Achieving Efficiency and Effectiveness through Systems

This chapter discusses the four components of information systems and the role information technology plays in business. Read it to gain a basic understanding of these two critical topics, then attempt the two case studies and answer the questions that accompany each case.

People

The people component of an information system encompasses all those individuals who are directly involved with the system. These people include the managers who define the goals of the system, and the users. In the opening example concerning the automated payroll system, the people component of the system includes the human resources director who wants to enhance an efficient and effective payroll process, the human resources staff who maintain the correct employee account information, and the employees whose salaries will be deposited directly into their account. An analysis of the opening example clearly shows that problems with the people component were partly to blame.

The critical insight here is that the individuals involved in the information system come to it with a set of skills, attitudes, interests, biases, and personal traits that need to be taken into account when the organization designs the information system. Very often, an information system fails because the users do not have enough skills, or have a negative attitude toward the system. Therefore, there should be enough training and time for users to get used to the new system.

For example, when implementing the automated payroll system, training on how to enter employees' account information, how to correct wrong entries, and how to deposit the salaries into each account should be provided to the human resources staff. The benefits of the system should be communicated to both the human resources staff and the employees in order to build up positive attitudes towards the new system.