MIS

Lecture 8
 Management & Decision Making
• Management

– The organization and coordination of the activities

of a business in order to achieve defined
objectives.
» http://www.businessdictionary.com/definition/
management.html
 Management & Decision Making
• Levels of Management

– Management positions are often broken down

into three levels

• Upper level management (Strategic management)

• Middle management (Tactical management)
• Lower management (Operational management)
 Upper
Level
Management

Middle
Management

Lower
Management
 Management & Decision Making
• Upper-Level Management

– Upper-level managers are primarily responsible for

plotting the company's future moves.

– Strategic planning, determining the objectives, goals and

plans that helps in organization's long-range course.

– example, the president and vice presidents.

 Management & Decision Making
• Middle level Management

– Their job involves tactical planning i.e. determining

the best ways to get the job done and they must
figure out what actions should be taken to get the
goals.

– Middle level management people are responsible for

anything between upper and lower management.
 Management & Decision Making
• Lower level management

– Lower level managers are directly responsible for

planning and controlling the activities of workers
so that higher level targets are met.

– The people directly responsible for managing

those who produce the firm's outputs.
 EIS

Upper
Level
Management DSS

Middle
Management MRS

TPS
Lower
Management
 Management & Decision Making
• Contingency Approach

– There is no best way to manage that is applicable to every

manager, of every organization, in every circumstance, at every
point in time.

– Management action is contingent on the situation involved.

– The major contingency factor must be understood in any

management situation are the external environment, Internal
organization, time & the decision maker (personal factor)
 Management & Decision Making
• Contingency Approach
– External Environment
• Technological, sociological, economic, political,
customers, suppliers, competitors and governments.

– Internal Environment
• Owners, employees, cultures, structure, tangible assets,
job, histories, policies, plans, procedures and so on
 Management & Decision Making
• Contingency Approach
– Time Factors
• Looking into if competitors are getting stronger or weaker,
how much competitors are leaning toward the market or if
the decision today are appropriate may not be appropriate
tomorrow.

– Manager/ Decision maker

• A management style that work for one manager may not
work for another manager, some are people oriented and
some are goal oriented.