Module 10: Human side of IS management

Overview
This final module turns to the human side of managing IS. By now you know the extent to which
information systems influence people and the extent to which people influence information systems. The
course concludes by focusing on some of the key people management issues associated with information
systems.
This material will enhance your competence to manage change in the organization caused by internal and
external factors, anticipate and meet the needs and expectations of internal and external stakeholders,
lead and empower individuals and teams to achieve the organizations goals and objectives, all the while
protecting the public interest.
10.1 Managing internal and external resources
10.2 Change management
10.3 End-user computing and training issues
10.4 Managing expectations
10.5 Social responsibility
Module summary
Print this module
10.1 Managing internal and external resources
Learning objective
Assess the challenges in managing external partners, and describe the critical skills and activities
managers must master to successfully manage internal and external resources. (Level 1)
Required reading
Chapter 3, Section 3.2, How Information Systems Impact Organizations and Business Firms
ERH, Unit B7, "The principal-agent problem" (read both the introduction and the accompanying
article)

(For all ethics-related readings in this course, it is assumed you are already familiar with Section A
and Units C1, C2, C3, C4, C5, and C10 of Section C of the Ethics Readings Handbook. ERH
readings are provided electronically under Resources.)
Module Scenario: Change Will Do You Good
Last month, after some discussion in your department, you decided to change how overtime is
compensated. For several months, you have been getting notifications from Human Resources and
Accounting that your departmental overtime hours dramatically exceed your budget numbers. Youd
better get these under control, controller Jill Waters told you, or you will have to answer to them in our
quarterly update. And Corporate will be here for that.
Look, you said to your staff, Ive been going over our OT numbers and we have too many people
working on the same off-hour calls. The idea was that one person carries the pager, and we rotate on a
weekly basis. Every call cant be a critical call. You evaluate the severity, and deal with each call on the
spot. Most calls should be able to wait until morning, when the regular staff comes in. This treating every
call as severe and including three or more people in the solution has got to stop. I will stop paying for it
starting today.
It has stopped. And its gotten worse at the same time. Now it has reached the point where department
managers are calling you at night, unhappy with their IT support. You realize that when you asked your
staff for their support, everyone nodded, but no one looked up at you. Individually you have asked some
of your senior staff what is going on, but they are reluctant to say anything. Now, all calls are simply
being lined up for morning staff to handle.
Look, you say to your staff, I think I made a mistake. I think I made a compensation change without
first listening to why we are having problems. Can someone please fill me in so that we can come to a
decision that is fair and workable? Im listening, you say, as you unfold your arms and calmly place them
on the boardroom table.
LEVEL 1
The reality of information systems management today is that the resources used to construct systems are
rarely all under the direct control of the organization. Resources are global, owned or leased, virtual,
required on an as-needed basis, or fluid between companies in a supply chain. For example
Software applications are increasingly purchased from outside vendors, or subscribed to online,
and this limits managements direct control over application functionality.
Hardware has always been purchased externally, which requires working with hardware vendors to
identify appropriate technologies, linking them with existing technologies, and resolving problems
when they occur. However, hardware is also being evaluated as an on-demand requirement,
sourced and offered in the cloud.
Most telecommunications networks depend on the bandwidth provided by public network providers
(telephone companies, cable companies, and so on).
Consultants are routinely employed to help with IS strategic planning, systems integration, and
systems security.
Data often come from sources outside the firm (for example, customer or market data may be
purchased from commercial providers). With the trend toward big data analytics, this will only get
more pronounced.
Supply chain partners often build systems to be accessed by many players along the chain. The
more complex the transactions, the more integrated systems and security procedures are required.
Excess processing services like Edge or cloud computing are purchased on an as needed basis
from external companies.
Commonality of systems leads to great benefits, as explained in Module 6. But developing the needed
level of integration also means that some compromises on how a system functions may be necessary.
How much you need to compromise depends on how much power and influence you can exert, and the
extent of your budget. The examples listed above point to the need for managers to exercise influence
over processes and people that they do not directly control. This is not easy to do. Having more
stakeholders reduces the scope of freedom for any individual player. Managers have the responsibility to
control how information systems are used in an organization, but they lack complete authority for
implementing many of the actions that they would ideally choose.
Critical skills for managers
To successfully manage the combination of external and internal resources of an information system, a
number of critical skills are necessary:
building and managing business relationships
managing change
communicating
analyzing and problem solving
understanding technology and its interactions
Relationship management skills
Relationship management is central to managing external and internal resources. You maintain external
relationships with suppliers, customers, sometimes competitors, and the product and service companies
that supply IT resources. Internal relationships are maintained between IS and senior management, and
between IS and the different business units.
Trust is central to managing relationships. Trust is about treating people fairly not equally, because
that is not always the best answer, but fair usually is. Relationships not built on trust are difficult to
manage because they require inordinate supervision of partners to ensure that they are not taking
advantage, and are performing the functions in the way they have been contracted. Customers do not
want to do business with vendors they do not trust because they feel they will not get good value from
their dealings. When business unit managers do not trust the IS group (perhaps because of past failures
or personality conflicts), they will try to avoid dealing with IS. They will look to outsource the function or
to provide services in another way. They are unlikely to be proactive players in a healthy partnership.
This is an important area in which good ethics (particularly treating people fairly and respectfully)
contributes to good business through lower transaction costs.
Trust is important in business and other relations because the alternatives to trust (foreknowledge and
control) are difficult to achieve and costly. For example, think of the legal and surveillance costs of
writing and enforcing an iron-clad contract. Moreover, distrust is likely to breed distrust, which adds
more costs. The end result can be a situation the philosopher Thomas Hobbes described as the state of
nature a war of each against all (see ERH Unit A4). This doesnt mean that trust is always
warranted, or that legal and other safeguards in business relations are unimportant. These safeguards
are reasonable things. It is also important to check references and avoid, as far as possible, those who
have poor ethical reputations. However, the most crucial thing you can do to establish trust is to be
trustworthy yourself.
How do you form relationships based on trust? When you make a promise, you deliver on it. You start
slowly, you do everything you can to align your goals, you communicate extensively about those goals
and the processes you are undertaking, you dont walk away at the first sign of trouble, and you allow
trust to develop as success unfolds. When things go wrong it is important to be as up front and candid as
possible. Own your mistakes just as you own your successes. This sounds idealistic, and in some ways it
is, but it recognizes that you cannot put in place a simple system that will automatically create trust.
For example, websites cannot create instant trust by putting a third-party seal of approval on their site,
even though trust can be built through transfer from a trusted other. For one thing, customers know that
such seals of approval are not all equally meaningful. There may not be much trust to transfer. Moreover,
the behaviour of the company in transactions with the customer will have a much greater influence on
the customers level of trust than any icon on a website. In other words, acting in a trustworthy way is
likely to generate customer trust.
Change management skills
Skills in change management are also essential for managers because the introduction of technology is so
often a driver of organizational change. In Module 1, you learned that technology, people, and data are
connected by work practices created to achieve organizational goals. A change in technology usually
requires people to change their work practices. For example, introducing a new customer ordering
system will require order takers to learn and use new procedures to do their work. And introducing a new
security regime will require employees to alter some of their day-to-day behaviours.
Change management includes multiple processes; from rational or logical processes that assume once
you have explained the reason for a system everyone will buy in, to political, social, and even coercive
processes that use social influence and power to drive change. Change management is covered in Topic
10.2.
Communication skills
Communication skills are essential to developing and maintaining relationships and influencing others in
change management. The ability to articulate a compelling vision for what an information system will do,
how it will change the organization, and how people need to involve themselves to make it work, is
central to a successful systems implementation. The ability to explain your position while in a conflict with
a vendor, and to understand the vendors position is a first step in being able to resolve the conflict. For
almost every process described in this module (and many others), communication is essential.
Analysis and problem-solving skills
Inevitably, there will be times when problems arise. As a manager, you need to recognize when
something is not going well and be able to analyze the situation, identify the problem(s), and formulate
an appropriate solution. You need to be able to go beyond suggesting simple fixes and look to broader
cause and effect relationships. A significant component of developing your analysis skills is being open-
minded and creative. Good problem-solving skills are associated with being well-organized and systematic
in your approach to the problem. It involves seeing that decision making is a process and not an event,
and that there are different methods to decision making depending on the problem. Some of these
methods include understanding cognitive biases, framing decisions, recognizing patterns and reasoning
by analogy.
Technical skills
Managing internal and external relationships requires a sufficient understanding of IS technology to be a
smart buyer. While the specialists will always know more than you on some topics, if you are going to
influence them, you must have at least a general notion of what is possible and not possible, and what is
easy and difficult. These skills will give you more confidence to push when needed, and partners will take
you more seriously. Speaking the language of information-systems professionals is one thing, but using it
correctly and confidently is another. Its also another way to build trust.
10.2 Change management
Learning objectives
Assess the importance of change management to the development and implementation of
information systems. (Level 1)
Identify issues of change management in projects using the Lewin-Schein and Leonard-Barton
models of change. (Level 1)
Assess why people resist change and interpret how resistance to change is manifested. (Level 1)
Evaluate the critical elements required to successfully manage change and reduce resistance.
(Level 1)
Required reading
Review Chapter 9, Section 9.1, Systems as Planned Organizational Change
Review Chapter 10, Section 10.5, Managing Project Risk (subsection on Change Management and
the Concept of Implementation)
LEVEL 1
Implementing new information systems, whether they are brand new technological solutions or
modifications of existing solutions, requires significant change on the part of people. The work practices
of people will change as the technology and data in the system are changed. The text reviews the kinds
of organizational changes associated with information systems. Processes are reengineered,
organizational structures are modified, working relationships are altered, and skills requirements of
individuals are changed.
Because of the impact of IS on people in organizations and the importance of change management and
people management to the success of IS projects, this topic focuses on the following three issues:
IS-driven organizational change
the resistance to change that is often encountered
the common activities that make up change management initiatives
Importance of change management
The importance of change management cannot be overstressed. Successful information systems projects
are those where change management is given priority and conducted well. Change management
techniques help to ensure that all stakeholders understand the project and its aims, understand their role
in the project, and accept the value of the project to the organization. Without effective change
management, stakeholders may resist the change deliberately or they may act in ways that are counter
to the desired change through lack of understanding or awareness.
Examples 10.2-1 and 10.2-2 illustrate a failed systems change and a successful systems change,
respectively. Although these examples are over 10 years old, their impact is still felt, and unfortunately
still experienced. Further examples of failed ERP projects are Waste Management in 2010, Mountain
States Entertainment in 2008,and Marin County in 2004.
Example 10.2-1: A failed systems change
When Rich-Con Steel introduced a new MRP system in the late 1990s, and did not plan adequately for
the amount of change that would be required of its older and not very computer literate workforce, the
company experienced massive problems. Users circumvented the system, either because they did not
know any better or because they did not like the new system. Chaos in the plant resulted. Eventually,
Rich-Con Steel went out of business. The company president linked the failure of the business to its
inability to get the system up and running.
Source: A. McAfee, Rich-Con Steel, Harvard Business School Case 9-699-133, HBS Press (January 27,
1999).
Example 10.2-2: A successful systems change
The government of Singapore introduced a system to link trade processing activities among all of the
involved organizations a mammoth project with much higher risk overall, in comparison to the Rich-
Con Steel example. The governments careful attention to change management including training and
education, establishing trust among the stakeholders, and providing multiple means of access to remove
any barriers resulted in a hugely successful system. It was on time, and on budget, and it surpassed
its first year usage targets easily.
Source: B. Konsynski and J.L. King, Singapore Tradenet: A Tale of One City, Harvard Business School
Case 9-191-009, HBS Press (1990).
The change process
Lewin-Schein model
One of the most common models of organizational change is the Lewin-Schein model. It describes a
three-stage process, beginning with unfreezing (an unproductive platform or method of performing),
moving (teaching and training employees the benefits of the new method), and then refreezing (when
the organization is showing stability with the changes) the organizational system. This model is depicted
graphically in Exhibit 10.2-1.
Exhibit 10.2-1:

This model has been around for a long time. It is a useful tool for understanding the different stages of
change that must be attended to, and the kinds of problems that can trip up a systems project. But it has
limitations.
One problem with the model is that it implicitly assumes that periods of change are unusual, while
periods of stability are the norm. You would begin in a period of stability where you need to unfreeze the
structure, that is, get people ready to think about changing their well-entrenched behaviours. Then you
move to a new position and refreeze the new behaviours, making them stable again. While stability as
the norm may have been the case in the 1950s, when the model was first articulated, it does not
characterize the current business climate very well. Change, flexibility, and agility are all requirements of
business systems today and are more the norm than a stable unchanging system.
A second limitation of the model is that it assumes the technology is given and unchangeable and that it
is people who adjust to the technology. This is not always correct. Users can often modify technology to
suit their individual needs and processes, especially over the medium term.
There are many aspects of the model that are relevant, though. The idea that systems can fail because of
an inattention to convincing people of the need to do things differently (inherent in the unfreezing stage)
is true. The same can be said for the idea that behaviours may slip back into older, more comfortable
ways of doing things if steps arent taken to align incentives and structures with the desired new
behaviours, and if the changed method is not beneficial enough to the employees.
The Lewin-Schein model should not be dismissed as archaic, just interpreted and applied with caution. It
is one of several change models and should be evaluated as such.
Leonard-Barton model
Dorothy Leonard-Barton (1988) developed a model of IS implementation that captures the notion of
continuous change a little better.
Her model shows change as a continuing set of cycles of adaptation of the technology and the user,
trying to bring a greater alignment between the two. It is depicted graphically in Exhibit 10.2-2.
Exhibit 10.2-2:

