Chapter 3.docx

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Ryerson University
Information Technology Management
ITM 102
Catherine Middleton

Chapter 3 What is an organizationTechnical definition Stable formal social structure that takes resources from environment and processes them to produce outputsA formal legal entity with internal rules and procedures as well as a social structure Behavioral definition A collection of rights privileges obligations and responsibilities that is delicately balanced over a period of time through conflict and conflict resolutionInformal arrangements about how things get doneFeatures of organizationsRoutines and business processesOrganizational politicsOrganizational cultureOrganizational environmentsOrganizational structureOrganizational structure Five basic kinds of organizational structureThe kinds of information systems often reflects the type of organizational structureEconomic impacts of IT IT changes relative costs of capital and the costs of information Information technology is a factor of production like capital and laborIT affects the cost and quality of information and changes economics of informationInformation technology helps firms contract in size because it can reduce transaction costs the cost of participating in marketsOutsourcing Orgl and behavioral impacts of IT IT flattens organizationsDecision making pushed to lower levelsFewer managers needed IT enables faster decision making and increases span of control
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