[Week 2 > Introduction]

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1 [Week 2 > Introduction] This is the Week 2 Podcast for the course, Organizational and Social Dimensions of Information Systems. This week is about the effects of organizational diversity on information systems (IS) innovation. The effects of organizational diversity on information systems (IS) innovation, particularly with respect to globalization are important issues to be considered. Recent work on the sociology of IS in an organizational setting suggests that rationality whether technical, economic, or scientific occupies a privileged position in an organization (Avgerou, 2002). According to critical perspectives, there are, indeed, multiple forms of rationality, and no single person should be naturally privileged. This week, you will learn that there is great variability among organizations, even among those in the same industry. This will ultimately help you see beyond similarities in organizations in which you have worked, and you will be able to bring out the diversity among them by gaining insight into the forces that help shape IS innovation. By the end of this week, you will be able to: Explain the critical theory Describe the critique of rationality in organizations Describe the various theories to understand the logic used by organizations to justify implementing IS Describe the emergence of globalization and its effects on IS innovation [Week 2 > Weekly Overview] Let s look at this week s overview. This week, we continue our exploration of theoretical perspectives that can help an IS professional determine the social forces that affect the success of an IS implementation. We then look at the dynamics and characteristics of globalization, which affects traditional social institutions such as business, government, and culture. Modern organizations have a great amount of diversity because of perspectives on alternative rationalities and transnational informational and cultural flows of globalization. -1-

2 The text argues that rationality is historically and socially contingent and that it is rooted in the institutional structures of organizations and their processes. This rationality dictates organizational behavior along the lines of efficiency, managerial control, and profit. Importantly, IS innovation brings another form of rational behavior one that is founded on science and technology (in which rational choice is based on the belief in progress). Science and technology are leveraged to maximize efficiency and profit, and, therefore, the rationale for IS innovation becomes a technological imperative that states: We must innovate lest we be left behind. Read Chapter 3, titled Multiple Situated Rationalities, from the course text, Information Systems and Global Diversity, and view the video Critique of Rationality for a detailed discussion on the diversity issues with relationship to rationality. As part of the political process, a number of transnational organizations have been formed to pursue global economic liberalization, environmental protection, and individual human rights (Avgerou, 2002, pp ). As a result, treaties and the authority of multinational governing bodies have eroded the traditional autonomy and sovereignty of the nation state. In reaction, ethnic groups and regional communities have asserted their rights to self-governance and cultural identity. In fact, the struggle against the globalization of culture is the single most prominent outcome of globalization and is an underlying force for much of our current global strife. Ultimately, globalization has effectively diminished time and distance through the use of ICTs and other IS technologies. Consequently, the traditional notions of the sovereign state, cultural boundedness, and economic isolation have dissolved. The result is homogenization as well as an increased amount of diversity. In turn, this leads to a high degree of organizational diversity mirrored in the economic and cultural diversity of our modern world. You will evaluate the impact of globalization in this week s second Discussion. In this week s Application, you will focus on the flows of culture from hegemonic nations to developing nations. Read Chapter 4, titled The Global, the Local, and the Disembedded, from the course text, Information Systems and Global Diversity, and view the video Globalization for a detailed discussion on the origins of diversity confronting IS innovation with the process of globalization as a backdrop. -2-

3 [Week 2 > Resources] Let s take a look at the resources you ll be using this week. During Week 2, you will use a variety of resources including selections from the course textbook and audio versions of key readings. The Weekly Schedule (a navigation link under Week 2) outlines the resources you will need to participate in the Discussions and complete the Application Assignment. This week, you will read Chapters 3 and 4 of Information Systems and Global Diversity. These chapters will help you understand the critiques of rationality in organizations and give you an overview of the effects of globalization on cultural and societal life. These chapters will also help you understand organizational diversity in the context of globalization. In addition, you will view two videos one on the critiques of rationalization and another on globalization processes. Recall from the Course Home Resources page how the media files are delivered in three formats. Be sure to subscribe to the weekly podcasts in itunes by clicking on the itunes icon in the Resources area. Outlook, Internet Explorer, Firefox, Safari, and other applications save lists of RSS Feeds to which you can subscribe. You can determine how you want to receive your RSS Feeds. Click on the buttons in the Resources area to get the weekly media files through itunes, the RSS feed, and the online classroom. Let s outline the individual resources that you will need for this week. [Week 2> Video 1] The weekly podcast video provides an introduction to the week's resources and assignments. -3-

