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Submitted by: PACHECO, Ryan Krys SEBASTIAN, Pauline Yehn SOLIS, Shiela Marie VALERIO, Rosmarie Ann
making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. . The Executive Position Unique demands of the executive position An executive is not just a lower-level manager on a higher level. Executives require unique information processing *Firms without EIS will have their top-level managers receive all of their information from the functional subsystems and these executives would have to distill and synthesize the data into a form that would be meaningful to them. Executives are different – not in terms of personal characteristics but in terms of the job and how it is performed.Executive Information Systems Executive Information System is a type of management information system intended to facilitate and support the information and decision. The EIS relieves the executives from that work.
Fayol's Management Functions 1. Executives assign a higher value to the welfare of the firm than to the welfare of individual units within the firm. High-level management focuses on: . Control *Planning is the most emphasized work of an executive and the rest are left to the lower level managers. entrepreneurial improvements . they are company oriented. Plan 2. The influence is gained by engaging in strategic planning and setting the policies of the firm. Staff 4.*The EIS sits atop the functional systems and it makes information available to the executives.Long-range. Mintzberg's Managerial Roles All managers perform all roles but the orientation is different on each level. Organize 3. The information originates both within and its environment. Thus. Direct 5. What Do Executives Do? Distinguishing Managers from Executives Executives are managers on the upper level of the organizational hierarchy. Executives are also distinguished from managers by their long term planning horizon and by their attitude.Responding to unanticipated situations . who exercise a strong influence on the firm.
objectives the firm is to achieve. Kotter. Isenberg What Executives think about? 1. but they might not always come as the result of a series of a well-defined step in the same order rather they use their intuition at each step. .norms and values so the network members can achieve agendas How Do Executives Think? Based on Harvard professor Daniel J. Executives often skip from problem definition to solution implementation and then back to alternative evaluation. Executives make rational decisions.Kotter's Agenda and Networks John P. Harvard professor Executives follow a three step strategy .Agenda -. How to get things done 2. It is more useful because of the unstructured nature of problems and the vast reservoir of experience the executives can apply.Environment -.Networks -. . A few overriding issues They are more concerned in getting subordinates to solve a problem than with what the specific solution will be. General idea of what the company will be. .cooperative relationships among those people who are to accomplish the agendas.
. meeting and so on. memo.The Mintzberg Study Mintzberg was first to conduct a formal study of executive information needs Studied 5 executives in early 1970s Five basic activities .unscheduled meetings *It would appear that it is more important for the manager to get his information quickly and efficiently than to get it formally.desk work .telephone calls .scheduled meetings . observational tour.tours . telephone call. The Jones and McLeod Study Studied 5 executives in early 1980s Questions 1) How much information reaches the executive ? 2) What was the information value ? 3) What are the information sources ? 4) What media are used to communicate the information ? 5) What use is made of the information ? How Much Information Reaches the Executive? A transaction is a communication involving any medium – computer report. letter.
The upper number in a rectangle represents the volume of transactions supplied by that source. The two CEOs had the highest volume. At the other extreme. As the figure above shows. What is the Value of the Information? The executives assigned a value ranging from zero (no value) to ten (maximum value) to each transaction. it was easier for them to see that incoming information had little value. or two. but it also provided the information with the lowest average value. The internal sources are to the right. The environment provided the largest volume. the source providing the lowest volume . with the president in between. What Are the Sources of the information? The figure below shows the information sources. there was considerable variation in volume from one executive to another and considerable fluctuation from one day to the next for the same executive.5 for the bank CEO. The internal sources are to the right.9 for the vice-president of tax to 5.The executives received an average of twenty-nine information transactions per day. The two vice-presidents had the lowest averages. and the two vicepresidents had the lowest. There was also a variation in the level of values assigned by each executive ranging from an average of 2. The executives gave 26 percent of the transactions very low values – zero (the most frequently assigned value). The figure above contains bar graph that shows the distribution of the values for all of the executives. The distribution of values for these two executives is shown as lines in the figure. Perhaps because of the narrower scope of their roles. the executives gave only 6 percent of the transactions a nine or a ten. The firm’s environment is represented by the rectangle to the left of the dashed line. one. Conversely. The lower number is the average transaction value. Each source is represented by a rectangle. stated as a percentage of the total transactions.
