIL

• TASK FORCES: TASK FORCES: Rapid Rapid communication, internal/external datacommunication, internal/external data– GRAPHICS DISPLAY, INFORMATION/ GRAPHICS DISPLAY, INFORMATION/

DOCUMENTATION INTERCHANGEDOCUMENTATION INTERCHANGE

• PEER GROUPS:PEER GROUPS: Intense personal Intense personal communicationcommunication– TELEPHONE, E-MAILTELEPHONE, E-MAIL

PROBLEMS OF ALL WORK GROUPSPROBLEMS OF ALL WORK GROUPS

• MAKING ARRANGEMENTSMAKING ARRANGEMENTS

• ATTENDING MEETINGSATTENDING MEETINGS

• LONG AGENDALONG AGENDA

• COST OF MEETINGSCOST OF MEETINGS

• BETWEEN-MEETING ACTIVITIESBETWEEN-MEETING ACTIVITIES

DEVELOPMENT OF INFORMATION DEVELOPMENT OF INFORMATION ARCHITECTUREARCHITECTURE

• 1950s:1950s: ELECTRONIC ACCOUNTING ELECTRONIC ACCOUNTING MACHINESMACHINES

• 1960s:1960s: DATA PROCESSING DEPARTMENTS DATA PROCESSING DEPARTMENTS• 1970s:1970s: INFORMATION SYSTEMS INFORMATION SYSTEMS• 1980s:1980s: INFORMATION SYSTEMS & SERVICES INFORMATION SYSTEMS & SERVICES• 1990s:1990s: ENTERPRISE-WIDE INFORMATION ENTERPRISE-WIDE INFORMATION

UTILITYUTILITY

INFORMATION SYSTEMS INFORMATION SYSTEMS DEPARTMENTDEPARTMENT

• PROGRAMMERS:PROGRAMMERS: Write software Write software

• SYSTEMS ANALYSTS:SYSTEMS ANALYSTS: Translate Translate business problems into solutionsbusiness problems into solutions

• IS MANAGERS:IS MANAGERS: Department leaders Department leaders

• END USERS:END USERS: Department reps for Department reps for whom applications are whom applications are developed developed

WHY ORGANIZATIONS BUILD WHY ORGANIZATIONS BUILD INFORMATION SYSTEMSINFORMATION SYSTEMS

• ENVIRONMENTAL FACTORS:ENVIRONMENTAL FACTORS: External factors that influence External factors that influence adoption & design of systemadoption & design of system

• INSTITUTIONAL FACTORS:INSTITUTIONAL FACTORS: Internal factors that influence Internal factors that influence adoption & design of adoption & design of systemsystem

HOW INFO SYSTEMS AFFECT HOW INFO SYSTEMS AFFECT ORGANIZATIONSORGANIZATIONS

• MICROECONOMIC MODEL: MICROECONOMIC MODEL: Info 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

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• AGENCY THEORY: AGENCY THEORY: Firm is nexus of Firm is nexus of contracts among agents who make contracts among agents who make decisions; IS shrink number of agents & decisions; IS shrink number of agents & reduce costreduce cost

• BEHAVIORAL THEORIES: BEHAVIORAL THEORIES: Concepts from Concepts from Sociology, Psychology, Political Science; Sociology, Psychology, Political Science; Organizations & Information Technology Organizations & Information Technology mutually influence each othermutually influence each other

• DECISION & CONTROL THEORY: DECISION & CONTROL THEORY: Decisions are made under conditions of Decisions are made under conditions of risk & uncertainty; centralization & risk & uncertainty; centralization & hierarchy reduce uncertaintyhierarchy reduce uncertainty

• SOCIOLOGICAL THEORY: SOCIOLOGICAL THEORY: Bureaucracy, Bureaucracy, SOPs help stabilize organizations, but SOPs help stabilize organizations, but slow ability to changeslow ability to change

• POSTINDUSTRIAL THEORY:POSTINDUSTRIAL THEORY: Flatter Flatter organizations; dominated by organizations; dominated by knowledge workers; decentralized knowledge workers; decentralized decision makingdecision making

• CULTURAL THEORY: CULTURAL THEORY: Information Information technology must fit organization’s technology must fit organization’s culture to be acceptedculture to be accepted

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

IMPLEMENTING CHANGEIMPLEMENTING CHANGE

Source: Leavitt, Handbook of Organization (1965)

TASKTASK

PEOPLEPEOPLETECHNOLOGYTECHNOLOGY

STRUCTURESTRUCTURE

RESISTANCERESISTANCE

MUTUALMUTUALADJUSTMENTADJUSTMENT

HOW WEB AFFECTS ORGANIZATIONSHOW WEB AFFECTS ORGANIZATIONS

• MORE INFO, ANYWHERE, ANYTIMEMORE INFO, ANYWHERE, ANYTIME• MORE SCOPE, DEPTH, RANGE OF MORE SCOPE, DEPTH, RANGE OF

KNOWLEDGE:KNOWLEDGE: Global encyclopediaGlobal encyclopedia• LOWERS COST, RAISES QUALITY OF LOWERS COST, RAISES QUALITY OF

INFO DISTRIBUTION:INFO DISTRIBUTION: Enhances Enhances attention span of vendors, customers, attention span of vendors, customers, employeesemployees

IMPLICATIONS FOR DESIGN & IMPLICATIONS FOR DESIGN & UNDERSTANDING INFO SYSTEMSUNDERSTANDING INFO SYSTEMS

ENVIRONMENTENVIRONMENT

STRUCTURESTRUCTURE

CULTURECULTURE

POLITICSPOLITICS**

ROLE OF MANAGERSROLE OF MANAGERS

• INTERPERSONAL:INTERPERSONAL: Figureheads, Figureheads, leaders, liaisonleaders, liaison

• INFORMATIONAL:INFORMATIONAL: Receive & Receive & disseminate critical informationdisseminate critical information

• DECISIONAL:DECISIONAL: Initiate activities, Initiate activities, handle disturbances, allocate handle disturbances, allocate resources, negotiate conflictsresources, negotiate conflicts

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3.1. LEARNING OBJECTIVES DESCRIBE CHARACTERISTICS OF ORGANIZATIONSDESCRIBE CHARACTERISTICS OF...

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