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89

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Central Spares dlllily/nlQ,nthly aocoul,1IJnn,g; Chlilty' insurance :iProces~ 26S' 'W@liklv'iU~'i!lJr~Il~' proeess 266 'Nio;n thl,y ~ilt~urai:li,ce' precess ,2"66
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t5~,14,

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Figu1fe:

F.igtil~ '~5~:5 1 Fig~:~ 1i 1 .. Figul1'6 '1&,'2, Figulfe '~:6,.'3

Figure 1604,

l'up' p,arl: of ~@~Ul repaymerd spN~ads,he:e~ 29D M~jo:r'~nl1u,em:;e-s, on the' o:r,ga'ftisil1ti~n,I':5' ~ns 299 lnformation system d.e~.g]opruer.t: 3')]

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,187 r and gr,~:p.h.i'('a~1 (I!'s'h budge'l:

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Nee data ilo",! diagram :symhob, 305'

figu1r:e '1",,,,5: -f'Igi:U'l! \;g;,_ Ii ~iIl:: F'-' re '1il:..''}' _Igg - _ ,_ U'

figu[r! '~6.,'B Figtu@ARl

Fig~re AR3 Figu,tt EQ't

Level ~ DFD of mail order business 306 Level :4 :DFD of mail ~ltdef'business 306 Lt.'V~]~;DFD OF mall (,roe'f' business 30.7 Cycle of ~~Sl.1inpH~}:n~ unci.;;>ilpP,g S'SM .3'O~ Ou~:~ineof .~ta,gE'f; SSJirt: ,308 tn Syst~m f~Jr:proc~s,]jO:,g; r.d,~ 10 a manufacturing o Order :process ,1i'I'S, recorded by ~n"dysl 3:11

,t:o~pany

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,;},2;7

Cha:r,i1ide~l:~U!t:~,o€ plannl ng~ cr),n:tru~ al:Ttd d,ecliSlon l1]ii,aking

fig~:i'@ EQ2 figur@ EQ3

~igui'8 IEQ4,

S~:g~k (;,~):ntfQI, prscedure 'w',ilth closed l\o~'ps,y~;;tenl 342 Prl$lsibl(i Levell da:tillflmv dlagram 34'{'; l~s~i,ble 'level 2 lexplosion" of order proe,essing: 347
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List of tables

lalb_'I,e_~ 2.,,1_ __._,~!j.JL _g I'h' ,e \!'-~--~ 'IC;~ :'<['.'rc',- :-'1' Jn A~~'-,,--'~:;in---:: __ a~ueiJl!! III _~_urm. .l(_ l'i,a, Ib-',I"., '1_0 ..•_'1_· V;" L'b'Thr 'i!:] f SiefV].ce ~';' - -- ,;, 1~]ln1.~S "I~c6'.' l ...:,~Il~ u"'i lalble 10,'2; Resul~, ofJ:simtdatiot1

'oil. J~ ,9i"' ,(j

1: 67

Talbl@ 13.'1 Perf()frtl.aIllCle.' nt€!:1'SUlU:S listed. in order ,of Ihll.lJortil nee 2iU Table ~3",2 'lar,gels set for G~fI!fernnu:n~: services agencies ,208 lalbhili 13.3 Ex:a_pler; l(.if' KP1$,used in [h~ NBS 209 "Falble AR:t Condl tional. profit~ fur each pric:e ca~;e,go:ry 'J"4 'lalble AFa 'Estima,tes of competi ~iDili'-:S price 224., ''Jialble'1,4.1 URl suffixes. 246 'Tabl~ fQ'l IF' St:e.eJCom.:p"nY"~ :f~rcl?$ Jior th~~:ilg(;' reslstanee .136 ~nd

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ts A·' k '.,.-·'1·d glemenl-~_s c··.·now ec

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I WQoJd Uk't!,~o thank everybtJdy

lfjf

'W''ho

editions and sugg:t."SUons,:torimprovements which ~,have endea veered to include Y\ihe~,e!\I\e:r eesslble. ] would l~i:b1,0.:~hl\fa'seeeial thanks to :[),r Za'h~dPa:rv'Er:l~,Sen'~tl!([' a It.:· Ledurer: in rn'n;ffi''.H:rtil_~lt~~onMa nagen,le";irnlJt' ,at [b.e Busi!ll~(~s,'Seh,(Ju;llt, Uni'V(~rsi.ly of' ' u,~'I\i'eJr,uampILDl\r.' r ras ac :VIJC'i2' Ii:.. ~ f-o II!... dvi 10']1: •... eV(!;Jo:pme:n,b, i....· mrormanon ancd commumcad ,'I ' t, ~. . ..- .0, " in
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h~~ c(lrtitMbub~dCtU1:itmer.i l!io on e~dh~T

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'the ~ul.tjh(ij(l' would

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to' express tnC)!Juks,b) the' :f~l!lO:W-hig tg'l giving' permission pa_s~f.~~P1I:rlt-Ilii:()P q_uesli{)I\~-

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iii

knO'u I~-hat'~he book ta ke a de~L ](ti'1l f-o(;t~- W :m~:fi!,~gem,'i;;!r.~ iil'f,@:u-r.nation ~y J~!S,

U1t;€'

" tUidetS'~'and tlrua:t:]t' 'I dl!~ PJ3[ulucer

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u er \¥'no deh~'rm~nes l'ih~~'l ]n£t:u:i],~aJti(m til ot

tnformatlon

• ,know '~.be' maIn k]'lO'Ji!-\!']ed:g,e' req,l;rire_me.nt:s fur management

There is no universally accepted d~~'i~:iIlUion an 'M1Sand those 'nla~'exist refleet o:f n '" . 'l_'ireS.I- 0,1: t,'he ]."i'l,rtxcu_ar 'wnl't':r. ""Ji't.. te.:r,m ,_ .;j. u, b. t: '" 'I . 'M-]-C nas eecome h1lieemp h'I.IiS;~SI,_, ancd preJu d" ,~ue ~~r.rU)'$t ~,£iLOFlyTIIJ(Dl!J~ ';\I'ii~:h (!ompule:r N5'C'd data 'P!f~(c.s~i!l1,g and ~nd~cd.:manry 'b~p:ks,wilh :~S i~ tlhe title tu:rn out to be' e'X(-]u~tve~yconcerned with. t'QP~Ci' ,~,tll;::h
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the 'v~:F.h1rtiiS iI:lrlh~'f ~.e.du]"it:,,,,I,_{'f'i!~!tg o.f ¢Onl:~ U1lcl" ,-- -,- - d ,-ii":: __ - --'", __ 't- ted ",i ,&.- "~tOm --, 'f'M"]C reJ.:";~]~,1I.5,m, ,;11, pro " tU::u(!(iil, .. o([]eJiI. _3,11.12" u,'e,t.lm~,~n ' .\,"~' , 0
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Dec j:;!lon focus of MIS

MIS·
pfl~Ss€s

and !that n1t~n_~~~'rn~[rIJ in.v(l["t~m~n:l~tIld itd'~T~cti,on'b~~··een i:nfO'l'm·~.tlo:n.sped~~· ists an d. !!I!(1ta:rl~g,e:me'~u' ~he''key' €€'.~·hJres successful MtS deE~:g)ll,! are ,~~(f' Havlilllg:regard to ~-heemph~&:~~, th[~ bl)o'k. ~rn ~US cen [be. defined ast of

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duced ...

~~St:~~ ill~J\t'm'~lti~JN' not an. how .i'tt is oj' p.r10"·

1~2 Probl·elms w'ith MIS

These ]S abundanr e\f~d~:m:;c {:rUlli. OU ro,e:r'o'us su.rvey.s bod1 In. til1e 'UK and the USA. i ,.. , -tnat ex~t~i:1tg: M'I'~:( Q~teim US:j:~lg ~ d ,,_ ~.~S'~ :_V'aoce d' (flmfH,U€!ii' eqrl:,:!.~lpmef'll'~,I c~ .J,aVJe ilk d ~~._aH-~· ha,~_. '1hrdy' :~UUe :Slll!CiiO,>S:$,i~Jl pToviditIJg m;a~tagen"!,~:n'~ wHh the· infnr.maif]{~TI. the:y nL~d... he T t)~piclld reasons discnvered fof' this :hlc;'I'llldeU:u~ fo~I.Q\\r:i:ng; • lack of m~~.llag~~',1e¥llt ~.IiVlil.)~:vcrru,m:l "rnil the dc~i.,gnof the M[S

I.

.•. narrow and,tmi'in~'Ppropri~~'e emphasis oJ' the computer s'y'5t~m. '. undue co.n~~nl~raUon ]ow":!.:rvem dabl! processing :t11'p'pl]ca'~iQns :pari:icul~ilrlyin on
t~;ll~

accounting area

lack 0.£m'Ui'Lilg~m.t]~t: ~ru,)·w··:ltx:l.ge' o;~com puters p4l!JIlku.I~r,[y medium slzed enterprises (SME~)

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and

'.' poor app.rud~Uo.n. by' informatlon

s:poc-ial:~~,fts m~n<l~enitt~nr$ ITu.'~· of I:nf.~lr.mRtion l.'eq~,i·f.\~m·lHllt~ of oiligiM:n!i~~ and I;ion.a~,problems

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mana.g1e'menl suppers,

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To-be ,s,u,a;ess:ful an MIS must be clJ~sigr".'ed and I~,per,~,b~d, with dJ1lle"'f~·gc,mto C:1!irganisation ~!nd beha\iiournJ prin,cipl~s as l'li?ll as technical, factors. M'aoogement must be ru]lfo:rlilll~d enough to J]il!al-ean ef{eitti.ve (~'):nt.ribt~'tiO:ii, 'to :5'ySt'~i11S d¢("j,]t~, and . forma, ti10,1111 speaa -, ,]. t ,s:yst,e:m!;i; ana ~ysI.J.~, ~!CQJUl1l.l~ o.~,. Q'pe!r,.;IliQn::::;, !r'~~a.r-c,h.'E!~ t' m I:liS and ol:l:'rors) :m.ust hftcDimi.? more aware of mnitilJil£;,erialfum~ijons and n,¢ed$ ~ thi.1Jt~ l J·oindy, r,ncre ,eJfecli,vt1!, :MJSs are dewl1 op. ed" ~ :M~.nage.ll:u~nt o not: always knew '\v':hat in'f~~r~na,~iofl rnJe~d ~r!.d hl~t)I'~~~ d '!:hey'
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management

dano

'",'"hkh_, if followed, w"ill a1iltQ!:n~licany'produce t:bJ~:~:~Jcd MIS,

,.

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tha:l the design", imph:H1H~]1~,~tkH) and"

_-' org.~nL!'I dUIU'-.ureq,Ui~,[e,m,en,1-. .,:!'i"': ..... ~, .. ,,:' .~' ._. rs, 0 rea!-,~,.:,',,A· . ... "'" ~uu.,geme.r:i:L""
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-

is an awareness and i)jnde.r.~t~ndi:ng ,of key P(ri"d'P]l;~ and

1~1?l~t'ffl;i(}'n of

:ra U,iLet' th 'at'i ,h" -'Ii.. iiiLZ3[i!;,l d'" - -"'l op:me;n- -t w~: - ~ . . ,lapJ .. _. --.JI ··eve - - -- - r 't'-_n"~,~:

the ~M.[S dt(:! iSl,

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AI'!: l~mp'le is the ~(:cQuntl:n,g:oo~'h[dq'i!le of budg-ct~ty control whidh is uUen reaarded bv' accountants as a neutral, teehnkal P' recess 'but: whi,ch is v,iew,edJ. bV"the ",£\::'u.i" i·- '"~ a~ ~ ~'~y.l"~'I·" i, ,... r!!l'~1 'D-.')r~.:Jo;t'i' [~_~Js~n~ d-'J' '~I'''''''h,~1j.J. mo',s. 1'"1I;11.",:~i "'IIi'!il;i'<ri • !i'N ~'Ill!' i~.[LI'~'II.l~e ..~ ~. "~~lll 0" '1:..-, . ,,\~,~,,' el~r. 1~\J',F'~'ll;~J: o!!iil:',.;i;tcn~' ' h ave 'be!l'etidi!!~ mo~br~~:i~gfi-xt:5, but all '~oo' riten, 1lF£ seen 'by the pj]~:rm"g'~r5 nd e o a staff aJS, un wanted lmposilions 'w,l,dem. cause :re~,rlLr,men~ H:rIJd dysfunctionai benaJ'!i'"'; lour, i.e, behavlou r w hl'ch does not 1C':(m,tribnte'tiC) orga,nj5iU:iond~ ohioctivt1'3, Bectl;U,5~ '," ~,l.. ~ ",.~ "Ii' .. ',',' I, ',_" "i, l'jII-'Oll! u uC {!I. Cw,l~, ~.mpo,fL~,nce O'Ji '1- '"I";'v'"'' 'IUir!1.1 Co.rn;8I.'lera!Lmns t~1 ey a.n.. I,_ , 'I~' ,.' "'1'1 IJC ,]a .10 , ',,'" '. '",_ "'d',,, ,1,"""', ,_ ~ ,', " ; 'd'-' .ca.'1. Wh ..111
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dedslon rn eking and the tech nlques 8v'ailabl[e

nature of [pl,alnn'ingl and

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Pill[]:n:nin,g and. d[';C'is.~IOm1 ;[lktl,~\S'have .r:ighny m fa sk s and these tasks occur [~t eV'i1l:ry I,e'vel

been [t'al'iQd thr? primery nl£llnag,e,me,nt management t'JjUhough.. nahlriilUy~,~"hG '~~,peo:f'pll1nning and dedis:ilCHl making' ,",ill 'V'rrry hetwleen l~:he' evels, l P~ann'ing :ISthe pr;oc~ss (If dlc~idinlg, ln advance 'what is t,{) 'be done and. how H, 'i..., l,.,.. '~~-:: d 0':, .. ~....~ 'I"l..... iF m~~~~ p ~.' . "",'1;1 '~":"'Ij]~I~ '11'Ii 'p'lI""'I"!i~, "~~:I~ih ''''r'''" ered '~ ""~"'''Ii'if''I·I[i ... ~1 : ,~ .... 1 • .l~C!, p.:iro:"''!!'"'''' ,1,""'''''1;.10, l:!!' "f'II'.,.l·1'1i "': ,u~« .. IF J, ... i'!L'~,"'[~ ~ JO~ ~"" n~~ ,~u, u cOUf.!i(~ ()& action thllt ruflcct, or:,~a.n;isat]on4l1 oblt'CtiV'eS, and th~' plans are im:p'lt~:mcn'~~dby deelslens (lind actlons, Thus, [~ff~"eli,v'€': pt~nn~in.g, nd dt.'e,islon l.uakll;~g a a~e .im.~)(,trtca.bly linked, for l>ldthou:1d~cis:ions and acti0i(1,sll:u1 :p]aun].ng precess is a
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th,t] t,-Y,~~ o~'d~e;ci~:I~ns i e ~at the various levels of an. ergeuisatiort, A u~f1lill· m it!.., ~;i 11 "fa': '. t~h if!.' W\ircn by U;!L i",,~'" 11,;, [~I!Oai;;" C~~U~~iLc:.a'~,d;);n. ~I~, ~s:" _ ,I, !I,'~'" S" ·:Im,~)iti!!'\"~;[~O C~~~t fi~' AI d~ .'" ~ ~I,.l!!_ ,~';;;l:Oi[l ma,p;;.lr1ig ·~:'Iif" '~r~'l'i':i:-itLJ!F~d -, lL :0 ,p~~,gc'1~l_,L ~[~Ttd nr':-'Tm-8,~n L~~,,f~ : -,Ijl' ,-~, ~l n I i '~r ~jr:n·~'··;,ci areas, :Progr,\~unm[ed decisions are those' thal are routine and !ml:J€dti.ve:ilnd where the decision :rnl~ are blown. Conv~~~,yj. non ..programmed declsions ,11m tlOrv·eJand
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unsteuemred and th 'n :It,rl'''''''' ,....r\~. ~·t..n eroblem and d .,....·.'"'"j .... n '..II'I~loTII.. 11i_.I!~ "-' (Jmp~:~I"\!"'" "",ii:' IL·~-I!\7i,lYl~'i,;~ .. ).~~.~ ~ '"""'-\!' ..... .;,,.,..AI __.. a ~~_1l.1i. !!.Ai_ ~,~~ ":.!I!I~!!U 'I,t~'~i",,: 1~~"'I\r'Oorr;d~i J't, ~o·.ll:o:· ,L .. ,• 'l~ h._~,._ bri ef ,J."""".r[·I'P' ,1"IO"'~l'" ~tL"'t radlca ~~'l." di ~'f~·-;on~· und ..... il ,~,. ~"', f'w:I"Ii" 11'if.~I:'''' v." ,,--,., ~ "" U .... 'ml~\IJ . ~. infOnnatio:n. and 'P~t.>dtU\~S al~' '1!~~uJn'd I~h~'dlnl..~~n'~ d,'"CiS!~on tYlP~'~''lirVl"njch fot bas obvious h~1!!,p~:ic~tions f:or:~lIS design,
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wUh due re.ga~d.to ~:helfrypes t~f dioos,ion how decisions are' taken, how' tilhe dedslon maker relates t(~, organ:is.aUo'n .. the uatare o:f' the ol'garn~, H,lLe' 19,'tion",it:$, environments and so Om. AClceiP:tam~e' and 'unde:rsttiirnding of il:his.emphai sis, iby hofh H1Ioanag;ers, and lnfermation Spt1N.'ia]ists are- Ute p.r,iMiit:ry ·r~qui~s:lt:es, to eHectlv'e li.US de~i~g)n., 'M!inl~ger.~~, the :M1S:which StiJPpOi~~Sthem, mu~t ,dJst~n·· ~:nd ' ~~i~hbcili~..-eetlef£eet:i,vene~tI ,and 'cf6d,ency.,
• • EH'ectirveoe:s:s means dOi!'t9 the r[ght thing ~.e" pr,odLJdog' th e, de,si ~r'edlre.sults .. Ef'fliciElltFH::\j'i~ ,a[ meaSiUrEH"rnent o:~ Ule 'U'5.e. of resoUr<:e:s. to, a(lh~e-"e~Ile desilr'ed ,iI' i
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C~lntrol has already been mentioned as orte of IIIe 'mai'fl -m~nage ~ii~;nt tasks. Mueh o~ '~be' [ower and limiddl(;~,ma.ru1gem.ent (iHOd~ and CI[l:n~querll,Uy' much of ~'h~[]J1Il!,li.n,e output: of an 'MIS!, is eoneeraed 'w,ilth control actlvities Control l!";;the prDCe!";s [~)~,en::mrll:iLg: lh~l ~j!,pe[~1:ions. proeeed aC'Q~Jr.dlng to' plan and I1lt, tnt" mest ba'sk h~v~l, thLIi(l, doft!!e by comparing ~hc'aetu ~j [\e.~ld~!S 01llt~puJOf line system ,~gains,t:Jj target is [or and iILlsinS a!ny dlfferences fmmd to adi,iust ~:h~'nput sid~,of Ute .s:y-stVni so as t)(J; i
Copyr ·ghted mate ri a

