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MIS
The class notes (ch1-7) for this course usesthe following references:
Laudon, Kenneth C. & Laudon, Jane P. (2007). Management Information Systems, 10/e. Prentice-Hall, NewJersey. ISBN: 0-13-230461-9 www.prenhall.com/laudonLaudon, Kenneth C. & Laudon, Jane P. (2004). Management Information Systems, 8/e. Prentice-Hall, NewJersey.Kroenke, David M. (2007). Using MIS. Prentice-Hall, New Jersey.Obrien, James A. (2004). Management Information Systems, 6/e. McGraw-Hill, New York.Kroenke, David & Hatch, Richard (1994). Management Information Systems, 3/e. McGraw-Hill, New York.Haag, Stephen, & Cummings, Maeve & Dawkins, James (1997). Management Information Systems for theInformation Age. McGraw-Hill, New York.Capron, H.L. (2000). Computers Tools for an Information Age, 6/e. Prentice-Hill, New Jersey.Coles, Sue & Jenny Rowley (2000). Access 2000 - An Advanced Course for Students. Learning Matters Ltd.
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Chapter 1Introduction to Management
Information SystemsClassic Models and New Approaches
Management Information Systems
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Example
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THREE MANAGEMENT THEORIES
TECHNICAL - RATIONAL Classical EMPHASIZES PRECISION OF TASK
ORGANIZES TASKS INTO JOBS
ORGANIZES JOBS INTO PRODUCTION SYSTEMS
BEHAVIORAL EMPHASIZES ORGANIZATIONS ADAPTATION TO EXTERNAL,
INTERNAL ENVIRONMENT
COGNITIVE
EMPHASIZES LEARNING & APPLYING KNOW-HOW, KNOWLEDGE
HOW WELL MANAGERS PROVIDE MEANING TO NEWSITUATIONS
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Classic Management Functions
Historically, managers have had these mainfunctions:
Planning
Organizing
Staffing
Directing
Controlling
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Planning
Managers deviseboth short-rangeand long-rangeplans for theorganization andset goals toachieve thoseplans.
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Organizing
Managers mustdecide how to useresources, such as
people and materials.
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Staffing
Managers musthire and trainworkers.
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Directing
Managers guideemployees toperform their workin a way thatsupports theorganizationsgoals.
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Controlling
Managers monitorthe organizationsprogress towardreaching its goals.
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Classic Management Pyramid
TopTop--levellevel
managersmanagers
MiddleMiddle--levellevel
managersmanagers
LowLow--levellevel
managersmanagers
StrategicStrategic
TacticalTactical
OperationalOperational
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Strategic Level Management
This level ofmanagementfocuses on theplanning functionsof the organization
the long-range goals
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Tactical Level Management
At this level,management focuses onorganizing and staffingto carry out the plans &goals/visions of top-levelmanagers
the acquisition & efficient
utilization of resources in the
accomplishment of organizational
goals
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Operational Level Management
The focus of this levelof management is ondirecting and
controlling workers toperform the plannedactivities
the efficient & effectiveexecution of specific tasks.
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EVOLUTION OF MANAGEMENT THEORY
CLASSICAL
planning, organizing, staffing, directing,controlling
CONTEMPORARY
emphasized individual collective behavior
POSTMODERN
emphasizes knowledge basis oforganizations
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Management Information Systems(MIS)
Each level ofmanagement hasdifferent informationneeds & ISrequirements.
MIS is a set of formalbusiness systemsdesigned to provide
information fordecision making.
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MIS Manager
The MIS manager runs the MISdepartment.
The MIS manager must be comfortablewith both computer technology and theorganizations business.
Why manage IS?Overall costs of IS are growing and should be spent
wisely
Well-managed IS cut cost in other areas of the firm andincrease productivity
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New Management Model
Many industries are finding that they cando without middle managers.
For these businesses, communication thatwas once carried out by middle managershas been replaced by computer networks.
The result has been a flattenedmanagement pyramid.
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Flattened Management Pyramid
TopTop--levellevel
managersmanagers
Low andLow and
MiddleMiddle--levellevel
managersmanagers
WorkersWorkers
StrategicStrategic
TacticalTactical
OperationalOperational
Traditional Management
CEO
VPFinance
VPMarketing
VPAccounting
VPHRM
VPMIS
Layers of middle managers
Customers
Commands
Analyze data
Condensed reports
Collect
data
DecentralizationManagement TeamCEO
FinanceTeam
MarketingTeam
AccountingTeam
HRMTeam
SalesTeam
Franchise
Strategy
Methodology/Rules
Customers
Corporate
Database
&
Network
VPFin
VPMrkt
VPAcct
VPHRM
VPMIS
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Networked Organizations
Today some organizations are turning away
from the hierarchical organization toward thenetworked organizationnetworked organization(organizational structuresthat resemble computer networks and are supported byinformation systems)
In the information-basedeconomy, most peopledo knowledge work, and the subordinate oftenhas more expertise than the hierarchicalsupervisor.
