Henri Fayol 1841-1925 Henri Fayol 1841-1925 1 IS 371 Week 3 Agenda: Administrative things Homework #1 due now Watch for grades on COL IT Department Administration.
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Henri Fayol Henri Fayol IS 371 Week 3 Agenda: Administrative things Homework #1 due now Watch for grades on COL IT Department Administration (more) IT Globalization and Culture IT Outsourcing
Henri Fayol Henri Fayol IT Traditional Roles/Responsibilities Enable corporate strategies - Competitive strategies - Low Cost/High Quality/Special Niche Process redesign - Value enhancement Enhance workgroup productivity Infrastructure/Architecture Service Management Resource Management The Real, Critical Role of IS Management is to translate these IT activities for User Managers
Henri Fayol Henri Fayol Governance Business Plan Alignment Process Improvement Resource Optimization Operating Excellence Information Management Superiority - Strassmann Exercises authority and achieves corporate consensus IT and business plans must be congruent Searching for improvements is ongoing (Kaizen) Always question whether resources are used most effectively Quality in the business process is critical
Henri Fayol Henri Fayol MAJOR TRENDS IN IT MANAGEMENT GLOBALIZATION OF BUSINESS - Specialized talent - Reduction in cost - Time to market – follow the sun development VELOCITY OF CHANGE IN BUSINESS - Time from recognition of business need to system operation - Pace of technology changes OUTSOURCING - Cost savings - Functionally discrete, non-core business - Political compromise - Lack of internal skills
Henri Fayol Henri Fayol According to the CIO desk reference–Meta Group, 2001, most IT organizations “have a cost center, ‘just-keep-the-lights-on’, service- utility mentality that maintains IT should be mostly transparent to the rest of the business. If things are going well, no one knows the IT organization is there. If things are going badly, it gets noticed.” Organizations in which IT is viewed as extremely critical to the business, are those in which the CIO has realized that marketing the IT organization furthers the awareness of the value that IT adds to the business and helps ensure the CIO is a business partner. The best way to achieve this partnership is by organizing IT to respond to the needs of individual business groups. This can only be done by: establishing working relationships at individual and group levels with all business partners in which business teams, including IT as a “business,” can work together. Enterprise infrastructure is the only IT project. Whether responsible for 10 percent or 90 percent of the tasks, IT is a member of a business team led by a business project champion. All projects require business unit champions and business project champions.
Henri Fayol Henri Fayol ORGANIZATIONAL STRUCTURE / GOVERNANCE Functional Centralized Project/Process Decentralized Matrix
Henri Fayol Henri Fayol In the beginning, IT was managed by the Accounting Department IT
Henri Fayol Henri Fayol As IT applications expanded beyond Accounting, IT moved up in the organization
Henri Fayol Henri Fayol Centralized IT Structure President
Henri Fayol Henri Fayol Decentralized Structure President
Henri Fayol Henri Fayol Functional Alignment: organized around similar resources performing similar activities – task centered A categorization of business activities, such as: - marketing - sales - production - human resources - finance - materials management - accounting - information technology Within the IT Department: Organizing IT personnel by functional knowledge and platforms: organized around resources. - What are some “IT Functions?”
Henri Fayol Henri Fayol
Henri Fayol Henri Fayol FUNCTIONAL RELATIONSHIPS EMPHASIZE FORMAILTY Communication Flow
Henri Fayol Henri Fayol Functional Alignment Advantages: - reduced training costs (peers together to facilitate training) - expertise fostered - reduced task-switching time - easier workforce scalability Disadvantages: - internal, parochial focus - limited connections between functions - silo effect - rigidity
Henri Fayol Henri Fayol PROJECT / PROCESS ORIENTATION -- - organized around outputs - A specific ordering of work activities across time and place with a beginning, an end, and clearly identified inputs and output." - the focus is "HOW" to get to outputs - organizational orientation: horizontal workflow value chain - people are geared to becoming flexible generalists
Henri Fayol Henri Fayol Project/Process Alignment: Organizing IT personnel by tasks and services
Henri Fayol Henri Fayol Project/Process Organization Advantages –Effective and efficient for large projects –Resources available as needed –Broad range of specialists –short lines of communication –easy to measure progress Drawbacks –Expensive for small projects –Specialists may have limited technological depth –May require high levels of duplication for certain specialties
Henri Fayol Henri Fayol PROCESS (PROJECT) RELATIONSHIPS EMPHASIZE LATERAL COORDINATION / COMMUNICATION 360 DEGREE VIEW
Henri Fayol Henri Fayol The Present and Future are shifting toward project/processes...
Henri Fayol Henri Fayol Who is Henri Fayol? A French engineer who: Defined the functions of management: Planning Organizing Leading Controlling And identified 14 principles of management: Specialization/division of labor Authority with responsibility Discipline Unity of command Unity of direction Subordination of special interests Remuneration Centralization Chain / Line of Authority Order Equity Lifetime jobs (for good workers) Equity Esprit de corps