bdli!Jg ,acti\dUes i;n. ~n;!~' il.vhh the httge ~:. n P~\iU::Uce the' ta:rgett :r.Nny be termed a no(r.,I:ll, r [ . bud gel", as sta dard a pe.r~C!(r.maJnoe' ,0[' 5!UJ\.!t'i.., iL-eve. an: ' S(l OJl!,. ," ", "£."~'" "'. ,,,·,.'~lJ~~l,~ ~l "~'d~""" " a , •u an; .til lUll' The pr.f)<JE~,(;1 c)lnt'UI:iI:ed above, i e., lnpu t" = process = (lutpu t = m_,onitol"" and urs cortl:pilJfe - ~djUJs;hneIJ!lt'"-r~qu~ire'5' h~.t ts known as ~J /eedlmck tm~hol.foOl' ~ndIJsuch ,H, w 'I ' " "'"' ~ " ,~ ,~, r'" t, .~ 0,,' :many~ ~ a~pec!"""0([ ,,_;1:"'1~~I' Lc ~~:m:p,Li2'1!UC:'t;;; cenrro i .£ ." ~ '".' ' '~'~ ,t: c ror . , ~. . 1 S~t' ~, ~llr' ~ ~ . ~'~I lOOP :IS it common "e'du:re ~YI budg'ehl ry control, prod udiiom contf()'1 and $0 on."it w1:[1 realised that ~:hebasle be s.ysfeu,l. d:e~r,ibed is :r,el[lti.v~lyrnechanlsllc and is ~h,ef:e.fore tUj:~:illJl~~!l.~ril:y 5!ii1'~ble r,(Jf .aU fa(~tB of I~be'or~lnisatim!I{:!J ,m:t!vit~!Cs" or examp~e'.. -there is the' ~m.F1id~ F ,;Issm:tJ.liI!ntifln tha,t the t'~~'~JT~t ])1nn d['PS .. not chan "~ean"_" fila t, ~ondll Oil1!'O.in ~'he ru:r.d' m· U l ~-~_-~~-~,iF'~--~~ ~~L~.~.~.L~,er"_~,,~"~" _'L~ t:1.~ii_.t::li -d conlrol (Vide wm he 5:~rH'~1\tU those in t:he p' asl Clearl \i"., in vol.aUk~,(:] nne t:_, ... -in, ~D nd erta - .. "J ~. -- ~ . _. ~ conditions these 'i1t9~!llU1]'bpHons ,~re hardlv li'kleht t'~l'[b~ \C~~L\t" The pnnciples or l'l)f'r!,t~t1~,j control cyd,~s.", ieedM~k;o f~dlJr'nv~,rd and so On ~ir~ ,. '1-1,..,·~tji! In 1ULf'il.l~l' ,", . 'C"'h'" ·t· '1~'2'i:1l!i!'l~d'. ~., indet.. U'lL_., aptersrz ,d ,~'iI!,. \'i,1]!I!l L' ,iI, ';J'." Wlle:ru a selfr.mgul.atin,g, fe~dback '!;;yste~m '1$:not able 'k~ ,c~J1th"ol,~,pift)Clt.~, adequahl'ly :i~' a"lf be (Qilsihl(? to use jiw.djuruJflrd. This IS where morni,l'O[~~ngalt' ~m,e' m I~~dysf1!lJ,g:e f il, system ,ut p;FO(e, ..~ m~.y :indk~Ie that an ~dJu;stnl1e,o ~~\}hC!uJd be made o at ,;1) later s'~a~ of t.lle pnxess prior' to tl'u~,nnal oo:tput f,'~edfUffl~rd l~ '!lot ,a_n, "I'i'~I'''''' ~l;Y:,!!'i' , .. 1,,- -':'1" -_,' ',-' ·'·'-1'--,- .. ·--,~,t,"- -I ,;~, , .. ,t-'·~ ,f!:··_,'t· ..... opera te success,,·,,· rate .,..... -~.~" a III nmae lll: pr'Lll:,es~ann ,reqiIJu,l1'!'iS. Imi:ln.a:,g,en,le'f.i. Ul.,e,r\ en non , C~[f u ro
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1[1,10The in.luelni(le of lnformetlon

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:tICT ]s a,gerlte[.~d, t.".);;p~essio:n,,(jO:'H~rln;g compu:l~~I' il~n,mln1UJnica:lio;n$ ~ncl e~(OC,troDJcs, b afli,d there :is li Ide doubt UMt: 1:0' is b,~:vifig!l P~QJ:oU[i!;d lnflue!lc-e' flO ~11aspects o.f ]Ue~ l,[i!,c:ludiin,g:(uga:n~sathJitiiJ~and :M1S",,Much of the expt:'nd~h.Lreon computers and ',ii'-[Ii" incurred ...tions to d has 'b'."'''''~' ~ o ,.. ~""h"·~","""I~r. 'i",..... ~'ilr""ii"" d:: ats InM-"'''',I,...... !Ii ,'..'I, ~I.,,~ ,~"~..., b:ry' n.''''''',aifloi's ,', "",,,' "'i:!' iofioi'' . n w ''''IC',~,r,~ ~,n,S~ppUall.ion~. p:i'IiI;~:~t:u]alr.ly in. the 2MClOOt] nting, area, and i:n. (liPe'r~ri~:na] «)ntrn'n:1 a jt-, ,"'I'" ~:~,;;r"'k 'fI'ioi"'I,]1 ..... J 01 COUT5~ th~se are vita] latsk.s bu t ,or ~h~m's~d\r'es, dJey do :no'l: crm;5tituf.~' ,MIS. These ll',~.di:~o'"~l d~lta proce$~m:g ~ys;~~m'::l,~ which are ,~H,e;t! highly ~}'phd:d~lC'ated and (o:mpl,e.x", pt!'[,ro:rnl the (i!s~n!'t::i~,l of p,ro~e~~ing lday~t~,~da.'y ;;~('hons :roi~' the' b and prov.ide much of the data fro':rNl WI:1trlcih manaJ,ge,m,enl' info:rmalh:m can be 'pr,~ pil red, The [,np:iid, g[\owth of 1«ln~,D!ogy'and th~ d [,tU:liUl l.i(;~Uy:~i1nung ~,t ()~OOIU,= puting (iI!pab-i~ily me~f! ~ha~ more ~nd more aspects oJ Illtamtgerj~l pla rn:_ojng' and deds:~o.n I.nakl'n,g can be' ,asf;isited by h,fo.[n'UlJ~:~~(t'\, technology provtd ed, u.f course, t,hat. t~\e i n for,rna Hon sysh:!;m, ls develeped in accor,u;rmce lrvUh p:ooper~'y' ,dle~ined ob'ji.?C!:iv1es and princi:p]e:s. 'AUno-ugh there IU·~ f.1!1!JI'IT1'Y cJ!\t~rlllp3 and i:rrt-erreilltionsblps,; U 'is possible ~)o disOL~
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2. Offit--e s,rJ.ll"Jt~P'~ ;:;_VSb!m.," These ~y5H~~~1r;, pf~vld\e da V'~ltn"-{)aJy' as'si;sl~"an~.:e i ~h I:_'h~' w :hinctlons o~ Hl,eo.ffic-€', E~mfdes, jn(:l~de~,word ';Proc(l'S&ln~, e:loc~!:'oinjc mallt

telephones, :fa_x. ~l ,f!nd user' ,s;gsi,ems. These sy.s'l:e nit5,seek to provide management \,~lith. dir,(1c~' as"~lIlrnce' -,,:,vith,t-lu~i:r'work 'Ex~miPk'S indiUJde~ decision suppon syst~m'~", re)(ped~ syg~;ems,;fJxocutiv'€ irr~~r~'it~tioi1 's,ystem},j~
•• I ~ f' ,Centrary ,ito,' 1~1 :Ull1l,_Pn1SSJ.on, ' dl ~~ grven iii.. some COJ1.51!l!JIilIl t~ anu .,1 I~QI.n.:prUi:.:~r manuracIvy I "tlilifersi the mere fa-ct of using .lCT does n(llt of itse.:if ,3:ij'lomi?i~ica1l,y' [b,ring oome',fH.~, tf leT is ,mffisa:.ppHRd, o:r trtst~lUted wit'ho1U'~ sufficient ~nn.l,ysi~ the :re~'] mafttagl~,m{!nl Inf'

Or '~fg~~i''sa,tion,~~ problems tlu~n no lmfil}~ti:ib.i, be g~illil"() -1ilnd IUIt'Juey' \\f,iU be 'w~sl~d., Examp rles abound: the £'4:8,:m cow'p,:uh:lt $},-S'lem, d,evelop.ed, ibv' U;ue ,..if ~,-~~._.. ~~-. . . . = ··"1-- ,,'!' ~C·--·"Ii ,~y 'ne fo ,-" .,., 1" an:, [;iTI~;El':rp,r,!~,~ (_~'!!,.Ul(J_ C:'" -~'.;;:J 'lIN,.t..- ;h·.was:- • So ul( G.· overnmenr,·_·t- 001 use 'b., 't1J..·" '",~.r,l:'Iill!rn.lng id 'C ·,10.. ~~-,. - ~~ .d·'.nscause u .,_~'O~_:i .... JI" .. -",I, I~. _. ''f'I'CC·· So", neecs, i,!,iLC' '[JIi. 'UR·"[j>C: ~y~em,'f- u,r... comput-. ·-~I~' ,I-.·; ,,,{,1!;.. . :__.:;j ~~-~ to. _.. _., .. .Jl ll.tn,lil~: i!l... .,.: ... ·1, (iLIIY, nt'lL,meet ~,] U~IU":'.
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erislng Ithe' 'StO('k. 1E'x:chau;gt1' 'whic'fl 'was Dna]!.:y aoorul[l(l1ed

becau~ ~t ~n~tdot' m,ee~:the Stoc'k 'El~(;hallge';s r~q_i!.dfemer.ufi~ the .,;Uffk~n~,esnd. ~ n a huge' t"'OJ;;t: Increases ln the L1BRA pr.oj'~ct'~ ,a, ne ~wu['k of compmers designed to

(ll~D, OJs,~of

£~OO.m

provide Urnk.ag~ rum criminal justice sy"5t'en~ in the UK_ the' :reven-lun, to manual, ~be s,y'$b~~s ~'he' by manufacturers of Pal'lluIr.Knoll fUnlihiru' ~nd so on, - The P~r,k~rKnoll e'xaJnpl\~' (If pll:rUoo~l~rr ~!i' :inh~·f.,~'St, because ]I' ~$, an ex~mple I~fde·' (JJ,lllt:omftt~on prod:ucifi,g: dt{l!ma~k:' e.Hl(.if;11CY. gajns. Far,ke'r 'US00, 101 mo'~Uo:r the :ni(Hll?me:n'l~uf 1'700 earls on, 111'11,~Jrtv(1'n,low control n~lmr'OTk w.it:h 15 '~ht"m..Rottr --orr ('-,om:pute.r ter~:i:!1al~, These have 'been ~eplaoed by a bnslc ~;tla:ii)w~\1I system ,~~d (,adapl(-ed .from, the WapfUlt~~ KAN"EJ.AN s:Y~~ii:rm')W]:iC'f-eby a ,ca.ro i'~pbtted in each ' pile Ot: stocks. \-Vh~t1IJ tocks :f'atl ,sillf6ci~;ndy I'or the card b) appeari' :~~itLH s a:rrn.n;g,,~(n,r ~, fu:rtlher batch to be made, The firm, is also repl9!dng modern h~,glh4e.(hno'T()gj" machine tools wifh older models. Althuugh ~he'highr.t:e!thn,Qi.o,gy maehlnes 'WltM'\? '~s,teF and could do se-verill dliff-el'~n'f::iob,s~~t.=up time~ we.r,e"]11hours rather than ~:he. mlnutes rsqulred ~ior' 'h(l: o]d~r macblnes, The result of these cha n.8e~has, been. t . _.~. ~.I .. ·t· .. .'... .... - .. f:' zn ..' ~ . . Il.!o ',~ '~'I " "d' ,- -" a procuc lOU mcrease 0: ~~ per cen ,~, 'f',~" '... er ,~]USu1!iI:'i.fS'.an d'·. ,ea·, I tunes ,...,.,- • .l ~'"...iI tr- , ~;'.;uuce~, rem
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l~" ,\-:;~;i!>b..., ,..,. I-"nd.-:;,r' it.h:reedavs,. ... NC"",cM '-V iII.li~ .. _"",_ . _" _. _. ,J 'Jhe key meral from Ihis, exa:mp~e: ls 'th.at i111 ~:~JllrHrting i,n~ffid~:n~ methods, !!is Parhr' d~d ,Pfev:iom:1ily", does !I:l~t produce beneflts, 'The mefhods and ~y:~j'!cm:;,must. ' be dght lbe'f-o;;rt" lU"LY ;a,itte-mpt is made to ,au.tom a'lI(1!' them and PO leT' ~~y5-l~11tt ~~'U:lt]]d be it'i'5~~[led unless jf is demo I!I:S t:ra'b] ' better than the best' ml anual -m(~tm~dL y The proper, pb'ir,Mned use of leI' ('cU\, of 'c~~ ~S\.~;, 'l,lLigbtly b-ene:fid!;lmbu l bt;iFIldlh, dx~not bc' tlJi;.iltnmatirn'~.y ~,C:C1ftU,~. au ex!lJmpl~' lOr a 'pioopG-rrly pl~tt!1(;l~~! successful Ie']" ~'rsl{fm, As consider the ease of 'R~d:iod,~1tec.UnfI!J, a,d,iod.'etecU~m deslgas £H.MJ, marmfactures an R th .'I,! ,Iil.)C"",1,'I;,I'r1!", -I ,~',I,I..,I:~ ,~;;;',- .,.--- ~':~''--~,.,' an, map- ' ~I·.,--~ ti Iin_ulng~ ,m,on~'i:orUl,g nd ... eAI~,en.S'l'!~i'e' ralil.g~ Oili' q lUp:mC!Ii'h" e ,1[!i;L l~au~1. ping of: undergrouad P]P~, !lnd, c~.bl~sc',[U'n.eoom:ptd!lThlY' '\o!/!,iIJS established in 1970 in BI,;sto,land has '17 ~,o~~~iml~ wo:r~dwide'. . \~]tih ,the ['([sf;phaee romm.endn,g, [OJ ,2(lOl" the firm i3 ]ns'~a]Lj.ng a stal~of~tnc~~rt 'E!lt'~ri~' R~ti.t«! PEan,n~n,gfie-:bu-s:l;f;it~S, ~yste'n7ll lhtrlt has ~o aeeomenedate a vast range 01£ pnHlud 'lype~ and options 'W h:~cb, nm~.e inv~nhu'y con I:rol, and other
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'with s~piPnGrS alna 'cu!!!n)m(tt~ re~1J,dtl!fig: ~.n in(Fe,il~d ,rus;tom,er saUs.facUon

aspects of the co:mp'Lex:or,g.a.:_nis.!;lffion~uJnt1ng~ msb. ThC[~' rlire a~,r(~~d,:y' d s.,ignlfic~mt bt;;~~~ts :f.h.)mthe sys,te~, $0 J:ar ~nu~taUoo,.These Inelede: reduced 'inv-cntorie,$,.!' better debtor h_~~nd]ing_; lower \,v,j;'urramty ClJiSts and! [\~duced m~:ttfff:ia.'land (~1.m'p~ nenreosts, 'Er.l'ors ,h!l:~ebc:en reduecd and tnel'e are' lmpn)ved, 'G"Om:m,Nn[Cation~
fl nd.

