Behavior in Organizations 9th Edition by Abraham Shani,James Lau

Exercise 7

The Software Development Firm (SDF)
Local area networks (LANs) provide an ideal resource-sharing environment for organizational units that provide data of importance to a number of departments or work groups. SDF is a software development firm that underwent the transition from a stand-alone personal computer (PC) environment to a system of multiple interconnected LANs. Under the stand-alone environment, SDF personnel used PCs to support their work effort. Prior to creating a systemwide network, accounting used a Novell network within its area. The software development teams also used a Novell network, which did not communicate with the accounting network.
These units were not connected; each worker or group operated independently of other personnel. The various units completed work using the PC for word processing, database management, spreadsheet analysis, and general recordkeeping. As the organization grew, the need either to connect these units or to adopt a centralized system, such as a minicomputer or mainframe system, became apparent. Data were being reentered and duplicated, and inconsistencies existed between departments and between individual workers in the use of computer software, the levels of expertise, and the compatibility and quality of data. Production, marketing, and accounting were isolated islands of computing.
SDF produces utility software products for disk and file server management and backup systems for personal computers and microcomputer networks. At SDF, it was implied and expected that all in-house computer work should operate using state-of-the-art equipment and software. The company's switch to an interlinked, enterprisewide networked system was in response to advances in computer technology and corporate processing needs.
SDF is organized into six departments: two software engineering groups, accounting, sales, marketing, and administration. The two engineering groups are divided along product development lines. Several work groups were formed to support the work of more than one department. Technical support works directly with engineering groups as well as with the marketing department. International is a link-pin operation that combines both marketing and sales functions under a single work unit.
Every staff member has a personal computer on his or her desk. All of the machines are connected to a local area network, which in turn is linked to the other LANs within the enterprise. The network complex consists of four LANs, numerous shared printers, and a central database repository. A file server is a microcomputer dedicated to supporting the communication among the various personal computers. The majority of data and software are stored on disk units on the corporate database server. The PCs on the various networks all share and access these data concurrently. A print server is a PC to which a printer that can be shared is connected. Such units are not dedicated to printing; they can be used in the same way as any other PC on the network. Any user can send print work to various printer servers.
By using network software products, SDF was able to streamline all of its operations. E-mail reduced the overall time lag in phone/message tag. Voice mail was introduced to accommodate external communication; facsimile transmissions via and through the network eliminated delays in the traditional mail process. Groupware, appointment calendering, and scheduling software were introduced to allow individuals and departments to communicate and plan meetings and share their work electronically. Paper flow became an automated process as opposed to a manual process. Mailings, label generation, correspondence tracking, and surveillance were accomplished at the touch of a button. Software products that were being field tested could be monitored and tracked by the marketing staff from their offices. Coordination of effort in the development of the software products was enhanced through the sharing of software modules, which were available via groupware through the network file servers; this coordination ensured that all team members were using the same software and operating under the same standards. On a number of occasions engineering tested products internally, using the network and the support staff as a test environment. At times these internal tests created problems: work stoppages, inconsistent system performance, and system access malfunctions.
Within the support groups, the introduction of an integrated enterprise accounting system provided the mechanism to either reduce or streamline the paperwork regarding orders (for software products), requisitions for materials (e.g., sales brochures and promotions), and the delivery of merchandise to the wholesalers and dealers. Many standard manual tasks became automated.
For SDF, the introduction of an integrated network system changed not only the technology but also the entire mode of working relationships. There were both subtle and profound changes. Correspondence among workers (especially via e-mail, where privacy was ensured) allowed individuals to air out differences on issues and to share ideas. The frequency and duration of meetings, face-to-face discussions, written memos, and phone calls were reduced. The sharing of documents and in-process work reduced paper flow and errors. A new plans of communication was introduced. At the present time, there is no control over this level of communication between workers. At SDF, the electronic-desk facility for both the individual and the work group is being utilized on an increasing basis. Peer-to-peer communication (sending and receiving messages from/to other users without terminating the current task) on the workstation provided another communication facility. SDF also developed a product that allowed a user to initiate and terminate work remotely. With this facility a user could control work on multiple PCs from a single system.