This model addresses both limitations of the Lewin-Schein model. It shows a continuous process of
adaptation rather than stability, punctuated by periods of change. It also explicitly recognizes that both
the technology and the user environment will adapt during this process, and not just the user.
In the Leonard-Barton model, the cycles of adaptation may be large or small (no difference in the size is
shown in the exhibit). Within each cycle in the user environment, the notions of unfreezing, changing,
and refreezing may be very useful as a way of thinking about the challenges. In addition to these issues,
the connections to past and future adaptations and the possibility of adjusting the technology, rather
than the user (since the model suggests an equal adoption between technology and user), must also be
considered.
Resistance to change
The need for unfreezing, changing, and refreezing, or any other way of thinking about change
management, is based on the belief that some or all of the affected people will resist the intended
change. Why do people resist technological change? What makes them less than enthusiastic about new
ways of doing things? How is resistance to change manifested? What kinds of activities signal resistance
from prospective users? All these questions will be discussed.
Sources of resistance
Resistance to change has many possible sources. To the employee(s) resisting the change, the resistance
is purely rational. In his 2007 Harvard Business Review article Leading Change: Why Transformation
Efforts Fail, John P. Kotter notes that realizing change takes a long time to occur can improve the
chances of success.
Social inertia
Social inertia, or the tendency of people to continue with certain behaviours simply as a matter of habit,
is a critical source of resistance to change. Doing things in new ways is harder than doing them the way
they have always been done. A new way requires new thinking. Many of the things you do at work are
habits, and they are so well-ingrained that you dont even think about how they are done; they just
happen. When a new system is introduced, it changes those processes. Tasks take longer and require
more mental effort. As a result, people tend to resist change simply as a matter of habit or inertia.
Capability issues
At other times, resistance to change occurs because people question their ability to change. If people
believe that a new way of doing things will be beyond their capability and require skills they do not
possess, they are likely to resist. People are uncomfortable with situations that exceed their abilities.
They feel embarrassed and incompetent. No wonder they resist being in these situations. Of course, they
are unlikely to acknowledge this as the reason for their resistance. It often goes undiagnosed as a cause.
Change in the power structure
Information is most often a source of power in organizations. New information systems can alter access
to information influence power structures in organizations. Those who will lose power because of a new
information system may form the staunchest resistance toward a new system. No one wants to cede
power they have spent a long time cultivating. Systems that are expected to radically reshape power
relationships are among the most difficult to introduce successfully.
Value of change
Another reason for resistance to change, one that is often lost on system designers, is that the change is
not valuable or is viewed skeptically by the people it is supposed to help. This is the often-stated reason
for peoples resistance, though most system designers dismiss this reason and are likely to attribute
resistance to one of the previous factors. However, it is foolish to assume that just because a system has
been proposed and developed, it must be valuable. When faced with substantial resistance, reconsidering
the aims and functions of the system may well be worthwhile. It is not enough to sell change as an
organizational goal when the effect of the change is felt individually. The value must be felt by the person
expected to make the change for it to be successful.
Fairness issues
A factor not mentioned by Kotter is resistance to change because of perceived unfair treatment. There is
a source of resistance due to the sense of being treated unfairly. The unfairness may arise from past
experience (for example, the company lied about the effects of change in a previous reorganization; an
employee feels her expertise in IT is consistently ignored by the organization) or from the present
experience (for example, an employee is angry he was denied a well-deserved promotion, or denied an
opportunity to offer input into the current change measures). There may also be anticipation that the
organization has no real concern for its employees and is engaged in, for example, ruthless downsizing.
Forms of resistance
Once you are aware of the possible reasons for change resistance, the next step is to identify the forms
these resistances make take. Only then can they be dealt with.
Public debate
Public debate, during town-hall meetings, where individuals challenge the value of the system openly and
loudly, is the most obvious form of resistance. Because it is open, it is often the easiest form of resistance
to counter. Of course, its public nature also means that the resistor has an audience to convince people
of the negative viewpoint, and this can be dangerous from the perspective of those advocating change.
Benign neglect
Simply ignoring the problem and hoping it will go away, or benign neglect, can also be an effective form
of resistance to change. It may not work for everyone, but for people who have input into the system or
who control resources for the system, simply ignoring the process can hold things up considerably. This is
a very passive-aggressive form of resistance. It can be difficult to detect: Is the individual delaying
because they are busy with other things or because they are trying to resist what you are doing?
Resource diversions
For individuals in a position to control financial and other resources of the project, resource diversions are
a further means to scuttle an unwanted system. Refusing to commit money or staff time can stall the
entire systems development process. Similarly, inappropriate staffing, such as sending someone with
inadequate skills to work with a design team, can hurt the process and delay the system. Again, both of
these means are subtle. There is no overt statement that the individual is resisting. Perhaps resources
have been diverted to activities that are a more immediate priority, which is certainly what the individual
will tell you if you ask. Or perhaps they were unaware that the individual they sent to work with the
project team was lacking in certain project development skills. Because they are not systems specialists,
they may not know what skills are preferred.
Problem expansion
Problem expansion as a form of resistance to change involves tying up the aims of the system with other,
even larger goals, to the point where nothing can be accomplished because the problem is too broad. For
example, a new order-entry system may be challenged on the grounds that what really needs to be done
is a complete rethink of the customer strategy. To build a new system before the customer strategy is in
place is dangerous because the system may not support the new strategy. But as you probably know,
strategy formulation is a time-consuming, complex, and highly unstructured task that goes on forever in
many organizations. By expanding the problem to one of customer strategy, the individual has, in the
guise of being supportive, managed to make change virtually impossible.
Sabotage
The most extreme form of resistance is sabotage a deliberate and calculated attempt to ensure that
the new system cannot be successfully implemented. This may bring to mind images of employees
intentionally breaking hardware or corrupting data files, but sabotage can be subtler as well. Users may
give incorrect information to designers about how they do their job, or may not explain the errors in data
that will need to be cleaned up if the new system is to work. Sabotage is a risky form of resistance to the
individuals who use it. If exposed, their standing in the organization is at risk. Certainly, their credibility
will be questioned in the future, and more severe actions (such as termination of employment) are
possible. As a result, overt sabotage is uncommon. It tends to occur as a last resort, when people feel
they have nothing to lose, or if their concerns have not been listened to or addressed. If users are
engaged in sabotage, it likely means things have been going very badly for a long time, and they do not
feel included in the process.
Successful change management
Successful IS change management is an ongoing process that requires proactive planning to manage the
problems and reactive responses to the inevitable problems discussed. Three of the proactive elements
that are critical to any IS change project are communication, education and training, and championship.
Communication
User involvement in the change has been previously identified as a critical success factor for IS projects.
User involvement is important for several reasons, including user understanding of the system and its
needs. It is also important as part of change management. Keeping users informed and involved in what
is taking place helps to ease the transition. Convincing users of the benefits of the change (through
constant and consistent true communications using a variety of methods such as electronic postings,
Facebook pages, Twitter feeds, posters, and meetings) can counter resistance based on social inertia.
Resistance based on perceived inability to change and loss of power may also be countered through
communication, if the perceptions are incorrect.
Regular progress updates
In the earliest days of systems development, users were involved at the start of a systems project, during
requirements gathering, but often did not see or hear anything of the new system until it arrived in
completed form many months later. When this occurred, users felt disconnected from what was being
developed, which made them uncomfortable with the result. They lost interest in the system and its
possibilities, and became more entrenched in their current habits. If change takes too long, or progress/
status updates are infrequent, users may assume that IS has given up on them, resulting in a loss of
credibility for the project and its goals. Regular, truthful communication helps to address these risks.
Methods of communication
Various vehicles for communication can be used. For large projects, many organizations create
newsletters that are produced throughout the duration of the project and provide updates on progress,
provide explanations of the goals of the system, seek input, and celebrate successes as the system is
rolled out. Having regular meetings with users who are affected by the system, especially during critical
periods, is a good way for users to air their concerns and to get answers to lingering questions. Parties to
celebrate the big milestones (project kick-off, launch, completion) are also good ways to communicate
the importance of the system to users and other stakeholders.
Much of the communication strategy should take a marketing approach to the new system. If you
consider the system as a new product and the users as potential buyers, you can use marketing analysis
and marketing tools, including social media, to help persuade users to adopt the system. This wont
convince everyone, but you may be surprised at what a positive difference it can make.
Education and training
Education and training are related, but different. Education focuses more on the conceptual level of the
system (its key goals, functions, and expected performance) and the overall process. In large
reengineering projects, education also focuses on how peoples jobs will change and how operational
processes will differ.
Educating users in this way is essential to success. Research has shown that dissatisfaction is felt when a
result (new system) fails to live up to the expectations people had for it. No matter how good the system
is, if it does not live up to expectations (even if those expectations were unrealistic), people will be
dissatisfied. Helping stakeholders to set reasonable expectations is crucial to success of any change
project.
Training is much more system focused. It is aimed at people who will be users of the system, whereas
education may be aimed at a broader group of stakeholders than just the direct users. Training helps to
counter users fears that they may be incapable of changing or adapting to the new system, and provides
an additional means to counter the forces of social inertia and confidence. Training is more hands-on.
A significant amount of research has focused on how IS training can contribute to successful adoption.
Topic 10.5 presents the important lessons that have been learned about user training and learning.
Champion
Communication and training are focused more on the rational and logical processes of change
management. They both assume (to a degree at least) that once users learn about the new system and
its advantages, they will willingly adopt it. This is not always so, because it ignores the social and political
aspects of systems-driven change.
For example, suppose users learn during training that some of the features of the new system will result
in information that they previously controlled being much more widely accessible. While this may be good
for the organization as a whole, individual users may find their power eroded by the loss of their
information gatekeeper role. These users may actually develop more resistance to change following
training, rather than less.
Champions are individuals who actively and enthusiastically promote the progress of an innovation
through its critical stages. The best champions are not appointed to a championship role, but emerge to
fill the role because of their own convictions about the benefits of the proposed change. They play a
much more political and social role, exerting influence on various stakeholders (users, developers,
managers who control resources) throughout the life of the project. They use multiple forms of influence,
from the rational argument that has already been discussed to bargaining, coalition building, subtle
pressure, and even outright coercion.
Successful champions are skilled negotiators and organizational players. They understand the dynamics
of the firm well, and can make a compelling case for the change as they see it. Because of these
characteristics, and the fact that they are informal rather than appointed advocates of the system, they
are treated with less suspicion than a formally appointed champion. Since it doesnt work to appoint a
champion, managers need to watch for (and encourage or create) situations where a successful
champion can emerge.
Use of incentives
Traditional human resource incentives can also be used to encourage change; for example, bonuses for
early adaptation of new technologies. The removal of obstacles to change can also be helpful; for
example, freeing up time so change can be implemented rather than adding just one more task to
already over-taxed workers. In the use of incentives and disincentives, it is important to act fairly and
above board.
Change management as an ongoing process
You have read about some of the common tools and techniques used in change management, but
effective change management is not just about applying a set of tools in prescribed ways. Change
management is an ongoing process. While a good plan to start things off is necessary, you cannot
prepare for every situation. It is better to treat change management as a learning process, where
problems are identified as they emerge, analyzed to determine their causes and likely consequences, and
then responded to as necessary.
Change management is equally about the small steps that are taken to deal with one individuals concern,
and the large-scale efforts to create project newsletters or a training program. Thinking about change
management from this perspective, and from the more formal perspective, helps to ensure the flexibility
and responsiveness that are necessary to navigate the path of change within an organization.
10.3 End-user computing and training issues
Learning objectives
Distinguish between end-user computing and end-user development. (Level 1)
Evaluate the different outcomes of user training and end-user support, and explain their
importance to new and ongoing IS initiatives. (Level 1)
Evaluate the different sources and methods of IS training and the process by which effective IS
training in organizations is developed and implemented. (Level 1)
Required reading
Review Chapter 9, Section 9.3, Alternative Systems-Development Approaches (subsection on End-
User Development)
LEVEL 1
End-user computing and end-user development
End-user computing (EUC) refers to the direct use of IT tools by the individuals who are the ultimate
users of the data. The term EUC dates back to the earliest days of the mini computer and PC era, when
users accessed the computers themselves rather than simply receiving reports from centralized
information system departments. Today, EUC is a catch-all term that refers to the issues and challenges
faced by users as they work with advanced technology. It includes issues of systems control, user
competence, training and learning, and issues about support.
Systems control issues relate largely to the phenomenon of end-user development. End-user
development of information systems is described in the textbook and was previously introduced in
Module 3. While common today, the idea that end users might be able to construct their own personal
systems was unusual in the 1980s, when it first emerged.
The benefits and challenges of end-user development are still relevant today. Systems can be developed
more quickly and with a greater fit to user needs, which results in higher user satisfaction. Given what
you have learned about systems development failure rates, it is easy to see why this is attractive. The
key difference that drives speed, fit, and satisfaction is likely the reduction in communication problems in
the systems development process. When users work with system designers, they must clearly explain the
processes and data they require the system to support. They must convey the details of how they work
and the rules they follow. This is difficult to do, as you learned in Module 4. But when users are given the
skills to build systems for themselves, they can construct what they need without having to verbalize
those needs.
Of course, there are problems with end-user development. Users often do not document or test their
applications adequately, or include error detection routines, which can lead to quality problems. Often
applications are not shared, and a lot of "re-inventing the wheel" takes place as different users solve the
same problems. Also, end-user development can result in islands of information, where key decisions
are made using data sets outside the access and analysis of everyone, except the user who created it.
This can result in disconnected and unshared decision making, where too many individuals are doing
their own thing, rather than working in sync toward a comprehensive system shared by all. Systems
control can deal with these limitations. Procedures can be put in place to assist users in following
appropriate development procedures, and to ensure adequate testing and documentation of systems
before they are widely deployed. Finally, they can make sure user systems integrate into a more unified
whole.
User competence
When technology users have high levels of competence in their use of systems, they are able to use the
systems more efficiently and effectively in their work. User competence involves skills in various domains
different hardware and software, different operating systems, and information system fundamentals
(such as database management systems, data and process modeling, and IS development/design
scenarios). The more competence displayed by users and by the IS staff, the greater the likelihood of
success with any systems change initiative.
Assessment of user competence
