1. 3.1 CHAPTER 3. INFORMATION SYSTEMS, ORGANIZATIONS, & MANAGEMENT: BUSINESS PROCESSES & ENTERPRISE SYSTEMS

2. 3.2 LEARNING OBJECTIVES IDENTIFY CHARACTERISTICS OF ORGANIZATIONSIDENTIFY CHARACTERISTICS OF ORGANIZATIONS RELATE INFO SYSTEMS TO ORGANIZATIONSRELATE INFO SYSTEMS TO ORGANIZATIONS ASSESS ORGANIZATIONAL & INFORMATION TECHNOLOGYASSESS ORGANIZATIONAL & INFORMATION TECHNOLOGY*

3. 3.3 LEARNING OBJECTIVES COMPARE THEORIES OF ORGANIZATIONSCOMPARE THEORIES OF ORGANIZATIONS DESCRIBE DECISION PROCESSESDESCRIBE DECISION PROCESSES ASSESS IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATIONASSESS IMPLICATIONS OF SYSTEM DESIGN & IMPLEMENTATION*

4. 3.4 MANAGEMENT CHALLENGES DIFFICULTIES OF MANAGING CHANGEDIFFICULTIES OF MANAGING CHANGE FITTING TECHNOLOGY & ORGANIZATIONFITTING TECHNOLOGY & ORGANIZATION*

5. 3.5 VP CEO ORGANIZATION ORGANIZATION TECHNICAL DEFINITION: STABLE, FORMAL STRUCTURE TAKES RESOURCES FROM ENVIRONMENTTAKES RESOURCES FROM ENVIRONMENT PROCESSES THEMPROCESSES THEM TO PRODUCE OUTPUTSTO PRODUCE OUTPUTS*

6. 3.6 ORGANIZATION BEHAVIORAL DEFINITION: COLLECTION OF RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIESRIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIES DELICATELY BALANCEDDELICATELY BALANCED CONFLICT RESOLUTIONCONFLICT RESOLUTION*

7. 3.7 MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS & INFORMATION TECHNOLOGY ORGANIZATIONS INFORMATION TECHNOLOGY

8. 3.8 ENVIRONMENTAL RESOURCES ENVIRONMENTAL OUTPUTS FORMAL ORGANIZATION STRUCTURE: Hierarchy Division of labor Rules, Procedures PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People

9. 3.9 STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS CLEAR DIVISION OF LABORCLEAR DIVISION OF LABOR HIERARCHYHIERARCHY EXPLICIT RULES & PROCEDURESEXPLICIT RULES & PROCEDURES IMPARTIAL JUDGMENTSIMPARTIAL JUDGMENTS TECHNICAL QUALIFICATIONSTECHNICAL QUALIFICATIONS MAXIMUM ORGANIZATIONAL EFFICIENCYMAXIMUM ORGANIZATIONAL EFFICIENCY*

10. 3.10 COMMON FEATURES OF ORGANIZATIONS FORMAL STRUCTUREFORMAL STRUCTURE STANDARD OPERATING PROCEDURESSTANDARD OPERATING PROCEDURES POLITICSPOLITICS CULTURECULTURE*

11. 3.11 UNIQUE FEATURES OF ORGANIZATIONS ORGANIZATIONAL TYPESORGANIZATIONAL TYPES ENVIRONMENTS, GOALS, POWERENVIRONMENTS, GOALS, POWER CONSTITUENCIES, FUNCTIONCONSTITUENCIES, FUNCTION LEADERSHIP, TASKSLEADERSHIP, TASKS TECHNOLOGYTECHNOLOGY BUSINESS PROCESSESBUSINESS PROCESSES*

12. 3.12 ORGANIZATION & ITS ENVIRONMENT THE FIRM INFORMATION SYSTEMS THE ENVIRONMENT: RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY

13. 3.13 ORGANIZATIONAL STRUCTURES ENTREPRENEURIAL: Startup businessENTREPRENEURIAL: Startup business MACHINE BUREAUCRACY: Mid-sized manufacturing firmMACHINE BUREAUCRACY: Mid-sized manufacturing firm DIVISIONALIZED BUREAUCRACY: Fortune 500DIVISIONALIZED BUREAUCRACY: Fortune 500 PROFESSIONAL BUREAUCRACY: Law firms, hospitalsPROFESSIONAL BUREAUCRACY: Law firms, hospitals ADHOCRACY: Consulting firmADHOCRACY: Consulting firm*

