Csis 114 lab 8 organizational culture and structure spring 2006
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CSIS 114 Lab 8: Organizational Culture and Structure. Spring, 2006. Part 1: Organizational culture. Shared understandings, values & assumptions in an organization Influences information systems Siena and IBM example. IBM’s culture: then. Lifetime employment (up until 1987 !)

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CSIS 114 Lab 8: Organizational Culture and Structure. Spring, 2006

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Csis 114 lab 8 organizational culture and structure spring 2006

CSIS 114 Lab 8:Organizational Culture and Structure. Spring, 2006


Part 1 organizational culture

Part 1:Organizational culture

  • Shared understandings, values & assumptions in an organization

  • Influences information systems

  • Siena and IBM example

Principles of Information Systems,

Fifth Edition


Ibm s culture then

IBM’s culture: then

  • Lifetime employment (up until 1987 !)

  • Social interaction: Kingston Country Club

  • Conservative dress

  • Our computers are the best

  • Other companies make computers, too?

  • Push the “big iron”

Principles of Information Systems,

Fifth Edition


Ibm s culture now

IBM’s culture: now

  • 40 % mobile workforce

  • 30% women

  • Services to help customer use IT.

  • Collaboration & innovation

    • To respond to problems & opportunities

  • Personal responsibility & trust

Principles of Information Systems,

Fifth Edition


Siena s culture

Siena’s Culture

  • Men with brown robes: Franciscan influence.

  • ROTC.

  • Strong athletic program and alumni support.

  • Academics: Liberal arts.

  • Students: mostly regional, Irish/Italian.

Principles of Information Systems,

Fifth Edition


Culture characteristics low or high on scale

Culture Characteristics:low or high on scale

  • Innovation & Risk taking – encouraged?

  • Attention to detail – precision, analysis

  • Outcome orientation (vs process)

  • People orientation - consideration

  • Team organization – work activities

  • Aggressiveness - competitiveness

  • Stability – status quo

Principles of Information Systems,

Fifth Edition


Function of culture

Function of Culture

  • Distinguishes organization from others

  • Conveys sense of identity to members

  • Commitment to group rather than self

  • Enhance social system stability – guidelines for behavior

  • Encourages conformity (control) - rewards

Principles of Information Systems,

Fifth Edition


Creating and maintaining culture

Creating and maintaining culture

  • Stories - history

  • Rituals

  • Language – jargon or slogans

  • Material symbols: dress codes, office space, furnishings, other perks, rewards system

Principles of Information Systems,

Fifth Edition


Success story the toyota way

Success story:“The Toyota Way”

  • “Kaizen” CI as frame of mind.

  • “Genchi genbutsu” : Go to the source for facts (not hearsay).

  • Seek challenge. View problems positively as opportunities to improve.

  • Teamwork: company interest first.

  • Respect for others and their knowledge.

    • Builds consistency in decision making aligned with the values of the company.

Principles of Information Systems,

Fifth Edition


Nasa case

NASA Case:

  • Read

  • Fill out worksheet

  • Discussion

Principles of Information Systems,

Fifth Edition


Part 2 organizational structures

Part 2:Organizational structures

  • Affect information flow, work processes and the implementation of information systems that should empower and support workers.

Principles of Information Systems,

Fifth Edition


Organizational structure influences information flow

Organizational Structureinfluences information flow

Lines of communication

  • Formal

  • Informal : IT makes CEO more accessible. Relationships make business processes work.

  • Vertical (control) vs Horizontal (collaborative)

Principles of Information Systems,

Fifth Edition


Traditional organizational structure

Traditional Organizational Structure

  • Fig. 2.3


Organizational structure approaches

Organizational StructureApproaches

  • Traditional – hierarchy

    • Industrial revolution and earlier

    • “command and control”

    • Rote work by unskilled staff

  • Flat

  • Project

  • Team

  • Multidimensional

Principles of Information Systems,

Fifth Edition


Example of traditional structure

Example of Traditional Structure

  • Fig 2.4


Flat organizational structure

“Flat” Organizational Structure

  • Less middle managers

    • Less up/down (filtering) communication

  • Empowerment of staff – via IS

  • Faster action and Lower costs

    • EX: Insurance rep handles entire case

    • Cable TV help desk can make decisions and provide refunds/extras (up to certain amount)

  • Be careful about becoming too flat: sometimes managers can see the big picture or resolve longer-term problems.

  • Principles of Information Systems,

    Fifth Edition


    Project organizational structure

    Project Organizational Structure

    • Fig 2.5


    Dell sales force structure changed to accommodate growth

    DELL: Sales force structure changed to accommodate growth

    • Maintained double-digit sustained growth by market segmentation.

    • Each group has specific customers that they specialized in.

    • Each group was close-knit and entrepreneurial.

    • As sales grew, company split off more specialized groups- see next slide.

    Principles of Information Systems,

    Fifth Edition


    Csis 114 lab 8 organizational culture and structure spring 2006

    Principles of Information Systems,

    Fifth Edition


    Team organizational structure

    Team Organizational Structure

    • Work groups of various sizes

      • Temporary or permanent teams

      • Peer pressure to perform

      • Each member learns all functions of team

      • Team can even make budgetary and hire/fire decisions

    Principles of Information Systems,

    Fifth Edition


    Gore s innovative organization model makers of gore tex

    Gore’s innovative organization model (makers of Gore-Tex)

    • Split divisions when they reach > 150 people.

    • Research indicates that people don’t feel part of community that is too large.

      • EX: Shakers split “families” that are too large.

    • No managers, just “mentors”

      • Titles, offices don’t mean a thing.

