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Chapter 3

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Chapter 3 Organization and Information Systems Organizations and Information Systems Information systems are developed by managers to serve interests of the business firm The interaction between information technology and organizations is complex and is influenced by many mediating factors including the organizations structure business processes politics culture surrounding environment and management decisionsWhat is an OrganizationOrganization a stable formal social structure that takes resources from the environment and processes them to produce outputs The Technical definition focuses on 3 elements of an organization1Capital labour are primary production factors provided by the environment2The organization transforms these inputs into products and services in a production function3The products and services are consumed by environments in return for supply inputs An organization is more stable than an informal group in terms of longetivity and routine Organizations are also social structures because they are a collection of social elements much as a machine has a structurea particular arrangement of values cams shafts and other parts Behavioural definition of an organization it is a collection of rights privileges obligations and responsibilities that is delicately balanced over a period of time through conflict and conflict resolutionA technical view of organizations encourages us to focus on how inputs are combined to create outputs when technology changes are introduced into the company The firm is seen as infinitely malleable with capital and labour substituting for each other quite easily In behaviour terms an organization is a collection of rights privileges obligations responsibilities and feelings that have been established and balanced over a long period of time Changing information systems requires changing that balanceTechnological change requires changes in who owns and controls information who has the right access and update that information and who makes decisions about whom when and how Technical and behavioural definitions of organizations complement each other The technical definitions tells us how thousands of firms in competitive markets combine capital labour and
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