TEAM WORK

a. Divide workers into task-focused teams (teams contain workers from throughout the organization - when the task is completed, the team is disbanded)
b. Groupware and networks make working in teams much easier.

Top Managers and Computers

a. In the past, managers received printed reports (today, most managers have personal computer on their desks)
b. System designed for top managers (- decision support system - executive information system)

Decision Support System
Support executives in nonroutine decision-making tasks (-executives deal with a constantly changing environment - decisions need to be made that have no precedent)

Key Components of a DSS

• A modeling process (model - a mathematical representation of real-life system)
• Uses variable to produce output
• Simulation - using a computer model to reach a decision about a real-life situation.
  

Variables

• Independent variables - inputs to the system (can be changed to test different scenarios)
• Dependent variables - outputs of the system (called dependent because their values depend on the values of the independent variables)

Executive Information System
Concerned with how decisions affect an entire organization (Use information from an organization's system - Also use information from outside the organization, for example, competitors, government agencies, and the financial community)

DIFFERENCES BETWEEN DSS AND MIS

• MIS emphasizes planned reports on a variety of subject - DSS focuses on decision making
• MIS reports are standard, structured, scheduled, and routine - DSS is unstructured and available on request
• MIS is constrained by the organizational system - DSS is immediate and friendly

Managing Personal Computer

Several problems emerged as personal computer usage exploded
- No one person managed the process of moving from mainframe computer to PCs
- Computers and software were not necessarily compatible
- Users still needed the MIS department (needed help with hardware and software - MIS department still had the data
- Workers needed training

Solution to These Problems

• Create personal computer manager
• Create acquisition policies
• Create information centers
• Locate, count, and inventory personal computers
• Consider the total cost of ownership of personal computers
  

Personal Computer Manager

• Takes control of personal computers for the company (sometime called a network manager)
• Potential problem areas (-Technology overload - Data security and integrity - Computer junkies)

-Technology overload

• Users can become overwhelmed with the new hardware and software tools on the market (PC manager can provide guidance)
• Technology purchases must contribute to overall company goals (PC manager can help ensure technology is used to support goals)
  

- Data security and integrity

• Access to corporate data is a touchy issue (people are protective of "their" data
• Users may want to download data from the mainframe and use it on their computers (-Are they entitled to the data? - Will they manipulate it and distribute it? - Will they manipulate it and upload it back to the mainframe?

- Computer junkies

• People who are overly fascinated with computers (-May copy software illegally - May hack into company computers to which they do not have access - May overuse the computer and neglect their other duties

Acquisition Policies
Designed to ensure that all hardware and software are compatible

• Establish standards for hardware and software
• Restrict the vendors used
• Set standards for data communication
  

Information Center

• A place where workers can get help with software problems (Sometimes called a support center or help desk - Users can get immediate help, with little or no red tape
• Provides a variety of services
  

Information Center Services

• Software and hardware selection
• Data access
• Network access
• Training
• Technical assistance
  

Training

• Users must receive training for new technology (spending money on technology without training the users is a recipe for disaster)
• Should take several forms (-Initial Training, typically hands-on, instructor-led training in a classroom. -Follow-up support, develop home-grown experts ("gurus"), workers can consult these gurus when they have a problem
• Training delivery methods
  

Delivery Methods

• Text-based - give the users a user guide, with some exercises
• Instructor-led - classroom-based, hands-on training
• Computer-based (websites offer training on many packages - CD-ROMs offer multimedia, tutorials, frequently-ask questions, etc)

Inventory Personal Computers
Many things need to be tracked
- How many computers the organization has
- How many printers there are
- What software is on each computer (software must be properly licensed - Unauthorized software should not be on computers)
- How many remote users there are (Laptops are particularly vulnerable to theft - There must be adequate security when accessing corporate data)

Total Cost of Ownership (TCO)

• Determines the total cost of owning the computer over time (The original hardware and software costs are a small portion of the cost of ownership)
• The real costs are hard to determine (some experts estimate the annual cost of ownership is four times the original cost of the hardware
  

TCO Components
Many costs contribute to TCO
- Original hardware and software costs
- Training costs
- Information center and other support costs
- Upgrades to hardware and software
- Maintenance
- Extra hardware and software beyond the standard configuration
- The costs of communications networks

MANAGEMENT INFORMATION SYSTEMS: CLASSIC MODELS AND NEW APPROACHES

Classical Management Functions

• Planning -devising plans for the organization and setting goals to achieve the plan.
• Organizing - deciding how to use the organization's resources
• Staffing - hiring and training workers
• Directing - guiding employees to perform their work in a way that support to organization's goals
• Controlling - monitoring the organization's progress toward reaching its goals

