ORGANIZACJA I ZARZĄDZANIE

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1 ORGANIZACJA I ZARZĄDZANIE KWARTALNIK NAUKOWY Nr 1(9) WYDAWNICTWO POLITECHNIKI ŚLĄSKIEJ GLIWICE 2010

2 SPIS TREŚCI 1. Philippa COLLINS Społeczna odpowiedzialność przedsiębiorstw a ISO 26000: Podwójny oksymoron? Dyskusja zagadnienia Aleksandra CZUPRYNA-NOWAK Determinanty wydajności systemów infromatycznych w zarządzaniu firmą Liviu DRUGUS Czym jest zarządzanie: nauką, dyscypliną czy poglądem? EMMY jako postmodernistyczna i transdyscyplinarna alternatywa dla współczesnego zarządzania Daniel GHERASIM, Adrian GHERASIM Komunikacja we współczesnym przedsiębiorstwie Alexandra GUMENNAIA Społeczna odpowiedzialność przedsiębiorstw w innowacyjnym rozwoju gospodarki Krzysztof MICHALSKI, Barbara BIAŁECKA Model systemu wspomagania decyzji w przedsiębiorstwie chemicznym z zastosowaniem LCA Siew-Imm NG, Keng-Kok TEE, Yeng-Wai LAU Role menedżerów oddziałów bankowych w Malezji Barbara SORYCHTA-WOJSCZYK Identyfikacja krytycznych czynników sukcesu w zagospodarowaniu majątku likwidowanych kopalń węgla kamiennego José G. VARGAS-HERNÁNDEZ, Mohammad Reza NORUZI Ryzyko projektu w zarządzaniu innowacjami Przemysław WRÓBEL Rola i znaczenie kapitału społecznego w spółdzielniach socjalnych Analiza empiryczna wymiarów kapitału społecznego

3 Philippa COLLINS Heriot Watt University, Scotland CORPORATE SOCIAL RESPONSIBILITY AND ISO 26000: A DOUBLE OXYMORON? A DISCUSSION PAPER Summary. The paper concerns on the recognition of the Corporate Social Responsibility (CSR) concept and focuses on the problem of its implementation. One of the applied solutions is the standard of ISO In the paper it is considered as one of the ways to put CSR assumptions into practice and it is compared with other standards of this kind (GRI, SA 8000). The research focuses on the impact of quality management on the process on CSR implementation. Keywords: CSR, ISO 26000, implementation, quality management SPOŁECZNA ODPOWIEDZIALNOŚĆ PRZEDSIĘBIORSTW A ISO 26000: PODWÓJNY OKSYMORON? DYSKUSJA ZAGADNIENIA Streszczenie. Artykuł porusza zagadnienie Społecznej Odpowiedzialności Przedsiębiorstw (Corporate Social Responsibility CSR) i koncentruje się na problemie jej implementacji. Jednym ze stosowanych rozwiązań jest norma ISO W niniejszym artykule rozważana jest ona jako jeden ze sposobów wdrażania założeń CSR do praktyki oraz porównana z innymi standardami tego rodzaju (GRI, SA 8000). Przeprowadzone badania kładą nacisk na zarządzanie jakością w procesie wdrażania CSR. Słowa kluczowe: CSR, ISO 26000, wdrażanie, zarządzanie jakością Reactions to questions concerning Corporate Social Responsibility [CSR] and the development of a new CSR standard ISO can be extreme. Although many writers argue that CSR is now mainstream, not a management fad, both concepts still confuse people and are often regarded with cynicism. One manager recently described as bizarre