A flattened organizationhas fewer layers ofmanagement and a broader span of control thanthe hierarchical organization.
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Networked Organizations
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Ynetim felsefesi (komik)
Trk ve Japonirketleri arasnda bir krek yardzenlenmi.ki taraf da yara ok iyi hazrlanyor.Japonlar yar bir kilometre farkla kazanyor.Trkirketi, yar sonrasnda durumu inceliyor, yenidenyaplanmaya gidiyor.Japon takmnda 1 dmenci, 8 kreki var.Trk takmnda ise 1 kii krek ekiyor, 8 kii dmenikullanyor.Trk takm yenidenyle yaplanyor:"4 dmen mdr, 3 mdr yardmcs, 1 dmen yneticisive bir kreki". kinci yar Japonlar iki kilometre araylakazanyor.Trkirketi bunun zerine geni apl bir soruturmabalatyor. Kreki kovuluyor. Mdr yardmclar vemdrlere tevik primi verilirken, yeni bir kreki araynabalanyor.
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Impact of Groupware
The introduction of groupware (informationcollected in databases) has contributed tothe flattening of the management pyramid.
Fewer lower- and middle-managers areneeded in an organization that isinformation-driven and supports team-based projects.
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Impact of Teamwork
Networks and groupware help to organizeemployees into task-focused teams.
Small-sized teams of highly skilledworkers need fewer managers to dispenseideas and make decisions.
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Top Managers and Computers
Top managers needsophisticated software to helpthem make decisions.
Methodology vs Ad Hoc Decisions
Decision Process
Collect Data
Identify Problems & Opportunities
Make Choices
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Decision SupportSystem (DSS)
A DSS is a computer system that supportsmanagers in nonroutine decision-makingtasks and supplements an MIS.
A DSS uses an interactive computermodel to simulate a real-life situation.
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Executive SupportSystem (ESS)
An ESS is a decision support systemespecially made for senior-levelexecutives.
Unlike a DSS, this system must take intoconsideration how decisions will affect the
entire organization over a period of time.
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Managing Personal ComputersAcquiring and managing the personal computers in an organization
requires:
A personal computer manager : attends to technology overloaddata security and integritycomputer junkies (respond to workers using computers for work not related to their job-
especially internet users)
Acquisition policies : should look for compatibility with current hw&sw
An information center : provides following to employees:Software selection (help them select packages to meet their needs)Data access (help them get data from corparate compter systems)
Network access (passwork, security)
TrainingTechnical assistance (advice on hw/sw adoptions & problem-solving)
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Increasing Productivity
To increase productivity, managers mustprovide:
Trainingtraining is now necessary for every aspect of a companysorganization. However, follow-up support is important if the newly
trained personnel are to retain the new skill
Worker involvementrather than simply installing new technology and training
workers, management should involve the people who willbe working with the technology.
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Computer Auditing
Accurately tracking information onhardware and software resources isneeded to support budgeting for futureneeds
Special software can count networked
computer users and related equipment.
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Remote User Issues
Here, MIS managers are concerned with:
Security of company data
Adequate training
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Total Cost of Ownership (TCO)
MIS managers are aware of TCO, which includes:
TCOofaP
Cisappro
x=4xcos
tofthehw
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INFORMATION SYSTEMSDEPARTMENT
PROGRAMMERS: Write software
SYSTEMS ANALYSTS: Translatebusiness problems into solutions
IS MANAGERS: Department leaders
END USERS: Department representativesfor whom applications are developed
Hardware
Software
Software
Hardware
1990s
1960s1970s
The Increasing Importance of
Software to Organizations
Shift in technology costs
Declining hardware costs
Increasing complexity of softwarewith increased costs
Increasing salaries of programmers
Software aids in re-engineeringof the organization
Software helps standardizebusiness procedures
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Importance of MIS
I S b u d g e t a s p e r c e n t o f re v e n u e
0
1
2
3
4
5
6
Aerospace
Consumer
Financial
Industrial
Manuf.
Petroleum
Pharm.
Sales
Trans.
Utilities
%
Computerworld 1993*
Everyone Uses Computers
P e r c e n t o f e m p l o y e e s w i th P C / te r m i n a l
0
1 02 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
1 0 0
Aerospace
Consumer
Financial
Industrial
Manuf.
Petroleum
Pharm.
Sales
Trans.
Utilities
Computerworld 1993*
US Employment PatternsUS Employment Patterns
0
20
40
60
80
100
120
140
160
1920 1930 1940 1950 1960 1970 1980 1990 2000
millionsofworkers
Service
Management
Manufacturing
Farm
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DEVELOPMENT OFINFORMATION ARCHITECTURE
1950s: ELECTRONIC ACCOUNTING MACHINES
1960s: DATA PROCESSING DEPARTMENTS
1970s: INFORMATION SYSTEMS
1980s: INFORMATION SYSTEMS & SERVICES
1990s: ENTERPRISE-WIDE INFORMATIONUTILITY
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