Information System on an Organization

Information systems design's traditional concentration on short-term, readily quantifiable functional factors has resulted in the development of systems that are usually quite capable of manipulating data in the desired manner to produce the required output, but often fail to promote the general behavioral climate objectives of the organization. Failure to consider such behavioral objectives in the design process can result in information systems that have an impact that is intrusive in nature on the organization. To design information systems that not only meet functional objectives, but also promote objectives related to the organization's behavior, their impact on organizational behavior must be understood and quantified. Toward that end, a methodology that can measure the impact of an information system has on the behavioral climate of the organization has been developed and tested. Utilizing pre- and post-implementation assessments of an organization's behavioral climate, this methodology enables information systems developers to identify specific potential design criteria which, when implemented, will increase the degree to which the organization's behavioral goals and objectives are met. Consideration of such organizational behavior goals and objectives when designing information systems can result in significant progress toward ensuring the acceptance and long-term survival of those information systems.

Information systems, like any other production-oriented system, have as their goal the transformation of raw materials (data) into finished goods (information) in an effective, efficient manner. In the context of information systems, this means meeting informational requirements with a minimum expenditure of available resources. To develop such information systems, design and development strategies ranging from the traditional top-down or bottom-up techniques to Joint Application Design (JAD) to object-oriented have been advanced.

Environmental Challenges of International Management

Managers functioning in a global context must be aware of several environmental challenges. Three of the most important include economic, political/legal and cultural challenges.

The Economic environment:

There are three aspects of the economic environment in particular that can help managers anticipate the kinds of economic challenges they are likely to face in working abroad.

Economic System:

The first of these is the economic system used in the country. Most countries today are moving towards a market economy. In a mature market economy, the key element for managers is freedom of choice. Consumers are free to make decision about which product they prefer to purchase and firms are free to decide what products and services are provided. For this supply and demand determine which firm and which products will be available.

            A related characteristic of market economies that is relevant to managers concerns the nature of property ownership. There are two pure types-complete privet ownership and complete public ownership.

Natural resources:

            It is an important aspect of the economic environment in different countries. A very broad range of resources is available in different countries. Like Japan have few natural resources of their own. The USA has enormous natural resources and is a major producer of oil, gas, coal, iron ore, copper, uranium and other metal and materials.

Infrastructure:

            Another important aspect of the economic environment of relevance to international management is infrastructure. A country's infrastructure comprises is schools, hospitals, power plants, railroads, highways, shipping ports communication systems, air fields, commercial distribution systems, and so forth. The United States has a highly developed infrastructure. For example, its educational system is modern. Roads and bridges are well developed, and most people have access to medical care.   

The political/legal environment:

            A Second environmental challenge facing the international manager is the political/legal environment in which he or she will do business. Four especially important aspects of the political/legal environment of international management are government stability, incentives for multinational trade, controls on international trade and the influence of economic communities on international trade.

Government stability:

            Stability can be viewed in two ways-as the ability of a given government to stay in power against opposing factions in the country and as permanence of government policies toward business. A country that is stable in both respects is preferable, because managers have a higher probability of successfully predicting how government will affect their business. Government policies are likely to be and whether the government will be able to guarantee the safety of international workers.

Incentives for international trade:

            Another facet of the political environment is incentives to attract foreign business. Incentives can take a variety of forms. some of the most common include reduced interest rates on loans, construction subsidies, and tax incentives. Less developed countries tend to offer different packages of incentives.

Controls on international trade:

            A third element of the political environment that managers need to consider is the extent to which there are controls on international trade. In some instances, a country's government might decide that foreign competition is hurting domestic trade. To protect domestic business, such governments may enact barriers to international trade. These barriers include tariffs, quotas,

export restraint agreements, and "buy national', laws.

Economic communities:

            Just as government policies can either increase or decrease the political risk facing international mangers, trade relations between countries can either help or hinder international business. Relations dictated by quotas, tariffs, and so forth can hurt international trade. There is currently a strong movement around the world to reduce many of these barriers. The movement takes its most obvious form in international economic communities. An international economic community is a set of countries that agree to markedly reduce or eliminate trade barriers among member nations.

The Cultural Environment:

            Another environmental challenge for the international manager is the cultural environment and how it affects business. A country's culture includes all the values, symbols, beliefs, and language that guide behavior.

Values, symbols, beliefs and language:

                Cultural values and beliefs are often unspoken; they may even be taken for granted by themes that live in a particular country. Cultural factors do not necessarily cause problems for managers when the cultures of two countries are similar. Difficulties can arise; however, when there is little overlap between the home culture of a manager and the culture of the country in which business is to be conducted.