Capability has been defined by Barbara Marcolin (Assistant Professor of Information Systems at UBC) and
her colleagues1 in terms of breadth and depth of knowledge. Users with a high breadth of knowledge
have been exposed to many different domains, but may not have a high level of expertise in any one
domain. Users with a high depth of knowledge may not be familiar with a lot of different things, but
what they know, they know very well. These users are the power users of applications, and they are
often a resource for their colleagues when trying to use advanced functionality.
Highly competent users also have an ability to creatively apply the technology that goes beyond a simple
grasp of features and functions. These individuals can solve complex problems easily using the right mix
of technology and manual processes, referred to as finesse. Defining a users competence requires an
assessment of all three factors breadth, depth, and finesse.
Development of user capability
Users develop their capabilities in many ways. Formal training is one method, but informal trial and error
approaches while on the job are more common. Much learning takes place through the technology
support function, as users solve unexpected problems aided by IS staff.
Managing the development of user capability requires a partnership between the individual and the
organization. Neither one can be solely responsible for developing this capability. The organization must
provide guidance about what skills are valued and opportunities (internal or external) for those skills to
be developed, and must provide the methods through which those capabilities can be developed.
Users must evaluate their own level of skills compared with that required by their current job (and future
positions) and must take advantage of the opportunities made available by the firm. Some organizations
are reluctant to provide training in IS because they are afraid that the skills users develop will simply
make them more marketable to their competition. This may be true, but the firm also benefits from those
skills and failure to provide training opportunities signals a lack of caring about personal development,
which tends to increase job dissatisfaction and employee turnover in IS-related jobs.
The pace at which technology is changing demands a continuous learning approach to IS. Users cannot
rely on formal training, for example, to learn each new task they require. If they did, they would be in
training forever. Trial and error and informal training with colleagues are necessary, and require the
active engagement of the user. Google encourages employees to spend 20% of their time working on
side projects that they are passionate about. This is part of their culture to encourage employees to
investigate new ideas through trial and error.
Training and learning
Training and learning about information systems is an ongoing process. It includes periods of formal
training, followed by periods of problem solving and use. Learning takes place equally between both the
training and problem-solving phases. Much training is completed in a few hours to a few days, and it is
impossible for someone to master all the elements of a system in that time. Further learning then takes
place as the features are tried out on real applications and as new problems are encountered.
Training outcomes
Successful user training results in three primary outcomes:
Mental model
First, users develop a conceptual understanding of the system, or a mental model. This mental model is
the framework they will use with the system and in problem solving on an ongoing basis.
A mental model is usually an image or picture; for example, the understanding of a computer disk as a
filing cabinet, with directories representing drawers and subdirectories representing file folders containing
the actual files or documents of interest to the individual. When users cannot find a file that they think
theyve saved, they may refer to their analogy of a filing cabinet and reason that they may have put it in
the wrong drawer.
Another mental model could be understanding MS Word in terms of its key features. There are features
for creating and editing text documents, features for graphics and tables to enhance those documents,
and tools for document formatting, text correction, and so on. This sequential or linear model also guides
use. When a user encounters a new need, they will search their understanding to figure out where they
may find the tools to fill this need. A user who needs to create a corporate newsletter for the first time
may reason that this would be possible using simple document editing features, but knows there are
more sophisticated ways to do this. For this reason, many user applications offer support through wizards
or Q&A type subroutines that assist end users with specific tasks.
Skill using the system
The second outcome of training is actual skill using the system, which is knowledge of the processes of
how to do something using a particular software package. The user learns how to create a table in MS
Word, use the spell checker to check spelling and grammar, or use the index feature to create a key word
index. This skill will be limited, because training is generally of short duration, and real skill strengthens
over time. But it is a starting point from which work can be accomplished and future learning can begin.
Motivation
The final outcome of training is the motivation of users to use the system. Because much learning takes
place outside of formal training, it is important that people be motivated to use the system in their own
positions. Without such motivation, usage and future learning will not take place.
Motivation includes two distinct elements. First, users must believe that their use of the system is
valuable to both them and the company. They must be convinced of the benefits of using the system,
particularly its usefulness to them in their tasks. Second, they must believe that they are capable of using
the system in their work (or believe in their self-efficacy). Self-efficacy represents our confidence in our
ability to undertake certain behaviours to achieve a desired result, and has been shown to be a powerful
force in a variety of human behaviours, including learning about information systems. Besides providing
an overall mental model of the system and specific how-to skills in using it, training must aim to
convince participants of the systems benefit in their work, and of their capability to use it effectively.
Training sources
Training can be obtained through many different sources. Companies may design their own in-house
training programs, tailored to their specific needs. Alternatively, they may recommend courses at local
training providers, of which there are many. Information systems vendors may also develop and provide
training as part of the contract for purchasing hardware or software. This is more likely with specialized
systems rather than generic systems. Training may also be obtained through courses at community
colleges and universities or through community learning programs. Today online training sites are also
popular, including most large software vendors as well as user training at sites like Lynda.com.
Recently, some of the better colleges and universities have been pushing online education courses.
Although these are not yet accredited and that is expected to change soon this represents
education rather than training; however, that too may change. Sites like Coursera.com from Stanford,
edX.org from MIT, Khan Academy, TED, and Skillshare all provide new ways to approach education and
training through sharing.
Each different resource is useful to different people, for different applications, and at different points in
time:
In-house training is likely to be the most specifically tailored to the needs and applications of the
organization, which will provide better focus for developing skills and creating motivation.
Vendor-provided training is also quite tailored, but less so than in-house because the vendor lacks
specific understanding of the firm and its practices.
Training from professional training firms provides excellent skills information. The trainers used by
these firms know their material very well and are able to convey a lot of information in a fairly
short period of time.
Training from colleges and universities often focuses more at the level of the mental model
(concepts), though skills are a part of most courses as well. This type of training may be useful for
people who want to develop a broader understanding of a system in addition to procedural skills.
On-line training provides a good cross-section of the other trainings. It may be less tailored, but
the user is in control of both time and playback in the training. And it can usually be retaken at
any time with little or no cost to the organization
In-house and vendor training likely makes the most sense when a new system is being introduced, but
this is not the only time that training is required. As new people join the firm or people assume new
roles, additional training is necessary. These changes in jobs dont happen in batches, and providing
training for one or two people is unlikely to be cost-effective using these sources. Therefore, training
firms and the programs at other educational institutions make sense for ongoing training needs.
Using peers as trainers, in a method called train-the-trainer, is also helpful in establishing a more direct
personal link to the material. This type of training is often used in large-scale systems implementations.
An external firm, often the software vendor, provides training to a set of lead users, both on how to use
the software and on how to effectively train others to use it. Then these lead users train others in the
firm. An additional benefit is that it is often more cost-effective than paying outside trainers to conduct all
of the training.
Training methods
In addition to the different sources from which training can be obtained, there are different methods for
training. The two biggest categories of formal training are classroom training and computer-based
training.
Classroom training and computer-based training
In classroom training, an instructor works with a small group of participants (usually no more than 15 to
20) in a face-to-face environment. In computer-based training, the participants engage in self-paced
exploration of the topics, guided by onscreen instructions. The computer program may include points of
testing to ensure that material is being learned, and to repeat material that is not understood.
Both approaches are useful. Classroom training works better with novice users and those who lack
confidence in their abilities. These users are often overwhelmed by having to use a computer as the
method of learning to use a computer. Classroom training also arguably does a better job of conveying
the overall mental model and instilling motivation. But for more experienced and confident users whose
primary focus is how-to skills, computer-based training is quick and effective.
Factors for successful training
Various factors are important to successful training, whether it takes place in the classroom or on a
computer.
The first is the opportunity for hands-on practice of new skills as they are being learned. Training
that is conducted without giving each participant access to a computer to do exercises and work
through problems will not be effective because practice is an essential part of the learning process.
Demonstration of key skills, or behaviour modelling, is also a factor that has been found to lead to
much higher training success. Demonstration, rather than just verbal explanation, helps to teach
skills and to improve motivation; watching someone else demonstrate skills has been found to
increase self-efficacy. In fact, the most consistent result in training research (in any domain) has
been the superiority of behaviour modeling approaches to training.
Allowing training participants to work on real problems is also beneficial. By improving the personal
relevance of the training materials, perceptions of the benefits of the system can be improved, as
can learning, because it is easier to remember things in ones own context.
These factors can be implemented with varying success in classroom and computer-based training.
Working on real problems is a bit more troublesome for computer-based training, as most of these
programs demand tight control over the users behaviour. For classroom training, instructors can help
individuals work on their own problems more flexibly; however, it can be difficult to do this if the problem
is complex and outside the understanding of the trainer.
Training process
An effective training process can be divided into three phases of activities: pre-training, training, and
post-training.
Pre-training phase
In the pre-training phase, there are several important issues to address. The first is a needs assessment.
Begin with understanding the demands of the task environment (such as, what do people have to
know?). Then critically examine the skills individuals have and compare them to the skills identified in the
previous step. This comparison tells you what people need to learn from training.
Establishing such a benchmark aids in the design of training and is the second issue to consider in the
pre-training phase. Consider the different sources and methods of training and their strengths and
weaknesses relative to the needs you have identified.
The final issue in the pre-training phase is establishing a design for evaluation of the training. Training is
costly and time consuming. Many organizations just provide it without doing a lot of needs analysis or
evaluation. Consequently, they have no idea whether they are spending too much or too little on training.
Are they targeting the right people and using the right training approaches? Are people transferring their
new skills back to their job environments, and if not, why not? These questions are essential to
understanding the value of training, and the types of training that work in particular environment.
Training phase
During training, the participants learn the new skills that they require. The training environment is
important. It should be located away from work if possible, so that participants do not get drawn back
into their job tasks on breaks. If training is important, it should be given priority over all but the most
urgent situations, and having people away from the office reinforces this view.
Sufficient time also needs to be provided for the amount of learning that needs to take place. For an
upgrade of a productivity tool like MS Excel, a half-day of training that focuses on new features may be
sufficient for many users, but for a new tool with complex functionality, two or more days may be
necessary. Training courses can often be tailored to the specific needs of an organization.
Post-training phase
Two issues are paramount in post-training. The first is providing support to the users who are trying to
transfer what they have learned in training to their day-to-day work. They will encounter problems as
they try to work independently with an unfamiliar tool and will require more support than is customary.
The second is to conduct the evaluation of training that was planned in the pre-training phase. Look for
places where the system is not being used as intended and diagnose the reasons. Perhaps sufficient
training was not given or there is not enough post-training support. Perhaps the tool doesnt support the
tasks as intended, or there is a problem of resistance to change. Understanding which of these reasons is
behind the lack of training transfer is necessary before formulating a response.
End-user support
The final topic related to the management of end-user computing is user support. In any organization
various technical supports need to be in place. Using computers inevitably results in problems of one
form or another. Hard drives crash, networks go down, files cant be opened as expected, passwords are
entered incorrectly until users are locked out of the system, and users forget or never understood how to
use certain software features. These problems often form a steady stream of requests for assistance from
users, and can take a tremendous amount of support from IS to resolve.
Outcomes of effective end-user support
There are three basic outcomes associated with effective end-user support.
The first is a resolution of the problem. The user calls for support because they are faced with a
problem. If the problem is not fixed, they will be dissatisfied with the support they have received,
and the organization will lose the productivity of the individual while they continue to wrestle with
the problem.
The second outcome relates to learning. Many (although not all) of the problems that users
encounter are the result of a lack of knowledge on their part. They cannot send a memo to a
colleague because they dont know how to attach a document to an e-mail message. They cannot
open a file because they dont know the application it was created in and the three-letter
extension doesnt match with the program they expected. They do not know how to troubleshoot
these types of problems, so they call for support. Users need to learn about a feature of e-mail in
the first case and about problem solving in a computer environment in the second case. This
learning may require enhancing their mental model or their hands-on skill.
The third, effective support enhances the users motivation to use the system, in particular their
self-efficacy, and their satisfaction with and trust of the IS group.
How support is provided
System support is provided through various mechanisms in organizations. Peers are often used as a first
line of support. It is often easier to ask the person who sits next to you for help than to phone a hotline.
If the organization is large enough, it may offer a help desk (either a phone number or a software
application) as a common way of providing support to users. Acting as a first level of formal support, the
help desk represents a single point of contact to which all queries can be directed, and recorded. Help-
desk agents can deal with problems such as password lockout, answer questions about network status
(for example, is the lack of connection to the network an infrastructure problem or a problem on the
users desktop?), and provide coaching in the use of various software features.
Help-desk agents tend to have fairly broad skills (crossing a variety of domains) but not always high
depth of skills in any one domain. When they encounter problems that are beyond their capability, they
escalate the problem to a second-level support group. These groups are often separated based on
technology. There may be a group focusing on PC support, one for telecommunications, and so on. This
allows second-level support personnel to develop a high depth of knowledge in one area and not to worry
about breadth. Second-level support personnel may bring in vendors or other outside resources to deal
with problems they cannot address. Issues that are escalated to second-level support often take
additional time to resolve.
Because support requires a focus on three objectives (problem resolution, learning, and motivation),
effective help-desk agents must have strong analytical and technical skills, as well as skills in dealing with
people. They must be able to act as a trainer and coach when warranted, or as a quick solution provider
when that is the goal, and be able to tell the difference between the two.
Some organizations maintain their own help desk support; others outsource it to help desk support firms,
and others still outsource the support to countries like India.
End-user support can also include services such as an information centre, a facility staffed by IS to
which users can go to try out new applications and get help with problems in developing small
applications. Information centres were most common in the 1980s, when firms were first dealing with
PCs. They can still be useful today as a way of providing as-needed training and education to users and
helping them to extend their applications of IS tools, but are most often seen as extensions of end-user
support, or as additions to an organizational intranet.

