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These are as follo
ulture of the Organizations
ecision Making Style
4.1 Organizational Structure Pyramid/Tall/Hierarchical 4.1.1 Hierarchical organization A hierarchical organization is organization structured in a way such that every entity in the organization, except one, is subordinate to a single other entity. This is the dominant mode of organization among large organizations; most corporations and governments are hierarchical organizations. • Low number of subordinates per supervisor • Long chain of command • Greater number of levels
4.1.2 Organizational Structure Flat Flat organization refers to an organizational structure with few or no levels of intervening Management between staff and managers. The idea is that well-trained work be more productive when they are more directly involved in the decision making process, rather than closely supervised by many layers of management.
This structure is generally possible only in smaller organizations or individual units within larger organizations. When they reach a critical size, organization retain a streamlined structure but cannot keep a completely flat manager-to-staff relationship without impacting productivity.
Certain financial responsibilities may also require a more traditional structure theorize that flat organizations become more traditionally hierarchical when they beg geared towards productivity.
Following are the characteristics of a flat organization. • High number of subordinates per supervisor • Short of chain of command • Less number of levels • Eliminates middle level managers • Decentralizes authority to low level managers
4.1.3 Culture of the Organization Organizational culture is the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. Organizational values are beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another.
ed Authoritative tocratic or authoritarian manager makes all the decisions, keeping the informati on making among the senior management. Objectives and tasks are set and the pected to do exactly as required. ommunication involved with this method is mainly downward, from the leader to rdinate critics such as Elton Mayo have argued that this method can lead to a de tivation from the employee's point of view. main advantage of this style is that the direction of the business will remain const he decisions will all be similar, this in turn can project an image of a confident, anaged business. hand, subordinates may become highly dependent upon the leaders and superv be needed. Decisions are taken centrally by the senior management themselves nforced at all levels.
Decision Making Approach
ructured edures are predefined for solving routine repetitive problems
on-structured n problems require individual judgment, evaluation and insight varying on cases Sources of information in Organizations e can be sources of information both internal and external to the organization. wing is a list of important sources. rnal External aff meetings rmal reporting systems oject proposals search results mployee Surveys rsuasive interviews an applications rchasing agreements vertisement stribution Contracts
Information Network in an Organization
odically updated / continuously updated – the information should be updated so ever accessed, the user should be fully informed.
cient Processing – data should not be kept unprocessed for long. Timely processi ctive decision making.
ue driven – the information kept in a computerized system should add value to th edge.
ience Centered – every one should receive that part of information that is releva user.
ilability of timely and accurate information helps in proper decision making and ng the organizational goals.
rmation should be tailored in accordance with the organization’s culture and stru
Attributes of an IS/CBIS The attributes an Information System should have, to be worthy of being used by an organization for meeting its information requirements. Although information requirements may vary from organization to organization, however common premise is quite the same for many. • Efficient Processing, including query time • Large Storage Capacity • Reduced information Load • Cross-functional boundaries • Competitive Tool • Electronic Document Management/Paper Free environment Let’s consider each of these one by one.
Efficient Processing Every transaction affects our records in a number of ways. CBIS helps in updating every change being triggered in less time and with less effort. Large Storage Capacity & Instant Access Efficient and effective decision making requires two aspects – Availability of processed corporate data – occurrence of every event relating to a company affects policy making and implementation, thus recording and processing of every data results in huge amount of information – Instant access to right chunk of information presented in comprehensible format – both the above requirements are easy to handle when a well structured information system is in place. Reduced Information Load With such huge amounts of information available, managers can feel overloaded, hence taking more time in decision making. CBIS/IS help to tailor loads of information w.r.t. every manager’s requirements. The way information is presented can also save time for decision
Cross-Functional Coordination There are various functions in an organization that need to be managed. o Manufacturing o Purchasing o Warehousing o Marketing o Accounts o Finance o Human Resource In every transaction, every department has its own share of responsibility. Thus uncoordinated effort by every department won’t help in achieving the successful completion of transaction and meeting commitments. CBIS help in keeping an updated record for easy access by every department in an organization.
Example A customer order is received by Sales/Marketing department. Record for customer profitability and recovery pattern are also kept by sales dept. • Manufacturing requires • Customer order in quantitative terms • Raw material availability for production • Time available for delivery • Procurement schedule • Accounts require an intimation the delivery is made along with the sales invoice • Customer wants the status of its/his/her order
Competitive Tool Businesses invest to earn profits or for other non-profit based objectives. There seems no point in pouring in Co.’s hard earned money on IS if they don’t add to the quality and value of information. Hence CBIS/IS can and should work to enhance the competitive advantage for the organization. Paper Free Environment • Information overload enhances paper work. • Maintenance of records in hard form has always proven to be a cumbersome task. • An IS/CBIS should be efficient enough to properly manage of documents electronically. • Customer orders met through Virtual Private Networks and intranets (to be discussed later). • Payments made through Electronic payment system. • Report generation and record analysis gets convenient and easy. Conclusion Hence an Information System / Computer Based information system should help an organization in achieving the above mentioned goals. If
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