lists the media and their average values. Telephone calls were the only oral communication that accounted for a large volume. The term computer reports was used for all computer output. as shown in the figure on the right. As predicted. Unfortunately for the executives. and telephone calls) accounted for 60 percent of the transactions. as Mintzberg stated. The executives relied more heavily on non-computer . They were receiving only computer reports and did not regard them as a major medium. oral media occupy the top four positions.was committees. At the time study none of the executives were querying the firm’s databases or engaging in mathematical modeling. If executives do prefer oral media. Telephone calls and business meals are the only oral media outranked by written media. The table for Ranking of Media by Value. The two levels immediately below the executive do the best job providing information in terms of both high volume and value. then those media should have received higher values than written media. memos. What Media Are Used to Communicate Executive Information? Written media accounted for 61 percent of the number of transactions. the three media that they control the least (letters. but they provided the information with the highest value.
the information was given a low value.8).reports. Although all of the firms have impressive computer resources.6). assisted by the executives. assigned a decisional role to each information transaction. supporting Mintzberg’s observation that executives seldom negotiate. Disturbance handler (4. You can see that most of the information was intended for use in handling disturbances being an entrepreneur. Resource allocator (4. Very little was earmarked for negotiation. compared with much higher average values for Entrepreneur (4. and allocating resources. As shown in the figure for Sources of Decisional Information. If the executive could not associate a piece of information with a role. Six percents of the transactions could not be identified with any role. and Negotiator (3. The manner in which the executive obtains information to play the roles is anything but simple.1. What Use Is Made of the Information? The researchers. almost three-fourths of the executives’ reports were prepared some other way. Their information value was 1. information comes from a number of different sources as each . The assignment reflected how the executive would likely use the information.7). The figure on the right shows the distribution.8).
the computer will be superimposed on top of non-computer flows. The Resource allocation role draws on four. For that reason. No executive information system is going to be completely computer based. The Rockart and Treacy Study If one were asked to pinpoint the single research effort that triggered the interest in executive information systems.role is played. but the oral information was valued higher. Rather. it would be difficult to decide between the Mintzberg study and one conducted in the early 1980s by . The executives received very little information directly from the computer. but the internal information was valued higher. Both the Disturbance handler and Entrepreneur roles on the right draw on information from all five of the sources listed in the left. Significance of the Study Findings Three finding of the study appear to be the most significant. Most of the executives’ information came in a written form. Most of the executives’ information came from environmental sources. and the Negotiator role draws on two. The widths of the arrows show the relative volumes of the flows. the information systems of the five study executives serve an important purpose. They show the intricate nature of the information flows that executives establish to obtain problem-solving information.
Heineman. If the executive emphasizes rational problem solving and recognizes the potential contribution of the computer to the process. The Rockart and Treacy study spotlighted the fact that computer use is not beneath the dignity of executives. Two possible reasons stand out. one at home. the researchers recognized that such system feature: A Central Purpose. “You learn the nature of real question you should have asked when you muck around in the data. CEO of Northwest Industries. Second. the problems at the executive level are less structured and therefore more difficult to support with computer processing. at least one of the top three officers – most often the CEO – personally used computers. The database contains information on industries. An EIS coach is a member of the executive’s staff. Executive employ computer information primarily in planning and controlling. or an outside consulting organization who provides help in setting up the system. The executives are helped by EIS coaches and EIS chauffeurs. First. and (2) computer information is only a portion of all of the information reaching an executive. One of the most dedicated computer supporters was Ben W. Heineman stated. there are proportionally fewer computer users on the executive level than on any other level.” . All executives want to receive good information from any source. and business units in three time periods – history. “There is a huge advantage to the CEO to get his hand dirty in the date. executives tend to be older and less likely to have had the benefit of formal computer training.” The term Executive Information System. expressed this feeling when he said that he believed in “not being the captive of any particular source of information. A Common Core of Data. then he or she likely will make use of computer information. the lack of training is something than can easily be overcome if the executive is willing. In their study of executive computer use in sixteen companies. or EIS. An EIS chauffeur is a member of the executive’s staff who operates the equipment for the executive. present and future. Perhaps computer use is influenced mainly by the problem-solving nature of the executive’s tasks. Heineman had a terminal in his office.” Another executive commented. Two Principal Methods of Use. first appeared in the report of the Rockart and Treacy study. Heineman. competitors. Executives use the EIS to access current status and projected trends and conduct personalized analyses of the data. The important points in this discussion are (1) computer use is a personal thing. as proven by the many executives approaching retirement who have embraced computer processing. as strong a computer advocate as one could ever expect to find on the executive level. and took one with him on vacations. although no definition was provided. customers. Also. information services. Putting the Computer in Perpective Although some executives rely heavily on the computer. A Support Organization.John Rockart and Michael Treacy both of MIT. Age in itself is not an issue.
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