1
Marcolin, B., Compeau, D., Munro, M., & Huff, S. (2000). Assessing user competence: Conceptualization
and measurement. Information Systems Research, 11(1), 37-60.
10.4 Managing expectations
Learning objective
Compare the different types of expectations users may have about information systems and the
importance of the expectation gap, and evaluate how an expectation gap can be minimized. (Level
1)
No required reading
LEVEL 1
In all aspects of IS management that deal with people (managing outsourced partners, change
management, training and support, and IS implementation), expectations play a critical role. Peoples
expectations of a situation (for example, a system change or a support encounter) form a foundation for
their evaluation of it. If expectations are not met, people are dissatisfied. When expectations are met or
exceeded, people are satisfied. This basic tendency has been shown to be an important factor in human
resources, for example, in the context of job interviews. Giving people a realistic impression of a job
before they take it (the good and the bad!) tends to result in higher job satisfaction and lower turnover.
Similarly, with information systems, it is important for users and other stakeholders to have realistic
impressions of what is possible and not possible. This point seems to contradict a point made earlier
about change management. It was argued that a new system rollout should be treated as a product
launch with a marketing focus on communication. This would seem to imply that you should promote the
benefits of the system and try to hide its weaknesses. But good marketers will tell you that creating
unrealistic expectations of a product is dangerous. Consumers become dissatisfied and disloyal, and then
they tell everybody about their negative experiences. As with most things, it is a matter of balance. This
is another area in which good ethics (honesty and candour with consumers) is a smart business strategy
and in which unethical behaviour (creating unrealistic expectations or not satisfying realistic expectations)
is a poor business strategy.
This topic reviews the different types of expectations people have, explains the concept of the
expectation gap and its importance to peoples reactions to IS, and concludes with the factors that can
lead to more realistic expectations about IS.
Types of expectations
Suppose your organization is working on the development of a new customer relationship management
system. You are asked what you expect of the new system. How would you answer?
Managing expectations involves issues of certainty and uncertainty (predictive), as well as desire
(normative). Each type of expectation has a different implication for users reactions to IS, depending on
whether the expectation is met, exceeded, or unmet.
Predictive expectations
You may give your opinion on what you think is likely to happen when the system is introduced, based on
your past experience. You may say, for example, that you expect the IS group will never finish the new
system because they havent been able to do so in the past. Or you may expect there will be a lot of
difficulty at first but that it will be worked out fairly quickly. Both of these are predictive expectations;
that is, they are statements of your opinion of what will happen in the future, grounded on past
experience. Predictive expectations are not necessarily negative, but they are empirical, and are closely
linked to observation rather than theory or logic.
Normative expectations
You may also answer by stating your opinion about what the new system should do, your normative
expectations. You may assert that the new system should include data-mining tools for analyzing
customer data and web-authoring tools for creating personalized promotions. While both of these are
normative expectations, they may differ in their level of importance to you. Data mining may be a
minimally required expectation, one that is critical, and without it the system has no value to you.
Web authoring, on the other hand, may be an ideal expectation, one that would be nice but is not
critical to your acceptance of the system.
Other expectations may be desired expectations, more important than the ideal features (the nice-to-
haves) but not as critical as the minimally required expectations (the must-haves). These expectations
are likely the most numerous and form the should-have group. These would normally be documented
during the requirements gathering phase of system development.
Expectation gap
The gap between what a user expects to happen (either normative or predictive) and what actually
happens is the called the expectation gap. This gap can be large or small, implying a greater
discrepancy between what you expected and what you got. In other words, if data mining was important
to you, and the system contained absolutely no facilities for data mining, that would be a large gap. If it
contained some facilities for data mining, but only very basic tools, that might be a small to medium-sized
gap. The gap can also be positive or negative. A positive gap implies that you got more than you
expected, and a negative gap implies you got less than you expected.
Expectation gap problems
A gap between expectations and reality creates several problems:
The first is uncertainty. This is especially true of gaps between predictive expectations and
outcomes. When users are led to predict that things will occur one way and they turn out
differently, uncertainty is created. They wonder why things changed and are less comfortable in
predicting what might happen in the future. This can result in motivation problems, when users
cannot predictively grasp the benefits of the new system or method.
The second problem is loss of credibility for IS. If users are led to expect something that does not
occur, in the future they will be less likely to believe what they are told.
The third problem is dissatisfaction, based on unmet normative expectations. If features that users
want are not present in a system, they will be dissatisfied, regardless of how they are managed.
This is particularly true of minimally required features, which users would have specified in early
requirements gathering sessions.
The net result of these outcomes is the development of mistrust and resistance among the users. Both
will undermine attempts to successfully introduce new systems and can hurt the organization over the
long term.
Expectation management
To avoid expectation gap problems, you need to create truly realistic (not too high or low) expectations.
This is challenging when there is much uncertainty surrounding a system, which is common in the earliest
phases of systems development. For other kinds of expectations, careful attention to creating realistic
views is important for two reasons. First, at the start of an IS project, users have little idea what features
they think will be in the system. They have probably never thought of it before. The ideas about how it
might work develop over the course of the project, based on what the users see and hear throughout the
organization. As this understanding develops, they will decide what they think is minimally required,
desirable, and ideal. Thus, expectation management requires education about what is possible and not
possible so that unrealistic expectations are not developed in the first place.
The second reason for attending to expectation management is that failing to meet an expectation, in
and of itself, is a source of dissatisfaction. Imagine that you are going to your favourite restaurant for
dinner. You look forward all day to your favourite dish from the menu. When you arrive at the restaurant,
you find out that they cannot serve that dish tonight. Even though you like many other things on the
menu, you will still feel let down because you had been prepared to have that one thing.
The same is true of IS expectations. If people expect or want the system to do certain things and it
cannot, theyll be dissatisfied. However, they may be less dissatisfied if they are warned in advance that it
isnt going to be possible. The degree to which this can work is influenced by the type of expectations
(unlikely for minimally required expectations) and by the degree to which a compelling reason and
alternative solutions are given. Managing expectations to reduce the gap between expected and realized
outcomes will limit the negative reactions of users.
Achieving realistic expectations
The first step to achieving realistic expectations from users is to have a clearly articulated vision of the
new system and clear goals. Without this vision and goals, people will develop their expectations
independently, based on their experiences in other organizations or on what they hear from peers,
consultants, vendors, and so on.
If this clear vision does not exist at the outset of a systems project, it must be developed and then
communicated before other work begins. Keeping users and other stakeholders involved in the process
provides a communication channel that will keep the more outrageous expectations from taking hold.
Communication, as discussed in change management, is also essential to the management of
expectations. Newsletters can be used to describe the vision and goals of the system, as well as what it
will and will not do.
Justification for decisions to leave out widely desired features are also central to expectation
management. If you can give someone a good reason why something they want cannot be provided,
they may adjust their desire. For example, suppose a user who wants web-authoring tools for
personalization doesnt realize that it will cost $20 million and will benefit the organization only $5 million.
By explaining that decision, the user realizes that the feature is not really all that important, and has no
cost/benefit to the organization.
Finally, it is important to set expectations about the process as well as the system itself. The idea that
delays are common and can be expected is critical to convey. People who are experienced with systems
development projects know that things dont always work smoothly. Software development takes longer
than expected, hardware arrives late, training is delayed, and so on. Project management is concerned
with minimizing the impact of these unexpected events on the overall schedule, including managing
expectation to minimize the negative reaction of people when the schedule is affected. Some of the
questions to be answered for users about the process are
Who will be involved in the process?
What form will their involvement take?
How long will it take?
How will conflicts over functionality be resolved?
What will happen when delays occur?
For features that arent implemented, are there ways to add them later (for example, version
updates for a software package)?
10.5 Social responsibility
Learning objective
Assess the social responsibilities associated with developing and implementing information
systems. (Level 1)
Required reading
ERH, Unit C1, Professionalism and Responsibility in the Technological Society (read both the
introduction and the accompanying article)