4 6 P. Collins the idea of developing a standard for CSR, and Eddie Obeng s 1 reply became the title of this article! A single definition of CSR has so far been unachievable, as there is much conceptual ambiguity. However, many believe that if it is ignored, it will damage brand reputations. As Peter Drucker once stated, The guiding principle of business economics is not the maximisation of profits; it is the avoidance of loss. Even those who favour the adoption of CSR measures have problems in making change happen. Sometimes it is hard to find out whose social welfare companies are seeking to enhance, and the number of acronyms and conflicting terminology lead to further confusion. It is important to recognize that CSR includes environmental, social and governance issues. Social often includes poverty reduction and development issues, although Tallontire [2007] claims that Poverty reduction is not an aim of CSR. [Certain population groups would argue that any CSR improvements will be nullified if global population rates are not reduced but that is not part of this discussion]. A further complication is the confusion caused by elements which overlap with climate change discussions. One way to begin the journey towards understanding is to watch Burtynsky s 2006 film Manufactured Landscapes. Using minimum commentary, he uses photography to demonstrate the problems that need to be addressed. The scope makes it difficult to grasp, and CSR initiatives have become fragmented and compete with each other [for earlier discussions see Collins 2008; 2009]. Therefore, when people try to understand CSR, they need to separate the different streams, as understanding and implementing each sub-set requires a different skill set. It is also important to recognize that CSR is both an internal and external issue: it ranges from employee welfare to concerns throughout the supply chain. The difficulties can be illustrated with reference to a number of situations in South America. Adams [2009] discusses the genocide leading to the extinction of Amazonian tribes such as the Akuntsu during exploitation of the region for agriculture and cattle ranching. In Peru, there are large expanses of Amazon forest the lungs of the world under which are huge reserves of oil, gold, gas and uranium. The conflict of interests between different stakeholders, leading to violent demonstrations, was vividly illustrated in a recent Al Jazeera documentary 2. The President of Peru, Alan Garcia, stated that This has gone too far. These people [the indigenous tribes] do not wear a crown. Those people are not first class citizens. 400,000 natives cannot tell 28 million Peruvians that you do not have the right to come here...this is a terrible mistake. And anyone who thinks like this wants to lead us irrationally towards a backward, primitive state. 1 PentacleTheVBS.com. 2

5 Corporate Social Responsibility 7 In contrast, Richard Chase Smith, Executive Director of El Instituto del Bien Común 3, an agency that works with indigenous peoples, explained the ways in which companies flout human rights and ignore environmental concerns. It is doubtful that a voluntary ISO standard will make any difference to the way companies behave, especially when they have the backing of national governments. The problem is to find methods to enhance the implementation of CSR in all its complex aspects. Quality management practitioners have long been aware of the links between quality methods and CSR in its widest sense. Their intention has always been to do the right thing as well as doing things right, such as reducing waste, avoiding pollution, and satisfying the customer [including stakeholders, not just the immediate client]. They look for continuous improvement and urge managers to go beyond quality control and quality assurance, and to aim for business excellence. The concepts evolved, became associated with a wide range of tools and techniques to apply in appropriate situations, and moved from being purely operational to part of organizational strategy. So embedded are the concepts that Total Quality Management [TQM], value stream analysis, business excellence whatever name you prefer from the long list of alternatives that no company can survive without them. The ISO 9000 family of standards 4 is just one tool, and one that is much criticized. Those who helped to introduce the main quality standard, the ISO 9000 series, will recall all the problems that it raised. Standards set a minimum target, rather than encourage continuous improvement, and although developed for manufacturing was applied in contexts where other approaches would have been more suitable. Some have long campaigned against ISO 9000, saying that it is about compliance, not quality. Many auditors confirm that certification is no guarantee of quality products or services. Standards achieved are not consistent. The result? Far too many firms set up the systems to be audited for the sole purpose of having the certificate to hang up in their reception areas. Got the Certificate; done Quality. No wonder the Q word became so unpopular. Did you ever hear of an organization that failed the audit or had their certificate removed? It is essential not to inflict these mistakes on our CSR efforts. The development of ISO is potentially misleading and cannot guarantee better implementation of CSR. This is put forward as an ISO standard, not a standard that could be audited by a third party, but a set of guidelines. It states This International Standard is not a management system standard. It is not intended for certification purposes or regulatory or contractual use. Companies that have complied with ISO 9000 often go no further than the minimum, without adopting the principle of continuous improvement. There is much research 3 4

6 8 P. Collins evidence showing that voluntary agreements are often blatantly ignored. Change management requires more than tick boxes and guidelines. A social management system is required to complement the technical systems already available. Yet Human Resource Management textbooks rarely address the CSR range of issues. SA 8000, developed in the USA, is a very important initiative that helps to fill this gap, but it is hardly known in Europe where ISO holds sway. At one time ISO was an agency for developing standards. Now an important part of its role is to act as consultant and training agency. It claims its brand name as part of its added value. Is this new ISO just a means of raising more income for assessment agencies and consultants? It took a long time for businesses to find their way to integrate ISO 9000/14000 and OHSAS Thinking practitioners want just one management system, rather than little boxes which compartmentalise everything. Several managers contacted for this research were unfamiliar with ISO One commented: I have to say that I m not familiar with ISO so can t at this stage comment on its merits. We do have accreditations in 9001 and and are currently looking to be accredited in 27001[information security] later this year. All of which currently stand on their own and therefore costs us the pleasure for doing so not only financially but in time/effort as well. Our approach though is to single out the standard that best positions us to our current and potential client base; carry out all the justifications for proceeding (and thankfully we have been pretty good at implementing these) so we can show the impact of the process fairly easily and what the cost/return of the exercise has been. Once in place and a bedding-in period has been achieved we will then look to consolidate standards where applicable. On the surface I d agree that more consolidation could take place within the ISO standards but this may not always appease the market place as the true global brands that we deal with have their own agenda when it comes to Management systems and you then need to adhere to that in order to do business with them regardless of how many or consolidated ISO accreditations you have. Yes, it helps but doesn t get you on their vendor list until you have been vetted by their own internal global Teams. [Liddle 2009]. One of the advantages put forward for standardization is that it reduces the need for government regulation. This could be another agenda behind the introduction of a so-called CSR standard. Very few governments have so far introduced legislation. ISO could forestall intervention and maintain the voluntary nature of CSR initiatives, whereas practitioners argue that only legal and compulsory regulation will stem the power of large corporations. 5

7 Corporate Social Responsibility 9 Another problem is that ISO standards are not the norm in every sector. It is clear for example that UK retailers do not favour the current ISO 9000 or series of standards. Retailers look for specific outcomes and their systems focus on monitoring the achievement of these outcomes. If retailers all operate their own systems within their supply chains, with the British Retail Consortium Standards 6 often used as a required minimum, ISO is not going to have any significant impact on this huge business sector. In addition, ISO standards are not always applied to all parts of the same company. There is no guarantee that ISO would be comprehensively applied and consumers could potentially be misled. Tallontire [2007] provides a useful overview of the variety of standards in the agri-food chain and expands on this problem of public versus private standards, and the proliferation of new sets of rules and ways of playing the game. There are also managers who argue that standards imposed on the supply chain companies are a restraint on trade. It is important, then, to ask why the International Standards Organization [ISO] is preparing a standard for CSR. How is it possible to comply with CSR, which is a value system demanding: the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. [WBCSD 1999] Few managers will agree with Jeffrey Hollender, quoted by Worldwatch, that CSR will lose credibility if there are no standards. However, this raises a key question: what do people mean when they use the word Standard the word means different things to many people. Does Hollender mean certifiable by a third party, or does he mean guidance? There are many frameworks which companies are already using as guidelines. Yet there are those who still prefer compliance [often associated with prescriptive measures or regulation], and do not recognize that TQM and CSR are both about culture change, not ticking boxes. There is still a corporate mentality that prefers the traditional hierarchical, command and control approach to organization, rather than an inclusive, partnership style. The latter takes a processual management stance an integrated, holistic view of organizations that avoids functional silos. 6

8 10 P. Collins Fig. 1. Processual management Rys. 1. Zarządzanie procesowe Others such as USA company B Corp 7 endorse this view. B stands for beneficial and be the change we seek. They suggest that a new type of corporation which creates benefit for society, not just shareholders is required. Their certification scheme requires businesses to change their Articles of Incorporation. This perception contrasts with the views of Richard Welford [2009], Director of CSR Asia, who thinks that ISO will end up as a standard of standards...global Compact represents a subset of ISO and has a limited role in that context. Welford also believes that ISO will be useful as then he can go to companies who think they are doing CSR [and are not] and show them a definition of what CSR really comprises. It can be argued that there are so many agencies already providing such information that an additional one will further confuse the situation. There is absolutely no guarantee that ISO will become a standard of standards. If we accept that there are three main sub-divisions, a further complication is that difference measures are required for each element of CSR. It is relatively easy to find performance measurements for environmental concerns. Frynas [2009] has written a comprehensive review of CSR in the oil and gas industries. He points out that it is easier to 7

