1. 11 Chapter Information and Control Processes ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Understanding the Theory & Design of Organizations Eleventh Edition Richard L. Daft

2. 2 Purpose of this chapter How information technology (IT) is used for decision making and control of the organization How IT can add strategic value in organization for internal coordination for external coordination Present an overview of how IT affects organization design & interorganizational relationship ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. 3 Evolution of Organizational Applications of Technology ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4. 4 Information for Decision Making and Control Technology can help managers make important decisions Management information systems include: – Information reporting systems – Executive information systems (EIS) – Decision support systems (DSS) Organizations are using technology to add strategic value ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. What is Big Data Large, complex, difficult to process using on- hand database management tools or traditional data processing applications. Difference: Traditional way: Looking at detail description Big data: Looking at why and causal relationship Theoretical thinking is critical & essential in big data analysis 5

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9. The latest news Apple recently buys social-media analytics firm, Topsy Lab, for more than $200 million Topsy is a social analytics company that gives you instant answers to critical business questions through real-time analysis of public conversations (Twitter) Many of the world’s largest brands also use Topsy as their day-to-day social dashboard to discover and track the impact of trending topics and predict future events Institute for Information Industry (III, 資策會 ) offers similar service in Taiwan as well 9

10. 10 Managerial Control and Decision Making ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11. 11 A Simplified Feedback Control Model ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. 12 Management Control Systems Formal routines, reports, and procedures Formalized information based activities Controls include: – Budgets, financial reports – Reward systems – Quality control systems Managers must define standards and measure performance ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. Control Systems/Content Frequency 13 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. An Executive Dashboard 14 ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15. 15 The Level and Focus of Control Systems Organizational Level: The Balanced Scorecard – Measures financial, customer, employee, and market concerns – Comprehensive management control system – Strategy map – visualization of organization success drivers and how they are linked Departmental Level: Behavior versus Outcome Control – Low autonomy due to job is routinized – High autonomy as long as produce desired outcomes ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. Major Perspectives of the Balanced Scorecard ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17. Strategy Map for Performance Management ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. HR architecture 18

19. However… 19 In sociology aspect, modern organization design over-penetrate our personal life. Mobile phone, social media, home-base working, and etc. Work-Life balanced HR practice a concern of those interested in the quality of working life and its relation to broader quality of life avoid sudden death (karoshi)

20. 10 mins break 20

21. 21 Strategic Approach I: Strengthening Employee Coordination and Efficiency Increasing internal coordination with customers and external partners Intranets Social Networking Knowledge Management Enterprise Resource Planning ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

22. Internal Aspect… Intranet: a computer network to share information, operational systems, or computing services within an organization KM: the process of capturing, developing, sharing, and effectively using org. knowledge SN: pretty much like social media, peer-to-peer communication channel ERP: a system that is used to manage and coordinate all the resources, information, and functions of a business 22

23. 23 Two Approaches to Knowledge Management ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

24. 24 Example of ERP Network ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

25. 25 Strategic Approach II: Strengthening Coordination with External Partners Strengthening External Coordination with information technology – Supply Chain Management – Integrated enterprise – Enhancing customer relationships – eBusiness organizational design The Integrated Enterprise – Information linkages are key for coordination – Horizontal relationships coordinate the supply chain to meet customer needs ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

26. 26 The Integrated Enterprise ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

27. Corrugated Supplies System in Action ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

28. 28 Customer Relationships Many companies are applying technology to build customer relationships Social Media Directors are blending marketing, promotions, customer service, and support through Facebook, Twitter, and company websites 65% of companies use company blogs to communicate with customers For CEOs, blogs and Twitter have become requirements ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

29. Social Capital Social capital can summarize the coordination and cooperation in efficient way, either internal or external. Features of social life (networks, norms, and trust) that enable participants to act together more effectively to pursue shared objectives. 29

30. Bonding Social Capital Close relationships between similar people; social ties in your immediate life such as family, friends; “within the group structure”; the informal realm Cohesion Dark side of BSC 30

31. Bridging Social Capital Bridging social capital is given by horizontal ties shaping heterogeneous groups of people with different backgrounds. The term bridging refers to the ability of such networks to create “bridges” connecting sectors of society that, otherwise, would have never come into contact. The common claim is that such relationships have positive effects on the diffusion of information and trust, thus fostering transactions and economic growth. 31

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33. Why this matter Bridging and bonding social capital may result in benefits through mechanisms such as faster diffusion of knowledge regarding innovations, maintenance of professional norms. Bridging – potential for “empowerment and development projects” 33

34. 34 E-Business Organization Design E-business is any business that takes place over a computer network E-commerce is transforming to m-commerce as more transactions take place on mobile devices Managers must figure out bricks and clicks (online & offline) strategies – Separate business – Spin-off companies – Joint ventures ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

35. 35 Strategies for Integrating Bricks and Clicks ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

36. 36 IT Impact on Organization Design ✓ Smaller Organizations ✓ Decentralized Organizational Structures ✓ Improved Horizontal Coordination ✓ Improved Interorganizational Relationships ✓ Enhanced Network Structures ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

37. 37 Key Characteristics of Traditional vs. Emerging Interorganizational Relationships ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

38. 38 Design Essentials ✓ Successful organizations leverage technology ✓ Technology aids in better decision-making ✓ Organizations must employ controls to measure performance ✓ Technology is adding strategic value internally and externally ✓ Technology is impacting the design of organizations ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.