Chapter 3: Organizational Information Systems and Their Impact

MULTIPLE CHOICE QUESTIONS

1. Which of the following has been a negative aspect of reengineering?

A. Low costs associated with purchase of integrated technology structure
B. Lengthy adoption by all employees
C. Significant company downsizing and layoffs
D. Easy communication across all functions of a business
E. Improved organizational responsiveness

Correct answer: C

2. Which of the following is correct regarding the characteristics of decision

making at the executive level of an organization?
A. It is concerned with high-level, long-term decisions
B. It is highly unstructured and often ad hoc
C. The objective is to predict future developments by evaluating trends
D. It is often supported by Executive Information Systems (EIS)
E. All of the above

Correct answer: E

3. We have defined “a system designed for the long-range planning and

decision making needs of senior managers as”
A. A TPS
B. A functional system
C. An EIS
D. A DSS
E. None of the above

Correct answer: C

4. We have defined “a system mainly concerned with automating recurring

activities and structuring day-to-day activities to ensure that they are
performed with speed and accuracy”:
A. A TPS
B. A functional system
C. An EIS
D. A DSS
E. None of the above

Correct answer: A
5. The book identifies different perspectives used to categorize organizational
information systems and technologies, which include all of the following
EXCEPT:
A. Hierarchical perspective
B. Transactional perspective
C. Functional perspective
D. Process perspective
E. None of the above

Correct answer: B

6. Which of the following are not one of the levels of an organization according
to the hierarchical perspective?
A. Strategic
B. Transactional
C. Managerial
D. Operational
E. None of the above

Correct answer: B

7. The notion of Business Process Reengineering (BPR) to refers to:

A. A large, integrated software application designed to integrate
old legacy systems
B. A business process enacted to create a data warehouse
C. The equivalent of paving the cow-paths
D. The fundamental rethinking and radical redesign of a
firm’s existing business processes
E. The way a firm does business

Correct answer: D

8. Atomicity is best associated with which of the following organizational

levels?
A. Strategic
B. Transactional
C. Managerial
D. Operational
E. None of the above

Correct answer: D

9. Transaction logs are best associated with which of the following concepts?
A. Atomicity
B. Consistency
C. Isolation
 D. Durability
E. Exegency

Correct answer: D

10. In manufacturing, which level of management is generally concerned with

optimizing plant operations (e.g., inventory management, production
schedules, labor utilization, etc.)
A. Managerial Level
B. Supervisory Level
C. Executive Level
D. Transaction Processing
E. Strategic

Correct answer: A

11. Which level of an organization has a long-range focus?

A. Managerial Level
B. Supervisory Level
C. Executive Level
D. Transaction Processing
E. Strategic

Correct answer: C

12. Which type of information system uses highly aggregated data and scenario
analyses?
A. Management Information Systems
B. Transaction Processing Systems
C. Executive Information Systems
D. Decision Support Systems
E. Supply Chain Integration Systems

Correct answer: C

13. Which type of the following is not typically categorized as one of the five
primary organizational functions?
A. Marketing
B. Environmental Protection
C. Human Resources
D. Finance
E. Accounting

Correct answer: B
14. Which type of perspective is focused on breaking down organizational silos
and optimizing efficiency among all organizational levels and activities?
A. Organizational
B. Functional
C. Managerial
D. Process
E. Profit

Correct answer: D

15. Enterprise systems are built around which concept?

A. Atomization
B. Durability
C. Consistency
D. Isolation
E. Integration

Correct answer: E

16. Knowledge Management involves all except which of the following with
regard to knowledge EXCEPT which one?
A. Creation
B. Codification
C. Gathering
D. Disseminating
E. Using

Correct answer: E

17. Which of the following is not a characteristic of a data warehouse?

A. Large size
B. Large scope
C. Uses a single input source
D. Enables data integration
E. Supports analytics

Correct answer: C

18. A user-driven tool used to selectively extract and view data from analytical
databases is called what?
A. OLAP
B. Data Mining
C. Transaction Processing System
D. CRM
E. SOA
 Correct answer: A

TRUE/FALSE QUESTIONS

1. Integration helps a company decrease redundancy and inefficiency.

Answer: True

2. Enterprise systems are rarely modular in nature. That is, all organization
functionalities must be installed simultaneously in order to be effective.