9 Corporate Social Responsibility 11 measure technical solutions than social ones. Shell or BP have regularly monitored reductions in greenhouse gas emissions for example. However, where such companies need to improve is in the impact of their operations. Frynas states that there are no systematic attempts to measure the actual impact of oil operations on air quality, water quality, or the health of the local communities [p. 85]. Thus the quality of their reporting is perhaps insincere, and is certainly incomplete. Oil companies have such huge lobbying power, voluntary cooperation is insufficient. Porter and van der Linde [1995] commented that businesses spend too many of their environmental dollars on fighting regulation and not enough on finding real solutions. They believed that regulation was required, among other things to level the playing field during the transition period to innovation-based environmental solutions, ensuring that one company cannot gain position by avoiding environmental investments. Anyone trying to impose a single standard will lose the spirit of CSR just as the quality movement for a time lost its way until it evolved from a set of tools to a philosophy of business excellence. One reason for the renaissance of the quality movement was the introduction of the assessment processes such as the European Foundation for Quality Management Model. The EFQM 8 model has it about right where CSR is one of the eight Fundamental Concepts that underpin the model. The Concept given in the Model is Excellence is exceeding the minimum regulatory framework in which an organisation operates and to strive to understand and respond to the expectations of stakeholders in society. The Model then gives some ideas how to put the concept into practice. The Model includes a section on impact on society which many companies are now using as the basis of their integrated quality and CSR systems. Assessment is very different from audit, and encourages ownership of the processes. As John Pimblott, Business Excellence Consultant put it, Until institutions think across rather than down we are not going to make much progress in areas like CSR. All the Excellence models have CSR linkages as part of their core across the management model. There are no CSR-labelled criteria as such they are part of the society results criteria - but the concept of red threads across the Model is key here. In the EFQM Model threads, CSR has specific threads/links to leadership; policy and strategy, people, partnership and resources, processes and all the results sections. It is here, in developing those criteria in the business excellence models, that managers should be putting their efforts. The idea that any Standard will have to cover all the enabling approaches just described is not going to happen. Even in the EFQM model, the weighting currently given to society results is still only 6%. However, the Model is under review and this is one area which is likely to be subject to change [as yet 8

10 12 P. Collins unknown]. The timeframe for this review is for considerations and discussions to take place over the next two years. There are also various reporting mechanisms, such as the Global Reporting Initiative [GRI]. 9 The effectiveness of these depends on the sector and the intended audience of the report, but allows consumers to see the efforts that companies are making to address CSR issues. Global clothing brands for example, are strong users of the GRI as they are aiming at a global opinion forming audience. UK retailers on the other hand have a very much more diverse approach with only three using GRI at all and even then in a much more selective manner. Similarly, only these three retailers use any form of credible third-party assurance for the information contained in their reports. The vast majority of UK retailers including some major 'names' do not report on sustainability issues at all. Public pressure for more transparency is slowly resulting in more GRI reporting. Another argument against ISO is the success of SA 8000, now over 10 years old. Leipziger [2009 p. 2 & 3] states that: Voluntary standards were established because governments alone seemed unable or unwilling to assure decent work on a global basis. Clearly the private and the public sectors need to work together to reach this goal. She continues: Voluntary programs are no substitute for government regulation, but they can play a crucial supportive role, fostering a culture of compliance. Her book presents a series of success stories that show that the social side of CSR is already well covered by SA A particularly good example of a culture change is the TNT story Kofi Annan, former UN Secretary-General, praised the company for its a partnership with the UN World Food Program in 2002 Moving the World. To embed CSR into our organizations requires a level of culture change and acceptance of social as well as environmental stewardship which almost certainly cannot be achieved through voluntary compliance. ISO does not intend to include certification so will have no teeth, so it is doubtful that it can add value to the frameworks we already have. There are already tried and tested assessment methods which can be developed further: various third party standards for issues requiring risk management such as the ETI 10 / ILO 11 base code on labour standards; FSC 12 / MSC 13 on wood/fish sourcing; the EFQM model; and GRI. Large corporations recognize these and are learning to adapt. The public, quality managers, consumers, and end-users have to challenge all organizations to use their power for the common good essential for their survival and the survival of the planet. It is very doubtful