14. 3.14 INFORMATION SYSTEMS DEPARTMENT PROGRAMMERS: Write softwarePROGRAMMERS: Write software SYSTEMS ANALYSTS: Translate business problems into solutionsSYSTEMS ANALYSTS: Translate business problems into solutions IS MANAGERS: Department leadersIS MANAGERS: Department leaders END USERS: Department reps for whom applications are developedEND USERS: Department reps for whom applications are developed*

15. 3.15 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

16. 3.16 HOW INFO SYSTEMS AFFECT ORGANIZATIONS MICROECONOMIC MODEL: Info technology is a factor of production, like capital & laborMICROECONOMIC MODEL: Info technology is a factor of production, like capital & labor TRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externallyTRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externally*

17. 3.17 HOW INFO SYSTEMS AFFECT ORGANIZATIONS AGENCY THEORY: Firm is nexus of contracts among self-interested parties requiring supervisionAGENCY 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 informationBEHAVIORAL THEORIES: Info systems could change hierarchy of decision making; reduce need for middle management & clerical support; distribute information*

18. 3.18 IMPLEMENTING CHANGE Source: Leavitt, Handbook of Organization (1965)TASKPEOPLETECHNOLOGY STRUCTURE RESISTANCE MUTUAL ADJUST MENT

19. 3.19 INTERNET & ORGANIZATIONS E-mail communicationE-mail communication Electronic handbooks published & revisedElectronic handbooks published & revised Interactive training classesInteractive training classes Employees review, update personal dataEmployees review, update personal data*

20. 3.20 Sales & Marketing Accounting Finance Manufacturing Human Resources ENTERPRISE SYSTEM Business Processes Enterprise-wide Business Processes VendorsCustomers

21. 3.21 ROLE OF MANAGERS CLASSICAL: Describe functions- plan, organize, coordinate, decide, controlCLASSICAL: Describe functions- plan, organize, coordinate, decide, control BEHAVIORAL: Based on observations of managers on the jobBEHAVIORAL: Based on observations of managers on the job*

22. 3.22 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

23. 3.23 STAGES OF DECISION MAKING INTELLIGENCE: Collect information; identify problemINTELLIGENCE: Collect information; identify problem DESIGN: Conceive alternatives; select criteriaDESIGN: Conceive alternatives; select criteria CHOICE: Use criteria to evaluate alternatives; selectCHOICE: Use criteria to evaluate alternatives; select IMPLEMENTATION: Put decision into effect; allocate resources; controlIMPLEMENTATION: Put decision into effect; allocate resources; control* SOURCE: Simon, The New Science of Management Decision (1960)

24. 3.24 RATIONAL: Comprehensive rationality; evaluate all alternativesRATIONAL: Comprehensive rationality; evaluate all alternatives SYSTEMATIC: Structured, formal methodSYSTEMATIC: Structured, formal method INTUITIVE: Trial & error, unstructured, multiple approachINTUITIVE: Trial & error, unstructured, multiple approach* INDIVIDUAL MODELS OF DECISION MAKING

25. 3.25 BUREAUCRATIC: Follow standard operating procedures (SOP)BUREAUCRATIC: Follow standard operating procedures (SOP) POLITICAL: Key groups compete and bargainPOLITICAL: Key groups compete and bargain “GARBAGE CAN”: Organizations not rational; solutions accidental“GARBAGE CAN”: Organizations not rational; solutions accidental* ORGANIZATIONAL MODELS OF DECISION MAKING

26. 3.26 IMPLICATIONS FOR DESIGN & UNDERSTANDING INFO SYSTEMS ENVIRONMENTSTRUCTURECULTUREPOLITICS*

27. 3.27 Connect to the INTERNET Laudon/Laudon Web site: http://www.prenhall.com/laudon Additional Internet Resources related to this chapter: http://spot.colorado.edu/~isoadm/ http://tools.org/EI/ICEIMT http://www.brint.com/ http://www.santafe.edu/ http://www.reengineering.com/ http://bprc.warwick.ac.uk/www-site/bpr2indx.html http://www.cio.com/forums/erp http://www.eil.utoronto.ca/eil.html http://www.erpsupersite.com © 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e

28. 3.28 CHAPTER 3. INFORMATION SYSTEMS, ORGANIZATIONS, & MANAGEMENT: BUSINESS PROCESSES & ENTERPRISE SYSTEMS