Copyr 'gh ted mate ri a

A "cl'il'ii[itHl!l'1lf.£I.'' rt·''i'nJI lOt. ~h~ envlronment in "rit-""-"l~1 '"":~Il- r~ of ~1>I'i"""II' 'I"'''"'~-"I'''''''n- ~'I;l];i:!!r':;;,:t..... tvnes ~ - __ '~'_' - _,IU _-JJ r''''' ~Sl the presence of' am '~l'iJN'JJ~e',Il~ly ~\'er~Cic-cJ;e;r~t~I,1JJ£j;ate- of (;~,aA,ge. :Mal~ag\1m,e:n~'", r and the [nf(]:ffil~,tifin,s}~~~mtS that: support. th'ii,.'m h~vc to ,learn to' deal wi~h ch~~~ and In aidapt l~le'ir operations and sy-She'm:;~ nd. the [Jwpni5!!Hion~ t:nem6ti!'lve.s. irTh order to s'1l1r'lli'\l~' and pmsp~;E'; 1 0;: tn CI~ f _"~ ranges """"ki r.1I,gpat'ce! .Ii!!!1!'~ "'h e :~J)~.ow~ns~:: 'I ' ~,yp!lca., ~" c_ IL'- it II
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• j\1'm.,e'c~m'J:teUHQ;r.~;WI, f.}'J~S uf ~Yr-ganisations fi1c;{~ gr.~~lt({r co\mr~li:ti.'Ii,!,(~ p:ressu~~. ~ 'These .,' -,J 'be 'Iesea CO ... 'If'! e lin i[I' 'witt. Sa1i1ir'bu rv 's, Asda an Id 'W.[lJi l~, '!Ij-U' i't, mav 11:1Ia'li!/' _.. ~ ,. , .t: , ., m ., ., U~ (,1, '.' be (o:mpetHior~,mom, the ;n¢\'j{ dis.c(Jr]Ul~: stores '~(W!j ~b~d such ~s lldli, A~d,i)
ff'" 1itjil ~ , _. - IS ... '_.. ,'" ,. . ., I_!!

N euo ,DUd. oth.l~rs"Ther,\'il'are Simnall" pressures in the' public se-rfo!r:, Fur example .. ~:oc~] fnOir,i~:~es ust :in~p'le,m~n.t.(-nm~1!.ll]so.rycumpelHi,'\r,~' tend:er,ing .fo\r an ~u m ~v~ir~~"Cf1~il,siHg: proportion of the services thl£l'Y :p:rovi,dl,~ and :~,ol\\"Gr:n,me..n'~ ..gil:!nci~s have in 'be c.o:mp~li livt~,in pricif11;gand crJS'~:[on~I'()I,ln order to meet ' ~'a!lfg:etfi ,~_itd ~) (jin. ~
.. F~:$'t{;'t" I-ncI~:;'~:he:f;~stcr' p~,ce of S(;Jd~~Y' ~d business :is ~pp'~l'ell.tn -.:nany 'wa,YS' ~ i

N e'W' ll1!~ld:~ms, ,~n I~:f typ~~of :ma,ti!,u-f,'~(h:Hed oods h~Ne shorter ], fe' ,~:yde:;~, g I~'hjs in hu,t,i),means t'h~lt'prod!ud' development must tI~O be speeded up" The ~'ru}'\\""ltidg,t'l, and tr:-~i n:hlg tih;;]lt :peo:pb.~ ha'v;e' rnpicHy beoQ:tl;~,es obsokl'~i~CCiUJ5e o:f b
changi:lig tL"'(.]ulrem,ent;s. E:xi'~~-in.g: work _l:;m't:h~;r,I'1I'B and pr,~ctictls :Cl.et~dto be updated ~lOn~' ,o-:r l~S5 (:onHnuousl.y 'i/O biilp pilC~,j c!lln~{n'~ i~1!,£'OnnatiGn rapk~,[y
'!(idlri.O'!(l,gy ,~Hid

'becomes,I~l!!lt' @f da lei
;;,,\If:'''i'~ ~II-I!~,~ I!.

seems h) change month by month ~iIld so ~Jn.

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'. J'ucrt~~yt 6 ,~~I:(1MJi$~1't,itl{li:: bec~:ii:se 0':( ~o'!.~,rc:rtr.~dc b~mCH-St,"faster.' h:-;apsp·,~)":

mur ..~g-~o~.~,.I~~ ]"....~;ii(-.Ti;"', . ,.
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~II ~u_'I,L c' "",,,~'l"""-r~fior""'" o-r-caeltal i!:l,fl.:!U'-I]-"-r_,;::,~'I'iJ tiL";;:;.""",, :"1''''' ~ l ~"j(-}'-rc'ld' _: ~J:il~~g ~-g r~' ~.~~,.I _tl~~J! ~ .~~ ~" ,~,,~" _ ~,lar:bt, ,in manufactu red a nd a,Sri,(u;h,urnl produc ~sand raw materials such as oil" Goal",~r)l)1iere, eh:;'. ~Ii ;1ldd]tiiont, bil:nki,ns aI1Ld :11:Ii;;Uld",l, 5en:lces opera.te on ,",,'n~ -In ,IL I'" 'u,~ ,'~ tern alt·,,... n "1'1 M-~'Li!i,. ~. ~~h
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The effed ~lfthese de\l'ehJiPmei!:f!lh~ is that there is, bliCreaM:d (o';m.p~t.itionf'Of vi~r.luall.y
,ll1;·e.ry

I~

~~I~~

have set-up' ~fii~ufadu rin,g pl~Ji\ts :in \\'af:i(]iU~ p~~1S OwA~i~ and Ch_illil!;~ take ,,,.dviiiln '~O .. t-a;g,e- lower ~bou:r and 'Q1jJIt!'rh~ad. costs ",~~'h ubvi,oi;JS 'c-on~quleoiCes fot d!'ome-stk uJ .-. 1"""1 '·. ·f·'""c·~· .... ,n,. .''''''''..... ~'·m·~ I'" r '1fO"I'~u ·" .... m-....,~,l"" ... '~ ,' ... ~I~iit1iI{i!"pl... 1,~., .... =-., .... '!I''''' .....,.,'~t '.,,0Ti .....~ ...... ' A.,. .,.. m1 ,~. 1.. '" .i':!"'''' eles f' t:.. '1:1 "' 1:...", 1"''': l,€ I;.,I,iinur..mg group 'H's-n:c.- • '8'·rhl.~\~1 ..In~ a,y s, 'I'l ,_ ";,11:' .] Insu _' " .. Lf _, . '!~"!lj ~ A·'.~ . ''it .• I,,rU(I~n.~a, ,i.n •. uran!Gi~~ '6·.n "I'·,.h· . .IS, 'Jl:~]e(o:m ~:nd 'Ci!t'h,e['Qrgil}ni's~ ~,iQns !haVI(l' t[,a'nsf'~:r,red. ~hl~i leaU OJntre~,:frm,n, th,e; UK to r
,~, ~n.I~'Io!I,

prodiUJt'f'j' commodity 0(' serv]c~'" Th~te :~, jJ :fti:rthc~r :p:[\Qbi~m wi:th the gl.ooo[ 1:1JA,ar:kMl:pla,t;e: ~:haI of vn]a.'ti[l~y.. Cu rrendes, I:iImiuilke~!i' and p[llitk-a~ .e,nvin)~tll.etlt$ '-1-- " - . ,.. ,tlOU,lI.nUI1 _'I]I'·· !'],n. , o.ue!.]-' un[, -"II r(1,,,,,e~ab!il.y, Til..., g'1- ·l.~1 , ,ma.r -k' _t_ ll~. -~ 'I" C~iUS(1u, "-,, .-" - - ,- •• Y 'd:- ''';(~ -- . --' '.. -,~" I..... , :I_~~,. . M~ .r... o~ .' .~IL,PJi(l(-(l,la.S -'-' ,- .• -...;1 ,~a11lge .-!IIi'" "" m'.-,.;; ticc ~h "'1""1!i.'N, "I',!" t- :-h-'OJ> '-I·JLof'o;.~i'-',"i'" ...ll. c-;'Qrll,....~'n 'hn'1i"'''" "')f; 'k.~.,.; n''''';:1~·;:;,_ ~_ ~~l."l=.~ . 'estern ,t;,...,.,."" M·-·' "'nvW· .. ~ ~~~~ J;l!A~~~ ~I!!.".~ ~~~~'ILyJl •. v ~ "_~=J~"II!~~i!J ~.J r"~;;!! ~ ~ U~;!IL~~~~~·
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dmll~s,lic ,app:l~a:nces,n. order to secur~ an entry :~nt:o Ihe lu,crabve ,European i .- ,_El! i,. , n,~, \-'.'C,,- ~ un e"SiL ffill:O iIi-., .. '!'iI, ':"","'-_' ·_'I·'''~''I''c ~ I' ," f' i_ ,,', Vf'.. ",I!I:'S~ Y ~. .. _.". ~;I mal, ,.'k" ,~, T-I"I:;; ,m,w~,I'~~,,..iL-,,·<90,-~' C'h ua~ :)fii'!l,!!ii1'r:,~ ;au,Vtlll,1I!1~;;li~e-.s:~tlr l~ In,;" F;'·i·~·-I;I'_'1"] er.:e l

Ind~a utilising i-rnpr~iVtd gh.Jbal co:mnu;i:n.k~tion~ ~UI ~:i" :h;],,~ic:r'(lfvefbJ~~dsg TI,1Le 'j~'mCeSS'i~not iiust Olille'W'.j;ltl:, F'o:r ~liial.1~,p-<le.!' .t'" ]an~:nese", ~!IQ~lrea~ ~nd. A~i1t~:rJjc~:n, r , J" . f~rm~~., 11aJ\"-'1,~!t~~li~hod f'a"'llf'lri£l;\) -1-111, th;a U'K 1ffl:'i1".i'11~'inoi.'t ,'!.!!!n)" t-,~I'_V;'S1,I['0,-~,~",,- -:-,~1"Iil~,I,--;~, ~U1 , ' 'II~!!;!! r'!,L"~ i"~II-C"~t: ~e ~,\l-u!I;1!!""", """om,rtl ~~,i,"" ~~d.:~ . !.;! .... ~ ~~'" _ ..
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~1-n'p_.!lIO'l'~-m' .Il U.ld d1 f"'If'L;;Ii, ...... 'b'ii .~f:-i'~"?I::..,~~ t,lp'e- I"">~W' ,!ii_' '.....r:'' IFIi..,.~~' ..i~_" en I, ....... .. lIL.,~I~".,~,,-,,I:Ij ~ I[~ ....l ..~ "\;-~Jr l~1 ~11I..o: __ f' ; ~''riO' ~_ .. ".JJ, 'r'[ ~_ .• ,1
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In addrutkm
~_
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:stiI[i!jd~:i:id-swhich pe:r,me:~~:et{_~1domestlc manufactu rers, FUl:'dgn, j!.lllvesbnetU h,),' tliiu..iUinaUona]s {i.e. ~inns l\.t'h.ic'b own and control produetion ~lJtd/b:t!ser.~vke,fudlities. outsrde their home countries) tllkeS, p~\aC(l'aceordlng' to a wur:ldwi,c;te OOrptlt~t~ str~'~~"Ywhi,(,h_ considers markets, Il;"~ra't.h('~' eosts and

Ol~ ~~_OT@ ,~ffid~--t 'main~ eement ir --- - --~ m -:,-~, ()'~~~ _TI ~-"- -- -- 'C""" - - - - - ':r'iinlOO~ -~ and-

hif'!i-'her ;t1illla~ilv and 'p" J,odudi;vUv,r! ,t.;r. -, I',

'rev,~n1JJe~;~ taxa~ilJ;n, ~]]d[pU]i.li(:aI, facb):ffi. ,M;u]l:ilirn;]iliDl:UIt~operate ,procecS$ ~:pt.u:;iilJJmNou whenever possible. This means that :pil!'oc'C$~S :5poch11is¢d, Wit:h~n pa-rrtifItU'lair' factories spre,ad U'.roug'hOlll[ ~:heworld, are 'For r~xamp~'le_, 'ea'f ma:n'u:fiact,u-rer mav l,(Jca~elalblu!f~~:i1Ilten5i.vep-' recesses ln ~!owe,r ,a wage oouutrtes with the ,6'1l~[stages '~f. ma:nt:rf;:l(;h;i:re ~Gcalcd -ni~at~ the :in.teru1oo :marbt :Fbrd Moh::ifS are rolk~w~nn: this '~Iky and hiUi\"eanacunced that 'nIJIDdIl(,~ o ,[.-.~,. It"" OCffl 'w,iU 'be planned ;g',110boUy bilSCd on just five ce!liltres., ~ Kn.wUJml.in.vt:'"'Stm,t1n~ has llnany advantages to the host naHO([1 and, in generel, is a,di.v~~y' encouraged, How~ve~ 'il m~y increase UJ]Joort~mty nI~d vo,]~,ti];.ty'III t'ne 'i,.. • d-" . . , d' [;!'Utuness enVUOnUlliii:1:Vl{~, Ii- 'b.-".~ ~in:'!lise ·.·_.'ec.~~IojIOr!iS k l~iL'i.ilin In one rC(_'u.nihtry :m~.y h ,_-.ali'-e'" unme~~t~ ate d d I·.~._'LjIj~_".~.;;:!I ""1~_I',,,,-'1";,-"'],!I,!;_ "':'"S"!Il"']I~'I"'- ""_l,",;::a~[, senees in ~'h-." '~"","'Ii' ""'lur,fTV- F(;,:r ~'l'i:~II'1I:lp-~e in i.(:liJ.X~ U;M\;\/ . I~"'_";:;ol, """"' ~,~'L J" '
II;
,;;11 .... !"~ ....... ..J!~,_ MI_,_ ~,',~ ~~ .....
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announced

- ------ -- . -----._.~; ~f:ifi<~ ~o-. -' "" ,_,E;' ~~re:nC'1 .. --]-"'::--r'" rona ].r announcen'l.A1 . .... on ~~mponeH -t_suppuers, In ,£mJ~' fil!L-;;il!l!_ 'M,.'.,, 'i'h -i' ~~- . '6.i 'mu Illma,_ rt .... ......cl OOU!r~Q,!, M' e..ro-Cammen, h'ue ILld!iLn i.' :,_, ~ uf d: 'b D,· " .... h ' tne c__ man·'a;lur.rera-Se"u.:llil ulJ,llllnbJI,iiltm" an,d the tra:Mfet of production 10 Sptlfn ',~ilit,h.the loss 0,1 :lOL'IO in '~he ]'01.)5 UK~
A~' ("'I' ']~' -... """". ...;!.

that th€y 'WIt;"fC' s~~L1it!(g C10mp.i)l[iY Ulat- made ,Ro-\f,t~ cars in fue UK the \,.rj,th the' effect lba~ n,lan)" wO!f.kews 'Were made ,r.etiun,tiant' wi th a kn,oe'k=ol:1Jl e.ffect

1i'12 The dr'ive 'for' productivi,ty and qU8:liity

oCQn$·l).1m~"tS b.a,vc' 'Ui;~~:rnt ,all types that ;o'f.': ;o:"il"Q'~n'~I"''''r''; {~);r0",'10"';11 '!iO-, I:'-I,'~ y'r~ ~';I"'t,i\',h,_ ", ,~!I,,,,,~, !A --!-""'--'---o"-~ ""',------~- ... · -" U\"(r,;,o~Ulu~'1 .~'"' "'i'[rdii' strlvinu -rO,I,~-" 'ITr,~I"t'Q[ '1'!! .... 1"'~ ... ~-~~,J'" 'W,'h· -:i""'-"1 m "":"I'Il'·"'ininofr- "'lif' ;@ilI:hanoi',·, 1I_,,,"i"-'_ "~ ]1,11Jg ,qu~lt~y"This ,a,ppli:es to 'both service and m~n~i~act~:r:v.filJg,o~JI,lrisaUon:!~. .In mtJ.'fllif"achn::i.ng ,the- gre~t£st: 8tirrnJ,1__['U~snrs, been hom lh~ J ~:paru~<$e;" Tl11!~'.J~p~,n-ese h h;a~e. l(,h~l!'\~~(),POO, ~ tota] qU!l~:ify a,ppro,a~b with targ~t tlf' zero de.f-ects. 'Jhi.<; has been ~oo)trip~,ni,ed. -lean p~gduct:ioIJIJ methods which have d:rli:una ticaUyby mClIeased, productivity:,.A ke;J" .feaJwre of leatt producl:itJn, is, the use i,us.,t~-in,t.·im£ a,If) .. s;IJ:sf;tl'm$.

