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LEARNING OBJECTIVES DESCRIBE CHARACTERISTICS OF ORGANIZATIONSDESCRIBE CHARACTERISTICS OF ORGANIZATIONS RELATE INFO SYSTEMS TO ORGANIZATIONSRELATE INFO SYSTEMS TO ORGANIZATIONS COMPARE MODELS DESCRIBING SYSTEM ORIGINSCOMPARE MODELS DESCRIBING SYSTEM ORIGINS* 3.2

LEARNING OBJECTIVES COMPARE THEORIES OF ORGANIZATIONSCOMPARE THEORIES OF ORGANIZATIONS ANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATIONANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATION DESCRIBE IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATIONDESCRIBE IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATION* 3.3

MANAGEMENT CHALLENGES DIFFICULTIES OF MANAGING CHANGEDIFFICULTIES OF MANAGING CHANGE ADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL FITADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL FIT* 3.4

MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS & INFORMATION TECHNOLOGY ORGANIZATIONS INFORMATION TECHNOLOGY 3.5

ORGANIZATION TECHNICAL DEFINITION: STABLE, FORMAL STRUCTURE TAKES RESOURCES FROM ENVIRONMENTTAKES RESOURCES FROM ENVIRONMENT PROCESSES THEMPROCESSES THEM TO PRODUCE OUTPUTSTO PRODUCE OUTPUTS* 3.6

ENVIRONMENTAL RESOURCES ENVIRONMENTAL OUTPUTS BEHAVIORAL VIEW OF ORGANIZATIONS STRUCTURE: Hierarchy Division of labor Rules, Procedures PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People * 3.7

STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS CLEAR DIVISION OF LABORCLEAR DIVISION OF LABOR HIERARCHYHIERARCHY EXPLICIT RULES & PROCEDURESEXPLICIT RULES & PROCEDURES IMPARTIAL JUDGMENTSIMPARTIAL JUDGMENTS TECHNICAL QUALIFICATIONSTECHNICAL QUALIFICATIONS MAXIMUM ORGANIZATIONAL EFFICIENCYMAXIMUM ORGANIZATIONAL EFFICIENCY* 3.8

ORGANIZATIONAL STRUCTURES ENTREPRENEURIAL: Startup businessENTREPRENEURIAL: Startup business MACHINE BUREAUCRACY: Mid-sized manufacturing firmMACHINE BUREAUCRACY: Mid-sized manufacturing firm DIVISIONALIZED BUREAUCRACY: Fortune 500DIVISIONALIZED BUREAUCRACY: Fortune 500 PROFESSIONAL BUREAUCRACY: Law firms, hospitalsPROFESSIONAL BUREAUCRACY: Law firms, hospitals ADHOCRACY: Consulting firmADHOCRACY: Consulting firm* 3.9

ORGANIZATION & ITS ENVIRONMENT THE FIRM INFORMATION SYSTEMS THE ENVIRONMENT: RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY 3.10

SALIENT FEATURES OF ORGANIZATIONS COMMON FEATURES: FORMAL STRUCTUREFORMAL STRUCTURE STANDARD OPERATING PROCEDURESSTANDARD OPERATING PROCEDURES POLITICSPOLITICS CULTURECULTURE* 3.11

SALIENT FEATURES OF ORGANIZATIONS UNIQUE FEATURES: ORGANIZATIONAL TYPE ENVIRONMENTS, GOALS, POWER CONSTITUENCIES, FUNCTION LEADERSHIP, TASKS TECHNOLOGYLEVELS* 3.12

WORK GROUPS, PROBLEMS, SYSTEM SUPPORT HIERARCHICAL: Frequent meetings, workers dispersedHIERARCHICAL: Frequent meetings, workers dispersed –VIDEO CONFERENCING, INTERDEPARTMENTAL COMMITTEES: Need occasional direct communicationINTERDEPARTMENTAL COMMITTEES: Need occasional direct communication –ELECTRONIC MESSAGING * 3.13

WORK GROUPS, PROBLEMS, SYSTEM SUPPORT PROJECT TEAMS: Day-to-day interactions, meeting schedulesPROJECT TEAMS: Day-to-day interactions, meeting schedules –SCHEDULING/COMMUNICATION/ SUPPORT SOFTWARE, INTRANET COMMITTEES: High peak load, intermittent communicationCOMMITTEES: High peak load, intermittent communication –ELECTRONIC BULLETIN BOARDS, VIDEO/COMPUTER CONFERENCING, * 3.14

WORK GROUPS, PROBLEMS, SYSTEM SUPPORT TASK FORCES: Rapid communication, internal/external dataTASK FORCES: Rapid communication, internal/external data –GRAPHICS DISPLAY, INFORMATION/ DOCUMENTATION INTERCHANGE PEER GROUPS: Intense personal communicationPEER GROUPS: Intense personal communication –TELEPHONE, * 3.15

PROBLEMS OF ALL WORK GROUPS MAKING ARRANGEMENTSMAKING ARRANGEMENTS ATTENDING MEETINGSATTENDING MEETINGS LONG AGENDALONG AGENDA COST OF MEETINGSCOST OF MEETINGS BETWEEN-MEETING ACTIVITIESBETWEEN-MEETING ACTIVITIES* 3.16

