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1、Managemengt Information Systems By a management information system,we propose the follow alternate definition: an integrated uer/machine system (usually computerized) for providing information to support decision making in an enterprise. The key elements of this definition are An integrated uer/mach
2、ine system For proving informationTo support decision makingIn an enterpriseA management information system utilizesComputer hardware and softwareManual proceduresModels for analysisA databaseJust as there is a logical flow of materials in the creation of a product, there is logical flow of informat
3、ion in a management information system.In manufacturing,raw materials move through a process that transforms the raw materials into usable products. In a similar fashion, in an information system,data are supplied to a system(input), the data are manipulated(processed),and they are transformed into
4、information(output).In its simplest form ,a management information systemed may be depicted by an input-process-output(IPO) model (Fig.10.1). An understanding of this model is worthwhile becaue it can be used to represent all MISs.Note in that figure that the MIS, through its processing technology (
5、of collecting, coding,storing,processing,decoding,and reporting), transforms the data coming into an enterprise into usable information.InputsTransforation ProcessOutputsInformationProcessingTechnologyDataFig.10.1 An Input-Process-Output Medel of a Management Information SystemWe may further enhance
6、 our understanding of management information systems by discussing their general function and major elements. These systems exist in most enterprises, whether public or private, primarily to assist management in improving revenues, reducing costs and managing assets. Therefore, improving the perform
7、ance of an enterprise is the ultimate objective of management infoemation systems- not the storage of data, the generation of reports,or even”getting the right information to the right person at the right time.” And MIS can best improve an enterprises performance by helping to improve the quality of
8、 managerial decisions.Transaction processing (TP), reporting systems(RS), and decision-support systems(DSS) are the major elements of a management infortion system.The primary role of TP in an enterprise is the collection, storage,and processing of data in such a way that transactions within an ente
9、rprise are described and thus the procedural actions of the enterprise supported .More specifically, a TP system may be viewed as a computer-based means of capturing transaction so that may be recreated. The out of a transaction-processing system includes stored transaction images, documents needed
10、by an enterprise to fulfill its mainstream purposes(invoices,production orders,shipping orders,purchase orders, mailing lists, pay checks, work orders,and so forth), and listings of transaction that have occurred over a period of time (for confirmation or references).Reporting systems(RS) and decisi
11、on-support systems (DSS) often are confused with each other and thus misunderstood. Yet, each has a clear orientation. And distinctions may be drawn in terms of their areas of impact on the payoff to an enterprise and their relevance to a manager. So an RS provides standardized reports based on well
12、-known policies, procedures, and rules. And a DSS provides information to help management with new , unstructured decision making.A pyramid may be used to illustrate the dimensions of an information system(Fig.10.2).The vertical dimension represents the levels of management (first-line, middle, and
13、top management) , and the horizontal dimension represents the main functional areas of a business firm (for example, marketing, production, and finace).The depth dimension indicates the major management information systems that provide support for managerial activities: the structured and required r
14、eporting systems(RS) and decisionmaking system(DSS) . These dimensions rest on a base of transactions processing(TP). Transaction PocessingFinanceProductionMarketingMISDSSManagerialLexelsFig.10.2 The Dimension of a Management Information System As the figure illustrates, RS and DSS (drawing on the T
15、P system ) are utilized at all managerial levels and acress all function areas . There, it is te management information system(of TP ,RS ,and DSS ) that integrates both the level of management and functional areas .To further demonstrate how the subsystems fit together, the definition of MIS is recr
16、eated in the following table , with the components of MIS related to the defintional frame work.Table10.1 Definition of Management Information System (MIS)MIS SubsystemsA management information system is .An integrated user/machine system .Computer, models.For providing information .System output.To
17、 support decision making .MIS.DSS.OR/MS.In an enterprise .Frameworkforthe informationThe system utilizes.Computer hardware and software .Computer system.Manual procedures .Books,manuals,people.Models for analysis .Operations research.A database .Computer ,peopleDeveloping a compensation plan to pay
18、executive, managerial, and professional employees is similar in many respects to developing a play for and employees. The basic aims of the plan are the same in that the goal is to attract good employees and maintain their commitment. Furthermore, the basic methods of job evaluation , classifying jo
19、bs, ranking them , or assigning points to them ,for instance, are about as applicable to managerial and professional jobs as to production and clerical ones.1)Yet for managerial and professional jobs , job evaluation provides only a partial answer to the question of how to pay these employees, Such
20、jobs tend to emphasize nonquantifiable factor like judgment and problem solving more than do production and clerical jobs . There is also a tendency to pay manager and professionals based on abilitybased on their performance or on what they can do rather than on the basis of static job demands like
21、working conditions. Developing compensation plans for managers and professionals, therefore, tends to be relatively complex,2) and evaluation, while still important, usually plays a secondary issues, like bonuses, incentives, and benefits. Compensation Managers There are five elements in a managers
22、compensation package: salary, benefits, short-term incentive, long-term incentives, and perquisites.The amount of salary managers are paid usually depends on the value of the persons work to organization and how well the person is discharging his or her responsibilities.3)AS with other jobs , the va
23、lue of the persons work is usually determined through job analysis and salary surveys and salary surveys and the resulting fine tuning of salary levels. Salary is the cornerstone of executive compensation : It is on this element that the others are layered, with benefits, incentives , and perquisite
24、s normally awarded in some proportion to the managers base pay . 4) There is considerable disagreement regarding what determines executive pay and, therefore , whether top executives are worth what are paid . At the lower-management levels(like first-line supervisor),there is no debate ; supervisors
