Hierarchical View of the Firm.

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Hierarchical View of the Firm.

Hierarchical View of the Firm.

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Interpersonal Figurehead CIO greets touring dignitaries.

Leader IS manager puts in long hours to help motivate project team to complete project on schedule in an environment of heavy budget cuts.

Liaison CIO works with the marketing and human resource vice presidents to make sure that the reward and compensation system is changed to encourage use of the new IS supporting sales.

Informational Monitor Division manager compares progress on IS project for the division with milestones developed during the project’s initiation and feasibility phase.

Disseminator CIO conveys organization’s business strategy to IS department and demonstrates how IS strategy supports the business strategy.

Disturbance handler IS division manager, as project team leader, helps resolve design disagreements between division personnel who will be using the system and systems analysts who are designing it.

Resource allocator CIO allocates additional personnel positions to various departments based upon the business strategy.

Negotiator IS manager negotiates for additional personnel needed to respond to recent user requests for enhanced functionality in a system that is being implemented.

chaotic and random activities. This book uses several conceptual models of business. Some take a functional view and others take a process view.

Functional View The classical view of a business is based on the functions that people perform, such as accounting, finance, marketing, operations, and human resources. The business organizes around these functions to coordinate them and to gain economies of scale within specialized sets of tasks. Information first flows vertically up and down between line positions and management; after analysis, it may be transmitted across other functions for use elsewhere in the company (see Figure I-4).

Process View Michael Porter of Harvard Business School describes a business in terms of the primary and support activities that are performed to create, deliver, and support a product or service. The primary activities are not limited to specific functions, but rather are cross‐functional processes (see Figure  I-5). For example, an accounts payable process

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FIGURE I-4 Hierarchical view of the firm.

cintro.indd 9 11/26/2015 7:38:30 PM
10 Introduction
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