11 Corporate Social Responsibility 13 that ISO will be able to accommodate all these initiatives worldwide as Welford suggests. Burdening managers with new audit schemes is more likely to result in bureaucracy and extra staff just what they do not want. Whilst implementing the various stages of Quality management, managers quickly discovered that there is no one-size-fits-all. Bjorn Stigson, President of the World Business Council for Sustainable Development, said the same thing about CSR and strongly believes that business cannot survive in societies that fail. As long ago as 1999 Stigson was telling people that no one code, guideline, value or indicator would suffice. He said that each company must determine what works best for them globalize your values recognize that operating contexts are highly variable raise standards but also caution as to the protectionist agenda. State what you stand for and be accountable. 14 An example of this can be found within Mars Inc: their Five Principles clearly set out their concepts of responsibility and mutuality: The principle of Responsibility applies to every level within Mars, from the associate s obligation to maintain the highest standards of honesty and integrity to the company s ethical responsibility to its communities and the environment. Because we value and recognize each other s contributions, we treat all associates fairly and equitably, avoid divisive privileges and disapprove of disrespectful behaviour of any kind. This is the source of the word associate and of the egalitarian spirit at Mars, which is our policy and practice regardless of age, gender, race or religious belief. As such we must have the courage to call attention to those associates not behaving according to our values. We believe that if what we say and what we do are consistent with our principles, we will achieve the results we seek. 15 In the long run, there can be no escape from legislation as consumer and end user expectations continue to rise. Traditional organisation structures have to adapt to address these expectations and that will be a continuous challenge. The balance may often be decided by the nature of the business and the extent to which legal stipulations apply. This can be explained quite simply by taking the example of the tightening of regulations on chemical substances - their use and movements around the world. In this case the rules are very explicit and there are clear restrictions against non-compliance which literally can prevent business being conducted. In this way there is little option but to ultimately comply. CSR does not currently hold such an iron grip on businesses. Growing consumer expectations cannot be ignored but CSR would gain if the word corporate was to be removed so that consumers and business recognized their joint responsibility. Kakabadse et al [2007, p. 1] quoted a senior director who affirmed that We August

12 14 P. Collins have gone beyond making the annual report look good. I think CSR is beginning to take hold. There is, however, a long way to go before CSR is rooted in organizational culture in the way in which Quality has become embedded. Henderson [2006, p. 232] succinctly summed up the current situation: Today, our increasingly crowded, polluted planet is mirroring back to humans the unsustainability of our fossil-fuelled industrial technologies and life-styles... We are reconnecting the dots learning the first law of ecology: Everything is connected to everything else...we have learned that narrow, fragmented, short-term thinking is now too costly and is unsustainable. When seen in a planetary context, we understand that all our self-interests are identical! Morality has become pragmatic. Acknowledgements Many thanks to Dr John Pimblott for his review of the first draft and helpful suggestions. Thanks also to my business colleagues who have contributed to the discussion. Dr Philippa Collins is currently researching the impact of CSR initiatives in operations management. She was formerly Course Director, MSc Business Management at Heriot Watt University, Scotland. Previously she has worked with several companies on process improvement and quality management projects, including Digital Equipment UK, Gates, Ford of Europe and British Telecom. She would be pleased to receive further contributions for her research please contact Bibliography 1. Adams G.: And then there were five. The Independent 2009, 13 October. 2. Collins P.: Ethical Manufacturing, [in:] Wankel C. (ed.): 21 st Century Management: A Handbook, Sage Publications Inc., Collins P.: Operations Management: Challenges in the 21 st Century. Conference Proceedings Innovation in Management cooperating globally. Held at Poznan University College of Business and Foreign Languages, May 21 st -22 nd Burtynsky E.: Manufactured Landscapes. Directed by Jennifer Baichwal. Bfi Video, Frynas J.G.: Beyond Corporate Social Responsibility oil multinationals and social challenges. Cambridge University Press, 2009.

