Principles of Management

BLOCK 1-PART 1
UNIT 1: PORTFOLIO
MANAGEMENT AND IT
APPLICATIONS

WHAT IS PORTFOLIO MANAGEMENT

Portfolio Management is a process which facilitates

determining the right (project) investments mix, i.e.,
deploying limited resources to maximize business
performance
Project portfolio management entails balancing resources,
business needs, business risks and changing parameters,
while at the same time maximizing the return on (project)
investment.
Portfolio Management (PM) applications integrate all
project-related information within a single, web-based
enterprise solution. Organisations use PM solutions to better
align and manage their projects, people, and partners so
that they can achieve greater return on their portfolio of
investments.

 Portfolio Management Objectives allow the organisation to be focused, fast,

and agile. Achieving these high level objectives necessitates a variety of interrelated steps. These include the following:
Grouping: Synergies between technology spending plans with business strategy
Investment Focus
Governance: Process of making IT Decisions
Cost Control
Efficiency: using financial resources efficiently

There are five primary value addition propositions that can be achieved with the
implementation of a PM solution. These include:
Align Business Strategy and Execution
Plan and Execute effectively and efficiently
Leverage Resources (People, Partners, Money and Assets)
Make global teams more productive
Improve visibility and control

Features and functions which must be present in the PM solution are categorized
into four functional areas:
Budget and Financial Management;
Business Planning and Portfolio Management;
Project and Resource Management;
Collaboration and Knowledge Management.

 Once portfolios are defined and prioritised against corporate

objectives, organisations should be able to monitor project
portfolios through customisable views. Benefits that should
be enabled by the application include the ability to:
Select the most important projects;
Establish the right definitions of project success;
Monitor project performance against objectives;
Re-align projects when market conditions change, and
Cancel low priority and failing projects quickly.

Functionality required delivering the above value and

benefits include:
What if scenario modeling / Sensitivity Analysis:
o Compare portfolio plans against current operating plans
o Analyse the impact of new projects on the portfolio
o Drag and drop schedules
o Create multiple versions of project portfolio to compare
against supply

 User-defined views:
o By project (past, in progress, or planned)
o By resources (staff, skills or budget)
o By schedule (past, current, or projected)

Multiple criteria based views:

o Actual vs. planned
o Actual vs. budget
o Actual vs. schedule

OLAP Reporting:
o Project work by project type
o Planned vs. actual work
o Project work by project priority
o Track initiative status
o View initiative projects at a glance
o View initiatives in Gantt charts
Simulating projects:

 Benefits that should be enabled by project

and resource management component of
a PM application include the ability to:
Manage project plans to objectives;
Communicate and monitor work for better
results;
Identify and resolve problems early;
Manage dependences across projects;
Assign the right people to the right projects;
Leverage resource talent across your global
enterprise, and
Take advantage of resources in lower cost
geographies.

 Functionality required delivering the above value and

benefits include:
Initiative Management
Project Management
Risk and Issue Management
Resource Management
Time and Expense

Collaboration and Knowledge Management capabilities that

span the processes of portfolio, budget, project, resource,
and external relationship management must be available in
the Portfolio Management Software selected.
Benefits that should be enabled by the application include
the ability to:
Establish a single source for all project-related information,
Empower project teams with relevant and actionable information,
Collaborate seamlessly across geographies and business partners

 Functionality required to deliver the

above value and benefits include:
Knowledge Sharing across the Extended
Enterprise
Role-based User Support
Comprehensive Reporting
Security Administration

DESIGN AND IMPLEMENTATION OF PORTFOLIO MANAGEMENT

Step 1 Assemble: Project Inventory

Step 2 Evaluate: Identify Projects
that Match Strategic Objectives
Step 3 Prioritize: Score and
Categorise Projects
Step 4 Review: Actively Manage the
Portfolio

PORTFOLIO MANAGEMENT METHODS

Step 1: Collect information on all

projects (on-going and planned):
Step 2: Evaluate for Strategic
Compliance:
Step 3. Prioritizing and Balancing:
balance between resources required
and resources available
Step 4 WHAT IF analysis and project
adoption

RISK MANAGEMENT

With the Information Technology, although

management needs to be aware of all potential risks,
operational risk is the primary risk associated with it.
Operational risk (also referred to as transaction risk)
is the risk of loss resulting from inadequate or failed
processes, people, or systems. The root cause can be
either internal or external events. Operational risk is
present across all business lines.
Management should be aware of the implications of
operational risk including:
Liquidity, interest, and price risks
Reputation risk
Strategic risk: No proper information available
Compliance (legal) risk: no legal information about IT
products and services.

