3. Describe the functions that MIS supports in an organization. What are the various ways of assessing the value of information? Explain each method briefly.
Answer:
Some say that management can be understood by observing what managers do. Managers get the work done through others. Management can also be understood by the type of functions a manager performs. A manager usually performs the following functions: Planning, Organizing, Staffing, Directing, Coordination, Reporting and Budgeting. In fact management is a process of achieving an organization’s goal and objectives by judiciously making use of resources of men, material, machines, money, methods, messages and moments (the last two in the context of information being vital resources to the manager/decision-maker). Management can also be seen as structured into three hierarchical levels namely, top level, middle level and bottom level or strategic, tactical and operational levels, respectively. Although lines of demarcation are not absolute and clear-cut, one can usually distinguish certain layers within the organization, which are characterized by, the classical pyramidical type of structures as shown in Figure 7.3. Top management establishes the policies, plans and objectives of the company as well as a budget framework under which the various departments will operate. These factors are promulgated and passed down to middle management. They are translated into cost or profit centre concept. These are reviewed, analyzed and modified in accordance with the overall plans and policies until agreement is reached. Middle management then issues the specific schedules and measurement yardsticks to the operational management.
The operational levels has the responsibility of producing goods and services to meet the revenue, profit and other goals, which in turn will enable the organization achieves its overall and objectives. In the context of MIS, management can perhaps be best defined as a process of (i) selection of objectives, (ii) judicious allocation of resources (iii) determining operational plans and schedules, (iv) keeping control of progress, and (v) evaluation through feedback. Each of these areas requires certain decisions to be made. Thus we take strategic decisions at the top level, tactical decisions at the middle and operational decisions at the junior level. As can be seen from Table 7.1, the type of problems and decisions at the junior level are quite deterministic and structured, so we can have programmed decisions. But as we move to higher level, situations become fuzzy, ambiguous, and unstructured, and thus we are faced with non-programmed decisions. We find that with the introduction of computers, we have gone about routine EDP type of an activity for the essentially programmed decisions that take place at the operating level. Perhaps with the rapid advances that are taking place in the field of electronics, communication and computers, we might have good progress in the field of AI (Artificial Intelligence) and accordingly devise knowledge based expert systems which would be helpful at the strategic level to cater to non-programmed complex type of decision-making situations.
Through the classic pyramidical structure is generally acceptable; unfortunately in the modern complex organization this neat, militaristic, configuration seldom (!) fits the reality. Under conditions facing modern management the strategy and control tend to become more remote from the resources that are geographically spread and organizationally diverse. Between the decision-maker and the resources lie systems – of people and data handling equipment –that can distort, delay, amplify, and dampen messages. External to the enterprise, interest groups –in government, consumers, and labor representatives, other national and international agencies are involved in an information exchange. The modern manager must bed capable of managing his information systems for strategic planning, management control, and operational control.
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