MIS Ch1- Introduction to MIS

MIS
The class notes (ch1-7) for this course uses
the following references:
Laudon, Kenneth C. & Laudon, Jane P. (2007). Management Information Systems, 10/e. Prentice-Hall, New
Jersey. ISBN: 0-13-230461-9 www.prenhall.com/laudon
Laudon, Kenneth C. & Laudon, Jane P. (2004). Management Information Systems, 8/e. Prentice-Hall, New
Jersey.
Kroenke, David M. (2007). Using MIS. Prentice-Hall, New Jersey.
Obrien, James A. (2004). Management Information Systems, 6/e. McGraw-Hill, New York.
Kroenke, David & Hatch, Richard (1994). Management Information Systems, 3/e. McGraw-Hill, New York.
Haag, Stephen, & Cummings, Maeve & Dawkins, James (1997). Management Information Systems for the
Information Age. McGraw-Hill, New York.
Capron, H.L. (2000). Computers Tools for an Information Age, 6/e. Prentice-Hill, New Jersey.
Coles, Sue & Jenny Rowley (2000). Access 2000 - An Advanced Course for Students. Learning Matters Ltd.

Chapter 1
Introduction to Management
Information Systems
Classic Models and New Approaches

Management Information Systems

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Example

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MIS Ch1- Introduction to MIS

THREE MANAGEMENT THEORIES

TECHNICAL - RATIONAL Classical
 EMPHASIZES PRECISION OF TASK
 ORGANIZES TASKS INTO JOBS
 ORGANIZES JOBS INTO PRODUCTION SYSTEMS

BEHAVIORAL
 EMPHASIZES ORGANIZATIONS ADAPTATION TO EXTERNAL,
INTERNAL ENVIRONMENT

COGNITIVE
 EMPHASIZES LEARNING & APPLYING KNOW-HOW, KNOWLEDGE
 HOW WELL MANAGERS PROVIDE MEANING TO NEW
SITUATIONS

Classic Management Functions

Historically, managers have had these main
functions:

Planning

Organizing

Staffing

Directing

Controlling
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Planning

Managers devise
both short-range
and long-range
plans for the
organization and
set goals to
achieve those
plans.
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Organizing

Managers must
decide how to use
resources, such as
people and materials.

Staffing

Managers must
hire and train
workers.

Directing

Managers guide
employees to
perform their work
in a way that
supports the
organizations
goals.

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MIS Ch1- Introduction to MIS

Controlling

Managers monitor
the organizations
progress toward
reaching its goals.

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Classic Management Pyramid

TopTop-level
managers

Strategic

MiddleMiddle-level
managers
LowLow-level
managers

Tactical

Operational
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Strategic Level Management

This level of
management
focuses on the
planning functions
of the organization
the long-range goals

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MIS Ch1- Introduction to MIS

Tactical Level Management

At this level,
management focuses on
organizing and staffing
to carry out the plans &
goals/visions of top-level
managers
the acquisition & efficient
utilization of resources in the
accomplishment of organizational
goals
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Operational Level Management

The focus of this level
of management is on
directing and
controlling workers to
perform the planned
activities
the efficient & effective
execution of specific tasks.

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EVOLUTION OF MANAGEMENT THEORY

CLASSICAL
planning, organizing, staffing, directing,
controlling

CONTEMPORARY
emphasized individual collective behavior

POSTMODERN
emphasizes knowledge basis of
organizations
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MIS Ch1- Introduction to MIS

Management Information Systems

(MIS)

Each level of
management has
different information
needs & IS
requirements.

MIS is a set of formal
business systems
designed to provide
information for
decision making.

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MIS Manager

The MIS manager runs the MIS
department.

The MIS manager must be comfortable
with both computer technology and the
organizations business.

Why manage IS?
Overall costs of IS are growing and should be spent
wisely
Well-managed IS cut cost in other areas of the firm and
increase productivity
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New Management Model

Many industries are finding that they can
do without middle managers.

For these businesses, communication that
was once carried out by middle managers
has been replaced by computer networks.

The result has been a flattened
management pyramid.

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MIS Ch1- Introduction to MIS

Flattened Management Pyramid

TopTop-level
managers

Strategic

Low and
MiddleMiddle-level
managers

Tactical

Workers

Operational
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Traditional Management

CEO

Commands

VP
Finance

VP
Marketing

Condensed reports

VP
Accounting

VP
HRM

VP
MIS

Analyze data

Layers of middle managers

Collect
data

Customers

Decentralization
Management Team
CEO
VP
Fin

VP
Mrkt

VP
Acct

VP
HRM

VP
MIS

Strategy
Finance
Team

Marketing
Team

Sales
Team

Accounting
Team

Methodology/Rules

HRM
Team

Corporate
Database
&
Network

Franchise

Customers

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MIS Ch1- Introduction to MIS

Networked Organizations
 Today some organizations are turning away
from the hierarchical organization toward the
networked organization (organizational structures
that resemble computer networks and are supported by
information systems)

 In the information-based economy, most people

do knowledge work, and the subordinate often
has more expertise than the hierarchical
supervisor.
 A flattened organization has fewer layers of
management and a broader span of control than
the hierarchical organization.
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Networked Organizations