IT Risk Management Process

Senior management should identify, measure,
control, and monitor technology to avoid risks that
threaten the safety and soundness of an institution.
The institution should
1) plan for use of technology,
2) assess the risk associated with technology,
3) decide how to implement the technology, and
4) establish a process to measure and monitor risk
that is taken on. All organisations should have:
An effective planning process that aligns IT and business objectives;
An ongoing risk assessment process that evaluates the environment and
potential changes;
Technology implementation procedures that include appropriate controls,
and
Measurement and monitoring efforts that effectively identify ways to
manage risk exposure

DISASTER MANAGEMENT
Step 1: To assess risk
Step 2: Risk reduction.
Step 3: Earmark resources: risk reduction is
worth the price
Step 4: To identify Common Disaster Plan
Elements
Every disaster plan should set forth both
preventive measures and remedies in at least the
following areas:
1. Servers
2. Network
3. Clients (VIRUS)

Step 5: To establish Recovery Procedures

PORTFOLIO MANAGEMENT ISSUES

AND CHALLENGES
Issues and challenges which need to be understood are:
1) Portfolio Management system acceptance
2) Real Time Readiness
3) Conformity to override Flexibility
4) System to be for the Users
5) Requirement of an Application Administrator
6) Making it business management application requires sincere
efforts by all
7) Reports grow exponentially if not reasoned out
8) People will Blame the System for their Own Lapses
9) Mental block
10) Customisation efforts increase with time

UNIT 2 ENTERPRISE RESOURCE

PLANNING SYSTEM
ERP is a key enabler of business
process transformation and IT
automation.
ERP systems endow with crossorganization integration through
embedded business processes and
are by and large composed of
numerous modules including human
resources, sales, production,
purchase and finance.

ERP
Lifecycle
BRIEF HISTORY OF ERP
MRP-I: Material requirement planning, which was nothing but a
historical background of ERP, the motive, was only to tap
inventory i.e. raw materials planning.
MRP-II: Manufacturing resource planning which looks after
production related things. The concept of MRP II was to look after
shop floor and distribution management activities.
ERP: Enterprise resource planning whose role is very wider and not
confined to one department but have a broader purview.
ERP-II or MRP-III: Money resource planning or ERP-II advent can
be seen few years after ERP system origination which more
emphasize on planning of capital or when surplus money arises.

NEED OF ERP
Q1. Why should we implement an ERP package.
Ans: To get an edge over our business rivals.
Q2. Will it significantly improve our profitability?
Ans: It will bring drastic change once you put the flavour of it in your
organisation.
Q3. Will it enhance our customer satisfaction level in terms of cost, delivery
time, service & quality in totality?
Ans: It would not be 99.9 % but absolute 100 %.
Q4. Will it enable the organisation to reengineer the business process?
Ans: Yes by changing the approach i.e. mindset of the people and office
automation
Q5. Will it permit the organisation to achieve the same business volume with
reduced manpower?
Ans: Yes because ERP is a process by which certain technologies and know-how
can be incorporated and put into force, which can reduce and eliminate surplus
or unwanted manpower thus results in reduction of cost and increment in profit

ERP COMPONENTS

Finance
Human Resources
Manufacturing and Logistics
Purchasing
Production, Planning and Control
Multi currency and Forex
Business 2 Business (B2B): ERP is a virtual
portal that can be accessed by customers,
distributors, suppliers, and auditors.
Funds Management
Marketing, Sales and Distribution

DISTINCTIVE WAYS OF
IMPLEMENTING AN ERP
Phased implementation approach: has been the most usually
used methodology of ERP implementation
Big-Bang implementation approach: simultaneous
implementation of numerous modules of an ERP packages. This
method dominated early ERP implementations; it partially
contributed to the higher rate of breakdown in ERP
implementation. Today, not many companies dare to endeavor it
anymore. It follows SDLC approach.
Process-Oriented Implementation: focus on the support of one
or a few critical business processes, which involves a few business
units. This approach is utilized by many small to mid-sized
companies whose business processes are not too complex.
Vanilla implementation approach: In another implementation
approach that focuses on minimal customisation of the ERP
packages.

