'Types of Organization\r'

'LESSON 2: ORGANIZATIONAL info SYSTEMS An introductory topic on concern study System Organizations argon formal social units add to the attainment of specific goals. The success of every plaques is lead on the efficient aim and guidance of resources which traditionally comprises human, pecuniary, and material resources. tuition is instantaneously recognized as a crucial resource of an arranging. Examples of organizations be naturalise steadys, banks, government agencies, hospitals, educational institutions, insurance companies, airlines, and utilities.Organizations and development arrangings crap a mutual influence on all(prenominal) different. The instruction unavoidably of an organization affect the outsideize of information constitutions and an organization mustiness be founder itself to the influences of information systems in rate to more in full benefit from sweet technologies. [pic] This complex two-way human affinity is mediated by many fact ors, not the to the lowest degree of which are the closings makeâ€or not madeâ€by managers. Other factors mediating the relationship are the organizational horticulture, bureaucracy, politics, business fashion, and pure chance. 1. Organizations and milieus Organizations reside in environments from which they bind resources and to which they supply graves and services. Organizations and environments fill a reciprocal relationship. • Organizations are open to, and dependent on, the social and physical environment that surrounds them. Without financial and human resourcesâ€people willing to work reliably and consistently for a set betroth or revenue from customersâ€organizations could not personify. • Organizations must act to legislative and some other bringments imposed by government, as well as the actions of customers and competitors. On the other hand, organizations crowd out influence their environments. Organizations form alliances with othe rs to influence the political surgical procedure; they advertise to influence customer acceptance of their products. randomness systems are key instruments for environmental s send packingning, answering managers draw external salmagundis that might require an organizational response. immature technologies, new products, and changing public tastes and values (many of which give in new government regulations) put strains on any organization’s culture, politics, and people. | 2. Standard run procedures (SOPs) Precise rules, procedures, and practices explicateed by organizations to cope with well-nigh all expected situations. These standard operating(a) procedures have a great deal to do with the energy that modern organizations attain. 3. organizational Politics People in organizations occupy different positions with different specialties, concerns, and perspectives.As a result, they of course have divergent viewpoints about how resources, rewards, and punishments should be distributed. These differences issue to both(prenominal) managers and employees, and they result in political struggle, competition, and passage of arms within every organization. Political resistance is adept of the great difficulties of bringing about organizational changeâ€especially the development of new information systems. to the highest degree all information systems that bring about large changes in goals, procedures, productivity, and personnel are politically aerated and elicit serious political opposition. . Organizational culture Organizational culture describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as â€Å"the specific collection of values and norms that are make outd by people and groups in an organization and that control the way they interact with each other and with s call backholders outside the organization. • It is the set of fundamental assu mptions about what products the organization should produce, how and where it should produce them, and for whom they should be produced. It is a powerful merge force that restrains political conflict and promotes common understanding, musical arrangement on procedures, and common practices • organizational culture is a powerful restraint on change, especially expert change. Most organizations will do almost anything to obviate making changes in basic assumptions. Any expert change that threatens comm hardly held cultural assumptions commonly satiates a great deal of resistance.However, there are multiplication when the only sensible way for a sign to move forward is to employ a new technology that directly opposes an animated organizational culture. Types of Organizational teaching systems finish making is practically a manager’s most challenging role. Information systems have helped managers communicate and distribute information and picture assistance for forethought closing making. No mavin system provides all the information demanded by the different organizational trains, persists and business processes.Organizations seat be divided into strategic, wariness, and operational levels. 1. Operational-level systems run operational managers necessitate for true, accurate and easily comingible information generally used to keep rail of the elementary activities and legal proceeding of the organization. Decision making for operational control determines how to sustain out the specific capers set forth by strategic and halfway management decisions. 2. Management-level systems are designed to lot the monitoring, controlling, decision-making, and administrative activities of middle managers.Decision making for management control focuses on efficiency and effective use of resources. It requires knowledge of operational decision making and task completion. 3. Strategic- level systems help senior managers with long-range pl an needed to meet changes in the external and inwrought business environment. Strategic decision determines the long-term objectives, resources and policies of the organization. Decisions at every level of the organization can similarly be classified as unstructured, structured and semi-structured. uncrystallised decisions involve judgment, evaluation, and insight into the conundrum definition. They are novel, important, and nonroutine. • structured decisions are routine • Semi-structured decisions involve cases where only bureau of the problem can be answered by an real procedure. Modern information systems have been most happy with structured, operational and management control decisions. But now most of the exciting applications are occurring at the management knowledge and strategic levels where problems are either semi-structured or unstructured.TYPES OF ORGANIZATIONAL INFORMATION SYSTEM Following are the different types on information systems that gage the ineluctably of the organization: decision maker information systems (EIS), Decision sustentation systems (DSS), Management Information Systems(MIS), and Transaction Processing Systems (TPS). A. Executive information systems (EIS) provide top management with raise plan of attack to a variety of summarized company info a come throughst a background of general information on the industry and the economy at large.ESS provides a generalise computing and communications environment for senior managers at the strategic level of the organization. Top management of any organization need to be fitted to surmount the cognitive process of their company and of its motley units, assess the opportunities and threats, and develop strategic directions for the company’s future. Executive information systems have these characteristics: 1. EIS provide immediate and easy vex to information reflecting the key success factors of the company and of its units. 2. User-seductive” in terfaces, oftenmagazines(prenominal) as color graphics and video, allow the EIS drug user to grasp trends at a glance. Users’ time is at a high premium here. 3. EIS provide access to a variety of entropybases, both internal and external, by a uniform interface — the fact that the system consults multiple databases should be transparent to the users. 4. Both current status and projections should be available from EIS. It is frequently preferred to investigate different projections; in peculiar(prenominal), planned projections whitethorn be compared with the projections derived from actual results. . An EIS should allow easy orient to the prefaces of the particular user or group of users (such(prenominal)(prenominal) as the chief administrator’s cabinet or the corporate board). 6. EIS should offer the capability to â€Å"drill great deal” into the data: it should be possible to see progressively detailed the summaries. Critical Success factors for achieving a winning EIS 1. A committed and informed executive shit. A top level executive, preferably the CEO, should serving as the executive sponsor of the EIS by encouraging its implementation. 2. An operating sponsor.The executive sponsor will most apt(predicate) be too busy to devote much time to implementation. That task should be given to whatsoever other top-level executive, such as the executive vice-president. The operating sponsor works with both the user executives and the information specialists to examine that the work gets done. 3. Appropriate information services staff. Information specialists should be available who understand not only the information technology but also how the executive will use the system. 4. Appropriate information technology.EIS implementers should not get carried away and incorporate un requirement ironware or software. The system must be unplowed as simple as possible and should give the executive exactly what him or her regards- nu ll more and nothing less. 5. Data Management. It is not sufficient to simply peril data or information. The executive should have some idea of how current the data is. This can be accomplished by identifying the day and ideally the time of the day the data was entered. The executive should be able to follow data analysis. . A clear plug into to business objectives. Most successful EISs are designed to solve specific problems or meet needs that can be addressed with information technology. 7. Management of organizational resistance. When an executive resists the EIS, efforts should be taken to gain support. A good strategy is to identify a single problem that the executive faces and then apace implement an EIS, use prototyping to address that problem. Care must be taken to select a problem that will enable the EIS to make a good showing. . Management of the spread and evolution of the system. Experience has sh deliver that when high-level management begins receiving information f rom the EIS, lower level managers want to receive the same output. Care must be taken to add users only when they can be given the attention they need. B. Management information systems (MIS) †serve the management level of the organization, providing managers with reports and, in some cases, with online access to the organization’s current performance and diachronic records.Typically, they are oriented almost exclusively to internal, not environmental or external, events. MIS primarily serve the functions of planning, controlling, and decision making at the management level. Generally, they depend on underlying action bear on systems for their data C. Decision support systems (DSS), is a type of MIS expressly real to support the decision-making process in non-routine task. DSS assist middle managers with analytical decisions, and able to address semistructured problems drawing on both internal and external sources of data 1.It is an synergistic computer-based system intended to help managers retrieve, summarize, analyze decision relevant data and make decisions. 2. DSS facilitate a dialogue amidst the user, who is considering alternative problem solutions, and the system, with its underlying models and access to the database. 3. DSS are interactive, and in a typical session, the manager using a DSS can survey a number of possible â€Å"what if” scenarios by using a model or a assumption of a real life system. Two study categories of DSS 1. Enterprise-wide DSS are linked to large, data warehouse and serve many managers in a company.Enterprise wide DSS can range from fairly simple systems to complex data intensive and analytically sophisticated executive information system. 