Controlling IS Function: Evaluating Value for Money

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Questions and Answers

What can be performed to determine if the benefits of an IS project are worth the cost?

Evaluating the organization's IS expenditure

Enforcing IS policies and standards

Conducting a post-audit (correct)

Benchmarking against competitors

What can be applied to both IS personnel and users of IS services?

Policies and standards (correct)

IS evaluations

IS benchmarks

IS audits

What is a limitation of benchmarking against competitors in evaluating the IS function?

It is a more reactive process (correct)

It is a costly process

It is a time-consuming process

It is an inaccurate process

What helps in evaluating if IS policies and standards are being adhered to?

IS audits Signup and view all the answers

Which of the following benefits is associated with a decentralized IS function?

Enhanced capacity to exploit IT Signup and view all the answers

What is a key consideration in designing an IS function, regardless of its organizational structure?

Separation of duties to reduce expected losses from unlawful events Signup and view all the answers

What is a drawback of having a centralized IS function divided along traditional department lines?

Inefficient structure Signup and view all the answers

What is a benefit of a centralized IS function?

Economies of scale on hardware, software, and personnel Signup and view all the answers

What is essential for ensuring that errors and irregularities are detected in an IS function?

Separation of duties Signup and view all the answers

What is the primary purpose of the organizing function in relation to IT systems?

To gather, allocate, and structure resources to achieve goals and objectives Signup and view all the answers

What is a critical aspect of resourcing in the context of IT systems?

Acquiring the necessary resources to achieve goals and objectives Signup and view all the answers

What is the primary reason why top management should perform the organizing function properly?

To ensure that IT systems are effective and efficient in achieving goals and objectives Signup and view all the answers

What is a key consideration in acquiring personnel for IT functions?

Acquiring personnel who are most suitable to perform the IT function Signup and view all the answers

What is the primary purpose of bonding key employees in IT functions?

To protect the organization's interests in the event of employee departure Signup and view all the answers

What is the expected outcome of providing adequate development opportunities to IT personnel?

Dissemination of knowledge and skills to other employees Signup and view all the answers

Study Notes

Controlling the IS Function

Concerns of the IS function include determining the optimal expenditure, ensuring value for money, and evaluating the effectiveness of IS investments.

Assessing IS Expenditure

Determining how much to spend on IS is challenging.
Benchmarking against competitors can be done, but it is a reactive approach and may not reflect the organization's current IS state.

Evaluating Value for Money

Post-audit can be performed to determine if benefits are worth the cost of the project.
This helps to assess if the organization is getting value for money from its IS function.

Control of IS Activities

Enforcement of policies and standards can establish control over IS activities.
Audit helps to evaluate if policies and standards are being adhered to.
Policies and standards can be applied to both IS personnel and users of IS services.

Organizing the IS Function

Organizations have different ways to organize the IS function, either centralized or decentralized.

Centralized IS Function

Allows for better top-management control
Provides economies of scale on:
- Hardware
- Software
- Personnel

Decentralized IS Function

Improves an organization's capacity to exploit IT
Reduces cost of inter-departmental communication

Common Requirements for Both Structures

Clear job positions and a well-defined reporting and responsibility structure must be present

Inefficient Structures to Avoid

Centralized departments divided along traditional department lines

Ensuring Effective Control

Separation of duties must be integrated into various job functions to:
- Detect errors and irregularities
- Reduce expected losses from unlawful events

The Organizing Function

The organizing function involves gathering, allocating, and structuring resources to achieve goals and objectives.
It is essential for top management to perform the organizing function properly to ensure effective and efficient IT systems.

Resourcing

Acquiring resources is a critical aspect of the organizing function, including hardware, software, personnel, finances, and facilities.
Proper acquisition processes must be performed, including funding support, vendor selection, requirements creation, proposal evaluation, and contracts creation.

Staffing

Management should acquire the most suitable staff to perform IT functions.
Staff should be up to date and motivated to perform their role.
The importance of staffing is heightened by the fact that human factors, not computer problems, often cause irregularities.
Personnel acquisition should be controlled via:
- Background checking of references, resumes, etc.
- Screening applicants for mental and physical health.
- Bonding of key employees.
- Explanation of organizational protocols to be observed.
- General organizational indoctrination.

Staff Development and Termination

Staff should be given adequate development opportunities, such as training and promotion.
Employees attending training sessions should disseminate the knowledge upon their return.
Personnel termination should be followed up with control procedures to ensure all employee access to important systems is secured.
If possible, the leaving employee should train others on their job prior to leaving.
Exit interviews should be conducted to determine areas of discontent and identify potential problems.

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Description

Assessing the value of an organization's Information Systems (IS) function, determining the right budget, and evaluating the return on investment. This quiz covers evaluating the effectiveness of IS function, post-audit procedures, and control mechanisms.