This document discusses the role of information technology in organizational design, control, and management. It covers several topics: 1. The evolution of information technology from manual to computerized systems like databases, management information systems, decision support systems, and executive information systems. 2. Feedback control systems and models that use information to monitor performance, compare to standards, and enable corrective actions. 3. Management control systems like routines, reports, and procedures that use planning, budgeting, and performance evaluation to control organizational activities. 4. How the balance scorecard and enterprise resource planning systems provide comprehensive views of organizational performance across financial, customer, internal process, and growth dimensions to improve management and control.

1. Organization Theory n Design
Information Technology
n Control
Ch-8
By
Kaleem a. Barlas

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Learning Objectives
• Information tech. revolution
• Information for decision making and control
• ODMS
• Feed back control model
• MIS
• Resource planning
• KM n impact on Orgs. Design

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information Technology Evolution
• Paradigm shift from manual to computer systems
• DBMS
• MIS
• Reporting systems
• DSS
• EIS ( executive info. Sys.)
• Feed back control systems
• Management control systems
• Balance score card

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Feed back control systems
• Effective control
• Use of feed back/information
• To match standards
• To help attain goals

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Cycle of control
• Setting strategic goals
• Effective control systems
• Organizational standards
• Performance evaluation
• Change management techniques

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Feed back control model
• Set strategic goals
• Establish metrics and standards of
performance
• Compare metrics of actual performance with
standards
• Take corrective actions as needed

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Management control system
• Routines
• Reports
• Procedures
To maintain or alter patterns in the orgs activities which include;
• Planning
• Budgeting
• Performance evaluation
• Resource allocations
• Employee rewards
• Targets are set in advance

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Continued
• Out-put compared to targets
• Variance reported to management for corrective action
Advances in IT have dramatically improved the efficiency and
effectiveness of these systems.
Executives use dashboards, desk tops, lap-tops , CCTV n other
devices to control day today operations
Budgets are monitored with the help ERP n other packages.
Financial reports help managers control the expenditure
Balance sheets are prepared by computers
Comparisons are weekly, monthly, qtrly. and annual are made

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The balance score card
• In the past the orgs. Relied on financial reports for measuring
performance, today they want balanced view of both financial n
operational measures for successful organizational control.
• BSC is comprehensive management control system that balances
traditional financial measures with operational measures relating to
co's critical success factors. It contains four ma major perspectives
• Financial performance
• Customer services
• Internal business processes
• Orgs,s capacity for learning n growth

10. YOU sleeping
wake up

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Financial perspective reflects a concern
that its activities contribute to improving
short n long term financial performance
including,
• Net-income
• Return on investment
Customer services indicators measure
such things as how customers view
orgs. N as well as customer satisfaction.
Business process indicators focus on
production n cost of production
continued

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Continued
Potential for learning n growth focuses on how
well resources and HIC are being
managed for business process
improvement n introduction of new
Products the BSC helps managers
Focus on key strategic measures
That define the success

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Enterprise Resource Planning
ERP- Central Data Base
• Sales
• Human resources
• Inventory n manufacturing
• Financial accounting
• Purchasing
• Distributing

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Knowledge Management
A primary goal for IT system is to support
management in operational, strategic and other
areas. KM does that
What is KM
Facts
Data
Information
Knowledge

15. Continued
16-15
• Collective wisdom
• Conclusions
• Linkages n comparisons
• Since inception to date rations
• Application of knowledge leads to HIC
development
Approaches to KM
• Explicit Knowledge intellectual
properties,
• patterns,
• licenses,
• processes,

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Continued
• Policies
• Procedures
• Info. On customers
• Markets
• Suppliers
• Intelligence reports
Which can be accessed

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Continued
Implicit or Tacit Knowledge
• Individual expertise
• Creativity
• Logical thinking
• Professional know-how
• Insight
• Personal experience
• Intution
•

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An orgs. That uses
advanced IT systems to
enable close coordination
with in the co n as well as
suppliers n customers, n
partners. It includes’
• Information linkages
• Horizontal relationships
• Customer relationship
management
Integrated Enterprise

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continued
• E-business Organization design
• In-House Division
• Spin-off
• Strategic partnership

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IT impact on org. design
• smaller orgs like
cyber cos.
• Decentralized organizational
structure
• Improved horizontal
coordination
• Improved inter organizational
relationship
• Enhanced network structure

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For you to think about it

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Left blank

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Assignment 3
Role of IT in Corporate Management