2. Desk-top DSS such as spreadsheets, accounting and financial models can be implemented in Microsoft Excel. Another DSS tool, simulation, is usually implemented in desktop packages. D. Transaction processing systems (TPS) is the core of IT applications in busine ss since it serves the operational level of the organization by recording the daily transactions necessary to conduct business.Most mission- critical information systems for both large and small organizations are essentially transaction processing systems for operational data processing that is needed, for example, to enter customer orders and to produce invoices and payroll checks. This system keeps track of money paid to employees, generating employee paychecks and other reports. A emblematical representation for a payroll TPS Typical applications of TPS there are five functional categories of TPS: gross sales/marketing, manufacturing/ toil, finance/accounting, human resources, and other types of systems specific to a particular industry.Within each of these major functions are subfunctions. For each of these subfunctions (e. g. , sales management) there is a major application system. [pic] The various types of systems in the organization exchange data with one another. TPS are a major source of data for other systems, especially MIS and DSS. ESS is primarily a telephone receiver of data from lower-level systems. Systems from a Functional Perspective thither are four major functional areas in an organization: sales and marketing, manufacturing and occupation, finance and accounting, and human resources. . gross revenue and merchandise Systems The sales and marketing function is trustworthy for apportioning the organization’s product or service. Sales function is come to with contacting customers, selling the products and services, victorious orders, and following up on sales. Marketing is concerned with identifying the customers for the incorruptible’s products or services, determining what customers need or want, planning and developing products and services to meet their needs, and advertising and promoting these products and services.Sales and marketing information systems support these activities and help the pie-eyed identif y customers for the firm’s products or services, develop products and services to meet customers’ needs, promote these products and services, sell the products and services, and provide ongoing customer support. Examples of Sales and Marketing information systems are Order processing, pricing epitome and sales Trend Forecasting. 2. Manufacturing and Production Systems The manufacturing and production function is responsible for actually producing the firm’s goods and services.Manufacturing and production systems deal with the planning, development, and maintenance of production facilities; the establishment of production goals; the acquisition, storage, and availability of production materials; and the scheduling of equipment, facilities, materials, and labor required to fashion finished products. Manufacturing and production information systems support these activities, it deal with the planning, development, and production of products and services, and with c ontrolling the flow of production. 3. finance and Accounting SystemsThe finance function is responsible for managing the firm’s financial assets, such as cash, stocks, bonds, and other investments, in order to maximize the descend on these financial assets. The finance function is also in charge of managing the capitalization of the firm (finding new financial assets in stocks, bonds, or other forms of debt). In order to determine whether the firm is getting the best return on its investments, the finance function must rule a considerable amount of information from sources external to the firm.The accounting function is responsible for maintaining and managing the firm’s financial recordsâ€receipts, disbursements, depreciation, payrollâ€to account for the flow of capital in a firm. Finance and accounting share related problemsâ€how to keep track of a firm’s financial assets and fund flows. They provide answers to questions such as these: What is the current inventory of financial assets? What records exist for disbursements, receipts, payroll, and other fund flows? Examples of Finance and Accounting Systems : Accounts receivable, Budgeting, realise Planning. 4. Human Resources SystemsThe human resources function is responsible for attracting, developing, and maintaining the firm’s workforce. Human resources information systems support activities, such as identifying potential employees, maintaining complete records on existing employees, and creating programs to develop employees’ talents and skills Examples of Human resources information systems: training and development, requital analysis, and Human Resources Planning. Management Challenges Businesses need different types of information systems to support decision making and work activities for various organizational levels and functions.Well-conceived systems linking the entire enterprise typically require a significant amount of organizational and management change and raise the following management challenges: 1. Integration. Although it is necessary to design different systems serving different levels and functions in the firm, more and more firms are finding advantages in integrating systems. However, integrating systems for different organizational levels and functions to freely exchange information can be technologically difficult and costly.Managers need to determine what level of system integration is required and how much it is worth in dollars. 2. Enlarging the scope of management thinking. Most managers are instruct to manage a product line, a division, or an office. They are rarely trained to optimize the performance of the organization as a whole and often are not given the means to do so. But enterprise systems and industrial networks require managers to take a much larger view of their own behavior, including other products, divisions, departments, and even outside business firms. —————̵ 2;—- Objectives : At the end of the lesson, the students should be able to: • Illustrate the relationship between organizations and information systems • Explain the factors mediating the relationship between organizations and information systems • Discuss the different types of information systems in the organization. • Explain how information supports the different levels of an organization • flow examples of the information systems that are being used to support business functional areas\r\n'