July 2011 Master of Computer Application (MCA) Semester 4 MC0076 Management Information Systems 4 Credits

(Book ID: B0901)

Assignment Set 1 (60 Marks)

Answer all Questions Each question carries TEN marks [10 marks]

Q1. What do you understand by Information processes data?

A1.

Data are generally considered to be raw facts that have undefined uses and

application; information is considered to be processed data that influences choices, that is, data that have somehow been formatted, filtered, and summarized; and knowledge is considered to be an understanding derived from information distinctions among data, information, and knowledge may be derived from scientific terminology. The researcher collects data to test hypotheses; thus, data refer to unprocessed and unanalysed numbers. When the data are analysed, scientists talk about the information contained in the data and the knowledge acquired from their analyses. The confusion often extends to the information systems context, and the three terms maybe used interchangeably. Information as the Opposite of Uncertainty A different perspective on information derives from economic theory and defines information as the negative measure of uncertainty; that is, the less information is available, the more uncertainty exists, and conversely, the more information is available, the less uncertainty exists? In microeconomic theory the equilibrium of supply and demand depends on a market known as a perfect market, where all buyers and sellers have complete knowledge about one another and where uncertainty does not exist. Information makes a market perfect by eliminating uncertainties about supply and demand. In macroeconomic theory, firms behave according to how they

read the economic climate. Economic signals that measure and predict the direction of the economy provide information about the economic climate. The firm reduces its uncertainty by decoding these signals. Taking an example of Federal Express in USA, each incoming aircraft has a scheduled arrival time. However, its actual arrival depends on unforeseen conditions. Data about when an aircraft departed from its destination is information in the economic sense because it reduces uncertainty about the aircrafts arrival time, thereby increasing Federal Expresss ability to handle arriving packages. Managers also define information in terms of its reducing uncertainty. Because managers must project the outcomes of alternatives in making decisions, the reduction of uncertainty about the outcomes of various alternatives improves the effectiveness of the decision- making process and the quality of the decision. Information as a Meaningful Signal Information theory, a branch of statistics concerned with measuring the efficiency of communication between people and/or machines, defines information as the inputs and outputs of communication. Electronic, auditory, visual, or other signals that a sender and receiver interpret similarly convey information. For example, in the recruitment scenario about, the resumes and applications for the open positions are information because they are signals sent by the applicants, and interpreted similarly by both. The Managers in their roles as communicators both generate and receive information. They receive reports that organize signals or data in a way that conveys their meaning. Reports of sales trends become information; so do reports about hazardous waste sites. Managers derive meaning from the information they see and hear as part of communication and use it to make decisions. This definition of information requires a manager to interpret a given signal as it was intended. For example, a managers incorrect interpretation of body language in a negotiation would not be considered to be information from this perspective, although we know that managers use both correct and incorrect perceptions as information in decision making and other managerial functions. Again, this view of information suggests the complexity of the concept and the value of a multifaceted definition.

Q.2 Discuss the Components of an Organizational Information System. A.2. Components of an Organizational Information System

[10 marks]

The environment in which organizations operate from the informational perspective in terms proposed by George Huber of the University of Texas, who has studied the organizational design required by an information society. His conclusions provide a framework for determining what is required of an organizational information system. These, according to Huber, are the hallmarks of an information society: 1) Dramatic Increase of Available Knowledge Whether measured in terms of the number of scholarly journals, patents and copyrights, or in terms of the volumes of corporate communications, both the production and the distribution of knowledge have undergone a manifold increase. 2) Growth of Complexity Huber characterizes complexity in terms of numerosity, diversity, and interdependence. A growing world population and the industrial revolution combined to produce numerosity, or a growing number of human organizations. To succeed, people and organizations learned to specialize: they do things differently and organize themselves differently to accomplish specialized tasks. These differences lead to diversity. Two principal factors have led to increased interdependence. The first as been the revolution in the infrastructure of transportation and communication. The second factor is specialization in firms that make narrowly defined products, as opposed to the self-sufficiency of companies producing a complex product down to its minute elements. A companys product is typically a part of a larger system, produced with contributions from a number of interdependent firms (consider a car or a computer). Moreover, interdependence has increased on a global scale. Even the most isolated of countries participates in some way in the international division of labor. Organizations operating in the public sector, while rarely in a competitive situation, are still governed by the demands of society. Pressures on the public sector in democratic societies, along with the pressures conveyed from the private sector, also make the environment in which public organizations operate more complex. 3) Increased Turbulence The pace of events in an information society is set by technologies. The speeds of todays computer and communication technologies have resulted in a dramatic

