1. Dr. Muhammad Ikhwan Jambak
CHAPTER 2: Organizations & IS Summarized from Fundamentals of Information Systems, 2nd Ed, Yuen, N. B. et al, McGraw Hill, SG, 2005
Dr. Muhammad Ikhwan Jambak

2. Objective After attending this topic, the students will:
Understand the basic concept of Organizations and bearing on how IS can be used in it

3. Organization
An organization is a stable, formal structure that acquires inputs from external and processing them as outputs in return

4. Organization
The Input can be:
Material
Capital
Labor
Information

5. Organization
The Output can be:
Products
Services

6. Organization
The Output will be consumed/used by the environment in exchange for a steady supply of inputs.

7. Organization
To support the organizational structure, the standard operating procedures (SOP) is necessary to define the regulations, decision rules and authority for all expected situation.

8. Organizational Culture
Organizational culture is a set of shared assumptions about how things are accomplished in the workplace.

9. Organizational Culture Indicators
Visible
Invisible

10. Visible Organizational Culture Indicators
Dress code
Corporate logo
Architecture
Office arrangement and furnishing
Punctuality at meeting
Language used

11. Invisible Organizational Culture Indicators
Innovation
Creativity
Flexibility
Adaptability
Attitudes towards change

12. Organizational Culture Categories
Power culture
Role culture (Bureaucratic culture)
Task culture
Person culture

13. Organizational Structure
Organizational structure is the physical architecture of an organization where the hierarchical and functional areas of it can be defined.

14. Organizational Structure
Such an organization requires functional areas of specialization such as:
Marketing
Procurement
Production
Logistics

15. Organizational Structure
Such an organization requires functional areas of specialization such as:
Accounting
Human resource
Inventory

16. Organizational Structure
Accounting and finance
Human resource
Research and development
Project organization

17. Type of Organizations
Manufacturing
Service
Retail
Middlemen

18. Organizational Structure
Functional hierarchy
Product-Function hierarchy
Matrix organization
Project organization

19. Organization Key Characteristics
People
Size
Structure
Culture
Politics
Operating procedures

20. The Leavitt Model of Organizations
Organization comprising of 5 interrelated components: IT
People
Task
Firm’s Technology
Organizational structures

21. IS in Organizations’ areas of specialization
IS in Marketing:
Marketing research and forecasting
CRM
Customer analysis
Sales analysis

22. IS in Organizations’ areas of specialization
IS in Accounting:
Sales invoicing
Account receivable
Account Payable

23. IS in Organizations’ areas of specialization
IS in Human Resource:
Personal records
Training records
Remuneration analysis and planning

24. IS in Organizations’ areas of specialization
IS in Inventory:
Inventory records
Inventory valuation
Reordering

25. IS impact on Organizations
Flattened hierarchies
Empower employee
Work separated from location
Virtual organizations
Flexible manufacturing
Inter-organizational systems

26. IS impact on Organizations
E-commerce
Shortened product development cycle
Redesign of work and information flow
Mass customization

27. IS impact on Individual and Groups
Personal productivity
and groupware
Telecommuting
Different-place group work
Task oriented teams