Strategic Management of

Information Systems
Keri Pearlson & Carol Saunders
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 Information Information
Information
Systems and Systems and
Systems and
Organizational Management
Culture
Design Control Systems

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Organizational Control Cultural

Decision rights Data

Business processes
Planning

Formal reporting Values

Performance measurement
and evaluation
relationships

Informal networks Incentives

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 Figure 3.1 Organizational design variables.
Variable Description
Organizational variables
Decision rights Authority to initiate, approve, implement, and control various types of
decisions necessary to plan and run the business.
Business processes The set of ordered tasks needed to complete key objectives of the
business.
Formal reporting The structure set up to ensure coordination among all units within the
relationships organization.
Informal networks Mechanism, such as ad hoc groups, which work to coordinate and
transfer information outside the formal reporting relationships.
Control variables
Data The information collected, stored, and used by the organization.
Planning The processes by which future direction is established,
communicated, and implemented.
Performance The set of measures that are used to assess success in the execution
measurement of plans and the processes by which such measures are used to
and evaluation improve the quality of work.
Incentives The monetary and non-monetary devices used to motivate behavior
within an organization.
Cultural variables
Values The set of implicit and explicit beliefs that underlie decisions made
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hierarchical Flat Matrix Networked

Formal/informal
Bureaucratic w/ Decision-making Workers assigned
communication
defined levels of pushed down to to 2 or more
networks that
management lowest level supervisors
connect all

Division of labor Informal roles, Known for

Dual reporting flexibility and
specialization, planning and
based on adaptability
unity of control; often
function/purpose
command sm.,young orgs.

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 Figure 3.4 Comparison of organizational structures

Hierarchical Flat Matrix Networked

Description Bureaucratic w/ Decision-making Workers assigned to Formal/informal

defined levels of pushed down to 2 or more communication
management lowest level supervisors networks that
connect all
Division of labor Informal roles, Dual reporting based Known for flexibility
Characteristics and adaptability
specialization, unity planning and on function/purpose
of command control; often
sm.,young orgs.
Unstable
Type of Stable Unstable Unstable
Environment Best Uncertain
Certain Uncertain Uncertain
Supported
Functions and
Basis of Structuring Primary function purpose Networks
Primary function

Power Structure Distributed

Centralized Centralized Distributed
Key Tech. Networks
Supporting this Mainframe, Personal computers Intranets and
centralized data and Internet
processing
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Data collection Evaluation Communication

Number of keystrokes.
Monitoring,
Performance, Incentive “360-degree” feedback
and Reward
Precise time spent on a
task.

Exactly who was

contacted. Use models and
simulations Quick feedback
Specific data that passed
through the process

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Figure 3.5 Levels of culture.

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 Figure 3.5 – National cultural dimensions
GLOBE DESCRIPTION RELATIONSHIP TO
DIMENSIONS HOFSTEDE DIMENSION
UNCERTAINTY EXTENT TO WHICH MEMBERS OF AN ORGANIZATION OR SAME AS UNCERTAINTY
AVOIDANCE SOCIETY STRIVE TO AVOID UNCERTAINTY BY RELIANCE ON
SOCIAL NORMS, RITUALS, AND BUREAUCRATIC PRACTICES
TO ALLEVIATE THE UNPREDICTABILITY OF FUTURE
EVENTS.
POWER DISTANCE DEGREE TO WHICH MEMBERS OF AN ORGANIZATION OR SAME AS POWER DISTANCE
SOCIETY EXPECT AND AGREE THAT POWER SHOULD BE
EQUALLY SHARED.
COLLECTIVISM I: DEGREE TO WHICH ORGANIZATIONAL AND SOCIETAL SAMES AS INDIVIDUALISM/ COLLECTIVISM
SOCIETAL INSTITUTIONAL PRACTICES ENCOURAGE AND REWARD
COLLECTIVSIM COLLECTIVE DISTRIBUTION OF RESOURCES AND
COLLECTIVE ACTION.
COLLECTIVISM II: DEGREE TO WHICH INDIVIDUALS EXPRESS PRIDE, TYPE OF COLLECTIVISM FOCUSED ON
IN-GROUP LOYALTY AND COHESIVENESS IN THEIR ORGANIZATIONS SMALL IN-GROUPS
COLLECTIVISM OR FAMILIES
GENERAL EXTENT TO WHICH AN ORGANIZATION OR SOCIETY MODIFIED VERSION OF
EGALITARIANSIM MINIMIZES GENDER ROLE DIFFERENCES AND GENDER MASCULINITY/FEMINITY
DISCRIMINATION
ASSERTIVENESS DEGREE TO WHICH INDIVIDUALS IN ORGANIZATIONS OR MODIFIED VERSION OF
SOCIETIES ARE ASSERTIVE, CONFRONTATIONAL AND MASCULINITY/FEMINITY
AGGRESSIVE IN SOCIAL RELATIONSHIPS
FUTURE DEGREE TO WHICH INDIVIDUALS IN ORGANIZATIONS OR SIMILAR TO CONFUCIAN WORK
ORIENTATION SOCIEITES ENGAGE IN FUTURE-ORIENTED BEHAVIORS DYNAMISM BY HOFSTEDE AND BOND
SUCH AS PLANNING, INVESTING IN THE FUTURE, AND (1988)
DELAYING GRATIFICATION
PERFORMANCE EXTENT TO WHICH AN ORGANIZATION OR SOCIETY
ORIENTATION ENCOURAGES AND REWARDS GROUP MEMBERS FOR
PERFORMANCE IMPROVEMENT AND EXCELLENCE
HUMANE DEGREE TO WHICH INDIVIDUALS IN ORGANIZATIONS OR SIMILAR TO KIND HEAREDNESS BY
ORIENTATION SOCIETIES ENCOURAGE AND REWARD INDIVIDUALS FOR HOFSTEDE AND BOND (1988)
BEING FAIR, ALTRUISTC, FRIENDLY, GENEROUS, CARING
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