In: Accounting
Which features of organizations do managers need to know about to build and use information systems successfully? What is the impact of information systems on organizations?
1. All modern organizations are hierarchical, specialized, and impartial, using explicit routines to maximize efficiency. All organizations have their own cultures and politics arising from differences in interest groups, and they are affected by their surrounding environment. Organizations differ in goals, groups served, social roles, leadership styles, incentives, types of tasks performed, and type of structure. These features help exlpain differences in organizations' use of information systems.
Information technology provides new tools for managers to carry out both their traditional and newer roles, enabling them to monitor, plan, and forecast with more precision and speed than ever before and to respond more rapidly to the changing business environment. Information systems have been most helpful to managers by providing support for their roles in disseminating information, providing liaisons between organizational levels, and allocating resources. However, some managerial roles cannot be supported by information systems, and information systems are less successful at supporting unstructured decisions.
2.
Information systems and the organizations in which they are used interact with and influence each other. The introduction of a new information system will affect organizational structure, goals, work design, values, competition between interest groups, decision making, and day-to-day behavior. At the same time, information systems must be designed to serve the needs of important organizational groups and will be shaped by the organization's structure, business processes, goals, culture, politics, and management. Information technology can reduce transaction and agency costs, and such changes have been accentuated in organizations using the Internet. New systems disrupt established patterns of work and power relationships, so there is often considerable resistance to them when they are introduced.Technology such as email, computer systems, and social media have has a strong impact on the way we operate, and run business. If a business wants to be successful and competitive they must implementing successful Information Systems, algorithms and procedures. They must stay abreast of new ideas that will save money and yet be cutting edge. It is important to have innovative team members who understand this technology, master it, and expand it’s information to others.