Unit III - Management Information

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    ManagementInformation Systems

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    Management Functions

    Planning

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

    Organizing

    How to use resourcesStaffing

    Directing

    Guiding employees to perform their workControlling

    Monitoring progress towards goals

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    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

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    Job titles

    Chief information officer (CIO)

    Director of information services

    Information resource manager

    MIS manager

    Comfortable with

    Computer technology

    Organizations business

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    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

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    Three main categories of information systems

    serve different organizational levels:

    1. Operational-level systems:support operationalmanagers, keeping track of the elementaryactivities and transactions

    2. Management-level systems: serve themonitoring, controlling, decision-making, andadministrative activities

    3. Strategic-level systems: help seniormanagement tackle and address strategicissues

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    Information Systems

    TPS Transaction Processing Systems

    MIS Management Information System

    DSS Decision Support Systems

    EIS Executive Information Systems

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    Transaction Processing Systems (TPS)

    Basic business systems that serve the

    operational level

    A computerized system that performs and

    records the daily routine transactions necessary

    to the conduct of the business

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    Management Information System

    Data + Organization

    Set of formal business systems designed to

    provide information for an organization

    Computers are typical components

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    Management level

    Inputs: High volume transaction level data

    Processing: Simple models

    Outputs: Summary reports

    Users: Middle managers

    Example: Annual budgeting

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    Decision Support Systems

    Supplements an MIS

    Pulls information from variety of databases

    Interactive

    Non routine decision-making

    Modelmathematical representation of real-life system

    Simulationusing a computer model to reach a

    decision about a real-life situation

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    Management level

    Inputs : Transaction level data

    Processing : Interactive

    Outputs : Decision analysis

    Users : Professionals, staff

    Example: Contract cost analysis

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    MIS

    Planned reporting

    Standard, scheduled, structured, and routine

    Constrained by the organizational system

    DSS

    Decision making

    Unstructured and by request

    Immediate and friendly

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    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

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    Inputs : Aggregate data

    Processing : Interactive

    Outputs : Projections

    Users : Senior managers

    Example: 5 year operating plan