GUIDELINES FOR ERP

IMPLEMENTATION
Understand your corporate needs
and culture
Complete Business process Change
Provide strong Leadership
Choose a balanced team
Selecting a good implementation
methodology
Train every one
Commitment to adapt and change

ERP BENEFITS

Automatic Updation to new Technology

Enhanced flexibility
Improved customer satisfaction
Information Technology
Lead-time minimization: time gap between
ordering the goods and its delivery is known as
lead time
Process Improvements
Related initiatives: Better focus, reduced
spending
Strategic Direction: Improved resource
allocation, More flexible organisation, and better
future decision making.

CUSTOMER RELATIONSHIP
MANAGEMENT
Preserving existing customers and
providing improved services to expand the
loyalty is termed as CRM.
Faced with global competition and short
product lifecycles, organisations require
making accessible their customers with the
topmost possible standard of service to
keep hold of business. This means knowing
the customers needs, preferences, buying
history and potential future purchases.

Comparative study between ERP and CRM

ERP: Enterprises conventionally focus on processes and technologies,
with purpose of optimizing these processes using MRP and ERP
systems. The focus was always inward.
CRM: With Enterprises becoming more customers oriented, they are
realizing the benefits of including customers and business partners in
the value chain. Enterprises are becoming more externally focused.
ERP: Enterprises use ERP systems to integrate and deal with
distinguish operations and process. ERP system integrates functions
like Accounting, Human Resources, and Inventory Control to give an
integrated enterprise.
CRM: CRM Enterprises have started to realize the value of strategic
extensions like Supply chain management and Customer Relationship
Management applications. These softwares enable companies to
amalgamate.
ERP: Enterprises are replacing materials requirement planning with
supply chain planning software as it enables companies to generate
optimal plans for producing, delivering goods through collaboration.
CRM: Companies are integrating CRM software and other Internet
based applications with ERP packages to create what is being termed
as Extended enterprise.

SUPPLY CHAIN
MANAGEMENT
Supply chain management (SCM) helps businesses to
enhance and understand the activities that endow with
component level material for their finished product.
By focusing on SCM, corporations can significantly get better
operational efficiency. SCM seeks to help businesses control
costs by uncovering the difficulties in their key relationships
(e.g., with internal suppliers and external vendors). The
fundamental matter is the necessity to understand customer
demand and bring into line it with the supply side of the
business.
SCM links suppliers to databases that show forecasts, current
inventory, shipping, or logistics timeframes within the
customer organization. By giving those suppliers such
access, they can well again meet their customers demands.

BLOCK I (II)
UNIT 3 INTELLIGENCE
INFORMATION SYSTEMS

INTRODUCTION
Success is no longer tied to the traditional inputs of
labour, capital or land. The new critical resource is
inside the heads of employees: knowledge.
In this unit we are aiming at imparting knowledge
about this knowledge management and how to use
different tools and technologies to achieve the
objectives of an organisation.
Business Analytics and Business Intelligence are
concerned with the process of collecting and analysing
domain-specific data stored in data warehouses to
derive valuable insights about customers and emerging
markets, and to identify opportunities as well as key
drivers to business growth.

KNOWLEDGE MANAGEMENT IN ORGANISATION

Knowledge management (KM) is the

management of knowledge within organisations.
Knowledge Management caters to the critical
issues of organisational adaptation, survival, and
competence in the face of increasingly
discontinuous environmental change.
Essentially, it embodies organisational processes
that seek synergistic combination of data and
information processing capacity of information
technologies, and the creative and innovative
capacity of human beings.

 Information can be considered as a

message. It typically has a sender and a
receiver. Information is the sort of stuff
that can, at least potentially, be saved
onto a computer. Data is a type of
information that is structured, but has not
been interpreted.
Knowledge might be described as
information that has a use or purpose.
Whereas information can be placed onto a
computer, knowledge exists in the heads
of people. Knowledge is information to
which intent has been attached.

 First Generation Knowledge Management

involves the capture of information and experience
so that it is easily accessible in a corporate
environment. An alternate term is knowledge
capture. Managing this capture allows the system to
grow into a powerful information asset.
Second Generation Knowledge Management:
Faced with the theoretical and practical failure of first
generation techniques to live up to its promise,
theorists began to look more closely at the ways in
which knowledge is created and shared.
Knowledge is the awareness and understanding of
facts, truths or information gained in the form of
experience or learning. Knowledge is an appreciation
of the possession of interconnected details which, in
isolation, are of lesser value.

