The c89 command allocated the indicated data set, for which the indicated data set member was specified, and discovered that it is a sequential data set. Sequential data sets do not have members.
For compiler objects, since the name is derived from the source data set name, the source and object data sets must have the same organization (partitioned or sequential).
In the message text:
string1 is the data definition name. string2 is the data set name. string3 is the member name.
c89 "//myprog.c"
If the source data set and object data set organizations are not the same, you need to delete (and optionally preallocate) the object data set so the organizations are the same before reissuing the c89 command.