Chapter 2 ISM 3113 Notes - ISM 3113 Notes/Chapter 2...

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ISM 3113 Notes/Chapter 2 Understanding & Modeling Organizational Systems Analysts need to comprehend the systems they work is as, systems shaped through the interactions of three (3) main forces: Levels of Management Design of Organizations Organizational Cultures Organizations are large systems composed of interrelated subsystems that cut horizontally across the organizational system. The subsystems are influenced by three (3) broad levels of management: Decision Makers – Operations Middle Management Strategic Management To ascertain information requirements properly and to design appropriate information systems, it is of primary importance to understand the organization as a whole. All systems are composed of subsystems (which include information systems); therefore, when studying an organization, we also examine how smaller systems are involved and how they function. Interrelatedness and Interdependence of Systems All systems and subsystems are interrelated and interdependent. When any element of a system is changed or eliminated, the rest of the system’s elements and subsystems are also significantly affected. All systems process inputs from their environments. By definition, processes change or transform inputs into outputs. Whenever you examine a system, check to see what is being changed or processed. If nothing is changed, you may not be identifying a process . Typical processes in systems include verifying, updating and printing . All systems are contained by boundaries are contained by boundaries separating them from their environments. Organizational boundaries exist on a continuum ranging from extremely permeable to almost impermeable. To continue to adapt and survive, organizations must be able to first import people, raw materials and information through their boundaries (inputs) , and then to exchange their finished products, services, or information with the outside world (outputs) .
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Feedback is one form of a system control. ( Figure 2.1 on page 20 ) System outputs are used as feedback that compares performance with goals. This comparison helps managers formulate more specific goals as inputs. As example, a U.S. manufacturing company uses sales information as feedback to make decisions on what quantities of each color to produce, based on sales information that shows the Red, White, and Blue product sold better during the Olympic Games. One year after the Olympics, the gunmetal sets were a higher seller. Feedback in this instance is used for planning and control. The ideal system would be one that self-corrects or self-regulates, in such a way that decisions on typical occurrences are not required. An example would be a supply chain that takes into account current and projected demand and formulates a proposed solution as output ; or a knitwear company that makes most of its sweaters in White, and then uses its computerized inventory information to find out what colors are selling best, and then dyes the sweaters in hot-selling colors immediately before shipping them.
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