ch03 - Chapter 3. Organizational Impacts of Information...

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1 Chapter 3. Organizational Impacts of Information Systems Use Managing and Using Information Systems: A Strategic Approach
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2 Introduction: Diamond Tech Partners/Mrs. Fields Cookies DTP: intense use of computers, shared data, extensive electronic communications foster high levels of interaction & fluid, highly adaptable work arrangements. Mrs. Fields IS focused on sales skills not simply production. IS is fundamental to the way these companies are organized to do business. IS can leverage human resources, capital and materials.
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3
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4 IS and Organizational Design “IS comprise a fundamental organizational component that affects the way managers design their organizations. IS & IT can leverage human resources, capital, and materials to create an organization that optimizes performance.”
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5 INFORMATION AGE ORGANIZATIONS
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6 Figure 3.1a Organizational Design Variables Decision rights: authority to initiate, approve, implement and control various types of decisions necessary to plan and run the business. Business processes: the set of ordered tasks needed to complete key objectives of the business Formal reporting relationships: the structure set up to ensure coordination among all units within the organization. Informal networks: mechanism, such as ad hoc groups, which work to coordinate and transfer information outside formal reporting relationships.
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7 Figure 3.1b Control and Cultural Organizational Design Variables Data: the information collected, stored and used by the organization Planning: the processes by which future direction is established, communicated and implemented. Performance measurement and evaluation: the set of measures that are used to assess success in the execution of plans and the processes by which such measures are used to improve the quality of work. Incentives: the monetary and non-monetary devices used to motivate behavior within an organization Values: the set of implicit and explicit beliefs that underlie decisions made and actions taken.
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8 Key Characteristics of Information Age Organizations As predicted by three Harvard Business School professors in 1988, these characteristics cover three main areas: 1. Organizational structure 2. Human resources 3. Management processes
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9 Figure 3.2 Organizational Characteristics of Information Age Organizations Dimension Characteristics Organizational Structure Companies have benefits of small and large scale simultaneously. Lg. organizations adopt flexible/dynamic structure
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ch03 - Chapter 3. Organizational Impacts of Information...

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