To analyzed and design appropriate information systems, system analysts need to comprehend the organizations they work in as systems shaped through the interactions of three main forces: the levels of management (organizational levels) design of organizations and organizational culture.

Organization are large systems compose of interrelated subsystems. The subsystems are influence by three board levels of management decision makers (operations, middle management, and strategic management) that cut horizontally across the organization system. Organizational cultures and subcultures all influences the way people are subsystems interrelate.

Organizations are usefully conceptualized as systems designed to accomplish predetermined goals and objectives through people and other resources that they employ. Organization are composed of smaller, interrelated systems (department, units, divisions, etc,) serving specialized functions. Typical functions include accounting, marketing, production, data processing and management. Specialized functions (smaller systems) are eventually reintegrated through various mechanisms to form an effective organizational whole.