1. 3. INFORMATION SYSTEMS,
ORGANIZATIONS, &
BUSINESS PROCESSES
3.1

2. LEARNING OBJECTIVES DESCRIBE CHARACTERISTICS OF ORGANIZATIONS
RELATE INFO SYSTEMS TO ORGANIZATIONS
COMPARE MODELS DESCRIBING SYSTEM ORIGINS *
3.2

3. LEARNING OBJECTIVES COMPARE THEORIES OF ORGANIZATIONS
ANALYZE IMPACT OF INFO SYSTEM ON ORGANIZATION
DESCRIBE IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATION *
3.3

4. MANAGEMENT CHALLENGES
DIFFICULTIES OF MANAGING CHANGE
ADJUSTING TECHNOLOGY AND ORGANIZATION FOR OPTIMAL FIT *
3.4

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

6. ORGANIZATION TECHNICAL DEFINITION: STABLE, FORMAL STRUCTURE
TAKES RESOURCES FROM ENVIRONMENT
PROCESSES THEM
TO PRODUCE OUTPUTS *
3.6

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

8. STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS
CLEAR DIVISION OF LABOR
HIERARCHY
EXPLICIT RULES & PROCEDURES
IMPARTIAL JUDGMENTS
TECHNICAL QUALIFICATIONS
MAXIMUM ORGANIZATIONAL EFFICIENCY *
3.8

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

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

11. SALIENT FEATURES OF ORGANIZATIONS
COMMON FEATURES:
FORMAL STRUCTURE
STANDARD OPERATING PROCEDURES
POLITICS
CULTURE *
3.11

12. SALIENT FEATURES OF ORGANIZATIONS
UNIQUE FEATURES:
ORGANIZATIONAL TYPE
ENVIRONMENTS, GOALS, POWER
CONSTITUENCIES, FUNCTION
LEADERSHIP, TASKS
TECHNOLOGY
LEVELS *
3.12

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

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

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

16. PROBLEMS OF ALL WORK GROUPS
MAKING ARRANGEMENTS
ATTENDING MEETINGS
LONG AGENDA
COST OF MEETINGS
BETWEEN-MEETING ACTIVITIES *
3.16

17. DEVELOPMENT OF INFORMATION ARCHITECTURE
1950s: ELECTRONIC ACCOUNTING MACHINES
1960s: DATA PROCESSING DEPARTMENTS
1970s: INFORMATION SYSTEMS
1980s: INFORMATION SYSTEMS & SERVICES
1990s: ENTERPRISE-WIDE INFORMATION UTILITY *
3.17

18. 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 *
3.18

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

20. 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 *
3.21

21. HOW INFO SYSTEMS AFFECT ORGANIZATIONS
AGENCY 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 other *
3.21

22. HOW INFO SYSTEMS AFFECT ORGANIZATIONS
DECISION & 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 change *
3.22

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

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

25. IMPLEMENTING CHANGE TASK PEOPLE TECHNOLOGY STRUCTURE RESISTANCE
Source: Leavitt, Handbook of Organization (1965)
TASK
PEOPLE
TECHNOLOGY
STRUCTURE
RESISTANCE
MUTUAL ADJUSTMENT
3.25

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

27. IMPLICATIONS FOR DESIGN & UNDERSTANDING INFO SYSTEMS
ENVIRONMENT
STRUCTURE
CULTURE
POLITICS *
3.27

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

29. 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

30. 3. INFORMATION SYSTEMS,
ORGANIZATIONS, &
BUSINESS PROCESSES
3.30