2.
Contingency theory is a class of behavioral theory
that claims that there is no best way to organize a
corporation or to lead a corporation to make
decisions, rather it depends on the situation and
fitness between. structure and context.
“Contingent” simply means that the effect of one
variable, A, on another variable, B, is contingent
upon the third variable C. Thus, contingency theory
is a subset of this more general contingency
approach in science (Donaldson 2001).
HISTORY OF
CONTINGENCY THEORY:
3.
A course of action to be followed if a preferred plan
fails or an existing situation changes.
OR:
"The contingency approach attempts to understand
the interrelationships within and among
organizational subsystems as well as between the
organizational system as an entity and its
environments. It emphasizes the multivariate
nature of organizations and attempts to interpret
and understand how they operate under varying
conditions ..."
Definition:
4.
There are a number of important assumptions in the contingency
approach, some explicitly stated and others implicit. Some of the
important ones are listed in summary form below.
Fit:
The better the fit among contingency variables [e.g., between
technology and organizational structure] the better the
performance of the organization. Performance is generally defined
as a function of financial variables such as return on investment,
profit or net wealth.
Rationality:
Organizational actors perform in ways that are always in concert
with the super ordinate goal of organizational effectiveness. As a
consequence, there is always goal consensus among decision
makers within an organization.
Assumptions:
5.
Situational Determinism:
For example, the environment is given and managers
and thus organizations cannot influence it.
Deterministic models:
Clear causal inference is often made.
Linear model of contingency variables:
Most contingency studies rely on statistical methods
which are based on the general linear model, e.g.,
regression.
8.
Definition:
A contingency is anything that occurs outside the range of
normal operations that may adversely affect an
organization’s ability to operate. Simply stated,
contingency planning is about being prepared and is an
integral part of regular operations planning. A contingency
plan is a blueprint for how to deal with unusual events.
Regardless of size, all organizations need contingency
plans.
Contingency Plan:
9.
Purpose:
The purpose of a contingency plan is to allow an
organization to return to its daily operations as quickly as
possible after an unforeseen event. The contingency plan
protects resources, minimizes customer inconvenience and
identifies key staff, assigning specific responsibilities in
the context of the recovery.
For example, human resources may develop employee
evacuation plans; support employee benefits programs,
such as health care or worker’s compensation; or hire
temporary workers as needed.
10.
Process definition:
A contingency plan enables the organization to respond
quickly and structured when an disaster occurs.
Recovery time decrease by having the right tools,
documentation and resources in place.
Activation and Notification:
Activation of the contingency plan occurs after
disruption or outage. When a disaster is detected the
disaster team is established and an recovery approach
is decided.
Contingency plan Content:
11.
Recovery:
The detailed recovery activity and resource plan is execute.
Current procedures and instructions are performed by skilled
persons that can recover the system without intimate system
knowledge.
Reconstruction:
In the reconstruction phase, temporary recovery solutions are
terminated and the system is transfer back to fully normal
operation mode.
Evaluation:
Evaluation of how durable the contingency plan is to support
high recovery performance based on test and review activities.
12.
"MIS is an integrated, user-machine system for
providing information to support operations,
management, analysis and decision-making
functions in an organization. The system utilizes
computer hardware and software; manual
procedures; models for analysis, planning, control
and decision making; and a database.
Management Information
System:
13.
Early Development:
MIS began to develop as a field in the mid 1960's;
little was published until the late 1960's.
The early work roughly divides into the three
categories that resemble the base disciplines.
As an example of MIS research with a behavioral
flavor, IBM performed and published research on the
effects on computer programmer productivity of
working in teams supervised by a chief programmers.
15.
What is MIS:
1. Right Information.
2. To the Right Person.
3. At the Right Place.
4. At the Right Time.
5. In the Right Form.
6. At the Right Cost.
16.
The term MIS and IS are often confused. IS may include
systems that are not intended for decision making. In
effect, MIS must not only indicate how things are going,
but why they are not going as well as planned where that
is the case.
Information system applied to management context is
called MIS. IS can be applied to any area of business
while MIS is applicable for managerial decision-making.
IS means use of Hardware and software for any business.
MIS can be used in any form. Even manual reports, which
aid decision-making.
Difference Between Management Information
System and Information System:
17.
MIS is used to analyze other information
systems applied in operational activities in
the organizations.
MIS summarize and report on the
company’s basic operations. The basic
transaction data from TIPS are compressed
and reported.
18.
Management of marketing, finance, production and
personnel becomes more efficient, the tracking and
monitoring becomes easy.
Helps in understanding of business itself, MIS begins with
definition of data and its attributes uses data dictionary and
brings common understanding of terms and terminology in
organizations.
MIS calls for systemization of business operations, leads
to streaming of operations, brings discipline in its
operations everyone is required to follow.
Impact of MIS:
19.
Since the goals of MIS are driven from organization
goals, it helps indirectly pulling everyone in
organization towards corporate goals by providing
relevant information to the people in the organization.
MIS helps to monitor results and performance.
IT enabled MIS is partly responsible for the
PARADIGM shift (A change a new model) from
support to contributing to an organizations
profitability.
20.
Operational Level System:
Support operational managers by keeping track of the
elementary activities and transactions of the organization, such
as sales, receipts, cash deposits and the flow of material in a
factory.
Management Level Systems:
Serve the monitoring, controlling, decision-making, and the
administrative activities of middle managers.
Strategic Level System:
Help senior management tackle and address strategic issues and
long term trends, both in the firm and in the external
environment.
Types of Information
System:
21.
As the field of MIS has grown and developed a clear
contingency approach has emerged.
Although it is not explicit labeled a contingency theory ,
the evidence is strong and similarities to organization
theory are clear.
The theory suggests that a number of contingency
variables influence the performance of information
systems; the better the "fit" between these variables and
the design and use of MIS the better the performance.
The Emergence of a
Contingency Theory of MIS:
22.
Contingency theory is closely related to system
design (Scott 2003). It adopted an open systems
view on organization System theory ontology can
aid as framework for review and analysis of
contingency theory research stream. Open system
imports energy from the environment. What is
imported depends on the nature of the system or
subsystem. For organization, it might be staff,
money, technology, and information.
Conclusion: