5.3 Micro Level

Figure 5.1 The Technical Microeconomic Definition of Organization

	Setting the scene on the micro level entails considering the internal factors within the organization.
	These include the organizational culture, business processes and management decisions (see Figure 5.1).
	Organizational Culture

5.3 Micro Level

		Organizations are mini cultures in themselves in relation to the outside world individuals live in. A group of individuals gather together and form an organization. A unique culture is created within this organization.
		It is crucial that the overall culture of the organization is translated within the IS in place to symbolize what is culturally accepted for this organization. Staff issues and how they are dealt with is one example of a business culture.
		The way appraisals are carried out, the urge for staff to intermingle, social activities, etc. IS being a vital resource within the business entity should reflect these aspects at the micro level.

Business Processes

		Business processes (see Figure 5.2) have been discussed in Lecture 3 (Section 3.1) where it is highlighted that effectiveness, efficiency and internal control are the three main aspects in relation to IS in organizations.
		First and foremost, an organization should make sure that the IS being implemented helps carry out the required business activity – effective IS.

Efficiency is where IS allow the organization to minimize cost and resources, and maintain quality at the same time.

Internal control is about running a coherent business where all the different aspects of the business and connected and adhere to the business regulations and focused on achieving the business goals.

5.3 Micro Level

Figure 5.1 The Technical Microeconomic Definition of Organization

5.3 Micro Level

Management Decisions

		The ultimate goal of IS in organizations is to help management make more informed decisions. Management is faced with constant need to make decisions on the business on both operational and strategic levels.
		Decision making process is also linked to the organizational hierarchy. The increased use of IS in organizations results in less layers in the organizational structure.
		Less layers result in easier and simpler communication modes, and in more decisions being taken at each level.
		When the appropriate IS are applied in the organization they should make the decision making process less confusing and based on reliable facts and figures communicated through IS.