MANAGEMENT STRUCTURE
In management structure we have three levels.
- Top Level
- Middle Level and
- Line Managers(Operating Management)
A graphical representation of management structure is known as organisation chart.
The management structure is a pyramid as shown in figure
Top Level : Top Management performs the strategic planning processes. The basic function in strategic planning are to establishes the polices, plans, and objectives of the company, as well as a general budget framework under which the various departments will operate. These factors are passes down to middle level or management.
Middle Level : Middle Management manages the management control processes (tactical planning processes). The middle level translate the factors passed by top management into specific revenue, cost, and profit goals using tactical planning. These are reviewed, analysed and modified in accordance with the overall planes and policies untill agreement is reached. Then middle management, issues the specific schedules and measurement scales to operating level.
Line Managers : Line managers manages the operational planning process. This level has the job of producing the goods and services required to meet the revenue and profit goals, which in turn will enable the company to reach its overall plans and objectives.
Hence, we can say in simple words the middle level managers reports to the top level manager who is the overall incharge of the organisation. The middle level managers have many assistants who are responsible for specific day to day operations. They are known as line managers.
TYPES OF INFORMATION SYSTEM
With the understanding of three kinds of process that take place in a business, we can view the nature of information systems that support these processes. We have three types of information system, which satisfy the information needs of each level.
- Transaction Processing System(TPS)
- Management Information System(MIS) and
- Decision Support System(DSS)
Transaction Processing System(TPS) : The information system that support the operational control processes are called transaction processing systems. TPS supports day to day operations. All of these systems help a company to conduct its operations and keep track of its activities. These systems are often termed the bread and butter applications means those systems that process incoming orders for a company’s product and develop the information required to deliver the items and then bill the customers for the cost of their orders. Some other TPS are ticket selling system and accounts payable system etc.
Management Information System(MIS) : The information system that support the middle level process are called Management Information system i.e. The system required to obtain tactical information is known as MIS. These systems mainly center on providing managers with information to control operations and make decisions to optimise the delivery of products to customers. For example, in ticket selling system, a TPS is used to take orders and print tickets. MIS is used to measure and report the performance of each of the agents who sell tickets. Such a MIS keep track of the number and amount of each agents sales and it regularly produces reports about agents effectiveness.
Decision Support System(DSS) : The information system that support the top level process are called Decision Support system i.e. The system required to obtain strategic information is known as DSS. The strategic planning information systems are more elusive than the other systems. With the help of this system top level manages the policies, plans, objectives and budgets etc. Unlike MIS, which are regular and recurring, the need for DSS can be irregular.
CHARACTERISTICS OF MIS
- Avoid GIGO (Garbage In Garbage Out) : The correct input of a system always gives accurate information. So, GIGO must be avoided.
- Information produced should be trust worthy. The processing should not hide vital information which may point out the efficiency of some individuals.
- The information should be complete it should include all data, not partial data.
- The information should be timely. Delayed information may sometimes be of no use. So, whenever it should be required it should be available.
- The information should be presented in such a way that manager may immediately perceives its significance. The graphical presentation of information is a very effective way.
- Information should be designed according to the needs of the user and be relevant to him. Because irrelevant information always waste a lot of managers time.
EFFECTS ON MIS
The rapid growth of the hardware and software tools have compelled the users to have a rethinking in their working methodology. More and more people are coming forward to use these technologies to solve their data processing needs and build a strong MIS. The most important aspects in the success of such an application is a well planned system analysis design.
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