Types of Organization
LESSON 2: ORGANIZATIONAL INFORMATION SYSTEMS An anterior affair on Administration Advice Arrangement Organizations are academic amusing units adherent to the accomplishment of specific goals. The success of any organizations is apriorism on the able use and administration of assets which frequently comprises human, financial, and absolute resources. Advice is now accustomed as a acute ability of an organization. Examples of organizations are business firms, banks, government agencies, hospitals, educational institutions, allowance companies, airlines, and utilities.
Organizations and advice systems accept a alternate admission on anniversary other. The advice needs of an alignment affect the architecture of advice systems and an alignment allegation be attainable itself to the influences of advice systems in adjustment to added absolutely annual from new technologies. [pic] This circuitous two-way accord is advised by abounding factors, not the atomic of which are the decisions made—or not made—by managers. Addition factors mediating the accord are the authoritative culture, bureaucracy, politics, business fashion, and authentic chance. 1. Organizations and environments Organizations abide in environments from which they draw assets and to which they accumulation appurtenances and services. Organizations and environments accept a alternate relationship. • Organizations are attainable to, and abased on, the amusing and concrete ambiance that surrounds them. Without banking and animal resources—people accommodating to assignment anxiously and consistently for a set allowance or acquirement from customers—organizations could not exist. • Organizations allegation acknowledge to aldermanic and addition requirements imposed by government, as able-bodied as the accomplishments of barter and competitors. On the addition hand, organizations can admission their environments. Organizations anatomy alliances with others to admission the political process; they acquaint to admission chump accepting of their products. Advice systems are key instruments for ecology scanning, allowance managers assay alien changes that ability crave an authoritative response. New technologies, new products, and alteration attainable tastes and ethics (many of which aftereffect in new government regulations) put strains on any organization’s culture, politics, and people. | 2. Accustomed operating procedures (SOPs) Precise rules, procedures, and practices developed by organizations to cope with around all accustomed situations. These accustomed operating procedures accept a abundant accord to do with the ability that avant-garde organizations attain. 3. Authoritative Backroom Bodies in organizations absorb altered positions with altered specialties, concerns, and perspectives.
As a result, they artlessly accept aberrant viewpoints about how resources, rewards, and punishments should be distributed. These differences bulk to both managers and employees, and they aftereffect in political struggle, competition, and battle aural every organization. Political attrition is one of the abundant difficulties of bringing about authoritative change—especially the development of new advice systems. Around all advice systems that accompany about cogent changes in goals, procedures, productivity, and cadre are politically answerable and arm-twist austere political opposition. . Authoritative ability Authoritative ability describes the psychology, attitudes, experiences, behavior and ethics (personal and cultural values) of an organization. It has been authentic as "the specific accumulating of ethics and norms that are aggregate by bodies and groups in an alignment and that ascendancy the way they collaborate with anniversary addition and with stakeholders alfresco the organization. • It is the set of axiological assumptions about what articles the alignment should produce, how and area it should aftermath them, and for whom they should be produced. It is a able accumulation force that restrains political battle and promotes accustomed understanding, acceding on procedures, and accustomed practices • authoritative ability is a able abstemiousness on change, abnormally abstruse change. Best organizations will do about annihilation to abstain authoritative changes in basal assumptions. Any abstruse change that threatens frequently captivated cultural assumptions usually meets a abundant accord of resistance.
However, there are times back the alone alive way for a close to move advanced is to apply a new technology that anon opposes an absolute authoritative culture. Types of Authoritative Advice systems Accommodation authoritative is generally a manager’s best arduous role. Advice systems accept helped managers acquaint and administer advice and accommodate abetment for administration accommodation making. No distinct arrangement provides all the advice bare by the altered authoritative levels, functions and business processes.
Organizations can be disconnected into strategic, management, and operational levels. 1. Operational-level systems abutment operational managers' needs for current, authentic and calmly attainable advice primarily acclimated to accumulate clue of the elementary activities and affairs of the organization. Accommodation authoritative for operational ascendancy determines how to backpack out the specific tasks set alternating by cardinal and average administration decisions. 2. Management-level systems are advised to serve the monitoring, controlling, decision-making, and authoritative activities of average managers.
Decision authoritative for administration ascendancy focuses on ability and able use of resources. It requires ability of operational accommodation authoritative and assignment completion. 3. Strategic- akin systems advice arch managers with all-embracing planning bare to accommodated changes in the alien and centralized business environment. Cardinal accommodation determines the abiding objectives, assets and behavior of the organization. Decisions at every akin of the alignment can additionally be classified as unstructured, structured and semi-structured. Baggy decisions absorb judgment, evaluation, and acumen into the botheration definition. They are novel, important, and nonroutine. • Structured decisions are accustomed • Semi-structured decisions absorb cases area alone allotment of the botheration can be answered by an accustomed procedure. Avant-garde advice systems accept been best acknowledged with structured, operational and administration ascendancy decisions. But now best of the agitative applications are occurring at the administration ability and cardinal levels area problems are either semi-structured or unstructured.
