Management information system resources

INFORMATION SYSTEM RESOURCES

(i)      PEOPLE RESOURCES

                   People are required for the operation of all information systems. These people resources include end users and IS specialists.

·                    End users (also called users or clients) are people who use an information system or the information it produces. They can be accountants, salespersons, engineers, clerks, customers, or managers. Most of us are information system end users.

·                    IS Specialists are people who develop and operate information systems. They include systems analysts, programmers, computer operators, and other managerial technical, and clerical IS personnel. Briefly, systems analysts design information systems based on the information requirements of end uses, programmers prepare computer programs based on the specifications of systems analysts, and computer operators operate large computer systems.

(ii)     HARDWARE RESOURCES

          The concept of Hardware resources includes all physical devices and materials used in information processing. Specially, it includes not only machines, such as computers and other equipment, but also all data media, that is, all tangible objects on which data is recorded, from sheets of paper to magnetic disks. Example of hardware in computer-based information systems are:

·                    Computer systems, which consist of central processing units containing microprocessors, and variety of interconnected peripheral devices. Examples are microcomputer systems, midrange computer systems, and large mainframe computer systems.

·                    Computer peripherals, which are devices such as a keyboard or electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources.

(iii)    SOFTWARE RESOURCES

                   The concept of Software Resources includes all sets of information processing instructions. This generic concept of software includes not only the sets of operating instructions called programs, which direct and control computer hardware, but also the sets of information processing instructions needed by people, called procedures.

                   It is important to understand that even information systems that don’t use computers have a software resource component. This is true even for the information systems of ancient times, or the manual and machine-supported information systems still used in the world today. They all require software resources in the form of information processing instructions and procedures in order to properly capture, process, and disseminate information to their users.

                   The following are the examples of software resources:

·                    System Software, such as an operating system program, which con controls and supports the operations of a computer system.

·                    Application Software, which are programs that direct processing for a particular use of computers by end users. Examples are a sales analysis program, a payroll program, and a work processing program.

·                    Procedures, which are operating instructions for the people who will use an information system. Examples are instructions for filling out a paper form or using a software package.

(iv)    DATA RESOURCES

          Data is more than the raw material of information systems. The concept of data resources has been broadened by managers and information systems professionals. They realize that data constitutes a valuable organization resource. Thus, you should view data as data resources that must be managed effectively to benefit all end users in an organization.

                   Data can take many forms, including traditional alphanumeric data, composed of numbers and alphabetical and other characters that describe business transactions and other events and entities. Text data, consisting of sentences and paragraphs used in written communications; image data, such as graphic shapes and figures; and audio data, the human voice and other sounds, are also important forms of data.

                   The data resources of information systems are typically organized into:

·                    Database that hold processed and organized data.

·                    Knowledge bases that hold knowledge in variety of forms such as facts, rules, and case examples about successful business practices.

For example, data about sales transactions may be accumulated and stored in a sales database for subsequent processing that yields daily, weekly, and monthly sales analysis reports for management. Knowledge bases are used by knowledge management systems and expert systems to share knowledge and give expert advice on specific subjects.

Management Information System Concepts

SYSTEM CONCEPTS

         

         A system is a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. Such a system (sometimes called a dynamic system) has three basic interacting components or functions:

·                    Input involves capturing and assembling elements that enter the system to be processed. For example, raw materials, energy, data, and human efforts must be secured and organized for processing.

·                    Processing involves transformation process that convert input into output. Examples are a manufacturing process, the human breathing process, or mathematical calculations.

·                    Output involves transferring elements that have been produced by a transformation process to their ultimate destination. For example, finished products, human services, and management information must be transmitted to their human users.

Example

          A manufacturing system accepts raw materials as input and produces finished goods as output. An information system also is a system that accepts resources (data) as input and process them into products (information) as output.

FEEDBACK AND CONTROL

          A system with feedback and control components is sometimes called a cybernetic system, that is, a self-monitoring, self-regulating system.

·                    Feedback is data about the performance of a system. For example, data about sales performance is feedback to a sales manager.

·                    Control involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal. The control function then makes necessary adjustments to a system’s input and processing components to ensure that it produces proper output. For example, a sales manager exercises control when he or she reassigns salespersons to new sales territories after evaluating feedback about their sales performance.

Feedback is frequently included as part of the concept of the control function because it is such a necessary part of its operation.

Example

          A familiar example of a self-monitoring, self-regulating system is the thermostat controlled heating system found in many homes; it automatically monitors and regulates itself to maintain a desired temperature. Another example is the human body, which can be regarded as cybernetic system that automatically monitors and adjusts many of its functions, such as temperature, heartbeat, and breathing.

