ࡱ> y{xM 3bjbj== !jWW"/l   8D` Jf (H:IIIIIII$qK MFII I   .I I   #;EsF , /* .F$FI0 JF$O.OF Understand the basic concepts of organisational structure as they impact on/affect ICT systems. Heathcote Ch 36 The ICT4 module is about Information Systems within organisations. In order to understand the relationship between organisations and its Information System, you need to know what an organisation is and what sort of structure it might have. An organisation is a combination of elements which combine to fulfil a purpose this might be a system that: - Takes capital and labour as input and outputs services or products. Is also a social structure in which rules and procedures govern the way that the people working in the organisation interact.. Each organisation will set up systems and subsystems according to its goals (set out in a business plan) Organisational Structure Is very important to an organisation if it is to be effective in general this will be hierarchical. The work force will be arranged so that a particular employee has a manager. The manager will in turn be responsible to a higher level manager. At the top of the hierarchy is the owner, board of directors, parent company or whoever has ultimate responsibility for the organisation. Levels in a hierarchical organisation p.200 Senior Managers  Responsible for long term planning and setting the overall goals for the organisation. More interested in summative information that can be broken down into more detailed information if necessary.Middle Managers  They carry out the programs and plans of senior management by supervising employeesNeed reports from above and below will need help in making decisions.Operational managers and workers Responsible for producing the goods or delivering the services. There will some degree of management at this level such as foreman or team leader.Interested in day-to-day information that will keep the organisation going regularly scheduled reports. Information requirements within this hierarchy Strategic (Mostly Senior Management)What do customers want? How are they likely to react to the organisation? Are there any demographic trends? What does the government require from me? What are competitors doing now or in the near future? What is the availability of resources? What forecasts are there for the long-term? Results of previous analysis.Tactical (largely Middle Managers)How well am I performing compared with the past? What is my current performance? I.e. are targets being met? Is there any exceptional performance either good or bad that I need to be concerned about? What forecasts are there for the short-term? Results of previous analysis OperationalDetails of recent performance. How am I currently performing? Organisation by function P.197 This is a likely structure in organisations whereby the up arrows generally indicate power, responsibility, accountability and powers of decision making. The downward arrows measure delegated responsibilities or tasks. In a large organisation, it may be based on divisions where each division replicates the hierarchical structure of other divisions. The larger an organisation the more structured it is likely to be and the more clearly defined will be the roles of individuals within the structure. In a small business may be less structured and formalised and the roles of several people may overlap. Even here there is likely to be a developing division of labour and some hierarchical structure when it comes to making important decisions. The core purpose of an organisation The Core Purpose reflects the values of the organisation. This may change according to market conditions, the maturity of the business or the function of the organisation itself. . Core purposes are often incorporated in Mission Statements and may include to maximise profits to maximise return to shareholders to provide maximum employment to survive to provide a defined specialist service. Success of an organisation P.196 This will depend upon how well it manages and controls the following: PeopleOrganisation TechnologyCareer Strategy Education Training Employee attitudes/ParticipationHardware Policy Mission Statement Management structuresSoftware Telecommunications Information Systems An Organisational Map An interesting breakdown of how organisations of all types work is shown below this then helps us in thinking how ICT will help in managing such a complex scenario.  Environmental pressures p.199 A new employer might create jobs in an area, which leads to individuals having more money to spend. Small shops might suffer if a big organisation takes their customers. Schools may need to deliver new educational initiatives.  The organisation It is important that all components of the organisation share the same vision and all areas are working to meet the business objectives. Informal arrangementsFormal arrangements  People  Tasks The Decision Making process Management style Trust Teamwork Leadership Power and Authority Conflict management Rewards and punishments RelationshipsStructure Roles Responsibilities Administration Rules Systems Conflict managementSkills Attitudes Needs Beliefs ValuesOperational methods Information Flows Technology Managing the organisation PLANNING  Setting goals and direction for the organisation. ORGANISING  Drawing together resources to implement the plan. DIRECTION  Seeing people do their job. CONTROLLING  Evaluating performance against plans that were set.  