Organization and Management

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Questions and Answers

What is the result of flattening the organizational hierarchy in information systems?

Lower-level employees have more decision-making authority. (correct)

Lower-level employees have less decision-making authority.

The organizational structure remains unchanged.

Managers have more control over lower-level employees.

What is a common reason for organizational resistance to change in implementing information systems?

Organizational and political resistance to change (correct)

Insufficient training

Lack of technical expertise

Financial constraints

What is the impact of information systems on organizational culture?

It has no impact on organizational culture.

It only affects the organization's leadership style.

It influences access to information and changes organizational culture, politics, and work. (correct)

It only affects the organization's structure.

What is the primary focus of Michael Porter's competitive forces model?

General view of firm, competitors, and environment Signup and view all the answers

What is the potential competitive advantage of information systems?

Gaining a competitive advantage Signup and view all the answers

What is the result of post-industrial organizations flattening?

Authority is based on knowledge. Signup and view all the answers

What is a key factor to consider when planning new information systems?

Type of organization and leadership style Signup and view all the answers

What are the main interest groups affected by an information system?

End-users and customers Signup and view all the answers

What is a characteristic of an entrepreneurial organizational structure?

Decentralized decision-making Signup and view all the answers

What is a benefit of IT in terms of transaction costs?

Reduced transaction costs Signup and view all the answers

Which type of firm is likely to capitalize on a new technology developed by a first mover?

Fast follower with size and resources Signup and view all the answers

What is the result of IT on the cost of information?

Decreased cost of information Signup and view all the answers

What is a characteristic of a machine bureaucracy organizational structure?

Centralized management Signup and view all the answers

Who is likely to be the CEO of an entrepreneurial organization?

An entrepreneur Signup and view all the answers

What is a result of IT on the economics of information?

Decreased cost of information Signup and view all the answers

What is a benefit of outsourcing due to IT?

Reduced transaction costs Signup and view all the answers

What is the primary goal of customer data mining in an organization?

To improve customer intimacy Signup and view all the answers

What is the term for the process of changing business processes and routines in response to changing environmental conditions?

Business process re-engineering Signup and view all the answers

What is the result of divergent viewpoints within an organization?

Political conflict and resistance Signup and view all the answers

What is the primary role of organizational culture?

To define goals and products Signup and view all the answers

What is the term for a collection of routines and business processes?

Business firm Signup and view all the answers

What is the primary impact of failing to break even on an organization's survival?

It threatens the organization's survival Signup and view all the answers

What is the term for the relationship between organizations and information technology?

Mutual influence Signup and view all the answers

What is the primary goal of organizational change management?

To achieve high levels of organizational performance Signup and view all the answers

What is the term for the set of assumptions that define an organization's goals and products?

Organizational culture Signup and view all the answers

What is the primary role of routines in an organization?

To cope with virtually all expected situations Signup and view all the answers

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.

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Description

This quiz covers the basics of organizations, including their definition, structure, and role in transforming capital and labor into outputs.