 Distinguishing knowing that from knowing how

Inferential (based on theory)vs. Factual Knowledge (based on
direct observation)
Approach for Successful Implementation of Knowledge
Management
Point 1: Knowledge Management is a discipline
Point 2: One champion is not enough
Point 3: Cultural change isnt automatic
Point 4: Create a change management plan
Point 5: Stay strategic
Point 6: Pick a topic, go in-depth, and keep it current
Point 7: Dont get hung up on the limitations
Point 8: Set expectations or risk extinction
Point 9: Integrate KM into existing systems
Point 10: Educate your self-service users
Point 11: Become a knowledge-enabled organisation

CREATING, DEVELOPING AND

SHARING KNOWLEDGE

 Knowledge Creation: This comprises activities

associated with the entry of new knowledge into the
system, and includes knowledge development,
discovery and capture.
Knowledge Retention: This includes all activities that
preserve knowledge and allow it to remain in the system
once introduced. It also includes those activities that
maintain the viability of knowledge within the system.
Knowledge Transfer: This refers to activities
associated with the flow of knowledge from one party to
another. This includes communication, translation,
conversion, filtering and rendering.
Knowledge Utilisation: This includes the activities
and events connected with the application of knowledge
to business processes.

Knowledge Creation and

Sharing
A set of systematic and disciplined actions that an
organisation can take to obtain the greatest value from the
knowledge available is given the name Knowledge
management.
Effective knowledge management typically requires
deployment of appropriate technology.
Tacit knowledge is what the knower knows, which is
derived from experience and embodies beliefs and values.
Tacit knowledge is actionable knowledge, and therefore the
most valuable.
Explicit knowledge is represented by some artifact, such
as a document or a video, which has typically been created
with the goal of communicating with another person.

Processes by which knowledge is

transformed between its tacit and
explicit forms

Capturing Knowledge
Once tacit knowledge has been conceptualized and
articulated, thus converting it to explicit knowledge,
capturing it in a persistent form as a report, an e-mail, a
presentation, or a Web page makes it available to the rest
of the organisation.
improving knowledge capture is a goal of many
knowledge management projects.
Combination: (explicit to explicit): Explicit knowledge can
be shared in meetings, via documents, e-mails, etc., or
through education and training.

Internalisation (explicit to tacit): In order to act on

information, individuals have to understand and
internalize it, which involves creating their own tacit
knowledge. By reading documents, they can to some
extent re-experience what others previously learned.

Knowledge Transfer and

Organisation
How to get some packet of knowledge, that exists in one part of the organisation,
into another (or all other) parts of the organisation.
Challenges :
geography
language

areas of expertise
internal conflicts (e.g., professional territoriality)
generational differences
union-management relations
incentives
the use of visual representations to transfer knowledge (Knowledge visualization)
Process
identifying the key knowledge holders within the organisation
motivating them to share
designing a sharing mechanism to facilitate the transfer
executing the transfer plan
measuring to ensure the transfer
applying the knowledge transferred

Drivers of Knowledge Management

Considerations driving a knowledge management program might
include:
making available increased knowledge content in the development
and provision of products and services.
achieving shorter new product development cycles.
facilitating and managing organisational innovation.
leverage the expertise of people across the organization.
Benefiting from network effects as the number of productive
connections between employees in the organisation increases and the
quality of information shared increases.
managing the proliferation of data and information in complex
business environments and allowing employees to rapidly access useful
and relevant knowledge resources and best practice guidelines.
facilitate organisational learning.
managing intellectual capital and intellectual assets in the workforce
(such as the expertise and know-how possessed by key individuals) as
individuals retire in larger numbers than they have in a long time and new workers are hired.

Knowledge Management
enablers
Historically, there have been a number of technologies :
expert systems,
knowledge bases,
software help desk tools,
document management systems and
other IT systems supporting organisational knowledge flows.
The advent of the internet brought with it further enabling
technologies, including
E-learning,
web conferencing,
collaborative software,
Content management systems,
corporate Yellow pages directories,
email lists, Wikis, Blogs, and other technologies.

