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Management Information Systems By Effy Oz & Andy Jones Chapter 9: Managers and Their Information Needs www.cengage.co.uk/oz Learning Objectives Explain the link ... – PowerPoint PPT presentation

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Title: Management%20Information%20Systems%20By%20Effy%20Oz%20


1
Management Information SystemsBy Effy Oz Andy
Jones
Chapter 9 Managers and Their Information Needs
www.cengage.co.uk/oz
2
Learning Objectives
  • Explain the link between an organizations
    structure and information flow
  • List the main functions and information needs at
    different managerial levels
  • Identify the characteristics of information
    needed by different managerial levels
  • Recognize the influence of politics on the design
    of, and accessibility to, information systems

3
Learning Objectives (continued)
  • Describe the ways in which IT personnel are
    deployed in organizations
  • List and explain the advantages and disadvantages
    of various personnel deployments
  • Explain the importance of collaboration between
    IS managers and business managers and describe
    the relationship between the two groups

4
Managers and Information
  • Different levels of managers need different types
    of information for different types of decisions
  • Increased flexibility of IS allows for changes in
    organizational structure
  • Politics of information is an issue

5
The Traditional Organizational Pyramid
  • Many organizations follow pyramid model
  • CEO at top
  • Small group of senior managers
  • Many more lower-level managers
  • Clerical and Shop Floor Workers
  • No management-level decisions required
  • Operational Management
  • Comply with general policies handed down

6
The Traditional Organizational Pyramid (Cont.)
  • Tactical Management
  • Wide-ranging decisions within general directions
    handed down how to do it decisions
  • Strategic Management
  • Decisions affect entire or large parts of the
    organization what to do decisions

7
The Traditional Organizational Pyramid (Cont.)
8
Characteristics of Information at Different
Managerial Levels
  • Data Scope
  • Amount of data from which information is
    extracted
  • Time Span
  • How long a period the data covers
  • Level of Detail
  • Degree to which information is specific

9
Characteristics of Information at Different
Managerial Levels (Cont.)
  • Source Internal vs. External
  • Internal data collected within the organization
  • External data collected from outside sources
  • Media, newsletters, government agencies, Internet

10
Characteristics of Information at Different
Managerial Levels (Cont.)
  • Structured and Unstructured Data
  • Structured data numbers and facts easily stored
    and retrieved
  • Unstructured data drawn from meetings,
    conversations, documents, presentations, etc.
  • Valuable in managerial decision making

11
Characteristics of Information at Different
Managerial Levels (Cont.)
12
The Nature of Managerial Work
13
Planning
  • Planning at different levels
  • Long-term mission and vision
  • Strategic goals
  • Tactical objectives
  • Most important planning activities
  • Scheduling
  • Budgeting
  • Resource allocation

14
Planning (Cont.)
15
Planning (Cont.)
16
Controlling
  • Control activities by comparing plans to results

17
Decision Making
  • Both planning and control call for decision
    making
  • The higher the level of management
  • The less routine the managers activities
  • The more open the options
  • The more decision-making involved

18
Management by Exception
  • Review only exceptions from expected results that
    are of a certain size or type to save time

19
Leading Managers Require these Skills and
Abilities
  • Vision and creating confidence in others
  • Encouraging and inspiring subordinates
  • Initiating activities for efficient and effective
    work
  • Creating new techniques to achieve corporate
    goals
  • Presenting a role model for desired behavior
  • Taking responsibility for undesired consequences
  • Delegating authority

20
Organizational Structure
  • IT Flattens the Organization
  • Eliminates middle managers

21
The Matrix Structure
  • People report to different supervisors, depending
    on project, product, or location of work
  • More successful for smaller, entrepreneurial
    firms
  • IT supports matrix structure
  • Easier access to cross-functional information

22
The Matrix Structure
23
Managers and TheirInformation Systems
24
Transaction-Processing Systems (TPS)
  • Capture and process raw materials for information
  • Interfaced with applications to provide
    up-to-date information
  • Clerical workers use TPS for routine
    responsibilities
  • Operation managers use TPS for ad-hoc reports

25
Decision Support Systems (DSS) and Expert Systems
(ES)
  • DSS and ES support more complex and nonroutine
    decision-making and problem-solving activities
  • Used by middle managers as well as senior managers

26
Executive Information Systems (EIS)
  • Provide timely, concise information about
    organization to top managers
  • Provide internal as well as external information
  • Economic indices
  • Stock and commodity prices
  • Industry trends

