IE from a Manager's Perspective:
Business Administration, Organization
Theory, Principles of Management,
Management Information Systems
By
Assoc. Prof. Haluk S. Balkan
Dept. of Industrial Engineering, E.M.U.
1
Engineer
a person who uses scientific
knowledge to solve practical
problems
www.thefreedictionary.com
2
Industrial Engineering
the branch of engineering
that deals with the creation
and management of
systems that integrate
people and materials and
energy in productive ways
www.thefreedictionary.com
3
Management Systems Organizations
 Management Systems Organizations
are systems created by people to create
synergy in achieving their common
objectives. Organizations are formed to
bring together people, technology, and
resources in a predictable manner to
get productive results that will lead them
towards their objectives.
4
The main role of management is:
set the organizational goals,
direct the tasks, and
organize the resources
to reach the organizational
goals.
5
Vision
 A vision is the concise but clear statement of
what is foreseen as a successful future for the
company or the organization. A vision is an
abstract glimpse of the future and it can only
be materialized if we set the required bold
goals with clear definitions and time frames,
which will take us nearer to that envisioned
future.
6
Sample Vision Statements
 As explained in their official web site www.koc.com.tr , in
2002,The vision statement of the Koç Group of Istanbul
(www.koc.com.tr, 2002): reshape its business portfolio in order
to "be closest to the consumer by manufacturing, marketing and
selling consumer products and services". In 2008 they revised
their vision as: “To become one of Europe's leading companies
through rapid and profitable growth”.
 Sabancı Group of Turkey has declared its vision at their official
web site www.sabanci.com.tr as: “Poised in a position of
strength and leadership in the heart of Turkey, to competently
and efficiently utilize the natural resources and values of our
region, we will embrace our destiny to become a thriving,
respected, and influential player in today's global market, in
order to do our part to create a better world for all.” In 2008 they
simplified their statement as: “Creating sustainable advantage
through differentiation”
7
Mission
 The contemporary term “mission” is used to
denote those bold goals. Mission statement
of an organization should be updated with
new goals once the previous ones are
achieved.
 The achievement of the mission goals will
depend on the decisions to be taken as to
what actions must be performed and the
planning of the performance of those actions.
8
Mission
 Mission Statement of Sabancı group(2008)
Managing a competitive strategic portfolio
with sustainable growth potential to create
value for all of our stockholders.
9
Basic Functions of Management
 Planning,
 Decision making,
 Leading and motivating,
 Organizing, and
 Controlling
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Decision making
Decision making is the acts of
making the best choice among
possibly infinite amount of
alternatives of courses of action
that have a reasonable chance
of achieving a given objective.
11
Classification of decision making situations
Classification is based on the amount and
quality of information the decision maker
possesses about the environment of the
decision making situation:
(1) decision making under certainty;
(2) decision making under risk; and
(3) decision making under uncertainty.
12
Leadership
 “Leadership is the process of influencing and
supporting others to work enthusiastically
toward achieving objectives. It is determined
partially by traits, which provide the potential
for leadership, and also by one’s role
behavior. Leader’s roles combine technical,
human, and conceptual skills, which leaders
apply in different degrees at various
organizational levels.”
Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed.,
McGraw-Hill,1993, p. 239.
13
Factors to differentiate a good leader
 A high level of personal drive;
 The desire to lead;
 Personal integrity
 Self-confidence;
 Analytical ability and judgment;
 Knowledge of the organization.
14
Motivation
The psychological feature that
arouses an organism to action
toward a desired goal; the
reason for the action; that which
gives purpose and direction to
behavior. www.thefreedictionary.com
15
The motivational needs of people
 Primary (Lower order) needs:
 First level:
Needs for food, air, water and sleep.
 Second level: bodily safety, economic security (nolayoff guarantee, comfortable retirement plan, etc)
 Higher Order needs:
 Achievement motivation
 Affiliation Motivation
 Competence motivation
 Power motivation
16
Division of Work
 Division of Work concerns the division of the existing
work to the workers by the dividing first into levels
according to the levels of authority and responsibility,
scalar process. Later, the jobs within the same
authority level are divided according to the duties of
the worker, functional process. When applied
together and properly scalar and functional
processes insure a perfect organization with no
unassigned areas and no overlaps of assignment to
assure the organization to integrate its diverse
activities.
17
Delegation
 Delegation is the assignment duties,
authority, and responsibility to others.
Delegation permits a manager to extend their
work capacity beyond the limits of their own
limited personal time, energy, and
knowledge.
18
Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGrawHill,1993, p. 232
19
Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGrawHill,1993, p. 232

20
Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGrawHill,1993, p. 232

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information system (IS)
 An information system (IS) is an
arrangement of people, data, processes, and
information technology that interact to collect,
process, store, and provide as output the
information needed to support an
organization.

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)
22
Information technology (IT)
Information technology is a contemporary
term that describes the combination of
computer technology (hardware and software)
with telecommunications technology (data,
image, and voice networks).

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)
23
Classification Information Systems
A transaction processing system (TPS) is an information
system that captures and processes data about business
transactions.
A management information system (MIS) is an information
system that provides for management-oriented reporting
based on transaction processing and operations of the
organization.
A decision support system (DSS) is an information system
that either helps to identify decision making opportunities or
provides information to help make decisions.

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)
24
Classification Information Systems
An expert system is an information system that captures the
expertise of workers and then simulates that expertise to the
benefit of nonexperts.
A communications and collaboration system is an
information system that enables more effective
communications between workers, partners, customers, and
suppliers to enhance their ability to collaborate.
An office automation system is an information system that
supports the wide range of business office activities that
provide for improved work flow between workers.

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)
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REFERENCES:
 Newstrom, J.W., Keith Davis, “Organizational





behavior: Human Behavior at Work”, 9th (int.) Ed.,
McGraw-Hill,(1993).
Schultheis, Robert and Mary Sumner, “Management
Information Systems: The Manager’s View”,4th
(int.)Ed., McGraw-Hill (1998).
Whitten,Bentley,Dittman,”System Analysis and
Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)
www.koc.com.tr
www.sabanci.com.tr
www.thefreedictionary.com
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Thank you for listening
IE from a Manager's Perspective: Business Administration,
Organization Theory, Principles of Management, Management
Information Systems
By
Assoc. Prof. Haluk S. Balkan
Dept. of Industrial Engineering, E.M.U.
27