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ChaPter 2 • underStanding and modeling organizational SyStemS 41

COnsUlting OppORtUnity 2.3

Pyramid Power

“We really look up to you,” says Paul LeGon. As a systems marketing, so that we could share newly computerized inven-
analyst, you have been invited to help Pyramid, Inc., a small, inde- tory and sales figures across the organization. They claimed
pendent book-publishing firm that specializes in paperback books that committees such as that would cut down on needless
outside the publishing mainstream. duplication of output, and each functional area would be better
Paul continues, “We deal with what some folks think are fringe integrated with all the rest.”
topics. You know, pyramid power, end-of-the-world prophecies, Paul picks up the story, saying, “It was fair—oh, for a
and healthier living by thinking of the color pink. Sometimes when while—and the employees shared information, but the rea-
people see our books, they just shake their heads and say, ‘Tut— son you’re here is that the employees said they didn’t
uncommon topic.’ But we’re not slaves to any particular philoso- have time for committee meetings and were uncomfort-
phy, and we’ve been very successful. So much so that because I’m able sharing information with people from other depart-
24, people call me the ‘boy king.’” Paul pauses to decipher your ments who were further up the ladder than they were here
reaction. at Pyramid.”
Paul continues, “I’m at the top as president, and functional According to Paul and Ceil, what were the effects of
areas such as editorial, accounting, production, and marketing are installing a management information system at Pyramid,
under me.” Inc., that required people to share information in ways that
Paul’s assistant, Ceil Toom, who has been listening quietly up were not consistent with their structure? Propose some gen-
to now, barges in with her comments: “The last systems experts eral ways to resolve this problem so that Pyramid employ-
that did a project for us recommended the creation of liaison ees can still obtain the sales and inventory figures they
committees of employees between accounting, production, and need.

Implications for Information Systems Development
Each of the three management levels has different implications for developing information sys-
tems. Some of the information requirements for managers are clear-cut, whereas others are fuzzy
and overlapping.
Operations managers need internal information that is of a repetitive, low-level nature. They
are highly dependent on information that captures current performance, and they are large users
of online, real-time information resources. The need of operations managers for past perfor-
mance information and periodic information is only moderate. They have little use for external
information that allows future projections.
On the next management level, middle managers are in need of both short- and longer-
term information. Due to the troubleshooting nature of their jobs, middle managers experience
extremely high needs for information in real time. To control properly, they also need current
information on performance as measured against set standards. Middle managers are highly
dependent on internal information. In contrast to operations managers, they have a high need for
historical information, along with information that allows for the prediction of future events and
simulation of numerous possible scenarios.
Strategic managers differ somewhat from both middle and operations managers in their
information requirements. They are highly dependent on information from external sources that
supply news of market trends and the strategies of competing corporations. Because the task of
managing strategically demands projections into the uncertain future, strategic managers have a
high need for information of a predictive nature and information that allows creation of many
different what-if scenarios. Strategic managers also exhibit strong needs for periodically reported
information as they seek to adapt to fast-moving changes.

Organizational Culture
Organizational culture is an established area of research that has grown remarkably in the past
decades. Just as it is appropriate to think of organizations as including many technologies, it is
similarly appropriate to see them as hosts to multiple, often competing subcultures.