2.1 ORGANIZATIONS AND INFORMATION SYSTEMS The interaction between information technology and organizations is complex and is influenced by many mediating factors, including the organization’s structure, business processes, politics, culture, surrounding environment, and management decisions. Organization (in macro terms): capital and labor (the primary production factors provided by the environment) are transformed by the firm through the production process into products and services (outputs to the environment). The products and services are consumed by the environment, which supplies additional capital and labor as inputs in the feedback loop. It is : 1. more stable than an informal group such as longevity and routineness. 2. formal legal entities with internal rules and procedures that must abide by laws 3. social structures because they are a collection of social elements 4. a collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution 5. Behavioral view :people who work in organizations develop customary ways of working; they gain attachments to existing relationships; and they make arrangements with subordinates and superiors about how work will be done, the amount of work that will be done, and