M A N A GEM EN T O F IN F O RM A TIO N SYSTEM S

TYPES OF INFORMATION SYSTEM

Information Systems perform important operational and managerial support roles in businesses
and other organizations. Therefore, several types of information systems can be classified
conceptually as either:
• Operations Support Systems
• Management Support Systems
(a) Operations Support Systems
Information systems are needed to process data generated by and used in business operations.
Such operations support systems (OSS) produce a variety of information products for internal
and external use. However, they do not emphasize producing the specific information products
that can best be used by managers. Further processing by management information systems is
usually required. The role of a business firm’s operations support systems is to:
• Effectively process business transactions
• Control industrial processes
• Support enterprise communications and collaboration
• Update corporate databases

Transaction Processing Systems (TPS)

Focus on processing the data generated by business transactions and operations. Transaction
processing systems record and process data resulting from business transactions. Typically
examples are information systems that process sales, purchases, and inventory changes. The
results of such processing are sued to update customer, inventory, and other organizational
databases. These databases then provide the data resources that can be processed and used by
management information systems, decision support systems, and executive information systems.
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TPS also produce a variety of information products for internal or external use (customer
statements, employee paychecks, sales receipts etc.).

TPS process transactions in two basic ways:

• Batch Processing - transactions data is accumulated over a period of time and processed
periodically.
• Real-time (or online) processing - data is processed immediately after a transaction occurs.
For example, point of sale (POS) systems at retail stores may use electronic cash register
terminals to capture and transmit sales data over telecommunication links to regional computer
centers for immediate (real-time) or nightly (batch) processing.
Process Control Systems (PCS)
Process control systems are systems, which make use of computers to control ongoing physical
processes. These computers are designed to automatically make decisions, which adjust the
physical production process. Examples include petroleum refineries and the assembly lines of
automated factories.
Operation support systems also make routine decisions that control operational processes.
Examples are automatic inventory reorder decisions and production control decisions. This
includes a category of information systems called process control systems, in which decisions
adjusting a physical production process are automatically made by computers. For example, a
petroleum refiner uses electronic sensors linked to computers to continually monitor chemical
processes. The computers monitor a chemical process, capture and process data detected by
sensors, and make instant (real-time) adjustments to appropriate refinery processes.

Enterprise Collaboration Systems

Enterprise collaboration systems are information systems that use a variety of information
technologies to help people work together. Enterprise collaboration systems help us:
• Collaborate - to communicate ideas
• Share resources
• Co-ordinate our cooperative work efforts as members of the many formal and informal
process and project teams and other workgroups that are a vital part of today’s organizations.
Thus, the goal of enterprise collaboration systems is to use information technology to enhance
the productivity and creativity of teams and workgroups in the modern business enterprise.

(b) Management Support Systems (MSS)

Management support systems focus on providing information and support for effective decision
making by managers. They support the decision-making needs of strategic (top) management,
tactical (middle) management, and operating (supervisory) management. Conceptually, several
major types of information systems support a variety of decision-making responsibilities:
• Management Information Systems (MIS)
• Decision Support Systems (DSS)
• Executive Information Systems (EIS)
Management information systems are the most common form of management support
systems. They provide managerial end users with information products that support much of
their day-to-day decision-making needs. MIS provide a variety of prespecified information
(reports) and displays to management that can be used to help them make more effective,
structured types of day-to-day decisions. The contents of these information products are
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specified in advance by managers so that they contain information that managers need.
Management information systems retrieve information about internal operations from
database that have been updated by transaction processing systems. They also obtain data
about the business environment from external source.
Information products provided to managers include displays and reports that can be furnished:
• On demand
• Periodically, according to a predetermined schedule
• Whenever exceptional conditions occur
Decision support systems provide managerial end users with information in an interactive
session on an ad-hoc (as needed) basis. Managers generate the information they need for more
unstructured types of decisions. Decision support systems (DSS) are a natural progression from
information reporting systems and transaction processing systems. Decision support systems are
interactive, computer-based information systems that use decision models and specialized
database to assist the decision making process of managerial end users.
Executive information systems provide top and middle management with immediate and easy
access to selective information about key factors that are critical to accomplishing a firm’s
strategic objectives. EIS are easy to operate and understand.