OTHER SYSTEM CHARACTERISTICS

          A system does not exist in a vacuum; rather, it exists and functions in and environment containing other systems. If a system is one of the components of a larger system, it is a subsystem, and the larger system in environment. Also, its environment. Also, its system boundary separates a system from its environment and other systems.

Example

          Organizations such as businesses and government agencies are good examples of the systems in society, which is their environment. Society contains a multitude of such systems, including individuals and their social, political, and economic institutions. Organizations themselves consist of many subsystems, such as departments, divisions, process teams, and other workgroups. Organizations are examples of open systems because they interface and interact with other systems in their environment. Finally, organizations are examples of adaptive systems, since they can modify themselves to meet the demands of a changing environment.

COMPONENTS OF AN INFORMATION SYSTEM

          An information system is a system that accepts data resources as input and processes them into information products as output.

          An information system depends on the resources of people (end users and IS specialists), hardware (machines and media), software (programs and procedures), data (data and knowledge basis), and networks (communications media and network support) to perform input, processing, output, storage, and control activities that convert data resources into information products.

          This information system model highlights the relationships among the components and activities of information systems. It provides a framework that emphasizes four major concepts that can be applied to all types of information systems:

·                    People, hardware, software, data, and networks are the five basic resources of information systems.

·                    People resources include end users and IS specialists, hardware resources consist of machines and media, software resources include both programs and procedures, data resources can include data and knowledge bases, and network resources include communications media and networks.

·                    Data resources are transformed by information processing activities into a variety of information products for end users.

·                    Information processing consists of input, processing, output, storage, and control activities.

approaches to decision making

	Identify different approaches to decision making.  Quote practical examples to support your answer.
Major approaches	There are two major approaches to decision making which are detailed as under: •     The Classical Model •     The Administrative Model
Classical Model	The classical model of decision making is based on the assumption that managers approach decision making in an objective and rational manner and that they always made decision that are in the best interest of the organization.  According to this model, managers carefully examine every possible alternative and consider the wide range of likely consequences for each choice before selecting the alternative that best fits the organization’s needs.
	In order to do this, managers would need to have complete information about the problem, clearly defined goals, all the information about every possible alternative and consequence, and a logical method of
	weighing each alternative to come to a decision.  However, later researchers pointed out that managers do not actually make their decisions this way.
	Because managers make dozens and some times hundreds of decisions in a day, it is impractical for them to approach every decision in the systematic, logical fashion assumed by the classical model, and they frequently do not have enough information to make a thorough analysis, even if they were so inclined.
	The Classical model is, therefore, prescriptive, presenting an idealized approach to guide managers toward better decision making.  But tools do exist that help managers made more rational decisions.
Adminis-trative Model	The administrative model of decision making is based on the observation that managers do not always approach decision making in a logical, rational way and that they do not always make objective decisions.
	This model was developed by Herbert A Simon in protest that managers can not actually attain the ideal state of completely rational decision making represented by the Classical Model.  To support this model, Simon also described the following two key elements;
	•     real-life decision making bounded rationality - the idea that a manager’s ability to make objective decisions is restricted by time constraints and by cognitive limitations; and
	•     satisficing - Searching for alternatives only until a satisfactory, not an optimal solution is found