25、 pay grades are usually set so that their median salaries are 10% to 25% above those of the highest-paid workers supervised. And many employers even pay supervisors for scheduled overtime, although the Fair Labor Standards Act does not require them to do so.It is at the top-management levels that qu
26、estions regarding pay abound . The traditional wisdom is that a top managers salary is closely tied to the size of the firm . Yet two experts who tested this idea for the 148 highest-paid executives in the United States concluded that the level of executive responsibility (as measured by total asset
27、s, total sales,total number of shares in the company, total value of the shares, and total corporate profits) is not an important variable in determing executive compensation . Instead , say these experts , an executives pay is mostly determined by the industry in which he or she works, and the corp
28、orate power structure ,since executives who also serve on their firms boards of directors can heavily influence how they get paid.Yet there is conflicting evidence. In one study , for instance , the researcher found that a statistical analysis of the total cash compensation of the chief executive of
29、ficers of 129 companies showed that they were paid for both responsibility and performance. This researcher fond that four compensable factors-company size , profitability, number of employees, and experience-accounted for 83% of the differences in pay .Therefore, it appears that there are rational,
30、 acceptable , and abiding principles that govern the total cash compensation of top executives in manufacturing firms.In any case, shareholder activism is combining with congressional reform and other changes to tighten up the restrictions on what firms pay their top executives . For example, the Se
31、curities and Exchange Commission voted in 1992 to approve final rules rules regarding executive compensation communications.The chief executive officers pay is always to be disclosed as well as other officers pay if their compensation( salary and bonus) exceeds $100,000.5 And for bankers,the Federal
32、 Deposit Insurance Act of 1991 contains a prohibition on excessive compensation. One result is that boards of directors must act responsibly in reviewing and setting executive pay . That , says one expert, includes determining the key performance requirements of the executives job; assessing the app
33、ropriateness of the firms current compensation practices ; conducting a pay-for-performance survey; and testing shareholder acceptance of the boards pay proposals. The general trend today is to reduce the acceptance of base salary and boost the importance of short-and long-term executive incentives.
34、 The main issue here is identifying the appropriate performance measures for each type of incentive and then determining how to link these to pay . Typical short-term measures of shareholder value include revenue growth and operating profit margin. Long-term shareholder value measures include rate o
35、f return above some predetermined base. Compensating professional employees Compensating nonsupervisory professional employees like engineers and scientists presents unique problems. 6) Analytical jobs put a heavy premium on creativity and problem solving, compensable factors not easily compared or
36、measured. Furthermore, the professionals economic impact on the firm is often related only indirectly to the persons actual efforts; for example,the success of an engineers invention depends on many factors, like how well it is produced and marketed. The job evaluation methods we explained previousl
37、y can be used for evaluating professional jobs. The compensable factors here tend to focus on problem solving , creativity, job scope, and technical knowledge and expertise. Both the point method and factor comparison methods have been used , although the job classification method seems most popular
38、 . Here a series of grade descriptions are written, and each position is slotted into the grade having the most appropriate definition.Yet， in praction, traditional methods of job evaluation are rarely used for professional jobs since “it is simply not possible to identify factors and degrees of fac
39、tors which meaningfully differentiate among the values of professional work ”. “Knowledge and the skill of applying it ,” as one expert notes , “are extremely difficult to quantify and measure.”As a result , most employers use a market-pricing approach in evaluating professional jobs . They price pr
40、ofessional jobs in the marketplace to the best of their ability to establish the values for benchmark jobs . These benchmark jobs and the employers other professional jobs are then slotted into a salary structure. Specifically, each professional discipline ( like mechanical engineering or electrical
41、 engineering ) usually ends up having four to six grade levels , each of which requires a fairly broad salary range . This approach helps ensure that the emplpyer remains competitive when bidding for professionals whose attainments vary widely and whose potential employers are literally found worldw
42、ide.Manager must assume certain roles in order to accomplish the different objectives for which they are responsible. In addition , all managers must possess specific managerial skills if they are to adequately perform the function .Managerial RolesHenry Mintzbergs studies of executive behavior led
43、him to conclude that managers are required to assume a variety of roles . A role is a set of expected behaviors for a specific position. 1) Mintzbergs roles can be grouped into three main categories: interpersonal , informational , and decisional . Mintzbergs believed that all three roles are common
44、 to all levels of management. They provide an interesting perspective of the functions of management.2) Interperesonal roles result form the fact that managers are called upon to interact with numerous groups and individuals. The three interpersonal roles are figurehead, leader , and liaison . The f
45、igurehead role refers to ceremonial duties such as throwing out the first pitch for company-sponsored Little League game . The leadership role refers to the managers work in motivating subordinates to meet the units objectives. The liaison role comes form the managers responsibility to interact with
46、 various groups both within and outside the organization .Informational roles exist because managers are important conduits of information in the organization . Managers spend a great deal of their time collecting and disseminating information. The three informational roles are information nerve cen
47、ter, disseminator, and spokesperson . The nerve center role means that the manager is the major information receiver within the work unit . The disseminating role refers to the task of informing subordinates of information that is implemented to them and necessary for their job performance. 3) The s
48、pokesperson role is implemented when the manager communicates with parties outside the organization ; a speech at the local Lions Club would be an example.Decisional roles refer to managements decision-making process. The four managerial roles in this category are entrepreneur, disturbance handler,
49、resource allocator, and negotiator . A manager assumes an entrepreneurial role when he or she initiates projects to improve the department or work unit . When problems such as a missed delivery to a key customer arise , the manager must adopt a disturbance handling role . 4) The decision on how to allo