Increased oo1l1f~lttiam -"Ind,.'Olrc' di~mLng'

n~e

0,'

'The alm of,HT .systems is ~~ produce th e required Uems ... higJ) qu:a,Utyl ,ex'actJ,j1' ,of ~t the ti.mlle they !uc' Rqjuired. There is the' pttfc$1:,dt- of ery.;cel~encre:l all sta"g,es wUh a a di:mate ~f C.ontlnii;iOu~ irnJ,provernent., TI:1U~' el,ements of ,PT nt-e::: ke:v
• !Il!! ,OOQ'Vll[!'

t.olv'~rd.!;,g~fQ' :in,"I~:nrot'y'

• eHmin.41Hon of non-value added actiivilies e.g, the ~nte:r,nallnove:mcnJ of

c:(}mponf!nt~

• an, amiph.a.sis on 'perfect quaU'ly ie. zero defects

• s'l'ilon: set-ups
•,,",, "",. m ,~""""..., j.._;-:"",,;,~',,;,=~Is· '...," t-~'It,.'"·I·,"""" ''''f (o!'. "" ~.L!''nGI, U. .... ~,I;,;I",,,._,.M S ""II;; u, one
;I:'\Ij-~"',

.' '.[00 per cEnt on ..ttme dlel1'vede!'!,

oonswmt drivrC' {(Ir. l:rn,pn)V~iment • de~nand-'puU tll~!luf~,<;h.tre',!,

• j']

Copyr 'gh ted mate ri a

lnformatlon data and communlcatlcn

,]n ,~]~, utt ~he smallest ~]"~nh;alionSl management rilr.e':~r observe eperaflons b d.i:rect~y. They' a~lleJtitlpt '~:Omake de>c.isio:l1s p~repa.re :p-h~ and C~l!'il[lO~, ~u;tivilties, by I1S " ~'~ , ~ ~Ib. IL~" ,'b~ ~"' f'" "~~ ,,!Or.m~.,I OOurces = ,f"""~ Iex_amp,e,~ t" '~ie, f "'~ ' "" ~ ""I 'I!., U.S]j,U,,g: WUth :I:FiIJi'o[mi'h.~O(iI'i, lie,},' Ctln Ch.}ILa[il, "rum U :!lUI"
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such _ a _.. -

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1:,e':~eplH)r'lle',c~~,Is.. e[lJ;;atis thrr~''i!;igll~~~~d contacts ,a:nd:50 (m. 1'd.tl]1ag,e,D.'U~ld: faeed by ,11m. are a~CieleF'a,lingr~,~e'ef ehange, an ever mote complex envimnment and, ,~~~:lll,g~:1!.f2.~r 'by col1t:5~d€~'t:~~e' ru::er:tai:n ty; ~~v~lsj' u 'hle~Uy:..ntami:lgern should] be' ,ab]e tOodefine [he I:ype ,o~ imorrnt'-iUon the,Y' require ~FIJdthe MIS should be ab~~~' $UPP[Y it In. p~,(.ti(eJ of «),lu,,~el it: dces :not: happen 10' like this and mi:1:nag,er~ave to use wha,tei\~e:r i,n.f.o~ma.Uoti'Lis a;va:i~,i:1b:~el h from "'i,~,llat~ ever :SOUliC(!'" f\;S, Drucker said:
J

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.

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h-. processea U;l, some p.roU,u,c.ea m€'~si:lige or :repii):r~:w~~u,(;' 'IS cC!:nvoen·· ·j..i·"'·:,-·"n-·--·d...:':m~u m oe .man:a:genn.e]1)l uuorma.Il..I.on. 0.. ,~rbecomes uuorrna on.u lLl. is ,·1<="01' ":'-"H~""'" ~.e~',.~,: nona y ~.. ·,,:,-,.:i···,·,,-b'~J·":, '.,'./~ '.: ~,:~,t, . "".'.,",-.e·~;r:·. '1'11'1; d: ~"I!'(!.I'.rNQ·d: , 1l..'t" ~:I'l;i!'i·r'Bf'·'.:·p'~!I!!II~' 'I[io ill:! the :~~.;:"~!I' ho dete I Ull,i"I.~ 1 ~"'L'!.' ... IJ" w ,~,"I;J' _ .I,;T .:.' ,;iL.~ij.·-h.u . £'on.F~rl I'e~ I' •. I ~~n'., 'i,~"" ~i;':' W,I ~,~~, ~ir I.i!, ,[,;;; r'l"l",~!' oom
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The rOm """"en'll" ()f ~1['IJf:orln#l'';::nJil ill! an t'li:n,J"tI!~1I!i''''''''I'i~'Lr' sense ·1'.., al ,5IiL•. ~t.1 _~ 'm'("/"""" ...·')'rnln~,om ...· and ·~~I'I~~. 'If .. IIJI~I, firctil~:than the frequenl use of thls eommon word. ·wo~.dds'Ugg-l~st. .I~.1~o.rrnation :us data IDliJJ~ ha!'ve been :i.n1t,e~:reted .1ndJ iUJIlde~tood 'by th~' mdn.~~n~ of' t:he, m~SS!lf'"~'. -'lIT IF'' a :n wiU 00 in~!:ed tlhat" t'ne U;'iit~\f'not ju~~ tbe ~e,~lde~ . :i~1'~rol\i'~d t:be It~:Jil':~{OtnuHjoin 'i, in. o~ data in.to infurmafion. There is a. prncess ·of· ~hnQght. and ·ul.\deTSt~Jl!ding involved and 1.~:£oUorws tbat a :given ..m€~;s;~·,c.,1i1 }li;1Jve din.~tt".rnt m,t~~:ii:ings tiO' dif{~r. oii~r nl"~}n'l- '~'i' also J:""'I'iJo"w' I;[L..,. I' ·d·.,.~,~ ~..~'II..''~l" 1-" iI1' "'1'W'\1!""~1 ~~, mrnanse ~~ _' ~ . "'.. ,r: !iiir"~ W J ._ ... ',it ~blJII'
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tains in fonrit~Ho:n. 01:" lu;st processed data, A(;c0I'd~['l[,glYIit is, ,.dt~1 (~U' 't.h~' roducers p of reports and rneSSiiJges of all tyDti~Si to be .~.W·fIJFe I~f the. u[\ie.rls re~wh\em,e:rd:E'I' . I;'""'_ ""1educil:ti,olJij. pos~~±on. Ule' or,g,D,nisaiCiJon" :familhu1t.y' (or' otherwise] with, :Ian~age' in, and l.lum~IMCYand ~]l~ (olll~.t ~n which ~:h~' ln~~~g~ be' used ill, order tiJ increase the HkcUnood. of"~nfo:r.lnali'Olil ~hitg derived from. ~he:me&sa,g;e,

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In summa.ryj ~:rl!.fn~.f!1~;t[on ~.n,O'w:ledg;~and IIlndeJ.'sJtalndj,1n g: ~:hat:is usable 'by Ihe· hired·-iernl..,_,._.._ es '-n-:,:[Ji~-.-Jnl':'··nd.~ '~l-s S!lJrpI',I_~va.ue. It 1,.J"I\-~l~·1 II the rt.--C~lplii;~n It redu . Ce:;; lL.,Ce:!lII"O __~,y ilL ~,~,a._ s ~·f'-~I,··:·'_ 1-;-1':-c. ,lmuS~, l~ .llll(l C"-:' Ient ·__ _ p __ · . -. ..mg . "I "d-' ~ - d hicl .. _" 'b -o some thin .no . ,1)"J--iTea y kn (fwn. ~rn." \Iii ~.J ~":I; OOlJLld no l. '_e pre. dl ..re.,.;.,. " ~l'Ii'!SI'sa,g~.r ,lc ~ d ]f' report does naif 1:11.I1V\1& 'lh~e' attributes, m~, as are rr.dpiCilt :is ,o@:tlCe'rrn,'e.d.. '~t far (o,nt~~i:1L~ .1.nG'.£fily da.li1, not i~n:ftt),r.r:na,tI.Qn. ThiS hI;~ (.:roejiiid point til ~n~Jw~ys fldly appreciated l,:y'
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• Ali: ~~I[~id ,i.t] ,p~'fmll!~'()rlu,[g«uri ,cr~r.,rt:roJ'~ providing ~nJ~)~r,l:lla,tionbout by a :~ltlo.r,mu nee and the 'ill"xlcnt of devi~J~QIits hum 'Phltnt~EldJ ~~v~~_s p~r.fQ.ml!]:nc:.a:I' .of maIMg,~m.en'~ be-Uer' ~bte' to ~mi1t.ro] oper,r.Uon" are

• ,As ,111 ,lUi-'.fmSoj !Comm.rmiIfYltiO'l,!: managers need to knov .... a:boilllit dw~:~O'pm~nts\o · plans, £or~cast'$. i:m,pe:md:ing 'c:hmlg'es and S() on. • As ~ I~:rm:t,!ory' :5.\upplen'lel!~': by having hlstoric-al, lnformation abou t p~w,for;n;m:noo'.
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2tS 'The value of ~nformation

,·-~'I,l;_ I~.t; V,,] uc-._.~.,~J1es ~rom, t~1~~ '.'-" ']iiIile L~.1;1-' Col i~ I,l(g.e :I[ ~,-,-.",'-:!os ~' .,' -- -I' j,iI'--, ~ V,I] I' --:_I'l{> ne -v -" ,I, ';i·t· ~ .... ~"II" •. '-' "~I- 'i, ,' ,~,:'i""'" e_tliU!s~ b ']I ~'i\,._ "l!nllD.rlna- .. ,t'~ "II\,._ "\, ':;Ii" val ~[iI~i@ "·:'i . ' " S~~IIlC'[C-O:5 0(--, d .. '~.I,U~ .s: .'. . IOn vClng " 'Il,.~, ,tll .' -,t f Hili d [OCiS;10n b er-h->li1 ..fOur mmu ' n",o·,·-I,·.... • ]'lI-~liI'l" the '1n(·.... ...tinn Th ",~",,,,, "'" ..... nd ..·~'1 't'l"""-'S· ~im- ,th""~ m'-~li·~ . '..m '1'" · -,.~i' .... 'IJ' - z,', ,~n,1.i- __ infur.m iittiU""n .iiZliP earl ·I[~_!;' ~"'. ~,~",,",,,'I ~"IIIi1i~·I)(~d "".1"" _,. _~ . ~.l', L~ ~ , ~~_ , ,",~o:". to! a]l ""'('~,,~ti:,'i ' ' ~-"~, I""'" irJi'"'''' [""',~:. ~",'"'ILu I''''' i'n'fo''.:r':T;;'-;> ~:i")'n- [Jiltil,~"r"""'''''''''pl'f_;:,'l'''' Ir1I.ff~ifm''',l~'on t; be~t:.e]'inJom'IJa,tiOr:L, It: :m!1:1J1'be' ~bI;!Ut;r']rnfQir.mac()n !but: [only i~ it improves lile re&tdt,.. ll:1IJg' dedslons, ~~h,enij)l~iSie' has no value, j~~ ]1will be seen. 1:'h~It.J~ID~'e ~I,g/;!hl. iii;l~~ris all i:rnp(l'rl~ nt, D~II~I a pt ure, hall.Hil~~lg.. the c ~).['d.i:n"g,and. Poo(:e"cssing._.by what[ew~ means - incur eosls and do not prndnce ~r'·',"-'-, " '-I,-t· r·..,. OIl'1'Y '\\1 ~ [i-: T : .• 'tI Ai -,··d' 'Ii a!l;U~." ,IS "-. -:' ,'--~' nen nara are ('onlmUtr:liI,C'_ael;,~aac un 'dlerstoea-;-]11'1, [' ~:h-.,e;,rC(]lp,le;n,~iIR. l),' ,. :' "-..' . ".,: are thUf~'~ransfOlrme.d, into i~~fon:l:m!n~)in value ~i1fH]Y. ,a.r~s~ pm,v id:~iIlg ...thill ,_.~ 'th~[~ the infermation is US!2dJ 'to i:mproVC1' or (nnfirm. deeisieu :~~ling'" A typica'~:Mhi't;ionsh~'Pbetween OOS,[~S and villiU~:;;is sbt~wn hi fib7.JJJC Z~,.:t. "Ib ensuee 1:lILA :~Infurn'i! !t;!t1n d{~ri 'h~ve 'v,a'~~e I, a 'me~nS cU\n$id~ri;rn,g: both lllile j~$(r - - d , th '~'...- -t-l --- Or-- uttcISw.lllJl.:,m.;g: d' ,ilEdJ,1L ~--·l'" ''T'h'" :IS sumsaansen~_A· m '[" bJ e ., '1 • J[.,'.~ .bei _. - an Ii-, P(fti"Jtl'f!!m~ wu ilU. ,l. ,1.1$ "-, .-- - . -" .. .il[ .. z; :U: hould be app" l"e[1Jt' Il'~ ~ld$ s.1;ag~ ttm,t. UH:~' s ,pri.m~:ry· objt.'"C ~'hl~ of an :in:f{n'm~,tio[i!, [ ·xied~l _'"_ -,the SCll d e'r of ,a me.so.ag!e., it; ~D aeh~C'!lc''u[id ~Istail1Ldhl'~ bv t:hc. :red'p:ue:n t~~,F." _ ... ist 'c' .. ~ .. "~-- ~ - of ... th¢ :r.ru~~s..~g~ Ith:rvu,gl1 l'h~J 'Undc:~ta,n.dingtu produce alt~r.ath;ms ~n deds~on ~lid b~h a,viouf' ~:nur-del:' 'i:() (iIi'e{-l~'e 'V~lu.e',.'It) do thiS.. f~e. ~l'iif()tm~':~on spe-cia'li~5tmufti' (o,n.~ sider' th~ d'iLa'r~deri5tits '"Thien :n,1a:ke' ,i:tl,f:onna,lit)liIJ rel,~""~nt~th.e' w'ay lnfc,:11,maJ~~on is "'- -- """-- ...'.......ie- . , .......A 'h..;N'-~ iI-'h.... m -In ...".~,. 'F'~'~(;"".•",'... s,u' ,.. ·"".... ""~L~'U~~ .",t""""rm·"'t';io'n.:_,;, dl......"il-CI;""A., iI,~I~I,v _: .;"Ii ,~V, Lt.JmuilU:.,[ll.L~, t"'d ~:._I','U I,u'~'i,i il. ,'E " .. ,...;'ili(j""i· n;e....,.. ..... '!f"" ""nd' ,Ui,~. .Ii •. i~l;j
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[-I"'''C'"'''''m, _a'Lo."_", , ,1o'_1Io1! ""IiI~~'''''''"'!' ~"I~l;;';'".'""y" d>!!;t"';'!';i!",n 'po,.,:lnll;..-" l"'l' ""'In,,' organise~111ul,., 11 ...ii-O''''ln ~'I'I'p'~p,lll·"'!!I'!>:, 'l'1i .... ed IL""ol! . oJ] J.I" ~~ 1.II.GIIiii n I~~ H~)ni~no]'der b:,)cl i~T:'ld lmrtlnnaUOIll ~Xjrld.]'y w:h~re.t. is, required, i
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aJl:though modem, ,pro(~s;~ng m ~thods ca n produce ,~cruri!lte'l:lillor.n]{ition v-ery r"lp~d~,y;Delays in da M, ,gather,ing. proce.ssjng 0,[ le:omn.r[ln~CaHD.ll e~al1Lra,nsfoir,m poteutlelly 'v31~] :~n!Qr,ma,~ t
"the need for s.pe~d can. conflict \i\ritb lh,~ need tion :in~)owo:rth[~s, ''if~$te' papen The U'ruing, 'of' :r(;~gl";I~ produced lnfcrma lion is ,fI]~O itmpoli'ant. ~nf()rm,ati()n EH'l]Y' should he PiiodiCu:~ed,~t a:' i:;~quemc.y w:Mt:h ls ,n~]ated t,~, the' tY.pl~ of decision Ot ~(-lhdtylnvolved, "lbo ,~f1lm r¢p~)i!t!i!i at~1produced r(nj.liitJe~yfiji: qui.r-e aJrbHr~:ry in.ller, vals ,= dallYt ~~eeld.ytmonthly and ~f~()(Jl. ,_ wi.lho~t. f.eg~~dI~~)tbe time t'ydi? ths a,cti.v'i.ty i1i1\\'ul\i'ed. At IUpll!',fat1onaI, [~\\'t!'ls, this ma y mean a :require.ment' .£Oo,r lnforma-

