Management Information Systems, 4 th Edition 1 Chapter 9 Managers and Their Information Needs.

Management Information Systems, 4th Edition 1

Chapter 9Managers and

Their Information Needs


Learning Objectives• Explain the link between an organization’s 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


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


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


• 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

The Traditional Organizational Pyramid (Cont.)


The Traditional Organizational Pyramid (Cont.)


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


• Source: Internal vs. External

– Internal data: collected within the organization

– External data: collected from outside sources

• Media, newsletters, government agencies, Internet

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



The Nature of Managerial Work


• Planning at different levels

– Long-term mission and vision

– Strategic goals

– Tactical objectives

• Most important planning activities

– Scheduling

– Budgeting

– Resource allocation

Planning


Planning (Cont.)


• Control activities by comparing plans to results

Controlling


• 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

Decision Making


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

Management by Exception


• 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

Leading Managers Require these Skills and Abilities:


Organizational Structure• IT Flattens the Organization

– Eliminates middle managers


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


The Matrix Structure


• 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

Characteristics of Effective Information


Tabular and Graphical Representation


• 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

On-line Analytical Processing (OLAP)


OLAP (Cont.)


• Generate quickly figures and ratios about store sales, inventory, profitability, category reviews and more

• Tracking information for operations as well as for sales and marketing use

Business Intelligence


• Data presented in real time

• Includes moving images representing speed or direction

• Changing colors represent rate of change

• Use expected to grow

Dynamic Representation


Managers and TheirInformation Systems


• 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

Transaction-Processing Systems (TPS)


• DSS and ES support more complex and nonroutine decision-making and problem-solving activities

• Used by middle managers as well as senior managers

Decision Support Systems (DSS) and Expert Systems (ES)


• Provide timely, concise information about organization to top managers

• Provide internal as well as external information

– Economic indices

– Stock and commodity prices

– Industry trends

Executive Information Systems (EIS)


• A collective name for many different software applications

• Purpose– Serve customers better

– Learn more about customers and potential customers

– Track customer information for marketing and sales

Customer Relationship Management Systems


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


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



• 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



• 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


Summary

• Information flow and an organization’s structure are related

• Managerial levels require different information and functions from an IS

• Politics have an influence on the design and access to information systems

Management Information Systems, 4 th Edition 1 Chapter 9 Managers and Their Information Needs.

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