(For all ethics-related readings in this course, it is assumed you are already familiar with Section A
and Units C1, C2, C3, C4, C5, and C10 of Section C of the Ethics Readings Handbook. ERH
readings are provided electronically under Resources.)
LEVEL 1
This course concludes by revisiting an aspect of IS ethics the topic of social responsibility. As a
manager, it is your duty to act in the best interest of stakeholders in your organization: its employees,
customers, suppliers, and partners. Widely defined, the stakeholders also include society. This is
especially true as corporations become increasingly global and assume more power in the world. As a
CGA you have a professional responsibility to act in the public interest.
Social challenges for IS
Your duty to society regarding IS will be challenged by the ways IS can influence employment. In some
cases, through the deployment of new technology or programs, IS may reduce the number of people
who work in your firm. In other cases, it may make jobs less interesting or create more complexity and
make them more demanding. Another challenge is the ease with which an individuals personal privacy
can be compromised and intellectual property rights violated using networks. Gartner predicts that by
2017, 40% of enterprise contact information will have leaked into Facebook via employees increased use
of mobile device collaboration applications.
1
Making IS decisions requires thinking through these social
challenges, and other challenges, to ensure that the stakeholders interests are being protected, both in
policy and in action.
However, this does not mean that you should avoid making decisions that would negatively influence a
stakeholder. For example, systems that automate repetitive tasks do indeed lead to job losses. But if an
organization avoids making any investments in these systems, it is likely to become less competitive in
the marketplace and would risk the job of every person who works there, rather than the minority who
would have been displaced by the system. There is a sense of utility to each decision. What is necessary,
then, is to balance interests and pay attention to a range of social consequences. In promoting the long-
term interests of the corporation, it is essential to also pay attention to those who bear the costs of social
changes. This may mean taking appropriate mitigating steps to those who bear the costs of IS changes.
For example, employees who will be made redundant by changes in IS could be offered a severance
package, which includes job counseling.
Social responsibility for managers
It is easy to see information systems as a technical subject, one that is the responsibility of specialists
and therefore not something for general managers to worry about. Hopefully, this course has helped you
see the range of social and organizational issues (in addition to technical ones) that make up the
management of information systems, and the broader responsibility of managers. Abdicating your
managerial responsibility for information systems does not mean that social and organizational influences
will not occur. All it means is that technical specialists will make decisions that will drive these influences
toward a technological solution, without necessarily attending to the consequences.
As a non-IS manager, it is your responsibility to understand the social and organizational context in which
your decisions are made and the assessment of how decisions about IS will influence those
environments.

