Professional Documents
Culture Documents
Management Information System Unit1 Part2
Management Information System Unit1 Part2
CEO
Chief Accountant
Budget Analyst
Plant Superintendent
Maintenance Superintendent
Training Specialist
Benefits Administrator
GROUPS SERVED
SENIOR MANAGERS
MANAGEMENT LEVEL
MIDDLE MANAGERS
KNOWLEDGE LEVEL
OPERATIONAL LEVEL
SALES & MARKETING MANUFACTURING FINANCE ACCOUNTING
OPERATIONAL MANAGERS
HUMAN RESOURCES
MIS-Definition
MIS (Management Information Systems) is a general term for the computer systems in an enterprise that provide information about its business operations. It's also used to refer to the people who manage these systems. Typically, in a large corporation, "MIS" or the "MIS department" refers to a central or centrally-coordinated system of computer expertise and management, often including mainframe systems The study of effective systems for the development and use of information in an organization. 6
MIS-Definition
MIS is a formalised computer information system which can integrate data from various sources to provide the information necessary for decision-making at the management level. An organized assembly of resources and procedures required to collect, process, and distribute data for use in decision-making.
MIS-Definition
MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In order to provide past, present and prediction information, an MIS can include software that helps in decision-making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently
8
Decision Support
Role Of MIS
MIS plays very vital role in the management, administration and operation of the organization. The system ensures that an appropriate data is collected from various sources, processed and sent further to all the needy destinations. fulfill the information needs of an individual and top management
10
Role Of MIS
Basic roles of MIS can be outlines as below : Hardware administration Software development, and support End user support Computing standards DB administration Corporate data access
11
Role Of MIS
At every phase of the management process, managers constantly need information in order to make effective decisions. It does not include purely functional information or technical information. Management information is the information required by managers as they make their decisions, such as the
number of staff required to be employed by each department, their training requirements, career development plans, job descriptions, budgets, overall forecasts, benchmark surveys, and progress reports on socio economic conditions.
12
Impact of MIS
MIS creates, an impact on the organizations function, performance and productivity. With MIS support management of all departments of an organization can become more effective.
16
Impact of MIS
Impact on Management Targets tracking and monitoring becomes easy. Top level managers can be informed accordingly. Probable trends in various aspects of business can be traced. This helps in log-term planning and forecasting. Exception conditions can be brought to the noticed, so that manages can take decision in that matter. Information reporting system helps entire organization.
17
Impact on Understanding of Business MIS brings clarity in the communication, due to common understanding of terms and terminology. Brings high degree of professionalism in the business operations. Impact on Managerial Efficiency Helps him to use different tools and techniques, which are impossible to use manually. Decision-making ability is improved.
18
WHAT IS MANAGEMENT
Management : Mary Follett defined management as the art of getting things done through people. Manager : Person who achieves the organization goals by motivating others to perform, not doing himself. Management (For MIS) : Defined as a process of planning, organizing, staffing, coordinating and controlling the efforts of the members of the organization to achieve command stated goals of the organization.
19
APPROACHES TO MANAGEMENT
There are various approach to management process, few to them are explained below : 1. Scientific management theory by Fredrick Taylor. 2. Administrative theory by Henry Fayol. 3. Human Relation Theory by Elten Mayo and Henery Gantt. 4.Motion Study by Frank Gilbreth.
20
4. Divide work and responsibility between the management and workers so that the management is responsible for planning work method using scientific principles and workers are responsible for executing the work accordingly.
22
23
Management Activities
25
Principles
1. Division of Work : Division of work or work specialization results in efficient use of resources and increases productivity. This is applicable to both managerial and technical functions. 2. Authority and Responsibility : Authority means right to give order or command. Responsibility is the obligation to achieve objectives. Responsibility comes with authority. Authority and responsibility pinpoints the accountability of work. 3. Discipline : Discipline is absolutely necessary for the smooth running of the organization. Discipline means following rules, regulations, policies and procedures by all employees of organization. There must be clear and fair agreement for observing rules and regulations also punishment for disobedience and in discipline.
27
Principles
4. Unity of Command : An employee should receive orders from one supervisor only to avoid possible confusion and conflict i.e. any worker should not be under control of more than one supervisors. It avoids mistakes and delays in getting work done. 5. Unity of Direction : All the activities must be aimed at one common objective. The activities should be organized such that there should be one plan and one person in charge. This enables directions of efforts towards attainment of one goal. 6. Subordination of Individual Interest to General Interest : The interests of one employee or group should not be given importance over the interests and goals of organization. 7. Remuneration : Compensation and the methods of compensation should be fair to both the employee and the employer. Exploitation of employees of any kind must be avoided.
28
Principles
8. Centralization : The centralization of authority and power to some extent is necessary where it is most feasible otherwise there should be decentralization of authority and power for smooth functioning of the organization. A balance between both must be achieved. The objective is the optimum use of the capabilities of personnel. 9. Scaler Chain : A scaler (hierarchical) chain of authority extends from the highest to lowest rank of an organization and defines the communication path. However, horizontal communication is also encouraged as long as the managers in the chain are kept informed. 10. Order : Order is principle of arrangement of things and people. Everything should occupy its proper place i.e. everything should be in order. Due to good organization and selection the right person should be in the right place. Order leads to the creation of sound organization with efficient management. Good organization removes confusion.
