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Lecture 1 Introduction to Organisations and Information Systems (Unit 1)

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1 Lecture 1 Introduction to Organisations and Information Systems (Unit 1)

2 2 a collection of interacting and interdependent individuals who work towards common goals and whose relationships are determined according to a common structure"common goals ( Duncan, 1981 ) Organisations

3 3 Organisation Vision Mission Statement Goals and Objectives An aspirational view A general expression of the overall purpose

4 Why do organisations exist? Organisational theories

5 5 Organisational Structure Objective of the organisational structure Means of attaining objectives and goals The extent to which, and the ways in which, one is controlled and constrained

6 6 New Business Models n Multinational companies n International organisations n Virtual global companies Page 336 of Turban et al. Enterprise

7 Multinational companies n Sometimes referred to as a "transnational corporation". n A good summary is given at: onalcorporation.asp n WiseGEEK discuss different business models used: multinational-corporation.htm n Good description is given by bized: multi.htm 7

8 8 Chief executive Senior executive Department/division heads Superintendents General foremen First-line supervisors Top management Middle management Supervisory management Organisation Structure Buchanan & Huczynski, 1997,

9 9 Organisation Culture What is meant by the term ‘Culture’? a set of major understandings and assumptions shared by a group

10 Some Aspects of Culture (L.Aiman-Smith 2004) n Historical: Culture is social heritage, or tradition, that is passed on to future generations n Behavioural: Culture is shared, learned human behaviour, a way of life n Normative: Culture is ideals, values, or rules for living 10

11 n Functional: Culture is the way people solve problems of adapting to the environment and living together n Mental: Culture is a complex of ideas, or learned habits, for social control n Structural: Culture consists of patterned and interrelated ideas, symbols, or behaviours n Symbolic: Culture is based on arbitrarily assigned meanings that are shared by an organization 11

12 Models of Culture n Geert Hofstede – country culture – 5 dimensions – Culture’s Consequences (1980) –reprinted in 2001 n O’Reilly, Chatman, and Caldwell (1991) – organisational culture – 7 dimentions n Two dimensional framework – internal or external focus – flexibility and individuality or stability and control. 12

13 13 Organisational tension Reflects conflict between Order & Stability Demands of the internal system and those of the external environment 4 cultural types (Boddy et al., 2002)

14 14 This type of organization has a sense of cohesion, with goals that strongly shared. Inside, the organization may feel more ‘family like” than ‘business like.” Clan Culture – Cameron and Quinn (1999) Having Involvement of all employees- (Denison, 1990) The emphasis on being open to change and oriented to the outside world characterizes organizations in which innovation can thrive, indeed sometimes the innovativeness can run amuck. Adhocracy Cultures -Cameron and Quinn (1999) High Adaptability cultures -(Denison, 1990) This type of organization often relies on formal structures, policies and procedures to keep things running. Hierarchy Culture - Cameron and Quinn (1999) An internal focus is on Consistency - (Denison, 1990) These types of organizations are concerned about productivity, consistency, results, the bottom line. These organizations are very clear about their customers, and hence can be termed Market Cultures. (Denison, 1990) – These organizations have a sense of external Mission, combined with control, that can be very successful. Internally focusedExternally focused Flexibility andDiscretion Stability andControl (L.Aiman-Smith 2004)

15 15 Flexibility Order InternalExternal Human relations StabilityProductivity Survival Computer-aided instruction Interpersonal computing and conferencing Group decision supporting Internal monitoring Internal controlling Record keeping Optimising Environmental scanning and filtering Inter-organisational linking Doubt and argument promoting Modelling Forecasting Sensitivity analysing (Boddy et al., 2002:173)

16 16 Environment Organisation Customers Suppliers Competitors Investors Regulators Technology Knowledge IS (Adapted from Laudon and Laudon, 2006:78)

17 17 Organisations people resources Goals and objectives vision Mission Organisational behaviour Structure Controlled performance Culture

18 18 Announcement Module Representatives

19 19 n Developed by Ludwig von Bertalanffy in 1936 System Theory “System theory is the transdisciplinary study of the abstract organization of phenomena, independent of their substance, type, or spatial or temporal scale of existence. It investigates both the principles common to all complex entities, and the (usually mathematical) models which can be used to describe them”

20 20 What is a system? ‘A group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organised transformation process’ (James o’Brien, 2004) “A system is an entity which maintains its existence through the mutual interaction of its parts”. Ludwig von Bertalanffy

21 21 Organisation Production process Input from the environment Output to the environment Feedback (adapted from Laudon and Laudon, 2006:73) System Theory

22 22 n Emergence n Anasynthis (Introduction to Systems Thinking by Gene Bellinger at ) Open systems Vs Closed systems Close-coupled systems

23 23 The Functions of Information Technology (IT) Capture Process Generate Store/Retrieve Transmit James A. Senn, Page 23

24 24 Information systems are the means by which organisations and people, using information technologies gather, process, store, use, and disseminate information. (

25 25 n A Business IS (BIS) … convert data into information products that can be used to support forecasting, planning, control, co- ordination, decision making and operational activities in an organisation. – Bocij et al. Information Systems

26 26 Input of data resources Processing data into information Output of information products Storage of data resources Control of system performance People Resources End users and IS specialists Software Resources programs and procedures Hardware Resources machines and media Network Resources Communications media and Network support Data Resources data and Knowledge bases (O’Brien, 2004, page 11) The Components of an IS

27 27 People resources IS Specialists - People who develop and operate IS, e.g. system analysts, software developers, system operators End Users - anyone who uses the information systems or the information it produces, e.g. customers, salespersons, managers (O’Brien, 6 th Edition, page 12)

28 28 Software resources all sets of information processing instructions Programs - System software (operating system programs), Application software (spreadsheet programs, word processing programs, payroll programs, etc.) Procedures - data entry procedures, error correction procedures, paycheque distribution procedures, etc. (O’Brien, 6 th Edition, page 12)

29 29 Hardware resources All physical devices and materials used in information processing Machines - Computers, video monitors, magnetic disk drives, printers, optical scanners, etc. Data Media - floppy disks, magnetic tapes, optical disks, plastic cards, paper forms, etc. (O’Brien, 6 th Edition, page 12)

30 30 Network resources Communications media, Communications processes, Network access and control software, etc. (O’Brien, 6 th Edition, page 12)

31 31 Data resources Product descriptions, Customer records, Employee files, Inventory Databases, Organisational knowledge bases External data warehouses, etc. (O’Brien, 6 th Edition, page 12-13)

32 32 n Data Vs Information n Application programs Vs IS n IS Vs IT (ICT) Used To Build Hardware Software Databases Networks other related components Read Chapter 1 Page 18 ff of Turban et al.

33 33 Application programs IS IT Data Information People Decisions Actions experience Knowledge

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