pproaches to Operational Management

Henri Fayol's Principles:

1. Division of Work: Specialization increases efficiency.

2. Authority and Responsibility: Managers must have the authority to give orders and the
responsibility to ensure tasks are completed.
3. Discipline: Adherence to rules and procedures is essential.
4. Order: Ensuring everything is in its proper place.
5. Equity: Fair treatment of employees.
6. Stability of Tenure: Reducing turnover to maintain organizational stability.

MIS Support:

 Division of Work: MIS can analyze workload data and help in distributing tasks
efficiently.
 Authority and Responsibility: MIS provides tools for tracking accountability.
 Discipline: MIS helps monitor adherence to policies.
 Order: MIS ensures resources are available and properly allocated.
 Equity: MIS can analyze data to ensure fair treatment.
 Stability of Tenure: MIS can track employee satisfaction and turnover rates.

Functions of the Manager

Managerial Functions:

1. Planning: Determining goals and strategies.

2. Organizing: Structuring roles and responsibilities.
3. Staffing: Filling positions with the right people.
4. Directing: Guiding and solving problems.
5. Coordinating: Harmonizing efforts towards goals.
6. Controlling: Measuring performance and taking corrective actions.

MIS Support:

 Planning: MIS offers data for forecasting and setting realistic goals.
 Organizing: MIS helps design organizational structures based on data-driven insights.
 Staffing: MIS aids in recruitment and performance tracking.
 Directing: MIS provides communication and problem-solving tools.
 Coordinating: MIS facilitates coordination through shared information and collaboration
platforms.
 Controlling: MIS tracks performance metrics and provides reports for decision-making.

Managers and the Environment

Environmental Factors:
 1. Economic: Includes capital, labor, prices, and policies.
2. Technological: Advances in technology affecting business operations.
3. Social: Societal attitudes, expectations, and cultural factors.
4. Political: Political stability and regulations impacting business.
5. Ethical: Business ethics and compliance with laws.

MIS Influence: MIS helps managers navigate these environmental factors by providing data and
insights for better decision-making. For example, an MIS can track economic indicators,
technological trends, and social changes, allowing managers to adjust strategies accordingly.

Real-Life Examples

1. System Theory in Management:

o Example: A manufacturing company uses an MIS to monitor production
processes. When a drop in efficiency is detected, the system alerts managers, who
then investigate and resolve issues, ensuring continuous productivity.
2. Approaches to Operational Management:
o Example: A retail chain utilizes an MIS to track sales performance and inventory
levels across multiple stores. This data helps managers allocate resources
effectively, maintaining order and discipline in operations.
3. Functions of the Manager:
o Example: A tech startup uses an MIS for project management. It helps in
planning by setting milestones, organizing tasks among team members, staffing
by tracking employee performance, and controlling by measuring project progress
against goals.
4. Managers and the Environment:
o Example: A financial services firm leverages an MIS to monitor economic trends
and adjust investment strategies. The system provides real-time data on market
conditions, helping managers make informed decisions in a volatile environment.

In conclusion, MIS plays a crucial role in supporting management by providing the necessary
information and tools to execute their functions effectively. It helps managers navigate complex
environments, make informed decisions, and achieve organizational goals efficiently.