INTRODUCTIONInformation system has been widely discussed in almost every organizations or businesses. The emergence of system technology and computer-based information has made the planning, decision-making, or supervision of these businesses efficient and effective. Thus, it is widely used today. However, many issues have cropped up which influences the effectiveness of the information system. One of the recognized dominated managerial issues is the information system planning. Factors affecting information system effectiveness are also important and one of these factors is the organizational factors. According to (Laudon & Laudon), the central organizational factors to consider when planning a new system are the following: 1.
The environment in which the organization must function; 2. The structure of the organization: hierarchy, specialization, routines, and business processes; 3. The organization’s culture and politics; 4. The type of organization and its style of leadership; 5. The principal interest groups affected by the system and the attitudes of workers who will be using the system; 6. The kind of tasks, decisions, and business processes that the information system is designed to assist. SIX CENTRAL ORGANIZATIONAL FACTORSThe Environment in Which the Organization Must FunctionBusiness environment surrounds a business organization, and must have a reciprocal relationship.
A business environment affects the processes, decisions, strategies, and performances of the organization. An organization puts up business in an environment where they can draw resources and offer their goods and services in return. In order to come up with a higher order of system, a relationship must be established between the organization and the environment. Changes in the macro and more so in the micro environment affects the profitability of an organization. One factor affecting macro environment is political.
The government must provide a dynamic environment for business. Environment changes faster than the organization, new technologies, consumer’s taste and values affect organizations rapidly and failure to adapt to such changes results to the organization’s closure. Added to the changes is the emergence of information system which opens the opportunity for global competitiveness. Hence, strengthening the system by putting up subdivisions with individual specialization may help organizations cope with these changes. One example is the management information system which provides environmental scanning helping top management to identify external changes that might require organizational response. It is in this light that Sony constantly thinking and redesigning to create innovative digital products to meet the consumers’ changing needs and tastes.
Structure of the Organization: Hierarchy, Specialization, Routines, and Business Processes According to (Bacal, R. & Associate) goal alignment or the act of aligning goals in an organizations involves ensuring that both people from top to bottom in an organization, and divisions, branches and departments, are working to achieve similar goals. An organization such as Sony the different departments or divisions such as manufacturing, production, marketing, sales division are among the many divisions of such organization must understand how their own job responsibilities contribute to the attainment of organizational goals.
Each division has different specialization and processes which are interrelated. A properly structured organization is important in achieving an effective information system in an organization. Getting people working together towards the same direction, aiming the same goals result in much less effort, higher productivity, and much less frustration within the organization.