This chapter discusses the complex relationship between organizations and information systems. It defines an organization as a stable social structure that takes in resources and produces outputs. The chapter explores how organizations have standard operating procedures, politics, and cultures. It also examines how organizational environments provide resources and how organizations supply goods and services to their environments. Finally, it discusses how information technology can economically and behaviorally impact organizations by flattening structures, enabling post-industrial organizations, and causing resistance to change.

1. Management Information System
with Internet Technologies
Part 1 Organizations, Management
and the Networked Enterprise
Chapter 3 Information Systems,
Organizations, and Strategy

2. Chapter 3
Information Systems, Organizations
and Strategy

3. Organizations and Information Systems
• The interaction between information technology
and organizations is complex and is influenced
by many mediating factors, including the
organization’s structure, business processes,
politics, culture, surrounding environment, and
management decisions

4. THE TWO-WAY RELATIONSHIP BETWEEN ORGANIZATIONS AND
INFORMATION TECHNOLOGY

5. What is an Organization?
• An organization is a stable, formal social
structure that takes resources from the
environment and processes them to produce
outputs.

6. THE BEHAVIORAL VIEW OF
ORGANIZATIONS

7. Features of Organizations
• Standard Operating Procedures – are precise rules,
procedures, and practices that have been developed
to cope with virtually all expected situations.
• Organizational Politics – political struggle for
resources, competition and conflict within an
organization
• Organizational Cultures – encompasses set of
assumptions about what products should the
organization produce, how it should produce them,
where and for whom.

9. Organizational Environments
• Organizations reside in environments from
which they draw resources and to which they
supply goods and services.
• Information systems are key instruments for
environmental scanning, helping managers
identify external changes that might require an
organizational response.

13. How IT Impacts Business Firms
• Economic Impact
• Organizational and Behavorial Impact
▫ IT flattens organizations
▫ Post-industrial organizations
▫ Understanding Organizational Resistance to
change

14. See you next chapter