increase in the number of events occurring within a given time. Consider the volumes and speed of trades in the securities and currency markets. Widespread use of telefacsimile, as another example, has removed the "float"-the lag between sending and receiving-in written communications. Equally important, because of the infrastructure discussed earlier, the number of events that actually influence an organizations activities (effective events) has also grown rapidly. The great amount of change and turbulence pressuring organizations today thus calls for rapid innovation in both product and organizational structure. To thrive, an organization must have information systems able to cope with large volumes of information in a selective fashion. Huber concludes that these factors an increase of available knowledge, growth of complexity, and increased turbulence-are not simply ancillary to a transition to the new societal form. Rather, they will be a permanent characteristic of the information society in the future. Moreover, we should expect that these factors would continue to expand at an accelerating rate (a positive feedback exists). Barring some catastrophic event, we expect that the rapidly changing environment will be not only "more so" but also "much more so." To succeed in an information society, organizations must be compatible with this environment.

Q.3 what are the features contributing to success and failures of MIS models? [10 Marks] A.3 MIS is to be success then it should have all the features listed as follows: 1. The MIS is integrated into the managerial functions. It sets clear objectives to ensurethat the MIS focuses on the major issues of the business.
2. An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected. 3. The MIS is oriented, defined and designed in terms of the users 4. The MIS is kept under continuous surveillance, so that its open system design is modified according to the changing information needs. 5. MIS focuses on the results and goals, and highlights the factors and reasons for non achievement. 6. MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system.

7. The MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioral factors in the process of the management. 8. The MIS recognizes that the different information needs for different objectives must be met with. The globalization of information in isolation from the different objectives leads to too much information and information and its non-use. 9. The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design. 10. MIS recognizes that the information needs become obsolete and new needs emerge. The MIS design, therefore, has a basic potential capability to quickly meet new needs of information. 11. The MIS concentrates on developing the information support to manager critical success factors. It concentrates on the mission critical applications serving the needs of the top management. Many a times MIS is a failures. The common factors which are responsible for this are listed as follows: 1. The MIS is conceived as a data processing and not as an information processing system. 2. The MIS does not provide that information which is needed by the managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system. 3. Under estimating the complexity in the business systems and not recognizing it in the MIS design leads to problems in the successful implementation. 4. Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS. 5. The MIS is developed without streamlining the transaction processing systems in the organization. 6. Lack of training and appreciation that the users of the information and the generators of the data are different and they have to play an important role.

Q.4 List down the Potential External Opportunities, potential internal Weaknesses [10 Marks] A.4 Potential External Opportunities

Serve additional customer groups

Enter new markets or segments Expand product line to meet broader range of customer needs Vertical integration Falling trade barriers in attractive foreign markets Complacency among rival firms Faster market growth Potential Internal Weaknesses No clear strategic direction Obsolete facilities Lack of managerial depth and talent Missing key skills or competence Poor track record in implementing strategy Plagued with internal operating problems Falling behind in R&D Too narrow a product line Weak market image Weaker distribution network Below-average marketing skills Unable to finance needed changes in strategy Higher overall unit costs relative to key competitors

Q.5 What do you understand by Multinational corporation, Global corporation, International corporation, Transnational corporation. [10 marks]

A.5 Multinational Corporation A multinational corporation has built or acquired a portfolio of national companies that it operates and manages with sensitivity to its subsidiaries local environments. The subsidiaries operate autonomously, often in different business areas. A company that follows a multinational strategy has little need to share data among its subsidiaries or between the parent and subsidiaries except to consolidate financial positions at years end. Global Corporation A global corporation has rationalized its international operations to achieve greater efficiencies through central control. Although its strategy and marketing are based on the concept of a global market, a headquarters organization makes all major decisions. A company pursuing a global strategy needs to transfer the operational and financial data of its foreign subsidiaries to headquarters in real time or on a frequent basis. A high level of information flows from subsidiary to parent, while limited data move from parent to subsidiary International Corporation An international corporation exports the expertise and knowledge of the parent company to subsidiaries. Here subsidiaries operate more autonomously than in global corporations. Ideally, information flows from the parent to its subsidiaries. In practice, subsidiaries often rely on the parent to exercise its knowledge for the subsidiaries benefit rather than simply to export it to the subsidiaries. For example, a subsidiary without a great deal of human resources expertise may "pay" its parent to operate its human resources function. Although the information theoretically should stay within the subsidiary, in this case it may flow back and forth between the parents location and the subsidiarys location. Transnational Corporation

A transnational corporation incorporates and integrates multinational, global, and international strategies. By linking local operations to one another and to headquarters, a transnational company attempts to retain the flexibility to respond to local needs and opportunities while achieving global integration. Because transnational operate on the premise of teamwork, they demand the ability to share both information and information services.

Q.6 What are the limitations of ERP systems? How ERP packages help in overcome theses limitation [10 Marks] A.6 ERP systems serve an important function by integrating separate business
functions materials management, product planning, sales, distribution, finance and accounting and others into a single application. However, ERP systems have three significant limitations:

1. Managers cannot generate custom reports or queries without help from a programmer and this inhibits them from obtaining information quickly, which is essential for maintaining a competitive advantage.

2. ERP systems provide current status only, such as open orders. Managers often need to look past the current status to find trends and patterns that aid better decisionmaking.

3. The data in the ERP application is not integrated with other enterprise or division systems and does not include external intelligence. There are many technologies that help to overcome these limitations. These technologies, when used in conjunction with the ERP package, help in overcoming the

limitations of a standalone ERP system and thus, help the employees to make better decisions. Some of these technologies are:

Business Process Reengineering (BPR)

Management Information System (MIS)

Decision Support Systems (DSS)

Executive Information Systems (EIS)

Data Warehousing

Data Mining

On-line Analytical Processing (OLAP)

Supply Chain Management

Out of the above technologies MIS, DSS and EIS are forerunners of the ERP systems. Once the ERP system and the other technologies (like Data Warehousing, Data Mining, OLAP, etc.) are integrated, the MIS or DSS will become redundant as their functions will be taken care of by the new systems and they will be slowly phased out from the scene. With the competition in the ERP market getting hotter and hotter, and ERP vendors searching for ways to penetrate new market segments and expand the existing ones, tomorrows ERP systems will have most of these technologies integrated into them. In this session we will see how each of these technologies are related to ERP systems.

July 2011 Master of Computer Application (MCA) Semester 4 MC0076 Management Information Systems 4 Credits
(Book ID: B0901)

Assignment Set 2 (60 Marks)

Answer all Questions Each question carries TEN marks

Q.1 Explain with relevant examples the concept of business process. Also mention their elements. [10 Marks] A.1 For initiating business re-engineering, one is required to make some very basic and fund a- mental changes in ones conventional thinking. The business is reengineered through process reengineering and the business has a number of processes which together produce the business results. You concentrate on the process and not on the task when it comes to re- engineering.
The business process is defined as a set of activities performed across the organisation creating an output of value to the customer. Every process has a customer who may be internal or external to the organisation. The scope of the process runs across the departments and functions and ends up in substantial value addition which can be measured against the value expectation of a customer. For example, the order processing scope in the traditional sense is within the marketing department. But when it comes to re-engineering, the scope expands to manufacturing, storing, delivering and recovering the money. Likewise, the scope of the bill payment is not limited to the accounts and finance departments but it covers ordering the vendors, receipt and acceptance or goods and paying the bill amount.

In a classical organisational set-up, the different processes are handled in parts within the four walls of the department and the functions are limited to the responsibility assigned to them. When the bill payment process is to be re-engineered, it will be reengineered right from the purchase ordering to cheque payment to the vendor. The reason for covering the purchase ordering as a part of the bill payment process, is that the purchase order information decides the number of aspects of bill payment. The basic element of the processes is motivation to perform certain activities. In the process execution, the data is gathered, processed and stored. The data is used in the process to generate the information which would be checked, validated and used for decision making. The decision is then communicated. The process is executed through the basic steps such as receiving the input, measuring the input, analysing the document, performing, processing, recording, accessing data, producing the results and communicating them. Basic elements of business process are: Motivation to perform Data gathering, processing and storing Information processing Checking, validating and control Decision making Communication

All these relate to human initiative. A business process in any area of the business organisation performs through basic steps, such as, receive input, measure, analyze, document, perform, process, record / store, access, produce and communicate. These steps are performed a number of times across the execution process. When the process is performed, it consumes resources and time. The re-engineering approach attempts to eliminate or shorten the steps so that resource consumption is reduced and time of process execution is shortened. It eliminates redundancy by eliminating the steps, which do not contribute, to the value customer is looking for.

A business process defined for re-engineering has a clear cut start and end, resulting into a business result. In organisation, there are long processes and short processes. There are critical processes and not so critical processes. The critical business processes are those, which contribute to the value significantly. While the non-critical processes do not contribute much to the value, the customer is looking for. For example, the process of receiving a visitor in the organisation could be considered as noncritical. But the process of new product development from the concept to the prototype is critical as it is expected to contribute high value to the customer. If the external customer focus is taken as a criterion for process selection, then all the processes which generate and add value to the customer are called the value stream processes. The value stream processes are critical and become the immediate candidates for reengineering. The other processes in the organisation contribute to the overheads of performing the business function. For example, the processes involving attendance, leave, payment of wages, security, travelling and accounting are not value stream processes as the resources employed in them do not create a value or improve a value to the customer. Such processes are a second priority as far as reengineering is concerned. Every process is made of a series of activities. In each activity some work is done which produces some result for processing into the next activity. If the work done under any activity is analyzed, it will be seen that the people are moving papers and products to achieve some result. In the process they collect the information for decision making and then carry out a physical activity of pushing the product or the output using the paper for record, document and communication.

Q.2

Explain the control issues in management information systems.

[10 Marks]

A.2 Control

Control is the process through which manager assures that actual activities are according to standards leading to achieving of common goals. The control process consists of measurement of progress, achieving of common goals and detects the deviations if any in time and takes corrective action before things go beyond control. The basic steps in control process are shown in the following figure.

Security Control The resources of information systems like hardware, software, and data, need to be protected preferably by build in control to assure their quality and security.

Types of Security Control:

1. Administrative control 2. Information systems control 3. Procedural control 4. Physical facility control

Administrative Control Systems analysts are actually responsible for designing and implementing but these people need the help of the top management in executing the control measure. Top executives provide leadership in setting the control policy. Without their full support, the control system cannot achieve its goal. In addition to this , managers must be involved in functions such as effecting a control policy, selecting and assigning personnel, fixing responsibilities, preparing job description, setting standards, preparing a strategic information plan and acquiring adequate insurance.

Information System Control

Information system control assures the accuracy, validity and proprietary of information system activities. Control must be there to ensure proper data entry processing techniques, storage methods and information output. Accordingly management information system control are designed to see or monitor and maintain quality, security of the input process, output and storage activities of an information system. Input Control As we know whatever we give to computer the computer processes that and returns the result to us. Because of this very fact, there is a need to control the data entry process. The types of input control are:
i) Transaction Codes: Before any transaction can be input into the system, a specific

code should be assigned to it. This aids in its authorization.

ii) Forms: a source document or screen forms should be used to input data and such

forms must adhere to certain rules.

iii) Verification: Source document prepared by one clerk can be verified by another clerk to improve accuracy. iv) Control-totals: Data entry and other system activities are frequently monitored by

the use of control-total. For example, record count is a control-total that consist of counting the total number of source documents or other input records and compare them at other stage of data entry. If totals do not match, then a mistake is indicated.
v) Check digit: These are used for checking important codes such as customer number to verify the correctness. vi) Labels: It contains data such as file name, and date of creation so that a check can

be made that correct file is used for processing.

vii) Character and field checking: Characters are checked for proper mode

numeric, alphabetic, alphanumeric fields to see if they are filled in properly.

Processing Control

Input and processing data are so interrelated that we can take them as first line of defense. Once data is fed into the computer, controls are embedded in various computer programs to help, detect not only input errors but also processing errors. Processing controls are included to check arithmetic calculations and logical

operations. They are also used to ensure that data are not lost or do not go unprocessed. Processing control is further divided into hardware and software control.
1) Hardware Control They are built in the hardware itself to verify the accuracy of

processing.

2) Software control They are designed to assure that right data is being processed.

They are like operating systems or other software checks. Checking internal file labels at the beginning and at the end of the magnetic tape and disk files is an example of software control. Yet another software control is the establishment of check points during the processing of the program. They also help to build an audit trial.
Output Control

These are developed to ensure that processed information is correct, complete and is transmitted to authorized user in a timely manner. The output control are mostly of same kind as input control e.g. Output documents and reports are thoroughly and visually verified by computer personnel and they are properly logged and identified with rout slips. Control total at output stage are compared with control total at both input and processing level. A hard copy of listing is maintained for evidence. The end user is contracted for feedback about the quality of information.
Storage Control

Control responsibility of files of computer programs and databases is given to librarian or database administrator. They are responsible for maintaining and controlling access to the information. The databases and files are protected from unauthorized users as accidental users. This can be achieved with the help of security monitor. The method includes assigning the account code, password and other identification codes. A list of authorized users is provided to computer system with details such as type of information they are authorized to retrieve or receive from it. A three level password system is also used in which firstly the user has to give his or her unique ID. Then he is asked for his password in order to get access to the information. Finally to access an individual file, a unique file name is to be entered. Sometimes for writing purpose, a different name is given to file and this is another way to control the error. Lastly, many firms also use backup files which are the duplicate files of data or programs, stored somewhere else. Files are also protected by file retention measures which involves copies of files from previous periods. If current file is corrupted then they are used to reconstruct a new file. Usually several generations of files are kept for controlling.

Procedural Control These methods provide maximum security to operation of the information system. Some of the examples are: Separation of duties: Each activity related to computerized information system like systems development, computer operation and control of data and program files, is assigned to different groups of persons. System analysts and programmers are not allowed to files, which are maintained in the library and the responsibility is given to DBA. Finally, a production control system may monitor the progress of information processing, data entry and the quality of input data. Standard procedures are developed and maintained manually and built in software help display so that every one knows what to do. It promotes uniformity and minimize the chance of error and fraud. It should be kept up-to-date so that correct processing of each activity is made possible. Authorization requirements the formal review must take place before authorization is given on getting a request for some system development, changes or system conversion. For example, if program change is done by maintenance programmer, it should be approved by the affected departments manger as well as from the manager of programming and manager of computer operation. Thus conversion to new hardware and software, installation of newly developed information system, or change to existing program is subject to a formal notification so that accuracy and integrity of information processing operation can be maintained. Physical Facility Control Physical facility control is methods that protect physical facilities and their contents from loss and destruction. Computer centers are prone to many hazards such as accidents, thefts, fire, natural disasters, sabotage, vandalization, unauthorized used, industrial espionage, destructions etc.. Therefore physical safeguards and various control procedures are required to protect the hardware, software and vital data resources of computer using organizations. Physical Protection Control Many type of controlling techniques such as one in which only authorized personnel are allowed to access to the computer centre exist today. Such techniques include identification badges of information services, electronic door locks, security alarm, security policy, closed circuit TV and other detection systems fire detection and extinguishing system., fire proof storage vaults for the protection of files, emergency

power systems, humidity temperature and dust control etc., are installed to protect the computer centre. Telecommunication Controls The telecommunication processor and control software play a vital role in the control of data communication activity. Data can be transmitted in coded from and it is decoded in the computer centre itself. The process is called as encryption. Computer Failure Controls Computers can fail for several reasons like power failures, electronic circuitry malfunctions, mechanical malfunctions of peripheral equipment and hidden programming errors. To protect from these failure precaution, any measure with automatic and remote maintenance capabilities may be required. Adequate electrical supply, humidity control, air conditioning and fire prevention standards must also be set. Computer operators must be trained and supervised carefully. Fault tolerant computer systems may be installed to ensure against computer failure. Insurance Adequate insurance coverage should be secured to protect the computerized information system using business firms. Financial losses are very huge in amount. Many insurance companies offer special computer security policies. These include insurance against fire, natural disasters, vandalism and theft etc. Insurance for data process error or omissions, and insurance for the bonding of information services personnel as a protection against fraud. The amount of such insurance should be enough so as to replace affected computer equipment and facilities. Insurance is also available to cover the cost of reconstructing data and program files.

