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Ms-01 Assignment Questions

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Ms-01 Assignment Questions

Postby Ceithin » Tue Dec 06, 2016 1:17 am

1.What are the essential components/indicators/determinants of organisational climate and organisationalculture? Take example of two organisations, list out the component/ indicators/ dimensions of their climate and culture and explain their corresponding perceived major focus, wit example. Briefly describe the organisations you are referring t.

2. what are elements of an organisation structure, and the factors influencing its choice/ Take example of two organisations and explain with logic as to how are their structures suited to their requirements or influenced by other factors.

3. why do groups get formed? what are the stages of group formation? Explain the formation of a group and relate it to the stages with brief description of purpose and structure of the group, as you are aware of. Also briefly describe the organisation, if this group was the part of it.

ANSWER: 1.          What are the essential icomponents of an effective MIS and why? Describe the MIS of an organization ,known to you or you are familiar with, giving detailed description and critically evaluate its effectiveness. Briefly describe the organization, youare referring to.

. A management information system(MIS) is 'an integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computers, manual procedures, models for analysis, planning, control and decision making, and a database' . MIS facilitates managerial functioning. Management information is an important input at every level in the organization for decision making, planning, organizing, implementing, and monitoring and controlling. MIS is valuable because of its content, form and timing of presentation. In the context of different levels of decision making, information can be described as: • source, • data, • inferences and predictions drawn from data, • value and choices(evaluation of inferences with regard to the objectives and then choosing a course of action), and • action which involves course of action.

The MIS concept comprises three interrelated and interdependent key elements: management, system and information -----------------------------------------------------

Characteristics of MIS:

1. Integration In MIS, whole system is integrated with each movement of business. It will be supportive to produce more positive information. 2. Central Database

It is also the characteristics of MIS that it has a central database. Only correct validation, anyone can access to information.

3. Software Based System MIS is software base system which is used in management accounting. It needs continually updates. Moreover, software will process data automatically. 4. Flexibility MIS is more flexible system than any other system of management. We can adjust input data and processing technique according to need of business and get information according to this. We can also divide MIS in sub systems for proper recording and process of data. MIS is mainly designed to take care of the needs of the managers in the organization.

MIS aids in integrating the information generated by various departments of the organization.

MIS helps in identifying a proper mechanism of storage of data.

MIS also helps in establishing mechanism to eliminate redundancies in data.

MIS as a system can be broken down into sub systems.

The role and significance of MIS in business and its classification is explained. It is possible to understand the various phases of development in MIS based on the type of system required in any organization. Components Of MIS

COMPONENTS OF MANAGEMENT INFORMATION SYSTEM

Hardware Input and output devices constitute the hardware components of MIS.

Software The programs and applications that convert data into machine-readable language are known as software.

Procedures Procedures are sets of rules or guidelines, which an organization establishes for the use of a computer-based information system.

Personnel The computer experts, managers, users, analysts, programmers, database managers, and many other computer professionals who utilize the computer-based information systems are the personnel in a management information system.

COMPONENTS OF MANAGEMENT INFORMATION SYSTEM Important Considerations in designing Management Information System MIS  DESIGNING  IS  A  STRUCTURED   PROCESS.

STEP 1 = MIS- MANAGEMENT  INFORMATION  SYSTEM

"An integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computerized and manual procedures; models for analysis, planning, control and decision making; and a database." MIS principal concerns Facilitate decision making by supplying the information needed in an up-to-date and accurate form • to the people who need it

• on time

• in a usable form

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STEP  2 =  MIS  ELEMENTS Management functions

Planning

Controlling

Decision making

Information system

Management information

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STEP   3 =  STEPS  IN  PLANNING 1. Selecting objectives

2. Identifying activities required to achieve the stipulated objectives

3. Describing the resources or skills, or both, necessary to perform the activities

4. Defining the duration of each activity to be undertaken

5. Determining the sequence of the activities

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STEP  4 = INFORMATION   REQUIREMENTS   DURING  PLANNING 1. Supplying the information needed by the planner at each step 2. Establishing procedures for procuring the information at each step(including the means to view alternatives) 3. Arranging for storage of the approved plans as information for the control process 4. Devising an efficient method for communicating the plans to other members in the organization

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STEP  5 =  CONTROLLING Controlling involves 1. Establishing standards of performance in order to reach the objective

2. Measuring actual performance against the set standards

3. Correcting deviations to ensure that actions remain on course

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STEP   6  = REQUIREMENTS  FOR  CONTROLLING 1. Defining expectations in terms of information attributes

2. Developing the logic for reporting deviations to all levels of management prior to the actual occurrence of the deviation ------------------------------------------------------------------------------

STEP   7  = DECISION  MAKING   

Levels of decision making • Strategic

• Tactical

• Technical

Elements of decision making • Model

• Constraints

• Optimization

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STEP  8 = SYSTEMS "A set of elements forming an activity or a procedure/scheme seeking a common goal or goals by operating on data and/or energy and/or matter in a time reference to yield information and/or energy and/or matter." ----------------------------------------------------------------------------------

STEP   9=  PERCEIVING  THE  SYSTEM 1. Some components, functions and processes performed by these various components 2. Relationships among the components that uniquely bind them together into a conceptual assembly which is called a system 3. An organizing principle which is an overall concept that gives it a purpose 4. The fundamental approach of the system is the interrelationship of the sub-systems of the organization

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STEP  10 = BASIC  PARTS  OF  THE  ORGANIZATION 1.   The individual

2.   The formal and informal organization

3.   Patterns of behaviour arising out of role demands of the organization

4.   The role perception of the individual

5.   The physical environment in which individuals work

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STEP  11 =  WHY  A  SYSTEMS   APPROACH • Developing and managing operating systems(e.g., money flows, manpower systems)

• Designing an information system for decision making

• Systems approach and MIS

• MIS aims at interrelating, coordinating and integrating different sub-systems by providing information required to facilitate and enhance the working of the sub-systems and achieve synergistic effects --------------------------------------------------

STEP  12 = INFORMATION 'A set of classified and interpreted data used in the decision making process" Information has also been defined as some tangible entity which serves to reduce uncertainty about future state or events In the context of different levels of decision making, information can be described as: • source • data • inference and predictions drawn from the data • value and choices(evaluation of inferences with regard to the objectives, and then choosing courses of action) • action which involves a course of action

