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Chapter 9 Managers and Their Information Needs

This chapter delves into the organizational pyramid model, information characteristics across managerial levels, internal vs. external data sources, and the impact of information systems on managerial layers. It explores managerial work nature, including planning, control, decision-making, and leadership, emphasizing the role of information systems in enhancing efficiency and effectiveness. The text highlights the use of different types of information systems, such as Transaction-Processing Systems (TPS), Decision Support Systems (DSS), Expert Systems (ES), and Executive Information Systems (EIS), in aiding managerial decision-making processes.

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Chapter 9 Managers and Their Information Needs

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  1. Chapter 9Managers and TheirInformation Needs

  2. The 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

  3. The Organizational Pyramid • 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

  4. Characteristics of Information at Different Managerial Levels • Data Range • 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

  5. Source: Internal vs. External • Internal data: collected within the organization • External data: collected from outside sources • Media, newsletters, government agencies, Internet

  6. 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

  7. The Web: The Great Equalizer • Outside information now easier to get • More free information • Information available in easy-to-manipulate format

  8. The Nature of Managerial Work • Planning • Planning at different levels • Long-term mission and vision • Strategic goals • Tactical objectives • Most important planning activities • Scheduling • Budgeting • Resource allocation

  9. The main ingredients of planning The Nature of Managerial Work

  10. Examples of processes used to control projects The Nature of Managerial Work • Control • Managers control activities by comparing plans to results.

  11. The Nature of Managerial Work • 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 decision-making involved

  12. An example of a budgetary exception report The Nature of Managerial Work • Management by Exception • Managers review only exceptionsfrom expected results that are of a certain size or type to save time.

  13. The Nature of Managerial Work • Leadership • Managers expected to lead, which requires • Having a vision and creating confidence in others • Encouraging and inspiring subordinates • Initiating activities to make work efficient and effective • Creating new techniques to achieve corporate goals • Presenting a role model for desired behavior • Taking responsibility for undesiredconsequences • Delegating authority

  14. Information systems flatten managerial layers Organizational Structure • IT Flattens the Organization • Eliminates middle managers

  15. Organizational Structure • The Matrix Structure • People report to different supervisors, depending on project, product, or location of work • IT supports matrix structure • Easier access to cross-functional information

  16. Characteristics of Effective Information • Tabular and Graphical Representation • Certain information better presented graphically • Trends as lines • Distributions as pie charts • Performance comparisons as bar charts • Many people prefer tabular data for complex problem solving

  17. Types of information systems typically used at different levels of an organization’s hierarchy Managers and Their Information Systems

  18. Managers and Their Information Systems • 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

  19. Managers and Their Information Systems • 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

  20. Managers and Their Information Systems • 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

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