BASIC ORGANIZATION CONCEPTS & OVERVIEW OF COURSE IS 524

1. BASIC ORGANIZATION CONCEPTS & OVERVIEW OF COURSE IS 524 Chandra S. Amaravadi

2. BEFORE WE START: Introductions Course web site: www.faculty.wiu.edu/C-Amaravadi/ Get syllabus, ppts, assignments & readings from site. Will be sending FERPA request (respond to email) Class protocol

3. DEFINITION OF CORPORATE INFORMATION SYSTEMS Corporate Information Systems: A collection of systems designed to fulfill the information/information processing needs of an organization. To store, process and disseminate information in an organization. SYSTEM ORGANIZATION

4. MOTIVATION FOR STUDYING ORG. Corporate IS support information processing in organizations • Need to understand how information originates • How/where does information originate from? • Need to understand who needs information? • Need to understand how IS can impact org.

5. DEFINITION OF ORGANIZATION What does organizing mean? What is an organization?

6. BASIC ORGANIZATIONAL CONCEPTS

7. OUTLINE OF THIS PRESENTATION • The context for organizing • Influences on org. theory • Taylor, Mayo, Fayol • Organizational structure • Functional areas • Organization-environment-structure • Strategy

8. THE CONTEXT FOR ORGANIZING Emergence of modern organizations: • Historically craft organization • The industrial revolution (steel, steam engine) • Emergence of the factory • Chaotic conditions in early days – no organization

9. INFLUENCES ON ORG THEORY • Taylor and Scientific Management • “one best way to perform a task” • Elton Mayo and the Human Relations approach • Management’s interest in employees • Fayol & Administrative theory • Military as an archetypal org. form These theories played an important role in formation of modern organizations.

10. PRINCIPLES OF THE MODERN ORG. • From classical theories (modern organization) • Separation of work from management (centralization) • Chain of command. • Span of control. • Job specialization; functionalization • Esprit De Corps • Well developed HR function • From contemporary thinking (post modern) • looser organizational structures • participative • digital organizations • learning.

11. PRINCIPLES OF THE MODERN ORG…

12. ORGANIZATIONAL STRUCTURE Org. structure: formalization of positions & reporting relationships • Hierarchical/bureaucracies • Flat/Knowledge-based • Matrix • Team/process • Digital & Postmodern • Lateral & Networked (FYI)

13. HIERARCHICAL ORGANIZATIONS A large organization with many employees that emphasizes vertical relationships. • Have formal reporting and procedures • Many organizational levels • Thousands of employees • Many have become bureaucracies • bureaucracies are large org. that emphasize rules and procedures • e.g. government agencies • geared to process large volumes but • impersonal & difficult to change

14. FLAT OR KNOWLEDGE-BASED Flat: An org. of specialists with very few management levels. Knowledge-based: An organization where knowledge is a major output Examples of flat organizations?

15. MATRIX ORGANIZATIONS • Matrix- A temporary org. consisting of representatives from different organizations/departments. • e.g. a construction project for a thermal power plant, sw development Accenture TCS Cognizant IBM TEAM1 TEAM2

16. TEAM/PARTICIPATIVE/PROCESS An org. consisting of teams or focussed on a particular process. • Teams are permanent structures. • Management is made up of team members. • Set own work and vacation schedules. • Responsible for a complete process(as assigned) HP Functions Printers Copiers A process Prod. Mktg. Acct.

17. DIGITAL ORGANIZATIONS An organization based purely on the internet with no fixed boundaries (whose operations are supported with IT). Suppliers Also called virtual organization Customers Employees

18. THE 22nd CENTURY ORGANIZATION (POST MODERN) The 22nd Century organization is: • Focussed on information rather than goods • More networked, globalized and virtual • More customer focussed, more innovative • More frequently evaluated • More socially responsible

19. LATERAL ORGANIZATIONS (FYI) Relationship between departments and employees is on the same hierarchical level. • Employees communicate laterally • Minimal upper management • Employees have more freedom in decision-making and support one another.

20. NETWORKED OR SATELLITE ORGANIZATION (FYI) In a networked organization, informal networks replace formal relationships and structure • Less hierarchical, more decentralized • Managers co-ordinate relationships; internal & external • Fewer layers, wider span of control, rapid sharing of ideas. • Fluid structure can complicate hierarchy & reporting

21. FUNCTIONAL AREAS Are a consequence of the functional organization

22. THE MARKETING FUNCTION Purpose: to identify & fulfill market needs • Identify market needs • market research • estimate demand • develop product specs • Fulfill market needs • segment markets • price and promote • distribute & sell

23. THE PRODUCTION FUNCTION Purpose: to develop a product optimally • Plan for production • develop production schedule • plan job capacity • production planning and control • Produce product • order raw material • manufacture product

24. THE ACCOUNTING FUNCTION Purpose: Record financial transactions and report them Record in different types of accounts assets liabilities equity revenues expenses Assets = Liabilities + Equity Income = Revenues - Expenses - COGS

25. equity debt THE FINANCE FUNCTION Purpose: manage financial assets of the company & ensure liquidity • Plan • analyze fin. Statements • develop budget • Manage assets • monitor budget • Obtain financing if necessary • Report

26. THE HUMAN RESOURCE FUNCTION Purpose: To plan, hire, and manage human resources Evaluate needs Hire personnel Training Maintain personnel records Reward/benefits

27. ORGANIZATION, ENVIRONMENT AND STRUCTURE

28. ENVIRONMENT OF AN ORGANIZATION in what way can an env. change? government general banks bodies supplier customer organi- zation competition trade groups making policy environment

29. ENVIRONMENT Set of forces acting on an organization. Three types: Task environment concerned with inputs and outputs (e.g. customers, suppliers, competitors) Institutional environment governs rules of the game (e.g. banks, special groups, government) General environment concerned with socio economic trends (e.g. cultural characteristics, demographics, economy etc.)