1
Eric Savitz, Gartner: A Dozen IT Predictions For 2013 And Beyond. Accessed on April 13, 2013.
http://www.forbes.com/sites/ericsavitz/2012/10/24/gartner-a-dozen-it-predictions-for-2013-and-beyond/
Module 10 self-test
1. Multiple choice
Note: For multiple-choice questions, select the best answer. Answer each question by giving the
number of your choice. For example, if (2) is the best answer for item (a), write (a)(2) as your
answer.
a. What is the most common form of IT-enabled organizational change?
1. Disintermediation
2. Reengineering
3. Rationalization
4. Automation

b. Which IT-enabled change has the highest risk but also offers the highest return?
1. Reengineering
2. Paradigm shift
3. Rationalization
4. Disintermediation

c. Which of the following statements about the management of expectations is true?
1. Management of normative expectations is less important than management of
predictive expectations.
2. Expectations management is most important during the maintenance phase of the
systems development life cycle.
3. Poor expectations management decreases the credibility of IS over the long term.
4. Management of expectations is best addressed through user training.

d. Which of the following best describes the process of making a routine become second
nature?
1. Unfreezing
2. Moving
3. Refreezing
4. Process reengineering

e. Which of the following pairs best characterizes the skills needed to manage external
relationships with IS providers?
1. Technical and contract-negotiation skills
2. Problem-solving and legal skills
3. Technical and relationship-management skills
4. Relationship-management and contract-negotiation skills

f. Which of the following statements best describes how the Leonard-Barton model of
information systems change differs from the Lewin-Schein model?
1. The Lewin-Schein model sees organizations as more dynamic.
2. The Lewin-Schein model does not address the need to convince people of the need
for change.
3. The Leonard-Barton model views change as more continuous, rather than discrete.
4. The Lewin-Schein model can subsume the Leonard-Barton model.

g. Continuing to demand new features in an information system would be an example of
which of the following resistance tactics?
1. Resource diversions
2. Public debate
3. Problem expansion
4. Benign neglect

h. Which of the following statements best describes a difference between classroom training
and computer-based training?
1. Classroom training is best for users with limited capability.
2. Computer-based training fits better with a train-the-trainer approach.
3. Most organizations cannot afford computer-based training, whereas classroom
training is affordable.
4. Classroom training is superior to computer-based training in almost every instance.

i. A training method in which users learn by observing others before practising new skills
themselves best describes which of the following?
1. Behaviour modelling
2. Train the trainer
3. Classroom training
4. Apprenticeship training

j. What do the motivational outcomes of training include?
1. A mental model and a belief in the benefits of using a system
2. A belief in the benefits of using a system and self-efficacy
3. Self-efficacy and a mental model
4. A belief in the benefits of using a system and organizational incentives
k. Which of the following statements best describes ethical isolationism as it relates to
professionals?
1. Insulating oneself from the pressures of public opinion on ethical issues
2. Regarding oneself as an amoral expert on technical issues who leaves moral
judgment to clients or employers
3. Being unaware of professional moral values
4. Acting as an ethical professional no matter what others say or do
Solution
2. Explain why there is considerable organizational resistance to the introduction of information
systems.

Source: Kenneth C. Laudon, Jane P. Laudon, and Mary Elizabeth Brabston, Management
Information Systems: Managing the Digital Firm, Fifth Canadian Edition (Toronto: Pearson Canada,
2011), page 90. Reproduced with permission from Pearson Canada.

Solution
3. Explain how information systems support process changes that promote quality in an organization.

Source: Kenneth C. Laudon, Jane P. Laudon, and Mary Elizabeth Brabston, Management
Information Systems: Managing the Digital Firm, Fifth Canadian Edition (Toronto: Pearson Canada,
2011), page 305. Reproduced with permission from Pearson Canada.

Solution
4. Identify and describe each of the principal risk factors in information systems projects.

Source: Kenneth C. Laudon, Jane P. Laudon, and Mary Elizabeth Brabston, Management
Information Systems: Managing the Digital Firm, Fifth Canadian Edition (Toronto: Pearson Canada,
2011), page 338. Reproduced with permission from Pearson Canada.

Solution
5. Complete the Window on Management, "Managing IT in the Merger and Acquisition Game" (pages
319-320 in your textbook), and answer Questions 1 to 3.

Solution
6. What are the five behaviors that indicate resistance to the implementation of a new system?

Solution
7. How should a CGA, who manages IS for an organization, act when there appear to be conflicts
between the public interest and the organizations interests?