Q.3 Discuss the function for manager. A.3 Functions of Managers

Planning

[10 marks]

Managers engage in a variety of planning activities that occur over short- medium and long-term periods. Driven in part by the need to respond to competition, the changing environment, and customer demands, managers develop the organizations mission: goals and the means to accomplish them.Planning usually refers to both the specific of goals and the blueprint for achieving them. It can occur at the individual, group, organizational, or extra-organizational level. Managers may engage in strategic, tactical, or operational planning. They also engage in decision making, in which they

allocate resources and act as negotiators, problem solvers, change agents, and disturbance handlers. The top managers at LIC of India, for example, likely decide which insurance products and how to sell them as part of their strategic planning the long-term planning for accomplishing the organizations mission. Information about LICs capabilities, its competitors competencies, and customer demands is essential for determining the organizations goals and its strategic plan-long-term activities the organization must undertake to accomplish its mission. Knowledge about technological developments and their applicability to the insurance company, as well as about the supply of various types of workers, constitutes additional information incorporated into the strategic plan. In most organizations middle managers more often engage in medium or short-term planning known as tactical planning. Tactical objectives describe what units within an organization must do to accomplish strategic objectives, and tactical plans refer to the steps for attaining the tactical objectives. Tactical plans may focus on decisions about staffing, advertising, and pricing, for example; or they may reflect other financial, marketing, or human resource decisions. What types of information would a manager need to determine the best advertising campaign for his or her products? The manager might need to know what competitive products exist, the nature of advertising for those products, and the cost of various media. Operational planning, or planning for the issues of implementation, often accompanies strategic and tactical planning. The public works director of a small town must plan the monthly work schedules for the road crews she supervises. The shipping supervisor in a large manufacturing company must determine how often to schedule a third shift of workers. The program chairperson must schedule the particular events that compose the national meeting of the Academy of Management. In each case, these managers require an array of information about their subordinates, their clients, and their jobs to design the operational plan. What information does the public works director need, for example, to meet the objective of rescuing people as the level of water is raising in the river due to continuous rainfall? She needs to know the availability of crews equipment, and the possibility of additional rainfall.

Managers at various levels determine the best way to reduce costs. A manager determines the assignment of people to tasks, the allocation of money materials to individuals, departments, and other work groups, and the scheduling of various organizational members time. Effective allocation requires the manager to have information about individuals existing work assignments, capabilities, and vacation schedules. The manager must also know the costs of various projects or products. Consider the situation face, the manager of a product development team for a new shampoo at Procter and Gamble or she must know how much overtime to budget into labor expenses to ensure a timely product launch. Managers frequently negotiate with their subordinates or other managers about the allocation of resources or the best way to accomplish various group or organizational goals. In conjunction with resource allocation and negotiation, the manager as a problem solver defines problems in a situation, analyzes them, and then proposes solutions. When the problems can be handled in a relatively long time frame, the manager acts as a change agent. When problems must be solved in a short time frame, the manager engages in disturbance handling. To plan effectively, managers often need forecasts about likely future conditions. For example, prevailing interest rates may affect whether a company should raise cash through the sale of debt or equity. The timing of a companys plant opening can affect whether the company will purchase a component of its product from a wholesaler or whether it will manufacture the component itself. The forecasted market share of a competitors produce should influence a companys production levels and possibly affect hiring and capacity decisions. No manager can be correct 100 percent of the time. Part of decision making involves assessing the risks of being wrong versus the rewards of being right. Managers may cushion the impact of incorrect foresight with contingency plans. Nevertheless, managers can increase their chances of correctly assessing future conditions by using quality forecasts. Planning in organizations that function globally may pose special challenges. Managers may need to account for significant currency fluctuations, unpredictable political conditions or an unknown labor pool; they may need to consider variations in national customs, worker expectations, and product acceptance. Consider the information needs of a manager who must close the companys manufacturing plants in a foreign

country. He or she must know, for example, the legal provisions that govern the sale of assets as well as the legal regulations for compensating terminated workers. The information needs of global managers in these circumstances are extensive and particular to the special business problems they must solve. Decision making also involves significant information needs. Managers require information about individuals, groups, and organizations involved in or affected by the problem situation. They need information about the alternatives available and the costs and benefits associated with each. Managers as change agents also need data about workers and managements attitudes toward change, the resources available for the change, and the consequences of similar changes in other situations. Managers should diagnose each decision situation to identify its unique information needs. Consider the decision that a manufacturer of outdoor clothing must make about whether to purchase a small manufacturing plant in China. What information does the manufacturer require in order to make that decision? What information does this manager need in order to make a quality decision? Managers must diagnose their information needs in each particular situation and then seek ways to obtain the required data.
Organizing