The value of management information lies in its content, form and timing of presentation ######################################################-

STEP  13 = MIS  AS   A  PYRAMIDAL   STRUCTURE TOP  LEVEL

SENIOR  MANAGEMENT

MIDDLE  MANAGEMENT

FIRSTLINE  MANAGEMENT

STAFF  LEVEL  OPERATION

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STEP  14 = CONCEPTUAL  BASIS  OF  MIS 1. Concepts of organization 2. Organizational theories, principles, structure, behaviour and processes such as communication, power and decision making 3. Motivation and leadership behaviour

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STEP  15 = IMPLICATIONS  OF  THE  ORGANIZATIONAL STRUCTURE  FOR MIS Concepts: • Hierarchy of authority

• Specialization

• Formalization

• Centralization

• Modification of the basic model

• Information model of organization

• Organizational culture

• Organizational power

• Organizational growth cycle

• Goal displacement

• Organizational learning

• Project model of organizational change

• Case for stable system

• Systems that promote organizational change

• Organizations as socio-technical systems

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STEP  16 = INFORMATION  REQUIREMENTS  FOR  MIS 1. Assessing information requirements

2. Levels of information requirements • Organizational level

• Application level

• Technical

• Database

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STEP  17 = STRATEGIES FOR DETERMINING INFORMATION REQUIREMENTS 1. Asking

2. Deriving from an existing information system

3. Synthesizing from characteristics of the utilizing system

4. Discovering from experimentation with an involving information system

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STEP  18 =  STRATEGY  FOR DETERMINING DATA  REQUIREMENTS 1. Identify elements in the development process utilizing system: • Information systems or applications

• Users

• Analysts

2. Identify process uncertainties: • Existence and availability of a set of usable requirements

• Ability of users to specify requirements

• Ability of analysts to elicit and evaluate requirements

3. Evaluate the effects of elements in the development process over process uncertainties

4. Evaluate the combined effects of the process uncertainties on overall requirements uncertainty

5. Select a primary strategy for requirements determination based on the overall requirements uncertainty

Uncertainty level    Strategy Low    • Asking or deriving from an existing system   • Synthesis from characteristics of utilizing systems High    • Discovering from experimentation 6. Select one or more from the set of methods to implement the primary strategy

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STEP 19 =  TYPES  OF  MIS 1. Databank information system

2. Predictive information system

3. Decision making information system

4. Decision taking information system

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STEP   20  = THE  MIS  PROCESS 1. Understand the organization

2. Analyse the organization's information requirements

3. Plan overall strategy

4. Review

5. Preliminary analysis

6. Feasibility assessment

7. Detailed fact finding

8. Analysis

9. Design

10. Development

11. Cutover

12. Obtain conceptual schema

13. Recruit database administrator

14. Obtain logical schema

15. Create data dictionary

16. Obtain physical schema

17. Create database

18. Modify data dictionary

19. Develop sub-schemas

20. Modify database

21. Amend database

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STEP   21=  MIS  CRITERIA ?• Management by exception

• Accuracy

• Adaptability

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STEP  22 = STRATEGIES  FOR  DETERMINING  MIS DESIGN • Organization-chart approach

• Integrate-later approach

• Data-collection approach

• Database approach

• Top-down approach

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THE  ORGANIZATION, I   AM  REFERRING  TO

The  organization, I am  familiar  with  is  a -a  large  manufacturer/ marketer of  safety products

-the products  are  used  as  [personal  protection safety] [ industrial  safety]

-the products  are  distributed through  the distributors as well as  sold directly

-the  products  are  sold  to various  industries like  mining/fireservices/defence/

as  well  as  to  various  manufacturing  companies.

-the  company employs  about  235  people.

-the  company  has  the following  functional   departments

*marketing

*manufacturing

*sales

*finance/ administration

*human resource

*customer  service

*distribution

*warehousing/  transportation

*TQM  

=============================================== Criteria for MIS five criteria for an MIS: • Relevance Information should be relevant to the individual decision-makers at their level of management. • Management by exception Managers should get precise information pertaining to factors critical to their decision making. • Accuracy The database from which information is extracted should be up-to-date, contextually relevant and validated. • Timeliness The information should be provided at the time required. • Adaptability The information system should have an in-built capability for re-design so that it can suitably adapt to environmental changes and changing information requirements.

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Strategies for determining MIS design

MIS design should be specific to an organization, respecting its age, structure, and operations. Six strategies for determining MIS design have been suggested : • Organization-chart approach Using this approach, the MIS is designed based on the traditional functional areas, such as finance, administration, production, R&D and extension. These functional areas define current organizational boundaries and structure. • Integrate-later approach Largely a laissez faire approach, it does not conform to any specified formats as part of an overall design. There is no notion of how the MIS will evolve in the organization. Such an MIS becomes difficult to integrate. In today's environment - where managers demand quick and repeated access to information from across sub-systems - the integrate-later approach is becoming less and less popular. • Data-collection approach This approach involves collection of all data which might be relevant to MIS design. The collected data are then classified. This classification influences the way the data can be exploited usefully at a later stage. The classification therefore needs to be done extremely carefully. • Database approach A large and detailed database is amassed, stored and maintained. The database approach is more and more accepted for two main reasons: first, because of data independence it allows for easier system development, even without attempting a complete MIS; and, second, it provides management with immediate access to information required. • Top-down approach The top-down approach involves defining the information needs for successive layers of management. If information required at the top remains relatively stable in terms of level of detail, content and frequency, the system could fulfil MIS requirements . The usefulness of this approach depends on the nature of the organization. It can be suitable for those organizations where there is a difference in the type of information required at the various levels. • Total-system approach In this approach the interrelationships of the basic information are defined prior to implementation. Data collection, storage and processing are designed and done within the framework of the total system. This approach can be successfully implemented in organizations which are developing.

Management and the MIS process

An MIS is directed towards the managerial functions of planning, controlling and monitoring, and decision making. Planning Planning consists of five sequential and interactive steps . These are: • selecting objectives;

• identification of the activities which are required to achieve the stipulated objectives;

• detailing the resources - including the various skills - required to undertake the activities;

• determining the duration of each activity to be performed; and

• defining the sequence of the activities.

