Information Systems

CS-507
Lecture 03

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 Organization & Information
Requirements
• Information requirements keep varying in
accordance with
 Size of organization
 Its structure
 The Culture it follows
 Decision Making Structures
 Interested parties both internal and external

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Size of the Organization &
Information Requirements

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 Size of the Organization

• Small Organization
• Medium Sized Organization
• Large/Conglomerate Organization

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Small Organizations

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 Small Organizations
• Simple management
• Volume of business is to a limited extent
• Limited number of manpower required i.e.
less number of people employed
• Mostly sole owners/sole proprietors

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 Small Organizations –
Information Requirements
• Day to day transactions
• Daily Sale
• Receivables and Payables
• Stock Replenishment / Stock Levels
• Cash management

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Medium Sized Organizations

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 Medium Sized Organizations &
Information Requirements
• Definition/distinction of small and medium sized
organization varies from country to country
• Usually family ownerships e.g. brothers, father-son, fall
under this category
• Decision making is mostly centralised and dependant on the
management style of owners.
• Information is structured to the extent of external parties
e.g. receivables/payables

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Large Organizations

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 Large Organizations

• Large scale of operations

• Complex management
• Example - Public companies

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 Large Organizations
Information Requirements
• Detailed planning required for both short and
long term
• Performance measurement against plans /
targets

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 Nature of the Business and
Information Requirements
• Manufacturing Sector
• Service Sector
• Trading Sector

Information requirements, processes &

reporting needs change with nature of
business and extent of operations.

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 Organizational Structure
• Pyramid/Tall/Hierarchical
• Low number of subordinates per supervisor
• Long chain of command
• Greater number of management levels

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Pyramid/Tall Structure

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 Organizational Structure
Flat organizational structure
• High number of subordinates per supervisor
• Short of chain of command
• Less number of management levels
• Eliminates middle level management
• Decentralizes authority to low level managers.

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Flat Organizational structure

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Information Systems
CS-507
Lecture 03

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