Case Study the FBI.  What do you think were the real reasons why the VCF system failed?

Case Study the FBI.  What do you think were the real reasons why the VCF system failed?

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Organizational Strategy and IT

Organizational Design

· Different designs accomplish different goals

· Decision rights will differ according to the design

· Different reporting relationships and organizational structure will allocate decision rights in different ways

· Four major organizational designs are:

· Hierarchical

· Flat

· Matrix

· Networked

Hierarchical Organizational Structure

· Orders go down and information goes up

· IT provides communication/memory in both directions

· Also known as a bureaucracy

· First observed by Max Weber in the Catholic Church and German army and applied to early factories and offices

· Features include

· Unity of command (one boss for each person)

· Span of control (measures the number of subordinates for each boss)

· Clear lines of authority and reporting duties

Flat Organizational Structure

· Also known as horizontal organizational structure

· Features:

· Decentralized decision making

· Less well-defined chain of command

· Less clear decision rights

· Few middle managers

· IT glues together the organization

· IT allows rapid response; supports internal communications



· Uncertainty avoidance

· Power distance

· Societal collectivism

· In-group collectivism

· General egalitarianism

· Assertiveness

· Future orientation

· Performance orientation

· Humane orientation

How are IT and Culture Linked?

· IT supports cross-cultural communication

· People need to be aware of cultural differences when communicating

· This awareness will lead to:

· Better listening and understanding (correctly framed messages)

· Searching for a solution that will be accepted widely

· Reduced conflict

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