4 [Week 2 > Reading 1] Chapter 3 focuses on the rationalist perspective on organizations and how critical theories are used to critique this perspective. The author further argues that rationality is a cognitive state devised from the social and historical contexts of an organization. Max Weber identified a number of rationalities in the context of social collectivities. For the purpose of this week s activities, we will focus on two forms of rationality: formal rationality and substantive rationality. In business organizations, formal rationality, also referred to as instrumental rationality, is regarded as the operational logic in decision making the maximization of efficiency and profit. Alternatively, substantive rationality comes in line with society s values and as such does not necessarily coincide with the goals of efficiency and profit. In short, substantive rationality states that there are some things more important than money and efficiency. Please read the entire chapter to prepare for this week s assignments. [Week 2 > Reading 2] Chapter 4 presents information on the institutional changes known as globalization and the related social and economic processes across the globe. The chapter also examines how the historically developed diversity in organizing regimes under which IS innovations unfold is affected by the trends of globalization. Various trends comprising globalization namely, increasing international economic activity apply pressures that diminish the power of a nation or state and increase cultural flows. In the economic arena, globalization is manifested through increases in cross-border trade and capital flows, production chains, and transfer of labor and professional expertise. The organization form that best represents the cross-national flows of a global economy is the multinational corporation (MNC). An MNC is a firm with multiple components dispersed across a number of countries. Consistent with the perspective that situated histories and cultures influence the social relations in organizations, an MNC is not monolithic, and there is a great deal of diversity within global organizations even as they are a homogenizing force in the world. More important, much of the political reorganization in developing nations has been undertaken so that they may be able to enter the global economy. -4-

5 Please read the entire chapter to prepare for this week s assignments. [Week 2 > Video 2] This video illustrates the core concepts and critiques of rationality in organizations. [Week 2> Video 3]] This video describes the various economic, political, and cultural globalization processes. [Week 2 > Discussion 1] This week you will participate in two Discussions. The first Discussion is based on IS innovation and rationality. Here is the prompt. Universalist rationality theory assumes that actors within an institution are rational. They function with their own material interests in mind, maximizing efficiency and resources. It is believed that IS innovation itself is subject to rationality. Yet, many have criticized this notion. Discuss the validity of these critiques from your perspective. From your experience, how do organizations behave and why? Follow the directions in the online classroom to participate in this Discussion. You will need access to an Internet-enabled computer to complete this assignment. [Week 2 > Discussion 2] This week you will also participate in a Discussion based on the impact of globalization. Here is the prompt. -5-

6 Describe ways in which globalization has changed business, politics, and culture. What future changes can you forecast? Explain why you regard these changes as neutral, good, or bad. Follow the directions in the online classroom to participate in this Discussion. You will need access to an Internet-enabled computer to complete this assignment. [Week 2 > Application] This week you will complete an Application Assignment. The topic is globalization. There is a host of sociological and cultural research that paints a robust picture of the effects of globalization on culture. This Application focuses on the flows of culture from hegemonic nations to developing nations. As a practitioner in this global environment, you should be familiar with these culture effects. Perform the following tasks: 1. Using newspapers, magazines, and the Internet, research cultural changes in Western countries due to globalization. Outline the cultural aspects of globalization from an anthropological perspective rather than a business perspective. 2. Explain how you think understanding culture helps in doing business in today s global economy. Cite resources to justify your response. You will write your response in an APA-style report. The body of the report should not exceed 5 pages in length. Follow the directions in the online classroom to complete the Application Assignment. Submit your assignment to the Dropbox in the online classroom by Day 7. You will need access to an Internet-enabled computer to complete this assignment. -6-