Information systems and organizational collaboration in modern businesses

Information Systems Have Changed the Way We Collaborate and Work in Significant Ways

Introduction to Information System within an organization

Computers are continuously being used in organizations since the appearance of first ever application of this technological equipment that could be helpful in supporting organizational work. It is unavoidable in modern and up-to-date organizations where there is diversity in the organizational work and all related activities. In the early years, Information System was a relatively easy task that was easy to explain but with improvement in system and advancement in technology, it has become quite difficult to explain the functions and role of IS in the organizations. Information systems are playing a vital and expanding role in organizations (brien, 1975).

Information System was established on the basis of management, computer science and organizational theories. It also aimed to focus on the use of computer at personal level as well as in organizations. Information System plays a vital role as a field of inquiry. It is interested in using the available resources in promoting organizational aims, operations research, accounting and above all it emphases on the use of computers in society and organizations (Stahl, 2008). It is the study of corresponding network of hardware and software that is used by individuals, as well as organizations to collect, screen, process, produce and distribute data. In the past few decades, technological advancement has evolved drastically. It has performed several tasks such as giving the opportunity to connect and collaborate beyond borders. It has performed various task in global market such as increasing the pace of business, allowing far-reaching collaboration, flattening of the market, bringing innovation in business and changed the way to connect and sell to the clients (Cegielski & Rainer, 2007). It also plays a vital role in helping the managers and workers in analyzing the problems. On the whole, Information System tends to improve the efficiency and effectiveness of all businesses (brien, 1975).

Overall analysis of advantages of Information System

Over the past few decades, Information System has played a vital role in improving and revolutionizing the efficiency of business by mechanizing transactions and handling accounts. It has given rise to increased globalization, effective communication, improved cost effectiveness, helped in bridging the cultural gap and creation of employment opportunities (Power, 2005). On the contrary, IS reduces the need of human effort, although it has created employment opportunities but reduced the human need in an organization. The employment opportunities are created but the work done by ten people in the past is now being done by only two people. Hence human need is reduced (Power, 2009). Although this will increase cost efficiency of the organization but will negatively affect global job market.

Role of Information System in Organizations

Organizational system and information system are interlinked. Both influence and affect each other. Information System is built with the core purpose of serving the business firms positively. It is a complex system dependent on several factors such as organization's structure, business strategies, political circumstances, and culture and management decisions. It has become an important tool that affects every minute working of the bigger organizations. Over the past two three decades, Information Systems has altered the basic economics of the organization under which it used to operate all its functions previously. It has changed the cost of capital as well as cost of information. Information technology has greatly improved and mechanized the structure of the organizations that has in turn reduced manual work load ( Lecuit, 1999). This reduction in labor work has resulted in decline in middle managers and clerical workers. Two to three decades back, organization depended on labor for basic chores which are performed by computers these days. This has reduced the burden of hiring extra labor by the organizations and this in turn reduces the expenses of organizations, thus increasing profits. On the contrary, it creates unemployment.

Every organization is developed to excel in the market, to make huge profits and to gain competitive advantage over the other competitors in the market. Competitive advantage is referred to the strategic advantage that one business entity has over its rival entities within the industry (Sanchez & Heene, 2010). With the changing trends of the market, a firm can gain competitive advantage over other rivals only if it keeps on evolving itself with information system. The widening scope of information system is the result of increasing interdependence business plan, rules, and procedures on one side and Information Systems software, hardware, databases, and telecommunications. Secondly, evolvement of IS in organizations is the result of increased intricacy and opportunity of system projects and applications. Over the years, IS has gained an integral position in organizations because of rising power and decreasing cost of computer technology. Even small scale organizations have increased the use of IS in their work to improve their standard and quality of work. Information System can perform several tasks which are as follows:

Automation of Manual Tasks

Information Systems can be helpful in mechanizing manual tasks of the organization. Computerization can have productive results as it can save time, money and resources and improve organizational workflow. Several Information Systems are designed to serve this purpose. There are robotic information systems used in medical services to logistical information systems that help in mechanizing warehouses and distribution systems (Fortune & Peters, 2005). All this is cost effective but as it increases unemployment which in turn affect economy as a whole.

Support of a Multi-Processing Environment

Another salient feature of Information System is time-sharing application. It aids in creating a multi-processing environment. This feature improves the efficiency of the system as it processes, develops and assesses transactions simultaneously. These application helps in saving time and resources as numerous departments can have access concurrently (King & Lyytinen, 2006).

System Partitioning

System partitioning is another important feature of Information System that is used to partition the layout of an information system. This helps in creating a stable and efficient usage of the system. This prevents overloading of the system; hence slowing down of system performance is avoided. System partitioning is sustained by a procedure of "preventive maintenance" which guarantees the efficient and competent working of system partitioning. Providing Data for Decision Support is one of the most important and effective role of Information System. Data is collected through transaction processing and query routines. This system gives the opportunity to executive management to examine numerous matters of an organization and make situations with the help of information system for a desired outcome. The results thus obtained are used in improving productivity by making them an integral aspect of organizations' objectives and goals.

Bureaucratic theory of Max Weber

Some salient characteristics of the bureaucratic theory of Max Weber are presented below. Each feature is explained in context to outdated as well as modern features of managerial systems they were intended to do well.

