a. The Two-Way Relationship Information systems and organizations have a mutual influence on each other. On the other hand, information systems must be aligned with the organization to provide information needed by important groups within the organization. At the same time, the organization must be aware of and must open itself to the influences of information systems to benefit from new technologies. Information systems affect organizations necessarily affect the design of systems. These include the organization's structure, standard operating procedures, politics, culture, surrounding environment, and management decisions. Managers, after all, decide what systems will be built, what the systems will do, how they will be implemented, and so forth. To a large extent, managers and organizations choose the "computer impacts" What is an Organization? An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs. This technical definition focuses on three elements of an organization. Capital and labor are primary production factors provided by the environment. The organization transforms these inputs into products and services in a production functions - a process that transforms capital and labor into a product. The products and services are consumed by environments in return for supply inputs. The behavioral definition of an organization is that it is a collection of rights, privileges, obligations, and responsibilities that are dedicatedly balanced over time through conflict and conflict resolution. The technical and behavioral definitions of organizations are not contradictory. Indeed, they complement one another: The microeconomic definition tells us how thousands of firms in. Competitive markets combine capital and labor and information technology, whereas the behavioral model takes us inside the individual firm to describes how theories based on each of these definitions of organizations can help explain the relationship between information systems and organizations.