1. Management Information Systems By Effy Oz & Andy Jones
Chapter 9: Managers and Their Information Needs

2. 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

3. 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

4. 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

5. 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

6. 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

7. The Traditional Organizational Pyramid (Cont.)

8. 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

9. 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

10. 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

11. Characteristics of Information at Different Managerial Levels (Cont.)

12. The Nature of Managerial Work

13. Planning Most important planning activities
Planning at different levels
Long-term mission and vision
Strategic goals
Tactical objectives
Most important planning activities
Scheduling
Budgeting
Resource allocation

14. Planning (Cont.)

15. Planning (Cont.)

16. Controlling
Control activities by comparing plans to results

17. 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

18. Management by Exception
Review only exceptions from expected results that are of a certain size or type to save time

19. 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

20. Organizational Structure
IT Flattens the Organization
Eliminates middle managers

21. 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

22. The Matrix Structure

23. Managers and Their Information Systems

24. 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

25. 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

26. 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

27. Information, Politics, and Power
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

28. 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 and Web access

29. 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

30. 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

31. 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

32. Centralized vs. Decentralized Management (Cont.)

33. 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

34. Centralized vs. Decentralized Management (Cont.)

35. Centralized vs. Decentralized Management (Cont.)

36. 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

37. Organizing the IS Staff (Cont.)

38. 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

39. Organizing the IS Staff (Cont.)

40. 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

41. 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

42. Business Managers’ Expectations of an IS Unit (Cont.)
Candid explanations of what information systems can and cannot do
Honest budgeting
Single point of contact

43. IS Manager Expectations of Business Managers
Business planning
Systems planning
Systems selection or development
Participation and partnership

44. 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

45. 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

46. 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

47. 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