Management Information Systems

WELCOME TO SESSION ON MIS

CH-3: Information Systems, Organizations, Management, and Strategy

Dr. Engr. Jnan Ranjan Sil, PHF BSc.Engg(civil), MBA(HRM), Doctor of Business Administration, PhD in Civil Engg.

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CH-3. Information Systems, Organizations, Management, and Strategy: 3.1 Organizations and Information systems: • Information systems and organizations influence one another.

• Information system must be aligned with the organization to provide information that important groups within the organization needed.

• At the same time , the organization must be aware of and be open to the influences of information systems in order to benefit from new technologies.

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Q. What are the mediating factors of organizations and information systems?

• The two-way relationship between organizations and information technology. This complex two-way relationship is mediated by many factors. These are – • Environment • Culture • Structure • Standard procedures • Business processes • Politics • Management decisions • chance 3

Q. What is an organization?

• An organization is a stable, formal social structure that takes resources from the environment and processes them to produce outputs.

• This technical definition focuses on three elements of an organization.

Organization

INPUTS FROM THE ENVIRONMENT

PRODUCTION PROCESS

OUTPUTS TO THE ENVIRONMENT

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Organization(behavioral definition): A more realistic behavioral definition of an organization is that it is a collection of rights, privileges, obligations, and responsibilities that are delicately balanced over a period of time through conflict and conflict resolution.

Q. What are the Common features of an organizations?

The Common features of organizations are • Standard operating procedures • Organization Politics • Organizational Culture

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Standard operating procedures(SOPs): Precise rules, procedures, and practices developed by organizations to cope with virtually all expected situations.

• Organizational Culture: The set of fundamental assumptions about what products the organization should produce, how and where it should produce them, and for whom they should be produced.

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Q. What are the structural characteristics of an organization?

The structural characteristics of all organizations are – • Clear division of labor • Hierarchy • Explicit rules and procedures • Impartial judgments • Technical qualifications for positions • Maximum organizational efficiency.

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Q. What are the types of organizational structures?

• Entrepreneurial structures: Small start-up business, • Machine bureaucracy: Midsize manufacturing firm • Divisional zed bureaucracy: Fortune 500 firms such as General Motors, • Professional bureaucracy: Law firms, school systems, • Adhocracy: Consulting firms such as the Rand Corporation.

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Q. What are the salient features of organizations?

Common features: • Formal structure • Standard operating procedures(SOPs) • Politics • Culture

Unique features : • Organization types • Environments • Goals • Power • Constituencies • Functions • Leadership • Tasks • Technology • Business processes 9

The Organization and Information Systems: THE ORGANIZATION Senior Management Major End Users(Divisions) Information System Department IT Infrastructure Information Systems Specialists CIO Managers Hardware System Analysts Software System Designers Data Storage Programmers/ database Adm 10

VIRTUAL ORGANIZATION: • VIRTUAL ORGANIZATION: Organization using networks to link people, assets, and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical locations.

• These types of organization take the opportunity of digital technology. They use wireless mobiles and internet facilities.

• They come together –face – face by electronically, not physically but virtually.

• Tele-conferencing, video-conferencing etc.

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The role of Managers in Organizations: Managers play a key role in organization. Their responsibilities range from making decisions, to write reports, to attending meetings, to arranging birthday parties. There are so many roles and duties they perform.

The major role of managers are – A)Interpersonal Roles: Figure head, leader and liaison.

B) Informational Roles: Nerve center, disseminator, spokesperson.

C) Decisional Roles: Entrepreneur, disturbance handler, resource allocator, negotiator.

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Different kinds of information systems at the various organization levels support different types of decisions: ORGANIZATIONAL LEVEL

Types of decisions

Operational level

Knowledge level

Structured

Accounts receivable (TPS)

Electronic Production cost scheduling (OS) overrun (MIS)

Management level

Strategic level

Budget preparation (MIS) Semistructured

Project scheduling

(DSS) Production facility location

Unstructured

Product design (KWS)

(ESS) New products New markets13

Stages of Decision making: • Making decisions consists of several different activities. Simon(1960) described four different stages in decision making: 1. Intelligence 2. Design, 3. Choice, and 4.Implementation.

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Stages of Decision making: 1. Intelligence consists of identifying and understanding the problems occurring in the organization – why problem, where, and with what effects.

2. During solution design, the individual designs possible solutions to the problems.

3. Choice consists of choosing among solution alternatives.

4. During solution implementation, when the decision is put into effect, managers can use a reporting system that delivers routine reports on the progress of a specific solution.

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The decision making process:

Decisions are often arrived at after a series of iterations and evaluations at each stage in the process. The decision maker often must loop back through one or more of the stages before completing the process.

• Is there a problem?

INTELLIGENCE

• What are the alternatives?

DESIGN

• Which should you choose?

CHOICE

• Is the choice working?

IMPLLEMENTATION 16

Q. What are the central organizational factors to consider when you planning a new information system?

• The environment in which the organization must function.

• The structure of the organization: hierarchy, specialization, and standard operating procedures.

• The organization’s culture and politics.

• The type of organization and its style of leadership.

• The principal interest groups affected by the system and the attitudes of workers who will be using the system.

• The kinds of tasks, decisions, and business processes that the information system is designed to assist.

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THANKS

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