13 Corporate Social Responsibility Henderson H.: Ethical Markets growing the green economy. Chelsea Green Publishing, Kakabadse A., Kakabadse N. (eds.): CSR in Practice Delving. Deep Palgrave, MacMillan Leipziger D. (ed.): SA 8000 The First Decade. Greenleaf Publishing Liddle D.: Sykes Ltd Personal communication, Porter M.E., van der Linde C.: Green and competitive: ending the stalemate. Harvard Business Review1995, no Tallontire A.: CSR and Regulation: towards a framework for understanding private standards initiatives in the agri-food chain. Third World Quarterly 2007, vol. 28 (4). 12. Welford R.: CSR Asia Personal communication, Reviewers: Dr hab. Agata Stachowicz-Stanusch, Prof. nzw. w Pol. Śl. Prof. dr hab. Maria Nowicka-Skowron

14 Aleksandra CZUPRYNA-NOWAK Silesian University of Technology Faculty of Organization and Management Department of Computer Science and Econometrics EFFICIENCY DETERMINANTS OF INFORMATION SYSTEMS IN MANAGING THE COMPANY Summary. Nowadays, when every activity of a company is burdened with huge uncertainty, companies willing to survive in open market s reality target their activities at limiting investments which are unprofitable and which don t bring measurable benefits. It is similar with integrated information systems. Despite the fact that their goal is to bring unmeasurable benefits, it would be good for the enterprise of introduction of integrated information systems to be efficient and effective. The article shows integrated information system s users opinions as far as efficiency of these systems is concerned. Keywords: integrated computer system, effectiveness, enterprise management DETERMINANTY WYDAJNOŚCI SYSTEMÓW INFROMATYCZNYCH W ZARZĄDZANIU FIRMĄ Streszczenie. W dzisiejszych czasach, gdy każda działalność firmy jest obciążona ogromną niepewnością, przedsiębiorstwa pragnące przetrwać w rzeczywistości otwartego rynku ukierunkowują swoje działania na ograniczanie inwestycji, które są niedochodowe i które nie przynoszą mierzalnych korzyści. Podobnie jest ze zintegrowanymi systemami informatycznymi. Pomimo, iż ich celem jest dostarczanie niemierzalnych korzyści, istotnym dla przedsiębiorstwa jest wprowadzenie zintegrowanego systemu informatycznego, który jest skuteczny i wydajny. Artykuł przedstawia opinie użytkowników zintegrowanych systemów informatycznych dotyczące wydajności tych systemów. Słowa kluczowe: zintegrowane systemy informatyczne, efektywność, zarządzanie przedsiębiorstwem

15 18 A. Czupryna-Nowak 1. Introduction Currently, there are about 200 producers of information systems supporting management process operating in Polish market. It is not true that every system can be implemented in any company. Hence, the producers of the systems naturally divided themselves into producers specialised in providing systems for small, medium and large companies, public administration and banks. In report from April 2006 the authors made a comparative analysis of information systems. This report showed only that proposed systems are not very different form each other, they include the same modules, they can similarly adjust to processes in the company [13]. On the other hand, on companies market different finals of introducing information systems can be observed. Some of the companies buy the system only for improving their image in the market and they do not even try to introduce the bought system, others give up introduction stage. So, if the systems on offers are not very different, and buying them the companies presuppose that the system will not be used, or the introduction process will not be completed which make it impossible for them to benefit from the possibilities given by the bought system, it is possible to make a thesis that using these systems is senseless and groundless. However, the enumerated cases are exceptions, and benefits given by information system are worth it to take a risk of purchase and attempt to implement it. Any implementation, however, should be economically justified and graded from the rationality of the introduction point of view. Grading any activity we grade also efficiency of the activity. Likewise, the information systems. The efficiency can be evaluated from the performance and effectiveness poing of view. K. Sobolewski [14] claims that if the methodology of determining the level of effectiveness is the subject of the survey then the survey should concern three aspects: complete list of features which the sought effectiveness indicator should include, elements of the given feature which fully describe this feature and level of minuteness given in the measure which will be finally introduced in order to estimate the given indicator. Then, the author conditions finding the correct quantitive term of effectiveness level on taking into account these three aspects in the sought formula. The article concerns the first aspect enumerated by K. Sobolewski, namely the lists of features which the sought indicator of effectiveness of integrated information systems should include. The aim of the article is to identify effectiveness determinants of integrated information systems and to present them in categories of importance. It consists of two parts. Part one is identification of efficiency determinants of integrated information systems. The identification was conducted in the main areas of company s activities. Part two is selecting main classes of importance of separated determinants. It is important to mention here that the article includes fragment of doctoral thesis of the author [2].

