chapter 9 manager and information their needs. 2 learning objectives when you finish this chapter,...
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Management Information Systems, Second EditionEffy Oz
Chapter 9Chapter 9Manager and Manager and Information their NeedsInformation their Needs
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Learning ObjectivesLearning Objectives
When you finish this chapter, you will
See the link between an organization’s structure and information flow.
Be able to list the main functions and information needs at different managerial levels.
Recognize the characteristics of information needed by different managerial levels.
Recognize the influence of politics on the design of, and accessibility to, information systems.
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The Organizational PyramidThe 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
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The Organizational PyramidThe Organizational Pyramid
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
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Characteristics of Information Characteristics of Information at Different Managerial Levelsat Different Managerial Levels
Figure 9.2 Characteristics of data and information for different levels of management
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Characteristics of Information Characteristics of Information at Different Managerial Levelsat Different Managerial Levels
Data Range 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
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Characteristics of Information Characteristics of Information at Different Managerial Levelsat Different Managerial Levels
Source: Internal vs. External Internal data: collected within the organization External data: collected from outside sources
Media, newsletters, government agencies, Internet
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
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The Web: The Web: The Great EqualizerThe Great Equalizer
Outside information now easier to get
More free information
Information available in easy-to-manipulate format
Data push: information tailored to specific business environments
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The Nature of Managerial WorkThe Nature of Managerial Work
Planning Planning at different levels
Long-term mission and vision Strategic goals Tactical objectives
Most important planning activities Scheduling Budgeting Resource allocation
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The Nature of Managerial WorkThe Nature of Managerial Work
Figure 9.3 An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturer
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The Nature of Managerial WorkThe Nature of Managerial Work
Figure 9.4 The main ingredients of planning
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13Figure 9.5 Examples of processes used to control projects
The Nature of Managerial WorkThe Nature of Managerial Work
Control Managers control activities by comparing
plans to results.
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The Nature of Managerial WorkThe Nature of Managerial Work
Decision Making Both planning and control call for decision
making
The higher the level of management: The less routine the manager’s activities The more open the options The more decision-making involved
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15Figure 9.6 An example of a budgetary exception report
The Nature of Managerial WorkThe Nature of Managerial Work
Management by Exception Managers review only exceptions from
expected results that are of a certain size or type to save time.
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The Nature of Managerial WorkThe Nature of Managerial Work
Leadership
Managers expected to lead, which requires Having a vision and creating confidence in others Encouraging and inspiring subordinates Initiating activities to make work efficient and
effective Creating new techniques to achieve corporate goals Presenting a role model for desired behavior Taking responsibility for undesired consequences Delegating authority
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17Figure 9.7 Information systems flatten managerial layers
Organizational StructureOrganizational Structure
IT Flattens the Organization Eliminates middle managers
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Organizational StructureOrganizational Structure
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.
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Organizational StructureOrganizational Structure
Figure 9.8 An example of a matrix organization
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Characteristics of Characteristics of Effective InformationEffective Information
Tabular and Graphical Representation Certain information better presented
graphically Trends as lines Distributions as pie charts Performance comparisons as bar charts
Many people prefer tabular data for complex problem solving
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Characteristics of Characteristics of Effective InformationEffective Information
Figure 9.9 Tabular and graphical presentations: the information in the two presentations is identical, but the trend is detected faster with the line graph.
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Characteristics of Characteristics of Effective InformationEffective Information
On-line Analytical Processing (OLAP) Cube of tables showing relationships
among related variables
Operates on specially organized data or on relational database data
Easily answers questions like “What products are selling well?” or “Where are the weakest-performing sales offices?”
Faster than relational applications
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Characteristics of Characteristics of Effective InformationEffective Information
Figure 9.10 OLAP applications provide information on multiple dimensions for management decision making.
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Characteristics of Characteristics of Effective InformationEffective Information
Dynamic Representation Data presented in real time
Includes moving images representing speed or direction
Changing colors represent rate of change
Use expected to grow
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Managers and Their Managers and Their Information SystemsInformation Systems
Figure 9.11 Types of information systems typically used at different levels of an organization’s hierarchy
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Managers and Their Managers and Their Information SystemsInformation Systems
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.
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Managers and Their Managers and Their Information SystemsInformation Systems
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.
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Managers and Their Managers and Their Information SystemsInformation Systems
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
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Information, Information, Politics, and PowerPolitics, and Power
Politics Development and control of ISs often involves
problematic politics
Power Information affords power; 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
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Ethical and Societal IssuesEthical and Societal IssuesElectronic Monitoring of EmployeesElectronic 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
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Ethical and Societal IssuesEthical and Societal IssuesElectronic Monitoring of EmployeesElectronic 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
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Ethical and Societal IssuesEthical and Societal IssuesElectronic Monitoring of EmployeesElectronic Monitoring of Employees
Privacy for Consumers and Workers Act of 1991
Required employers to disclose when and how they are monitoring employees
Required audio or visual signal if not monitoring continuously
Prohibited collection of nonwork-related personal data
Limited disclosure and use of collected material
Granted employees access to collected data