Strategic Level

• Managers at this level are often called executives
• Focus - long-range view of the firm
• Primary function - planning

Tactical level

• Managers at this level are often called middle managers
• Focus - carrying out the visions of top-level managers
• Primary functions - organizing and staffing

Operational Level

• Managers at this level are often called supervisors
• Focus - meeting that day's objectives
• Primary functions - directing and controlling

Management Information System

• A set of formal business system designed to provide information for an organization

1. - Integrates the five management functions

• MIS manager runs the MIS department

1. - Also called Chief Information Officer
2. - Must be comfortable with computer technology and the organization's business

The New Management Model

• The traditional model has changed over the years

1. - Largely due to advances in technology
2. - Also due to changes in the global business environment

• Features of the new model

1. - A flattened pyramid
2. - The impact of groupwave
3. - Team work

A Flattened Pyramid

• Networks connect people to data and other people

1. - Make information more readily available
2. - Allow managers to supervise more people
3. - Allow decision-making authority to be spread throughout the organization

The Impact of Groupware

• Groupware permits information to be assembled in central database

1. - Employees in the different department or different offices can share information directly

• Impact managers in different ways

The Impact on Managers

• The way information is shared

1. - People acquire power in an organization by knowing things others do not
2. - Groupware reduces this imbalance
   

• Changes in managerial authority

1. - with information more readily available, decisions are more prone to being second guessed

Management Information Systems: Classical Models and New Approaches

Objectives

• List and describe the classic functions of managers: planning, organizing, staffing, directing, and controlling
• Describe the purpose and components of a management information system (MIS)
• Explain how computer networking and related software have flattened the classic management pyramid
• Describe how companies use employees in task-oriented teams
• Describe the purpose and function of sophisticated software for top managers
• Explain the problems and solutions related to managing personal computers
• Explain the concept of total cost of personal computer ownership

Summary

• All managers have five main functions: planning, organizing, staffing, directing, and controlling. A management pyramid shows that top-level managers focus primarily on strategic functions, especially long-range planning; middle-level managers focus on the tactical, especially the organizing and staffing required to implement plans; and low-level managers are concerned mainly with operational functions—controlling schedules, costs, and quality—as well as with directing personnel.
• A management information system (MIS) is a set of business systems designed to provide information for decision making. A computerized MIS is most effective if it is integrated throughout the entire organization.
• The MIS manager, a person who is familiar with both computer technology and the organization’s business, runs the MIS department.
• The traditional management pyramid has been flattened by the dissemination and sharing of information over computer networks. The impact of groupware has removed exclusive manager access to information and has forced managers to share decision-making. Some companies are organizing workers into teams around tasks.
• A decision support system (DSS) is a computer system that supports managers in nonroutine decision-making tasks. A DSS involves a model, a mathematical representation of a real-life situation. A computerized model allows a manager to try various "what-if" options by varying the inputs, or independent variables, to see how they affect the outputs, or dependent variables. The use of a computer model to reach a decision about a real-life situation is called simulation. Since the decision-making process must be fast, the DSS is interactive, allowing the user to communicate directly with the computer system and affect its activities.
• An executive information system (EIS) is a decision support system for senior-level executives, who make decisions that affect an entire company.
• When personal computers first became popular in the business world, most businesses did not have general policies regarding them, which led to several problems. Many businesses created the position of personal computer manager (later called the network manager or LAN manager) to ensure coordination of personal computers, established acquisition policies to solve the compatibility problem, established information centers or support centers to provide assistance to users, provided formal and informal training for users, and used software to monitor their existing personal computers.
• Many organizations rely on the one-shot, teacher-in-the-classroom model for training, if they offer training at all. Follow-up support is necessary, and can be provided through in house gurus or information centers. CD-ROM and Web-based training have also proved to be effective, both for initial and follow up training.
• Managers often have little idea of how many computers are in use within a department or company or what software is being used on them. Software is available to keep track of all hardware and software installed on company networks.
• Total Cost of Ownership (TCO) refers to a methodology originally developed by the Gartner Group to determine all the costs involved in owning personal computers. These costs involve not only the original purchase price of the hardware and software, but also less obvious costs such as training, support, upgrades, and maintenance.

Key Terms

controlling - decision support system (DSS) - dependent variables - directing - executive - information system (EIS) - independent variables - information centers or support centers - management information system (MIS) - MIS manager - model - organizing - personal computer manager or network manager or LAN manager - planning - simulation - staffing - Total Cost of Ownership (TCO)