Management Information System "Organization Structure"

que Attributes of Organization
anizations can be distinguished on the basis of various criteria. These are as follo
rganizational structure
ulture of the Organizations
anagement Style
ecision Making Style
4.1 Organizational Structure Pyramid/Tall/Hierarchical
4.1.1 Hierarchical organization
A hierarchical organization is organization structured
in a way such that every entity in the organization, except
one,
is subordinate to a single other entity. This is the
dominant mode of organization among large
organizations; most corporations and governments are
hierarchical
organizations.
• Low number of subordinates per supervisor
• Long chain of command
• Greater number of levels
4.1.2 Organizational Structure
Flat
Flat organization refers to an organizational structure with few or no levels of
intervening
Management between staff and managers. The idea is that well-trained work
be
more productive when they are more directly involved in the decision making
process,
rather than closely supervised by many layers of management.
This structure is generally possible only in smaller organizations or individual

units within larger organizations. When they reach a critical size, organization
retain
a streamlined structure but cannot keep a completely flat manager-to-staff
relationship
without impacting productivity.
Certain financial responsibilities may also require a more traditional structure

theorize
that flat organizations become more traditionally hierarchical when they beg
geared towards productivity.
Following are the characteristics of a flat organization.
• High number of subordinates per supervisor
• Short of chain of command
• Less number of levels
• Eliminates middle level managers
• Decentralizes authority to low level managers
4.1.3 Culture of the Organization
Organizational culture is 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
organization.
Organizational values are beliefs and ideas about what kinds of goals
members of an organization should pursue and ideas about the
appropriate kinds or standards of behavior organizational members should
use to achieve these goals.
From organizational values develop organizational norms, guidelines or

expectations that prescribe appropriate kinds of behavior by employees in
particular situations and control the behavior of organizational members
towards one another.
Management Styles
horitative
ticipative
ed
Authoritative
tocratic or authoritarian manager makes all the decisions, keeping the informati
on making among the senior management. Objectives and tasks are set and the
pected to do exactly as required.
ommunication involved with this method is mainly downward, from the leader to
rdinate critics such as Elton Mayo have argued that this method can lead to a de
tivation from the employee's point of view.
main advantage of this style is that the direction of the business will remain const
he decisions will all be similar, this in turn can project an image of a confident,
anaged business.
hand, subordinates may become highly dependent upon the leaders and superv
be needed. Decisions are taken centrally by the senior management themselves
nforced at all levels.
Decision Making Approach
ructured
edures are predefined for solving routine repetitive problems
on-structured
n problems require individual judgment, evaluation and insight varying on case-
s
Sources of information in Organizations
e can be sources of information both internal and external to the organization.
wing is a list of important sources.
rnal External
aff meetings
rmal reporting systems
oject proposals
search results
mployee Surveys
rsuasive interviews
an applications
rchasing agreements
vertisement
stribution Contracts
Information Network in an Organization
odically updated / continuously updated – the information should be updated so
ever accessed, the user should be fully informed.
cient Processing – data should not be kept unprocessed for long. Timely processi
ctive decision making.
ue driven – the information kept in a computerized system should add value to th
edge.
ience Centered – every one should receive that part of information that is releva
user.
usion
ilability of timely and accurate information helps in proper decision making and
ng the organizational goals.
rmation should be tailored in accordance with the organization’s culture and stru
Attributes of an IS/CBIS
The attributes an Information System should have, to be worthy of
being used by an organization for meeting its information
requirements.
Although information requirements may vary from organization to
organization, however common premise is quite the same for many.
• Efficient Processing, including query time
• Large Storage Capacity
• Reduced information Load
• Cross-functional boundaries
• Competitive Tool
• Electronic Document Management/Paper Free environment
Let’s consider each of these one by one.
Efficient Processing
Every transaction affects our records in a number of ways. CBIS helps
in updating every change being triggered in less time and with less
effort.
Large Storage Capacity & Instant Access
Efficient and effective decision making requires two aspects
– Availability of processed corporate data – occurrence of every event
relating to a company affects policy making and implementation, thus
recording and processing of every data results in huge amount of
information
– Instant access to right chunk of information presented in
comprehensible format – both the above requirements are easy to
handle when a well structured information system is in place.
Reduced Information Load
With such huge amounts of information available, managers can feel
overloaded, hence taking more time in decision making. CBIS/IS help
to tailor loads of information w.r.t. every manager’s requirements.
The way information is presented can also save time for decision
Cross-Functional Coordination
There are various functions in an organization that need to be managed.
o Manufacturing
o Purchasing
o Warehousing
o Marketing
o Accounts
o Finance
o Human Resource
In every transaction, every department has its own share of
responsibility. Thus uncoordinated effort by every department won’t help
in achieving the successful completion of transaction and meeting
commitments. CBIS help in keeping an updated record for easy access
by every department in an organization.
Example
A customer order is received by Sales/Marketing department. Record
for customer profitability and recovery pattern are also kept by sales
dept.
• Manufacturing requires
• Customer order in quantitative terms
• Raw material availability for production
• Time available for delivery
• Procurement schedule
• Accounts require an intimation the delivery is made along with the
sales invoice
• Customer wants the status of its/his/her order
Competitive Tool
Businesses invest to earn profits or for other non-profit based objectives.
There seems no point in pouring in Co.’s hard earned money on IS if they
don’t add to the quality and value of information. Hence CBIS/IS can and
should work to enhance the competitive advantage for the organization.
Paper Free Environment
• Information overload enhances paper work.
• Maintenance of records in hard form has always proven to be a
cumbersome task.
• An IS/CBIS should be efficient enough to properly manage of
documents electronically.
• Customer orders met through Virtual Private Networks and intranets
(to be discussed later).
• Payments made through Electronic payment system.
• Report generation and record analysis gets convenient and easy.
Conclusion
Hence an Information System / Computer Based information system
should help an organization in achieving the above mentioned goals. If

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que Attributes of Organization

This structure is generally possible only in smaller organizations or individual

Certain financial responsibilities may also require a more traditional structure

From organizational values develop organizational norms, guidelines or

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