16 Efficiency determinants of information systems The issue of integrated systems Effectiveness of integrated systems seems to be a very important issue. It is because the benefits the company can gain from introducing information system are quite considerable. According to American Production and Inventory Control Society implementing of integrated system brings results [6]: increase of work efficiency for 10 19%, profitability increase up to 50%, reduction of reserves for about 50 70%, reduction in order reaction time for about 20-40%, improvement of delivery time up to 95%. Of course, the implementation results depend on many factors, such as branch within which the company operates, sector, company s strategy or the process of implementing the system. Productivity of the system is its property which is extremely difficult to define. It is because the productivity itself is in many publications very often mistaken or interchangeably used with such concepts as: effectiveness, efficiency, productivity or perfomance. In fact, these concepts are synonymous, however, they are not identical and treating them in such a way is a methodological mistake. Quoting T. Kotarbiński [7] it is... action that leads to result intended as a goal... Similar definition is given by J. Stoner [18]: it is... ability to set appropriate goals: doing the right things... Efficiency is most often erroneously identified with effectiveness. Effectiveness is a result of taken actions, described relation of results to the outlays invested. Effectiveness measurements are done on the basis of fragmentary, syntetic indicators of productivity and resources usage. Effectiveness can be determined according to ex post and ex ante. Assessing ex ante effectiveness, the foreseen results with the engagement of particular recources eg. time are estimated. According to ex post, the foreseen results are juxtaposed with particular results of particular actions. The consequence of effective action is its efficiency, so, if the action is effective it is also efficient. Efficiency entails not only effectiveness, but also accuracy and economicality. T. Kotarbiński claims that efficiency is totality of positive features of practical actions. Alongside efficiency, the effectiveness belongs to the main criterium of economicality and quality of action. It is function of the action itself as well as the system which is realizing given task.

17 20 A. Czupryna-Nowak 3. Areas of efficiency of integrated systems in managing the company Factors of efficiency of integrated systems have been identified in certain areas of company s activities. Efficiency of information system is influenced not only by those factors which are connected with the system, but also those which result from the environment in which the system operates. The company however, is not separated creation. It operates in certain environment which influences it, forcing changes. The company environment while forcing changes in the company also forces changes in the information system. Efficiency determinants where thus identified in the area of the company environment, the company alone and information system. Identification of determinants was also broadened including human factor connected with information system which is its creators and users. Areas in which the efficiency determinants were sought were marked: I company s environment, II companies, III information systems creators and IV information system. Determinants are shown in successive tables of the article. Determinants resulting from outside environment of the company are shown in Table 1. It is worth remarking that the factors appointed in this group are of general character. However, in other groups it is also possible to find factors connected with the company s environment. Efficiency determinants resulting from external environment of the company Name of the determinant Society s acquaintance with information technology (I/1) Level of education and qualifications on the labour market (I/2) Stability and cohesion of economic system (I/3) Stability and cohesion of legal system (I/4) Level of information culture (I/5) Changes rate on the market of company s activity (I/6) Rate of exchange (I/7) Regulations connected with obligation to obey the production and technological norms (I/8) Inflation (I/9) Changes in market shares (I/10) Source: Own study. Table 1 For example in the group of determinants connected with information system there are determinants connected with Polish legislation concerning enterprise (VAT Tax Act, Accounting Law, Income Tax Act, Entrepreneurship Act, International Accounting Standards) (IV/27), ZUS regulations (IV/22), ISO norms (IV/23), environmental protection norms (IV/24) and regulations concerning obeying productivity and technological norms

