Page 50 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Unit 3: IT Impacts

and managers to collaborate more closely and work better in teams. New information systems Notes
also enable virtual organizations and geographically dispersed teams and groups to work
together to meet personal and organizational goals.

3.2.2 Implications for System Design

The decision-making process is much different in today’s organization than it was just a few
years ago. The danger of building a system to accommodate today’s process is that it will not
take these changes into account. Understanding how people and organizations make decisions
will help build a system that can accommodate the organization and the employees.

Information systems should be created not only to help mangers and employees make decisions,
but also help them better communicate between all levels and units of the organization.
Remember, decisions are not made in isolation. More important, decisions affect a wide range
of people, and the system should accommodate this fact.
The real danger in using information systems to help make decisions is that the decision-
making process will be based on the wrong information. Because managers may assume that
the situation is similar to one they experienced before, they may not be as careful as they would
be if it were an entirely new situation. For instance, management may decide that the new
packaging materials are as good as the old ones because they are the same color.
Therefore managers won’t be as careful in studying all the data, all the possible outcomes and
the alternatives when making the decision to change suppliers. They make the decision based
on the first available alternative that moves them toward their ultimate goal. They find out too
late that the packaging materials are not as good as the old ones and they end up with more
damaged goods and irate customers.

Information systems should have these characteristics:
 They are flexible and provide many options for handling data and evaluating information.
 They are capable of supporting a variety of styles, skills, and knowledge.

 They are powerful in the sense of having multiple analytical and intuitive models for the
evaluation of data and the ability to keep track of many alternatives and consequences.
 They reflect the bureaucratic and political requirements of systems.

 They reflect an appreciation of the limits of organizational change and an awareness of
what information systems can and cannot do.

Did u know? What is system design?
Systems analysis describes what a system should do to meet information requirements
and system design shows how the system will fulfill this objective.

Self Assessment Questions

Fill in the Blanks:
4. Information systems can help managers and employees work more efficiently and
effectively in this new environment by increasing the amount of .............................. available
to all employees.
5. Information systems should be created not only to help mangers and employees make
decisions, but also help them better ..................... between all levels and units of the organization.

LOVELY PROFESSIONAL UNIVERSITY 45