3.1 © 2010 by Pearson 3Chapter Information Systems, Organizations, and Strategy.
3.1 © 2002 by Prentice Hall c h a p t e r 3 3 INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND...
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Transcript of 3.1 © 2002 by Prentice Hall c h a p t e r 3 3 INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND...
3.3.11 © 2002 by Prentice Hall
c h a p t e r
33INFORMATION INFORMATION
SYSTEMS, SYSTEMS, ORGANIZATIONS, ORGANIZATIONS, MANAGEMENT, MANAGEMENT, AND STRATEGYAND STRATEGY
3.3.22 © 2002 by Prentice Hall
LEARNING OBJECTIVESLEARNING OBJECTIVES
• IDENTIFY SALIENT CHARACTERISTICS IDENTIFY SALIENT CHARACTERISTICS OF ORGANIZATIONSOF ORGANIZATIONS
• ANALYZE RELATIONSHIP BETWEEN ANALYZE RELATIONSHIP BETWEEN INFO SYSTEM & ORGANIZATIONSINFO SYSTEM & ORGANIZATIONS
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© 2002 by Prentice Hall
3.3.33 © 2002 by Prentice Hall
LEARNING OBJECTIVESLEARNING OBJECTIVES
• CONTRAST THEORIES OF CONTRAST THEORIES OF ORGANIZATIONSORGANIZATIONS
• DESCRIBE DECISION PROCESSESDESCRIBE DECISION PROCESSES
• EVALUATE ROLE OF INFORMATION EVALUATE ROLE OF INFORMATION SYSTEMS IN SUPPORTING BUSINESS SYSTEMS IN SUPPORTING BUSINESS STRATEGYSTRATEGY
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© 2002 by Prentice Hall
3.3.44 © 2002 by Prentice Hall
MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
• ORGANIZATIONS & INFORMATION ORGANIZATIONS & INFORMATION SYSTEMSSYSTEMS
• CHANGING ROLES OF SYSTEMS IN CHANGING ROLES OF SYSTEMS IN ORGANIZATIONSORGANIZATIONS
• MANAGERS, DECISION MAKING & MANAGERS, DECISION MAKING & INFORMATION SYSTEMSINFORMATION SYSTEMS
• INFORMATION SYSTEMS & BUSINESS INFORMATION SYSTEMS & BUSINESS STRATEGYSTRATEGY
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3.3.55 © 2002 by Prentice Hall
MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
1. SUSTAINABILITY OF 1. SUSTAINABILITY OF COMPETITIVE ADVANTAGECOMPETITIVE ADVANTAGE
2. FITTING TECHNOLOGY & 2. FITTING TECHNOLOGY & ORGANIZATIONORGANIZATION
**
3.3.66 © 2002 by Prentice Hall
MEDIATING FACTORS:MEDIATING FACTORS: Environment Environment CultureCultureStructure Structure Standard Procedures Standard Procedures Politics Politics Management Decisions Management Decisions ChanceChance
ORGANIZATIONS & INFORMATION ORGANIZATIONS & INFORMATION TECHNOLOGYTECHNOLOGY
ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY
3.3.77 © 2002 by Prentice Hall
VP VP VP
CEOORGANIZATIONORGANIZATION
TECHNICAL DEFINITION:TECHNICAL DEFINITION:
STABLE, FORMAL STRUCTURESTABLE, FORMAL STRUCTURE
• TAKES RESOURCES FROM TAKES RESOURCES FROM ENVIRONMENT AND PROCESSES ENVIRONMENT AND PROCESSES THEM TO PRODUCE OUTPUTSTHEM TO PRODUCE OUTPUTS
**
3.3.88 © 2002 by Prentice Hall
TECHNICAL MICROECONOMIC DEFINITION TECHNICAL MICROECONOMIC DEFINITION OF ORGANIZATIONOF ORGANIZATION
OUTPUTS TO ENVIRONMENT
ORGANIZATIONORGANIZATION
PRODUCTION PROCESS
INPUTS FROMENVIRONMENT
3.3.99 © 2002 by Prentice Hall