27
Information, Politics, and Power
  • Politics
  • Development and control of ISs often involves
    problematic politics
  • Power
  • Information affords power which can be
    problematic
  • Who owns the system?
  • Who pays for developing the system?
  • Who accesses what information?
  • Who has update privileges?
  • The Not-Invented-Here Phenomenon

28
Ethical and Societal IssuesElectronic Monitoring
of Employees
  • The Microchips Are Watching
  • Video cameras
  • Software to count keystrokes
  • Artificial intelligence to monitor cash
    disbursement and detect fraud
  • Monitoring e-mail and Web access

29
Ethical and Societal IssuesElectronic Monitoring
of Employees
  • The Employers Position
  • Entitled to know how employees spend time
  • Believe monitoring is an objective,
    nondiscriminatory method to gauge output
  • The Employees Position
  • Deprives them of autonomy and dignity
  • Increases stress and stress-related illness and
    injury

30
Management of Information Technology Resources
  • Centralized Management
  • Staff positions and departments in strict
    vertical hierarchy
  • Control of organization in few hands
  • Decentralized Management
  • Delegates authority to lower-level managers
  • IS often follows management pattern

31
Centralized vs. Decentralized Management
  • Advantages of Centralized IS Management
  • Standardized hardware and software
  • Efficient administration of resources
  • Effective staffing
  • Easier training
  • Common reporting systems
  • Effective planning of shared systems
  • Easier strategic planning
  • Efficient use of IS personnel
  • Tighter control by top management

32
Centralized vs. Decentralized Management (Cont.)
33
Centralized vs. Decentralized Management (Cont.)
  • Advantages of Decentralized IS Management
  • Better fit of ISs to business needs
  • Timely response of IS units to business demands
  • Encouragement of end-user development of
    applications
  • Innovative use of ISs
  • Support for delegation of authority
  • Less competition for resources

34
Centralized vs. Decentralized Management (Cont.)
35
Centralized vs. Decentralized Management (Cont.)
36
Organizing the IS Staff
  • Central IS Organization A corporate IS team over
    all units
  • IS Director oversees several departments
  • Usually involved in every aspect of IT
  • Often includes a steering committee
  • Often easier to integrate an IS plan in a
    centralized IS organization

37
Organizing the IS Staff (Cont.)
38
Organizing the IS Staff (Cont.)
  • Dispersed IS Organization
  • Each unit fulfills its IS needs individually
  • Each business unit has one or several IS
    professionals
  • Funds for development and maintenance of units
    IS own budget
  • Decisions made independently

39
Organizing the IS Staff (Cont.)
40
Organizing the IS Staff (Cont.)
  • A Hybrid Approach
  • Small companies use the central approach
  • Midsize and large use elements of central and
    decentralized approaches
  • Handled according to the position of the highest
    IS officer in the organizational structure

41
Business Managers Expectations of an IS Unit
  • Broad understanding of business activities
  • Flexibility and adaptability
  • Prompt response to the information needs of the
    business unit
  • Clear, jargon-free explanation of what technology
    can and cannot do for the unit

42
Business Managers Expectations of an IS Unit
(Cont.)
  • Candid explanations of what information systems
    can and cannot do
  • Honest budgeting
  • Single point of contact

43
IS Manager Expectations of Business Managers
  • Business planning
  • Systems planning
  • Systems selection or development
  • Participation and partnership

44
Summary
  • Organizations are run by managers
  • Senior managers make decisions that affect the
    entire organization
  • Middle managers receive strategic decisions as
    general directives within which they develop
    tactics to achieve specific objectives
  • Operational managers are responsible for daily
    operations

45
Summary (continued)
  • Operational managers use transaction processing
    systems to generate reports
  • Clerical and other workers typically carry out
    their supervisors' orders
  • A major task of middle managers in the past was
    to screen information and pass it on to
    higher-level managers

46
Summary (continued)
  • Because information is power, occasionally
    managers try to obtain power by controlling ISs
    beyond their real business needs
  • Information technology provides very effective
    and inexpensive means of monitoring employees on
    the job
  • There are many ways to organise IS staff

47
Summary (continued)
  • Successful use of IS technology depends on an
    understanding and collaboration between managers
    of business units and IT managers
  • IS managers expect business managers to project
    their future information needs, clearly explain
    the business processes that ISs should support
    and thoroughly detail features they desire in a
    new IS
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