Organization Theory n Design

Information Technology n Control

Ch-8

By Kaleem a. Barlas

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Learning Objectives • Information tech. revolution • Information for decision making and control• ODMS• Feed back control model• MIS• Resource planning• KM n impact on Orgs. Design

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information Technology Evolution • Paradigm shift from manual to computer systems • DBMS• MIS• Reporting systems • DSS • EIS ( executive info. Sys.)• Feed back control systems• Management control systems • Balance score card

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Feed back control systems

• Effective control

• Use of feed back/information

• To match standards

• To help attain goals

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Cycle of control • Setting strategic goals• Effective control systems• Organizational standards• Performance evaluation • Change management techniques

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Feed back control model • Set strategic goals • Establish metrics and standards of

performance• Compare metrics of actual performance with

standards• Take corrective actions as needed

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Management control system • Routines • Reports• Procedures

To maintain or alter patterns in the orgs activities which include;• Planning • Budgeting • Performance evaluation• Resource allocations• Employee rewards• Targets are set in advance

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Continued • Out-put compared to targets• Variance reported to management for corrective action

Advances in IT have dramatically improved the efficiency and effectiveness of these systems.

Executives use dashboards, desk tops, lap-tops , CCTV n other devices to control day today operations

Budgets are monitored with the help ERP n other packages.

Financial reports help managers control the expenditure

Balance sheets are prepared by computers

Comparisons are weekly, monthly, qtrly. and annual are made

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The balance score card

• In the past the orgs. Relied on financial reports for measuring performance, today they want balanced view of both financial n operational measures for successful organizational control.

• BSC is comprehensive management control system that balances traditional financial measures with operational measures relating to co's critical success factors. It contains four ma major perspectives

• Financial performance • Customer services • Internal business processes • Orgs,s capacity for learning n growth

YOU sleeping wake up

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Financial perspective reflects a concern that its activities contribute to improving short n long term financial performance including,

• Net-income • Return on investment

Customer services indicators measure such things as how customers view orgs. N as well as customer satisfaction.

Business process indicators focus on production n cost of production

continued

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Continued

Potential for learning n growth focuses on how well resources and HIC are being

managed for business process

improvement n introduction of new

Products the BSC helps managers

Focus on key strategic measures That define the success

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Enterprise Resource Planning

ERP- Central Data Base • Sales • Human resources • Inventory n manufacturing • Financial accounting• Purchasing • Distributing

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Knowledge Management

A primary goal for IT system is to support management in operational, strategic and other areas. KM does that

What is KM Facts

Data

Information

Knowledge

Continued

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• Collective wisdom• Conclusions• Linkages n comparisons • Since inception to date rations • Application of knowledge leads to HIC

development

Approaches to KM • Explicit Knowledge intellectual

properties, • patterns, • licenses,• processes,

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Continued • Policies

• Procedures

• Info. On customers

• Markets

• Suppliers

• Intelligence reports

Which can be accessed

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Continued

Implicit or Tacit Knowledge • Individual expertise • Creativity• Logical thinking• Professional know-how• Insight• Personal experience• Intution•

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An orgs. That uses advanced IT systems to enable close coordination with in the co n as well as suppliers n customers, n partners. It includes’

• Information linkages • Horizontal relationships• Customer relationship

management

Integrated Enterprise

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continued• E-business Organization design • In-House Division• Spin-off • Strategic partnership

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IT impact on org. design• smaller orgs like

cyber cos. • Decentralized organizational

structure • Improved horizontal

coordination • Improved inter organizational

relationship• Enhanced network structure

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For you to think about it

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Left blank

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Assignment 3

Role of IT in Corporate Management