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

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 Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

The Traditional Organizational Pyramid (Cont.) 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 Management Information Systems, 4th Edition

The Traditional Organizational Pyramid (Cont.) Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

Characteristics of Information at Different Managerial Levels (Cont.) Source: Internal vs. External Internal data: collected within the organization External data: collected from outside sources Media, newsletters, government agencies, Internet Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

Characteristics of Information at Different Managerial Levels (Cont.) Management Information Systems, 4th Edition

The Nature of Managerial Work Management Information Systems, 4th Edition

Planning Most important planning activities Planning at different levels Long-term mission and vision Strategic goals Tactical objectives Most important planning activities Scheduling Budgeting Resource allocation Management Information Systems, 4th Edition

Planning (Cont.) Management Information Systems, 4th Edition

Planning (Cont.) Management Information Systems, 4th Edition

Controlling Control activities by comparing plans to results Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

Management by Exception Review only exceptions from expected results that are of a certain size or type to save time Management Information Systems, 4th Edition

Leading Managers Require these Skills and Abilities: 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 Management Information Systems, 4th Edition

Organizational Structure IT Flattens the Organization Eliminates middle managers Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

The Matrix Structure Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

Tabular and Graphical Representation Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

OLAP (Cont.) Management Information Systems, 4th Edition

OLAP (Cont.) Management Information Systems, 4th Edition

Business Intelligence 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 Management Information Systems, 4th Edition

Dynamic Representation Data presented in real time Includes moving images representing speed or direction Changing colors represent rate of change Use expected to grow Management Information Systems, 4th Edition

Managers and Their Information Systems Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

Customer Relationship Management Systems 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 Management Information Systems, 4th Edition

Information, Politics, and Power 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 Management Information Systems, 4th Edition

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 e-mail and Web access Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

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 Management Information Systems, 4th Edition

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, 4th Edition