DEVELOPMENT OF INFORMATION ARCHITECTURE 1950s: ELECTRONIC ACCOUNTING MACHINES1950s: ELECTRONIC ACCOUNTING MACHINES 1960s: DATA PROCESSING DEPARTMENTS1960s: DATA PROCESSING DEPARTMENTS 1970s: INFORMATION SYSTEMS1970s: INFORMATION SYSTEMS 1980s: INFORMATION SYSTEMS & SERVICES1980s: INFORMATION SYSTEMS & SERVICES 1990s: ENTERPRISE-WIDE INFORMATION UTILITY1990s: ENTERPRISE-WIDE INFORMATION UTILITY* 3.17

INFORMATION SYSTEMS DEPARTMENT PROGRAMMERS: Write softwarePROGRAMMERS: Write software SYSTEMS ANALYSTS: Translate business problems into solutionsSYSTEMS ANALYSTS: Translate business problems into solutions IS MANAGERS: Department leadersIS MANAGERS: Department leaders END USERS: Department reps for whom applications are developedEND USERS: Department reps for whom applications are developed* 3.18

WHY ORGANIZATIONS BUILD INFORMATION SYSTEMS ENVIRONMENTAL FACTORS: External factors that influence adoption & design of systemENVIRONMENTAL FACTORS: External factors that influence adoption & design of system INSTITUTIONAL FACTORS: Internal factors that influence adoption & design of systemINSTITUTIONAL FACTORS: Internal factors that influence adoption & design of system* 3.19

HOW INFO SYSTEMS AFFECT ORGANIZATIONS MICROECONOMIC MODEL: Info technology is a factor of production, like capital & laborMICROECONOMIC MODEL: Info technology is a factor of production, like capital & labor TRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externallyTRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externally* 3.21

AGENCY THEORY: Firm is nexus of contracts among agents who make decisions; IS shrink number of agents & reduce costAGENCY THEORY: Firm is nexus of contracts among agents who make decisions; IS shrink number of agents & reduce cost BEHAVIORAL THEORIES: Concepts from Sociology, Psychology, Political Science; Organizations & Information Technology mutually influence each otherBEHAVIORAL THEORIES: Concepts from Sociology, Psychology, Political Science; Organizations & Information Technology mutually influence each other* HOW INFO SYSTEMS AFFECT ORGANIZATIONS 3.21

HOW INFO SYSTEMS AFFECT ORGANIZATIONS DECISION & CONTROL THEORY: Decisions are made under conditions of risk & uncertainty; centralization & hierarchy reduce uncertaintyDECISION & CONTROL THEORY: Decisions are made under conditions of risk & uncertainty; centralization & hierarchy reduce uncertainty SOCIOLOGICAL THEORY: Bureaucracy, SOPs help stabilize organizations, but slow ability to changeSOCIOLOGICAL THEORY: Bureaucracy, SOPs help stabilize organizations, but slow ability to change* 3.22

HOW INFO SYSTEMS AFFECT ORGANIZATIONS POSTINDUSTRIAL THEORY: Flatter organizations; dominated by knowledge workers; decentralized decision makingPOSTINDUSTRIAL THEORY: Flatter organizations; dominated by knowledge workers; decentralized decision making CULTURAL THEORY: Information technology must fit organization’s culture to be acceptedCULTURAL THEORY: Information technology must fit organization’s culture to be accepted* 3.23

HOW INFO SYSTEMS AFFECT ORGANIZATIONS POLITICAL THEORY: Info systems are outcome of political competition for policies, procedures, resourcesPOLITICAL THEORY: Info systems are outcome of political competition for policies, procedures, resources* 3.24

IMPLEMENTING CHANGE Source: Leavitt, Handbook of Organization (1965)TASKPEOPLETECHNOLOGY STRUCTURE RESISTANCE MUTUAL ADJUST MENT 3.25

HOW WEB AFFECTS ORGANIZATIONS MORE INFO, ANYWHERE, ANYTIMEMORE INFO, ANYWHERE, ANYTIME MORE SCOPE, DEPTH, RANGE OF KNOWLEDGE: Global encyclopediaMORE SCOPE, DEPTH, RANGE OF KNOWLEDGE: Global encyclopedia LOWERS COST, RAISES QUALITY OF INFO DISTRIBUTION: Enhances attention span of vendors, customers, employeesLOWERS COST, RAISES QUALITY OF INFO DISTRIBUTION: Enhances attention span of vendors, customers, employees* 3.26

IMPLICATIONS FOR DESIGN & UNDERSTANDING INFO SYSTEMS ENVIRONMENTSTRUCTURECULTUREPOLITICS* 3.27

ROLE OF MANAGERS INTERPERSONAL: Figureheads, leaders, liaisonINTERPERSONAL: Figureheads, leaders, liaison INFORMATIONAL: Receive & disseminate critical informationINFORMATIONAL: Receive & disseminate critical information DECISIONAL: Initiate activities, handle disturbances, allocate resources, negotiate conflictsDECISIONAL: Initiate activities, handle disturbances, allocate resources, negotiate conflicts* 3.28

Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION ON THIS CHAPTER 3.29

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