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Types of Organization

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Types of Organization
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.
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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

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