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Management and Information System

Management and Information System. Created by : PCTI Group. Introduction. Modern organization are totally dependent on information system in every functional area. Information systems are a core in sectors such as business , manufacturing, communication, education, health care and govt. dept.

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Management and Information System

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  1. Management and Information System Created by : PCTI Group

  2. Introduction • Modern organization are totally dependent on information system in every functional area. • Information systems are a core in sectors such as business , manufacturing, communication, education, health care and govt. dept. • Information and telecommunication technologies play crucial roles in the organization and management of global business Presentation Title | September 3, 2014 | <document classification>

  3. What is management? • It is the process of leading and directing all or part of an organisation. • Mary Parker Follett defined mgmt. as “the art of getting things done through people” • It is the action of measuring a quantity on a regular basis and of adjusting some initial plan and as the actions taken to reach one’s intended goal. • Management is also called “Business Administration” Presentation Title | September 3, 2014 | <document classification>

  4. Management also has a responsibility to innovate and improve the functioning of the organisation. • Management is the art of getting things done through and with the people in formally organized groups. Presentation Title | September 3, 2014 | <document classification>

  5. 7- M’s of Management • Man - HR Mgmt • Machine – Production & R / D • Material – Inventory / stock mgmt • Money – Finance Dept. • Marketing – strategies applied • Method – Alternative Procedures Applied • Maintenance- Preventive and Planned (Funda is “Problem ko Aane he nahi tho”) Presentation Title | September 3, 2014 | <document classification>

  6. What is the Goal of applying MANAGEMENT • ANS: To get required Product / Service • PROFITABILITY MUST COME OUT (by reducing inefficiency & by reducing Inefficiency) • PROFITABILITY ---------- GROWTH • Growth is just like Oxygen for the Organization • Mgmt Thought comes from Husband (Hunting / Earning ) & Wife Relationship (House keeping) Presentation Title | September 3, 2014 | <document classification>

  7. How Management is Implemented? • Planning (Problem : Scarcity of Resources Solution : By Alternating the Resources) 2. Organizing (Division of Labors / Work , Departmentalization & Specialization) 3. Actuating (Directing / Co-ordinating / HR Mgmt. /Motivating / Moral increase) 4. Controlling (Difference between Standard and Actual Measurement ) Presentation Title | September 3, 2014 | <document classification>

  8. Why we work for Profitability? ? Presentation Title | September 3, 2014 | <document classification>

  9. 1. For Growth • 2. For Social Responsibility Presentation Title | September 3, 2014 | <document classification>

  10. What is planning? • Planning is a process of forcasting the future in advance. • Planning requires input, output and cost. • It should ans the following questions : • What to do? • When to do ? • Who is to do? • How is it to be done? • Where is to be done? • Why is to be done? Presentation Title | September 3, 2014 | <document classification>

  11. Organising : it is the process of identifying the entire job , dividing the job into convenient subjects, tasks , allocating sub jobs to the persons or gp of persons and delegating authority to each so the job is carried out as planned. Coordinating : it is the process of putting the right person or gp of persons at the right job Directing : directing with command includes – communication, motivation and leadership. Controlling : is the function to ensure that things are going , as they should be. Actual performance must be compared with previously set goals. Presentation Title | September 3, 2014 | <document classification>

  12. Levels of management: • Top management-CEO(chief executive officer),CFO(chief financial officer),COO(chief operational officer),CIO (chief informaton officer), chairperson, president, vice president • Middle management-GM, Plant manager, Regional manager, divisional manager. • Operational management – office manager, shift supervisor, dept. manage, foreperson, store leader Presentation Title | September 3, 2014 | <document classification>

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  14. What is an Organization ? • An organization can be defined as a stable, formal social structure that uses resources and produces them to produce output. • Organization means the configuration of structure, people ,task and techniques. • Structure describes the form of dept. hierarchy and committees . • People refers to the skills, attitudes and social interaction of the members of the organization • Task refers to the goals of the individual and the organization. Presentation Title | September 3, 2014 | <document classification>

  15. EXAMPLES OF MANAGEMENT. SYSTEM Some of the mgmt. System that have been computerized in various organization are : 1.administrative mgmt system 2. Human resource mgmt. System 3. A/c mgmt. System 4. Customer relationship mgmt. System 5. Knowledge mgmt. System 6. Logistics mgmt. System 7. Marketing mgmt. System 8. Operations mgmt. System 9.project mgmt. System 10. Process mgmt. system Presentation Title | September 3, 2014 | <document classification>

  16. 11. Personal mgmt. System 12. Product mgmt. System 13. Quality mgmt. System 14. Resource mgmt. System 15. Risk mgmt. System 16. Supply chain mgmt system 17. Time mgmt. system Presentation Title | September 3, 2014 | <document classification>

