1 Chapter 9 Managers and Their Information Needs

2 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

3 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

4 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

5 Source: Internal vs. External Internal data: collected within the organization External data: collected from outside sources  Media, newsletters, government agencies, Internet

6 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

7 The Web: The Great Equalizer Outside information now easier to get More free information Information available in easy-to- manipulate format

8 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

9 The main ingredients of planning The Nature of Managerial Work

10 Examples of processes used to control projects Control Managers control activities by comparing plans to results. The Nature of Managerial Work

11 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 decision-making involved The Nature of Managerial Work

12 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. The Nature of Managerial Work

13 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 The Nature of Managerial Work

14 Information systems flatten managerial layers Organizational Structure IT Flattens the Organization Eliminates middle managers

15 The Matrix Structure People report to different supervisors, depending on project, product, or location of work IT supports matrix structure  Easier access to cross-functional information Organizational Structure

16 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

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

18 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 Managers and Their Information Systems

19 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 Managers and Their Information Systems

20 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 Managers and Their Information Systems