The Emergence of System Technology and Computer-Based Information - Coursework Example

INTRODUCTION Information 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 FACTORS The Environment in Which the Organization Must Function Business 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. Strategic alignment of information technology exists when a business organization’s goals and activities are in harmony with the information systems that support them (McKeen & Smith, 2003). Chief Information Officers and information technology executives give top priority to effective alignment of information technology with business strategy because it positively influences information system effectiveness leading to superior business performance. There are plenty of reasons why information system and business goals don’t always work well together. However, most organizations need to align better their business goals with the information system. Accomplishing this is not easy, but not doing it is just like building a complex building without an architectural plan. Today’s business world is getting complex and so does information system. It is most important to consider that business philosophies, objectives, and information system needs must be specific and distinctive to the organization. Tasks, Decisions, and Business Processes that the Information System is Designed to Assist Managerial IT knowledge refers to top management personnel experiences and knowledge in information technology. Their background, experiences and awareness in information system enables them to be more productive and proactive in information technology thereby enabling them to plan strategically. Information regarding business activities and decisions are getting more complex due to increasing volume of sources of information and data relevant to a certain business. The use of information system provides filter and direct flow of information. In making important decisions top management personnel, supervisors or department heads and information technology professionals in the business must be armed with knowledge not only in management and business operations but also in information technology. More data, information sources and a variety of available media can be accessed through the use of information technology ensuring confidence and prevent CEOs or top management from making fatal decisions. Utilization of information technology contributes in the efficiency of business management, generate profits, and improve business competitiveness. For Sony, knowledge and skills in information system is very important to survive in a very competitive industry. Type of Organization and its Leadership Style Leadership and management styles deal with the way in which the management tends to influence, coordinate, and direct people’s activities towards group’s objectives (Aldag & Sterns, 1991; Robins, 1994). There are many leadership styles that can bring success to an organization. Leadership style depends on the size of the business organization, company effectiveness and results. It must be taken into consideration, however, if the leadership and management style is right for the business. Over hundreds of information system project across large business organizations, a significant determinant that separates the successes from the failures is the leadership style used to move a project forward from inception to user acceptance ((Royce, 2005). One reason for low successes of information technology project is the practice of traditional leadership and management approaches which do not encourage adjustment needed in reconciling levels of uncertainty. It is recommended to use a steering leadership style rather than the detailed plan-and-track leadership style encouraged by conventional wisdom (Royce, 2005). The growth of management information system is an on-going process of organizational change and the MIS managers or chief information officer and top management have to deal with other personnel to ensure the success of the system. Situation changes as the MIS grows and each stage requires different leadership style. Managers have to be flexible in their approach with the workers to make them more productive. According to (Lu and Wang, 1997) an important component of management style is leadership style. It is found that leadership style and system success correlate positively and significantly. However, there is still a need to explore the many styles of management and leadership to ensure that it is the right one for the organization. Principal Interest Groups Affected by the System and the Attitude of Workers Who Will Be Using the System Resources allocation is plan for using available resources not only in terms of money but also time, and most importantly people for the implementation of a program or project which in this case is the management information system. It could also be for future plans. The plan will be for basic allocation and contingency mechanisms. In contingency mechanisms there are priorities showing what division or section to be funded more when it comes to manpower trainings or specialization or what division needs to be reduced when there is a need for reduction. The implementation of an information system requires additional personnel which also mean additional expenses for an organization like Sony thus, prioritizing will maximize the increasing expenses and productivity. The advent of information system makes it easier for top management to gain access for information and data thereby identification of priority items is made easy. Resources allocation is not only about money, it could also be people. The creation and implementation of information system require people with special skills, knowledge and patience to make a complex system work and function. Human resource allocation plays a vital role in corporate strategies and business success. In large organizations the human resources specialize in one area while it differs in smaller enterprise in which the human resources are jack-of-all trades involved in several areas. Having sufficient fund, appropriate people, and enough time are most important elements for the success of information system project. There is indeed a significant relationship between resource allocation and successful information system implementation. Conclusion The advent of modern technology has caused the increasing volume of business information and data which contributed to the more complex practice of business today. For business organization like Sony who wants to increase productivity and gain profit as well, the creation and implementation of management information system is one of the best solutions. Management information system makes available all information and data which aid in the decision making of top management. Resorting to the power of information technology assures one of good business decisions. However, to have successful information systems there are six central organizational factors to consider which were enumerated and discussed above. The significant relationship of these factors to management information system ensures successful system implementation. Bibliography: Laudon, & Laudon, . Management Information System. http://www.sony.co.uk Open Systems Approach. [online]. Available: http://www.accel-team.com/business_process/systems_analysis_06.html retrieved August 16, 2008. Read More