ORGANIZATIONORGANIZATION
BEHAVIORAL DEFINITION:BEHAVIORAL DEFINITION:
COLLECTION OF:COLLECTION OF:
• RIGHTS, PRIVILEGES, RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIESOBLIGATIONS, RESPONSIBILITIES
• DELICATELY BALANCEDDELICATELY BALANCED
• CONFLICT RESOLUTIONCONFLICT RESOLUTION
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3.3.1010 © 2002 by Prentice Hall
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FORMAL ORGANIZATIONFORMAL ORGANIZATION
STRUCTURE:STRUCTURE: HierarchyHierarchyDivision of Division of
laborlabor Rules, ProceduresRules, Procedures
PROCESS:PROCESS: Rights/Rights/ObligationsObligations Privileges/ResponsibilitiesPrivileges/Responsibilities ValuesValues
NormsNormsPeoplePeople
3.3.1111 © 2002 by Prentice Hall
STRUCTURAL CHARACTERISTICS OF ALL STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONSORGANIZATIONS
• CLEAR DIVISION OF LABORCLEAR DIVISION OF LABOR• HIERARCHYHIERARCHY• EXPLICIT RULES & PROCEDURESEXPLICIT RULES & PROCEDURES• IMPARTIAL JUDGMENTSIMPARTIAL JUDGMENTS• TECHNICAL QUALIFICATIONSTECHNICAL QUALIFICATIONS• MAXIMUM ORGANIZATIONAL MAXIMUM ORGANIZATIONAL
EFFICIENCYEFFICIENCY
**
3.3.1212 © 2002 by Prentice Hall
COMMON FEATURES OF COMMON FEATURES OF ORGANIZATIONSORGANIZATIONS
• FORMAL STRUCTUREFORMAL STRUCTURE
• STANDARD OPERATING STANDARD OPERATING PROCEDURESPROCEDURES
• POLITICSPOLITICS
• CULTURECULTURE
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3.3.1313 © 2002 by Prentice Hall
UNIQUE FEATURES OF UNIQUE FEATURES OF ORGANIZATIONSORGANIZATIONS
• ORGANIZATIONAL TYPES ORGANIZATIONAL TYPES
• ENVIRONMENTS, GOALS, POWERENVIRONMENTS, GOALS, POWER
• CONSTITUENCIES, FUNCTIONCONSTITUENCIES, FUNCTION
• LEADERSHIP, TASKSLEADERSHIP, TASKS
• TECHNOLOGYTECHNOLOGY
• BUSINESS PROCESSESBUSINESS PROCESSES
**
3.3.1414 © 2002 by Prentice Hall
ORGANIZATIONAL STRUCTURESORGANIZATIONAL STRUCTURES
• ENTREPRENEURIAL:ENTREPRENEURIAL: Startup business Startup business• MACHINE BUREAUCRACY:MACHINE BUREAUCRACY: Mid-sized Mid-sized
manufacturing firmmanufacturing firm• DIVISIONALIZED BUREAUCRACY:DIVISIONALIZED BUREAUCRACY: Fortune Fortune
500500• PROFESSIONAL BUREAUCRACY:PROFESSIONAL BUREAUCRACY: Law Law
firms, hospitalsfirms, hospitals• ADHOCRACY:ADHOCRACY: Consulting firm Consulting firm
**
3.3.1515 © 2002 by Prentice Hall
ORGANIZATION & ITS ENVIRONMENTORGANIZATION & ITS ENVIRONMENT
THE FIRM
INFORMATION SYSTEMSINFORMATION SYSTEMS
THE ENVIRONMENT:THE ENVIRONMENT:
RESOURCES & CONSTRAINTS
GOVERNMENTS
COMPETITORS
FINANCIAL INSTITUTIONS
CULTURE
KNOWLEDGE
TECHNOLOGY
3.3.1616 © 2002 by Prentice Hall
INFORMATION SYSTEMS DEPARTMENTINFORMATION SYSTEMS DEPARTMENT
• PROGRAMMERS:PROGRAMMERS: Write software Write software
• SYSTEMS ANALYSTS:SYSTEMS ANALYSTS: Translate Translate business problems into solutionsbusiness problems into solutions
• ISIS MANAGERS: MANAGERS: Department leaders Department leaders
• END USERS:END USERS: Department reps for Department reps for whom applications are whom applications are developed developed