Fixed division of labor

The jurisdictional areas with particular obligations and rights are stated and cannot be changed at the urge of any leader. As far as division of labor and its duties are concerned, they can be changed anytime by the leaders will ( Warick, et al., 1975). This change by the leader cannot be challenged by anyone. It basically suppresses the concept of labor unions.

Hierarchy of offices

According to this rule, each post was controlled and monitored by a high rank official and lower officers were given the right to appeal decisions made by higher authorities. With the evolvement of Information System, this traditional system has weakened as power is diffused throughout the organization.

Creation of rules to govern performance

According to Weber rules should be created to govern performance and official decisions. These rules should be stable, consistent and self-explanatory. This rule is in accordance to current organizations system where rules are strictly followed and cannot be changed by individual for his own convenience unlike, obsolete traditional system where rules were not stated clearly and could be changed by the leaders anytime for fulfilling personal desires and objectives.

Separation of personal from official property and rights

This rule stated by weber's theory is in accordance to current setup of organizations where office equipment and any related office property should belong to office rather than any individual. Personal property should be completely separate from office property. On the other hand, in traditional organizations, personal and official property rights were not parted unless needed.

Selection based on qualifications

According to this postulate of Weber's theory, selection is based upon individual's qualification. A person has to go through different stages during the hiring process in order to measure his potential and talent. He is judged on several aspects to figure out that whether he is capable of handling the work. People in such organizations are compensated with salary and perk as mentioned in organization's manual, and are not compensated with any personal benefits such as power ( Stahl, 2008). In traditional organizations, selection was based upon the relation candidate had with any leader of the organization. Personal benefits like land, property were given to compensate people. Stable and fixed rules will lead to creative employees who will perform their tasks and duties effectively and will make an effort to accomplish their targets (Constans, 1958).

Clear career paths

According to the rule, a clear career path is designed in the organizations. The purpose of this path is to make promotions and demotions on a clear set merit and standard. Employment is such organization is seen as a career for individuals ( Heijden, 2009). Unlike traditional system where leader determines the career path out of his own choice, irrespective of merit and set standard. In such system, job security is impossible.

Information System: an effective tool for "reforming" Bureaucracy in modern organizations

Information System can play a vital role in enabling changes and reforms because of its challenging nature. Government and higher management can be reengineered through IS to serve society and organizations in an effective way. This view holds that the features of Weberian bureaucracy, i.e. hierarchy, division of labor and inflexibility of rules have led to a situation in bureaucratic organizations where processes are highly inflexible and information is not shared properly. This has resulted in government bureaucracies and top management being inflexible and indifferent to the needs of citizens and employees. In such situation IS can bring improvements in teamwork and information sharing within these bureaucracies, and can thus make them flexible, approachable and competent. Hence IS immensely important in reforming Bureaucracy.

Impact of Bureaucracy and Knowledge Management under Information System in Organizations

With the worldwide advancement and progress in technology, influence of the knowledge economy, in public administration sector as well as private sector has increased. Knowledge management has become an important tool to improve government performances, enhance work flow, improve service efficiency, and stimulate flexibility (Cegielski & Rainer, 2007). In the mid of 19th century, majority of organizations were usually structured as bureaucracies. In such organizations, the overall structure and procedures were based upon logic, order and legitimate use of official authority. Bureaucracies intend to be methodical, just, and extremely well-organized. In today's advancing world, bureaucracies are viewed as negative as they are bound to limits. Organizations with bureaucratic structure are rigid and are slow and steady to respond to changes in external as well as internal environment. It is assumed that such organizations will perish relatively fast. But all bureaucratic structures as unavoidably faulty. In certain circumstances, thus theory is necessary for the working of an organization. Nature of each organization and its environment affects the way the firm needs to be organized and managed. For instance, a school, college or university, a government body such as courts, embassies etc. needs a well-organized bureaucratic structure where tasks are specified clearly, rights and obligations of its members are defined clearly, there is a clear cut defined staff position with formal relationship between them and formal communication is prevalent throughout the organization. The motive for such procedures is to guarantee that the organization is capable to deal with its members in a reasonable and just manner. The disadvantage of such system is the lack of flexibility in the organization. This might result in trouble for the organization as they are relatively slow in coping with the unexpected situation that may arise. The procedures are usually time consuming and this leads to slow decision making process which can affect the organization drastically in a negative way. In such situation Knowledge Management is an effective tool. Its efforts focus on organizational aims such as upgraded performance, competitive advantage, modernization, constant progress of the organization. KM efforts are in accordance with organizational learning, and focus on the management of knowledge as a calculated benefit and an emphasis on inspiring the sharing of knowledge. Knowledge management has numerous advantages but it fails to function properly without a proper Information System. Information System can play a key role in Knowledge Management. Two important approaches to Knowledge Management that cannot be attained without a well-established Information System are codification and personalization (Thacher, 1834). Codification refers to the process of codifying and storing knowledge in knowledge bases. Information System helps in the sharing of this knowledge through common storage. Whereas personalization helps in knowledge sharing through direct communication. The role of IS here is to help people to locate each other and communicate through IS tools like knowledge expert directories and video conferencing ( Savolainen, 1999). Hence this entire discussion shows that Bureaucratic organization need careful Knowledge Management to respond effectively to environmental changes in this fast moving technological era. This Knowledge Management is impossible without a proper Information System. Thus Bureaucracy, Knowledge Management and Information System are interlinked.