Modern Management 9 th edition

1. . Modern Management9th edition

2. . Ü Objectives • An understanding of the relationship between data and information • Insights into the main factors that influence the value of information • Knowledge of some potential steps for evaluating information • An understanding of the importance of a management information system (MIS) to an organization • A feasible strategy for establishing an MIS • Information about what a management decision support system is and how it operates • An appreciation for the roles of computers and networks like the Internet in handling information

3. ESSENTIALS OF INFORMATION . • Data • Information • Factors Influencing the Value of Information • Information Appropriateness • Common decision-making situations: • 1. Operational control • 2. Management control • 3. Strategic planning • Operational Control, Management Control, • and Strategic Planning Decisions

4. ESSENTIALS OF INFORMATION . Characteristics of information appropriate for decisions related to operational control, management control, and strategic planning Figure 21.1

5. ESSENTIALS OF INFORMATION . • Information Quality • Data contamination • Information Timeliness • Information Quantity • Evaluating Information • Identifying and Evaluating Data • Evaluating the Cost of Data

6. ESSENTIALS OF INFORMATION . Flowchart of main activities in evaluating information Figure 21.2

7. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . • Describing the MIS • Operating the MIS • Sequential steps MIS personnel perform to operate MIS • I. Information to determine: •What’s needed •When is it needed •What form • Management information needs: • 1. Decision areas in which management makes decisions • 2. Specific decisions that management must actually make • 3. Alternatives that must be evaluated to make these specific decisions • II. Pinpoint and collect data that yields needed organizational information • III. Summarize data • IV. Analyze data • V. Transmit information generated by data analysis to appropriate managers • VI. Get managers to actually use information • Different Managers Need Different Kinds of Information

8. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . The six steps necessary to operate an MIS properly in order of their performance Figure 21.3

9. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . • Establishing an MIS • Planning for the MIS • Designing the MIS • Analyzing Managers’ Decisions • Stoller and Van Horn suggest: • 1. Defining various decisions that must be made to run an organization • 2. Determining existing management policies that influence decision-making • 3. Pinpointing types of data needed to make these decisions • 4. Establishing mechanism for gathering and appropriately processing data • Implementing the MIS • Enlisting Management Support

10. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . Appropriate MIS Information under various sets of organizational circumstances Figure 21.4

11. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . Plan for establishing a hypothetical MIS Figure 21.5

12. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . • Establishing an MIS (con’t) • Improving the MIS • Symptoms of an Inadequate MIS • Colbert divides symptoms into: • 1. Operational • 2. Psychological • 3. Report content • Answers help MIS managers determine weaknesses: • 1. Where and how do managers get information? • 2. Can managers make better use of their contacts to get information? • 3. In what areas is managers’ knowledge weakest, and how can managers be given information to minimize these weaknesses? • 4. Do managers tend to act before receiving information? • 5. Do managers wait so long for information that opportunities pass them by and the organization becomes bottlenecked?

13. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . Symptoms of an Inadequate MIS Table 21.1 Operational Large physical inventory adjustments Capital expenditure overruns Inability of executives to explain changes from year to year in operating results Uncertain direction of company growth Cost variances unexplainable No order backlog awareness No internal discussion of reported data Insufficient knowledge about competition Purchasing parts from outside vendors when internal capability and capacity to make are available Record of some “sour” investments in facilities, or in programs such as R&D and advertising Psychological Surprise at financial results Poor attitude of executives about usefulness of information Lack of understanding of financial information on part of nonfinancial executives Lack of concern for environmental changes Executive homework reviewing reports considered excessive Report Content Excessive use of tabulations of figures Multiple preparation and distribution of identical data Disagreeing information from different sources Lack of periodic comparative information and trends Lateness of information Too little or excess detail Inaccurate information Lack of standards for comparison Failure to identify variances by cause and responsibility Inadequate externally generated information

14. THE MANAGEMENT INFORMATIONSYSTEM (MIS) . • Establishing an MIS (con’t) • Improving the MIS (con’t) • Typical Improvements to an MIS • 1. Building cooperation among MIS personnel and line managers • 2. Constantly stressing that MIS personnel should strive to accomplish the purpose of the MIS—providing managers with decision-related information • 3. Holding, wherever possible, both line managers and MIS personnel accountable for MIS activities on a cost-benefit basis • 4. Operating an MIS in a “people-conscious” manner

15. INFORMATION TECHNOLOGY . • Computer Assistance in Using Information • Main Functions of Computers • Input • Storage • Processing • Control • Control activities indicate: • 1. When data should be retrieved after storage • 2. When and how the data should be analyzed • 3. If and when the data should be restored after analysis • 4. If and when additional data should be retrieved • 5. When output activities should begin and end • Output

16. INFORMATION TECHNOLOGY . Relationships among the five main functions of a computer Figure 21.6

17. INFORMATION TECHNOLOGY . • Computer Assistance in Using Information • Possible Pitfalls in Using Computers • 1. Thinking that a computer is capable of independently • performing creative activities • 2. Spending too much money on computer assistance • 3. Overestimating the value of computer output

18. THE MANAGEMENT DECISION SUPPORT SYSTEM (MDSS) . • MDSS is typically characterized by: • 1. One or more corporate databases • 2. One or more user databases • 3. A set of quantitative tools stored in a model base • •”What if” analysis • 4. A dialogue capability

19. THE MANAGEMENT DECISION SUPPORT SYSTEM (MDSS) . Possible components of a management decision support system (MDSS) Figure 21.7

20. COMPUTER NETWORKS . • The Local Area Network • The Internet • The World Wide Web • Web site helps managers reach organizational goals like: • Marketing products more effectively • Enhancing the quality of recruits to the organization • Enhancing product quality • Communicating globally • Encouraging creativity in organization members • E-Mail • Intranets

21. COMPUTER NETWORKS . Total dollar sales of equipment used to build LANs in organizations Figure 21.8

22. COMPUTER NETWORKS . Hotjobs is an Internet site where managers can list open positions and prospective applicants can review them Figure 21.9

23. COMPUTER NETWORKS . The World Wide Web home page of WebSolvers Figure 21.10

24. COMPUTER NETWORKS . Fees for typical Web project charged to Fortune 500 clients and percent of Web consulting firms surveyed charging those fees Figure 21.11

25. COMPUTER NETWORKS . Hints on How to E-mail Table 21.2 1. Consider e-mail as you would a hard-copy letter. Proofread all your messages carefully before sending. If your program includes a spellchecker, learn how to use it. 2. Research and follow your company’s policies about sending copies to the appropriate colleagues. 3. Remember that e-mail can be monitored in some firms, and that it has been retrieved from hard drives and used as evidence in court cases. Do not use e-mail to start or circulate rumors, repeat damaging information, or spread misinformation. 4. Be sure your message is clear and unambiguous. It should indicate whether or not you require a reply. 5. Do not reply to e-mails that are just confirmations or acknowledgments. Your e-mail will multiply unnecessarily if you do. 6. Write a letter when angry if you must, but do not send or save it. 7. Use a simple filing system for e-mails you need to save. 8. Do not send or reply to chain letters. They clog the system and have been known to shut down entire networks. 9. Be conservative about adding your name to mailing lists and newsletters. 10. Do your personal correspondence from your home computer.

26. COMPUTER NETWORKS . Intranet home page for HTE Figure 21.12

27. Chapter Twenty-One ? Questions