© 2005 By Prentic Hall1 1 University Of Palestine Essentials of Management Information Systems Kenneth C. Laudon, Jane P. Laudon Instructor: Mr. Ahmed Al Astal Chapter 3 (Cont.) INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY

© 2005 By Prentic Hall2 University Of Palestine Unique Features of Organizations All organizations have different: 1.Structures/Organizational types 2.Goals 3.Constituencies 4.Leadership Styles, Tasks 5.Surrounding Environment

© 2005 By Prentic Hall3 University Of Palestine Unique Features of Organizations Organizational Structures Organizations can have simple to complex structures, depending upon organizational strategies, strategic decisions within the organization and environmental complexities. The structure of the organization can be traditional (bureaucratic) or modern (organic), according to needs The classical organization structure designs are simple, centralized, bureaucratic and divisionalized. Modern organizational designs include project organization, matrix design and adhocracy design.

© 2005 By Prentic Hall4 University Of Palestine Unique Features of Organizations Organizational Structures Classical organizational structure 1.In a simple centralized organizational structure, power, decision making authority and responsibility for goal setting are vested in one person at the top. This structure is usually found in small and single-person- owned organizations. The basic requirement of a simple centralized structure is that it has only one or two functions, and a few people who are specialists in critical functions. The manager is generally an expert in all related areas of functions and is responsible for coordination.

© 2005 By Prentic Hall5 University Of Palestine Unique Features of Organizations Organizational Structures Classical organizational structure 2.The Bureaucratic Organization: In large organizations and under well defined conditions, organization structure may be bureaucratic. The essential elements of a bureaucratic organization are: The use of standard methods and procedures for performing work; and A high degree of control to ensure standard performance.

© 2005 By Prentic Hall6 University Of Palestine Unique Features of Organizations Organizational Structures Figure 1. Bureaucratic organizational structure

© 2005 By Prentic Hall7 University Of Palestine Unique Features of Organizations Organizational Structures Classical organizational structure 3.The Divisionalized Organization : Divisionalized organizational design refers to a multiproduct or service design that separates different products or services to facilitate management planning and control. Different divisions in the organization can further have simple centralized or functional designs, depending upon their size and activities. This type of organizational design is favoured when different kinds of products or services require different kinds of management.

© 2005 By Prentic Hall8 University Of Palestine Unique Features of Organizations Organizational Structures Figure 2. Devisionalized organizational structure Director Product CProduct BProduct DProduct A

© 2005 By Prentic Hall9 University Of Palestine Unique Features of Organizations Organizational Structures Modern organization designs 4.Project design: Project design is also called the team or task force type. It is used to coordinate across departments for temporary, specific and complex problems which cannot be handled by a single department. Members from different departments and functional areas constitute a team, in which every member provides expertise in their area of specialization.

© 2005 By Prentic Hall10 University Of Palestine Unique Features of Organizations Organizational Structures Figure 3. Project design organizational structure

© 2005 By Prentic Hall11 University Of Palestine Unique Features of Organizations Organizational Structures Modern organization designs 5.Matrix Organizations: The matrix design blends two different types of designs, namely project and functional organizational designs. The main advantage of this combination is that the matrix design balances both technical and project goals and allocates specific responsibilities to both. Technical goals refer to how well work is done, while project goals relate to issues such as type of work to be done and its costs.

© 2005 By Prentic Hall12 University Of Palestine Unique Features of Organizations Organizational Structures Figure 4. Matrix organizational structure

© 2005 By Prentic Hall13 University Of Palestine Unique Features of Organizations Organizational Structures Matrix organizations are not without their problems : Responsibility and jurisdiction are not clearly defined in matrix organizations. Bosses are also not clearly identified. Within the organization, matrix organizations may encourage the formation of cliques since all decisions are made in a group. This could reinforce group loyalties and create inter-group conflicts. Matrix organizations need more human resources, particularly during initial periods.

© 2005 By Prentic Hall14 University Of Palestine Unique Features of Organizations Organizational Structures Modern organization designs 5.Adhocracy Organizations: Adhocratic structures are also called 'free form' or organic organization structures. They stress managerial styles which do not depend upon formal structures. An adhocratic structure is flexible, adaptive and organized around special problems to be solved by a group consisting of experts with diverse professional skills.

© 2005 By Prentic Hall15 University Of Palestine Unique Features of Organizations Organizational Structures Adhocracy Organizations (Cont.) These experts have decision making authority and other powers. The adhocratic Structure is usually small, with an ill- defined hierarchy.

© 2005 By Prentic Hall16 University Of Palestine Unique Features of Organizations Organizational Structures Figure 4. Adhockratic organizational structure

© 2005 By Prentic Hall17 University Of Palestine Unique Features of Organizations Organizational Structures Choosing the organizational structure The choice of any type of organizational design should be in consonance with the organizational requirements, strategy and environment. The simple centralized and bureaucratic organizational design based on functional departmentation focuses on work and is thus better suited for getting work done efficiently. The team or project type of organizational design is appropriate where inputs from several functional areas are required.

© 2005 By Prentic Hall18 University Of Palestine Unique Features of Organizations Organizational Structures Choosing the organizational structure The divisional structure is appropriate if performance and results are to be assessed. Matrix and adhocratic designs focus on coordination and relationship.

© 2005 By Prentic Hall19 University Of Palestine Information Technology Infrastructure and Information Technology Services Information systems department: Formal organizational unit that is responsible for information systems in the organization

University Of Palestine Includes specialists: Programmers: A programmer or software developer is someone who programs computers, that is, one who writes computer software. Systems analysts: Translate business problems into solutions, act as liaisons between the information systems department and rest of the organization.

University Of Palestine Includes specialists (Cont.): Information system managers: An information systems manager installs computer systems, ensures that back up systems operate effectively, buys hardware and software, and contributes to organizational policy with regard to quality standards and strategic planning. Chief information officer (CIO): Senior manager in charge of information systems function in the firm. Chief Information Officer (CIO) is a job title commonly given to the person in an enterprise responsible for the information technology and computer systems that support enterprise goals.

University Of Palestine Includes specialists (Cont.): End users: Department representatives outside the information system department for whom applications are developed.