OTHER CLASSIFICATIONS OF INFORMATION SYSTEMS

Several other categories of information systems that support either operations or management
applications include:
· Expert Systems
· Knowledge Management Systems
· Functional Business Information Systems
· Strategic Information Systems
· Cross-functional Information Systems

(i) EXPERT SYSTEMS

An expert system is a knowledge-based information systems; that is, it uses its knowledge
about a specific area to act as an expert consultant to users. The components of an expert
system are a knowledge base and software modules that perform inferences on the
knowledge and offer answers to a user’s questions. Expert systems are being used in many
different fields, including medicine, engineering, the physical sciences, and business. For
example, expert systems now help diagnose illnesses, search for minerals, analyze
compounds, recommend repairs, and do financial planning. Expert systems can support
either operations or management activities.

(ii) KNOWLEDGE MANAGEMENT SYSTEMS

Knowledge Management systems (KMS), Workers create, organize, and share important
business knowledge wherever and whenever it is needed. For example, many knowledge
management systems rely on Internet and intranet Web sites, knowledge bases, and
discussion forums as key technologies for gathering, storing, and disseminating business
knowledge. In this way, knowledge management systems facilitate organization learning
and knowledge creation and dissemination within the business enterprise.
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(iv) BUSINESS INFORMATION SYSTEMS

As a future managerial end user, it is important for you to realize that information systems
directly support both operations and management activities in the business functions of
accounting, finance, human resource management, marketing, and operations management.
Such business information systems are needed by all business functions.
For example, marketing managers need information about sales performance and trends
provided by marketing information systems. Financial managers need information
concerning financing costs and investment returns provided by financial information
systems.
 M A N A GEM EN T O F IN F O RM A TIO N SYSTEM S

MANAGEMENT FUNCTION IN INFORMATION SYSTEM

Henri Fayol a French industrialist wrote that all managers perform five management functions.
They
• Plan: examine the future and draw up plans of action
• Organise: build up the structure, material and human of the undertaking
• Command: maintain activity among the personnel
• Coordinate: bind together, unify and harmonise activity and effort
• Control: see that everything occurs in conformity with policy and practise

Today these have been condensed down to 4 functions

• Planning
• Organising . .
• Leading and
• Controlling

The planning function encompasses defining an organisation's goal, establishing an overall

strategy for achieving these goals and developing a comprehensive hierarchy of plans to
integrate and coordinate the activities aimed at accomplishing the set goal(s).

The organising function is concerned with designing an organisation's structure. It involves

allocating and configuring resources to accomplish the preferred goals and objectives established
during the planning processes. It includes:
• The determination of what tasks are to be done
• Who is to do them
• How the tasks are to be grouped
• Who reports to whom, and
• Where decisions are to be made.
• Establish rules and procedures

The leading function is concerned with establishing direction and influencing people to follow
that direction, and coordinating the people within an organisation. This includes:
• Motivating subordinates
• Directing the activities of others
• Selecting the most effective communication channels, and
 M A N A GEM EN T O F IN F O RM A TIO N SYSTEM S

• Resolving conflicts among members.

The controlling function is concerned with monitoring activities to ensure that they are being
accomplished as planned and correcting any significant deviations from the previously set goals.
The controlling processes as in comparison with other three, is unending process or say
continuous process. With this management can make out any probable problems. It helps them in
taking necessary preventive measures against the consequences. Management can also recognize
any further developing problems that need corrective actions.
MANAGEMENT ROLES IN INFORMATION SYSTEM
A role is an organized set of behaviors. Henry Mintzberg has identified ten roles common to the
work of all managers. The ten roles are divided into three groups: interpersonal, informational,
and decisional. The interpersonal roles link all managerial work together. The informational roles
ensure that information is provided. The decisional roles make significant use of the information.
The performance of managerial roles and the requirements of these roles can be played at
different times by the same manager and to different degrees depending on the level and function
of management. The ten roles are described individually, but they form an integrated whole.