            (Cultural differences between countries can have a direct impact on business practice. For example, the religion of Islam teaches that people should not make a living by exploiting the misfortune of others; as a result, charging interest payments is seen as immoral.

            Some cultural differences between countries can be even more subtle and yet have a major impact on business activities. For example, USA managers clearly agree about the value of time.)

 Individual behaviors across culture:

            From another perspective, there also appear to be clear differences in individual’ behaviors and attitudes across different cultures.

1.      Social orientation is a person's beliefs about the relative importance of the individual versus groups to which that person belongs. The two extremes of social orientation are individualism and collectivism. Individualism is the cultural belief that the person comes first. Collectivism, the opposite of individualism, is the belief that the group comes first.

1.      Power orientation is beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations.

2.      Uncertainty orientation is the feeling individuals have regarding uncertain and ambiguous situations. People in countries with uncertainty acceptance are simulated by change and thrive on new opportunities.

3.      Goal orientation is the manner in which people are motivated to work toward different kind of goals. One extreme on the goal orientation continuum is aggressive goal behavior.

Environment in which Managers Operate.

The general environment of an organization is the set of board dimensions and forces are not necessarily associated with other specific organizations. The general environment of most organizations has economic, technological, socio-cultural, political-legal and international dimensions.

The economic:

The economic dimension of an organization's general environment is the overall health and vitality of the economic system in which the organization operates. Particularly important economic factors for business are general economic growth, inflation, interest rates, and unemployment.

The economic dimension is also important to non-business organizations. Like hospitals are affected by the availability of government grants and the number of low-income patients they must treat free of charge.

The technological:

The technological dimension of the general environment refers to the methods available for converting resources into products or services. Although technology is applied within the organization, the forms and availability of that technology come from the general environment. Computer-assisted manufacturing and design-techniques, for example, allow Boeing to simulate the more than three miles of hydraulic tubing that run through a 777 aircraft. The results include decreased warehouse needs, higher-quality tube fittings, fewer employees and major time savings. Although some people associate technology with manufacturing firms, it is also relevant in the service sector.

The Social:

The socio-cultural dimension of the general environment includes the customs, mores, values and demographic characteristics of the society in which the organizations functions. Socio-culture processes are important because they determine the products, services and standards of conduct that the society is likely to value.

For example, consumers are willing to pay premium prices of designer clothes whereas the same clothes have virtually no market in other countries. Consumer taste also changes overtime.

The political-legal:

The political-legal dimension of the general environment refers to government regulation of business and the relationship between business and government. This dimension is important for three basic reasons.

First, the legal system partially defines what an organization can and cannot do.

Second, pro or anti-business sentiment in government influences business activity.  

Finally, political stability has ramifications for planning. No business wants to set up shops in another country unless trade relationships with that country are relatively well defined and stable.

The international:

The extent to which an organization is involved in or affected by business in other countries. The international dimension also has implications for non-profit organization.

Business Ethics

Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, technical, legal and business ethics.

Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values

Corporate Social Responsibility

The business benefits of corporate social responsibility

Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving responsibly, and also dealing with suppliers who do the same. It also offers direct business benefits. See the page in this guide on how to benefit from corporate social responsibility.

Building a reputation as a responsible business sets you apart. Companies often favor suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers.

There are other benefits too:

• A good reputation makes it easier to recruit employees.
• Employees may stay longer, reducing the costs and disruption of recruitment and retraining.
• Employees are better motivated and more productive.
• CSR helps ensure you comply with regulatory requirements.
• Activities such as involvement with the local community are ideal opportunities to generate positive press coverage.
• Good relationships with local authorities make doing business easier. See the page in this guide on how to work with the local community.
• Understanding the wider impact of your business can help you develop new products and services.

CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognize this and are more willing to finance you.

Ethical Issues in Information Technology

Other set of issues that has emerged in recent times involves information technology. Among the specific questions in this area are individual potential abuse of information technology rights to privacy and the by individual. Indeed, online privacy has become a hot topic, as companies sort out the ethical and management issues. Double-Click, an online advertising network, is one of the privacy storm.  The company has collected data on the habits of millions of web surfers, recording which sites they visit and which ads they click on. Double-click insists the profile are anonymous and are used to better match surfers with appropriate ads. However, after the company announced a plan to add names and addresses to its database, it was forced to back down because of public concerns over invasion of online privacy.

            Double-click is not the only firm-gathering personal data about people’s Internet activities' people who register Yahoo are asked to list date of birth, among other details. Amazon.com, eBay, and other site also for personal information. As Internet usage increases, however surveys show that people are troubled by the amount of information being collected and who gets to see it.