3.

1
LEARNING OBJECTIVES
DESCRIBE CHARACTERISTICS OF
ORGANIZATIONS
RELATE INFO SYSTEMS TO
ORGANIZATIONS
COMPARE MODELS DESCRIBING
SYSTEM ORIGINS
*
3.2
LEARNING OBJECTIVES
COMPARE THEORIES OF
ORGANIZATIONS
ANALYZE IMPACT OF INFO SYSTEM
ON ORGANIZATION
DESCRIBE IMPLICATIONS OF
SYSTEM DESIGN &
IMPLEMENTATION

*
3.3
MANAGEMENT CHALLENGES
DIFFICULTIES OF MANAGING
CHANGE
ADJUSTING TECHNOLOGY AND
ORGANIZATION FOR OPTIMAL FIT
*
3.4
MEDIATING FACTORS:
Environment
Culture
Structure
Standard Procedures
Politics
Management Decisions
Chance

ORGANIZATIONS &
INFORMATION TECHNOLOGY
ORGANIZATIONS
INFORMATION
TECHNOLOGY
3.5
VP VP VP
CEO
ORGANIZATION
TECHNICAL DEFINITION:

STABLE, FORMAL STRUCTURE
TAKES RESOURCES FROM
ENVIRONMENT
PROCESSES THEM
TO PRODUCE OUTPUTS
*
3.6
E
N
V
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O
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M
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A
L

R
E
S
O
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R
C
E
S

E
N
V
I
R
O
N
M
E
N
T
A
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O
U
T
P
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T
S

BEHAVIORAL VIEW OF ORGANIZATIONS
STRUCTURE:
Hierarchy
Division of labor
Rules, Procedures
PROCESS:
Rights/Obligations
Privileges/Responsibilities
Values
Norms
People
*
3.7
STRUCTURAL CHARACTERISTICS OF
ALL ORGANIZATIONS
CLEAR DIVISION OF LABOR
HIERARCHY
EXPLICIT RULES & PROCEDURES
IMPARTIAL JUDGMENTS
TECHNICAL QUALIFICATIONS
MAXIMUM ORGANIZATIONAL
EFFICIENCY
*
3.8
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
ORGANIZATION & ITS ENVIRONMENT
THE FIRM
INFORMATION SYSTEMS
THE ENVIRONMENT:
RESOURCES & CONSTRAINTS
GOVERNMENTS
COMPETITORS
FINANCIAL INSTITUTIONS
CULTURE
KNOWLEDGE
TECHNOLOGY
3.10
SALIENT FEATURES OF
ORGANIZATIONS
COMMON FEATURES:
FORMAL STRUCTURE
STANDARD OPERATING
PROCEDURES
POLITICS
CULTURE
*

3.11
SALIENT FEATURES OF
ORGANIZATIONS
UNIQUE FEATURES:
ORGANIZATIONAL TYPE
ENVIRONMENTS, GOALS, POWER
CONSTITUENCIES, FUNCTION
LEADERSHIP, TASKS
TECHNOLOGY
LEVELS
*

3.12
WORK GROUPS, PROBLEMS,
SYSTEM SUPPORT
HIERARCHICAL: Frequent meetings,
workers dispersed
VIDEO CONFERENCING, E-MAIL
INTERDEPARTMENTAL
COMMITTEES: Need occasional
direct communication
ELECTRONIC MESSAGING
*
3.13
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,
E-MAIL
*
3.14
WORK GROUPS, PROBLEMS,
SYSTEM SUPPORT
TASK FORCES: Rapid
communication, internal/external
data
GRAPHICS DISPLAY, INFORMATION/
DOCUMENTATION INTERCHANGE
PEER GROUPS: Intense personal
communication
TELEPHONE, E-MAIL
*
3.15
PROBLEMS OF ALL WORK GROUPS
MAKING ARRANGEMENTS
ATTENDING MEETINGS
LONG AGENDA
COST OF MEETINGS
BETWEEN-MEETING ACTIVITIES
*
3.16
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
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
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
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
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
*
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
3.21
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
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
POSTINDUSTRIAL THEORY: Flatter
organizations; dominated by
knowledge workers; decentralized
decision making
CULTURAL THEORY: Information
technology must fit organizations
culture to be accepted
*
3.23
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
POLITICAL THEORY: Info systems
are outcome of political competition
for policies, procedures, resources
*
3.24
IMPLEMENTING CHANGE
Source: Leavitt, Handbook of Organization (1965)
TASK
PEOPLE TECHNOLOGY
STRUCTURE
RESISTANCE
MUTUAL
ADJUST
MENT
3.25
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
IMPLICATIONS FOR DESIGN &
UNDERSTANDING INFO SYSTEMS
ENVIRONMENT
STRUCTURE
CULTURE
POLITICS
*
3.27
ROLE OF MANAGERS
INTERPERSONAL: Figureheads,
leaders, liaison
INFORMATIONAL: Receive &
disseminate critical information
DECISIONAL: Initiate activities,
handle disturbances, allocate
resources, negotiate conflicts
*
3.28
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
3.30