A. Interpersonal roles
(i) Figure Head role:
All managers are required to perform duties that are ceremonial and symbolic in nature e.g.
handing out certificates, giving a tour of the plant e.t.c. In this case he/she is acting in a figure
head role. In the figurehead role, the manager represents the organization in all matters of
formality. The top level manager for example represents the company legally and socially to
those outside of the organization. The supervisor on the other hand represents the work group to
higher management and higher management to the work group.
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(ii) Leadership role:

This role includes hiring, training, motivating and disciplining employees. The leader role
defines the relationships between the manger and employees.
(iii) Liaison role:
This involves contacting outsiders and insiders, who provide the manager with information.
These may be individuals or groups within or outside the organisation. Thus you can have
internal and external liaison relationships. In the liaison role, the manger interacts with peers and
people mostly outside the organization. The top level manager for example uses the liaison role
to gain favors and information, while the supervisor uses it to maintain the routine flow of work.

B. Information roles
(iv) Monitor role:
All managers will, to some degree, receive and collect information from organisations and
institutions outside their own. Typically this is done through reading magazines, newspapers,
journals and talking with others to learn of changes in the public's tastes, changes in prices, what
competitors may be planning and the like.
(v) Disseminator role:
This is where managers ensure that information reaches organisational members and that
member are always informed of what is taking place and what will take place in the
organization..
(vi) Spokesman role:
This is when managers represent the organisation to outsiders. They speak on behalf of the
organization.

C. Decisional roles
These are roles that revolve around making of choices.
(vii) Entrepreneur role:
Here managers initiate and oversee new projects that will improve their organisation's
performance.
(viii) Disturbance handler:
Here managers take corrective action in response to previously unforeseen problems and any
deviations from the expected. In the disturbance handler role, the manger deals with threats to
the organization.
(ix) Resource allocator:
Here managers are responsible for allocating human, physical and monetary resources.
(x)Negotiator role:
This is where managers discuss and bargain with other units to gain advantages for their own
unit.

THE MANAGEMENT SKILLS IN INFORMATION SYSTEM

Robert Katz identified 3 management skills i.e. technical, human and conceptual skills.
(a) Technical skills
These encompass the ability to apply specialised knowledge or expertise. Through extensive
formal education, managers acquire the special knowledge and practices of their field. All jobs
require some specialised expertise, however, many people develop their technical skills on the
job.
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(b) Human skills

This is the ability to work with an understanding of others and also be able to motivate other
people, both individually and in groups. Many people are technically proficient but
interpersonally incompetent for example, they might be poor listeners, unable to understand the
needs of others or have difficulty managing conflicts. Since managers get things done through
other people, they must have good human skills to communicate, motivate and delegate.

(c) Conceptual skills

Managers must have the mental ability to analyse and diagnose complex situation. Decision
making for example, require managers to spot the problems, identify alternatives that can correct
them, evaluate these alternatives and select the best ones. Managers can be technically and
interpersonally competent, yet still fail because of an inability to rationally process and interpret
information.

MANAGERIAL ACTIVITIES IN INFORMATION SYSTEMS.

Luthans and his associates studied more than 450 managers. They found out that managers are
engaged in four managerial activities.
(i) Traditional management: Decision making, planning and controlling
(ii) Communication: Exchanging routine information and processing paperwork
(iii) Human resource management: Motivating, disciplining, managing conflicts, staffing and
training.
(iv) Networking: Socialising, politicking and interacting with others.