ManagementInformation 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

• Get the job done

• On time

• Within budget

• Satisfactorily

• Using available resources

PlanningDevise short-range and long-range plans and set goals to help achieve the plans

OrganizingHow to use resources

Staffing

DirectingGuiding employees to perform their work

ControllingMonitoring progress towards goals

Management Levels• High level (strategic)

– 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– Chief information officer (CIO)– Director of information services– Information resource manager– MIS manager

• Comfortable with– Computer technology– Organization’s business

Management LevelsInteraction 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 LevelsInteraction Among EmployeesModern 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 LevelsInteraction Among Employees

Need new ways to monitor employees

• Selection and training of employees

• Set clear expectations

• Use customer satisfaction to determine performance

Management Levels

Flattening the pyramid

Information Systems

MIS Management Information System

DSS Decision Support Systems

EIS Executive Information Systems

MISManagement Information System

• Data + Organization

• Set of formal business systems designed to provide information for an organization

• Computers are typical components

DSSDecision 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– Planned reporting– Standard, scheduled, structured, and

routine– Constrained by the organizational system

• DSS– Decision making– Unstructured and by request– Immediate and friendly

EISExecutive 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 ComputersManagement

• 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 ComputersManagement

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 ComputersAcquisition

• Standards– Hardware– Software– Data communications

• Limit the number of vendors

Personal ComputersInformation 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 ComputersInventory

• Budgets

• Software– Count computers– Determines components– Determine installed software

Personal ComputersRemote Access

• Equipment needs

• Security concern

• Training

TCOTotal Cost of Ownership

• Initial hardware and software

• Training

• Support

• Upgrading

• Maintenance

• Hardware

• Software extras

• Communications networks

TCO estimated at

four times

the hardware costs!

TCOReduce 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 InformationSystems

Leading Business into the Future