18 Efficiency determinants of information systems 21 (I/8). In the second group there are determinants connected with production company. To this group belong 30 determinants, among which the most important seems to be the size of the comapny. The object of production company is manufacturing production realised through production processes. Complexity of these processes will also be significant in the process of purchasing the system (II/16). The efficiency of system implementation will also be affected by sort and quantity of manufactured products (II/11), type of production (II/12), product s place in its cycle (II/15) and production scale. Production of big products in small quantities is very obstructive. Frequent changes of production plan, changes in production schedule and material demands forces need to form flexible system which will enable introduction of plan changes in such a way that it would cause minimum perturbations [1], [5]. The next group is a group of determinants connected with creators of information systems. It s imperative to notice that these are mostly determinants connected with features of character which the creators as well as users of the systems should possess. Part of the determinants refers to relations which should be present during information system implementation. Problems connected with introduction of information system incrsimplicity importance of the whole process in relation to information system [6], [8], [10]. Table 2 Efficiency determinants of information systems connected with production company Name of the determinant Size of the company (II/1) Having standards by the organisation (II/2) Clarity of standards and procedures which are obligatory in the company (II/3) Organisation culture (II/4) Management style (II/5) Vision and strategy of company s activity (II/6) Organisation structure (II/7) Organisation structure formalisation rate (II/9) Quality of company s information system (II/10) Inclination to invest (II/11) Quantity of products produced (II/12) Production process type (II/13) Production cost (II/14) Automatisation rate of production process(ii/15) Life cycle of the product (II/16) Complexity rate of productive processes(ii/16) Clearly set goals of informatisation of the comapny(ii/17) Propensity to risk taking (II/18) Position of IT departament in the company s organisation structure(ii/19)

19 22 A. Czupryna-Nowak con. tab. 2 Simplicity of gaining funds for investments (II/20) Employees engagement it the process of informatisation of the company(ii/21) Users of information system acquaintace of information technology (II/22) Engagement and motivation of employees on the highest positions(ii/23) Employees conciousness of the goal of introduction of information system(ii/24) Educational structure in the company(ii/25) Employees fluctuation in the company(ii/26) Employees training(ii/27) Educational level of employees(ii/28) Earnings level in the company(ii/29) Employees identification with the mission of the company(ii/30) Source: Own study. Table 3 Efficiency determinants of information system connected with creators of the systems Name of the determinant Information systems creators knowledge of the problems of work organization and management (III/1) Ability to work in a team (III/2) Approach to clients (III/3) Knowledge of methods, techniques and managerial tools by the creators of information systems (III/4) Information system creators interpersonal and communicative skills (III/5) Information system creators assertive abilities (III/6) Pro-active approach to solving clients problems (III/7) Information system creators personal culture (III/8) Information system creators ability to work under stress and in conflicting situations (III/9) Information system creators salary (III/10) Experience and knowledge of systems designers (III/11) Information system creator education (III/12) Source: Own study. Table four includes efficiency determinants connected with information system itself. In the group of these determinants there are 32 determinants. Users in research over factors emphasised importance of possibility of various changes which can be introduced during information system usage. The next very important issue is information systems opennes for cooperation with other application programmes (IV/7). Openness of information system means that there is possibility to broaden the systems with new modules and joining it with

20 Efficiency determinants of information systems 23 the external systems. It is essential for information systems to enable cooperation with eg. office applications (MS Office, OpenOffice) 1. Adjusting information systems to office packages brings additional benefits. Users who are used to working with office packages will learn faster how to work with integrated information system (IV/17). Additionaly, if the interface is clear (IV/18) employees training can be shortened significantly which will decrease system implementing cost. It also brings additional benefit, namely, the users which are used to working in one environment will find it much easier to adapt to the new environment. Table 4 Efficiency determinant sof information system connected with information system Name of the determinant Flexibility of information system (IV/1) Complexity of information system (IV/2) Time of data availability (IV/3) Life cycle of the system (IV/4) Reliability of data in the system (IV/5) Metod of system formation (IV/6) System s communication with environment (IV/7) Functional complexity of the system (IV/8) Data safety (IV/9) System personalisation (IV/10) Sort of used equipment platform (IV/11) Sort of client/server architecture (IV/12) System purchase cost (IV/13) System service cost (IV/14) Information system modules integration (IV/15) Information system stability (IV/16) Simplicity of interface service (IV/17) Interface clarity (IV/18) Easy communication with the system (IV/19) System conformity with tax directives and UE customs code (IV/20) System s conformity with work safety and hygiene regulations (IV/21) System s conformity with ZUS regulations (IV/22) System s conformity with ISO norms (IV/23) System s conformity with environmental protecion norms (IV/24) System s conformity with work procedures obligatory in given company (IV/25) 1 An example of integrated information system adjusted to office applications is DUET system which was created as a result of Microsoft cooperation with SAP,

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