Ch1-Intro to MIS- New

8/10/2019 Ch1-Intro to MIS- New

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MIS Ch1- Introduction to MIS

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MIS

The class notes (ch1-7) for this course usesthe following references:

Laudon, Kenneth C. & Laudon, Jane P. (2007). Management Information Systems, 10/e. Prentice-Hall, NewJersey. ISBN: 0-13-230461-9 www.prenhall.com/laudonLaudon, Kenneth C. & Laudon, Jane P. (2004). Management Information Systems, 8/e. Prentice-Hall, NewJersey.Kroenke, David M. (2007). Using MIS. Prentice-Hall, New Jersey.Obrien, James A. (2004). Management Information Systems, 6/e. McGraw-Hill, New York.Kroenke, David & Hatch, Richard (1994). Management Information Systems, 3/e. McGraw-Hill, New York.Haag, Stephen, & Cummings, Maeve & Dawkins, James (1997). Management Information Systems for theInformation Age. McGraw-Hill, New York.Capron, H.L. (2000). Computers Tools for an Information Age, 6/e. Prentice-Hill, New Jersey.Coles, Sue & Jenny Rowley (2000). Access 2000 - An Advanced Course for Students. Learning Matters Ltd.

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Chapter 1Introduction to Management

Information SystemsClassic Models and New Approaches

Management Information Systems

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Example


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THREE MANAGEMENT THEORIES

TECHNICAL - RATIONAL Classical EMPHASIZES PRECISION OF TASK

ORGANIZES TASKS INTO JOBS

ORGANIZES JOBS INTO PRODUCTION SYSTEMS

BEHAVIORAL EMPHASIZES ORGANIZATIONS ADAPTATION TO EXTERNAL,

INTERNAL ENVIRONMENT

COGNITIVE

EMPHASIZES LEARNING & APPLYING KNOW-HOW, KNOWLEDGE

HOW WELL MANAGERS PROVIDE MEANING TO NEWSITUATIONS

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Classic Management Functions

Historically, managers have had these mainfunctions:

Planning

Organizing

Staffing

Directing

Controlling

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Planning

Managers deviseboth short-rangeand long-rangeplans for theorganization andset goals toachieve thoseplans.


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Organizing

Managers mustdecide how to useresources, such as

people and materials.

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Staffing

Managers musthire and trainworkers.

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Directing

Managers guideemployees toperform their workin a way thatsupports theorganizationsgoals.


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Controlling

Managers monitorthe organizationsprogress towardreaching its goals.

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Classic Management Pyramid

TopTop--levellevel

managersmanagers

MiddleMiddle--levellevel

managersmanagers

LowLow--levellevel

managersmanagers

StrategicStrategic

TacticalTactical

OperationalOperational

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Strategic Level Management

This level ofmanagementfocuses on theplanning functionsof the organization

the long-range goals


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Tactical Level Management

At this level,management focuses onorganizing and staffingto carry out the plans &goals/visions of top-levelmanagers

the acquisition & efficient

utilization of resources in the

accomplishment of organizational

goals

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Operational Level Management

The focus of this levelof management is ondirecting and

controlling workers toperform the plannedactivities

the efficient & effectiveexecution of specific tasks.

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EVOLUTION OF MANAGEMENT THEORY

CLASSICAL

planning, organizing, staffing, directing,controlling

CONTEMPORARY

emphasized individual collective behavior

POSTMODERN

emphasizes knowledge basis oforganizations


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Management Information Systems(MIS)

Each level ofmanagement hasdifferent informationneeds & ISrequirements.

MIS is a set of formalbusiness systemsdesigned to provide

information fordecision making.

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MIS Manager

The MIS manager runs the MISdepartment.

The MIS manager must be comfortablewith both computer technology and theorganizations business.

Why manage IS?Overall costs of IS are growing and should be spent

wisely

Well-managed IS cut cost in other areas of the firm andincrease productivity

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New Management Model

Many industries are finding that they cando without middle managers.

For these businesses, communication thatwas once carried out by middle managershas been replaced by computer networks.

The result has been a flattenedmanagement pyramid.


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Flattened Management Pyramid

TopTop--levellevel

managersmanagers

Low andLow and

MiddleMiddle--levellevel

managersmanagers

WorkersWorkers

StrategicStrategic

TacticalTactical

OperationalOperational

Traditional Management

CEO

VPFinance

VPMarketing

VPAccounting

VPHRM

VPMIS

Layers of middle managers

Customers

Commands

Analyze data

Condensed reports

Collect

data

DecentralizationManagement TeamCEO

FinanceTeam

MarketingTeam

AccountingTeam

HRMTeam

SalesTeam

Franchise

Strategy

Methodology/Rules

Customers

Corporate

Database

&

Network

VPFin

VPMrkt

VPAcct

VPHRM

VPMIS


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Networked Organizations

Today some organizations are turning away

from the hierarchical organization toward thenetworked organizationnetworked organization(organizational structuresthat resemble computer networks and are supported byinformation systems)

In the information-basedeconomy, most peopledo knowledge work, and the subordinate oftenhas more expertise than the hierarchicalsupervisor.

