December 1999
IM218 :INFORMATION MANAGEMENT

QUESTION 2

Total Marks: 15 Marks

• Question 1
• Question 3
• Question 4
• Question 5
• Cover Page

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SUGGESTED SOLUTIONS
for Question 2

Give one disadvantage each of locating data processing functions within user departments and within a service department.

When should one choose an independent location, directly under the control of the head of the organization, in favour of locating data processing functions within a service department?

Application organization (AO), functional organization (FO) and matrix organization (MO) are three approaches to organizing data processing activity.

(i) What is the main advantage of AO, compared to FO? [1mark]

(ii) What is the main disadvantage of AO, compared to FO? [1 mark]

(iii) Describe a problem of FO, and explain how it is alleviated by MO.
[2 marks]

Your organization is planning to set up a data processing department. Management has found that there is a shortage of managerial and data processing staff in the organization, and recruitment of such staff is difficult at the present time.

(i) Should the organization adopt a centralized or a dispersed data processing department? Justify your decision. [1 mark]

(ii) Outline two advantages and two disadvantages of your choice. [4 marks]

Briefly discuss how the advancement of information technology in each of the following areas has encouraged decentralization of data processing.

(i) invention of personal computers;

(ii) proficiency of end-users;

(iii) advances in security.