Types of Organization

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LESSON 2: ORGANIZATIONAL INFORMATION SYSTEMS
An introductory topic on Management Information System

Organizations are formal social units devoted to the attainment of specific goals. The success of any organizations is premise on the efficient use and management of resources which traditionally comprises human, financial, and material resources. Information is now recognized as a crucial resource of an organization. Examples of organizations are business firms, banks, government agencies, hospitals, educational institutions, insurance companies, airlines, and utilities.

Organizations and information systems have a mutual influence on each other. The information needs of an organization affect the design of information systems and an organization must be open itself to the influences of information systems in order to more fully benefit from new technologies. [pic]

This complex two-way relationship is mediated by many factors, not the least of which are the decisions made—or not made—by managers. Other factors mediating the relationship are the organizational culture, bureaucracy, politics, business fashion, and pure chance.

1. Organizations and environments
• Organizations reside in environments from which they draw resources and to which they supply goods and services. Organizations and environments have a reciprocal relationship. • Organizations are open to, and dependent on, the social and physical environment that surrounds them. Without financial and human resources—people willing to work reliably and consistently for a set wage or revenue from customers—organizations could not exist. • Organizations must respond to legislative and other requirements imposed by government, as well as the actions of customers and competitors. • On the other hand, organizations can influence their environments. Organizations form alliances with others to influence the political process; they advertise to influence customer acceptance of their products.

Information systems are key instruments for environmental scanning, helping managers identify external changes that might require an organizational response. New technologies, new products, and changing public tastes and values (many of which result in new government regulations) put strains on any organization’s culture, politics, and people.

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2. Standard operating procedures (SOPs)
Precise rules, procedures, and practices developed by organizations to cope with virtually all expected situations. These standard operating procedures have a great deal to do with the efficiency that modern organizations attain.

3. Organizational Politics
People in organizations occupy different positions with different specialties, concerns, and perspectives. As a result, they naturally have divergent viewpoints about how resources, rewards, and punishments should be distributed. These differences matter to both managers and employees, and they result in political struggle, competition, and conflict within every organization. Political resistance is one of the great difficulties of bringing about organizational change—especially the development of new information systems. Virtually all information systems that bring about significant changes in goals, procedures, productivity, and personnel are politically charged and elicit serious political opposition.

4. Organizational culture
Organizational culture describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the...
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