  17. Types of organization • Extraction- produce goods by extracting from earth example : Agriculture, mining oil and gas exploration and producing companies. 2. Manufacturing –produce goods by processing of raw materials into finished goods Ex- car manufacturing, fertilizer manufacturing, pharmaceutical and drug manufacturing companies. 3. Services – produce service only. Ex-Banking, insurance, transportation, universities , hospitals, mgmt. consultancy, legal firms etc. Presentation Title | September 3, 2014 | <document classification>

  18. Organization Structure: • An organizational structure defines how job tasks are formally divided , grouped and coordinated • It defines what are the organisational components , their relationship and hierarchy. • It defines the arrangement and interrelationship of component parts and position in an organization. • It provides guidelines on : division of work into activities, linkage between different functions, hierarchy, authority structure, authority relationship and coordination with the environment Presentation Title | September 3, 2014 | <document classification>

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  20. Organization structure answer to : • who goes where? • What do they do? • What are the positions and how are they grouped? • What is the reporting sequence? • What is each person, and each unit responsible for? • How does authority / accountability flow?qw Presentation Title | September 3, 2014 | <document classification>

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  22. Key elements of organizational structure : • 1. Work specialisation or division of labour • 2. Departmentalisation 3.chain of command –to whom do I go if I have a problem 4. Centralization and decentralization 5. Span of control – how many employees a manager efficiently and effectively direct. 6. Formalisation-standardization of jobs Presentation Title | September 3, 2014 | <document classification>

  23. To achieve a common Goal , people are working together in an Organization Presentation Title | September 3, 2014 | <document classification>

  24. Organisational characterstics 1.division of labour 2. Decision making structure 3. Rules 4. Policies Presentation Title | September 3, 2014 | <document classification>

  25. What is management system? • Management system are the formal , observable ways in which an organization administers its operation. A mgmt. System provides the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to achieve its objectives “PLAN--->DO-CHECK-ACT” Information system provides assistance to the manager for efficiently discharging his responsibilities. Presentation Title | September 3, 2014 | <document classification>

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  27. Managerial Roles: • The Functional support role -> business process and operations support function are the most basic. They involve collecting, recording, storing and basic processing of data. • The decision role -> it requires manger to plan strategies and utilize resources. It includes : • 1.)entrepreneur • 2.) disturbance handler • 3.)resource allocator • 4.) negotiator works Presentation Title | September 3, 2014 | <document classification>

  28. 3. The interpersonal role : this role require managers to direct and supervise employees and the organisation , manager may communicate future organisational goals or ethical guidelines to employees at company • Meetings. 4. The communicational role : information sysem can support a company’s competitive positioning Presentation Title | September 3, 2014 | <document classification>

  29. A manager has to carry out the role of a functional expert, carry out decisions, plan and co-ordinate for which he / she has to perform the role of communicator and control all the activities under his / her responsibility. • Efficient and effective operation of a business requires a management system, which can support business processes and operation, decision – making and competitive strategies. Presentation Title | September 3, 2014 | <document classification>

  30. Levels of organisational hierarchy • Operational level – ex: - TPS (transaction processing system) 2 Knowledge level – KWS(knowledge work system) & OAS(office automation system) 3. Management level – MIS & DSS 4. Strategic level – ESS (executive support system) Presentation Title | September 3, 2014 | <document classification>

  31. Transaction processing system (TPS): • Tps record daily routine transactions such as sales order from customer, or bank deposits and withdrawals. • Tps provide the basic input to the company ‘s database. • A failure in the tps often means disaster for the organization. • Imagine what happens when the reservation system at Air India fails : all operations stop, no transaction can be carried out until the system is up-again. • Payroll process is another example of tps. There are 5-functional categories of TPS : sales / marketing / manufacturing / production / finance / accounting / Human resources Presentation Title | September 3, 2014 | <document classification>

  32. Features of TPS: • Rapid Response : fast performance with a rapid response time is critical 2. Reliability : failure rate must be very low, quick and accurate recovery must be possible, so well designed backup and recovery procedure are essential • Inflexibility : a tps wants every transaction to be processed in the same way regardless of the user / customer / time • Controlled processing: the processing in a tps must support an organization's operations Presentation Title | September 3, 2014 | <document classification>

  33. Knowledge Work system (KWS): • It supports highly skilled knowledge workers in the creation and integration of new knowledge into the company • CAD software used by product designers make the task easy. • KWS helps the knowledge workers • Knowledge workers are people who hold formal university degree and who are often members of profession like engineers , doctors ,Lawyers and scientists • Their jobs consists of creating new information and knowledge . Presentation Title | September 3, 2014 | <document classification>

  34. Managerial Roles: • The Functional support role -> business process and operations support function are the most basic. They involve collecting, recording, storing and basic processing of data. • The decision role -> it requires manger to plan strategies and utilize resources. It includes : • 1.)entrepreneur • 2.) disturbance handler • 3.)resource allocator • 4.) negotiator works Presentation Title | September 3, 2014 | <document classification>

