26 Questions
What is the result of flattening the organizational hierarchy in information systems?
Lower-level employees have more decision-making authority.
What is a common reason for organizational resistance to change in implementing information systems?
Organizational and political resistance to change
What is the impact of information systems on organizational culture?
It influences access to information and changes organizational culture, politics, and work.
What is the primary focus of Michael Porter's competitive forces model?
General view of firm, competitors, and environment
What is the potential competitive advantage of information systems?
Gaining a competitive advantage
What is the result of post-industrial organizations flattening?
Authority is based on knowledge.
What is a key factor to consider when planning new information systems?
Type of organization and leadership style
What are the main interest groups affected by an information system?
End-users and customers
What is a characteristic of an entrepreneurial organizational structure?
Decentralized decision-making
What is a benefit of IT in terms of transaction costs?
Reduced transaction costs
Which type of firm is likely to capitalize on a new technology developed by a first mover?
Fast follower with size and resources
What is the result of IT on the cost of information?
Decreased cost of information
What is a characteristic of a machine bureaucracy organizational structure?
Centralized management
Who is likely to be the CEO of an entrepreneurial organization?
An entrepreneur
What is a result of IT on the economics of information?
Decreased cost of information
What is a benefit of outsourcing due to IT?
Reduced transaction costs
What is the primary goal of customer data mining in an organization?
To improve customer intimacy
What is the term for the process of changing business processes and routines in response to changing environmental conditions?
Business process re-engineering
What is the result of divergent viewpoints within an organization?
Political conflict and resistance
What is the primary role of organizational culture?
To define goals and products
What is the term for a collection of routines and business processes?
Business firm
What is the primary impact of failing to break even on an organization's survival?
It threatens the organization's survival
What is the term for the relationship between organizations and information technology?
Mutual influence
What is the primary goal of organizational change management?
To achieve high levels of organizational performance
What is the term for the set of assumptions that define an organization's goals and products?
Organizational culture
What is the primary role of routines in an organization?
To cope with virtually all expected situations
Study Notes
Definition of Organization
- An organization is a formal legal entity with internal rules and procedures, and a social structure.
- It transforms inputs (capital and labor) into outputs (products and services) that are consumed by the environment, which supplies additional capital and labor as inputs.
Features of Organizations
- Organizations are composed of individual routines, which are precise rules and practices developed to cope with expected situations.
- Business processes are a collection of routines, and a business firm is a collection of business processes.
Organizational Politics and Culture
- Organizational politics refers to the use of power and influence to achieve goals and resolve conflicts.
- Organizational culture is a set of assumptions that define goals and products, and is a powerful unifying force as well as a restraint on change.
Relationship between Organizations and Information Technology
- The relationship between organizations and information technology influences each other.
- Factors that influence this relationship include structure, business processes, politics, culture, environment, and management decisions.
Organizational Environments
- Organizations are dependent on the social and physical environment, and can influence their environment.
- Change in the environment can happen faster than change in the organization.
- Information systems can be instruments of environmental scanning, acting as a lens to provide managers with information to supervise a larger number of workers.
Types of Organizations
- Professional bureaucracy: law firms, school systems, hospitals, and other knowledge-based organizations where goods and services depend on the expertise of professionals.
- Adhocracy: consulting firms where understanding of information systems is important, and department heads have weak centralized authority.
Disruptive Technologies
- Disruptive technologies bring about sweeping change to businesses, industries, and markets, e.g., the internet and personal computers.
- Postindustrial organizations are flattened, with authority relying on knowledge rather than formal positions.
Competitive Advantage of Information Systems
- Michael Porter's competitive forces model: general view of the firm, competitors, and environment.
- Competitive forces/industry ecosystem: traditional competitors, new entrants, substitutes, suppliers, and buyers.
Organizational Resistance to Change
- Common failure reason is organizational and political resistance to change, which information systems can influence.
- Task force organizations are formed to respond to rapidly changing environments.
Impact of Information Systems on Organizations
- Economic impact: IT changes the cost of capital and the cost of information.
- IT is a factor of production, and info systems can help firms contract in size, reducing transaction costs.
This quiz covers the basics of organizations, including their definition, structure, and role in transforming capital and labor into outputs.
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