Management Information 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
Planning

Get the job done

On time

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

Organizing
How to use resources

Within budget
Satisfactorily Using available resources

Staffing Directing
Guiding employees to perform their work

Controlling
Monitoring 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 Organizations business

Management Levels Interaction 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 Levels Interaction Among Employees

Modern 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 Levels Interaction 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 EIS

Management Information System Executive Information Systems

DSS Decision Support Systems

MIS
Management Information System
Data + Organization Set of formal business systems designed to provide information for an organization

Computers are typical components

DSS Decision Support Systems

Supplements an MIS
Pulls information from variety of databases Interactive Nonroutine decision-making Model mathematical representation of reallife 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

EIS Executive 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 Computers Management

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 Computers Management

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 Computers Acquisition

Standards
Hardware Software Data communications

Limit the number of vendors

Personal Computers Information 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 Computers Inventory

Budgets Software
Count computers Determines components Determine installed software

Personal Computers Remote Access

Equipment needs Security concern Training

TCO Total Cost of Ownership

Initial hardware and software Training Support Upgrading Maintenance Hardware

TCO estimated at four times the hardware costs!

Software extras
Communications networks

TCO Reduce 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 Information Systems

Leading Business into the Future