The role of Information within an organisation Information is the lifeblood of organisations and computers the heart, the pump that keeps the blood flowing, nourishing the entire organisation Information is thus of critical importance hence the reason that ICT stands as a methodology. Information must be controlled so that it does not arrive too late to be of any use, is accurate and relevant. Information can be gathered formally e.g. using EDI/specialised documents etc. Or informally e.g. telephone conversations etc. Using ICT within an organisation We will discover throughout this module that ICT has profoundly changed the ways organisations conduct their businesses, in particular it has led to making traditional hierarchies a lot flatter. Information flows within a system may be represented below  The ways ICT impact upon Information Flows When studying applications of ICT you should make a mental note of how ICT is being used External Information flow Customer enquiries generated from website, e-mails, texts etc. Sales order from customer by fax, website, EDI etc. Customer after sales liaison from expert system, on-line control etc. Finding new customers and securing of new business call centres, multiple e-mail postings etc. Quotation responses to customer e-mail attachments, video-conferencing etc. Auto acknowledgement of order to customer via e-mail, EDI etc. Promoting products, advertising campaigns DTP, website etc. Being aware of competitors look at their website etc. Internal Information flow will include check availability of stock products to/from stores new customer details to accounts provide sales reports made to order sales to production allocate stock to order ,to stores, customer and sales order details to accounts customer credit status from accounts, Salesperson sales and expense details to personnel. A JUST -IN TIME SYSTEM - stock is ordered just in time...ready for sale/production. Think of a supermarket system  HYPERLINK "http://www.e-learningcentre.co.uk/eclipse/Guides/performance.htm" http://www.e-learningcentre.co.uk/eclipse/Guides/performance.htm JIT e-learning HYPERLINK "http://www.shef.ac.uk/uni/projects/wrp/nhsnet.html" http://www.shef.ac.uk/uni/projects/wrp/nhsnet.htmlJIT in hospitals EXAMINATION QUESTIONS 1998.2 (6 Marks) With the aid of appropriate examples, explain the difference between formal and informal information flows. Formal: defined by system with fully documented and agreed procedures stating stages of flow, control, exception handling, distribution network...(2/1/0)... internal memos (1) Informal: naturally arises within the organisation via phone calls, personal conversation, gossip, meetings, observation. (2/1/0) plus any two examples (1) (1) e.g. exam/test results updated via two different routes. January 2003.1 Information is communicated at three levels within an organisation. State these three levels. (3 marks) Strategic Tactical Operational June 2002.2 A company which distributes car parts has recently expanded and wants to commission a new corporate information system. It needs the system to be successful to ensure the future growth of the business. State five factors that could cause the failure of such an information system. (5 marks) inadequate analysis / testing / life cycle stage lack of management / end-user involvement in design / testing / development emphasis on computer system concentration on low level data processing lack of management knowledge of ICT and its capabilities inappropriate or excessive management demands lack of team work lack of standards problems with change over NOT size of project resentment / resistance to change organisation structure training costs June 2002.5 Many commercial organisations already operate using computer-based information systems, yet they often introduce new systems to replace current ones. a. State three reasons why a feasibility study might recommend the replacement or updating of an existing information system. (3 marks) b. Describe three factors that should be considered when discussing the introduction of a new information system. (6 marks) a. Current system no longer fit for purpose/is ineffective Changes in processes/business methods (Do not allow business studies reasons) New legislation forces changes Technical developments mean current system outdated/redundant Current system inflexible/too expensive to run/developer skills rare therefore expensive NOT competitive edge b. 1 for factor (F), 1 for expansion/example (E) - max. 3 x (2,1,0) (if give TEL a S as single words, then one mark only; if say 'issues' e.g. 'Technical, Economic and Legal issues' then 3 marks) Technical issues Economic issues Legal issues Operational issues Schedule issues Training Issues Changeover Issues June 2002.8 A large chain of supermarkets makes use of data processing systems and information systems. a. With the use of suitable examples, identify the difference between a data processing system and an information system. (4 marks) b. Describe, with an example of each, the role of an information system in decision making for the following levels of supermarket management: i. tactical; ii. strategic. (4 marks) c. Give an example of how a data processing operation in a supermarket might provide data for a company-wide information system. (2 marks) a. 1 mark for each of DP and IS, plus 1 for each example DP - precise/low level/electronic data capture/used for repetitive/routine business activities. (1) Examples: Stock control/payroll calculations/invoices/ point-of-sale (1) IS - collection of data to improve performance/aid to decision making/support for management. (1) Examples: Sales Information system/Financial Info system/stock summary (1) b. 2 marks for each level - 2 x (2, 1, 0) Tactical (local in this context) - affecting hour by hour/day-to-day/short-term operational decisions (1), e.g. staff rosters, reorder quantities on previous local sales, how many tills to open etc (1) Strategic (central in this context) - long term decisions (1), where to locate new stores, what lines of merchandise to carry, based on sales figures etc (1) Must be in context - first mark for indicating output from OP system is used/processed by an MIS; second mark is dependant on the first The data from the POS system (items sold, loyalty card information) is processed (1) AND to show who buys what, location, time of day/week/year (1) OR into information that can be presented in a way to enable management to make strategic decisions(1) A2 Module 4 (ICT4) 13.1: Organisational Structure  HYPERLINK "http://www.nchadderton.zen.co.uk/front.htm" 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