Managers must structure their organization and coordinate the organizations resources to accomplish its goals. Organizing generally means establishing a formal reporting structure and a system of accountability among workers; it means forming employees into meaningful work groups with appropriate supervision. Defining the hierarchy of authority determining the location of decision making, and providing for coordination all contribute to the organizing process. First-line supervisors and middle managers generally establish a network of contacts within and even outside the organization to gather information. The manager may use interactions with coworkers or colleagues in other organizations to improve their job performance. Managers at all levels attempt to build effective work teams by encouraging cooperation and handling conflict that arises. Managing work groups generally calls for the open exchange of information and ideas. Managers and workers may jointly develop group goals congruent with organizational goals and orchestrate collaborative activities. Increasingly managers must supervise multicultural teams of workers; managing these heterogeneous groups requires special information about the impact of cultural differences on job performance and the techniques for handling them. Managers need to know the status of group activities so that they can modify schedules and resource allocations. Group members must receive and share information about the status of their activities and thought processes. Organizing

effectively requires information about the content of jobs, the skills of workers, and the availability of resources in the organization. Managers must also understand the assets and liabilities of various structural forms, such as functional structures, project structures, alliances, or networks. The options for organizing become increasingly complex as managers deal internationally. Securing sufficient and appropriate information to coordinate globally challenges managers to diagnose their information needs effectively so that they do not obtain too much, too little, or irrelevant information.
Leading

Leading generally refers to taking actions that direct and motivate employees to accomplish personal and organizational goals. Top executives, middle managers, and first-line supervisor help subordinates develop the skills, knowledge, materials, equipment, and time to perform their jobs. They offer guidance to subordinates about the best way to perform various job related activities. Managers also evaluate their subordinates, and sometimes even peers and superiors, as part of their leadership responsibilities. The manager acquires information about how individuals view the goals the manager has set and seeks information about what would encourage subordinates to accept these goal and work hard to achieve them. What information does a manager need to handle the problem of a poorly performing worker? The manager might need data about the employees skill level and attitude, the jobs requirements, and any jobrelated goals set. The manager might also need information about unusual factors, such as family illness or defective equipment that might have affected the workers performance. The manager might also need information about training programs in which the worker has participated. Subordinates also acquire information about how the manager perceives their efforts and adjust their performance and priorities accordingly. In many organizations, formal human resource management systems provide mechanisms for this feedback. What types of information do managers require in order to lead effectively? They first need a clear understanding of the organizations goals and of their responsibilities for accomplishing them. They also benefit by having information about their bosss needs and goals. Managers need data about the skills, abilities, knowledge, needs, and experience of subordinates; they must also regularly secure information about their subordinates performance. Managers must also have a comprehensive understanding of the situation to select the most appropriate leadership style for influencing workers to perform effectively. Researchers suggest that they need information about workers needs and maturity, the leaders relationship with the subordinates, the tasks structure, the organizations structure, and the organizations environment.

What information needs are inherent in the interpersonal roles required for leading? Managers must know the nature of the tasks being performed, the expected standards of performance, and the potential barriers to their accomplishment. They must also have detailed information about the skills, experiences, and expectations of the workers they supervise. In addition, managers must have information about colleagues from whom they might gather information for the organization, listings of professional organizations, and data about colleagues employed by competitors. Effectively motivating and developing subordinates as well as influencing others and building relationships likely require extensive situation specific information that a manager should diagnose. Managers also should diagnose the information required to solve employee-related problems. Effectively leading a multicultural workforce creates both specific and generic information needs for managers functioning in the global arena.
Controlling

Managers must also monitor the quality and impact of managerial actions. Controlling means ensuring that performance meets established standards, that workers activities occur as planned, and that the organization proceeds toward its established goals. Controlling, requires comparative information about the optimal way to implement organizational processes and their actual implementation. In the control process, managers establish standards and methods for measuring performance, assess performance, and then compare performance with the standards. They require information about the organizations functioning to help them anticipate and handle organizational problems and challenges. Managers commonly use information provided in budgets and financial controls to guide and constrain organizational activities. They also use cost information to maintain profitability. Executives at Russell Reynolds Associates, Inc., an executive search firm with offices worldwide, determined that top management required consistent and more detailed information from all offices. The director of international finance there led a design project that resulted in standard accounting procedures that conformed to USA, and international regulations.