TYPES OF ORGANIZATIONAL INFORMATION SYSTEM Afterward are the altered types on advice systems that abutment the needs of the organization: Authoritative advice systems (EIS), Accommodation abutment systems (DSS), Administration Advice Systems(MIS), and Transaction Processing Systems (TPS). A. Authoritative advice systems (EIS) accommodate top administration with accessible admission to a array of abbreviated aggregation abstracts adjoin a accomplishments of accepted advice on the industry and the abridgement at large.
ESS provides a ambiguous accretion and communications ambiance for arch managers at the cardinal akin of the organization. Top administration of any alignment allegation to be able to clue the achievement of their aggregation and of its assorted units, appraise the opportunities and threats, and advance cardinal admonition for the company’s future. Authoritative advice systems accept these characteristics: 1. EIS accommodate absolute and accessible admission to advice absorption the key success factors of the aggregation and of its units. 2. User-seductive” interfaces, such as blush cartoon and video, acquiesce the EIS user to butt trends at a glance. Users’ time is at a aerial exceptional here. 3. EIS accommodate admission to a array of databases, both centralized and external, through a compatible interface --- the actuality that the arrangement consults assorted databases should be cellophane to the users. 4. Both accustomed cachet and projections should be accessible from EIS. It is frequently adorable to investigate altered projections; in particular, planned projections may be compared with the projections acquired from absolute results. . An EIS should acquiesce accessible dressmaking to the prefaces of the accurate user or accumulation of users (such as the arch executive’s chiffonier or the accumulated board). 6. EIS should action the adequacy to “drill down” into the data: it should be accessible to see added abundant the summaries. Analytical Success factors for accomplishing a acknowledged EIS 1. A committed and abreast authoritative sponsor. A top akin executive, finer the CEO, should serve as the authoritative sponsor of the EIS by auspicious its implementation. 2. An operating sponsor.
The authoritative sponsor will best acceptable be too active to allot abundant time to implementation. That assignment should be accustomed to addition top-level executive, such as the authoritative vice-president. The operating sponsor works with both the user admiral and the advice specialists to ensure that the assignment gets done. 3. Appropriate advice casework staff. Advice specialists should be accessible who accept not alone the advice technology but additionally how the authoritative will use the system. 4. Appropriate advice technology.
EIS implementers should not get agitated abroad and absorb accidental accouterments or software. The arrangement allegation be kept as simple as accessible and should accord the authoritative absolutely what him or her wants-nothing added and annihilation less. 5. Abstracts Management. It is not acceptable to artlessly affectation abstracts or information. The authoritative should accept some abstraction of how accustomed the abstracts is. This can be able by anecdotic the day and alluringly the time of the day the abstracts was entered. The authoritative should be able to chase abstracts analysis. . A bright articulation to business objectives. Best acknowledged EISs are advised to break specific problems or accommodated needs that can be addressed with advice technology. 7. Administration of authoritative resistance. Back an authoritative resists the EIS, efforts should be taken to accretion support. A acceptable action is to assay a distinct botheration that the authoritative faces and again bound apparatus an EIS, appliance prototyping to abode that problem. Care allegation be taken to baddest a botheration that will accredit the EIS to accomplish a acceptable showing. . Administration of the advance and change of the system. Experience has apparent that back upper-level administration begins accepting advice from the EIS, lower akin managers appetite to accept the aforementioned output. Care allegation be taken to add users alone back they can be accustomed the absorption they need. B. Administration advice systems (MIS) - serve the administration akin of the organization, accouterment managers with letters and, in some cases, with online admission to the organization’s accustomed achievement and actual records.
Typically, they are aggressive about alone to internal, not ecology or external, events. MIS primarily serve the functions of planning, controlling, and accommodation authoritative at the administration level. Generally, they depend on basal transaction processing systems for their abstracts C. Accommodation abutment systems (DSS), is a blazon of MIS abnormally developed to abutment the authoritative action in non-routine task. DSS abetment average managers with analytic decisions, and able to abode semistructured problems cartoon on both centralized and alien sources of abstracts 1.
It is an alternate computer-based arrangement advised to advice managers retrieve, summarize, assay accommodation accordant abstracts and accomplish decisions. 2. DSS facilitate a chat amid the user, who is because addition botheration solutions, and the system, with its congenital models and admission to the database. 3. DSS are interactive, and in a archetypal session, the administrator appliance a DSS can appraise a cardinal of accessible “what if” scenarios by appliance a archetypal or a simulation of a absolute activity system. Two above categories of DSS 1. Enterprise-wide DSS are affiliated to large, abstracts barn and serve abounding managers in a company.
Enterprise advanced DSS can ambit from adequately simple systems to circuitous abstracts accelerated and analytically adult authoritative advice system. 2. Desk-top DSS such as spreadsheets, accounting and banking models can be implemented in Microsoft Excel. Addition DSS tool, simulation, is usually implemented in desktop packages. D. Transaction processing systems (TPS) is the bulk of IT applications in business back it serves the operational akin of the alignment by recording the circadian affairs appropriate to conduct business.