The basic requirements during the planning process of most importance in designing and implementing an MIS for an organization are : • providing the information required by the planner at each step of planning; • establishing procedures for obtaining the information; • arranging for storage of the approved plans, as these will provide the information requisite to monitoring and controlling; and • evolving methods for communicating the plans to employees in the organization.

Monitoring and controlling Controlling 'compels events to conform to plans' . It involves: • establishing standards of performance in order to reach the objective;

• measuring actual performance against the set standards; and

• keeping actions on course by correcting deviations as they appear(mid-course corrections).

The requirements for successful development of a control system are: • defining expectations in terms of information attributes; and

• developing the logic for reporting deviations to all levels of management prior to the actual occurrence of the deviation.

Decision making Decision making is the process of selecting the most desirable or optimum alternative to solve a problem or achieve an objective. The quality and soundness of managerial decisions is largely contingent upon the information available to the decision-maker. decision making on three levels of a continuum: • Strategic decisions are future-oriented because of uncertainty. They are part of the planning activity. • Tactical decision making combines planning activities with controlling. It is for short-term activities and associated allocation of resources to them to achieve the objectives. • Technical decision making is a process of ensuring efficient and effective implementation of specific tasks.

Elements of decision making The four components of the decision making process are : • Model A model is an abstract description of the decision problem. The model may be quantitative or qualitative. • Criteria The criteria must state how goals or objectives of the decision problem can be achieved. When there is a conflict between different criteria, a choice has to be made through compromise. • Constraints. Constraints are limiting factors which define outer limits and have to be respected while making a decision. For example, limited availability of funds is a constraint with which most decision makers have to live. • Optimization Once the decision problem is fully described in a model, criteria for decision making stipulated and constraints identified, the decision-maker can select the best possible solution.

--------------------------------------------------------------------------- The information  SYSTEM   used  for   various  purposes,

-strategic planning

-delivering increased  productivity

-reducing  service cycles

-reducing  product development  cycles

-reducing  marketing life cycles

-increasing  the  understanding  of  customers' needs

-facilitating business and  process re-engineering.

THE  INFORMATION  SYSTEM  IS  USED   as an  information

utility  to

-support  policy making

-meet  regulatory  and  legislative requirements

-support  research  and  development

-support  consistent and  rapid  decision  making

-enable  effective  and efficient  utilization  of resources

-provide evidence of  business transactions

-identify  and  manage  risks

-evaluate  and document quality, performance and achievements.

MAKING INFORMATION  AVAILABLE

The  availability  of  information is  fundamental  to  the  decision making process. Decisions  are  made within the organization at

-STRATEGIC

-OPERATIONAL

-PROGRAMMES

-ACTIVITY  LEVEL.

The  information  needs and decision making  activities  of the  

various  levels of  management

SENIOR  MANAGEMENT

Strategic business  direction

-information  for  strategically positioning  the  organization

-competitive  analysis and  performance evaluation,

-strategic  planning and policy,

-external factors that  influence  the  direction

etc

MID LEVEL MANAGEMENT

Organizational and operational functions

-information  for  coordination  of  work units

-information  for  delivery  programmes

-evaluation  of  resources usage

-budget control

-problem  solving

-operational  planning

etc

MID  LEVEL  MANAGEMENT

Programme  management within units

-information  for  implementing programmes

-information  for  managing   programmes

-management   of  resources usage

-project scheduling

-problem  solving

-operational  planning

etc

LINE  MANAGEMENT

Activity management -information for  routine  decision  making

-information  for  problem solving

-information  for  service delivery

etc.

MANAGEMENT  SUPPORT  SYSTEMS

The  management  oriented  support  systems   provide support

to  various  levels  of  management. Executive  Information  Systems  allow  executives to see where  a

problem  or  opportunity  exists.

Decision  Support  Systems are  used  by  mid-level management  

to support  the  solution  of  problems that  require judgement

by  the  problem solver.

Line  Managers   use Management  Reporting Systems  for  

routine operational  information. Computer-based or manual system that transforms data into information useful in the support of decision making. MIS can be classified as performing three functions:

(1) To generate reports-for example, financial statements, inventory status reports, or performance reports needed for routine or non-routine purposes.

(2) To answer what-if questions asked by management. For example, questions such as "What would happen to cash flow if the company changes its credit term for its customers?" can be answered by MIS. This type of MIS can be called SIMULATIONS.

(3) To support decision making. This type of MIS is appropriately called DECISION SUPPORT  SYSTEM   [  DSS ].   DSS attempts to integrate the decision maker, the data base, and the quantitative models being used.

-STRATEGIC   MANAGEMENT   INFORMATION  FOR  top  management.

-TACTICAL  MANAGEMENT  INFORMATION  FOR  middle  management.

-OPERATIONAL  MANAGEMENT INFORMATION  for  firstline  management.

===========================================================

Types of Systems

Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows:

Accounting management information systems: All accounting reports are shared by all levels of accounting managers.

Financial management information systems: The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.

Manufacturing management information systems: More than any functional area, operations have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factory. Thus there is no need for warehousing.

Marketing management information systems: A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example.

Human resources management information systems: Human Resource Management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.

The above are examples of the major management information systems. There may be other management information systems if the company is identified by different functional areas.

FUNCTIONAL   INFORMATION  SYSTEMS These  include

-Accounting  Information  Systems

-Marketing  Information  Systems

-Enterprise  Information  Systems

-Decision  Support  Information  Systems

-Executive    Information  Systems

-Quality  Management   Information  Systems

-Manufacturing   Information  Systems

-Financial   Information  Systems

-Human resource   Information  Systems FOR  MANAGEMENT ,  MIS

-PROVIDE   INFORMATION   FOR  DECISION  MAKERS  TO  MAKE  SOLUTIONS

FOR   THE  MOST  CHALLENGING  SITUATIONS.

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-PROVIDE    INFORMATION  FOR  MAKING  STRATEGIC  DECISIONS

IN A  COMPETITIVE  SITUATION.

