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Management Information Systems

TVSN Murthy Assistant Professor DFT NIFT Hyderabad

Disclaimer: These slides are just for the purpose of easy reading and are not comprehensive in nature. Thus the slides have to be read together with the class lectures, reading material, and statutes dealing with the subject

Information and Organizations

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Chapter 2

Information Systems in Organizations


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Organizations and Information Systems


Organization
A formal collection of people and other resources established to accomplish a set of goals

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General Model of an Organization


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Value Chain
Term coined by Michael Porter in a 1985 article in the Harvard Business Review Def: a series of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service
Schematic
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Organizations
Organizational structure
Organizational subunits and the way they are related to the overall organization

Traditional organizational structure


Major department heads report to a president or top-level manager

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Organizational Structures (1)


Hierarchical organizational structure
Series of levels Those at high levels have more power and authority within an organization

Flat organizational structure


An organizational structure with a reduced number of layers of management
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Other Organizational Structures (2)


Multidimensional organizational structure
A structure that may incorporate several Schematic structures at the same time

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Vice President, Marketing Publisher, College Division Publisher, Trade Division Publisher, High School Division Marketing Group Marketing Group Marketing Group

Vice President, Production Production Group Production Group Production Group

Vice President, Finance Finance Group Finance Group Finance Group

Multidimensional Organizational Structure


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Organizational Structures (3)


Advantages and disadvantages of different organizational structures
Self Study

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Functions of Management
Management is the process of directing tasks and organizing resources to achieve the organizational goals. Main functions include:
Planning Organizing Leading Controlling
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Planning
Is deciding what to do. This function entails evaluating the organizations resources and environment and establishing a set of organizational goals.

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Organizing (1)
Second managerial function Organizing is the art of deciding how to achieve the goals of the organization. This requires developing the best organizational structure, acquiring and training personnel, and establishing communication networks.
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Organizing (2)
For example, a computer stores department may be organized and staffed with sales people, technical support representatives, training personnel and systems analysts to support the marketing effort.

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Leading
Third managerial function. It involves directing and motivating the employees to achieve the organizations goals. For example, manager of the computer stores department may need to develop an incentive program to motivate sales people and to organize the team-building efforts to maintain good morale.
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Controlling (1)
Fourth managerial function. Controlling enables the manager to determine the organizations performance. Manager may develop and use the performance standards to assess the employee performance.

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Controlling (2)
Information Systems (IS) can provide feedback on how effectively the resources are being used to achieve business goals.

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Managerial Functions
Establishing organizational goals Developing strategies to achieve goals Organization Developing the structure of the organization Acquiring human resources Leading Motivating and managing employees Forming task groups Controlling Evaluating performance Controlling the organizations resources Planning

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Managerial Roles
The three important roles are:
Interpersonal Informational Decisional

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Interpersonal Role (1)


Further divided into
Figurehead Role Leader Role Liaison Role

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Interpersonal Role (2)


In the Figurehead role, the manager performs ceremonial duties such as greeting job candidates and dignitaries.

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Interpersonal Role (3)


In the leadership role, Manager must hire, train and motivate employees

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Interpersonal Role (4)


In the liaison role, the manager makes contacts outside the vertical chain of command.

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Informational Role (1)


Further divided into
Monitor Disseminator Spokesperson

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Informational Role (2)


Manager have formal access to information from virtually every internal staff member as well as extensive external information. Monitoring/Scanning the environment for information is one of the most important tasks of manager.

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Informational Role (3)


Manager is also a Disseminator of information and in this role, the manager may choose to pass certain information along peers and to subordinates.

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Informational Role (4)


In the spokesperson role, the manager provides information to the external community, which includes the suppliers, the press, etc.,

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Decisional Role (1)


The Decisional Roles to the manager are of most important. This include the entrepreneurial role, the disturbance handler role, the resource allocator role and the negotiator role.

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Decisional Role (2)


In an entrepreneurial role, the manager is constantly looking for new ideas. On some occasions the manager has to be a disturbance handler. When internal or external disputes affect the companys operations, a senior manager may have to respond to pressures and the manager must act to solve the problem.
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Decision Role (3)


Resource allocator role is another important decisional role where the manager has to allocate the resources. As a resource allocator, the manager determines who will get what. The resource allocation manager may decide how much money is to be spent on recruiting and training new sales personnel.
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Decisional Role (4)


The final decisional role is negotiator. This type of manager is responsible for representing the organization in bargaining with others customers, shipping companies, manufacturers.

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Managerial Roles
The performance of the manager is measured by the ability to distinguishing the difference between the efficiency and effectiveness.

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Managerial Roles
Efficiency is defined as doing the right things In business context, it means being able to achieve the high levels of output for a given input and effectiveness means that a job assigned supports the goals of the business. Efficiency - productivity metric and Effectiveness - quality metric!

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Efficiency
Efficiency is a productivity metrics meaning how fast one can do something. Hence Testing efficiency metric can be "No. of test cases executed per hour or per person day". This explains how efficient (i.e. fast) the person is at testing.

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Effectiveness
Effectiveness is a quality metrics meaning how good a person is at testing. Hence Testing effectiveness metrics can be "No. of bugs identified by a tester in a given feature / Total no. of bugs identified in that feature". Here the difference between total bugs and bugs identified by the tester could be that some bugs must have been uncovered by the customer since the tester was not able to detect them during testing.
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Efficiency vs Effectiveness
Effectiveness means being able to achieve a goal while Efficiency is achieving the goals with minimum resources

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