ORGANIZATION By: Mona El-Haddar
STRUCTURES. LIMU
OBJECTIVES.
1. Define Organization Structure.
2. List types of Organization Structures.
3. Identify the Value Chains
4. Define the term competitive advantages.
5. Discuss the change process in organizations.
6. Discuss different approaches to change such as innovation,
reengineering, etc.
7. Define the types, roles, functions and careers available in the
field of information system.
DEFINE ORGANIZATION
STRUCTURE.
Organizational subunits and the way they relate to the overall
organization. An organization’s structure depends on its goals and
approach to management, and can affect how it views and uses
information systems. The types of organizational structures typically
include traditional, project, team, and virtual. Organizational
structure can have a direct impact on the organization’s information
system.
LIST TYPES OF
ORGANIZATION
STRUCTURES.
1. Traditional Organizational Structure: A traditional organizational
structure, also called a hierarchical structure, is like a managerial
pyramid where the hierarchy of decision making and authority flows
from the strategic management at the top do.
2. Project and Team Organizational Structures: A project organizational
structure is centered on major products or services. For example, in a
manufacturing firm that produces baby food and other baby products,
each line is produced by a separate unit. Traditional functions such as
marketing, finance, and production are positioned within these major
units. Many project teams are temporary; when the project is
complete, the members go on to new teams formed for another
project.
3. Virtual Organizational Structure and Collaborative Work: A virtual organizational
structure employs individuals, groups, or complete business units in
geographically dispersed areas that can last for a few weeks or years, often
requiring telecommunications or the Internet.6 Virtual teams are employed to
ensure the participation of the best available people to solve important
organizational problems. These people might be in different countries,
operating in different time zones.
IDENTIFY THE VALUE
CHAINS.
A series (chain) of activities that includes
inbound logistics, warehouse and storage,
production, finished product storage, outbound
logistics, marketing and sales, and customer
service.
DEFINE THE TERM
COMPETITIVE
ADVANTAGES
A competitive advantage is a significant and (ideally) long-term
benefit to a company over its competition, and can result in higher-
quality products, better customer service, and lower costs.
Establishing and maintaining a competitive advantage is complex,
but a company’s survival and prosperity depend on its success in
doing so. An organization often uses its information system to help
achieve a competitive advantage.
DISCUSS THE CHANGE
PROCESS IN
ORGANIZATIONS
The dynamics of change can be viewed in terms of a change model.
A change model represents change theories by identifying the
phases of change and the best way to implement them.
Organizational change deals with how for-profit and nonprofit
organizations plan for, implement, and handle change. Change can
be caused by internal factors, such as those initiated by employees
at all levels, or external factors, such as activities wrought by
competitors, stockholders, federal and state laws, community
regulations, natural occurrences (such as hurricanes), and general
economic conditions.
DISCUSS DIFFERENT
APPROACHES TO CHANGE
Innovation: is the application of new ideas to the products,
processes, and activities of a firm, leading to increased value.
Reengineering: also called process redesign and business process
reengineering(BPR), involves the radical redesign of business
processes, organizational structures, information systems, and
values of the organization to achieve a breakthrough in business
results.
Continuous Improvement: Constantly seeking ways to improve
business processes and add value to products and services.
Outsourcing: A long-term business arrangement in which a
company contracts for services with an outside organization
that has expertise in providing a specific function.
Offshore outsourcing: An outsourcing arrangement where
the organization providing the service is located in a country
different from the firm obtaining the services.
Downsizing: Reducing the number of employees to cut
costs.
DEFINE THE TYPES, ROLES, FUNCTIONS
AND CAREERS AVAILABLE IN THE
FIELD OF INFORMATION SYSTEM.
Chief Information Officer : The role of the chief information officer (CIO)
is to employ an IS department’s equipment and personnel to help the
organization attain its goals. CIOs also understand the importance of
finance, accounting, and return on investment. They can help companies
avoid damaging ethical challenges by monitoring how their firms are
complying with a large number of laws and regulations. A good CIO is
typically a visionary who provides leadership and direction to the IS
department to help an organization achieve its goals. CIOs need technical,
business, and personal skills.
LAN Administrators : Local area network (LAN) administrators set up and
manage the network hardware, software, and security processes. They
manage the addition of new users, software, and devices to the network.
They also isolate and fix operations problems. LAN administrators are in
high demand and often solve both technical and nontechnical problem.
Internet Careers: The bankruptcy of some Internet start-up
companies in the early 2000s, called the dot-gone era by some, has
resulted in layoffs for some firms. Executives of these bankrupt
start-up Internet companies lost hundreds of millions of dollars in a
few months. Yet, the use of the Internet to conduct business
continues to grow and has stimulated a steady need for skilled
personnel to develop and coordinate Internet usage. As shown in
Figure 2.10, these careers are in the areas of Web operations, Web
development, and Web administration. As with other areas in IS,
many top-level administrative jobs are related to the Internet.
These career opportunities are found in both traditional companies
and those that specialize in the Internet
Support: The support component of a typical IS department
provides user assistance in hardware and software acquisition and
use, data administration, user training and assistance, and Web
administration. Increasingly, training is done using the Internet.62
Microsoft, for example, offers free training in areas including time
management, marketing, sales, and other areas.
Operations: People in the operations component of a typical IS
department work with information systems in corporate or business
unit computer facilities. They tend to focus more on the efficiency
of IS functions rather than their effectiveness.
Systems Development: The systems development component of
a typical IS department focuses on specific development projects
and ongoing maintenance and review. Systems analysts and
programmers, for example, address these concerns to achieve and
maintain IS effectiveness.
Information Service Units: An information service unit is
basically a miniature IS department attached and directly reporting
to a functional area in a large organization. Notice the information
service unit shown in Figure 2.10. Even though this unit is usually
staffed by IS professionals, the project assignments and the
resources necessary to accomplish these projects are provided by
the functional area to which it reports. Depending on the policies of
the organization, the salaries of IS professionals staffing the
information service unit might be budgeted to either the IS
department or the functional area.
Thank You!
References: Principles of
Information Systems,
Thirteenth Edition Ralph M.
Stair & George W. Reynolds.