Management
Information Systems
By Effy Oz & Andy Jones
Chapter 9: Managers and Their
Information Needs
www.cengage.co.uk/oz
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Learning Objectives
• Explain the link between an organization’s structure and
information flow
• List the main functions and information needs at
different managerial levels
• Identify the characteristics of information needed by
different managerial levels
• Recognize the influence of politics on the design of, and
accessibility to, information systems
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Learning Objectives (continued)
• Describe the ways in which IT personnel are
deployed in organizations
• List and explain the advantages and
disadvantages of various personnel
deployments
• Explain the importance of collaboration
between IS managers and business managers
and describe the relationship between the two
groups
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Managers and Information
• Different levels of managers need different
types of information for different types of
decisions
• Increased flexibility of IS allows for changes
in organizational structure
• Politics of information is an issue
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Traditional
Organizational Pyramid
• Many organizations follow pyramid model
– CEO at top
– Small group of senior managers
– Many more lower-level managers
• Clerical and Shop Floor Workers
– No management-level decisions required
• Operational Management
– Comply with general policies handed down
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Traditional
Organizational Pyramid (Cont.)
• Tactical Management
– Wide-ranging decisions within general directions
handed down; “how to do it” decisions
• Strategic Management
– Decisions affect entire or large parts of the
organization; “what to do” decisions
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Traditional
Organizational Pyramid (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Characteristics of Information
at Different Managerial Levels
• Data Scope
– Amount of data from which information is
extracted
• Time Span
– How long a period the data covers
• Level of Detail
– Degree to which information is specific
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Characteristics of Information
at Different Managerial Levels
(Cont.)
• Source: Internal vs. External
– Internal data: collected within the organization
– External data: collected from outside sources
• Media, newsletters, government agencies, Internet
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Characteristics of Information
at Different Managerial Levels (Cont.)
• Structured and Unstructured Data
– Structured data: numbers and facts easily stored
and retrieved
– Unstructured data: drawn from meetings,
conversations, documents, presentations, etc.
• Valuable in managerial decision making
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Characteristics of Information
at Different Managerial Levels (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Nature of Managerial Work
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Planning
• Planning at different levels
– Long-term mission and vision
– Strategic goals
– Tactical objectives
• Most important planning activities
– Scheduling
– Budgeting
– Resource allocation
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Planning (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Planning (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Controlling
• Control activities by comparing plans to results
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Decision Making
• Both planning and control call for decision making
• The higher the level of management:
– The less routine the manager’s activities
– The more open the options
– The more decision-making involved
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Management by Exception
• Review only exceptions from expected results that are
of a certain size or type to save time
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Leading Managers Require these
Skills and Abilities:
• Vision and creating confidence in others
• Encouraging and inspiring subordinates
• Initiating activities for efficient and effective work
• Creating new techniques to achieve corporate goals
• Presenting a role model for desired behavior
• Taking responsibility for undesired consequences
• Delegating authority
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Organizational Structure
• IT Flattens the Organization
– Eliminates middle managers
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Matrix Structure
• People report to different supervisors, depending on
project, product, or location of work
• More successful for smaller, entrepreneurial firms
• IT supports matrix structure
– Easier access to cross-functional information
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Matrix Structure
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Managers and Their
Information Systems
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Transaction-Processing Systems
(TPS)
• Capture and process raw materials for information
• Interfaced with applications to provide up-to-date
information
• Clerical workers use TPS for routine responsibilities
• Operation managers use TPS for ad-hoc reports
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Decision Support Systems (DSS)
and Expert Systems (ES)
• DSS and ES support more complex and nonroutine
decision-making and problem-solving activities
• Used by middle managers as well as senior managers
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Executive Information Systems
(EIS)
• Provide timely, concise information about
organization to top managers
• Provide internal as well as external information
– Economic indices
– Stock and commodity prices
– Industry trends
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Information,
Politics, and Power
• Politics
– Development and control of ISs often involves
problematic politics
• Power
– Information affords power which can be problematic
•
•
•
•
Who owns the system?
