Chapter 9Managers and Their Information Needs

Learning ObjectivesWhen you finish this chapter, you will:See the link between an organizations structure and information flow.Be able to list the main functions and information needs at different managerial levels.Recognize the characteristics of information needed by different managerial levels.Recognize the influence of politics on the design of, and accessibility to, information systems.

Managers and InformationGenerally, managers at different levels of an organizational hierarchy:Make different types of decisionsControl different types of processesTherefore, they have different information needs

Managers and Information

The Traditional Organizational PyramidMany organizations follow pyramid modelCEO at topSmall group of senior managers, one level downLarger number of middle managers, reporting to senior managersMany more lower-level managers who report to middle managers

Clerical and Shop Floor WorkersBottom of organizational pyramidOperational ManagementIn charge of small groups of front-line workers

The Traditional Organizational PyramidTactical ManagementAlso called middle managersMake decisions for subordinates, affecting the near and somewhat more distant futureStrategic ManagementDecisions affect entire or large parts of the organization; what to do decisions

Characteristics of Information at Different Managerial LevelsDifferent management levels have different information needsInformation needed by different managerial and operational levels varies in the time span covered, level of detail, source, and other characteristics over a broad spectrum

Characteristics of Information at Different Managerial LevelsData RangeAmount of data from which information is extractedTime SpanHow long a period the data coversLevel of DetailDegree to which information is specific

Characteristics of Information at Different Managerial LevelsSource: Internal versus ExternalInternal data: collected within the organizationExternal data: collected from outside sourcesMedia, newsletters, government agencies, Internet

Characteristics of Information at Different Managerial LevelsStructured and Unstructured DataStructured data: numbers and facts easily stored and retrievedUnstructured data: drawn from meetings, conversations, documents, presentations, etc.Valuable in managerial decision making

The Web: The Great EqualizerOutside information now easier to getMore free informationInformation available in easy-to-manipulate formatData shoppers allowed to download data they can further process to fit their needsSubscriptions to online message services on highly focused topicsResults of research and reports of trends and forecasts offered for a fee

The Nature of Managerial WorkPlanningPlanning at different levelsLong-term mission and visionStrategic goalsTactical objectivesMost important planning activitiesSchedulingBudgetingResource allocation

The Nature of Managerial Work

The Nature of Managerial Work

The Nature of Managerial WorkControllingManagers control activities by comparing plans to results.

The Nature of Managerial WorkDecision MakingBoth planning and control call for decision makingThe higher the level of management:The less routine the managers activitiesThe more open the optionsThe more decision-making involved

The Nature of Managerial WorkManagement by ExceptionManagers review only exceptions from expected results that are of a certain size or type to save time.

The Nature of Managerial WorkLeadingManagers expected to lead, which requiresHaving a vision and creating confidence in othersInitiating activities to make work efficient and effectiveCreating new techniques to achieve corporate goals Encouraging and inspiring subordinatesPresenting a role model for desired behaviorTaking responsibility for undesired consequencesMotivating employees and delegating authority

Trends in Organizational StructureIT Flattens the OrganizationEliminates several layers of middle managers

Trends in Organizational StructureThe Matrix StructurePeople report to different supervisors, depending on project, product, or location of workMore successful for smaller, entrepreneurial firmsIT supports matrix structureEasier access to cross-functional information

Trends in Organizational Structure

Characteristics of Effective InformationTabular and Graphical RepresentationCertain information better presented graphicallyTrends as linesDistributions as pie chartsPerformance comparisons as bar chartsMany people prefer tabular data for complex problem solving

Characteristics of Effective InformationFigure 9.9 Tabular and graphical presentations: the information in the two presentations is identical, but the trend is detected faster with the line graph.

Characteristics of Effective InformationOn-line Analytical Processing (OLAP)Cube of tables showing relationships among related variablesOperates on specially organized data or on relational database dataEasily answers questions like What products are selling well? or Where are the weakest-performing sales offices?Faster than relational applications

Characteristics of Effective Information

Characteristics of Effective InformationDynamic RepresentationData presented in real timeIncludes moving images representing speed or directionChanging colors represent rate of changeUse expected to grow

Managers and Their Information Systems

Managers and Their Information SystemsTransaction-Processing Systems (TPS)Capture and process raw materials for informationInterfaced with applications to provide up-to-date informationClerical workers use TPS for routine responsibilitiesOperation managers use TPS for ad-hoc reports

Managers and Their Information SystemsDecision Support Systems (DSS) and Expert Systems (ES)DSS and ES support more complex and nonroutine decision-making and problem-solving activitiesUsed by middle managers as well as senior managers

Managers and Their Information SystemsExecutive Information Systems (EIS)Provide timely, concise information about organization to top managersProvide internal as well as external informationEconomic indicesStock and commodity pricesIndustry trends

Managers and Their Information SystemsCustomer Relationship management Systems (CRM)Help collect data about customersAnalyze the data into useful information to help serve customers betterHelp managers find effective and efficient marketing strategiesChallengeAddress the right customer at the right time with the right offer

Information, Politics, and PowerPoliticsDevelopment and control of ISs often involves problematic politicsPowerInformation affords power which can be problematic.Who owns the system?Who pays for developing the system?Who accesses what information?Who has update privileges?The Not-Invented-Here Phenomenon

Ethical and Societal IssuesElectronic Monitoring of EmployeesMonitoring on the Rise73.6% of major U.S. firms reported recording and reviewing employees communications and activities on the job (AMA published survey, April 2001)The Microchips Are WatchingVideo camerasSoftware to count keystrokesArtificial intelligence to monitor cash disbursement and detect fraudMonitoring e-mail and Web access

Ethical and Societal IssuesElectronic Monitoring of EmployeesThe Employers PositionEntitled to know how employees spend timeBelieve monitoring is an objective, nondiscriminatory method to gauge outputThe Employees PositionDeprives them of autonomy and dignityIncreases stress and stress-related illness and injury