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

2. 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

3. 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

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. Characteristics of Information at Different Managerial Levels (Cont.)
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11. The Nature of Managerial Work
Management Information Systems, 4th Edition

12. 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

13. Planning (Cont.)
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14. Planning (Cont.)
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15. Controlling Control activities by comparing plans to results
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16. 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

17. 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

18. 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

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

20. 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

21. The Matrix Structure
Management Information Systems, 4th Edition

22. 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

23. Tabular and Graphical Representation
Management Information Systems, 4th Edition

24. 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

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

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

27. 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

28. 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

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

30. 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

31. 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

32. 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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33. 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

34. 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

35. 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
Management Information Systems, 4th Edition

36. 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

37. 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

38. 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