Week 5

Management Information Systems

by Alper Özpınar

Information Management and Decision Making

What is Management

Management is the process of planning, organizing, leading, and controlling the resources of an organization in order to achieve stated goals.

Who are the Managers

Persons who are appointed to position of authority

Persons who enable others to do their work effectively

Persons who are responsible for resource utilization

Persons who are accountable for work results

Classification of Managers

By level in the organization: senior, middle, or first line

By overall nature of the position: policy, human resources (HR), operations, ..

By extent of use of certain skills (e.g., ) By nature of activities

What Managers Do (1)

1. Assume responsibility

2. Balance completing goals (prioritize)

3. Think conceptually

4. Work through or with other people

5. Act as mediators, serving as arbitors and judges

What Mangers Do (2)

6. Are politicians

- building alliances, coalitions, and mutual obligations

- using persuasion and compromise to achieve organizational goals

7. Represent their work unit and organization

8. Make difficult decisions

Classical Model of Management

Composed of interrelated social and technical functions and activities

Multiple ongoing functions involved:

- Planning - Directing

- Organizing - Controlling

- Staffing - Decision-making

Behavioral Model of Management

Descriptions of management based on behavioral scientist’s observations of what managers actually do in their jobs

Studies show that managers engage in more than 600 different activitiesLess systematicMore informalLess reflectiveMore reactive

Behavioral Model of Management

High volume, high speed workVarietyi fragmentation, brevityIssue preference current, ad hoc, specificLess attention to historical, routine informationComplex web of interactions, cantactsStrong preference for verbal mediaControl of the agenda

ROLE OF MANAGERS (Mintzberg)

INTERPERSONAL ROLES INFORMATIONAL ROLES DECISIONAL ROLES

Interpersonal Roles

Figurehead : Managers act as figureheads for the organization when they represent their company to oıtside world and perform symbolic duties such as employee awards

Leader : Act as leaders attempting to motivate counsel and support subordinates

Liaison : Act as liaison among the members of management team >>Electronic Communication Systems

Informational Roles

Act as Nerve centers : Receive concrete, most up to date information and distribute information MIS

Disseminator : Email, Office Automation Systems (OAS)

Spokesperson OAS

Decisional Roles

Makes decisions Entrepreneur Disturbance handler Resource allocator Decision support

systems (DSS) Negotiator

What Managers Decide - Wrapp

Good managers do not make swweping policy decisions but istead give the organization a general sense of direction and become skilled in developing opportunities.

Succesfull managers spend much time and energy getting involved in operational decisions and problems in order to stay well informed

Wrapp’s SUCCESSFUL MANAGER:

OPERATING PROBLEMS

GENERAL MANAGER

OPERATING DECISIONS

CORPORATE STRATEGY

According to Wrapp, succesfull managers are high involved in operating problems and decisions. Since corporate strategy derives from operating problems ; corporate strategy tends to not to be systematic or comprehensive but instead is an outgrowth of day to day operating decisions

LEVELS OF DECISION MAKING

STRATEGIC: Long-term objectives; resources; policies

MANAGEMENT CONTROL: Monitor use of resources; performance

KNOWLEDGE-BASED: Evaluate potential innovations; knowledge

OPERATIONAL: How to carry out specific day-to-day tasks

TYPES OF DECISIONS

STRUCTURED: Repetitive; routine; definite procedure; certainty for handling them

SEMISTRUCTURED: One or more factors not structured; only a part of the problem has a clear-cut answer provided by an accepted procedure

UNSTRUCTURED: Unique; non-routine; uncertainty; requires evaluation,judgment. No agreed-upon procedure for making such decisions

INFO SYSTEMS, LEVELS, DECISIONS

TPS

OAS MIS

KWS

DSS

ESS

ORGANIZATIONAL LEVELTYPE OFDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS RECEIVABLE

ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS

SEMI- BUDGETSTRUCTURED PREPARATION

PROJECTSCHEDULING

FACILITYLOCATION

UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS

ORGANIZATIONAL STAGES OF DECISION MAKING

INTELLIGENCE: Collect information; identify problem >>MIS

DESIGN: Conceive alternatives; select criteria >> DSS, KWS

SOURCE: Simon, The New Science of Management Decision (1960)

ORGANIZATIONAL STAGES OF DECISION MAKING

CHOICE: Use criteria to evaluate alternatives; select , what if simulation >>DSS large models

IMPLEMENTATION: Put decision into effect; allocate resources; control >> Microcomputers

SOURCE: Simon, The New Science of Management Decision (1960)

RATIONAL MODEL: Model of human behavior based on the belief that people, organizations and nations engage in basically consistent, value maximizing calculations or adaptations within certain constraints. Comprehensive rationality; evaluate all alternatives and choose the best alternative

INDIVIDUAL MODELS OF DECISION MAKING

SATISFICING-BOUNDED RATIONALITY MODEL: Choose the first available alternative in order to move closer toward the ultimate goal instead of searching for all alternatives and consequences.

Bounded rationality idea that people will avoid new uncertain alternatives and stick with tried-and true rules and procedures

INDIVIDUAL MODELS OF DECISION MAKING

MUDDLING MODEL: Method of decision making involving successive limited comparisons where the test of a good decision is whether people agree on it; marginal changes.

Examine alternatives to establish a mix of goals consequences

Choices are not “made”, final decisions are always being modified to accommodate changin objectives, environments, value preferences

INDIVIDUAL MODELS OF DECISION MAKING

PSYCHOLOGICAL MODEL: Human being are value maxizersSystematic decision makers approach

problem by structuring it in terms of some formal form

Intuitive decision makers approach problem with multiple methods in an unstructured manner, using trial and error to find a solution

INDIVIDUAL MODELS OF DECISION MAKING

RATIONAL ACTOR:, examine all alternatives and consequences and then choose a policy that maximize organization’s benefits, the goal or preference function

BUREAUCRATIC: Follow standard operating procedures (SOP)

ORGANIZATIONAL MODELS OF DECISION MAKING

POLITICAL: Key groups compete and bargain, key players are involved in a game of influence, bargaining and power.Organizational outcomes are determined by the beliefs of players, their skills in playing the game, resources they bring to bear, and the limits on theri attention and power

ORGANIZATIONAL MODELS OF DECISION MAKING

“GARBAGE CAN”: Most Organizations are nonadaptive, temporary and disappear over time. Organizational decisions result from interactions among the stream of problems, potential actions, participants and chance.

ORGANIZATIONAL MODELS OF DECISION MAKING