IE from a Manager's Perspective: Business Administration, Organization Theory, Principles of Management, Management Information Systems

By

Assoc. Prof. Haluk S. Balkan

Dept. of Industrial Engineering, E.M.U.

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Engineer

a person who uses scientific knowledge to solve practical problems

www.thefreedictionary.com

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Industrial Engineering

the branch of engineering that deals with the creation and management of systems that integrate people and materials and energy in productive ways

www.thefreedictionary.com

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Management Systems Organizations

Management Systems Organizations are systems created by people to create synergy in achieving their common objectives. Organizations are formed to bring together people, technology, and resources in a predictable manner to get productive results that will lead them towards their objectives.

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The main role of management is:

set the organizational goals,direct the tasks, and organize the resources

to reach the organizational goals.

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Vision

A vision is the concise but clear statement of what is foreseen as a successful future for the company or the organization. A vision is an abstract glimpse of the future and it can only be materialized if we set the required bold goals with clear definitions and time frames, which will take us nearer to that envisioned future.

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Sample Vision Statements

As explained in their official web site www.koc.com.tr , in 2002,The vision statement of the Koç Group of Istanbul (www.koc.com.tr, 2002): reshape its business portfolio in order to "be closest to the consumer by manufacturing, marketing and selling consumer products and services". In 2008 they revised their vision as: “To become one of Europe's leading companies through rapid and profitable growth”.

Sabancı Group of Turkey has declared its vision at their official web site www.sabanci.com.tr as: “Poised in a position of strength and leadership in the heart of Turkey, to competently and efficiently utilize the natural resources and values of our region, we will embrace our destiny to become a thriving, respected, and influential player in today's global market, in order to do our part to create a better world for all.” In 2008 they simplified their statement as: “Creating sustainable advantage through differentiation”

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Mission

The contemporary term “mission” is used to denote those bold goals. Mission statement of an organization should be updated with new goals once the previous ones are achieved.

The achievement of the mission goals will depend on the decisions to be taken as to what actions must be performed and the planning of the performance of those actions.

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Mission

Mission Statement of Sabancı group(2008)Managing a competitive strategic portfolio with sustainable growth potential to create value for all of our stockholders.

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Basic Functions of Management

Planning, Decision making, Leading and motivating, Organizing, and Controlling

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Decision makingDecision making is the acts of

making the best choice among possibly infinite amount of alternatives of courses of action that have a reasonable chance of achieving a given objective.

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Classification of decision making situations

Classification is based on the amount and quality of information the decision maker possesses about the environment of the decision making situation:

(1) decision making under certainty;

(2) decision making under risk; and

(3) decision making under uncertainty.

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Leadership

“Leadership is the process of influencing and supporting others to work enthusiastically toward achieving objectives. It is determined partially by traits, which provide the potential for leadership, and also by one’s role behavior. Leader’s roles combine technical, human, and conceptual skills, which leaders apply in different degrees at various organizational levels.”

Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGraw-Hill,1993, p. 239.

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Factors to differentiate a good leader

A high level of personal drive; The desire to lead; Personal integrity Self-confidence; Analytical ability and judgment; Knowledge of the organization.

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Motivation

The psychological feature that arouses an organism to action toward a desired goal; the reason for the action; that which gives purpose and direction to behavior. www.thefreedictionary.com

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The motivational needs of people

Primary (Lower order) needs: First level: Needs for food, air, water and

sleep. Second level: bodily safety, economic security

(no- layoff guarantee, comfortable retirement plan, etc)

Higher Order needs: Achievement motivation Affiliation Motivation Competence motivation Power motivation

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Division of Work

Division of Work concerns the division of the existing work to the workers by the dividing first into levels according to the levels of authority and responsibility, scalar process. Later, the jobs within the same authority level are divided according to the duties of the worker, functional process. When applied together and properly scalar and functional processes insure a perfect organization with no unassigned areas and no overlaps of assignment to assure the organization to integrate its diverse activities.

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Delegation

Delegation is the assignment duties, authority, and responsibility to others. Delegation permits a manager to extend their work capacity beyond the limits of their own limited personal time, energy, and knowledge.

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Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGraw-Hill,1993, p. 232

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Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGraw-Hill,1993, p. 232

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Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”,9th Ed., McGraw-Hill,1993, p. 232

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information system (IS)

An information system (IS) is an arrangement of people, data, processes, and information technology that interact to collect, process, store, and provide as output the information needed to support an organization.

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)

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Information technology (IT)

Information technology is a contemporary term that describes the combination of computer technology (hardware and software) with telecommunications technology (data, image, and voice networks).

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)

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Classification Information Systems

A transaction processing system (TPS) is an information system that captures and processes data about business transactions.

A management information system (MIS) is an information system that provides for management-oriented reporting based on transaction processing and operations of the organization.

A decision support system (DSS) is an information system that either helps to identify decision making opportunities or provides information to help make decisions.

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)

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Classification Information Systems

An expert system is an information system that captures the expertise of workers and then simulates that expertise to the benefit of nonexperts.

A communications and collaboration system is an information system that enables more effective communications between workers, partners, customers, and suppliers to enhance their ability to collaborate.

An office automation system is an information system that supports the wide range of business office activities that provide for improved work flow between workers.

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)

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REFERENCES:

Newstrom, J.W., Keith Davis, “Organizational behavior: Human Behavior at Work”, 9th (int.) Ed., McGraw-Hill,(1993).

Schultheis, Robert and Mary Sumner, “Management Information Systems: The Manager’s View”,4th (int.)Ed., McGraw-Hill (1998).

Whitten,Bentley,Dittman,”System Analysis and Design Methods”, 6th Ed.,Irwin/McGraw-Hill (2004)

www.koc.com.tr www.sabanci.com.tr www.thefreedictionary.com

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Thank you for listening

IE from a Manager's Perspective: Business Administration, Organization Theory, Principles of Management, Management

Information Systems By

Assoc. Prof. Haluk S. Balkan

Dept. of Industrial Engineering, E.M.U.

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