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Ynetim felsefesi (komik)

Trk ve Japon irketleri arasnda bir krek yar
dzenlenmi.
ki taraf da yara ok iyi hazrlanyor.
Japonlar yar bir kilometre farkla kazanyor.
Trk irketi, yar sonrasnda durumu inceliyor, yeniden
yaplanmaya gidiyor.
Japon takmnda 1 dmenci, 8 kreki var.
Trk takmnda ise 1 kii krek ekiyor, 8 kii dmeni
kullanyor.
Trk takm yeniden yle yaplanyor:
"4 dmen mdr, 3 mdr yardmcs, 1 dmen yneticisi
ve bir kreki". kinci yar Japonlar iki kilometre arayla
kazanyor.
Trk irketi bunun zerine geni apl bir soruturma
balatyor. Kreki kovuluyor. Mdr yardmclar ve
mdrlere tevik primi verilirken, yeni bir kreki arayna
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balanyor.

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MIS Ch1- Introduction to MIS

Impact of Groupware

The introduction of groupware (information
collected in databases) has contributed to
the flattening of the management pyramid.

Fewer lower- and middle-managers are
needed in an organization that is
information-driven and supports teambased projects.

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Impact of Teamwork

Networks and groupware help to organize
employees into task-focused teams.

Small-sized teams of highly skilled
workers need fewer managers to dispense
ideas and make decisions.

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Top Managers and Computers

Top managers need
sophisticated software to help
them make decisions.

Methodology vs Ad Hoc Decisions

Decision Process
 Collect Data
 Identify Problems & Opportunities
 Make Choices

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Decision Support
System (DSS)

A DSS is a computer system that supports
managers in nonroutine decision-making
tasks and supplements an MIS.

A DSS uses an interactive computer
model to simulate a real-life situation.

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Executive Support
System (ESS)

An ESS is a decision support system
especially made for senior-level
executives.

Unlike a DSS, this system must take into
consideration how decisions will affect the
entire organization over a period of time.

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Managing Personal Computers

Acquiring and managing the personal computers in an organization
requires:

A personal computer manager : attends to
 technology overload
data security and integrity
computer junkies (respond to workers using computers for work not related to their jobespecially internet users)

Acquisition policies : should look for compatibility with current hw&sw

An information center : provides following to employees:
Software selection (help them select packages to meet their needs)
Data access (help them get data from corparate compter systems)
Network access (passwork, security)
Training
Technical assistance (advice on hw/sw adoptions & problem-solving)

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MIS Ch1- Introduction to MIS

Increasing Productivity
To increase productivity, managers must
provide:

Training
training is now necessary for every aspect of a companys
organization. However, follow-up support is important if the newly
trained personnel are to retain the new skill

Worker involvement
rather than simply installing new technology and training
workers, management should involve the people who will
be working with the technology.
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Computer Auditing

Accurately tracking information on
hardware and software resources is
needed to support budgeting for future
needs

Special software can count networked
computer users and related equipment.

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Remote User Issues

Here, MIS managers are concerned with:

Security of company data

Adequate training

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MIS Ch1- Introduction to MIS

Total Cost of Ownership (TCO)

MIS managers are aware of TCO, which includes:

P
of a
TCO

=4
prox
is ap

t of th
x cos

e hw
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INFORMATION SYSTEMS
DEPARTMENT

PROGRAMMERS: Write software

SYSTEMS ANALYSTS: Translate
business problems into solutions

IS MANAGERS: Department leaders

END USERS: Department representatives
for whom applications are developed

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The Increasing Importance of

Software to Organizations

Shift in technology costs
Declining hardware costs
Increasing complexity of software
with increased costs
Increasing salaries of programmers

Software aids in re-engineering

of the organization

Software helps standardize
business procedures

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Software

Hardware

1960s1970s

Hardware

Software

1990s

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MIS Ch1- Introduction to MIS

Importance of MIS
IS b u d g e t a s p e rc e n t o f re v e n u e
6
5

4
3
2

Utilities

Trans.

Sales

Pharm.

Manuf.

Industrial

Aerospace

Consumer

Financial

Petroleum

Computerworld 1993*

Everyone Uses Computers

P e r c e n t o f e m p l o y e e s w i th P C / te r m i n a l
100
90
80
70
60
50
40

Utilities

Trans.

Sales

Pharm.

Manuf.

Industrial

Financial

Consumer

Aerospace

10
0

Petroleum

30
20

Computerworld 1993*

US Employment Patterns
US Employment Patterns
160

millions of workers

140
120
100
80
60

Service
Management
Manufacturing
Farm

40
20
0
1920 1930 1940 1950 1960 1970 1980 1990 2000

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MIS Ch1- Introduction to MIS

DEVELOPMENT OF
INFORMATION ARCHITECTURE

1950s: ELECTRONIC ACCOUNTING MACHINES

1960s: DATA PROCESSING DEPARTMENTS

1970s: INFORMATION SYSTEMS

1980s: INFORMATION SYSTEMS & SERVICES

1990s: ENTERPRISE-WIDE INFORMATION
UTILITY

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