Management Information Systems: Classic Models and New Approaches Chapter 17 Objectives • List and describe the classic functions of managers – planning, organizing, staffing, directing, and controlling • Describe the purpose and components of a management information system (MIS) • Explain how computer networking and related software have flattened the classic management pyramid Objectives • Describe how many companies use employees in task-oriented teams • Describe the purpose and function of sophisticated software for top managers • Explain the problems and solutions related to managing personal computers • Explain the concept of total cost of personal computer ownership Contents • Management Functions • Management Levels • Information Systems • Personal Computer Management • MIS Leads into the Future Management Functions Planning • Get the job done • On time • Within budget Devise short-range and long-range plans and set goals to help achieve the plans Organizing How to use resources • Satisfactorily Staffing • Using available resources Directing Guiding employees to perform their work Controlling Monitoring progress towards goals 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 Management Levels • Job titles – Chief information officer (CIO) – Director of information services – Information resource manager – MIS manager • Comfortable with – Computer technology – Organization’s business Management Levels 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 Management Levels Interaction Among Employees Modern Hierarchy • Dispersion of information via network – E-mail – Groupware • Authority and work of managers has been altered • Promotes sharing of information • Decisions that were once management are now open for comment and change • Supports team-based and information-driven organization Management Levels Interaction Among Employees Need new ways to monitor employees • Selection and training of employees • Set clear expectations • Use customer satisfaction to determine performance Management Levels Flattening the pyramid Information Systems MIS Management Information System DSS Decision Support Systems EIS Executive Information Systems MIS Management Information System • Data + Organization • Set of formal business systems designed to provide information for an organization • Computers are typical components DSS Decision Support Systems • Supplements an MIS • Pulls information from variety of databases • Interactive • Nonroutine decision-making • Model – mathematical representation of reallife system • Simulation – using a computer model to reach a decision about a real-life situation MIS vs. DSS • MIS – Planned reporting – Standard, scheduled, structured, and routine – Constrained by the organizational system • DSS – Decision making – Unstructured and by request – Immediate and friendly EIS 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 Personal Computers Management • Benefits – Increased productivity – Independence from MIS department • Problems – – – – – – No one in charge of overall purchase of PCs Incompatibility Network related issues Needed data from MIS Training Inventory Personal Computers Management Solutions • Staffing – Personal Computer Manager – Network Manager • • • • • Acquisitions policies Information centers for assistance and training Use software to control inventory of PCs Remote access Consider total cost of ownership (TCO) Personal Computers Management • Personal Computer Manager – Technology overload – provide guidance to users for purchase and use – Data security and integrity – addresses the issues of who has access to what – Computer junkies – set guidelines for PC use • Network Manager – – – – – Operational Provide methods for sharing Install software Backup Network security Personal Computers Management Manager Characteristics • MIS background • Technical knowledge • Benefits and limitations of computers Personal Computers Acquisition • Standards – Hardware – Software – Data communications • Limit the number of vendors Personal Computers Information Center • Services – Software and hardware selection – Data access – Network access – Training – Technical assistance • Easily accessible location • “User comes first” Personal Computers Training Traditional approach – Sporadic participation – Minimal results for extended training Better approach – – – – – Initial training Home-grown gurus Follow-up support Involve the workers Web and CD based training Personal Computers Inventory • Budgets • Software – Count computers – Determines components – Determine installed software Personal Computers Remote Access • Equipment needs • Security concern • Training TCO Total Cost of Ownership • Initial hardware and software • Training • Support • Upgrading • Maintenance • Hardware • Software extras • Communications networks TCO estimated at four times the hardware costs! TCO Reduce the TCO • Limited Options – standardize the ordering process including hardware, software, and options • Helpful software – counts computers and determines their components and installed software in a networked environment • Hardware and software upgrades – insure there is justification for an upgrade Management Information Systems Leading Business into the Future