1 chapter 9 managers and their information needs
TRANSCRIPT
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Chapter 9Managers and Their Information Needs
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Learning Objectives
When you finish this chapter, you will: See the link between an organization’s
structure and information flow. Be able to list the main functions and
information needs at different managerial levels.
Recognize the characteristics of information needed by different managerial levels.
Recognize the influence of politics on the design of, and accessibility to, information systems.
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Managers and Information
Generally, managers at different levels of an organizational hierarchy:Make different types of decisionsControl different types of processesTherefore, they have different
information needs
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Managers and Information
Figure 9.1 The management pyramid
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The Traditional Organizational Pyramid Many organizations follow pyramid model
CEO at top Small group of senior managers, one level down Larger number of middle managers, reporting to
senior managers Many more lower-level managers who report to
middle managers
Clerical and Shop Floor Workers Bottom of organizational pyramid
Operational Management In charge of small groups of front-line workers
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The Traditional Organizational Pyramid
Tactical ManagementAlso called middle managersMake decisions for subordinates,
affecting the near and somewhat more distant future
Strategic ManagementDecisions affect entire or large parts of
the organization; “what to do” decisions
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Characteristics of Information at Different Managerial Levels
Different management levels have different information needs
Information needed by different managerial and operational levels varies in the time span covered, level of detail, source, and other characteristics over a broad spectrum
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Characteristics of Information at Different Managerial Levels
Data RangeAmount 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
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Characteristics of Information at Different Managerial Levels
Source: Internal versus ExternalInternal data: collected within the
organizationExternal data: collected from outside
sources• Media, newsletters, government
agencies, Internet
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Characteristics of Information at Different Managerial Levels
Structured and Unstructured DataStructured data: numbers and facts
easily stored and retrievedUnstructured data: drawn from
meetings, conversations, documents, presentations, etc.
• Valuable in managerial decision making
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The Web: The Great Equalizer Outside information now easier to get More free information Information available in easy-to-manipulate
format “Data shoppers” allowed to download data
they can further process to fit their needs Subscriptions to online message services
on highly focused topics Results of research and reports of trends
and forecasts offered for a fee
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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
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The Nature of Managerial Work
Figure 9.3 An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturer
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The Nature of Managerial Work
Figure 9.4 The main ingredients of planning
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Figure 9.5 Examples of processes used to control projects
The Nature of Managerial Work
ControllingManagers control activities by
comparing plans to results.
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The Nature of Managerial Work
Decision MakingBoth planning and control call for
decision makingThe higher the level of management:
• The less routine the manager’s activities• The more open the options• The more decision-making involved
17 Figure 9.6 An example of a budgetary exception report
The Nature of Managerial Work
Management by ExceptionManagers review only exceptions from
expected results that are of a certain size or type to save time.
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The Nature of Managerial Work Leading
Managers expected to lead, which requires• Having a vision and creating confidence in others• Initiating activities to make work efficient and
effective• Creating new techniques to achieve corporate
goals • Encouraging and inspiring subordinates• Presenting a role model for desired behavior• Taking responsibility for undesired consequences• Motivating employees and delegating authority
19Figure 9.7 Information systems flatten managerial layers
Trends in Organizational Structure
IT Flattens the OrganizationEliminates several layers of middle
managers
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Trends in Organizational Structure
The Matrix StructurePeople report to different supervisors,
depending on project, product, or location of work
More successful for smaller, entrepreneurial firms
IT supports matrix structure• Easier access to cross-functional
information
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Trends in Organizational Structure
Figure 9.8 An example of a matrix organization
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Characteristics of Effective Information
Tabular and Graphical RepresentationCertain 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
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Characteristics of Effective Information
Figure 9.9 Tabular and graphical presentations: the information in the two presentations is identical, but the trend is detected faster with the line graph.
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Characteristics of Effective Information On-line Analytical Processing (OLAP)
Cube of tables showing relationships among related variables
Operates on specially organized data or on relational database data
Easily answers questions like “What products are selling well?” or “Where are the weakest-performing sales offices?”
Faster than relational applications
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Characteristics of Effective Information
Figure 9.10 OLAP applications provide information on multiple dimensions for management decision making.
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Characteristics of Effective Information
Dynamic RepresentationData presented in real timeIncludes moving images representing
speed or directionChanging colors represent rate of
changeUse expected to grow
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Managers and Their Information Systems
Figure 9.11 Types of information systems typically used at different levels of an organization’s hierarchy
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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
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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
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Managers and Their Information Systems
Executive Information Systems (EIS)Provide timely, concise information
about organization to top managersProvide internal as well as external
information• Economic indices• Stock and commodity prices• Industry trends
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Managers and Their Information Systems Customer Relationship management
Systems (CRM) Help collect data about customers Analyze the data into useful information to
help serve customers better Help managers find effective and efficient
marketing strategies Challenge
• Address the right customer at the right time with the right offer
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Information, Politics, and Power Politics
Development and control of ISs often involves problematic politics
Power Information affords power which can be
problematic.• Who owns the system?• Who pays for developing the system?• Who accesses what information?• Who has update privileges?
The Not-Invented-Here Phenomenon
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Ethical and Societal IssuesElectronic Monitoring of Employees Monitoring on the Rise
73.6% of major U.S. firms reported recording and reviewing employees’ communications and activities on the job (AMA published survey, April 2001)
The Microchips Are Watching Video cameras Software to count keystrokes Artificial intelligence to monitor cash
disbursement and detect fraud Monitoring e-mail and Web access
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Ethical and Societal IssuesElectronic Monitoring of Employees The Employers’ Position
Entitled to know how employees spend time Believe monitoring is an objective,
nondiscriminatory method to gauge output The Employees’ Position
Deprives them of autonomy and dignity Increases stress and stress-related illness
and injury