29
Principles
11. Equity : Employees are human beings. Employee's loyalty and devotion should be treated with kindness and justice. Organization's run best when managers are fair with their employees. 12. Stability of Personnel Tenure : Stability of tenure of personnel in the organization increases the efficiency of the employees and is a symbol of sound management. Because time is required to become effective in new jobs, high turnover of employees should be prevented. Instability (high turnover) is a symbol of weak management. 13. Initiative : Managers should encourage and develop the subordinates to take initiative. It is the result of creative thinking and imagination and helps in formulating, planning also its execution. 14. Esprit de corps : Esprit de corps means spirit of co-operation. Since union is strength, harmony and team work are essential. These are prerequisites for better 30 performance and effective organization.
FUNCTIONS OF MANAGER
A manager is someone who works with and through other people by coordinating, their work activities in order to accomplish organizational goals
31
FUNCTIONS OF MANAGER
Planning, Organizing, Staffing, Directing, Co-ordinating and Controlling.
32
Planning
Planning is nothing but the process of determining the goals and objectives and strategies for achieving goals of the organization. According to Lorange, when doing planning managers need to : 1) Write or review the organizations mission, 2) Identify and analyze opportunities, 3) Establish goals, 4) Select a course of action to achieve these goals, 5) Determine resources needed.
33
Organizing
deciding what work needs to be done, assigning the tasks, and arranging them into a decision-making framework. Organization involves evolving the structure of the people working in the organization and their roles. Organizing is the process by which the structure and allocation of jobs is determined. Organizing involves determining activities required to achieve the established company objectives, grouping these activities in a logical basis for handling by persons, managers and, finally assigning persons to the job designed. 34
Staffing
The primary purposes of staffing are to find, hire, train, develop, reward and retain the required amount of good people, helping them meet their needs while they help the company meet its goal. This statement addresses several important aspects of staffing including recruiting, training and retaining employees that will benefit the company.
35
Controlling
Controlling is the management function, in which managers set and communicate performance standards for people, processes, and devices. The four steps of the control process are : 1) Establishing performance standards, 2) Measuring performance, 3) Comparing measured performance to established standards, 4) Taking corrective action..
36
Directing
Directing is influencing peoples behavior through motivation, communication, group dynamics, leadership and disciples. The purpose of directing is to channel the behaviors of all personnel to accomplish the organizations mission and objectives while simultaneously helping them accomplish their own career objectives. This in complex task of implementing the 37 process of management.
Co-ordinating
This function brings a harmony and smoothness in the various group activities and individual efforts directed towards goals. It needs synchronizing individual efforts and actions which may differ. This is normally carried out by the authority of top level management. Co-ordinating includes communicating with others, providing directions and motivating people.
38
Organization
Co-ordinating
39
40
42
43
The organization structure is built on four basic principles : - Hierarchy of authority - Specialization - Standardization (or formulation) - Centralization
44
Hierarchy of Authority
Hierarchical structure of positions. Each position has authority or right to command associated with it. control over resources, rewards, and the task and authority to make decisions regarding those things. As a rule, authority is distributed according to the level in the hierarchy. Higher the level of position, greater the authority. Span Of Control 45
Specialization
It is division of labor in the organization. Normally the organization is divided into their functional lines like marketing, production accounting, finance etc., which encourages specialization within each function. Organization may be more or less specialized depending upon the services they provide . E.g. R&D rather than production
46
Formalization
The degree of formalization is the extend to which rules and procedures exist to handle organizational activities. Some times decision rules are stated in advance. This is to make a person in an organization independent. People shall work on the basis of rules, procedures guidelines and policies.
47
Centralization
Centralization refers to the level in the organization where decision-making takes place. Organization where it is highly centralized, most of the decisions making is done at the top of the hierarchy. More the authority of decision-making to lower level, greater is the decentralization.
48
49
1. Environment
An organization is an open system. The environment includes all conditions, circumstances and influences surrounding and affecting the working of organization. For a business organization, social, economic, legal, political cultural and technological environments are important.
50
2. Technology
Type of technology the organization adopts, affects the organizational structure. The nature of workflow, diversion of activities, amount of program specifications, number of levels, span of management all influence organization.
51
3. Size of Organization
Size is measured in terms of number of employees, scale operations, size of investment etc. It is found that a tendency of larger organizations is to be more decentralized, more specialized, more standardized and formalized as compared to small organizations
52
4. People
To arrive at the appropriate organization structure the forces people must be analyzed. Managers, skills, personality, values philosophy largely influence organization structure. Degree of autonomy and freedom for subordinates has impact organizational behaviour.
53
ORGANIZATION BEHAVIOUR
Actual performance of an organization is sometimes different from the goals and objectives. These are some factors, which are beyond the control of the management, which affects the performance of the organization. The performance in affected due to organization behavior, which is the result of following factors :
Organizational Culture Organizational Power Organizational Change Organizational Learning Organizational Motivation
54