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-PROVIDE  INFORMATION  FOR   STRATEGIC  PLANNING

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-PROVIDE  INFORMATION  FOR  CORPORATE  PLANNING

------------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  FOR  BUSINESS  PLANNING

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-PROVIDE  INFORMATION  FOR  MARKETING  PLANNING

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-PROVIDE  INFORMATION  FOR  INDUSTRY BENCHMARKING.

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-PROVIDE  INFORMATION  FOR  PROCESS  ENGINEERING

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-PROVIDE  INFORMATION  FOR  PRICING  MANAGEMENT

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-PROVIDE INFORMATION  FOR  REVENUE  MANAGEMENT

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-PROVIDE  INFORMATION FOR  DEVELOPING   STRATEGIC  ALLIANCES.

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-PROVIDE  INFORMATION  FOR   ALLOCATING  OF   RESOURCES

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-PROVIDE  INFORMATION  FOR  RESOURCE  MANAGEMENT

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-PROVIDE  INFORMATION  FOR  MANAGEMENT  INFORMATION SYSTEMS

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-PROVIDE  INFORMATION  FOR  Identifying strategic shifts and positioning  WITH   clients in anticipation of several possible outcomes – scenario planning --is a core part of our strategic and tactical planning. ----------------------------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  TO  SEE  Changes in market conditions, technical advances, and economic issues will all affect THE  INDUSTRY /  BUSINESS  in the future. --------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  TO   find the most effective marketing strategies in order to succeed in these challenging times. --------------------------------------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  FOR  PROPRIETARY  DATABASES  AND  ANALYTICAL  SUPPORT.

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-PROVIDE  INFORMATION  ON  ECONOMIC  CONDITIONS-PAST/PRESENT/FUTURE.

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-PROVIDE  INFORMATION  THAT  enables  to provide  valuable understanding of the opportunities, challenges, potential pitfalls and market implications

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-PROVIDE  INFORMATION  WHICH   helps organizations realize the most value from their  assets. ---------------------------------------------------------------------------------------------------------------------

-PROVIDES  INFORMATION  TO  CONDUCT portfolio management, remarketing assistance, sale and lease negotiations, asset sourcing and acquisition, appraisal and valuation,  auditS and management and expert testimony. ----------------------------------------------------------------

-PROVIDE  THE  RIGHT INFORMATION for  a clear and disciplined approach to financial planning is vital to ensure success.

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-PROVIDE  INFORMATION  FOR  OBJECTIVE  PLANNING.

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-PROVIDE  INFORMATION   FOR the execution of effective business planning and sound management usually defines these differences in profitability.

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-PROVIDE   INFORMATION  TO   analyze and prioritize the  BUSINESS  drivers to help to  achieve a superior competitive position. Vital to this process is an understanding of the economic advantages of scale and scope. -------------------------------------------------------------------------------------------------------

-PROVIDES   INFORMATION  FOR  Operational excellence results in the attainment of world-class quality and productivity in the delivery of services to customers

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-PROVIDES  INFORMATION  to develop a clear understanding of their operating practices and associated costs, particularly relative to competitors. ------------------------------------------------------------------------------------------------

When  running a  BUSINESS, the right information systems can have a critical impact operating costs, operating effectiveness, and customer satisfaction.

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======================================================

ADVANTAGES An MIS provides the following advantages. 1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision - making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. 2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization . 5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost . 6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information. reference: http://www.management-hub.com/information-management-advantages.html DISADVANTAGES

1.highly senstive requires constant monitoring. 2.buddgeting of MIS extremely difficult. 3.Quality of outputs governed by quality of inputs. 4.lack of flexiblity to update itself. 5.effectiveness decreases due to frequent changes in top management 6.takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc...

•   

Depending on organization deployment, usage and extraneous factors, some disadvantages related to Management Information Systems can come to the fore. Allocation of budgets for MIS upgrades, modifications and other revisions can be quite tricky at times. If budgets are not allocated uniformly or as per immediate requirements, key functionalities might get effected and benefits might not be realized consistently. Integration issues with legacy systems can affect the quality of output and vital business intelligence reports.

Constant Monitoring Issues

•   Change in management, exits or departures of department managers and other senior executives has a broad effect on the working and monitoring of certain organization practices including MIS systems. Since MIS is a critical component of an organization's risk management strategy and allied systems, constant monitoring is necessary to ensure its effectiveness. Quality of inputs into MIS needs to be monitored; otherwise consistency in the quality of data and information generated gets effected. Managers are not able to direct business, operational and decision-making activities with the requisite flexibility.

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4. What are the element of an organization structure, and the factors influencing its choice? Take example of  two organizations and explain with logic as to how are their structures suited to their requirements or influenced by the other factors.

Factors Affecting Organizational Design

Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology.

Organizational structure is the framework companies use to outline their authority and communication processes. The framework usually includes policies, rules and responsibilities for each individual in the organization. Several factors affect the organizational structure of a company. These factors can be internal or external. Small business owners must be responsible for creating their companies organizational structure framework. Business owners may use a management consultant or review information from the Small Business Administration before setting up their organizational structure.

Size

Size is many times the driving factor for a company’s organizational structure. Smaller or home-based businesses do not usually have a vast structure because the business owner is usually responsible for all tasks. Larger business organizations usually require a more intense framework for their organizational structure. Companies with more employees usually require more managers for supervising these individuals. Highly specialized business operations can also require a more formal organizational structure.

Life Cycle

The company’s life cycle also plays an important part in the development of an organizational structure. Business owners attempting to grow and expand their company’s operations usually develop an organizational structure to outline their company’s business mission and goals. Businesses reaching peak performance usually become more mechanical in their organizational structure. This occurs as the chain of command increases from the business owner down to frontline employees. Mature companies usually focus on developing an organizational structure to improve efficiency and profitability. These improvements may be the result of more competitors entering the economic marketplace.

Strategy

Business strategies can also be a factor in a company’s organizational structure development. High-growth companies usually have smaller organizational structures so they can react to changes in the business environment quicker than other companies. Business owners may also be reluctant to give up managerial control in business operations. Small businesses still looking to define their business strategy often delay creating an organizational structure. Business owners are usually more interested in setting business strategies rather than developing and implementing an internal business structure.

Business Environment

The external business environment can also play an important part in a company’s organizational structure. Dynamic environments with constantly changing consumer desires or behavior is often more turbulent than stable environments. Companies attempting to meet consumer demand can struggle when creating an organizational structure in a dynamic environment. More time and capital can also be spent in dynamic environments attending to create and organizational structure. This additional capital is usually a negative expense for many small businesses. Organizational size

The larger an organization becomes, the more complicated its structure. When an organization is small — such as a single retail store, a two-person consulting firm, or a restaurant — its structure can be simple.

In reality, if the organization is very small, it may not even have a formal structure. Instead of following an organizational chart or specified job functions, individuals simply perform tasks based on their likes, dislikes, ability, and/or need. Rules and guidelines are not prevalent and may exist only to provide the parameters within which organizational members can make decisions. Small organizations are very often organic systems.

As an organization grows, however, it becomes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structures. Tasks are highly specialized, and detailed rules and guidelines dictate work procedures. Interorganizational communication flows primarily from superior to subordinate, and hierarchical relationships serve as the foundation for authority, responsibility, and control. The type of structure that develops will be one that provides the organization with the ability to operate effectively. That's one reason larger organizations are often mechanistic—mechanistic systems are usually designed to maximize specialization and improve efficiency.

Organization life cycle

Organizations, like humans, tend to progress through stages known as a life cycle. Like humans, most organizations go through the following four stages: birth, youth, midlife, and maturity. Each stage has characteristics that have implications for the structure of the firm.

•   Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not yet have a formal structure. In a young organization, there is not much delegation of authority. The founder usually “calls the shots.” •   Youth: In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger. The company shifts its attention from the wishes of the founder to the wishes of the customer. The organization becomes more organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. •   Midlife: This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure. More levels appear in the chain of command, and the founder may have difficulty remaining in control. As the organization becomes older, it may also become more mechanistic in structure. •   Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. The emphasis is on improving efficiency and profitability. However, in an attempt to improve efficiency and profitability, the firm often tends to become less innovative. Stale products result in sales declines and reduced profitability. Organizations in this stage are slowly dying. However, maturity is not an inevitable stage. Firms experiencing the decline of maturity may institute the changes necessary to revitalize. Although an organization may proceed sequentially through all four stages, it does not have to. An organization may skip a phase, or it may cycle back to an earlier phase. An organization may even try to change its position in the life cycle by changing its structure.

As the life-cycle concept implies, a relationship exists between an organization's size and age. As organizations age, they tend to get larger; thus, the structural changes a firm experiences as it gets larger and the changes it experiences as it progresses through the life cycle are parallel. Therefore, the older the organization and the larger the organization, the greater its need for more structure, more specialization of tasks, and more rules. As a result, the older and larger the organization becomes, the greater the likelihood that it will move from an organic structure to a mechanistic structure.

Strategy

How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product(differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively(cost-leadership strategy). Each of these strategies requires a structure that helps the organization reach its objectives. In other words, the structure must fit the strategy.

Companies that want to be the first on the market with the newest and best product probably are organic, because organic structures permit organizations to respond quickly to changes. Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic.

Environment

The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic.

•   In a stable environment, the customers' desires are well understood and probably will remain consistent for a relatively long time. Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. •   In a dynamic environment, the customers' desires are continuously changing—the opposite of a stable environment. This condition is often thought of as turbulent. In addition, the technology that a company uses while in this environment may need to be continuously improved and updated. An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. In general, organizations that operate in stable external environments find mechanistic structures to be advantageous. This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments. In contrast, organizations that operate in volatile and frequently changing environments are more likely to find that an organic structure provides the greatest benefits. This structure allows the organization to respond to environment change more proactively.

Technology

Advances in technology are the most frequent cause of change in organizations since they generally result in greater efficiency and lower costs for the firm. Technology is the way tasks are accomplished using tools, equipment, techniques, and human know-how.

In the early 1960s, Joan Woodward found that the right combination of structure and technology were critical to organizational success. She conducted a study of technology and structure in more than 100 English manufacturing firms, which she classified into three categories of core-manufacturing technology:

•   Small-batch production is used to manufacture a variety of custom, made-to-order goods. Each item is made somewhat differently to meet a customer's specifications. A print shop is an example of a business that uses small-batch production. •   Mass production is used to create a large number of uniform goods in an assembly-line system. Workers are highly dependent on one another, as the product passes from stage to stage until completion. Equipment may be sophisticated, and workers often follow detailed instructions while performing simplified jobs. A company that bottles soda pop is an example of an organization that utilizes mass production. •   Organizations using continuous-process production create goods by continuously feeding raw materials, such as liquid, solids, and gases, through a highly automated system. Such systems are equipment intensive, but can often be operated by a relatively small labor force. Classic examples are automated chemical plants and oil refineries. small-batch and continuous processes had more flexible structures, and the best mass-production operations were more rigid structures.

Once again, organizational design depends on the type of business. The small-batch and continuous processes work well in organic structures and mass production operations work best in mechanistic structures.

Organization Design

Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organization chart illustrates the organizational structure. ===================

PRINCIPLES  OF  ORGANIZATIONAL  DESIGN

Division of Labour Departmentalization

Specialization Authority and Responsibility Line and staff authority

Authority and power Contingency Factors Environment and technology

Knowledge technology: task variability & problem analyzability Spans of Control Levels of contro

Centralization and decentralization Contingency Factors

Knowledge technology: task variability & problem analyzability Basic Characteristics of Organizational Structure •   Division of labor: dividing up the many tasks of the organization into specialized jobs

•   Hierarchy of authority: Who manages whom.

•   Span of control: Who manages whom.

•   Line vs staff positions

•   Decentralization

•   Hierarchy of Authority •   Tall vs flat hierarchies

•   Autonomy and control

•   Communication

•   Size

•   Span of Control •   A wide span of control: a large number of employees reporting,

•    A narrow span of control: a small number employees reporting

•   The appropriate span of control depends on the experience, knowledge and skills of the employees and the nature of the task.

•   Line vs Staff Positions •   Line vs Staff:

–    Line positions are those in which people are involved in producing the main goods or service or make decisions relating to the production of the main business.