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to be avai~[\}JbIe- ''1ii,irtl'IaHy oo:n1t.i:rn]01llS'ly ,_

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!kl.y on ,a \~DU sereen _, but, ,11~other 1-"i."'~I..... t-.~ '-b;:"~'p-'P""'~·'p'r.",, h;~fI.~;,·;b sh '"""I";II)J n te 1....,. ,.~,t.~b_~~,. .. L ~ lli.i _" 'y, ,u~·
.. "~ ~ __
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l.!"!

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01"1;1,

d~lEnn.in(id, f:ii'rlJ(~:re~,y y 'll1l!~' b OOI,"v~,nti,ofls o~ the ealendar,

,2'.9.,7 ,Detail'
IOOI,]lt~li,nh~ least amou nt of dchrij eanslstent w~th etf£emve t ,,,,"'l.,;:;'i"'''' cter mile ,~,ri '" ,,,,,...,,17*':1 ;::,t~,;f:':r'~I!f~,.....O[·E, 'i"Ii""'Cu"\~""',l:"..'1!" ; ,I,~,~t'- '__ I!r.-I,.~~ ~!~,~, "_f~,~.,l~~ ~~"i'~, ~,Ol~.t. I,~ ~ \_ ~ F·L "'_o!'?Li.~~~ "1"'" ·"·...,~·r""""'''' ·1'11lI1'I!~ tlnu ~""n '_1 i'';-"", '.-),,, 1,.;' 'l'jol"""Ji"''';~[ d~'r''"'-I''''''I~''i"fI''' Tl .•-i.... ~......... '1~ YJ ""~'''''II ""1"i'l·,~~ld ·1].Ji;..,.1L J~~ t_. n.r·)!'ii",,'IL1 L!t~,!. "1'.,1"_~'l. ,~ ':"'J~ "~;Il, -~~ .... II'\._·~~ _ V'iIJr::v with, the level in ,th~ organ~;ti,o.,,; the- hlgh(l!Jr file' l~crve]~he I greater;' the: degree of compression iI1n.d. sn~;~:m~lriSs1'ti('~nr SOmi~nf!;~,~~ j~£(I(rm.atio:rt,:p~mct.da~ty ,~t lnwer' 1~~1_s~, 't~)be very' det~~~'edJ be ~~fu~j' but, t:he general rule of a5 HtH~1 :P~:)~~ ('!Ji]:5 h) liMe consistent w:ifll, eff("ctivle u~ must alway~ ~:pp.l)~. Be-cause oJ the need b) be conCl:S!e and, to dJ~fed atten t~on W where H: i5, needed f!xft!,~limJ :reI'Ji~rll'~g'is, .fmquen.t:l,y used fur (.'~,:n,tn;,ll ~111 £of,ma,t~:m0ll. Informaticn

dloQ"'~c:J'~""n
·. ..:~~, •• I~.~!!

should
~I

III,

"'!I"iI "" 11.'}"li' gT " .'.!' !I,~ ~-.L~.~

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t~~(e.ption repo rt~~g is ,a "system of ii\eporting wih~(hfociJ~e~ aiUe!flth:m

on those

hems whewe perforrnenoe d~ffers ~ign iii('Qn~lly'fro m ~tH!i1dard blJdget~. or

Copyr'ghted materia

fi(]LJre 2.4 Budget

('C'Ji!U'.(!: .""",,,"' .• "." •••••••• "••.... '.. ,..

e~dg~,tfl;old£'iJ _"_".,,.,,.,,..,' .

,_"_,_,., ....

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.~- -.. " i:IIC~h"lll'"y'1'~~I ~

lypkalibudQetarv
(io!'iltroil ~'eport

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l)QIN"fI •••••••••.• ,., ...

ACtlJ~~ ~c~~ityIle~ie~
..

kC7'Cunting peJliod ••••••. "

To be tIDs.[lM[' ,Ihe- :ma.n.a~t iby forms: on.

in.fo:r,mUJI~onmU$'l be ~r(ljns:mUted by means of,~'L'omi:m,Wl,tc!;l't:ion 'Process.., CO~lIUicli1'~i,O'n involves tIle' :int~t'Ghilns~' :f'ac~s.!'1:bou\Shts~ of ,~,"",.ll,'I.... jud \f".!~,I1~ ''':;,U,lo:'!' '"~ Id-:'l ~.~.,.' .~ ....."'~iIJ.s ",U ~.. ";I'~ !I;;,,,-_ .s. ,'''p....... an ""P'I·'.'I!'O~J")"i"'~·and l .I~G ·.... '1i!Io1~nl""al~.n.i!', 'pr""';i"!-·'" ,~,~ ~A',;r 'L_Gri..G ,msuv ;r;tn'.'''': '" }n·~'m·~,'fL~ "'''''~;'Ocn : 1;;r"'-,""c.'Jii:! '....... iIo""i.,.,. .. j;.~ "~,.' ".''!l ." n,i'1iiIJIE' Yo.

:f:tlce-t;o-.fa.cec,onver~lioms. .. h."ilepl1lOJile calls, lu[O'rmat and. formal meetings, conferences, memorandil;, ~letlers,r' repores, ~[lbl.da,tions\l' V,DU transmissions and. sn

Face-bo-face' (Iommunkatia lis

• 'i'r1tetviews • f'ofJ1ma I meE!tiflg

ViSlial rorllii mu niC:tllltOfJi5, • fi~ms ;and :slltdes

• i nforma I (:ontg(~

• vnde-05
• cherts
• post~r~
O~,~II comm\.lf'ti~ca~iQn.$ • f.~lifl p,hoiJiIe

.. video,~'eleplhoill~

• t~llk'5 afild disou$'s;ion gro!'!!ps

wrriltten '(Jomm u nit'ati(;JflS

• e,:rt:ernal mai ~by lette~'

• int.enti31 rnai I by memoranda • booklets aii1a ITIJaln ual~
• s;t!3t,eme'llrts .' . '!o. ....... _........ _ -'JI~ IT'~II"1:~~iiiji~. ,,!'eV1I .).e'I,!<Gr ~ i"~f'ilili'\::iin.: ~~_·_,.:t'I'-~~ii".;~r • ! II!e ~[:I"-_ !IIIG';]o,!, ~ -'d . "", '!;rIIL ,:5.: "",Ill.' Ib,II illl\l:!l;iI'.'IiI~'

• pu

b~i,t: ddli"eS's a

:~y,s;i\ems

• reports

E:I ectrofi i'e communicatnons • 'IJ~dBO d5p~i3yS. uSlingl e~e(t:rOnJi c maill

~,emdiO
· '!U:.~.._lLJv ... "- .. alLa et ."-1 .. C!n ~ ' • ......I"'!oi'.:~~ni',... d<r"i;~~'-_:.i~h'''iI;~gi.'il' i r..,

• data transmission networks

.0;:::.

• Inoti!i'J~'boards

" f~x.

C~0l1p~1:erto 'oo~~pute~ • tele;x:

.. pagers,

Copy" 'gh ted mate ri a

'Whm 1:'~'\N~;rhe pro~~s,'S,I',B~ood.(~)(mti~n.H,Hd~a t tlon results 'w':he[',e I'he sender and r,~'t"i.'V~jr. nrc in accord ov~r ~hc ~ean:ing of tiJ padicular' m.eS$~ge'. Allh(lugh l~hi5 sounds Uk£.il';a modest ob~octi\r!i,l, it 'is. 'n!roV ,inrr to ba iI:'1l Drueker,T S words ..as ,~l~""'~fe J .. , .. ,II . Q" . , U!!il\ , ~-I-., 'IilI.;!'IIll!~'l( !rill'!! ,;, as me The (:~!~U:1L,[lLe]@f rom:mtl~icatiop should be 'selected having regard '1'0 s'ud~ t~h~!ngs ,~S; the narure and p[]rpose of "the j.n.fo]"',ma,tion.,1 the. sp~ed,t€q,iJli~,;oo and, ,ilbov!i aU.. the ['eqJuiremeuts or the 'U~e:~ The typi('a.I, QU tput '(ji f(~iU:fIHd irllJo'fmatl.o~,'!l :~:y~~emsJs a printed report 01\ t~lbutation_ These h~v'e theii;' 'lU~es,I' of course, bu t there 105 iI:"(i';5(ftlili'chvidence that manv ma.n.a,~'j;[:5:t, $-p.ed~.I1 L~t:SL'fi'io'f' ,1{~vel'~1 e V 0]-,] r.. '-' obt~i:n.m,()~t of t helr In (U.:r!il!1 Uon aurl1,'lmy; Ttu~'Y 'wr,iUj~'Ilreports :~tl~rt!!'~,yto [cilnHr.i1i1:1or relnforce i![:!)St:~
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2,.,9.9 U.nde,rstanda biUty'

U[[ldef5h;jJr:td.~ibinty i5 wha,~ trausforrns da 1)iI~~nto :ilnJonua[Lion" :~£ :~.nfo:rmaf~o.n~s the :lTU)t lurn.de<ts,'i:ood: i.t cannot be used and thus (~n.no:~ add v~l,u~. ,M~ny'f~ctors ~ff~([ un{II~~r.slll,nrl,tlmlil~y :~nd:ll]di~:rilS::: ,A. .P!l:je"(~'I,u::e-s 0.1 ;h~',~.5er.Som,~'people prefer information :~nthe form, of pitWJe$ and ,graph:s~,t) tilers prefer narrative, Sm:ne' are happy wilh I ~lIlt~!i!.t~clll HU merle p,[i~~:n'!(lfions and 'whi'lst ot)ne,ndo not understand t~:lIlCn'Il. Research shows U:la~ SOI.l.Ul' people absorb OO~it~[,e'!!e fads in de'~i'l wldls't" o~,heI8 {lfv,a~ua't~' :sihl~,ti.ofil;s. as ,~,\,\dlo]c wHh.1Hde regard. for ffildu.al d~~alil Tbis v[~u';uabilli:ly meaas t'hat~ the saill1te,n:U?'Si~lge''W'~iH i'n,evitably ,r.ec,eive rna I'~y :i~;l:~erprtil'I:[} !:ion~. B. Re,'J~'£\'Jn~M'rt,'itJl(l'1.(~~tJh,ltt~{J'. AIthough Ule t~o.rkin:g of htHn~Ullmfl,e.~m~]:ry :us. m(J~ well uudersteod tlu~m~' no dou;bt that ll:Tl!~' is ext~n~ of remembered know'led.ge", ind.'~'ldii[i!lgtechnical know~.'~dg-el'nflueneas 1lllnde:r.s,t:anding~ i
U IJde~~tandimg is
dllh':l, ~

resul~of' [~:l;,e'[as'soci atlon nf me,mo(ry ~nd the

t-lE~(Ji~iv(~me"SSii,g:e-",

C ,f,rwJrOlm,~r:/iJ(lljcu;;hlt$" As 'wen ~~ '!'he :imdJ~vrod'Ua~ rae teristles itiite:n~kmed ch~ tiJbol\~' ~, umber of en,vltOtUnen.ttiiJ, J:1ilCfOtS :inI:1,iiefic~unde:rnli1:nd:ing. Tbe~e ,n
:~md,ude:' group :p:ress.U:~f!is, tlrne avallsble, trustjn Ule' S:ys-11CTrnl! ~md :SCI' on. the ~,f1I.f!tumat~:on

D. ,[ml\~,,~jll,~Et. ]'n(lo~:lm~tion ls {;:on:v!ifY'~dby means of ~ig;nals !n" l,l.les~8'e:s" These m~y be in a code (iur example .. ~1'ta~:h;t1~:tiI~lt:iGaJ notnliiOn) or in a natural 11. '0-'g' u- ;>;;O'l~ ' ' 1!I'1 .. 1;- ~.~ E'''''I''i!ll'I<:L I: ill (J'r"S' nanish ... .-...:-' 1E.~I~tr '---'lr I 'ill. ~lIt,',J,'1'-1 I ofIl,..11 ...."~...,IUi:!o;:; ,"""''''' 'u·;'nr l~~Iir~;~l I Jil!! ..... ~Jj;~ . .~llj ~O~~e.f~-~ ~~!Ir.. ,...~!r.j ''''i...jt. ,'.' '~h!E!' rd:ng~of in r~JrniHl on th~y (;lil,~ U aocol.r.n:n(~dl~le ut are mhereruly b t:iJi:Db.igu,Qo:$. ~the,mj],Uc(tl, ]'h:~tado.:n. [~:r pli~)grail'ILrn~r!!g M Ltng,U~-\gfes,can be vc~r.Y' n:mdse' but lack lh~ c~t1adw bJ rope 'with s \"li.d[iE' g. of [coficep·1±:s. ranee tlr' ['. _" (LangJlJj~lge' and p(trt~pHo:li1are of. g~~ll i:mpo,rl:cmce tf) h'1l.forn,la.t:i'c~m
,Ufil , '. - r= CIO":';'~':'I :;I iii.&:
0 ~ ,

,r.

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spedallsts and '~[\~' developed ,l~:r~h,{H· 'be.JO!w}-.

be s("~:n.frfJ>l11 th~ !ll~J\f'4i th~t m!lI~yt'hirJdg:sneed ~Q 'be- right oowm' ~nfm-, malion ca 11 be constdered a s ,S~od. Note' 'pafUl~h'rr]y' h(nv 'm~tiy of the fa(:~DB
It wlll
ill
'"10

,ro"1 lh,1jJ

to SO(;.tall ,11'rL~,IU!l;;i[~av.l.t)ur.,[,h (·J,ltl'~,l1,Clil;·n!!iI~.tCrS. j. is not

I,

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sider the_. tethtil!ic.tIJI . - . _.

aJffi;~~e,d itd~"ii[m~u:iU'n~ of svstems, r

a:!Siiii!OC~ .!D-'" -

~f d~,t11 Ctl'IJIW,r.e ~ - ,d, nrecesslna: these am onlv _ .. " .. ',f" . _" . an r"" ..., !Ij!' .,.. .", .•"
1. ...

one .".,

Copy" 'gh ted mate ri a

are 'i'l1dinedJ to, ~('Ce'pit on trust ,a numeric

&g_
J ,_ ••

"""'p- 1..11·:<:'t;:o"'''''~;;::;I.,J1 _~. J....~-""I ."I".,I'I''''t'rn~IIl,I-p'U]'"" ~. lil. ~~..1;.;.Ai_,Ij,Hi.':,U ~lw" CQmpUitin,g iPo'wer has '~ended. ~:o ex-a~!llrbat:e th.is, pro'bl~m as '1.'1as become ,aJltoo b easy to 1~la"si£y and an~lyse hu,g;e volumes of data without' reg~l'rd t,(mlbeiiJ m,'e~[1!,i:ng t
UJ

I _,

~l.