Tools of Decision Making

	Discuss the tools to be used for decision making.
	A technique may be defined as a way of doing something. Management techniques are those which help the management in making decisions, evaluating and comparing the results of a management process with the established objectives. Some of the basic tools and techniques used in management are described below:
Budgeting	Budgeting is the formulation of plans, in numerical terms, for a given future period of time. In this technique, we set out numerical estimates (usually amounts) for a particular task or department or activity for a specified future period. The results are then matched with the estimates set out and appropriate measures taken. Budgeting is the most common of all control techniques; many organizations use budgeting techniques for controlling. As an example, consider the financial budgets allocated by the Federal Government for expenditure by various ministries and departments. The budget for each department is further bifurcated for each type of account; for example there are different budget amounts for salaries, allowances, purchase of equipment, repair/maintenance of equipment, purchase of stationery items and supplies etc. Similarly production organizations use budgets for number of units to be manufactured or sold.
Gantt charts	Gantt charts, first developed by Henry L. Gantt, provide a useful means of scheduling events in a time-frame. In this technique, a plan is treated as a series of inter-related supporting plans called events, each event is then represented on the chart as an entity in time frame. A Gantt chart also takes into account whether or not two events can be parallel or simultaneous.
PERT/CPM	Program Evaluation and Review Technique/Critical Path Method.  This control technique was developed in 1958 by the Special Projects Office of the US. Navy. It breaks up a project into controllable pieces called events, and through a time-event network analysis, it determines the minimum time required to complete the project. In this technique, a network diagram is drawn, in which events are represented by numbered circles, or nodes, and the sequence of events and time required for each event are represented by arrows. The PERT/CPM technique, then, seeks to determine the longest path from the first event to the last one, and this path, known as the critical path, gives the time required to complete the project.
Decision Matrix or Payoff Table	A Payoff table is a two-dimensional matrix that allows a decision maker to compare how different future conditions are likely to affect the respective out comes of two or more decision alternatives.  This is also referred to a decision matrix.  Typically, in a payoff table, the decision alternatives are shown as column headings.  The number at the intersection of a row and a column represents the payoff, the amount of decision-maker value associated with a particular decision alternative and future condition.
Decision Trees	A decision tree is a graphic model that displays the structure of a sequence of alternative courses of action and usually shows the payoffs associated with various paths and the probabilities associated with potential future conditions.  The decision tree operates as a graphic alternative to the decision matrix.  However, a major advantage of a decision tree is that it allows decision makers to consider more complex alternatives.
Break-Even Analysis	Break-even analysis is a technique that helps decision makers understand the relationship among sales volume, costs, and revenues in an organization.  Although break-even analysis is often conducted graphically.
Program budgeting	Program budgeting means for providing a systematic method for allocating resources effectively to meet goals. It overcomes the flaws of ordinary budgeting by emphasizing goals and programs that meet them, in the light of available resources.

Three approaches to Management

	Compare, contrast, and comment on any three approaches to management.
	There are various schools of thought of management which represent different approaches to management as put forward by the founders of these schools. Some of the more common of these approaches are described below:
Scientific Manage-ment	The scientific theory of management treats the management process as a science, i.e. as a set of general rules which can be successfully followed by any practicing manager. This theory of management was founded by Frederick W. Taylor in 1911, who is also known as the father scientific management. The steps involved in the process of scientific management are as below;-
	a.         Identify the proposition, or objective. b.         Acquire information about the objective, through observation and other means. c.         Formulate a hypothesis to achieve the objective. d.         Investigate the hypothesis thoroughly by controlled experimentation. e.         Set priorities and organize the data obtained. f.          Formulate a tentative solution to the proposition. g.         Adjust and implement the solution.
	Frederick Taylor published a paper under the title of “Principles of Scientific Management” which summarizes the objectives of his theory, as below:
	a.         The rules of thumb in management should be replaced with scientific (organized) knowledge. b.         In group efforts, harmony should be achieved. c.         Instead of chaotic individualism, management should seek cooperation among workers.
	d.         The management should strive for the maximum, rather than restricted, output. e.         All workers should be developed to the maximum for their own and the company’s prosperity.
	In the scientific approach to management, the emphasis is on maximizing the firm’s productivity. However, many managers strive to maximize labor productivity without sufficiently motivating and rewarding the workers, which is against the essence of scientific management.
	Among the major followers of scientific management are Henry L. Gantt, Frank Gilbreth and Lillian Gilbreth.
Systems Approach	In this approach to management, every entity is regarded as an open system, which has a boundary and also interacts with its external environment. It treats not only physical aspects but also human beings and concepts as systems, and then studies the results of interactions between systems. For example, various departments of an organization (production, marketing, finance etc.) may be treated as systems. Similarly, the concepts of planning, organizing and controlling are also treated as systems. Each system may also be comprised of subsystems which may mutually interact with each other. The advantage of this theory is that it provides a neat and systematic approach to management. However, it cannot be applied to all types of circumstances.
Contin-gency Theory and Situational Approach	In this approach, a manager’s decisions and actions depend upon the particular set of circumstances and the environment, i.e. they will be different in different situations. This theory also realizes that management is both a science and an art, and the best way to perform managerial practice is to apply both science part and the art part. The science part is applied through our theoretical knowledge, whereas the art part is applied through intuition and experience.
	The contingency approach to management is, considered to be the most useful and successful of all management theories.
Compare contrast and comment	The first, i.e. systems approach to management is not very successful because of the reasons that each system is influenced by certain external variables upon which we have no control, e.g. an organization is influenced by laws, regulations, economic position, markets, social and cultural values. In such cases, it becomes difficult to apply systems approach successfully.
	In systems approach, human beings are also regarded as systems (or sub-systems), which interact with other systems. Now human behavior depends upon many factors which are beyond the control of manager, and is highly unpredictable. So any decision made on the basis of human behavior would not be reliable.
	Next we consider the scientific approach to management. This approach is seriously flawed because of the reasons that it does not take into account the psychological needs of human beings. It treats human beings more like machines than humans. Money is definitely not enough of a motivating force always. Humans differ from machines
	in that they also have emotional needs which need to be satisfied to motivate them. For example, self-esteem is an emotional need of human beings. Many people would refuse to work if their self-esteem is not saved, no matter how much they are paid.
	It treats management as a science, whereas the fact is that management is a science and an art. There is no single scientific theory, which can solve all problems in management.
	The contingency, or situational approach to management emphasizes that the managerial decisions and practice depend upon a given set of circumstances, i.e. they will be different for different situations. This theory also realizes that management is both a science and an art, and the best way to perform managerial practice is to apply both science part and the art part. The science part is applied through our theoretical knowledge, whereas the art part is applied through intuition and experience.

