Chapter 9 Manager and Information their Needs. 2 Learning Objectives When you finish this chapter, you will See the link between an organization’s structure

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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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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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Figure 9.1 The management pyramid

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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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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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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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Figure 9.3 An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturer

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Figure 9.4 The main ingredients of planning

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13Figure 9.5 Examples of processes used to control projects


Control Managers control activities by comparing

plans to results.

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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


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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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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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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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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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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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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Figure 9.10 OLAP applications provide information on multiple dimensions for management decision making.

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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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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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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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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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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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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

Documents

Chapter 9 Manager and Information their Needs. 2 Learning Objectives When you finish this chapter, you will See the link between an organization’s structure