~t'ah~l:llen~~partlenla r1y If Sl,j],l,t:'Iorm t)~ tl· Pll~ '1.."","-been ... .~ri'jI'p:loved •-,The re-O'id ~:vajbbjUkl~J of. "", .I:~,~~ tJ' 1)'II;'k.! ~1J!ll~l, - , v..J ~ till.!"! .. J- '_ -r.!"! •• ~ -

j),r

'1-·il·~'I-'iI:. d- or recurrence '~ ~"Xamplel' the Ula:,_)e'n(~ ~ h.' -d 'I.~, ]!boo.- & ,~';or of d.ell ths .fmm acddemls i~s, gready overeslimaJed dlllJe 'litJ Q!Utoo rreq,uen.t p.ubUcHy. In fad: d£a~J,sf'rmn d]st1ase ,~tOOabout 20 itiim,esgreater th,1ln from ~cddeoi:1!:l$. In gerne:ral ~F~e tend, til) p'laoo'a higher p[\ob~bU:!ty on events tnat~:
OCC1l1rreinOe
&,' IO~, events • 'b -1:,., 'Wl.'h~, tne

,Mos,t people .ule' poor .'ltnt:U:I~hTG st~Ji5ti,~dans. Th.~y are u_n~l~l@ ro!~te th~' p~~l to

qllaUty.

• ~'[leilJiild~rslo~d by t'he ~1:~,divid'U~I,

• UJf'e

~.avou'rab1e to the' indiv±dJua'l rece'n:1 .Y

!lN~: ffl(~"1

• have received most l'mb!:h:i:~y; wit:h. iFn~m-:riiT" data arnd hc~,w' th _t:.,"j nerc.ei:'ve :i~:is A,f :,':.' r "_ _~"'" I!! - ~~w,e" __ _, v obeious ilim,poctall!.~' to' :i.n~~m'tiil:tI,o:npe(it1Ith~ts;. s
'l_Jl~I'!i;'-,':!i.;-:: ~-::-,:-'~r'(-. .;t~-Ut,"'" I~,_ d,:al ~,o _,e;"_~ ,Pi',' Ii!! n~g:ernen'l s 'I;!:!:i'L~
_'!r, - -~ "_~ _, _~" -

Beea U~~ of t:he' fm-~,u~n.'1 usa

cQmmOnca,u~, 'of J]tlJ~~~

"the :~u.:pp:ti,el'Salma, U~~lI~Tr~ the data. These ind,ude:: of

of ,1:1MJ,rneri data in an :MIS.; iI: 'is :~m,'p(n1t~u'IJt:t:hat the e of 5ta,tlst~~l and numerlc data an:~'ti~ndeffi'~o~d both 'by

A_ In~@ned' d..~fi]1mon or' ctln,ceptl0n of the pmblem, whi)ch tn;'tJay resu~t"i'n t'he Jailu [\e~to iJle]lJjde: or celleet dM~c,Q!,1!iceriti~g impo:rtii!!ttl varia ble<,~" '13, :In~.dequ~cy ori,~:i:l\.a~ of dolh~: ~used. by poor' Oil" :i:ncomp'tE?Fe :measuring c and1l;~!l'~hl.~--':"";i:f--in,~~- __ u~. __this i~ .iii f- ~niiJj~Jlt 'f'j;tobh:!:m in buslness _- t:c'h~i::~~,~s_ ~--- -- - _fe"1.- ie--".r-----_ ._~~,.<y---G,_e L q L - --~-- and ex~pt~S$i,n:g' ¢s.u~~ with. ,a ,&ve:n, ':rn:n,:g.~ Orf: aL(jj,r..~cy., ,A~ an ~a;mp]e, stock r 'val:u:!!a", ~ eannot , ~~ thv~_~ nature -- ~-'" ~C!l., ~l,- .-~~s,~- -,I thls :iSo th e normal ~ - ~__ ____ ~,t~'()nS ~a uy __ -:tr"- - aFI'. ~ ngure_ ye. ,~ = __
lI:-jj"
ei

commercial ,organisations, which could] bel but seldom is, recngnised by

e-e _

€lJ.5'i5UJ]tptionill aCCOu.ntLng ~:mrem~n~s, A. f.ew peoce~t~g,e pok!!~tvatia:Uot) :Iii, iihc v~h:t~,tlon,_,w'hh;h ~~,all roo U~,]y - c.o~~dC;1U$~ dra~t]c :fltlctu~tI~n~ :in, tihe p100fit :6.gure;!' yet: Otlnverrtti:.ona.Uy thi':-; :p<ls~ibiUty :is ~i,gmolredl.

C So!b,iectiiive e.i't'Q~ caused by th-e' indu~dQn, lii, the OOlTIp:ilitation$ oJ~

on obile(ti\ff~,vle-rifl~lt'defacts, ,I '
D,

aScSi,-__:-U nns, v~-.i['-'-;'Jlll g----~-- _ ~---- J.§Ues~s.w,·.r:k w:l~hout msaIk~n," :it ele ar- tl --.- u m -,1)3, - -,~ - ~_ue ,.-l-d'tem.' ~nrtg-fid ,', -,!', ()_ __ __ ___ __ ___ g, e_ -) the red[pit':!fd Q{~U:u.!' 'procc~~t"J(ld~~a U.~l 'lh~' results ~n.:: 'not N~d I~'i\tiw.ly Malysls by in~.pprupfia~' It'"Ch:f'i~q,ut"s, methods J~ be jl,'ble h~1U-5e ,and, r~1U]OLes:sftil[y . 'par.tiru~r quantitative, a sta,tisl::h:;:1[ 0[" il(;t:ounHin,g tecbnh:plt!'" i[
is v'ibl'm'Ibi!l~ the ulldedyffin.,S;: assumptions

methed or t;eii:bniG]u'e' ls univ'Crst.IJUy a:p.p1k.abfe", B. 'P00I!, presentation oJ ireSll.dts.As, 'W,iUl '~a:nguase-'., I.] urnerie and st-a,tisticll] data must be presented .lUI It} ma:nn,er approp,riate 10 'the mana;gr~r who ~~iU understood 'because'
,tiiJO

and Umi:taUons a~

d:eady

receive
,

'Ii:i _ 'Ii:i, ,~"'"'

'tIL.1Qm_IIII'i"";:'" .L'!ii.',_ - _,"II! iiioil' reeuires '

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o ....

.,

....

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'tiL,.,,,,: .~'~,..;,

'~"",f:""!nn''''l'''''''' iLI,I~ ...... ". _

iR,

~,""~II

:specj~.In!,ii:t -(Jlf 'tht:'m~nag€'r~,~level 0:£ nu:meracy

and the purpose

flU"

'Wldch

Cop¥p"ghted rnaier!a

the da 1£1are 're('l'~lllf.·ds.o dlat: the h)rl1la I~,:st.yh~'alild ~U:lrt~)unt I~:t:chni,,'al ~Jf conh~:nit can be- bliLo,red, to: :SU]t:" E ~lnJ"~Ur~l'y ljni~COlil!i;)~pIUan" NoU:ling d~stfOyS ,alIFnanagt"j1"';S, and a)l:lIJ~ld,~,n(e. ~1:1IJ Ith~':nfor:ma.litJi.lt OUJrE~' more s,wifUv' t:hai,1IJ for him to find errors :in, the i S ca]cUJ~a dons, \lVeu organised procedures ..,perha;ps romp u.'~\e:r based, and the :iil1tL{U'pt)ir~ltkiinof cheeks will ltelp ~~')1,Yc::Jii:d;his 'Pr-ob~,em. ·~ii,,·HsoJ;IilCev~io(ll's ow ! t ,:h.t'th··d. !iiI t,~'lan dstati15 f' ,[I~, ,e!" .0 are 11,lr,,"U a,. ,j' causea bv poor Oil:' non' ' sta t "'I'!O:.~I~~,;'", ed .y .....,.. " ..... }V,I. ar u e zcs "'f"" exi5t~nt~ddln.Uion~ of' ~he ter.m.lti!Jcd(lgf ~iJ~dLlhi$ problem ]~, l'$,pe'.~II,Y' I 'riI'l',qn.r... ~,:r"IOi'\""dlWl;.''''''ili ,~~~ , ~ "Ilth:~n tM'lil'i"'"r ;~:' ,~ .,;.,I"'I-Pt'ia list :In !~~·;:;,tht~ir',.-~ ~i fil-'if .r" ~:i!i-'lm~ j'hu ~ n f"'lrm r" !I~~.F ~ .~_
-~ ---- .it.t.!I!

'!... ~ If'iC!!'!r.I!~ "-I!.I~

~~

."

~llb"~'L"'!

~~

~~J

~l.!i

IiI 1r.iI..l~'

".w"r.:"'.J

L"'l

w_

,~

iI} _~

II:.

~'_!!r..i~

~ t.!l.

q u~nnJt:.,t[vc H'L~f~:hods 'who mil,:¥' assume that certain

terms a:rrt!: Uevi,d,lt:lnJi. ~

the same ~:hin,g '~~nns. uch as if' s "~);'l~I'i~n!:ij1l :i'i'rn~)()I;hing •. ~tfitisti~;any :lljgn'inctrnt' or' ·'EOQ' mod,~r,aplp(!,!I'I'€ld i~'iIla report 'w:~thouI: ~iHg, preelsely defined iiin oont~t?

For exa:mp~,~~ f1otddwe all understand ',"\

1

GtliilphSJ dna .-[S' and oth,e:r ~~r,rns. 1j/'Slt~l~, of presen ta~:kmsare ltI!SRtu~ devi:oos, for high:n"gihtlJnStf~rh;'ll~~ummarising i~d()fm.aUOn. and ~ho'wing- compadsons, 'Jh~y am s basad on :ntime,ric data and otten ,appear as a,:supplemle:n t; to m,or,'e"d.~hliloo, [~pa[t~;, Gr,~lphs an d c.iha rts wml he. fou:nd mmfn'l f~u: • hjghlightin,g:
•

:sirnp]~' impreS$:!Oi'OS friom ni!.a~:serSor da,t.;"

alildoJ}lsing H,:L{"!!~;k)ti"t:.;h'i:p~betwl'en Y~lfj~!'b~e~.!' a.dve:rU~i~il;g: lnd sales e.g. !

bl~&:!re:51~: '~ te~1j. ~

.. cornparlng (lh~ng~s ~p :p~Ue:rn~'!; (W~:r Um;€,. e",g',n;!jediio.n, rates, ser'!.dce' Urnes",

.. de~e<.·ti11;g: ~ub.ue trend dla,m,g~~, customer e,,:g.

~~:.'m:rc'ha;si;ng paUe',fn'!;", pm,'~/oos;!:

nti.c~ua~iCJins • prov~d,iJ.lg,nV1er"lU sunlun.ar.i.;@s~ e.g" sales per :n.UDn.'t~hor :rer- :re.s:tml!~,f.. llJ.ll.,lUI t levels"
G[',r)'p,hs~nd d'IJ~:rt~ "7(}~d.d n(t!'~g'j~n¢.raUy'b¢ 1U$~~dfor tn¢. prese~n'~iniHo:ti, f :s;p~~ific o d~t.~ i,t~m:;or trends aiilld F~'I~ltk)ns..h~p~ based on ~ small ,~unou:tU: of data, P:rope,d,Yused ~hey'can. increase the impect ;j)od uude'fst~:I,\dab.Ui~Y'o€ .l.1tU meric reports .

,,.£,.., .,1<

., ·11-16··~ ·C··, om .me .. , . I.

II lUl'

lin'lcatlen SY·\r·t- e'm'5'

. '' ..... 'Iill ,c
.~--,

Iii -

G()mln:~'~nka uon at ~ rno.$~bas,k W(rV~~n;mlye~,ithr~e ele.ntent5,~ tihe: ~ouoc~, 'lh.~, ts k :mes&"'lge and the d,esti.na~ji(t!:n- and, these three eQmpQnle.lll~s, ajl~ a'II\Qays, p:re.sent' f,~g,Jrd!~e~Hi' the. s:~:r)e' sophi~'.;firBI~.i()n.(~fthe SyS'I~l~l. A g~n~rarn {Iutline oJ :f'etl,tun',s, of' m:
"" m·'-I""'n to... ....JL '-pr !CIt.... ...... '"'0' u,II_!._lL.·'· n·'·I~"',L·LA "'lP",~""",'" J."" a .. v. ~, ..... I'il , .... .... ti !r...!I;d.L e ~I '.... ..., -aJ ~!~,~.Ih1.!I,i:I .31 shewn It L~,l w iUII, ,the €,.J(am.ple of ~end:tng a l(l;tI'~:ri. U~ild ,~pla:rhd.ions, fo;llcnr'!!· (Dlf 'tll~' ~ernl~lmJJ,cJgy lJs.-edl::,
[,,-,~'. ol.IIJU ., ~o !Ut .. _ '\.l',LilJ, J,l,li.:I,J".,

'I'"' ["'"1"""".-..;0 ~IJ o~,~ "'!=

Ii"" lU(:J~:L

"'l'""!Ii'h-' ..' ..,. ,~II!

E'j;r:.(~h~~~~, messages o:r,i'b1n~rein a 'p~5(ltJj'S mlild ~nd! the 'PW(;:ess o:f ~Jl "I" "'L. h 11 _'. d kmd ~N(;{~Y~;n,g way t~aJ tne message is,wrjHert_:,own (J,t' spoeen _ orcer 1(1' IS Ih~,€' l~' ,Hole "1:0 rom~lu "ic~,te wH..h ~rnQt~,ile,r person, Va'ri~ltionin ,;\iiOilrd con r;,of'lIltion by diffe~rcn~ people can, ~U,it.rhe :me,an~ng ,~f,~, e$:~jl.g'~and, 'ili'Q:i(;~ emphasis t m andfn:r f~,da.1expresstons andfor g~suwes a,Upla,y a part h'll the e,llcod ing

Copyr ·gh ted mate ri a

lFi9ur~ 2.5 (.Qlnnrnunlei;I'!IQrI

:~y>1~m~

Fi'ljnag8r,'

~A

"J s:

r-: ~tX

'!II'

\i"/~~~ij~t,1 , ',., !.', a[1i,~ ~' -:.or' pa..mfl'!] ~i<~f~

IR~\ad:~lg ~f
reltt~l'

~'lj~y
~H~~'1'~rf)t'lfj~

~-'j,';SI'l~ 1[;0 (~~

~dli'lng

a i~tt'(!f

• Cj;wml'(~J~ lS t:}U1' means by wililich tbe in£Qrma~jo:n is, earried, e.g, ~h~' this :iJrh:~IlJ.1lA mail systp.l.n", eli:lt:ernail, 'posl'a.llServi,ces" tel\ephone, and ~plecom.nn.1.ni-C':a.t.iQn. ,rnehvorts,I' televlslon, 'r.~ld~:~],~, ;~tel]i,t,e'links and seen, C:ha,~~ne-]s re o.ot:pe:r.fet:1 a
because distortion .. ~OS:5(i"S ilJn.d delays :may oecur, Care rnus ~be -ta:il'e11lJ y tI:1UIlb M1S des;]Siri'U?r'~I'o en~ure thnt 't:h~'1i1.~rilitl'[t· IYiPe o.f~chau nel 'is iIil~d h:llv.i;ng regard to ~Ud.1nmUe:n;, as urgen.(:y~,~n5iti.v:il!y~ need €nr. ~(iIllIl:rit.y and i;lil):u.racYI' t.)!l,P~of

im~}m:latio~ ~li1d [C-Q~t en:ecti.v,enes~.

