Information Systems as Control Mechanisms

Just completed reading Orlikowski’s “Integrated information environment or matrix of control? The contradictory implications of information technology.”

This paper describes a research project undertaken to understand how organizations use information systems as control mechanism. The author used a ethnographic research method during this project over the course of the eight month research project.  The author collected data using participant observation, interview, documentation review, and historical documents (Orlikowski, 1991).  To perform this research, the author selected five specific projects to analyze deeply for how the organization (a company called SCC) had implemented control mechanisms using information technology as well as other managerial control types.

The author claims that there were there forms of control found at SCC with two being internal control mechanisms and one being an external control method.   Internal control mechanisms are what are considered ‘normal’ methods of control and are implemented via systems (using technology, organizational processes, etc) and social structure and organizational culture (using personal controls mechanisms) (Orlikowski, 1991). External forms of control are found outside of an organization with professional associations and certifications for specialized job functions.   The author found both internal and external controls being used at SCC through this research project and reported on these controls and their effects throughout the organization.  A brief summary of these controls follows.

During this research, the author found that there were multiple forms of systemic and personal control mechanisms.  In particular, the forms of control were found to be based around organizational structure, human resource policies, knowledge of processes and development, cultural, socialization and technological tools and supervisory controls (Orlikowski, 1991).   The author notes that over the course of eight years, the organization implemented information systems to help implement these control mechanisms and found these systems to be helpful in implementing current and new forms of control.

One of the stated goals of this research was to understand if and/or how information systems can create organizational change by “loosening the hierarchical stranglehold on organizational practices, creating networked and lateral relations that can usher in new organizational forms and practices” (Orlikowski, 1991, p. 9).  The author doesn’t believe that information systems can, by themselves, bring about this change and, based on the outcome of this research, this viewpoint is backed up.  The systems implemented by SCC to enforce systemic and personal controls were developed to follow the structure, processes and policies, therefore the systemic controls that were built to follow the existing controls did exactly that. SCC implemented a system to enforce control mechanisms that were already in place.

While I agree with the author’s findings that information technology can enforce control, I do believe that the use of information systems within organization can bring about a great deal of change throughout the culture, processes and organization.  With the right mindset in place, an organization can use information systems to bring about change but the organization has to want to change.  With the example shown in the SCC research project, the organization set about to implement current controls and improve upon those controls rather than allow those new information systems to change the culture of the organization.

References

• Orlikowski, W. J. (1991). Integrated information environment or matrix of control? The contradictory implications of information technology. Accounting, Management, and Information Technologies, 1(1), 9-42.