–   Staff positions These are positions in which people make recommendations to others but are not directly involved in the production of the good or service

•   Decentralization •   The extent to which decision making is concentrated in a few people or dispersed through out the organization

•   Advantage: benefits associated with greater participation and moving the decision closest towards implementation

•   Disadvantage: Lack of perspective and information, lack of consensus -----------------------------------------------------------------------

EFFECTIVE   ORGANIZATIONAL    DESIGNS

Use functional structures  ,  when the organization is small, geographically centralized, and provides few goods and services.

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When the organization experiences bottlenecks in decision making and difficulties in coordination, it has outgrown its functional structure.

Use a divisional structure when the organization is relatively large, geographically dispersed, and/or produces wide range of goods/services.

Use lateral relations to offset coordination problems in functional and divisional structures.

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When the organization needs constant coordination of its functional activities, then lateral relations do not provide sufficient integration. Consider the matrix structure.

To adopt the matrix structure effectively, the organization should modify many traditional management practices.

=================================================================== Organization design is central to an enterprise’s ability to be market driven, adaptive, innovative, and more – in short, to be able to compete effectively. The design  approach is guided by the following core principles:    Organization design is more than just structure – it is the integration of structure, processes, people, culture, systems and technology        Strategy is the starting point – organization design must be driven by, and supportive of, overall strategy    Clarity and accountability underpin sound organization design –when good people know what to do and are held accountable, they achieve results    Transitioning to a new organization end-state requires an integrated approach to change management ======================================================= Strategic Organization Design

The Need:

Senior organizational leaders are constantly facing the need to restructure their organizations.  Changes in leadership, a shift in strategy, or changing factors within an organization often create the need for reorganizing.  Organization design is one of the most potent tools available to senior managers for shaping the direction of their organizations.  It can be a key leverage point for directing attention and energy to certain critical activities in an organization.

Organizational leaders, however, often lack the tools necessary to help them in making decisions about how to structure their organizations.  Efforts at restructuring are often uneven and unsystematic.  Decisions to reorganize are often made with insufficient information and without a clear process to guide the effort.  The result is that reorganizations often fail to produce the desired effects, leading instead to further confusion or problems within the organization.

The Process:

Strategic Organization Design is a four-phase participative process intended to provide senior leaders with a systematic, step-by-step method for examining the structure of their organizations.  The four-phases are as follows:

?  Preliminary Analysis

?   Strategic Design

?   Operational Design

?   Implementation

The preliminary analysis involves the collection of information necessary for making design decisions.  Structured interviews are conducted focusing on the strategy of the organization, the key tasks being performed and current strengths and weaknesses of the organization.  Operational design involves the structuring of supervisory roles, information flows, and jobs within the context of the strategic design decisions.  Implementation involves managing the transition from the current design to a new design.

==========================================

Strategic Organization Design

The key restructuring decisions are made during the strategic design phase.  This phase involves six steps:

Step 1. Identify design criteria.

Step 2. Generate grouping alternatives.

Step 3. Evaluate grouping alternatives against the criteria.

Step 4. Generate linking mechanisms.

Step 5. Conduct an impact analysis.

Step 6. Select a new design.

The goal of the strategic design phase is to develop grouping and linking combinations that best support the strategy and basic work of the organization.  Before any design decisions are made, the management group identifies design criteria - statements about what the new design will need to be able to do.  These statements are reflections of the organization's strategy, its basic tasks, and the current strengths and weaknesses identified during the preliminary analysis.

Next, several different grouping alternatives are developed by the group and assessed against the design criteria.  Linking or coordinating mechanisms such as liaison roles, integrator departments, etc. are then generated for each of the possible grouping alternatives.  This step depends on the need for information exchange between groups in a particular design.  Finally, an impact analysis is conducted to determine the effect that the new design will have on the organization.  At this point a final design can be selected using the information and ideas generated during each step.  Often the final design is a hybrid of several alternatives considered during the process.

Who Should Be Involved?

This process is highly participative, involving each member of senior leadership staff of an organization, i.e. a Vice President and each of his or her direct reports.  The process draws heavily on the knowledge of the organization that each senior staff member has, and its success depends on the sharing of their ideas, concerns, and work-related needs.  To complete the process usually requires one to two days time for each member of the senior staff.

The process is not only for those groups who have an immediate need to restructure.  Leadership groups who only want to modify their organization slightly, or who simply want to reexamine their current structure may also benefit from using this process.  The process can help managers to solidify their strategy and ensure that their structure is consistent with it.

Strategic Organization Design Process Outline

Objective:    To provide a systematic participative process to help leaders structure their organizations in a way which helps accomplish the overall business strategy as well as the day-to-day work.

Phase I: Preliminary Analysis          Conduct structured interviews to:          ? Identify strengths and weaknesses of the existing organization          ? Clarify issues related to business strategy and organizational design

Phase II: Strategic Organization Design

?  Design Criteria:  Review information from the preliminary analysis and     generate criteria for a new design

? Grouping:  Generate several design options and evaluate against criteria

- Grouping By Output – Product, Service, or Project

- Grouping By Activity – Function, Work Process, Knowledge or Skill

- Grouping By Customer – Market Segment, Customer Need, Or Geography

?  Linking: Identify information flow requirements, select ways to     facilitate the flow of information to meet the requirements, and     evaluate against the criteria

?  Impact Analysis: Analyze each option to determine feasibility given the     existing leadership skills, power relationships, and work environment.

Phase III: Operational Design

?  Carry out the operational homework necessary to put organization design     decisions in place

?  Design work charters, reporting relationships, information flows, etc.

Phase IV: Implementation

? Develop a strategy for implementing the new design

? Assess the potential resistance to the new organization

? Determine the best way to manage the transition from the old     organization to the new one.