Solution
Module 10 self-test solution
Question 1 solution
a. 4) Topic 10.2
b. 2) Topic 10.2
c. 3) Topic 10.4
d. 3) Topic 10.2
e. 3) Topic 10.1
f. 3) Topic 10.2
g. 3) Topic 10.2
h. 1) Topic 10.3
i. 1) Topic 10.3
j. 2) Topic 10.3
k. 2) Topic 10.5
Module 10 self-test solution
Question 2 solution
There is considerable organizational resistance to new information systems because they change many
important organizational dimensions, such as culture, structure, politics, and work. Leavitt puts forth a
model that says that changes in technology are absorbed, deflected, and defeated by organizational task
arrangements, structures, and people. In this model the only way to bring about change is to change the
technology, tasks, structure, and people simultaneously. In a second model, the authors speak of the
need to unfreeze organizations before introducing an innovation, quickly implementing the new system,
and then refreezing or institutionalizing the change.
Source: Dale Foster, Instructors Manual to accompany Management Information Systems: Managing the
Digital Firm, Fifth Canadian edition, Pearson Canada, 2011, Chapter 10, page 88. Reproduced with the
permission of Pearson Canada.
Module 10 self-test solution
Question 3 solution
Total quality management (TQM) and Six Sigma are two quality improvement programs that differ from
business process reengineering which is based on radical one-time redesigns of business processes. They
are more incremental in their approach to change than BPR. TQM requires a series of continuous
improvements. Six Sigma requires statistical analysis to detect flaws and make minor adjustments.
Information systems help achieve organizational goals in these two programs by:
helping companies simplify products or processes
making improvements based on customer demands
reducing cycle times
improving the quality and precision of design and production
meeting benchmarking standards
Source: Dale Foster, Instructors Manual to accompany Management Information Systems: Managing the
Digital Firm, Fifth Canadian edition, Pearson Canada, 2011, Chapter 9, page 342. Reproduced with the
permission of Pearson Canada.
Module 10 self-test solution
Question 4 solution
Project size: the larger the project (dollars spent, the size of the implementation staff, the time
allocated, and the number of organizational units affected), the greater the risk. The larger the project,
the higher the failure rate. There are few reliable techniques for estimating the time and cost to develop
large-scale information systems.
Project structure: Highly structured projects usually have clear and straightforward requirements,
therefore outputs and processes are easily defined. Users know exactly what they want and what the
system should do; there is almost no possibility of users changing their minds.
Experience with technology: The less experience the project team has with hardware, system software,
application software, or database management system, the higher the risk of project failure.
Source: Dale Foster, Instructors Manual to accompany Management Information Systems: Managing the
Digital Firm, Fifth Canadian edition, Pearson Canada, 2011, Chapter 9, page 383. Reproduced with the
permission of Pearson Canada.
Module 10 self-test solution
Question 5 solution
Combining the information systems of two different companies usually requires considerable
organizational change and complex systems projects to manage. If the integration is not properly
managed, firms can emerge with a tangled hodgepodge of inherited legacy systems built by aggregating
the systems of one firm after another. Without successful systems integration, the benefits anticipated
from the merger cannot be realized, or, worse, the merged entity cannot execute its business processes
and loses customers.
1. What are some of the risks involved when one firm acquires another firms IT
infrastructure?
A number of risks are stated in the case:
The target company may have stopped spending on maintenance years ago to decrease costs and
increase profits.
The target company may have fallen behind competitors in new applications.
Software licenses may not be transferable to the new company without significant fees.
Systems may be totally incompatible with the acquirers systems.
"Due diligence" is a critical element when it comes to mergers and acquisitions. Due diligence is a legal
requirement of senior management to ensure the financial and business statements of firms they are
acquiring are accurate and complete.
2. Why do firms often fail to take the target firms information systems and IT infrastructure
into account when purchasing other firms?
Traditionally, M&As were entered into for financial reasons (greater market share, elimination of
competitors, greater efficiency and profitability), and were led by financial managers. With that being
stated, it is easy to see why these professionals did not give enough attention to the target companys IT
infrastructure. Bean counters are used to counting dollars and cents, and for years a companys IT
infrastructure was viewed as a financial drain on a company rather than classified as one of its main
assets
3. How would you go about assessing the value of another firms IT infrastructure and
operational capabilities? What questions would you ask?
Some management tactics for assessing the value of another firms IT infrastructure and operational
capabilities include the following:
Classify the assets your firm is about to acquire:
o Transaction systems
o Information systems
o Strategic systems
o Basic infrastructure
Create an inventory of the target firms IT assets in order to value their potential contribution to
the new firm:
o Keep the target company systems if they are better than your own.
o Keep your own systems and retire the target company systems if yours are better.
o Choose the best of both companies systems.
o Use the M&A to build an entirely new infrastructure.
Educate management on the risks involved in mergers and acquisitions:
o Education and caution will go a long way towards reducing the threat to shareholder value
and falling stock prices.
o Avoid overvaluing the assets of the target firm while at the same time systematically
underestimating the risks of the acquisition.
o Obtain a solid understanding of the costs involved in mergers and the operational activities
and information system infrastructure as it relates to both firms (realistic costs of
integration).
o Estimate benefits of economies in operation scope, knowledge, and time.
o Identify any problematic systems that require major investments to integrate.
o Identify and understand likely costs and organizational changes required to upgrade the IT
infrastructure.
Source: Adapted from Dale Foster, Instructors Manual to accompany Management Information Systems:
Managing the Digital Firm, Fifth Canadian edition, Pearson Canada, 2011, chapter 10, pages 361-362.
Reproduced with the permission of Pearson Canada.
Module 10 self-test solution
Question 6 solution
1. Public debate: argument and challenge of the approach
2. Benign neglect: a passive form of resistance that involves ignoring requests for input
3. Resource diversions: assigning financial and human resources to other initiatives; without
sufficient resources the project will founder.
4. Problem expansion: increasing the scope of the project until it becomes untenable
5. Sabotage: an extreme form of resistance, involving a deliberate and overt attempt to ensure that
the new system cannot be successfully implemented
Module 10 self-test solution
Question 7 solution
According to CGA-Canadas Code of Ethical Principles and Rules of Conduct (Version 2.11 2011):
Certified General Accountants are committed to the public interest. Normally, acting in the public interest
is achieved by acting in the interest of ones client or employer. However, whenever there is a conflict
between these interests, the professionals first obligation is to the public at large. Acting appropriately in
such situations may require the courage of ones convictions.
Module 10 summary
Human side of IS management
Assess the challenges in managing external partners, and describe the critical skills and activities that managers
must master to successfully manage internal and external resources.
Challenges of managing external partners include
reliance on external parties
lack of direct control and authority to order work
different, sometimes incompatible, goals pursued by different stakeholders
difficulty achieving integration
To successfully manage internal and external resources, managers need to
build and manage business relationships:
o internally with senior management and business units
o externally with suppliers, customers, technology vendors, and occasionally competitors
manage change
communicate
analyze and solve problems
understand technology and its interactions
Assess the importance of change management to the development and implementation of information systems.
New systems often require changes in work practices and lead to changes in power dynamics and
skills required.
Failures of new systems are more often attributed to human factors than to technical failures.
Identify issues of change management in projects using the Lewin-Schein and Leonard-Barton models of change.
Lewin-Schein model:
o three stages (unfreezing, changing, refreezing)
o assumes stability between infrequent periods of change
o assumes technology is fixed and that people adapt to it
Leonard-Barton model:
o shows change as a process of cyclical adaptations of people and technology, to bring the
technology and user environments into greater alignment
cycles may be large or small
complements the Lewin-Schein model by addressing the issues of continuous change
and technology adaptability
Assess why people resist change and interpret how resistance to change is manifested.
Five key sources of resistance:
o Social inertia: habit; people desire to do things in the same way because it is easier.
o Capability issues: people can doubt their ability to change, which will cause them to resist.
o Change in power structure: those who stand to lose power are likely to resist change.
o Value of change: maybe the system is not as valuable as was expected.
o Resentment at being treated unfairly.
Five key manifestations of resistance:
o Public debate: argument and challenge of the approach
o Benign neglect: a passive form of resistance that involves ignoring requests for input
o Resource diversions: assigning financial and human resources to other initiatives; without
sufficient resources the project will founder.
o Problem expansion: increasing the scope of the project until it becomes untenable
o Sabotage: an extreme form of resistance involving a deliberate calculated attempt to ensure
that the new system cannot be successfully implemented
Evaluate the critical elements required to successfully manage change and reduce resistance.
Communication (progress updates are critical)
o Many vehicles are possible, including newsletters and meetings.
o Communication is viewed as marketing the new system.
Education and training
o These promote the aims of the system (education) as well as how they will be achieved
(training).
o Training helps to counter resistance based on capability concerns.
Incentives
o Provision of incentives for change or removal of disincentives.
o Acting fair and above board with respect to incentives.
Championship
o Champions are informal advocates of a new initiative, and are emergent rather than
appointed.
o Championship requires skilled organizational players to master the politics of introducing a
new system.
Ongoing process
o Change management is not a one-time effort; it begins at the initiation of a new project and
continues throughout the lifecycle, even into the maintenance and support phase.
Distinguish between end-user computing and end-user development.
End-user computing (EUC) refers to the direct use of IT tools by the individuals who are the
ultimate users of the data.
o It also refers to the issues and challenges faced by users as they work with technology.
End-user development is an approach to systems development where users build applications for
themselves, with limited involvement by IS professionals.
o EU development has risks in terms of systems quality control that must be managed.
Evaluate the different outcomes of user training and end-user support, and explain their importance to new and
ongoing IS initiatives.
Effective end-user training results in three key outcomes:
o mental model: understanding how the system works and what it does
o skill in using the system: hands-on capability in accomplishing tasks
o motivation to use the system and to continue learning, based on
belief that the system is valuable
confidence in ones ability to accomplish tasks (self-efficacy)
User support can also be a means of learning, but provides additional outcomes:
o It resolves problems that keep users from completing work tasks.
o It provides an opportunity for on-demand learning.
o It contributes to motivation to use a system (perceived usefulness and self-efficacy).
Various mechanisms provide support:
o peer support
o help-desk multiple levels of assistance
o online support aids
o information centre
Evaluate the different sources and methods of IS training and the process by which effective IS training in
organizations is developed and implemented.
Sources of training:
o in-house instructors
o courses from training providers or vendors
o peers
o structured and unstructured exploration
o the web
Methods of training:
o classroom training
o computer-based training, including web-enabled training
Training process:
o pre-training: needs assessment, training design, design of evaluation
o training: key considerations are location (away from work), time, opportunities for practice
o post-training: ongoing support, evaluation of outcomes
Compare the different types of expectations users may have about information systems and the importance of the
expectation gap, and evaluate how an expectation gap can be minimized.
Predictive expectations reflect what people think will happen.
Normative expectations reflect what people think should happen.
o Normative expectations include minimally required expectations (must have), desired
expectations, and ideal expectations (nice to have).
Gap refers to the difference between what users think will or should happen and what actually
happens.
o Gap creates problems such as increased uncertainty, loss of credibility, dissatisfaction,
mistrust, and resistance.
o Both positive (system exceeds expectations) and negative (system does not live up to
expectations) gaps can exist; either can be problematic but negative gaps are worse.
An expectation gap can be minimized by
o clearly defining and communicating the purpose and scope of the system
o communicating continuously to monitor progress and learning
o being prepared to justify each decision, especially when it involves leaving out a highly
desired feature
o Setting expectations about process as well as outcomes
Assess the social responsibilities associated with developing and implementing information systems.
Social responsibility of organizations is increasingly important, as global organizations become
more powerful.
Accountants, including CGAs, have a professional responsibility to act in the public interest.
Information systems can alter employment by reducing the need for some jobs, creating the need
for others, and by changing the skills demanded of employees.
Information systems pose increasing challenges to the protection of intellectual property and
personal privacy.
It is important to view IS as more than just a technical endeavour.