A flattened organizationhas fewer layers ofmanagement and a broader span of control thanthe hierarchical organization.

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Networked Organizations

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Ynetim felsefesi (komik)

Trk ve Japonirketleri arasnda bir krek yardzenlenmi.ki taraf da yara ok iyi hazrlanyor.Japonlar yar bir kilometre farkla kazanyor.Trkirketi, yar sonrasnda durumu inceliyor, yenidenyaplanmaya gidiyor.Japon takmnda 1 dmenci, 8 kreki var.Trk takmnda ise 1 kii krek ekiyor, 8 kii dmenikullanyor.Trk takm yenidenyle yaplanyor:"4 dmen mdr, 3 mdr yardmcs, 1 dmen yneticisive bir kreki". kinci yar Japonlar iki kilometre araylakazanyor.Trkirketi bunun zerine geni apl bir soruturmabalatyor. Kreki kovuluyor. Mdr yardmclar vemdrlere tevik primi verilirken, yeni bir kreki araynabalanyor.


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Impact of Groupware

The introduction of groupware (informationcollected in databases) has contributed tothe flattening of the management pyramid.

Fewer lower- and middle-managers areneeded in an organization that isinformation-driven and supports team-based projects.

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Impact of Teamwork

Networks and groupware help to organizeemployees into task-focused teams.

Small-sized teams of highly skilledworkers need fewer managers to dispenseideas and make decisions.

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Top Managers and Computers

Top managers needsophisticated software to helpthem make decisions.

Methodology vs Ad Hoc Decisions

Decision Process

Collect Data

Identify Problems & Opportunities

Make Choices


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Decision SupportSystem (DSS)

A DSS is a computer system that supportsmanagers in nonroutine decision-makingtasks and supplements an MIS.

A DSS uses an interactive computermodel to simulate a real-life situation.

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Executive SupportSystem (ESS)

An ESS is a decision support systemespecially made for senior-levelexecutives.

Unlike a DSS, this system must take intoconsideration how decisions will affect the

entire organization over a period of time.

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Managing Personal ComputersAcquiring and managing the personal computers in an organization

requires:

A personal computer manager : attends to technology overloaddata security and integritycomputer junkies (respond to workers using computers for work not related to their job-

especially internet users)

Acquisition policies : should look for compatibility with current hw&sw

An information center : provides following to employees:Software selection (help them select packages to meet their needs)Data access (help them get data from corparate compter systems)

Network access (passwork, security)

TrainingTechnical assistance (advice on hw/sw adoptions & problem-solving)


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Increasing Productivity

To increase productivity, managers mustprovide:

Trainingtraining is now necessary for every aspect of a companysorganization. However, follow-up support is important if the newly

trained personnel are to retain the new skill

Worker involvementrather than simply installing new technology and training

workers, management should involve the people who willbe working with the technology.

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Computer Auditing

Accurately tracking information onhardware and software resources isneeded to support budgeting for futureneeds

Special software can count networked

computer users and related equipment.

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Remote User Issues

Here, MIS managers are concerned with:

Security of company data

Adequate training


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Total Cost of Ownership (TCO)

MIS managers are aware of TCO, which includes:

TCOofaP

Cisappro

x=4xcos

tofthehw

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INFORMATION SYSTEMSDEPARTMENT

PROGRAMMERS: Write software

SYSTEMS ANALYSTS: Translatebusiness problems into solutions

IS MANAGERS: Department leaders

END USERS: Department representativesfor whom applications are developed

Hardware

Software

Software

Hardware

1990s

1960s1970s

The Increasing Importance of

Software to Organizations

Shift in technology costs

Declining hardware costs

Increasing complexity of softwarewith increased costs

Increasing salaries of programmers

Software aids in re-engineeringof the organization

Software helps standardizebusiness procedures


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Importance of MIS

I S b u d g e t a s p e r c e n t o f re v e n u e

0

1

2

3

4

5

6

Aerospace

Consumer

Financial

Industrial

Manuf.

Petroleum

Pharm.

Sales

Trans.

Utilities

%

Computerworld 1993*

Everyone Uses Computers

P e r c e n t o f e m p l o y e e s w i th P C / te r m i n a l

0

1 02 0

3 0

4 0

5 0

6 0

7 0

8 0

9 0

1 0 0

Aerospace

Consumer

Financial

Industrial

Manuf.

Petroleum

Pharm.

Sales

Trans.

Utilities

Computerworld 1993*

US Employment PatternsUS Employment Patterns

0

20

40

60

80

100

120

140

160

1920 1930 1940 1950 1960 1970 1980 1990 2000

millionsofworkers

Service

Management

Manufacturing

Farm


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DEVELOPMENT OFINFORMATION ARCHITECTURE

1950s: ELECTRONIC ACCOUNTING MACHINES

1960s: DATA PROCESSING DEPARTMENTS

1970s: INFORMATION SYSTEMS

1980s: INFORMATION SYSTEMS & SERVICES

1990s: ENTERPRISE-WIDE INFORMATIONUTILITY

Ch1-Intro to MIS- New

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