ARTIFICIAL INTELLIGENCE IN
BUSINESS
Intelligence is the capability to solve perceptual
problems
perceptual, mean individual, special, random,
fuzzy, sensory, and/or emotional
Artificial intelligence (abbreviated AI) is defined
as intelligence exhibited by an artificial entity
generally computer-controlled
No matter how powerful a computer might be, if
it works only upon a given set of
rules/programs, it is not regarded as having real
intelligence.

Conventional AI and Computational Intelligence (CI).

Conventional AI mostly involves methods now classified

as machine learning, characterized by formalism and
statistical analysis. This is also known as:
symbolic AI,
logical AI,
neat AI and
Good Old Fashioned Artificial Intelligence (GOFAI).
Computational Intelligence involves iterative
development or learning. Learning is based on empirical
data and is associated with non-symbolic AI, scruffy AI and
soft computing. Methods mainly include: Neural networks:
systems with very strong pattern recognition capabilities.

BUSINESS ANALYTICS
Business analytics is a term used for sophisticated forms of business data
analysis.
Example: A common application of business analytics is portfolio analysis.
Let us take a case of a bank or lending agency which has a collection of
accounts, some from wealthy people, some from middle class people, and
some from poor people. The question is how to evaluate the whole
portfolio.
The bank can make money by lending to wealthy people, but there are
only few wealthy people. The bank can make more money by also lending
to middle class people. The bank can make even more money by lending
to poor people.
Note that poorer people are usually at greater risk of default. Note too,
that some poor people are excellent borrowers. Note too, that a few poor
people may eventually become rich, and will reward the bank for loyalty.
The bank wants to maximize its income, while minimizing its risk, which
makes the portfolio hard to understand.
The analytics solution may combine time series analysis, with many other
issues in order to make decisions on when to lend money to these different
borrower segments, or decisions on the interest rate charged to members
of a portfolio segment to cover any losses among members in that
segment.

Business analytics as Change Manager:

How to avoid being surprised when the
unexpected happens.
companies must constantly improve their
ability to identify, classify, and intelligently
analyse all available information.
Available Business Analytics:
Offered by many vendors
Vendors claim that these suits identify
trends, perform comparisons and highlight
opportunities in various business functions
like supply chain management, even when
large amounts of data are involved.

 Business analytics solutions available have capabilities for:

1. Executive Information Systems (EIS): supports decision-making at
an executive level.
2. Online Analytical Processing (OLAP): OLAP tools are mainly used
by analysts. They apply relatively simple techniques such as
deduction, induction, and pattern recognition to data in order to derive
new information and insights.
3. Standard reports are designed and built centrally and then published
for general use.
Static reports or canned reports
Parameterized reports
Interactive reports:

4. Ad-hoc reports: generated by users as a one-off exercise. The only

limitations are the capabilities of the reporting tool and the available
data.
5. Advanced Analytics: Advanced statistical and analytical processing
such as correlations, regressions, sensitivity analysis and hypothesis
testing.
6. Empowers everyone: Provide each person with relevant, complete
information tailored to their role.

Comprehensive Pre-built Analytic

Applications
A few pre-built applications are
described below:
Sales Analytics
Service and Contact Center Analytics
Marketing Analytics
Supply Chain Analytics
Financial Analytics
Workforce Analytics
Real-Time Decisions Solutions

BUSINESS INTELLIGENCE
Set of business processes for collecting and
analyzing business information.
Includes the technology used in these processes,
and the information obtained from these processes.
BI technology: The process of enhancing data
into information and then into knowledge.
The software aids in Business performance
management, and aims to help people make
"better" business decisions by making accurate,
current, and relevant information available to them
when they need it.
one can regard a business intelligence system as a
decision-support system (DSS).