Who pays for developing the system?
Who accesses what information?
Who has update privileges?
• The Not-Invented-Here Phenomenon
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Ethical and Societal Issues
Electronic Monitoring of Employees
• The Microchips Are Watching
– Video cameras
– Software to count keystrokes
– Artificial intelligence to monitor cash disbursement
and detect fraud
– Monitoring e-mail and Web access
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Ethical and Societal Issues
Electronic Monitoring of Employees
• The Employers’ Position
– Entitled to know how employees spend time
– Believe monitoring is an objective, nondiscriminatory
method to gauge output
• The Employees’ Position
– Deprives them of autonomy and dignity
– Increases stress and stress-related illness and injury
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Management of Information
Technology Resources
• Centralized Management
– Staff positions and departments in strict vertical
hierarchy
– Control of organization in few hands
• Decentralized Management
– Delegates authority to lower-level managers
• IS often follows management pattern
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Centralized vs. Decentralized
Management
• Advantages of Centralized IS Management
–
–
–
–
–
–
–
–
–
Standardized hardware and software
Efficient administration of resources
Effective staffing
Easier training
Common reporting systems
Effective planning of shared systems
Easier strategic planning
Efficient use of IS personnel
Tighter control by top management
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Centralized vs. Decentralized
Management (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Centralized vs. Decentralized
Management (Cont.)
• Advantages of Decentralized IS Management
– Better fit of ISs to business needs
– Timely response of IS units to business demands
– Encouragement of end-user development of
applications
– Innovative use of ISs
– Support for delegation of authority
– Less competition for resources
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Centralized vs. Decentralized
Management (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Centralized vs. Decentralized
Management (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Organizing the IS Staff
• Central IS Organization: A corporate IS team over all
units
– IS Director oversees several departments
– Usually involved in every aspect of IT
– Often includes a steering committee
– Often easier to integrate an IS plan in a centralized
IS organization
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Organizing the IS Staff (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Organizing the IS Staff (Cont.)
• Dispersed IS Organization
– Each unit fulfills its IS needs individually
– Each business unit has one or several IS
professionals
– Funds for development and maintenance of unit’s
IS own budget
– Decisions made independently
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Organizing the IS Staff (Cont.)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Organizing the IS Staff (Cont.)
• A Hybrid Approach
– Small companies use the central approach
– Midsize and large use elements of central and
decentralized approaches
– Handled according to the position of the highest IS
officer in the organizational structure
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Business Managers’ Expectations
of an IS Unit
• Broad understanding of business activities
• Flexibility and adaptability
• Prompt response to the information needs of the
business unit
• Clear, jargon-free explanation of what technology can
and cannot do for the unit
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Business Managers’ Expectations
of an IS Unit (Cont.)
• Candid explanations of what information systems can
and cannot do
• Honest budgeting
• Single point of contact
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
IS Manager Expectations of
Business Managers
• Business planning
• Systems planning
• Systems selection or development
• Participation and partnership
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary
• Organizations are run by managers
• Senior managers make decisions that affect the entire
organization
• Middle managers receive strategic decisions as
general directives within which they develop tactics to
achieve specific objectives
• Operational managers are responsible for daily
operations
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Operational managers use transaction processing
systems to generate reports
• Clerical and other workers typically carry out their
supervisors' orders
• A major task of middle managers in the past was to
screen information and pass it on to higher-level
managers
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Because information is power, occasionally managers
try to obtain power by controlling ISs beyond their
real business needs
• Information technology provides very effective and
inexpensive means of monitoring employees on the
job
• There are many ways to organise IS staff
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Successful use of IS technology depends on an
understanding and collaboration between managers of
business units and IT managers
• IS managers expect business managers to project their
future information needs, clearly explain the business
processes that ISs should support and thoroughly
detail features they desire in a new IS
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning