Basi di Dati e Sistemi Informativi II II. Organizations II. Organizations Organizational Goals and Objectives Organizational Goals and Objectives Organizations as Systems Organizations as Systems Product Flow Product Flow vs vs Information Flow Information Flow Organization Charts Organization Charts Feedback and Control within Organizations Feedback and Control within Organizations Information Systems Departments Information Systems Departments Business Processes Business Processes Other Models of Organizations Other Models of Organizations 2003 Giorgini Organizations -- 1 Basi di Dati e Sistemi Informativi II Organizations Organizations � A (business) organization (business) organization is a social structure with an associated purpose, such as providing services or generating products. � Organizations can be understood as composite systems intended to achieve organizational goals and objectives. � There are two basic types of organizations: Production organizations Production organizations -- such as manufacturing, farming, construction and agriculture. Service organizations -- such as transportation, communication, Service organizations banking and finance, medicine, education and retailing. 2003 Giorgini Organizations -- 2 Page 1
Basi di Dati e Sistemi Informativi II Organizations as Systems Organizations as Systems customers employees billing paying vendors collection sales purchasing production distribution inventory receiving Person or organization Subsystem 2003 Giorgini product or document flow Organizations -- 3 Basi di Dati e Sistemi Informativi II Product Flow vs vs Information Flow Information Flow Product Flow customers employees vendors billing collection paying sales purchasing production finished goods distribution raw materials inventory receiving Product flow Information flow 2003 Giorgini Organizations -- 4 Page 2
Basi di Dati e Sistemi Informativi II Information Flow Through Documents Information Flow Through Documents customers This is the type of This is the type of sales customer customer information flow information flow order invoice payment a systems analyst a systems analyst has to understand has to understand to perform her task! to perform her task! customer billing collection payment notice sales sales notice 2003 Giorgini Organizations -- 5 Basi di Dati e Sistemi Informativi II The Organization Chart The Organization Chart The organization chart organization chart defines areas of responsibility and lines of authority within an organization. Superior authority responsibility Subordinate Subordinate Subordinate � Strictly hierarchical organizations do not perform as well as organizations that are based on other organizational structures. � Heterarchical relationships "cut across" departments to make decisions more democratic, and functioning of the organization less bureaucratic These charts are essential for systems analysis! These charts are essential for systems analysis! 2003 Giorgini Organizations -- 6 Page 3
Basi di Dati e Sistemi Informativi II Levels of Authority Levels of Authority � Top management Top management -- establishes � goals, does long-range planning, determines new market and top management strategic product developments, decides on mergers and acquisitions. middle � Middle management Middle management -- sets tactical management objectives, allocates and controls resources, does planning and lower measures performance supervisory management � Lower Lower management management -- supervises day-to-day operations, operational functional takes corrective action when necessary. � Operational level Operational level -- performs � day-to-day operations 2003 Giorgini Organizations -- 7 Basi di Dati e Sistemi Informativi II Vertical vs Vertical vs Horizontal Integration Horizontal Integration top management strategic middle tactical management lower supervisory management t g n e n t c m financial i services support admin t u e p d o k operational o functional r l r e a p v m e d Information systems play a crucial role Information systems play a crucial role in this integration in this integration 2003 Giorgini Organizations -- 8 Page 4
Basi di Dati e Sistemi Informativi II General Systems Theory General Systems Theory � A systems exists within an environment. � A system is separated from its environment by some sort of a boundary � Systems have inputs and outputs. They receive inputs from their environment, and send outputs into their environment. � Systems have interfaces. An interface allows communication between two systems. � A system may have sub-systems. A sub-system is also a system, and may have further sub-systems of its own. 2003 Giorgini Organizations -- 9 Basi di Dati e Sistemi Informativi II System Parts 2003 Giorgini Organizations -- 10 Page 5
Basi di Dati e Sistemi Informativi II Feedback Feedback Aims to maintain the system´s equilibrium by opposing deviations from some norm. 2003 Giorgini Organizations -- 11 Basi di Dati e Sistemi Informativi II Organizational Feedback and Control Organizational Feedback and Control Organizational systems need feedback mechanisms too, to ensure that their intended goals are met. outputs goals revised goals revisions system corrective action comparison 2003 Giorgini Organizations -- 12 I f ti t l i t t l I f ti t l i t t l Page 6
Basi di Dati e Sistemi Informativi II Organizational Feedback Example Organizational Feedback Example Produce+sell Produced 0.9M 1.1M iMacs Sold 1.1M revisions system Produce+sell 1M iMacs Change Production Increase targets production comparison Information systems play an important role Information systems play an important role in the provision of feedback in the provision of feedback 2003 Giorgini Organizations -- 13 Basi di Dati e Sistemi Informativi II Feedforward Feedforward � Relies on sampling system´s inputs rather than its outputs. � Positive feedback: works reinforcing deviations instead of opposing them and therefore tends to increase movements away from the equilibrium. � For example, consider seasonal markets (such as the Christmas toy business): manufacturing is adjusted to suit the level of orders (input) rather then sales (output.) 2003 Giorgini Organizations -- 14 Page 7
Basi di Dati e Sistemi Informativi II Information Needs for Organizational Information Needs for Organizational Integration, Feedback and Control Integration, Feedback and Control Managt Managt. Level . Level Information Use Information Use Information Requirements Information Requirements Top Goal setting, External info: new markets, Management long-term plan. competitors, govt., strategy Internal info: financial reports, return to invest. long-term trends, what-if info,... Middle objectives def. Internal info, problem reports, Management medium-range short-term trends, planning tactics Lower obj. attainment Internal info, recent historical Management short-term plan. data, details on operations, supervision exceptions report 2003 Giorgini Organizations -- 15 Basi di Dati e Sistemi Informativi II The Structure of Information Services The Structure of Information Services Departments within an Organization Departments within an Organization Chief Information Officer (CIO) Chief Information Officer (CIO) Director, Information Services Director, Information Services Manager, Manager, Data Data Manager, Manager, Manager, Manager, Systems Systems Admin Admin Telecom Telecom Computer Computer Department Department Operations Operations Database Database Data Data Network Network Admin Admin Analysis Analysis Analysis Analysis 2003 Giorgini Organizations -- 16 Page 8
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