============================================== EXAMPLE S   OF   ORGANIZATION DESIGN / STRUCTURE

1.APPLE  COMPUTERS THE  EMPHASIS  IS  ON

(1) How to divide work among the organization's subunits?(2) How to coordinate and control the efforts of the units created? A WORLDWIDE PRODUCT STRUCTURE

1   Implements strategies that emphasize global products

2   Each product division assumes responsibility to produce and sell its products or services though out the world  

A WORLDWIDE GEOGRAPHIC STRUCTURE 1   Implements a multinational or regional strategy 2   Country-level divisions 3   Separate divisions for large market countries       

APPLE’S GEOGRAPHIC STRUCTURE

HYBRIDS AND WORLDWIDE MATRIX STRUCTURE

1   Support strategies that include local adaptation and concern for globalization.  

2   Mix geographic units with product or function units

3   Managers report to multiple supervisors

4   Conflict, confusion, loss of accountability

5   Amplified by distance, time, culture, language

THE TRANSNATIONAL NETWORK STRUCTURE

1   Implements the transnational strategy

2   Combines functional, product, and geographic subunits in networks

3   Has no symmetry or balance in its structural form 4   Resources, people, and ideas flow in all directions  

5   Nodes or centers in the network coordinate product, functional, and geographic information NETWORK STRUCTURES HAVE

1   Dispersed subunits

2   Specialized operations

3   Interdependent relationships

Key characteristics of transnational organizations

1   Multidimensional perspectives

2   Distributed, interdependent capabilities

3   Flexible integrative processes

Multidimensional perspectives

1   National subsidiary management senses needs of local customers and host governments

2   Global business management tracks competitors and coordinates response

3   Functional management concentrates knowledge and facilitates transfer among organizational units

Distributed, interdependent capabilities

1   Centralize activities for which global scale or centralized knowledge is important

2   Involve relevant national units in developing technology, products, marketing strategy

3   Interdependence of worldwide units is high – the integrated network

Flexible integrative processes

1   Centralization

2   Formalization

3   Socialization

EXAMPLE PRODUCT LINKS

CONTROL AND COORDINATION SYSTEMS

1   Top managers must design organizational systems to control and coordinate the activities of their subunits.         BASIC FUNCTIONS OF CONTROL 2   Measure or monitor the performances of subunits

3   Provide feedback to subunit managers regarding the effectiveness of their units  

COORDINATION SYSTEMS

1   Provide information flows among subsidiaries 2   Link the organization horizontally

CONTROL SYSTEMS

1   Output 2   Bureaucratic    

3   Decision making

4   Cultural

========================

EXAMPLE S   OF   ORGANIZATION DESIGN / STRUCTURE

2.  MSA  SAFETY  CO. THE  EMPHASIS  IS  ON

(1) How to divide work among the organization's subunits?(2) How to coordinate and control the efforts of the units created? A  REGIONAL  PRODUCT STRUCTURE

3   Implements strategies that emphasize REGIONAL  products

4   Each product division assumes responsibility to produce and sell its products or services though out the REGION. A  REGIONAL  GEOGRAPHIC STRUCTURE 4   Implements a  regional strategy 5   Country-level divisions    

MSA ’S  REGIONAL  STRUCTURE MATRIX STRUCTURE

6   Support strategies that include local adaptation and concern for REGION.  

7   Mix geographic units with product or function units

8   Amplified by distance, time, culture, language

THE TRANSNATIONAL NETWORK STRUCTURE

6   Implements the transnational strategy

7   Combines functional, product, and geographic subunits in networks

8   Has no symmetry or balance in its structural form 9   Resources, people, and ideas flow in all directions  

10   Nodes or centers in the network coordinate product, functional, and geographic information NETWORK STRUCTURES HAVE

4   Dispersed subunits

5   Specialized operations

6   Interdependent relationships

Key characteristics of transnational organizations

4   Multidimensional perspectives

5   Distributed, interdependent capabilities

6   Flexible integrative processes

Multidimensional perspectives

4   National subsidiary management senses needs of local c
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Ms-01 Assignment Questions

Postby Sinai » Tue Dec 06, 2016 7:08 am

1.What are the essential components/indicators/determinants of organisational climate and organisationalculture? Take example of two organisations, list out the component/ indicators/ dimensions of their climate and culture and explain their corresponding perceived major focus, wit example. Briefly describe the organisations you are referring t.

2. what are elements of an organisation structure, and the factors influencing its choice/ Take example of two organisations and explain with logic as to how are their structures suited to their requirements or influenced by other factors.

3. why do groups get formed? what are the stages of group formation? Explain the formation of a group and relate it to the stages with brief description of purpose and structure of the group, as you are aware of. Also briefly describe the organisation, if this group was the part of it.

ANSWER: 1.          What are the essential icomponents of an effective MIS and why? Describe the MIS of an organization ,known to you or you are familiar with, giving detailed description and critically evaluate its effectiveness. Briefly describe the organization, youare referring to.

. A management information system(MIS) is 'an integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computers, manual procedures, models for analysis, planning, control and decision making, and a database' . MIS facilitates managerial functioning. Management information is an important input at every level in the organization for decision making, planning, organizing, implementing, and monitoring and controlling. MIS is valuable because of its content, form and timing of presentation. In the context of different levels of decision making, information can be described as: • source, • data, • inferences and predictions drawn from data, • value and choices(evaluation of inferences with regard to the objectives and then choosing a course of action), and • action which involves course of action.

The MIS concept comprises three interrelated and interdependent key elements: management, system and information -----------------------------------------------------

Characteristics of MIS:

1. Integration In MIS, whole system is integrated with each movement of business. It will be supportive to produce more positive information. 2. Central Database

It is also the characteristics of MIS that it has a central database. Only correct validation, anyone can access to information.

3. Software Based System MIS is software base system which is used in management accounting. It needs continually updates. Moreover, software will process data automatically. 4. Flexibility MIS is more flexible system than any other system of management. We can adjust input data and processing technique according to need of business and get information according to this. We can also divide MIS in sub systems for proper recording and process of data. MIS is mainly designed to take care of the needs of the managers in the organization.

MIS aids in integrating the information generated by various departments of the organization.

MIS helps in identifying a proper mechanism of storage of data.

MIS also helps in establishing mechanism to eliminate redundancies in data.

MIS as a system can be broken down into sub systems.

The role and significance of MIS in business and its classification is explained. It is possible to understand the various phases of development in MIS based on the type of system required in any organization. Components Of MIS

COMPONENTS OF MANAGEMENT INFORMATION SYSTEM

Hardware Input and output devices constitute the hardware components of MIS.

Software The programs and applications that convert data into machine-readable language are known as software.

