Muhamad AbduhInstitut Teknologi Bandung2.1 W e e k 2 2 INFORMATION SYSTEM, ORGANIZATION, MANAGEMENT, AND DECISION MAKING

Muhamad AbduhInstitut Teknologi Bandung2.2 MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS & INFORMATION TECHNOLOGY ORGANIZATIONS INFORMATION TECHNOLOGY

Muhamad AbduhInstitut Teknologi Bandung2.3 ORGANIZATION TECHNICAL DEFINITION: STABLE, FORMAL STRUCTURE TAKES RESOURCES FROM ENVIRONMENT AND PROCESSES THEM TO PRODUCE OUTPUTS *

Muhamad AbduhInstitut Teknologi Bandung2.4 TECHNICAL MICROECONOMIC DEFINITION OF ORGANIZATION OUTPUTS TO ENVIRONMENTORGANIZATION PRODUCTION PROCESS INPUTS FROM ENVIRONMENT

Muhamad AbduhInstitut Teknologi Bandung2.5 ORGANIZATION BEHAVIORAL DEFINITION: COLLECTION OF: RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIES DELICATELY BALANCED CONFLICT RESOLUTION *

Muhamad AbduhInstitut Teknologi Bandung2.6 ENVIRONMENTAL RESOURCES ENVIRONMENTAL OUTPUTS FORMAL ORGANIZATION STRUCTURE: Hierarchy Division of labor Rules, Procedures PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People

Muhamad AbduhInstitut Teknologi Bandung2.7 STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS CLEAR DIVISION OF LABOR HIERARCHY EXPLICIT RULES & PROCEDURES IMPARTIAL JUDGMENTS TECHNICAL QUALIFICATIONS MAXIMUM ORGANIZATIONAL EFFICIENCY *

Muhamad AbduhInstitut Teknologi Bandung2.8 COMMON FEATURES OF ORGANIZATIONS FORMAL STRUCTURE STANDARD OPERATING PROCEDURES POLITICS CULTURE *

Muhamad AbduhInstitut Teknologi Bandung2.9 UNIQUE FEATURES OF ORGANIZATIONS ORGANIZATIONAL TYPES ENVIRONMENTS, GOALS, POWER CONSTITUENCIES, FUNCTION LEADERSHIP, TASKS TECHNOLOGY BUSINESS PROCESSES *

Muhamad AbduhInstitut Teknologi Bandung2.10 ORGANIZATIONAL STRUCTURES ENTREPRENEURIAL: Startup business MACHINE BUREAUCRACY: Mid-sized manufacturing firm DIVISIONALIZED BUREAUCRACY: Fortune 500 PROFESSIONAL BUREAUCRACY: Law firms, hospitals ADHOCRACY: Consulting firm *

Muhamad AbduhInstitut Teknologi Bandung2.11 ORGANIZATION & ITS ENVIRONMENT THE FIRM INFORMATION SYSTEMS THE ENVIRONMENT: RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY

Muhamad AbduhInstitut Teknologi Bandung2.12 INFORMATION SYSTEMS DEPARTMENT PROGRAMMERS: Write software SYSTEMS ANALYSTS: Translate business problems into solutions IS MANAGERS: Department leaders END USERS: Department reps for whom applications are developed *

Muhamad AbduhInstitut Teknologi Bandung2.13 THE ORGANIZATION SENIOR MANAGEMENT MAJOR END-USERS (DIVISIONS) INFORMATION SYSTEMS DEPARTMENT IT Infrastructure: Hardware Software Data Networks Information System Specialists: CIO Managers System Analysts System Developers Programmers Network Specialists Database AdministratorClerical

Muhamad AbduhInstitut Teknologi Bandung2.14 HOW INFO SYSTEMS AFFECT ORGANIZATIONS MICROECONOMIC MODEL: Info technology is a factor of production, like capital & labor TRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externally *

Muhamad AbduhInstitut Teknologi Bandung2.15 AGENCY THEORY: Firm is nexus of contracts among self-interested parties requiring supervision BEHAVIORAL THEORIES: Info systems could change hierarchy of decision making; reduce need for middle management & clerical support; distribute information * HOW INFO SYSTEMS AFFECT ORGANIZATIONS

Muhamad AbduhInstitut Teknologi Bandung2.16 IMPLEMENTING CHANGE TASK PEOPLETECHNOLOGY STRUCTURE RESISTANCE MUTUAL ADJUST MENT

Muhamad AbduhInstitut Teknologi Bandung2.17 ROLE OF MANAGERS CLASSICAL: Describe functions- plan, organize, coordinate, decide, control BEHAVIORAL: Based on observations of managers on the job *

Muhamad AbduhInstitut Teknologi Bandung2.18 INFO SYSTEMS, LEVELS, DECISIONS TPS OAS MIS KWS DSS ESS ORGANIZATIONAL LEVEL TYPE OF DECISIONOPERATIONALKNOWLEDGEMANAGEMENTSTRATEGIC STRUCTURED ACCOUNTS RECEIVABLE ELECTRONIC PRODUCTION SCHEDULING COST OVERRUNS SEMI-BUDGET STRUCTUREDPREPARATION PROJECT SCHEDULING FACILITY LOCATION UNSTRUCTUREDPRODUCT DESIGN NEW PRODUCTS NEW MARKETS

Muhamad AbduhInstitut Teknologi Bandung2.19 STAGES OF DECISION MAKING INTELLIGENCE: Collect information; identify problem DESIGN: Conceive alternatives; select criteria CHOICE: Use criteria to evaluate alternatives; select IMPLEMENTATION: Put decision into effect; allocate resources; control * SOURCE: Simon, The New Science of Management Decision (1960)

Muhamad AbduhInstitut Teknologi Bandung2.20 RATIONAL: Comprehensive rationality; evaluate all alternatives SYSTEMATIC: Structured, formal method INTUITIVE: Trial & error, unstructured, multiple approach * INDIVIDUAL MODELS OF DECISION MAKING

Muhamad AbduhInstitut Teknologi Bandung2.21 BUREAUCRATIC: Follow standard operating procedures (SOP) POLITICAL: Key groups compete and bargain “GARBAGE CAN”: Organizations not rational; solutions accidental * ORGANIZATIONAL MODELS OF DECISION MAKING

Muhamad AbduhInstitut Teknologi Bandung2.22 W e e k 2 2 INFORMATION SYSTEM, ORGANIZATION, MANAGEMENT, AND DECISION MAKING