Answer: False

3. Knowledge management involves creating, codifying, gathering, and

disseminating knowledge within an organization, in a way similar to
managing purchased assets (such as land, money, etc.)

Answer: True

4. Business Intelligence has to do with the ability of a particular manager with

regard to managing his assigned business responsibilities.

Answer: False

5. A data warehouse is a subset of a data mart.

Answer: False

SHORT ANSWER QUESTIONS

1. What are the three levels in the hierarchical organizational perspective?

Answer: Strategic, Tactical, and Operational

2. What are the drawbacks of the functional and hierarchical perspectives?

Answer: A) A lack integration of the different processes within an organization,

and B) a redundancy and inefficiency as the same processes have to be done in
several departments with different systems.

3. How does the process perspective help solve the problems associated with
the hierarchical and functional perspectives?

Answer: The process perspective focuses on end-to-end processes thus helping

achieve integration and coordination.
4. Why do organizations seek to integrate?

Answer: The overarching goal of integration, in any of its forms, is to organize,

streamline and simplify a process or an application. Alternatively, the firm’s
integration effort seeks to modify processes, applications, or assets so that they
better represent the realities of the organization and are more closely aligned with
the current business objectives and strategic orientation of the firm.

5. What is the difference between Business and Systems integration?

Answer: Business integration refers to unification or the creation of tight linkages

amongst the diverse, but connected, business activities carried out by individuals,
groups, and departments within an organization. The outcome of business
integration is the introduction of cohesive, streamlined business processes that
encompass previously separate activities. System integration, on the other hand,
is the unification or tight linkage of IT-enabled information systems and
databases. The outcome of system integration is a collection of compatible
systems that regularly exchange information, or the development of integrated
applications that replace the former discrete ones.

6. Explain the Information Systems Cycle

Answer: A) Data is produced as a byproduct of daily operations and transactions

the firm completes as it handles the present. B) Such organizational data, when it
is not disposed of, can be accumulated in data repositories and creates a record of
past transactions. C) Using analytical tools, the firm can then make sense of the
accumulated data to find patterns, test assumptions, and more generally enable
decision-making in an effort to better prepare for the future.

7. What is the role of modern Information Technology in Business Process

Reengineering (BPR)? In your explanation show your understanding of BPR
and be sure to explain why BPR needs IT to be implemented.

Answer: Business process reengineering is a methodology designed to enable the

firm to achieve internal business integration through process redesign, and for
seeking dramatic performance improvement through elimination of duplication of
efforts. Since business processes are cross-functional, BPR seeks to break down
the organizational silos traditionally associated with the functional perspective.
Modern Information Technology is the catalyst for BPR as it enables the firm to
question old assumptions underpinning old processes and to radically redesign
them in order to achieve dramatic improvement in performance.

8. When introducing the notion of Business Process Reengineering (BPR)

Michael Hammer said: “It is time to stop paving the cow paths.” Explain what
Dr. Hammer meant by such a statement. In your explanation show your
understanding of BPR
 Answer: Business process reengineering is a methodology designed to enable the
firm to achieve internal business integration through process redesign, and for
seeking dramatic performance improvement through elimination of duplication of
efforts. Since business processes are cross-functional, BPR seeks to break down
the organizational silos traditionally associated with the functional perspective.
Modern Information Technology is the catalyst for BPR as it enables the firm to
question old assumptions underpinning old processes and to radically redesign
them in order to achieve dramatic improvement in performance. Thus the firms
should not simply automate old and obsolete processes – akin to paving cow paths
– but instead redesign them using the power of modern IT.

ESSAY QUESTIONS

1. What are the defining characteristics of transaction processing systems,

management information systems, and executive information systems.
Additionally, how are they different?

Answers will vary

2. What is meant by the term, “Best of Breed” as it relates to integration?

Answers will vary

3. What is the difference between explicit and tacit knowledge, and how are
they managed differently?

Answers will vary