 Business intelligence includes tools in various categories, including the

following:
Business Process Re-engineering
Competitive Analysis
Customer Relationship Management (CRM) and Marketing
Data mining (DM), Data Farming, and Data warehouses
Decision Support Systems (DSS) and Forecasting
Document warehouses and Document Management
Enterprise Management systems
Executive Information Systems (EIS)
Finance and Budgeting
Human Resources
Knowledge Management
Mapping, Information visualization, and Dashboarding
Management Information Systems (MIS)
Geographic Information Systems (GIS)
Online Analytical Processing (OLAP) and multidimensional analysis; sometimes
simply called Analytics (based on the so-called hypercube or cube)
Statistics and Technical Data Analysis
Supply Chain Management/Demand Chain Management
Systems intelligence
Trend Analysis
User/End-user Query

Designing and implementing a business

intelligence programme
1. Goal Alignment queries: Short & medium term purposes of the
programme.
2. Baseline queries: Does the organisation have the capability of
monitoring important sources of information? What data does the
organisation collect and how does it store that data? What are the
statistical parameters of this data, e.g., how much random variation does it
contain? Does the organisation measure this?
3. Cost and risk queries
4. Customer and Stakeholder queries
5. Metrics-related queries: Are these the best metrics? How do we know
that? How many metrics need to be tracked? If this is a large number (it
usually is), what kind of system can be used to track them? Are the metrics
standardized, so they can be benchmarked against performance in other
organisations? What are the industry standard metrics available?
6. Measurement Methodology-related queries: determine the best
way of measuring the required metrics.how frequently will the organisation
collect data? Do industry standards exist for this? Is this the best way to do
the measurements? How do we know that?
7. Results-related queries: to ensure that objectives are being met. The
programme should be tested for accuracy, reliability, and validity.

UNIT 4: SOCIAL, ETHICAL

AND LEGAL ASPECTS

MORAL DIMENSIONS
(a) information rights,
(b) property rights,
(c) accountability, liability, and control,
(d) system quality, and
(e) the quality of life.

Information Rights

Property Rights: Intellectual

Property
Intellectual property is a result of someone's effort to
create a product of value based on their experiences,
knowledge, and education. In short, intellectual property
is brain power.
Copyright laws and intellectual property rights cannot be
violated on the Internet any more than they can be
violated in other mediums.
When it comes to copyright material, the underlying ideas
are not protected, just the publication of the material.
On the other hand, a patent grants a monopoly on the
underlying concepts and ideas.
Before you use anything, especially any material on the
World Wide Web, make sure you are using it legally and
ethically.

Accountability, Liability, and Control

Government of India has enacted a comprehensive law
in the form of IT Act 2000

System Quality: Data Quality and System Errors

Data quality issues are gaining importance
These issues affect you as a consumer and as a user.
Examples of Reported Data Quality :
1. An airline inadvertently corrupted its database of
reservations while installing new software and for
months planes took off with half load. 2. A manufacturer
attempted to recognise its files by customer number
only to discover the sales staff had been entering a new
customer number for each sale because of special
incentives for new accounts. One customer was entered
7000 times. The company scrapped the software project
after spending $ 1 million.

Quality of Life: Equity, Access,

Boundaries
The impact on personal and family
life can be considerable. Examples:
1. the ability to work from home.
2. children who havent developed
normal social skills because they
spend all their time in front of a
computer.

RIGHT TO INFORMATION ACT

The Government of India in the year 2005 has enacted
the Right to Information Act .
It came into force on 12th October, 2005
The Act extends to the whole of India except the State
of Jammu and Kashmir.
What does Right to Information mean?
It includes the right to
1) Inspect works, documents, and records.
2) Take notes, extracts or certified copies of documents or
records.
3) Take certified samples of material.
4) Obtain information in the form of printouts, diskettes,
floppies, tapes, video cassettes or in any other
electronic mode or through printouts.

BLOCK 2

UNIT 1:
ORGANISATIONAL
OVERVIEW

ORGANISATION AND ITS TYPES

An Organisation can be defined as a stable, formal
social structure that uses resources and produces
them to produce output.
This output could be a physical product or service.
Leavitt (1962) defined Organisation as a specific
configuration of structure, people, task and
techniques.
Structure describes the form of departments,
hierarchy and committees.
People refer to the skills, attitudes and social
interaction of the members of the organisation.
Task refers to the goals of the individual and the
organisation. Techniques refer to the methodical
approach used to perform tasks.

Organisations at a macro level can be divided in

three types
Extraction,
Manufacturing including Construction, and
Services.
ORGANISATIONAL STRUCTURE
An organsational structure defines how job tasks are
formally divided, grouped and coordinated.
The knowledge about organisation structure answers to:
Who goes where?
What do they do?
What are the positions and how are they grouped?
What is the reporting sequence?
What is each person, and each unit, responsible for?
How does authority/accountability flow?