30. THEORIES OF ORGANIZATION -ENVIRONMENT INTERACTION • Selection- survival of the fittest (not discussed) • Adaptation- adapt to the environment • Resource dependence – organizations gain control over resources they are dependent on. e.g. software company. (not discussed) Three major theories of dealing with change: How is fittest defined in the context of organizations? Is this static?

31. ADAPTATION MECHANISMS ENVIRONMENTAL CHANGE Change Structure Change Strategy Change SOPs What is another term for changing structure

32. STRATEGY Strategy is a method of achieving goals – (Can also be defined as fitness with the environment) Strategic decision – A decision on strategy; has broad/long term impacts on the organization and its environment e.g. Apple introducing apple Pay method of mobile payments. Strategic impact – the result of a strategic decision, example how did advertising affect sales?

33. RELATIONSHIP BETWEEN ENV. ORGANIZATION & STRATEGY ENVIRONMENT STRATEGIC DECISIONS Competitor ENVIRONMENTAL CHANGE Customer ORGANIZATION Competitor STRATEGIC IMPACTS To what extent does an org. have the ability to impact its environment?

34. DEVELOPING THE STRATEGY VALUES CULTURE ENVIRONMENT STRATEGIC DECISION IMPLE- MENTATION RESOURCES FIRM CAPABILITIES

35. ORG. ISSUES • Org structure: the right structure? allocation of roles and responsibilities • Correctly assessing trends • optimism vs pessimism • Making the right strategic choice • assess resources • business conditions • Decision implementation • weak links • Organizational adaptation not straightforward and not always possible • Unpredictable impacts

36. What does this illustrate? The IT organization in a certain university is decentralized. It is in the form of four units, one in the College of Business (ISUP), one in the main campus (UITS) and two in each of the (AC1 & AC2) satellite campuses. Instructional Support (ISUP), manages labs owned and funded by the college, while UITS maintains all student labs in the university (except those within college of business). The university provides distance education at two different sites. The computing infrastructure at these sites is managed by AC1 and AC2. If a faculty member wants to have a new software installed in the labs, he/she has to put in requests to UITS, ISUP, AC1 and AC2. Is this a problem? Why? Solution?

37. DISCUSSION QUESTIONS • From what type of organization did the modern org. evolve from? • Which organizational form is rule driven? • Recording transactions is an example of an activity in ______? • What are some functions carried out in HR? • What is the task environment of a non-profit organization? • Based on this chapter, what can we conclude about role of management in an org.? • Explain: strategy, strategic decision, strategic impact. • What factors does an organization have to consider while making a strategic decision? • What might be difference in values between an airline company and a manufacturing organization?

38. COURSE OBJECTIVES AND FEATURES

39. COURSE OBJECTIVES • create a broad understanding of corporate systems and their development. • understand usage in strategy, operations, & d.m. • participate in d.m. involving technology • gain a foundation for more advanced courses Soft skills d.m. – decision making

40. COURSE FEATURES • Textbook is supplementary & will not be used • readings/case studies • Concept intensive -- hundreds of concepts • not possible to cover all of them • depth also not possible • review before class • Perspective of: • developer (e.g. arch., functionality) • manager (e.g. org. setting, org. issues, implementation, other challenges)

41. COURSE EVALUATION Note: Please refer to your course syllabus for up to date information on the evaluation schedule.

42. ASSIGNMENTS & PARTICIPATION • Assignments (6) • database model & DBMS • article Q & A (2) • web site • MSS I & II Class Participation • relevant to topics discussed (digressions welcome) • discuss issues raised; articles • relate to personal experience • being a warm body, asking for clarification – not counted; same for security & privacy • disruptive activities will result in loss of one letter grade

43. EXAMINATIONS & QUIZZES Exams • In class, closed book; Has sections I & II • Conceptual understanding & analytical ability a must • Ability to apply theory to novelsituations; synthesize answers • Provide cut & dried answers • Answers need to be drawn from knowledge base of course Quizzes • In class, closed book • T/F, M.C., Fill in the blank, short answer (10 points) • Can be based on class discussion, include problems as well

44. GRADUATE STUDENT LEARNING OBJ.* • Will get involved in their education • Will have a conceptual understanding of subject • Have knowledge of theories, models & tools to solve • problems • Learn how to apply knowledge • Will be able to evaluate knowledge claims • Have ability to innovate & solve problems • Will be able to apply knowledge in new & • unfamiliar circumstances *From AACSB Guidelines [http://aacsb.edu/accreditation/standards.asp]

45. STUDENT RESPONSIBILITIES* MBA Students: • Operate with integrity in their dealings with faculty and other students. • Engage learning materials with appropriate attention and dedication. • Maintain engagement when challenged by difficult learning activities. • Contribute to the learning of others. • Perform to standards set by the faculty. *From AACSB Guidelines [http://aacsb.edu/accreditation/standards.asp]

46. ADDITIONAL EXPECTATIONS • In class discussions, communicate with clarity & volume • get to the point • do not ignore previous discourse • For assignments, • display initiative • deliver on requirements • manage stress • On exams, • recognize & order most important issues • answers need to fall within knowledge base of course • be brief but thorough • Commit to the program