Otd Case Study


FAISAL QURESHI DAY OF CLASS: FRIDAY/SUNDAY Q1) Describe Mrs. Field’s cookies in terms of its complexity, formalization and centralization. Complexity: Complexity refers to the degree of differentiation that exists within an organization. The three factors that affect complexity are horizontal, vertical, and spatial differentiation.An increase in any one of these three factors will increase an organizations complexity.

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As Mrs. Field’s cookies is a simple product business and she is having 500 stores in 37 states. This chain is spatially differentiated widely but it’s not complex enough in terms of vertical or horizontal differentiation. Management information system actually controls, instructs, guides, directs decisions and gives support of every activity taking place in this organization. MIS makes this organization less low in complexity.MIS gives support of every activity starts from production to sales, so it is highly formalized as every activity guided by system.

As the job is to make cookies, so this need skilled workers but they have very fresh and energetic workers who have less knowledge of this business. The workers are trained on jobs and there actions are directed by system. Management of this organization is tightly controlled by owners with flat structure to store managers and instant access to system which actually directs every action of employees.This makes it highly centralized environment. So, by concluding we can say that Complexity is inversely proportional to formalization and centralization within this organization. Q2) Do management information systems, such as the one at Mrs.

Field’s, alter the conclusion that large size leads to increased vertical differentiation, formalization and decentralization? Discuss. Yes, Management Information systems such as the one at Mrs. Field’s do alter the conclusion that large size leads to increase vertical differentiation.Because this organization is widely dispersed & having almost 4500 employees but it is not complex. Management Information System actually makes it fewer complexes because they don’t require many functions like Human Resource, Finance, etc which increases horizontal differentiation and they do not require many managers at different levels.

These all activities are controlled, managed and coordinate by this Management Information System.It also directs instructions for production, sales forecast, scheduling, performance measures and other activities which make it more formalized. The owners of the company Randy have instant access to system so that they can direct decisions and instructions with the help of the data, so it makes centralized. Q3) Are computerized information systems parts of an organization’s technology? Explain. Organization technology is basically the tools, techniques and actions that are used transform the organization’s inputs into outputs.computer information systems are playing the key role and are responsible for making the organization’s decisions and provide valuable information to mangers they have no link with the production process. Since the individual store computer are linked to Park City, which enable Randy to access to how things are going it clearly shows that information systems are part of an organization technology. Systems like the one use by Mrs. Field’s are definitely the part of organization’s technology. It is the state of the art technology use by the company.

This comes out as the core competency of this organization. This Management Information System is not only using to computerize activities but it is actually adding value to the organization and managing the operations efficiently and effectively. Q4) This system leads to better store-level decisions. “Do you agree or disagree” Support your position. To a certain extent I would say yes, this MIS certainly leads to better decisions at all levels.

It actually doesn’t require store managers or employees at store to take decisions which they will account for.It provides ease to store managers, to employees who involve in production, sales people ; maintenance workers thus everyone at store level working as employee. It provides complete assistance to take decisions and these decisions are calculated. They use it for sales forecast, for dough mixing, for scheduling of peak times, for amount of ingredients use, performance measures of employees and it also gives the assistance regarding problem occurrence. Q5) What negative store-level repercussion might result from this system?Performance appraisals are not entertained, motivational factor is affected as everything is computerized, innovation of new ideas is lessened, humans are treated as machines, if system crashes whole organization suffers, and career development is discouraged.

Q6) Explain the potential impact of computerized information systems from the power-control perspective? This MIS has many potential impacts in term of power-control. As this system is at instant access of owner, so they can easily have tighter control over their management.This MIS monitors each and every activity performs by the employees and maintains its record with transparency. Employees can’t cheat system, it reduces layers of manager so it creates flat structure which is easy to manage, control and coordinate. All the employees coordinate and control by owners easily with the help of this system. The owner has the only power to amend or change instructions of system; on the other hand all the employees are liable and bound to follow the instructions of the system.

So, it maintains the power of top management and control at the same time without increasing complexity.