Management Information Systems: Classic Models and New Approaches Chapter 17

Objectives List and describe the classic functions of managers – planning, organizing, staffing, directing, and controlling Describe the purpose and components of a management information system (MIS) Explain how computer networking and related software have flattened the classic management pyramid

Objectives Describe how many companies use employees in task-oriented teams Describe the purpose and function of sophisticated software for top managers Explain the problems and solutions related to managing personal computers Explain the concept of total cost of personal computer ownership

Contents Management Functions Management Levels Information Systems Personal Computer Management MIS Leads into the Future

Management Functions Planning Get the job done Organizing On time Devise short-range and long-range plans and set goals to help achieve the plans Organizing How to use resources Staffing Directing Guiding employees to perform their work Controlling Monitoring progress towards goals Get the job done On time Within budget Satisfactorily Using available resources

Management Levels High level (strategic) Middle level (tactical) Long-range view Planning Middle level (tactical) Carry out the plan Assemble the material Hire the resources Organize and staff Low level (operational) Supervisor Directing and controlling

Management Levels Job titles Comfortable with Chief information officer (CIO) Director of information services Information resource manager MIS manager Comfortable with Computer technology Organization’s business

Management Levels Interaction Among Employees Traditional hierarchy High level manager issues directives to a group of middle level managers Each middle level manager issues directives to a group of low level managers Each low level manager supervises other employees to see that the work is completed

Management Levels Interaction Among Employees Modern Hierarchy Dispersion of information via network E-mail Groupware Authority and work of managers has been altered Promotes sharing of information Decisions that were once management are now open for comment and change Supports team-based and information-driven organization

Management Levels Interaction Among Employees Need new ways to monitor employees Selection and training of employees Set clear expectations Use customer satisfaction to determine performance

Flattening the pyramid Management Levels Flattening the pyramid

Information Systems MIS Management Information System DSS Decision Support Systems EIS Executive Information Systems

MIS Management Information System Data + Organization Set of formal business systems designed to provide information for an organization Computers are typical components

DSS Decision Support Systems Supplements an MIS Pulls information from variety of databases Interactive Nonroutine decision-making Model – mathematical representation of real-life system Simulation – using a computer model to reach a decision about a real-life situation

MIS vs. DSS MIS DSS Planned reporting Standard, scheduled, structured, and routine Constrained by the organizational system DSS Decision making Unstructured and by request Immediate and friendly

EIS Executive Information Systems DSS for top-level managers How decisions effect entire organization Overall vision; company goals Long-term objectives Organizational structure Staffing and labor relations Crisis management Control of overall operations Access to information from external sources

Personal Computers Management Benefits Increased productivity Independence from MIS department Problems No one in charge of overall purchase of PCs Incompatibility Network related issues Needed data from MIS Training Inventory

Personal Computers Management Solutions Staffing Personal Computer Manager Network Manager Acquisitions policies Information centers for assistance and training Use software to control inventory of PCs Remote access Consider total cost of ownership (TCO)

Personal Computers Management Personal Computer Manager Technology overload – provide guidance to users for purchase and use Data security and integrity – addresses the issues of who has access to what Computer junkies – set guidelines for PC use Network Manager Operational Provide methods for sharing Install software Backup Network security

Personal Computers Management Manager Characteristics MIS background Technical knowledge Benefits and limitations of computers

Personal Computers Acquisition Standards Hardware Software Data communications Limit the number of vendors

Personal Computers Information Center Services Software and hardware selection Data access Network access Training Technical assistance Easily accessible location “User comes first”

Personal Computers Training Traditional approach Sporadic participation Minimal results for extended training Better approach Initial training Home-grown gurus Follow-up support Involve the workers Web and CD based training

Personal Computers Inventory Budgets Software Count computers Determines components Determine installed software

Personal Computers Remote Access Equipment needs Security concern Training

TCO Total Cost of Ownership Initial hardware and software Training Support Upgrading Maintenance Hardware Software extras Communications networks TCO estimated at four times the hardware costs!

TCO Reduce the TCO Limited Options – standardize the ordering process including hardware, software, and options Helpful software – counts computers and determines their components and installed software in a networked environment Hardware and software upgrades – insure there is justification for an upgrade

Management Information Systems Leading Business into the Future