  35. 3. The interpersonal role : this role require managers to direct and supervise employees and the organisation , manager may communicate future organisational goals or ethical guidelines to employees at company • Meetings. 4. The communicational role : information sysem can support a company’s competitive positioning Presentation Title | September 3, 2014 | <document classification>

  36. Levels of organisational hierarchy • Operational level – ex: - TPS (transaction processing system) 2 Knowledge level – KWS(knowledge work system) & OAS(office automation system) 3. Management level – MIS & DSS 4. Strategic level – ESS (executive support system) Presentation Title | September 3, 2014 | <document classification>

  37. Transaction processing system (TPS): • Tps record daily routine transactions such as sales order from customer, or bank deposits and withdrawals. • Tps provide the basic input to the company ‘s database. • A failure in the tps often means disaster for the organization. • Imagine what happens when the reservation system at Air India fails : all operations stop, no transaction can be carried out until the system is up-again. • Payroll process is another example of tps. There are 5-functional categories of TPS : sales / marketing / manufacturing / production / finance / accounting / Human resources Presentation Title | September 3, 2014 | <document classification>

  38. Features of TPS: • Rapid Response : fast performance with a rapid response time is critical 2. Reliability : failure rate must be very low, quick and accurate recovery must be possible, so well designed backup and recovery procedure are essential • Inflexibility : a tps wants every transaction to be processed in the same way regardless of the user / customer / time • Controlled processing: the processing in a tps must support an organization's operations Presentation Title | September 3, 2014 | <document classification>

  39. Knowledge Work system (KWS): • It supports highly skilled knowledge workers in the creation and integration of new knowledge into the company • CAD software used by product designers make the task easy. • KWS helps the knowledge workers • Knowledge workers are people who hold formal university degree and who are often members of profession like engineers , doctors ,Lawyers and scientists • Their jobs consists of creating new information and knowledge . Presentation Title | September 3, 2014 | <document classification>

  40. Decision mgmt. with IS • Decision –making is the process of selecting a course of actions among multiple alternatives. • Exam : shopping, medical decision making (based on diagnosis) deciding what to eat and deciding whom or what to vote for in an election. • Decision making is said to be a psychological construct that is we can never “see” a decision, we can get from observable behavior that a decision has been made. • Experts use intuitive decision making rather than structured approaches. • Politics is one approach to making decisions in groups Presentation Title | September 3, 2014 | <document classification>

  41. Decision making based on 4-Dimensions • Thinking and feeling • Extroversion and introversion • Judgment and perception • Sensing and intuition These dimensions would tend to have a logical, analytical , objective, critical and empirical decision making style. Presentation Title | September 3, 2014 | <document classification>

  42. Classes of Decisions • Simon has classified all decisions into 2-classes • Structured decisions (repetitive nature) • Unstructured decisions (require human judgment) • The decision making process can usually profit from computerized support Presentation Title | September 3, 2014 | <document classification>

  43. Managerial Roles and Their MIS Support Presentation Title | September 3, 2014 | <document classification>

  44. Decision making is an essential part of mgmt. • Mgmt is synonymous with decision making • Types of Decisions – fully specified , partly specified, not specified • Managers are decision makers and problem solvers Presentation Title | September 3, 2014 | <document classification>

  45. Categories of decisions – structured / unstructured • Structured decisions = programmed / routine repetitive, procedure oriented • Structured =programmed, tactical, minor, not-routine, non-repetitive • Unstructured = non-programmable, strategic, major,routine, repetitive, complex, long-run • Decision table Presentation Title | September 3, 2014 | <document classification>

  46. Additional categories of Decisons • Departmental, inter-departmental, Enterprises Decisions • Organizational and personal decisions • Individual and group decisions making Presentation Title | September 3, 2014 | <document classification>

  47. Massie’s Decision Making Model • Understand situation • Diagnose and define problem • Find alternatives • Select action and • Secure acceptance of decision Presentation Title | September 3, 2014 | <document classification>

  48. Simon’s Decision making model: Intelligence -> Design> Choice> Implementation Intelligence = “ is there a problem” Design = “What are the alternatives” Choice = “which should you choose” Implementation = “is the choice working” Presentation Title | September 3, 2014 | <document classification>

  49. What is a mgmt. Information system? • A mgmt. Information system has been defined by Davis & Olson as “an integrated user-machine system designed for providing information to support operational control, mgmt control and decision making functions in an organization. • The information system make use of resources such as hardware, software, men, procedure as well as supplies” Presentation Title | September 3, 2014 | <document classification>

  50. Information systems are expected to provide processed information to the decision makers at various mgmt. Levels in different functional areas throughout the organization • What is a system • A system is defined as a set of related components, activities , processes and human being interacting together so as to accomplish some common objective. Presentation Title | September 3, 2014 | <document classification>

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