 For designing an organisational

structure, six key elements are
required. These are:
Work Specialisation
Departmentalisation
Chain of command
Span of control
Centralisation and Decentralisation
Formalisation

ORGANISATIONAL CHARACTERISTICS

ORGANISATIONAL FUNCTIONS
a) Business organisations
b) Bureaucracy: governments, armed forces, corporations, hospitals,
courts, ministries and schools.
c) Charity
d) International Cooperation or Control:
International intergovernmental organisations (IGOs) whose members are
sovereign states or other intergovernmental organisations (like, the
European Union), and
Non-governmental organisations (NGOs), which are private organisations.
e) Mutual Cooperation: is therefore owned by, and run for the benefit
of its members. Egs (Mutual) Insurance/Assurance companies, Savings
and loan associations, Mutual savings bank, Mutual bank.
f) Social, cultural, legal, and environmental advocacy functions
g) Collaborative Networks Function
h) Pacifist functions: Religious Society of Friends, Christian
Peacemaker Teams
i) Collective function: Art collectives, Activist collectives , Environment
collectives, Health collectives

LIFE CYCLE OF AN ORGANISATION

Five most acceptable and distinct stages, which
are:
1) Startup,
2) Growth. This is sometimes divided into an early
growth phase (fast growth) and maturity phase (slow
growth or no growth). However, maturity often leads
to.
3) Decline. When in decline, an organisation will
either undergo,
4) Renewal, and
5) Failure.

VERTICAL AND HORIZONTAL ORGANISATION

Structure in an organisation has three important

components:
1) Complexity: referring to the degree to which
activities within the organisation are differentiated.
This differentiation has three dimensions
Horizontal
Vertical
Spatial: location of the organisations offices,
facilities and personnel are geographically
distributed.
2) Formalisation
3) Centralsation

UNIT 2 MANAGEMENT FUNCTIONS

AND BUSINESS PROCESSES
Definition by Koontz is Management is the
art of getting things done through and
with the people in formally organised
groups.
Management Functions:
Planning,
Organising,
Coordinating,
Directing, and
Controlling.

Levels of Management

INTERACTION AMONGST THREE

LEVELS

BUSINESS FUNCTIONS AND

PROCESSES
Business Functions :
1) Sales and marketing,
2) Manufacturing and production,
3) Finance and accounts,
4) Human Resource, and
5) Materials Management
Business Processes: A Business Process is
best defined as any function within an
organisation that enables the organisation to
successfully deliver its products and services.

INFORMATION SYSTEMS
REQUIREMENTS
Productivity and efficiency of business to
reduce cost of products and services, and to
use technology to continually innovate is
nothing new except that the competition is
much more fierce than ever before.
Businesses do not have sufficient time to
consolidate as there are continuous changes to
be handled due to changes in technology, raw
materials, customer needs, legislation, rule and
regulations.
Information Age is thus knowledge-based.

 Information:
Information is a necessary and vital
input for the Management. Any
Management decision-making has to
be based on information. information
must be Timely, Reliable, Useful, and
Explicit.
In other words information can be
defined as processed data.

REQUIREMENT ANALYSIS
Requirements analysis, in software engineering, is
a term used to describe all the tasks that go into
the instigation, scoping and definition of a new or
altered computer system.
The requirements engineer is expected to
determine whether or not the new system is
feasible schedulable affordable legal
ethical.
Methods for Requirement Analysis:
Stakeholder interviews
Requirement workshops (Joint Requirements Development (JRD)
Contract-style requirement lists
Prototypes
Use cases
Software Requirements Specification

UNIT 3 MANAGEMENT
SYSTEMS
After going through this unit, you
should be able to:
understand basics of management
systems and their types;
describe the management systems
for the roles a manager has to fulfill,
and
design the Information systems
required at various levels of
management.

 Management systems are the formal, observable ways in which an

organisation administers its operations. We can also say a
management system provides the framework of processes and
procedures used to ensure that an organisation can fulfil all tasks
required to achieve its objectives.
some of the management systems:
Human resources management system
Accounting management system
Customer relationship management system Knowledge
management system
Logistics management system
Marketing management system
Operations management system
Project management system
Process management system
Personal management system
Product management system
Quality management system
Resource management system
Risk management system
Supply chain management system
Time management system.

LEVELS OF MANAGEMENT
ACTIVITIES