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 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.

3 The 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

4 The Organizational Pyramid 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

5 The Organizational Pyramid Figure 9.1 The management pyramid

6 Characteristics of Information at Different Managerial Levels Figure 9.2 Characteristics of data and information for different levels of management

7 Characteristics of Information at Different Managerial Levels 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

8 Characteristics of Information at Different Managerial Levels 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

9 The Web: The 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

10 The 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

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

12 The Nature of Managerial Work Figure 9.4 The main ingredients of planning

13 Figure 9.5 Examples of processes used to control projects The Nature of Managerial Work Control  Managers control activities by comparing plans to results.

14 The Nature of Managerial Work 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

15 Figure 9.6 An example of a budgetary exception report The Nature of Managerial Work Management by Exception  Managers review only exceptions from expected results that are of a certain size or type to save time.

16 The Nature of Managerial Work 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

17 Figure 9.7 Information systems flatten managerial layers Organizational Structure IT Flattens the Organization  Eliminates middle managers

18 Organizational Structure 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.

19 Organizational Structure Figure 9.8 An example of a matrix organization

20 Characteristics of Effective 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

21 Characteristics of Effective Information 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.

22 Characteristics of Effective Information 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

23 Characteristics of Effective Information Figure 9.10 OLAP applications provide information on multiple dimensions for management decision making.

24 Characteristics of Effective Information Dynamic Representation  Data presented in real time  Includes moving images representing speed or direction  Changing colors represent rate of change  Use expected to grow

25 Managers and Their Information Systems Figure 9.11 Types of information systems typically used at different levels of an organization’s hierarchy

26 Managers and Their Information Systems 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.

27 Managers and Their Information Systems 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.

28 Managers and Their Information Systems 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

29 Information, Politics, 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

30 Ethical and Societal Issues Electronic Monitoring of Employees The Microchips Are Watching  Video cameras  Software to count keystrokes  Artificial intelligence to monitor cash disbursement and detect fraud  Monitoring and Web access

31 Ethical and Societal Issues Electronic Monitoring of Employees 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

32 Ethical and Societal Issues Electronic Monitoring of Employees 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