With the introduction of the network at SDF, intergroup and interpersonal dependencies increased. Virtually every department and each individual's work activity relied on common/shared databases. Standards were introduced for personal software applications on the network. Many of the standard software decisions were based on network capabilities and software licensing considerations. Microsoft Office was designated as the company's suite of front-end support products.
Rather than having each manager use spreadsheets for budgeting and forecasting stored on their workstations, the controller established a template in the network version of Microsoft Excel. Each department used the same template for its budgets and forecasts, and the data were entered dynamically, that is, fed through the enterprise accounting system and other related modules. The various budgets and forecasts were consolidated so that senior management could, on demand, examine the status of the company.
A technical log system used by technical support provided a barometer of this area's activity. The log included a record of all customer inquiries and complaints and the technical nature of these problems. This system was tied directly to the registered user database. The registered user database was compiled from product registration cards. When a customer called, the help-line technician could verify that the caller was a registered user and could update the user database. The technician could also view a history of all previous communications with the customer. These data formed the nucleus for marketing, sales, and engineering support and enhancements. Figures on customer profiles, the nature of sales, noted problems, and any suggestions associated with products could be directed to and shared by various work groups.
With the introduction of the enterprise network, not only was there a redesign of work among the various organizational units at SDF, but also specific tasks were changed. Many manual or semiautomated tasks were computerized, as were stand-alone PC tasks. Instead of being entered on a log sheet, the basic information from technical support calls was entered into the technical log database.
Prior to the introduction of the enterprise network, each department constructed its own budgets and forecasts using whatever tool was appropriate (e.g., spreadsheets or handwritten notes). Some units were using Lotus and Foxbase for analysis and data storage. The move to the network and the use of standard software packages (e.g., Excel for spreadsheet analysis) facilitated uniform, consistent budgeting and forecasting. Accountability and budget tracking were available to the department managers, the accounting department, and senior management.
As a result of the implementation of the LAN, the clear lines of responsibility and use of information have become blurred. There have been conflicts regarding the content, entry, and recording of information. Before the enterprise network, all sales orders were handled by accounting, requisitions for materials were handled by production, and information requests were handled by marketing. Now any worker who has proper authority can initiate these entries from anywhere within the networks.
Before the networks were implemented, the accounting system consisted of accounts receivable, accounts payable, and general ledger software packages, operating on a LAN within the accounting department. Each package was fairly distinct, but data were imported and exported in a common form. The software packages closely followed the work of the various accounting staff members. Sales orders were written manually, and entries were made by the accounts receivable clerk. Payroll was performed by an outside service.
After the integrated system of networks was implemented, the accounting system became totally integrated with other parts of the firm. An enterprise accounting package that provided inventory control, accounts receivable and payable, payroll, general ledger, project management, bank book management, general ledger, fixed assets, and spreadsheet interfacing was selected and placed on the network. Other modules for sales and production were also acquired as part of this system. This package became the foundation for the enterprise. Virtually all departments became involved in the entry, inquiry, reporting, and use of accounting information. Many issues relating to privacy, control, credit, accountability, and responsibility arose.
Because anyone could potentially initiate a sales order, some form of control over credit approval had to be established. Previously, accounting maintained tight control over the authorization of credit. Now, the credit process within accounting became one of handling exceptions. The access and use of sales and other accounting data were no longer the sole province of accounting. Regulation of materials such as computer or office equipment, software, and supplies affected the way the departments had done business. Previously a department had been able to acquire any needed equipment that it wanted as long as the cost was within its budget.
Even though the network system provided for the integration of inventory with the accounting system, the production department has been slow to participate in the integration. There was a separate physical facility for storage and production of inventory when the network was installed. Because of this physical separation, the production area did not use the integrated accounting system, even though it had access to the network system. Overall, there was similar resistance on the part of experienced users to adopt the standard software packages. Many users opted to stick with their favorite spreadsheet (e.g., Lotus) and word processor (e.g., WordPerfect).
What effect would the introduction of the integrated LANs have on planning and control processes? On work design? On creativity and innovation?