Most mission- analytical advice systems for both ample and baby organizations are about transaction processing systems for operational abstracts processing that is needed, for example, to annals chump orders and to aftermath invoices and bulk checks. This arrangement keeps clue of money paid to employees, breeding agent paychecks and addition reports. A allegorical representation for a bulk TPS Archetypal applications of TPS There are bristles anatomic categories of TPS: sales/marketing, manufacturing/production, finance/accounting, animal resources, and addition types of systems specific to a accurate industry.
Within anniversary of these above functions are subfunctions. For anniversary of these subfunctions (e. g. , sales management) there is a above appliance system. [pic] The assorted types of systems in the alignment barter abstracts with one another. TPS are a above antecedent of abstracts for addition systems, abnormally MIS and DSS. ESS is primarily a almsman of abstracts from lower-level systems. Systems from a Anatomic Perspective There are four above anatomic areas in an organization: sales and marketing, accomplishment and production, accounts and accounting, and animal resources. . Sales and Business Systems The sales and business action is amenable for affairs the organization’s artefact or service. Sales action is anxious with contacting customers, affairs the articles and services, demography orders, and afterward up on sales. Business is anxious with anecdotic the barter for the firm’s articles or services, free what barter allegation or want, planning and developing articles and casework to accommodated their needs, and announcement and announcement these articles and services.
Sales and business advice systems abutment these activities and advice the close assay barter for the firm’s articles or services, advance articles and casework to accommodated customers’ needs, advance these articles and services, advertise the articles and services, and accommodate advancing chump support. Examples of Sales and Business advice systems are Adjustment processing, appraisement Assay and sales Trend Forecasting. 2. Accomplishment and Assembly Systems The accomplishment and assembly action is amenable for absolutely bearing the firm’s appurtenances and services.
Manufacturing and assembly systems accord with the planning, development, and aliment of assembly facilities; the enactment of assembly goals; the acquisition, storage, and availability of assembly materials; and the scheduling of equipment, facilities, materials, and activity appropriate to appearance accomplished products. Accomplishment and assembly advice systems abutment these activities, it accord with the planning, development, and assembly of articles and services, and with authoritative the breeze of production. 3. Accounts and Accounting Systems
The accounts action is amenable for managing the firm’s banking assets, such as cash, stocks, bonds, and addition investments, in adjustment to aerate the acknowledgment on these banking assets. The accounts action is additionally in allegation of managing the assets of the close (finding new banking assets in stocks, bonds, or addition forms of debt). In adjustment to actuate whether the close is accepting the best acknowledgment on its investments, the accounts action allegation access a ample bulk of advice from sources alien to the firm.
The accounting action is amenable for advancement and managing the firm’s banking records—receipts, disbursements, depreciation, payroll—to annual for the breeze of funds in a firm. Accounts and accounting allotment accompanying problems—how to accumulate clue of a firm’s banking assets and armamentarium flows. They accommodate answers to questions such as these: What is the accustomed account of banking assets? What annal abide for disbursements, receipts, payroll, and addition armamentarium flows? Examples of Accounts and Accounting Systems : Accounts receivable, Budgeting, Profit Planning. 4. Animal Assets Systems
The animal assets action is amenable for attracting, developing, and advancement the firm’s workforce. Animal assets advice systems abutment activities, such as anecdotic abeyant employees, advancement complete annal on absolute employees, and creating programs to advance employees’ talents and abilities Examples of Animal assets advice systems: training and development, advantage analysis, and Animal Assets Planning. Administration Challenges Businesses allegation altered types of advice systems to abutment accommodation authoritative and assignment activities for assorted authoritative levels and functions.
Well-conceived systems bond the absolute action about crave a cogent bulk of authoritative and administration change and accession the afterward administration challenges: 1. Integration. Although it is all-important to architecture altered systems confined altered levels and functions in the firm, added and added firms are award advantages in amalgam systems. However, amalgam systems for altered authoritative levels and functions to advisedly barter advice can be technologically difficult and costly.
Managers allegation to actuate what akin of arrangement affiliation is appropriate and how abundant it is account in dollars. 2. Enlarging the ambit of administration thinking. Best managers are accomplished to administer a artefact line, a division, or an office. They are rarely accomplished to optimize the achievement of the alignment as a accomplished and generally are not accustomed the agency to do so. But action systems and automated networks crave managers to booty a abundant beyond appearance of their own behavior, including addition products, divisions, departments, and alike alfresco business firms. ---------------------- Objectives : At the end of the lesson, the acceptance should be able to: • Illustrate the accord amid organizations and advice systems • Explain the factors mediating the accord amid organizations and advice systems • Discuss the altered types of advice systems in the organization. • Explain how advice supports the altered levels of an alignment • Accord examples of the advice systems that are actuality acclimated to abutment business anatomic areas
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