    Principles of Information Systems,

    Fifth Edition


    Multidimensional organizational structure

    Multidimensional Organizational Structure

    • Fig 2.6


    Multidimensional matrix organizational structure

    Multidimensional (matrix) Organizational Structure

    • May incorporate several structures at the same time

    • Advantage:

      • ability to simultaneously stress both traditional corporate areas and important product lines

      • Two mentors

      • Flexibility to move people within functional area

    • Disadvantage:

      • multiple lines of authority

    Principles of Information Systems,

    Fifth Edition


    Matrix case philips then

    Matrix case: Philips (then)

    • Dutch electronics mfr.

    • Had two reporting structures:

      • To product division

      • To each organization HQ for each country

    • Problem: accountability.

      • Who is responsible for performance?

      • Product division or country HQ ?

    Principles of Information Systems,

    Fifth Edition


    Philips now

    Philips: now

    • Worldwide product divisions

      • Consumer electronics, medical products.

    • National offices report to worldwide org.

    • Encourage employees to work across business units and geographic regions by using training and incentives.

    Principles of Information Systems,

    Fifth Edition


    Virtual organizational structure diverse teams act as a single entity

    Virtual Organizational Structure:diverse teams act as a single entity.

    • Employs business units in geographically or organizationally dispersed areas

      • Southwest airlines: Moms handle reservations at home

      • Contract out work to specialty shops

    • Can be permanent or temporary.

    • IS must support&coordinate virtual distributed organization. [e-mail, scheduling, videoconferencing, etc.] since workers mostly communicate electronically.

    Principles of Information Systems,

    Fifth Edition


    Organizational innovation

    Organizational innovation

    • Downsizing - “rightsizing” (layoffs or hiring freeze)

    • Vertical Integration

      • own all phases of production

    • Horizontal Integration (conglomerates)

      • Going into other lines of business

      • Acquisitions and mergers

    • Keiretsu: Japan’s answer to conglomerates

      • Can be either vertical or horizontally integrated

    • Virtual Integration

      • Business Web value chains: act as one company.

      • EX: Dell and its suppliers. CISCO and manufacturers.

    • Partnerships / Coopetition

    • Outsourcing/offshoring

    Principles of Information Systems,

    Fifth Edition


    Csis 114 lab 8 organizational culture and structure spring 2006

    PART 3: Globalization.“…is the closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of TRANSPORTATION and COMMUNICATION and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent) people across borders.”-Joseph Stiglitz

    Principles of Information Systems,

    Fifth Edition


    Offshoring ch 14 in o brien

    Offshoring(ch. 14 in O’Brien)

    • Also known as: Off-shore outsourcing

      • More specific term than outsourcing.

      • Contract out to (or own) offshore company

        • GE, Texas Instruments have subsidiaries in India

      • Move sophisticated work to another country to take advantage of lower cost structures (finance, banking, call center, IT services: programming, system management).

      • Countries with innovative, educated in IT/engineering, English speaking, workers are successful.

      • Near-shoring to Canada: less cultural differences

    Principles of Information Systems,

    Fifth Edition


    Off shoring projections

    Off-Shoring projections

    • Gartner Inc. predicts that 40% of companies with revenue of more than $100 million will be trying out or using offshore services by the end of 2004.

    • Gartner also predicts that 24% of IT jobs will head offshore by the end of 2008.

    • Forrester Research Inc. projects that more than 3 million U.S. white-collar jobs will be lost to offshore outsourcing during the next 10 years or so -- a half-million of them in IT.

    Principles of Information Systems,

    Fifth Edition


    When to outsource

    When to outsource?

    • When you can cut costs.

    • Limited opportunity to distinguish competitively through the function.

    • When uninterrupted service is not critical.

    • When technical know-how can be maintained internally.

    • When existing IS function is ineffective or inferior. [Stair, p 523]

    Principles of Information Systems,

    Fifth Edition


    Outsourcing 7 lenses model

    Outsourcing: 7 lenses model

    • An analysis technique used to discover various facets of a problem.

    • Forces us to look at many perspectives (lenses) of a problem, rather than basic Pro/Con analysis.

    • Systematic framework that captures the forces and trends that affect a business problem. Some items can be in more than one lens.

    Principles of Information Systems,

    Fifth Edition


    Csis 114 lab 8 organizational culture and structure spring 2006

    Principles of Information Systems,

    Fifth Edition


    7 lenses

    Political issues

    International

    National

    Organizational levels

    Relates to trade, political tensions, competition, etc.

    Organizational issues

    Management issues

    Structural issues

    Work flow

    Labor issues

    Project mgt. etc.

    7 Lenses

    Principles of Information Systems,

    Fifth Edition


    Csis 114 lab 8 organizational culture and structure spring 2006

    Economic issues

    Labor costs

    Trade

    Taxes

    Currency

    Other costs

    Technological

    Internet

    Telecommunications

    Software, shareware

    Web

    E-commerce

    collaboration

    Principles of Information Systems,

    Fifth Edition


    Csis 114 lab 8 organizational culture and structure spring 2006

    Cultural

    Language

    Religion

    Values

    Demographics

    Gender

    Way of doing business

    Educational

    Problems with existing educational structure.

    Future education needs for future workforce.

    Principles of Information Systems,

    Fifth Edition


    Csis 114 lab 8 organizational culture and structure spring 2006

    Legal

    Contracts

    Intellectual property

    Unions & Labor laws

    Environmental protection laws

    Data and privacy laws

    Principles of Information Systems,

    Fifth Edition


    Finish up

    Finish up…

    • Read: Jolly technologies and the Delta airlines cases.

    • Fill out worksheet, try to identify issues in the 7 categories.

    • Discuss.

    • On-line quiz.

    Principles of Information Systems,

    Fifth Edition


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