**
3.3.1717 © 2002 by Prentice Hall
THE ORGANIZATIONTHE ORGANIZATION SENIOR MANAGEMENTSENIOR MANAGEMENT MAJOR END-USERS (DIVISIONS) MAJOR END-USERS (DIVISIONS)
INFORMATION SYSTEMS DEPARTMENTINFORMATION SYSTEMS DEPARTMENT
IT Infrastructure:IT Infrastructure:
HardwareHardwareSoftwareSoftwareData NetworksData Networks
Information System Information System Specialists:Specialists:
CIOCIOManagersManagersSystem AnalystsSystem AnalystsSystem DevelopersSystem DevelopersProgrammersProgrammersNetwork SpecialistsNetwork SpecialistsDatabase AdministratorDatabase AdministratorClericalClerical
3.3.1818 © 2002 by Prentice Hall
HOW INFO SYSTEMS HOW INFO SYSTEMS AFFECT ORGANIZATIONSAFFECT ORGANIZATIONS
• MICROECONOMIC MODEL:MICROECONOMIC MODEL: Info Info technology is a factor of production, technology is a factor of production, like capital & laborlike capital & labor
• TRANSACTION COST THEORY:TRANSACTION COST THEORY: Firms attempt to minimize Firms attempt to minimize transaction costs internally & transaction costs internally & externallyexternally
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3.3.1919 © 2002 by Prentice Hall
• AGENCY THEORY:AGENCY THEORY: Firm is nexus of Firm is nexus of contracts among self-interested parties contracts among self-interested parties requiring supervisionrequiring supervision
• BEHAVIORAL THEORIES:BEHAVIORAL THEORIES: Info systems Info systems could change hierarchy of decision could change hierarchy of decision making; reduce need for middle making; reduce need for middle management & clerical support; management & clerical support; distribute informationdistribute information
**
HOW INFO SYSTEMS HOW INFO SYSTEMS AFFECT ORGANIZATIONSAFFECT ORGANIZATIONS
3.3.2020 © 2002 by Prentice Hall
IMPLEMENTING CHANGEIMPLEMENTING CHANGE
Source: Leavitt, Handbook of Organization (1965)
TASKTASK
PEOPLEPEOPLETECHNOLOGYTECHNOLOGY
STRUCTURESTRUCTURE
RESISTANCERESISTANCE
MUTUALMUTUALADJUSTMENTADJUSTMENT
3.3.2121 © 2002 by Prentice Hall
INTERNET & ORGANIZATIONSINTERNET & ORGANIZATIONS
• E-mail communicationE-mail communication
• Electronic handbooks published & Electronic handbooks published & revisedrevised
• Interactive training classesInteractive training classes
• Employees review, update personal Employees review, update personal datadata
**
3.3.2222 © 2002 by Prentice Hall
ROLE OF MANAGERSROLE OF MANAGERS
• CLASSICAL:CLASSICAL: Describe functions- Describe functions- plan, organize, coordinate, decide, plan, organize, coordinate, decide, controlcontrol
• BEHAVIORAL:BEHAVIORAL: Based on Based on observations of managers on the jobobservations of managers on the job
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3.3.2323 © 2002 by Prentice Hall
INFO SYSTEMS, LEVELS, DECISIONSINFO SYSTEMS, LEVELS, DECISIONS
TPSOAS MIS
KWS
DSS
ESS
ORGANIZATIONAL LEVELORGANIZATIONAL LEVELTYPE OFTYPE OFDECISIONDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC
STRUCTURED ACCOUNTS RECEIVABLE
ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS
SEMI- BUDGETSTRUCTURED PREPARATION
PROJECTSCHEDULING
FACILITYLOCATION
UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS
3.3.2424 © 2002 by Prentice Hall
STAGES OF STAGES OF DECISION MAKINGDECISION MAKING• INTELLIGENCE:INTELLIGENCE: Collect Collect information; information;
identify problemidentify problem• DESIGN:DESIGN: Conceive alternatives; select Conceive alternatives; select
criteriacriteria• CHOICE:CHOICE: Use criteria to evaluate Use criteria to evaluate
alternatives; select alternatives; select • IMPLEMENTATION:IMPLEMENTATION: Put decision into Put decision into
effect; allocate resources; controleffect; allocate resources; control
**
SOURCE: Simon, The New Science of Management Decision (1960)
3.3.2525 © 2002 by Prentice Hall
• RATIONAL:RATIONAL: Comprehensive Comprehensive rationality; evaluate all rationality; evaluate all alternativesalternatives
• SYSTEMATIC:SYSTEMATIC: Structured, formal Structured, formal methodmethod
• INTUITIVE:INTUITIVE: Trial & error, unstructured, Trial & error, unstructured, multiple approachmultiple approach
**
INDIVIDUAL MODELS OFINDIVIDUAL MODELS OFDECISION MAKINGDECISION MAKING
3.3.2626 © 2002 by Prentice Hall
• BUREAUCRATIC:BUREAUCRATIC: Follow Follow standard operating procedures standard operating procedures (SOP)(SOP)
• POLITICAL:POLITICAL: Key groups compete and Key groups compete and bargainbargain
• ““GARBAGE CAN”:GARBAGE CAN”: Organizations not Organizations not rational; solutions accidentalrational; solutions accidental
**
ORGANIZATIONAL ORGANIZATIONAL MODELS OF MODELS OF DECISION MAKINGDECISION MAKING
3.3.2727 © 2002 by Prentice Hall
BUSINESSBUSINESS LEVEL STRATEGY LEVEL STRATEGY
LOCK IN CUSTOMERS & SUPPLIERSLOCK IN CUSTOMERS & SUPPLIERS• SUPPLY CHAIN MANAGEMENT:SUPPLY CHAIN MANAGEMENT: Stockless Stockless
inventories, continuous replenishment, just-in-inventories, continuous replenishment, just-in-time deliverytime delivery
• INTRA FIRM STRATEGY:INTRA FIRM STRATEGY: Product Product differentiation, focused differentiation, low-cost differentiation, focused differentiation, low-cost producerproducer
• EFFICIENT CUSTOMER RESPONSE:EFFICIENT CUSTOMER RESPONSE: Point-of- Point-of-sale systems, dataminingsale systems, datamining
**
3.3.2828 © 2002 by Prentice Hall
COMPETITIVECOMPETITIVE FORCES MODEL FORCES MODEL
SUBSTITUTE PRODUCTS &
SERVICES
NEW MARKET ENTRANTS
SUPPLIERS CUSTOMERS
THE FIRMTRADITIONAL
INDUSTRY COMPETITORS
THE THE INDUSTRYINDUSTRY
3.3.2929 © 2002 by Prentice Hall
COMPETITIVECOMPETITIVE FORCES MODEL FORCES MODEL
SUBSTITUTE PRODUCTS &
SERVICES
NEW MARKET ENTRANTS
SUPPLIERS CUSTOMERS
INDUSTRY INDUSTRY SETSET
INDUSTRY COMPETITORS
INDUSTRY 4
INDUSTRY 3
INDUSTRY 2
INDUSTRY 1
3.3.3030 © 2002 by Prentice Hall
c h a p t e r
33INFORMATION INFORMATION
SYSTEMS, SYSTEMS, ORGANIZATIONS, ORGANIZATIONS, MANAGEMENT, MANAGEMENT, AND STRATEGYAND STRATEGY