Information systems and organisational issues

Technical Microeconomic Definitionof the OrganizationThe Behavioral View Of OrganizationsFIGURE 3-2In the microeconomic definition of organizations, capital and labor (the primaryproduction factors provided by the environment) are transformed by the firm throughthe production process into products and services (outputs to the environment). Theproducts and services are consumed by the environment, which supplies additionalcapital and labor as inputs in the feedback loop.9© Prentice Hall 20113-9FIGURE 3-3The behavioral view of organizations emphasizes grouprelationships, values, and structures.10© Prentice Hall 2011 3-10Features of organizationsRoutines and business processes•Use of hierarchical structure• Accountability, authority in system of impartial decisionmaking• Adherence to principle of efficiency•Routines and business processes• Organizational politics, culture, environments andstructures• Routines (standard operating procedures)•Precise rules, procedures, and practices developedto cope with virtually all expected situations• Business processes: Collections of routines• Business firm: Collection of business processes11 © Prentice Hall 2011 3-1112 © Prentice Hall 2011 3-12