1. UFCE8V-20-3 Information Systems Development SHAPE Hong Kong 2010/11
Lecture 1: Organisations & Information Systems

2. Organisations: A functional view
Why do organisations exist?
Because they are more productive than the same number of people working individually.
But …
… only if they are organised!
What does being organised imply?
Common goals and purposes
Division of labour - leads to delegation - structure
Coordination and control - leads to process
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

3. What do information systems do to support this?
They break down the organisation’s goals into individual and local goals
They enable communication and coordination between different parts of the organisation
They provide information on performance to ensure that targets are met and to identify problem areas
Strategic Level
Tactical Level
Operational Level
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

4. One way of viewing organisations
Strategic level
Relates the organisation to the environment
Sets overall goals
Medium / long term horizon
Tactical level
Interprets organisation’s operational level
Coordinates operational level
Medium / short term horizon
Operational level
Performs the primary task
Short term horizon
*In small organisations people may function on more than one level
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

5. Information flows in organisations
Vertical – “downwards”
Departmental goals and budgets
Individual instructions and targets
Vertical – “upwards”
Summaries
Analysis
Performance
Exception reports
Horizontal
Between functional areas such as
sales and production
purchasing and stock control
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

6. An alternative view of organisations
Environmental – Information flows into and out of the organisation as well as within it
Strategic level – economic trends, market research
Tactical level – contracts with customers and suppliers
Operational level – orders, invoices, catalogues
* So far we have taken a very formal view of organisations – it needs to be modified!
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

7. Organisations: A social view
A social view focuses on the people in organisations. So……..
“Functionalist” view of people
Individual is a “component of a machine”
Has a clearly defined role
Carries out unambiguous instructions
“Social” view of people
People in organisations retain their human characteristics – complex, meaning generating, have personal goals etc. … and this has a variety of effects (non-trivial) on how the organisation works
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

8. UFCE8V-20-3 Information Systems Development
Political view
Organisations are places where people seek to further their careers
People may form coalitions or interest groups – to compete for resources e.g.
management v. workers
sales v. finance
People may have loyalties outside the organisation
e.g. parents, politics, religion
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

9. UFCE8V-20-3 Information Systems Development
Social view
Organisations have a “culture” (rigid, loose, authoritarian, informal etc.)
People form human “relationships” (likes, dislikes etc.)
People seek “social fulfilment” within the organisation
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

10. UFCE8V-20-3 Information Systems Development
Human limitations
Can’t predict the consequences of their actions – there may be a “knock on effect”
Can only cope with limited amount of information
Can only handle limited complexity in roles
E.g. One person may have many roles, the roles may conflict, they may be unclear they may be interdependent
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

11. Objective v. Subjective
People do not always see the same thing in the same way – depends on your “worldview” or “weltanschauung”
Objective – there is a real world out there – people may disagree about what it constitutes but there is a underlying reality that is “real” which can/must be investigated
Subjective – we use our senses to perceive the world – but put our own interpretation on what we see
In organisations people interpret information and events and assign meanings to them
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

12. Possible implications of the social view of organizations
Organizations are by definition “social” – without the activity of people they could not exist – this will imply ...
For the organisation
impaired / improved delegation
impaired / improved coordination, communication
impaired / improved feedback
For the use of I.T.
I.T. changes will always have political implications causing (either/both) positive/negative effects e.g. lack of honest cooperation and/or user resistance or better cooperation and/or more user participation/motivation
Computer based information systems should attempt to meet the needs of the organisation – both social and functional
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

13. Extending Images of organisation
Gareth Morgan offers these metaphors or images of organisations:
Organisation as machine (classical management theory)
Organisation as organism (classical systems view)
Organisation as brain (developed systems view, information processing)
Organisation as culture (anthropological , working lives)
Organisation as polity (focus on interests, power, negotiation)
Organisation as psychic prison (people trapped in their own creation)
Organisation as flux and transformation (change natural, stability unusual)
Organisation as instrument of domination (damage and exploitation)
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

14. Perspectives on technological change in organisations
Unitary – organisation as a team with shared interests and goals
Technocratic – new technology inevitable and virtuous
Pluralistic – need to negotiate cooperation between different interests
Radical – factional struggle for control over resources
Augmentative – technology tends to reinforce existing power distribution
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11

15. A merged view of information systems
UFCE8V-20-3 Information Systems Development
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16. UFCE8V-20-3 Information Systems Development
Key points
This is not a view of a “bad” or “faulty” organisation rather it is part of the human condition. We can hope to cope, we cannot cure!
Human aspects do benefit the organisation – can adjust to changing situations, can innovate – not all good ideas come from the top
Both the functional and the social view are required to gain an adequate understanding of the organization … but organizations are open systems which are changing constantly as is their environment - so our understanding will always be incomplete
UFCE8V-20-3 Information Systems Development
SHAPE 2010/11