Types of plans

	Identify and explain different types of plans.
Different types of Plans	Plan is a detailed action steps mapped out to reach a future target or end result that an organization wishes to achieve.  For these purposes management used different types of plans.  In the following lines these are discussed in detail:
Policy	A policy is a general guide that specifies the broad within which organization members are expected to operate to achieve the objectives.  Policies provide general boundaries for action regarding important constraints.
Procedure	A procedure is a prescribed series of related steps to be taken under certain recurring circumstances.  Procedures provide detailed, step-by-step instructions as to what should be done and do not allow much flexibility or deviation.
Programme	A programme is a comprehensive plan that coordinates a complex set of activities related to a major non-recurring goal.  Programmes involve several different projects, and may take more than one year to complete.  Programmes frequently have their own budget.
Budget	A budget is a statement that outlines the financial resources needed to support the various activities included in the programme.
Project	Project is a plan that coordinates a set of limited scope activities that do not need to be divided into several major projects in order to reach an important non-recurring goal.  Projects often have their own budgets.  A project may be one of several related to a particular programme.
Techno-factor	This is a plan utilizing technical information devices and systems to estimate completion times for planning projects.  A number of such types of plans provide assistance to the managers that no other type of plan supplies in which Programme Evaluation and Review Technique (PERT), PERT-COST and Review Analysis of Multiple Projects (RAMP) are kinds of technofactor.
Rule	Rule is a statement that spells out specific actions to be taken or not to be taken in a given situation.
Method	A method deals with a task comprising one step of a procedure and specifies how this one step is to be performed.  It is made for specific work.

Evaluation of Plans

(a)        How can you evaluate and appreciate a plan of action?

Plan	Plan is the means devised for attempting to reach a future target or end result that an organization wishes to achieve.
Planning	Planning is the primary task of management.  It must occur before all other managerial functions because it determines the nature of those functions.  Planning makes things happen that would not otherwise occur.
Strategy is a Plan or Action orientation	Strategy is a comprehensive plan or action orientation that sets critical direction and guides the allocation of resources for an organization.  It is a focus for action that represents a best guess regarding what must be done to ensure longer-run prosperity for the organization or one of its subsystems.
	In the evaluation the planning process builds on the action of the organization, the organization’s purpose or fundamental reason for existence.  A plan of action to achieve the goals serves several purposes.  For managers, it can be a benchmark against which to evaluate success.  For employees, it will be a common purpose, nurtures organizational loyalty, and fosters a sense of community among workers.  For external
	parties such as investors, governmental agencies, and the public at large, it will help to provide unique insight into the organization’s value and future directions.  In some organizations, a plan is explicitly presented as a formal written document.  In others, it is implicitly understood.
Resources for Plan’s success or failure	Basically, four types of resources are available for a company to call on, and the state of their health and their skillful use by management often determine whether a plan will be successful or will fail.
	Marketing resources - these include an established marketing position, brand recognition, and well developed channels of distribution.
	Operations resources - these include the quality of the physical plant.  How modern and efficient are the factories?  What is the state of its technology?
	Financial Resources - these give a company more flexibility in its options and include a positive cash flow, a strong capital base, and an ability to borrow money.
	Human Resources - these are crucial but often over looked.  They include employees who are well trained, experienced, and highly motivated.
	For successful in a plan for action a manager holds an open mind about both the past and the future.  The thinking that led the company to its need to be dropped in favour of new plans.  Programming for future plans may be necessary because of uncertainties that cannot be foreseen.