• N~J:$t;~: '~:errrn sesed illl «ml:mUmlkat~on theorv Iffp["In)!, ~hin€!' whi.dl. ~!~lU15~ filis ~ <~ -;" ~ the :me5~,ge at the receiver it"obe· d:i~.fe'rernt·from the :m~~l.g.~that went into the trans mitt erl, e,,_g~ pCi~,ror i1~~eg1blle wri:li:ngj. accents, bad f.o~m design, poor pktu.rl~ q ~aiUtYiluss or. dani1Li1'~~' actual p]ly~~kal, nolse, 'e~,c. '. DeclJ'iU.ltg~ i'his is ~he'process of ach~e~:ins undjilfl'$ta!t1llding:fmm -th~ m,e&sa~e.'.
r ,""aD

'], , o-'l;:I.lU:;:,rCl~\!o r.,,·ulri~ n !O"LI; ...... ,-~'~I '1:"t,P,- ""n"I.,. 1"",'-';;>1,-41 .~~~. and , !lh:;:~~J '",.-,!;I~'-"'~ !~',J want '1-""1 'u:;:!'IJ(-I,r' .. r;;:t'; ""'II~liI! ]11"""" r '" n ~;!i;;>IIi'" -no [I""~, [~, Iii:h""'[i!' ' ' ', ,.. ~,"',-,."",~I " " IIJlC-.:1OU,I' "1oL tha[ decoding ~s, n individeal precess, tJUlferent: people are lite'ly to derive a dUrf.e!li'~nt· meanings from t'he stlniL@' m~ge, influenced by thei:r e'xpe-,r,iencei, aH~~Tldes and val,u~':s:ysh~fms;"
'M~111I ~ _,. J . ,,~![:I,I .•

N'u]irt'~f()U:~, :methods are used ll~)ensure U~_ai:.i.lessag~ ,ate p'f(lpe.lily' te(eh!'It~, and f u:n.ders,tood;r patti,ewady if they contain U:rg,en:l OJ'' important :i,b~ms,,,
Ex~mpl~$ i.ltd~~de;

A. repe tHio;n v1' hnportant words '~:r figlu~e,

B", (lonfir.n,la,t(~lryIetters
D
[II

.or fax.

messages
_, ,!lllwl, '. ~~.__~r

~oU,mNi:ng: meetings

()f."

h~re.phone calls

C" m;ul,tip]e eepies oJ the :m,Qssage'

'll'Y'"ni!"~,I,~-;:I oil ~,r-·IlwiM"~~J

'V'.':'D'
.

_"

"U' j'

'~o!"!I";-nIi~Ii'II; n iIlI' 1~"';lJ ._'!t.-~III~_I,~,CI'

.!'II' IIlII ~

lnterv ~]~
y - ~ - '~-I ~ ---, ~nJ':n.. 'f,L,[, 'exa!llnp'I ,e~I ,fl'I~'!!e'r5",
~-

,M:ost co-mITltuniical1'()tl ~ysle:ms de-a~ teilddy uii.th

.ji'h_.ereIS some , ~'-: - -'-b.11 - ,- -- -__, ~l~nw \ufil' '10. •

l'tflt'll

Llpt_l/d.isc ,lIlt:' Irans:fers"" etc, W.he.m i,n;fo]",111i1.li:on is i~, a less eonerete ~or~ such ,~~

- '~=-~ - c. ue l','jj-:fe(H':I!,.Ii O~;"lib. - :Iiiib{~ rma

L __

Cllijm11j,'lict~,~,in:r:PiS~ i.e,

"I~'"

-, ,- ~ , - - -- ~L n~le:!im·U:~:rafll:tl! a,

,ii;tb~re

Copyr 'gh ted m a\cri a

._ Lilll~ag:e ,oiF~;~u~~8.e,. 'rhe poor use of la~J'"gt!(JJg~.;. excessive and/or

'~ncxpbb;u~d tcrttr1n.ology aad j~~g:O'n" mb~guiHeg; le'~c" a

• Vbh.... o:f :I'ne~~g,e,,~'hc'vnh)lme ma~rbe ,~deqiUJ!l.h~'ur lh~ :in:b~ndcd PUrpO,5C m,e ' f er ex.ce-~iv,e' ausing in f.ormi.'l!lion overload, c .• DjjstQtiion/wUhhQ~ding ..Fa,f'po,liitiCE1!I!'persO'na~ta'liij~reasons, :in.form1a:liOI:i\ may

bew'~~'hh~ld mii~r,e:pre.serilJted, or • Organi;sation structuresbureaucracy m:f a WlIe5sa.ge has to. 'be passed 'll:u(rugh several levels of the {~,rgan~:!ia.tiol:1lJ ~Ildku;' there is ~,1:1IJ e~~-es:si.ve mount of .i:l ch~"C'.lcingand aJl:1thQ[,isafiQ:n~,it· is ~ik~ly ~h.al~m.'es~il,,g,emk'l}\" be d:is'~ortedj!'
Eor,goth~liJJ or de]ayeu.

• JI1apf'n)!pd~ro pre~entatio:n- The method of rres¢ntatkmll should '~ke ~~OOi,.i.nt rnJth~ :['edpi~fit. and ~he purpose oJ the message, • l50i]ationfd:lst~·U1CC.These mav,/ cause eommuniesrlan d:~Hi.Cill:Ilr~es this ~s ,[I, but
d.ilL!or·I' ....'I·I~"!r !In
.~!II. [,jill!. _ lr'",1

,1;), ...... ull.J~~

l1··:~~'!ill·~.· !lll~ll l~j~~ !lJ ~ I-~I"~~ Io\"'o!~''f1i'~11l!'~ -?rl"l;I ~~JI ~I!ll.t. , ......jlllll!l~GI~lIIUllo! I IlU't:;;I'I~'~'I'~i:::I~ -~, """.<.-~I~~·m· ""!III~' ~1'''''' t.'~.-~ ~. (1 -'10''''''' , l~ "'.''''''' I:IL.. !I!-"1' Iln~l u~ lMIJIIJli.~ ~l~ I!
j.

'!Il-.~".,~~

,.,:t'!I~

"'". ~

IIO-I!

~.I!'

email .. ~:ele.phoill.,es., f,.lxes video eQn.f(f,ire.I.~.c'jng, etc,

t'' ' . 2.-.•,.9 -M' -I S··d ef'-Iinl' ' I..Ion · .'.' ...• . '" "
". I ., . .." ". I' -

II :',

.,",

r ts a '~!r:5te;m US!l!l!Q"orma I'!S~"d P''O(~iJU~S I\() p~,'~'VII~~r::rT!a . .f ~ ...oiI ~~ J' ~a9'emenr ,~u:ill.1 I€w.tsI in am f~iI1ctions with ,apprropfiau~ i nfl(~irma'lfon, based on dlat'a 'from both ii1te:mall
and e:x;ter~g~sou rces. 1)()eriabl~ 'thE!m to If'fi!~k~tim @~y and ~ff~CI:!llleocisuons '~:or ' d p;latJl~~ngl,dir-e<1~nlg and cOrlftrOmC"1g the' alc1:iv~t)i~s whh:h ·th~ O!~,e' for rtspof'1s]ble.

_.,.... .lor.mn .!l!rh.Q,r.ma_~On. !Ii.li.!l,J,m. .. ','_: i A: Ill. M:<"~c;::: usua 'I']' e.[U.cmn,\. at p.rO}l [11;15, .regwar ,l,. ,,·,'I;'I·t., ','-·,t'~"..,·~~ .. ·,·· l·ln.~ ... ilir.J rs "," .y _;(i:I,"·_',II-, '··,v"d::'·", rou transnetion da,ttl~.Girexan:lpl!e', relating to stock m01i,~en:u.~,nts",sa les, production and f so' on" H(}w~~t· ~he'lv1J:S may be rnther :d~bl.~l:ndless ab'le- t,~~~ea~. d w:l~h ,h;.~lathi"el,y unpredietabla inro.rrnla.l:.imli 'b""5pcdaUy' from o·utskl:~ "the' o~nisati!On ·~}rthat reunired bv sm.t@iPl1.( manaeement, AI~o~, formal '~r~te.m~ '~r :fit "p.ro~idJn:r,r: are r'-'~~, fhe '1 .. U 0 • , be~!:l!viomr~'1 ;C{Jllte.'d· o~ i"1~)~rn~Hto"-\~ th ~ less t~ng!b!~,d~~u-~~t1fristics ~,i(!. mentioned 'I';' ,_;0:1." t.una "t,f:".Y, tbiere !I.~. ~:no. ~"h" i!!I;'Ii .(' -P 'I __ . :til'_o·;n. SY'~' e rn in every Q.rgam " sa, l}Oli1L " t" " l'" ~,iilr,_je'.f, ner onn~1 whkh helps to ,~v-eliOOm.e' H1~ problems~ il,fform~I.~;:!t~l:·f.rtlr;J ".' .... -. _.' I .,", .,,' . ," '"
I . _. ."[ ( .' I

It win b~' noted :fr,~.uWil, d,~r.:n~li,on~h~t.fhe ~m'lJplruasl·~· the U.~· to which the this. is ,on irnfut.miitiDll is put and that ne mention :i~made' ,of ~h~' ru~a.ns,bcY' ·whicb.the ~nfo:t.. t ' . matlon is eroeessed. This eftrnh;tlj~i~,is eorreet for •. is flu.' end use of.'tbE!' :intc~ar fJr lr' ·u.. ',- w ~.. h... isi ", .-}'.::'t ..- : ann not'i'l '," mterme'., ,I,a~~ ., ,. -.~...,- ,-...s'_ -:;;-. •..:..... l~ ..~sl.mpLrtan. ...... d,',- -'. .. ~e- "','.\. '-~" . dl '. . p[r.K:eSo"Sl.n,g ~ta~~" ,., .'" '-~. ,-" .' .. Ion
1

I ..

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n•.;,;

1'"

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'I' "

",',

"

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IniO,[,nl,am cotmtnurdca,'tio:n, takes ~ j:dac.e at: aU levels k()m diswS'~l:om~~ . te'lep'h(M1e Ica~ls· ... meefin:g5; observations and so on, The informal :n~it'w:or~,loft,en. ('allied the ,., a'-'~':"'" ·i",;i;.11-", ·bll ·'~I' ..... vey . ·_·.'b.i'·I·.. ·- .oSIl. m ,~.Oit',ma. ',". gr.''-,peVlI1l![l'" ,,51ui!.i:XI . ,~e~n~ can . 1I;.'X11.'il nuances .. ""~I~,C 1. are I· I""· ,Ii ... :]1"-/"cU.mm.u nicatlens,

Cop¥p"ghted materia

'ii'
'.'

encou rage me nt I~nlddevelcpmene (~fii1!.f:(l~'ma1e ~'workl'o n

t()taJO(~'fi. of

employees
[l

'.' 'e'.ncolU'ragen.leont· I~f tr.,LU.it!!:'~'ra:r.·enc'y ancll.

sharing

alitulre

.' ·~:ti]ls :il:1lvenhJ(I1']es '.' braillsto:r.mlLmg and other methods ,o'f' ncouraging e

lnnovsdon,

Copyr 'gh ted m a1.eri a

,3j,5 The environment

,~' I'Ii" nei,'"~ U'

of syste,m,$
-8 IL_Q.'5e" ,'''' 1 -'-I'" ":'\;;1*"" Wu(,~ a._ ;I:'h"",-: ex I".erua ']' ei!,',':m~n'L_~ "",iIl."-~"'JI'
lr. .
j

In the' l;'!.'hi,cst sense", a sy;s~~m:'senvir.omluent: ~Slall those elements not ln ~he' ,s,y;s:tem. HO'~,'~ ~h]s is a very broad notion and meffi a ['" eever~ np,.ronriat~[v'{\orour pur~C!ses ~he' ,... ~Ir lr
,~, :"',: en _ _nm~n~, can if.~~Il~f:':,,'''-'.-:i ~ C_~i~]n~

""if..,' -,-,- U1 au. C~I~Jl,gL-'S:':, ,,-,~,r=

tudes,

h nas some
'.-', : .. :. 'I

or :p:rop(;;'-rl:ies (jJ~~ed:the' tiltale IUt' the 'sy~tem, {tn,l t'ihu&e' exlre]",nal el,em,anlts whlch ,a'r,'i;~hanged by' ~h.@ :S_ysh,11'rn':!j, ehaviom:r. In, ef~(;t-i' thlS means that c b 'I:h'"" ,_e~~ iI"Ji en -'\11'r I nent efan ','~y'S Em ((_ mpf]s(!,s Ji , '~:"",~,':"" eiemen,-., ts with 'v'jt.'·'l" .,~ '~'''' . ._ "_ hMI lo_ men II:. , ,~ 'IiJlt"\\"rl!' _,dl!IL _unnmem Oil, any svst '!'" i,!llliUi~ eler

behavlour

'. ccnnccnon
,",'i
'I"

=".:

I:

"1

or

."

h' re 'I l-1", ,a!~Gi:n5_liP. ,

='.'= "I'", I ,'1

,d,

,,':-

Som,~'~,"f the ifllJfluen()~$in tl,M~'eri!v~f1Jnm,€nf hich may aff~l' the organlsation Or be w ~fJl:.c:b~d by ~hif;;! [;~rni~a.ti,Qn,'"$ ,a(:ti,Qn~or outpU!~_ 1 ,

Tnt' ¢1iw.iroril!m.¢~~ di,v~De' ~ndJ ]~,r~wly s,~ti(, Figu_r~' 3.3 is, an ~tte __ to show' is mpt

'The oryarli~ation~$
elF11~l~or1!men'l
Gelneral :so~~l
'f,!,!~Ii'Q!!II!tfili!!rU,

'~oc.lat (uDtllJra'1 .'

SCO'A~(lni:{

'1~,aWilevitlfk

'.. o!Jr.d de~rar~lc

. faC~C!lf5

'.,

~.

,Ii

tjL!lt~'mn (om!Ttl!J]'n~'

.... O~~,":r:r'

C:1W~t~€'rs. ~FLdI
nlfl1'ketfngl

II

"

r!mm:e'

\
Gov.@rr!m(!;nt i~fl!lJeflif:.es.
D.1J{J03'1
Gm!IfI
I$!ii'!,i!';!$;

I
,

~nmUml(~

Copyr'ghted materia

• ClmtriJi-es and . 'preoe~u'!D'e tt~llrp," Iobbv M·',',T·~~,_. .,~~ (~~v-. ernme~,I.11 'In, :~. '\ ~·~""'-;'I'I!·' ·'1-'; - .:' !*' . iiHl1.dU,,.J:WI!1 !L . . .. .~..... _ O'rt: .. ~ X __ y . ., and !Lut: yO ~~~. to c[hangc ]egtS:laHon, or 10. ,alter' :IiHiL'd:i:n;g ~eV1eb", ~ ,", ~I Vef~ll~ '~:. r :pirt-=-~,UI~ t crea I., ·'1h;;:~ .,,;J I ,,,.~I 'I' •·." C·ummercia ." 'I '!W~n1til.palUe:5i ali;:!. .S,Xl ~,ea]1,il!!rnam .~l'!O
;I."
.a,

demand,

• 1t1\;.8;1aulhl)riU~ v'i.gnrnusly pro,mot,e' tlilei:r tU'W"Il'S and il:r~m:~m an atrempt , '1 ,gain ~f'Ilwa.td, i:n:vE':'Slmen Iby ftJ:feigu and domestic menufacturcrs or to b~' dM)S:~iO ](!!c~,lio~s-fur ,~;n.a,i'or.aports 'tN~n'~,s. I~I_S
Theide .. _tl '

!~'(}

sof'bc ·d"-II·:"-" tHt_ OJi _ oun~n.@s

ij,~,... u;~: [-._ll;

nd en\ ,,,,'·,_-"':Ii""-~'i·_.A ,,':" an . ," ;,'r" lrClnm,tmll.'!j,!Le'a1U ,--"",~""'d:',·"t··',,-~,,,· 'b'C·'·,t"-'-" een ,e..',.'QS'~il~ to u~e· IS HilCliLo.n,eU!'i.
II

1~3!11"I'a;._", h:t

;:i'i'i.:!';1!"'l;'j',~ ~ ,.~ ~ ""11'1'

t'

':~j,""'''''/r~'~i· ~');;r,;-~1i~_l'!'I!,;

.1\, dosed svstem :is one' '~h~t i~:o'l~wd from U~environmene, (]oS'Gd svstems are ~, ~ ~ sel f;.cotntai ned so tha t the exlerna:l envtren rnen~ dJt~~ not :in:fhlel'il,ce the oo'na;vicu.l r ,@~ the slf$f!.iRII\!' flor dees '~he' ystc'm ~,mt:1ue;nce el1~':i:lionment. The id~a ean ~ U~ only s:frridly '00 applied to 'm €d;llttn1c111 and physical syste.ms as all secial $ysb~U1I!s, hav~' '!iiiom.u in lut.a""iti]p..... w~~,"k th .,~';iil!" .,."..,.,""' ~,'~~iIO.~,~ ... ' 'Ii.' ',,- ~J, h '·'''''·IIIl....in "~,,O o"'· .n"I"''''''~'O:'n'"" ..""~' .~i:I,lI ,,-:;,~, 00,~~, '.. ' I, i." 'N': .'nuJ"" ..... "];~~'" ,1l.1,IL attemp 11~1are m (Ide' tOo UlnH I~],rpr'~'Serib~' U1U~ e'xc:haug-es w:iU1. 'I'he e~v~n~J!ui[lei1t fbr
l
e _ ,_, __ "'"
_0_ -'

.I!.'."._""

e-e

,~I~Ji

.~IL'I!;;;I~~J "";~,II;...'••

.."iI""jI'1I.~

"', .... ll}r;!;,~,

'j,

II. '.

Il.,

r;:;J:E"'~~'

'~ ... ,

'PuUod~,'f'sub·sysl~ms,.

