This chapter discusses how organizations use information technology for coordination and control. It examines how IT systems are applied to decision making and operational management. The chapter provides an overview of how IT affects organizational design and inter-organizational relationships. It also describes different types of information systems used for managerial control and decision making, including information reporting systems, executive information systems, and decision support systems. Finally, it discusses various management control systems like quality control, benchmarking, and balanced scorecards that organizations use with IT to monitor performance at different levels.

1. CHAPTER 8
USING IT FOR COORDINATION AND
CONTROL
NOOSHA SAFAHANI & AZARNOOSH ZIAEUNIVERSITY OF
TEHRAN

2. transformation by information technology (IT)

3. Purpose of this chapter
IT systems applied to organizational operations
examines how IT is used for decision making and
control
how IT can add strategic value
overview of how IT affects organization design and
interorganizational relationships

4. INFORMATION TECHNOLOGY EVOLUTION

5. Information Systems
for Managerial Control and Decision Making

6. information reporting system
 the most common form of MIS, provides mid-
level managers with reports that summarize
data and support day-to-day decision making.

7. executive information system(EIS)
 higher-level application
 facilitates decision making at the highest levels
of management
 typically based on software
large amounts
of
complex data
pertinent information
in a
timely fashion

8. decision support system (DSS)
 all levels of the organization
 rely on decision models and integrated
databases
 users can pose a series of what-if questions to
test possible alternatives
 help managers to choose the alternative that will
likely have the best outcome

9. Information Systems
for Managerial Control and Decision Making

10. A Simplified Feedback Control Model

11. Management Control Systems
Formal routines, reports and procedures that use
information to maintain or alter patterns in
organizational activities.
 Use for planning, budgeting, performance
evaluation, resource allocation, and employee
rewards.
Targets are set in advance, outcomes compared
to targets, and variances reported to managers
for corrective action.

12. The core of management control systems

13. IN PRACTICE
If you can’t measure it, you can’t
control it.

14. Executive dashboard

15. The core of management control systems

16. Quality-control system
 training employees in quality-control
methods.
 setting targets for employee participation.
 establishing benchmarking guidelines.
 assigning and measuring Six Sigma

17. Six Sigma
 Six Sigma specifically means a
highly ambitious quality
standard that specifies a goal
of no more than 3.4 defects
per million parts.

18. Benchmarking
 Benchmarking means the process of
persistently measuring products,
services, and practices against tough
competitors or other organizations
recognized as industry leaders.

19. THE LEVEL AND FOCUS OF CONTROL
SYSTEMS
Department
Level
Behavior
control
Outcome
control
Organization
Level
Balanced
Scorecard
Strategy
Map

20. Major Perspectives of the Balanced
Scorecard

21. Strategy Map for performance
management

22. Department Level
Behavior control
Outcome control