csis 114 lab 6: organizational culture and structure
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CSIS 114 Lab 6:Organizational Culture and
Structure
Part 1:Organizational culture
Shared understandings, values & assumptions in an organization
Influences information systemsSiena and IBM example
IBM’s culture
Lifetime employment (up until 1987 !)Social interaction: Kingston Country
ClubConservative dressOur computers are the bestOther companies make computers, too?
Siena’s Culture
Men with brown robes: Franciscan influence.
ROTC.Strong athletic program and alumni
support.Academics: Liberal arts.Students: mostly regional, Irish/Italian.
Culture Characteristics:low or high on scale
Innovation & Risk taking – encouraged?Attention to detail – precision, analysisOutcome orientation (vs process)People orientation - considerationTeam organization – work activitiesAggressiveness - competitivenessStability – status quo
Function of CultureDistinguishes organization from othersConveys sense of identity to membersCommitment to group rather than selfEnhance social system stability –
guidelines for behaviorEncourages conformity (control) -
rewards
Creating and maintaining culture
Stories - historyRitualsLanguage – jargon or slogansMaterial symbols: dress codes, office
space, furnishings, other perks, rewards system
NASA Case
Part 2:Organizational structures
Define organizational structure, and explain how they affect work processes and the implementation of information systems that should empower and support workers.
Organizational Structureinfluences information flow
Lines of communicationFormalInformal : IT makes CEO more
accessible. Relationships make business processes work.
Vertical (control) vs Horizontal (collaborative)
Traditional Organizational Structure
Fig. 2.3
Organizational StructureApproaches
Traditional – hierarchyIndustrial revolution and earlier “command and control”Rote work by unskilled staff
FlatProjectTeamMultidimensional
Example of Traditional Structure
Fig 2.4
“Flat” Organizational Structure
Less middle managersLess up/down (filtering) communication
Empowerment of staff – via ISFaster action and Lower costs
EX: Insurance rep handles entire caseCable TV help desk can make decisions and provide
refunds/extras (up to certain amount) Be careful about becoming too flat: sometimes
managers can see the big picture or resolve longer-term problems.
Project Organizational Structure
Fig 2.5
DELL: Sales force structure changed to accommodate growth
Maintained double-digit sustained growth by market segmentation.
Each group has specific customers that they specialized in.
Each group was close-knit and entrepreneurial.
As sales grew, company split off more specialized groups- see next slide.
La rg e c us to m e rs S m a ll c us to m e rs
M ids izeC o 's
S m a ll c us to m e rs
G o vt&E d
La rg eC o 's
F e dS ta te
&Lo c a l
E ducG lo ba lE nte r.a c c ts
La rg eC o 's
M idC o 's
S m a llC o 's
C o ns -um e rs
1 9 9 4$ 3 .5 B
1 9 9 6$ 7 .8 B
1 9 9 7$ 1 2 B
Team Organizational Structure
Work groups of various sizesTemporary or permanent teamsPeer pressure to performEach member learns all functions of teamTeam can even make budgetary and hire/fire
decisions
Gore’s innovative organization model (makers of Gore-Tex)
Split divisions when they reach > 150 people.
Research indicates that people don’t feel part of community that is too large.EX: Shakers split “families” that are too
large. No managers, just “mentors”
Titles, offices don’t mean a thing.
Multidimensional Organizational Structure
Fig 2.6
Multidimensional (matrix) Organizational Structure
May incorporate several structures at the same time Advantage:
ability to simultaneously stress both traditional corporate areas and important product lines
Two mentorsFlexibility to move people within functional area
Disadvantage:multiple lines of authority
Virtual Organizational Structure:diverse groups act as a single entity.
Employs business units in geographically or organizationally dispersed areasSouthwest airlines: Moms handle reservations at
homeContract out work to specialty shops
Can be permanent or temporary.IS must support&coordinate virtual distributed
organization. [e-mail, scheduling, videoconferencing, etc.] since workers mostly communicate electronically.
Organizational innovation Downsizing - “rightsizing” Vertical Integration
own all phases of production Horizontal Integration (conglomerates)
Going into other lines of business Acquisitions and mergers
Keiretsu: Japan’s answer to conglomerates Can be either vertical or horizontally integrated
Virtual Integration Business Web value chains: act as one company. EX: Dell and its suppliers. CISCO and manufacturers.
Partnerships / Cooperation Outsourcing/off shoring
Downsizing
Downsizing: “rightsizing”cutting the number of employees by layoffs or hiring freeze or reorganization (sell off business units)
Keiretsu Case
Part 3: Outsourcing and offshoring(ch. 14 in O’Brien)
Outsourcing: contracting with outside company (within U.S. or not)American Express hires IBM to manage
servers, databases and helpdesk.Other company may hire foreign nationals
that may reside in U.S.
When to outsource?
When you can cut costs.Limited opportunity to distinguish
competitively through the function.When uninterrupted service is not critical.When technical know-how can be maintained
internally.When existing IS function is ineffective or
inferior. [Stair, p 523]
Offshoring(ch. 14 in O’Brien)
Also known as: Off-shore outsourcing More specific term than outsourcing.Contract out to (or own) offshore company
GE, Texas Instruments have subsidiaries in IndiaMove sophisticated work to another country to
take advantage of lower cost structures (finance, banking, call center, IT services: programming, system management).
Countries with innovative, educated in IT/engineering, English speaking, workers are successful.
Near-shoring to Canada: less cultural differences
Off-Shoring projectionsGartner Inc. predicts that 40% of companies
with revenue of more than $100 million will be trying out or using offshore services by the end of 2004.
Gartner also predicts that one in 20 IT jobs will head offshore by the end of 2004.
Cambridge, Mass.-based Forrester Research Inc. projects that more than 3 million U.S. white-collar jobs will be lost to offshore outsourcing during the next 10 years or so -- a half-million of them in IT.
Off-shoring Case
Pro and Con analysis.
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