Q.4 a. Describe business plan Vs MIS plan b. What are the different classes of information

[5 marks] [5 marks]

Q.5 Explain the various cognitive style as identified by James McKinney and Peter Keen. [10 Marks]

A.5 The success of a management information system in supporting a decision maker depends heavily on certain characteristics of the individual. Some of these are differences in the attitudes of system users; others concern individual cognitive behavior.
Much of the research regarding individual differences has been summarized by Robert Zmud. Individuals who tend to access information to a greater degree exhibit a low degree of dogmatism, a higher risk-taking propensity, an internal locus of control, and low tolerance for ambiguity. It has been recognized that people do not necessarily understand their own information requirements. This underscores the need for MIS specialists to bring these requirements to light and the importance of using techniques such as prototyping of information systems. Decision making is a cognitive activity, as are other phenomena such as learning or understanding language. In general, human cognition is human information processing. People display distinct cognitive styles in the ways they gather and evaluate information. In their analysis of how managers minds work, James McKinney and Peter Keen have classified the information related modes of thought along two dimensions: information gathering and information evaluation. The information-gathering dimension focuses on perception, on the way a person organizes the verbal and visual stimuli he or she encounters. Preceptive individuals bring to bear concepts ("precepts") to filter incoming stimuli; from the framework of these concepts, they look for specific conformities with or deviations from the concepts they have already formed. Receptive decision makers focus on details rather than on a pattern and attempt to form a general picture of the situation from these details (a characteristic of inductive thinking). Information evaluation relates to the way an individual brings information to bear in the process of decision making. A systematic (or analytic) decision maker approaches a problem by structuring it and applying a well-defined method expected to lead to a solution. An intuitive individual applies heuristics (rules of thumb) and shortcuts and uses trial and error to find a solution; these people are more willing to go with their "gut feeling" about the problem. McKinney and Keen stress that all of these modes of thought are appropriate in certain situations, and some combinations of them are particularly fit in certain occupations. While the importance of individual cognitive style in the design of MIS has been contested, the fact that significant differences exist among individual decision-making processes should inform the way systems are designed. In particular, developers of information systems tend to be systematic individuals and thus tend to assume that

the users are (or should be) the same. End-user system development and a number of available packages have addressed the necds of intuitive (or heuristic) decision making. These systems allow the user to play out a variety of scenarios; the user is able to identify and test new alternatives. Such systems should not impose a preset processing order, but rather allow the user the freedom to set this order as he or she is working. It is desirable that the system allow an easy shift back and forth between summarized and detailed data (needed by receptive individuals). A variety of tabular and graphical output formats should also be available. Much of this wish list is now fulfilled in well-designed DSS and EIS.

Creativity in decision making by individuals and groups

Individual creativity is the cornerstone of good decision making? Cornerstones, however, do not houses make, and organizational departures from rational decision making, as we discussed, are a frequent reason for the demise of creative problem solving. Creative thinking offers new approaches to often ill-defined problems that are worth solving. The creative process requires cultivation, and much of it can be learned. A well-regarded approach to "creativity in business" is described in a book with that title by Michael Ray and Rochelle Myers. Ray and Myers postulate that creativity consists in learning to release the human potential present in all of us. James Adams sees the road to individual creativity as a process of overcoming the following obstacles: Perceptual blocks: stereotyping, preconceived notions, inability to see a problem from various viewpoints Emotional blocks: fear of taking risks, desire for orderliness, lack of a sense of challenge Cultural blocks: avoidance of fantasizing and ret1ection, feeling bound by tradition, fear of right-brained thinking (because we have been trained to believe that analytical thinking is superior to intuitive or qualitative judgments) Environmental blocks: lack of support within the organization Intellectual blocks: lack of information, int1exible use of problem-solving strategies, inadequate skills in expressing ideas (for example, verbally, mathematically, or visually) As soon as we have classified obstacles in this fashion, we can identity our principal inadequacies and deal with them. Finding new associations between ideas underlies

creative thinking. Recent analyses indicate that much creative decision making in organizations is performed or stimulated by groups-from a work team to the chief executives "cabinet." People in a group are able to bring diverse backgrounds, expertise, and cognitive styles to bear on a problem. It is sometimes said in jest that the camel is a horse designed by a committee; we may note that the committee seems to have come up with an animal that has contributed immensely to human civilization. Group work has to be carefully organized; certain individuals do not perform well in group settings

Q.6 Bring out the table that indicate the various classes of information

[10 marks]