Performance of Information Systems through Organizational Culture Essay

The objective of this paper is to determine the importance of the connection between the organizational culture and the information system which can be vital to achieve essential business goals. However the proper definition of information system (IS) is important, as different people create confusion in this respect, which according to Anderson (1992) it is the system which captures, records, and reorganize data then provides results which are useful for managerial purposes. On the other hand information technology IT is only the technological part of IS and the organizational culture is simply the way things are done in a firm. The interaction of these systems would result in huge advantages. Now it is that we have precisely viewed the explanation of IT, IS and organizational culture. We should now look at their interconnectedness. IT and organizational culture are incorporated in order to have statistical and meaningful information from the raw and unarranged data which is the information for decision making, however the feasibility of the implementation of such system is important in terms of technology and its cost. Once an idea or belief is accepted by a larger group it is said o be powerful and if it is accepted by a specific group then subcultures are said to exist and it is important to determine that which culture is dominant, and on the basis of this culture two opinions are created one which says that yes IT is important and the second which identifies IT as the fundamental basis of the IS, however it is also important that the new culture should be implemented or meant for a foreseeable future in the long-term and not in the short-term, as the short-term creates complexity quite earlier as compared to long-term approach, if there is some element of deviation of opinion. No matter what is the final decision is, the carrying out of the implementation process is important, currently in most firms there exists a ‘’IT specialist culture’’ which involves only the IT personnel in this process and obviously is not much effective. Therefore it is important that in the implementation of an IS, not only IT personnel should be involved but also the top management and the users of this IS should also be involved so that their requirements are catered in an efficient and effective way. Theoretical principles or basics Today the world is turned into a dynamic market place, where firms need to compete in terms of prices, efficiency and technology. For this purpose experts have realized the importance of information systems (IS) with information technology (IT) as its basis, combined together with the organizational culture. The perfect combination of these three important systems of a firm a firm is able to achieve a competitive status in the world market. Therefore it is important to have such elements in the firm in order to achieve businesses vital goals. For this purpose cultural change is to be incorporated, provided that it is the way things are done or the set of norms of the firm, therefore the bubble-like approach of incorporating cultural changes is said to be the most effective one. Under this idea of bubble-like cultural change, comes the idea of informatics and informational culture. The idea of IS is also important, however majority of people confuse it with IT however the correct expl anation are the one discussed earlier. The implementation of IS’s in most of the firms has resulted into various advantaged to the firms; briefly it enables the management to acquire meaningful information from the raw data and later to help decision making. But the successful implmetation and usage of the IS requires three important components which are: 1, the data or information, the people (implementers and users) and the material resources. Here the data can be any data form example businesses truncations or employee’s records, and the material resources are the mechanical supportive equipment for example office furniture and computers etc and lastly the people are the user and the implementers of the IS. Now with people here comes the notion of organizational culture, the culture in accordance with the IS and IT plays an important role if these three things are in line or are in agreement then vital advantages can be observed which are discussed as follows: Â · As it decreases the anxiety and confusion created by the IT/IS, it supports the adaptation of the environmental changes, therefore it contributes positively to the overall satisfaction level of the internal staff who have been involved in its implementation. Â · Â   Enables the management to know if the implantation id accepted by the users. Â · Â   Social relations are created when the implementers and users of different departments meet to implement the system. This adds to the motivation level of the employees. Â · Tells the users that which information will be available at what location in what time. Â · Â   Determines the effectiveness of the IT/IS associated to the means of communication, as both inside and outside, it is a vital way correspondence. Â · Â   As it explains that what are the norms and practices of the entity, a feeling of strong unity is created. Interconnectedness of IT, IS and Organizational Culture An IS is created so that meaningful information can be derived out of the raw data, therefore it is that an IS is responsible for converting data into information and therefore quantity and quality of the information is important. However the relationship between data, culture and information system is important. Only an effective IS can be developed when there is perfect correlation between these three. And then only information which is meaningful can be obtained and used for managerial purposes. We have discussed that appropriate people in appropriated places is important, another point about the feasibility in terms of technology and finance. If there are no sufficient financial and technological assistance and resources then the application of the IS may not be successful, for example if due to lack of finance some important features of the IS are excluded from the plan then it won’t produce accurate and meaningful results. Another way in which the relationship of IT and organizational can be reviewed can be provided with two questions that whether it is the IT which creates the lines of an organizational culture or whether it is the organizational culture that decides that whether IT solutions should be incorporated or not; answers to these can be this if there is strong feeling among the users of the IS and other supporting staff that the use of IT has resulted into the benefits of some particular group, department or a person then incorporation of computerized solution will form as the firms norms or in other words culture because majority thinks that yes IT is important. However it is also possible that opposite can happen, which can be further elaborated in a way that there have been opposite behaviors in respect of the discussion between the service and manufacturing sector. This is because in manufacturing businesses there is more of manual labor work and computerization and IT is incorporated to a lesser extent thus a culture in manufacturing would be less compatible to the IT, whilst in the service sector more of IT solutions are required and computerization is involved to a larger extent therefore there is strong evidence of the fact that information technology can set the value’s and norms of the firm. Now there is a question that which approach is the best? This is difficult question to answer because the two have enormous effects on each other, but in light of modern business techniques IT/IS solutions have been more effective on the cultural practices, this is because an IS not only automates the flow of data but also provides manage ment with alternatives ways of doing things in respect of efficiency, accuracy, and timeliness. Specific Relationship of Information System and the Organizational Culture It is possible that there exists a conflict between the norms or cultural practices of two groups in an entity. Therefore, it is in vital interest of the firms that these differences are rectified, because when there is one common way of doing things efficiency and timeliness are prone to occur along with economies of scale ( reaching a position when per unit cost is lowest). More specifically these divergences can be that a larger group supports one view and a smaller group supports the contrary this is known as the subculture. Distinction between these two opinions is necessary so that there might be an informatics or an in informational culture. Where informatics is that for example usage of IT is important, and the informational culture is with more detail where it says in order to make correct and accurate decisions IT should be incorporated as the basis of an IS. The first culture is easy to understand but the second one goes into more detail, it also includes in it the first culture and also the organizational behavior and the information data. It however necessary that in order to have a successful transformation of IT into an IS, conversion of informatics culture into the in informational culture is necessary. Informational and Informatics Culture; Features It is now that we have come to know that what are the two cultures now we must discuss that which one is to be transformed into the other through administrative intervention. When we talk about the informatics culture the case is that it only considers the costs of the IT department only in the short term, therefore it ignores the long-term research and development process which can result into the firms inters this is why it is a usual case that firms end up in spending more and earning less from IT centers as proper consideration are not taken when purchasing its equipment and employing staff. However on the contrary the informational culture approach considers the outputs of an IT center to a larger extent; it not only considers the quantitative aspects of the IT solution but also the long-term usefulness to the firms in respects of tactical and strategic planning, it not only sees the IT solution in terms of an IS as cost, but also highlights it advantages and long-term benefits in terms if research and development and therefore upon this approach distributes its cost over its useful life.