INFS 212 Principles of Management

Transcription

1 INFS 212 Principles of Management Session 13 Information and Management Lecturer: Dr. Emmanuel Adjei Department of Information Studies Contact Information: College of Education School of Continuing and Distance Education 2014/ /2017

2 Session Overview Information is fundamental to the management process. Managers must have current and accurate information in order to manage effectively. Organisations must therefore have in place good information systems which collect, organise and distribute data in such a way that they become meaningful In this session, we will discuss the important function. We will focus on the requirements of an information system and management information systems at the strategic tactic and operational levels of management. Slide 2

3 Session Objectives Objectives By the end of this Session, the student should be able to Identify the information requirement of upper, middle and lower management Describe the characteristics of useful information Understand the value of management information systems Distinguish among the types of information systems in used by organisations Slide 3

4 Session Outline The key topics to be covered in the session are as follows: Topic One: Defining an information system Topic Two: Characteristics of Useful Information Topic Three: Information Needs of Managers Topic Four: Types of Information System Slide 4

5 Reading List Information and Control 1. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 19 Pages ). Slide 5

6 Topic One DEFINING AN INFORMATION SYSTEM Slide 6

7 Defining an Information System The combination of human and computer-base resources that results in the collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and business planning. Slide 7

8 Topic Two CHARACTERISTICS OF USEFUL INFORMATION Slide 8

9 Characteristics of Useful Information For information to be useful to the decision maker, it must have certain characteristics and meet certain criteria. Some of the characteristics of good information are discussed as follow: Understanding Timely Relevant Cost-effective Complete Availability Reliability Concise Slide 9

10 Topic Three INFORMATION NEEDS OF MANAGERS Slide 10

11 Information Needs Of Managers Information is needed by management at all the three levels of the organisational hierarchy Operational level Information needed should be well-defined, detailed and accurate. Needed information designed to help managers direct and control resources and activities for which they are responsible. Slide 11

12 Information Needs of Managers Examples; Operational information on daily rate payable to employees Rate of pay per hour Detail of time each man spent on individual job in a week The amount of raw materials required in the production process Information on job openings Information on attendance, turnover, safety. Slide 12

13 Information Needs of Managers Sources of information At this level the information needed is generated internally and includes all printouts of the organisation s information system Example Monitoring reports Investment reports Detailed transactions reports Procedure manuals Slide 13

14 Information Needs of Managers Middle management Managers at this level are concerned with the current and future performance of their units and generally require summarised information that compares present and past performances. Source of information Both internal and external Example; Information about inventories Slide 14

15 Information Needs of Managers Short term purchasing requirement Productivity measurement Material and labour cost Budget control Labour turnover statistics Schedule to be met Much of the information needed at this level is through interpersonal interaction Slide 15

16 Information Needs of Managers Top Level Manager (Upper Management) Top level management is primarily concerned with strategic planning. Information needed comes from outside sources. E.g. Information on: General economic conditions Technological developments Action of competitors Political and legal environment etc. Slide 16

17 Information Needs of Managers Managers at this level spend much time on strategic planning. They use strategic information to plan the objectives of the organisation. Need summarised, aggregated information. Much of this is obtained from external sources. Managers receive external information from formal and informal sources Correspondence Slide 17

18 Information Needs of Managers Formal source Government statistics Published reports Scientific and technical abstracts Commercial data Commercial databanks etc. Informal sources Discussions Social contracts of all types Media coverage Conferences Business and holiday trips at home and abroad Slide 18

19 Information Needs of Managers Strategic planning Deals with past, present, and future; covers broad areas, very summarised; more external and internal Tactical planning Operational planning Compares past and present; more than one focus; summarised; mostly internal but some external Current information; usually narrow focus on one area; very detailed; information about internal activities of an organisation Slide 19

20 Topic Four TYPES OF INFORMATION SYSTEM Slide 20

21 Types of Information System There are several types of information system in use. Six of these are discussed as follows Transaction processing systems (TPS) Management information system (MIS) Decision support system (DSS) Executive Support system ( ESS) Expert System (ES) Slide 21

22 Types of Information System Transaction processing systems (TPS) A transaction processing system (TPS ) is an information system which records transactions that take place between two or more business entities. These systems keep track of such basic business activities such as sales, cash deposits, flow of materials, payroll transactions and so on. A sales transaction, for example, may include the customer s name, type of merchandise purchased, price paid and the mode of payment such as cash or credit card. The primary purpose of the systems is to record, process and store information about transactions that take place in the various functional areas of business for future retrieval and use. Slide 22

23 Types of Information System Management information system (MIS) Management information systems are general purpose systems that provide managers with vital information about organisational activities. It is an organised collection of people, procedures, data bases and computers that provide routine reports to decision makers. The input to an MIS comes primarily from transaction processing systems and the output is simple a summary report of these transactions. For examples, a bank manager may get a summary report of the daily transactions of deposits and withdrawals at his branch. Slide 23

24 Types of Information System Decision support system (DSS) Decision support systems provide managers with data and tools for decision making for specific semi-semi structured and unstructured problems. For example, if one company wants to acquire another company, then this would be a unique problem rather than a routine problem requiring a unique solution. Slide 24

25 Types of Information System Executive Support system ( ESS) An ESS is a specialized decision support system, primarily designed to be used by top executives of a company. The information is gathered from internal as well as external sources. This information is analyzed by sophisticated software and the output, in a summarized form, is used by top management engaged in a longrange planning, crisis management and other strategic decision. Slide 25

26 Types of Information System Top level managers expect an ESS to provide them with information needed to Understand their organisation s position in the industry. Build communication based networks with people inside and outside the organisation Monitor situation of special interests through specialized details. Deal with multiple problems simultaneously Slide 26

27 The Functions of Management Expert System (ES) Expert systems are information systems in which programmers store data and rules to replicate the abilities and decision of human experts in specialized fields. They are built on a framework of known facts and responses to situations. They may incorporate such knowledge and problem solving skills as that of a nuclear scientist or a physician. An ES has three main components. These are A knowledge base Inference engine User interface Slide 27

28 Types of Information System Office automation systems. Office automation systems serve the needs of those who are primarily involved in processing of data such as word processing specialists, file clerks and so on. These systems support the automation of various managerial and clerical activities. According to Gupta, office automations system include: Word processing: creating written documents such as letters and reports on a computer using a software programme. Slide 28

29 Types of Information System Desktop publishing : Using software with sophisticated publishing capabilities to create documents. sending mail electronically from one computer to others. Video conferencing: Using group oriented systems that allow users in different parts of the world to discuss matters in a televised face-to-face communication. Facsimile transmission: Using faxes as instruments in transferring information over phone lines to users anywhere in the world. Slide 29

30 Summary In this Session you learned that information is fundamental to the management process. Managers must have current and accurate information in order to manage effectively. Organisations must, therefore, have in place efficient and effective information systems which collect and organise and distributes data in such a way that they become meaningful as information. You also learned about the characteristics of useful information. For information to be useful, it must be understandable; relevant; complete; available; reliable; concise; timely and cost- effective. We also noted that information systems are designed and set up by organisation to provide information to all managers regardless their position in the management hierarchy. Slide 30

31 Sample Questions for Consideration 1. What are the various characteristics of useful information? Discuss each briefly. 2. What type of information is needed at top level of management as compared to the information needed at the operational level of management? 3. Explain in details the following information systems: i. Transaction Processing systems ii. Decision Support Systems iii. Expert Systems Slide 31

32 References 1. Chandan JS (2002). Management: Concepts and Strategies. New Delhi, Vikas Publishing House, PVT Ltd (Read Chapter 19 Pages ). Slide 32