A~ cxa'mpl]~ of this is ~'he preduction ~s[lb~8'y5Iem,of ~:rn,,~rganh;~liQt1L'W her-e ,(I'rrang~lm~mtsare usu any mada l-il} I:imit exebaJnge~ wi,til th,e ,e:xterna] ~n\i'i:r'O:n:m!lnt so that op(l:m~]o:nscan ,fi@w as. ~m()~;thl,Y'as p(]k~~jl~l Jhe pwduc'H]cj(n oJIHrdl 8)18·' e, t~m~ t'h12' sales aund djs~:r,ib~tion sy:stem.r ,the h.uman resources ,~,yste.iIi,and ~ O~ set as buf£e:rs between production and th,e ouls~de w'or~:d..There' iii!te... of course...

~X:ch~ll:~"g:e,s between dic~ab,]~ f~shIDn.

U]J:!$@'

:i:nt~rJl(li~, ~':f$tem~'b'~I~ a crl[i1Jtro]~ed]1d relatively prein ~

Afil open ~y,~t~'m a :~,yst@'m 'tv11l!i,cnlnteracrs 'ijf:~~h ]ls erwtronment, ,~trec,eiv~ 'is inp ~I~'S,~J1Jd fI:~ence:s.fro:m the environment a nd, bit turn", passes ba(:k.,~~t:p'u ,~Ultd in ts infhi;u~:fit'Cesto the environmene; All soclal organisabons are open, $y:J.t~m6, The wily
that ,U!,wafim~ati(l]:'Ii'-': 'I;!-!r".!!.' ,t,,'!i .. '1",.;.:"" ~;oc: _. "··0 _._0'''''' adant 11;'" ... iI,l"'.'.\I;l/'r. ...
_::;I ...

'11 ~-,'

Otg~.1lI1i-s~ulorrt~'WX~S and ~,r:ucl,~d ''''l~,ry~urviv,!ll ~ its Figute ~l4,provides a,~1llm:nlairry o.f o:pen. and closed s.ysl,e:ms,;,
. _.' _ ...... ~ __ ~; "'" ~ _I!.,~ __ ~!..I

t,',~I",", "" I"VI·''''''''rn ..:''''n',l, 'I'"' ,t.~·~I,,'..,,'IJ ,..,.'~~·m·· "... "",.. I:". .... ,""",,- .• vv~.,' ... , ... ·'£0"',1' ,)UI!I:'~,:r r;:;"~~_,IC,.,'~,,]~,,L a.rn
1~" ..:I'

Or.gan.is.;ations as open s:J'ste:ms ,~,U:e,mpt ~)O monUorr and ~n:ltid~'~~' ~n\'1m-onmental dist,umtklnc~3. :HO'W''ev'€;r- some disturbs n 0 es ,(1I.re :~(\ ;:~,~Ij; .;-: U-; ,~'x-c. ,,-41 L~, 'c ~i..<l'1!" gil< ~lr _"r.1U~ ",~Cd:! I'_~~,III th,c' >cxisl~,ee of 'lhe- o~rnisa:~i,o:n [s,lh!~ bened .. 'The d~5hLJ:ba_:__r1Ices ulay arise fr.o~li1l v,i.rtually ,any S(U.lJ),Ctl':'li:bAiln~S ~!:TI. market cnnditlons, r.echriLO~Qgy, the IttW;t ,c,onflj,c~'
'!oF!!~, -j-,

and so en, For example:

• The (:onap~' {]ilf ~h>e world l.uh::~'of tin caused Rio TInh} Zinc in dose the last
mmaini:ng ~in.00111(1' in the' 'U[K"

• An unexpected

EnUolf3b]e lHe. to h3!V~ fimThrndiiJil iF - v."""~.,.;,~~ .... ~ .... :~~v,01i<-.'!!, at h, 'ti-I" d, _ n:li'..... 'I....'I~m: .. " .. ... ..,;..00 ,t·_.h; 'J:i'- Ji:L'L'I,. aJl:e~~Ime .200 yea:~ ~~f uccessful eperation, s
~,I;.!! ., '!L;' . ,R

I,~gal dleeis:~oin, 2;(]IOO'f It).lJ'ttd ag~:in~the: ~un~'pany:,. iI,;'e! used in, ~'hat t
to,{) c: ,- :-, - ,-,.;~ .,." = 21', ,~~, ct.~i:JS!i:: IB~lI.UlL~,

Copyr ·ghted mate ri a

Open

J[l

d (\I~d

s,ys~~~s.

R.'Elhrti'iji~ly I!::Jo~d '~!fSt~ml

KiFI u.Wrl ~Filcl

{rmtro ed
~~--:i----:.'

;K~!ii'i!,~~d

p rf:ot>::11 h~~
inputs

it!1(C!iiang[!' ~...ih 1'-----+-.....,... j

efl",kolllrJ;Nlt I

~~Otdbcd

iDtHtptJ ts

th;~'disorder or ehaos in a s:ysh~,m" Tt)tally closed systems ni1huaUy d(1'~i@r]ma,tc and. t~:lC tolt~llillln!rop::(' il'1il a. .s,y}st.em, ''rr\·.i:~hQIIJ~: input'SI' ahiji,',~.ys, increases, En ~rop.)~' be cou ntered :by b:r;h~,gl,ng: hl infic~rnu~ltior" nd o't:h~~"s,!:IDru.dI fram can a lh~' s}.''St~n'';s t~.n;vi:r.onn:lent·,,,This helps t'he sy.sf,e~,u ,adalpt' and k~lwer'its ent.rop:y~ to Sl!ch a p!:'iO(~"S~s 'kDOW~ as lntrodueing ~,r\eg.tl,h~.tC t C'f!iFOp-iij,' A business ex~~p:le 'iswhere ~ long-established ~"N~dUiorud ,~Ungllir1!!,g:to old! ~irm :fasbio!ltedl :Id~a:s ~1JI.1iJd :£acin,g d:if'ficu'lil:iie;s ib,rings b1. a rt@1V' ~hl~~ cxccutlive- f.r.Olt1, QU,.'''' ~id~. This is Ilbl,y- tu lntrnduce an ,e:~e'menl' ne~,th,liel' '~lll:[OPfand help ~oreduce of Entropy is I~:h~· term
.f[)f

Copyr'ghted

materia

4. 7 Hard unc,erta:iinty' ,and softness cam mus~

'be t-aki:e;n, te distinguish

'bl?n\rOOlill unct?rtajnty

applisd to' hA~d,properties

~nd the ~ d'~aof so;rt ls,sUies.

] "''''' t, ,J "'1I:lI,~, "',"':>'n '~ f"""~"",,,~~b'\Od,'and I ,""'I'IQ, 'I,....,,~,W,-_~, ~'-HI"'~;heert .....'l"ilt'!i}' ("'I'" .IG,,, vn."","" fl.'" _, ...."": I"" ,I\~,.~!I.~ i. _, ~:J '__ .. "' ..... f'!I(:!':it'lnr-'\_ N' .:~""Jio 'U'~,~'r.t,::!; iIl'!:.Io'~~'S ;",_~'n'I('I"r-.;,I' l~, be -k·iI!!I.r'!I~P'lI ·_·1I'·1",1~ ,r~~"'I;,I,J;I,y,,, ut b r.~ ~_d}li.t~ ~'t"Ii.·lll
, R.:!I , ,,"_G~""'ll.-IOirnIL!Ii:; " 'l:U I RI,,," I -..-","'-1E-, la,lil,
,;0

Aspects of a sy:st:em, 'w'hfch, a:re fl:lea5Ura'M~' ~n 50Iue I~l~j:ecljrve''w"ay are hard l'!i,l~h.etffi'ter not they are aCCU1'am Of certain, For example,i' the sales oJ a company I'm' or
""V U,II,IG,?, ....

'" [~ ,." IE Il'1I

1[1l,

r·.I,Mr·....-ul~,l.1!~"

.'§Wr_~~l ~'r~o~VI_,

make estimr.itas,which

ex:a:mp~,'e':
•- th
_ ~:I:iJi"II""

wan, have
'll.;1'~lH
.I"_~""

I5H,

_11" ......

.lllIJ .._jI·""·llll

O'I

~iHII1,","

.. :

IIWfo,

.11, '·I~ ,II ,_WI

'I~ ..~I .,. 't'liCi~x"';I~'-I~1-0' 1

.U;11111iJI! r vo;}l[IL',~ ."

various ~~velsoJ t;'I.'4tili~t:y,a:llilCh00, ~:o them, Por

~'n.

~is

[Il~~'

(;iI ~ !ii_.l -;'i,A! ,I

p,;:.;to
IIwIlll

~;r.~ 'IIu!..... IIlII~

1!r.1",, __

,;0"'7 ance '~'h' '~C~I;I'Isl~'Il'"lll 'I."" Ib-""'~lJ;~'oU;:;L'-n- t~1 _

~_ •

f:il~' ~I~,

'~"1'!M. ,'!w!..

1f.

I"

,'iw!I~,

Jr., !!w-'lM,

'PI~ ~ 1111,111!iiA_.!I

and
~_.'':'

_,

,£,:_,~,1'I;'jI _"6ii
I!.II III
•.

'lh<,,;!rr-Q 'is ...,. :n, 'n·~ir. ......I~, hance = r-~j ,. ,·n~

__IIp,.~ .f:~,
I!;.:L ~)'

,1 __

~!Iir

'~h",,\I;,sah:~swill '
~. __ ~I~,,~ "-

_' __ ' ..

1 ,,,", .. ~ _·"I~,W,..;;,IP.i·._'

-b',,;i:I+-""-Qo.n m, and £~,I~m ..i',""li

"~.'_l_'

"iJ,;;.i!.l.11

.' there Is a 30 pew ;(-enj~: chance '~'h~~: sales 'wiU be ebove if:.t5m.,

These are known as p~bi1:i$fic' or $t{)chat;lic .m,(:'ll$l~ttir,It:'i1t.~., Although '\~r:e not' ~,.y. are
'''in 'w'haf next' '1I1.u;,';'i:r1~ s.a:~~ wm he' sah:;s aJ~e 3 .h,a:M fa;"tfu' r'hjjJt can be o'bj.edively. 'There are :ma-n::r xamples of hard uncertai litty:;, e
,." ,"" ";",,,"!;I! __ , ""~ , ~ ,_ , _, ~~~ " _ ,_ "" " ~, .,,_,__ ,,_,_, ,,",I-!!_ ~

'---~l£u,r'-'--:f>d , me,_uI,:U"",

.' actuarial calculations In ~m,ural!lJce' companies .' :f(~n1'CaSils '(!'k~dridlydf!ma.nd. on. the Natk,!l:ilJll] Grid of
• popu'~atfiionand morbld i;ty :riom-et"s~'S,"

Sai!: :s:y:sl~ms ,U'tl' tliIJuS those '~I'hlch.illror.p~r~;t~ amdl depe.iUld an. som,c:!' Ir~l~Je~ o£' .h-u,rn~n n~t,ure. The. behaviour 0,,. people, t'hc:i~J:'~~A:tion$w tffileir'objc'Ctive~,~nd t'nej1" lnotiva:lior1!~~'1C',a,fUi(]i~ be predicte.d! 'with ce.rt~i:nty 'b1ll nevertheless are of ":ritic~] t ]·'if'Iiion"'1l,'rl'(:i;n-' ...·~ ~i"l' .~e--v·:o'I·;,-p~I·Iin;I:'g-' ;'iPO:_'lng~' informatlon and 'w_.:!\.II~,., ~y--~li;;:.m--' T.I!.' .... ::;;;iiil~ ",.. ~ 't',~;i:s 'I· :ii.. s -~"'~ir-'-,-,!, _!Ii-'IL_""',,," 'U _"'"'''"''" d I~-t~." ,I, ,~'" ,l1IiC'(~.ry to examine t;h,c befu!il,viou:nd ,~Sp-OCt_5 of inform~ti:on s,yst(.!'.ms as well ,DS the -""""'''''n-'i~","]- ",..o'd stn ~1~ih"''''''''I- r;I~~m- en iio", Ch <J,(,;~JI!and 'h''''IC. 'd'jft;1v."i'"I 0--.W-~"1.I .,. U'''''!'IJ' ""'f. A ;jo!;iof'n·IW"n,s " r H_;;'.-:I t ~'!in·,I.I_ !ii:-IL•. i[;.I,,. !\.o' '~o'ft :sys'ti;eJiiljl~1' known ,Il_~ So f.!: Sy,S!~e:mt1l'Methodo1ogy (SSM) which 'i~used ln 'system d _ ';;~ ,_~ is, d,'eKn~t\:iI;.I"tn~_letai-'I ,., C"h,,,,pler' IDol to,g:eL _e-I '\''ii'1t :' oL~e[' t(!JO~~ ',.u~~.,y, ~eM'" ""'"".-1. d - m' _ - ~) lh '-h -\1 - 1 --I f '~_i!Si,gn. ~o:r d~.f.i:ning tnf'ormalion sys~~:nl''-'.
iIO,.,I~ ~I~,. 1.'1.111 _, ~,U.,~k,I,~~Ii!I',~_I,I~ "", .]' .... ,' .~,

VQ.-iI:~""'1"O.,

..

_:II~,!P-II!

~l.

1 ~._.

I~""'-~lll

1 ~llj;;l~.llllll:=l'

J~;~i

.: ~ .}r&."l~,:tUI '...

~~

._.'IIi:=

_, i§I:..1 ..

(!I

'lfY

Yl~I"'"

... .-1.J

,.,!~!I ~.

hard and S().U:ssues to l\',u:y:~ngdeJJr(~5 aud the? i :impOirtance of i'he soft s'y'S~ffm" v.irewpoint~ is that' j~ afvQ!jds 'U1in:klng ,abQu~ solvlng s '-, "b" c, .• , m a mJac~l~m~ >"!11:'1".,, ,,-, nl,e!Cil!~I1[US; ,Ie w,ay."Th -.jll.,·' -'-':':-'1'·'-"'''''--'''' pm,~C'ms Jilllki 0.11' -j'---1In"eilie mil.) 11l.J't:l'.[1, y-e:arnmg ,1,0]" sys tems 'llO betn,iJ'VJ~' ~n ,11 conhuUa ble:' and prledic:lHble f'R!1ibicu,llbut~ wheJ1'e pe.~p~t':' an~ 1!i'IIVD.I,v~d!-, wil'l filot" 'Ofte,rn :m.aJn~:ge;rs see s;i tu a lions in a narrow ~as,:iuo:n.and tlH~Y Or,g:alltisal,ion(l~ p.mbioeH!11'S' eontain
.'1., I •. I

"j

'-

'-'1'-'

.,iI!,.""

-',

,,':'

,',

""~_"I

',"~,

Copyr'ghted

materia