Procedures Procedures are sets of rules or guidelines, which an organization establishes for the use of a computer-based information system.

Personnel The computer experts, managers, users, analysts, programmers, database managers, and many other computer professionals who utilize the computer-based information systems are the personnel in a management information system.

COMPONENTS OF MANAGEMENT INFORMATION SYSTEM Important Considerations in designing Management Information System MIS  DESIGNING  IS  A  STRUCTURED   PROCESS.

STEP 1 = MIS- MANAGEMENT  INFORMATION  SYSTEM

"An integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computerized and manual procedures; models for analysis, planning, control and decision making; and a database." MIS principal concerns Facilitate decision making by supplying the information needed in an up-to-date and accurate form • to the people who need it

• on time

• in a usable form

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STEP  2 =  MIS  ELEMENTS Management functions

Planning

Controlling

Decision making

Information system

Management information

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STEP   3 =  STEPS  IN  PLANNING 1. Selecting objectives

2. Identifying activities required to achieve the stipulated objectives

3. Describing the resources or skills, or both, necessary to perform the activities

4. Defining the duration of each activity to be undertaken

5. Determining the sequence of the activities

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STEP  4 = INFORMATION   REQUIREMENTS   DURING  PLANNING 1. Supplying the information needed by the planner at each step 2. Establishing procedures for procuring the information at each step(including the means to view alternatives) 3. Arranging for storage of the approved plans as information for the control process 4. Devising an efficient method for communicating the plans to other members in the organization

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STEP  5 =  CONTROLLING Controlling involves 1. Establishing standards of performance in order to reach the objective

2. Measuring actual performance against the set standards

3. Correcting deviations to ensure that actions remain on course

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STEP   6  = REQUIREMENTS  FOR  CONTROLLING 1. Defining expectations in terms of information attributes

2. Developing the logic for reporting deviations to all levels of management prior to the actual occurrence of the deviation ------------------------------------------------------------------------------

STEP   7  = DECISION  MAKING   

Levels of decision making • Strategic

• Tactical

• Technical

Elements of decision making • Model

• Constraints

• Optimization

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STEP  8 = SYSTEMS "A set of elements forming an activity or a procedure/scheme seeking a common goal or goals by operating on data and/or energy and/or matter in a time reference to yield information and/or energy and/or matter." ----------------------------------------------------------------------------------

STEP   9=  PERCEIVING  THE  SYSTEM 1. Some components, functions and processes performed by these various components 2. Relationships among the components that uniquely bind them together into a conceptual assembly which is called a system 3. An organizing principle which is an overall concept that gives it a purpose 4. The fundamental approach of the system is the interrelationship of the sub-systems of the organization

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STEP  10 = BASIC  PARTS  OF  THE  ORGANIZATION 1.   The individual

2.   The formal and informal organization

3.   Patterns of behaviour arising out of role demands of the organization

4.   The role perception of the individual

5.   The physical environment in which individuals work

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STEP  11 =  WHY  A  SYSTEMS   APPROACH • Developing and managing operating systems(e.g., money flows, manpower systems)

• Designing an information system for decision making

• Systems approach and MIS

• MIS aims at interrelating, coordinating and integrating different sub-systems by providing information required to facilitate and enhance the working of the sub-systems and achieve synergistic effects --------------------------------------------------

STEP  12 = INFORMATION 'A set of classified and interpreted data used in the decision making process" Information has also been defined as some tangible entity which serves to reduce uncertainty about future state or events In the context of different levels of decision making, information can be described as: • source • data • inference and predictions drawn from the data • value and choices(evaluation of inferences with regard to the objectives, and then choosing courses of action) • action which involves a course of action

The value of management information lies in its content, form and timing of presentation ######################################################-

STEP  13 = MIS  AS   A  PYRAMIDAL   STRUCTURE TOP  LEVEL

SENIOR  MANAGEMENT

MIDDLE  MANAGEMENT

FIRSTLINE  MANAGEMENT

STAFF  LEVEL  OPERATION

##############################################################

STEP  14 = CONCEPTUAL  BASIS  OF  MIS 1. Concepts of organization 2. Organizational theories, principles, structure, behaviour and processes such as communication, power and decision making 3. Motivation and leadership behaviour

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STEP  15 = IMPLICATIONS  OF  THE  ORGANIZATIONAL STRUCTURE  FOR MIS Concepts: • Hierarchy of authority

• Specialization

• Formalization

• Centralization

• Modification of the basic model

• Information model of organization

• Organizational culture

• Organizational power

• Organizational growth cycle

• Goal displacement

• Organizational learning

• Project model of organizational change

• Case for stable system

• Systems that promote organizational change

• Organizations as socio-technical systems

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STEP  16 = INFORMATION  REQUIREMENTS  FOR  MIS 1. Assessing information requirements

2. Levels of information requirements • Organizational level

• Application level

• Technical

• Database

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STEP  17 = STRATEGIES FOR DETERMINING INFORMATION REQUIREMENTS 1. Asking

2. Deriving from an existing information system

3. Synthesizing from characteristics of the utilizing system

4. Discovering from experimentation with an involving information system

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STEP  18 =  STRATEGY  FOR DETERMINING DATA  REQUIREMENTS 1. Identify elements in the development process utilizing system: • Information systems or applications

• Users

• Analysts

2. Identify process uncertainties: • Existence and availability of a set of usable requirements

• Ability of users to specify requirements

• Ability of analysts to elicit and evaluate requirements

3. Evaluate the effects of elements in the development process over process uncertainties

4. Evaluate the combined effects of the process uncertainties on overall requirements uncertainty

5. Select a primary strategy for requirements determination based on the overall requirements uncertainty

Uncertainty level    Strategy Low    • Asking or deriving from an existing system   • Synthesis from characteristics of utilizing systems High    • Discovering from experimentation 6. Select one or more from the set of methods to implement the primary strategy

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STEP 19 =  TYPES  OF  MIS 1. Databank information system

2. Predictive information system

3. Decision making information system

4. Decision taking information system

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STEP   20  = THE  MIS  PROCESS 1. Understand the organization

2. Analyse the organization's information requirements

3. Plan overall strategy

4. Review

5. Preliminary analysis

6. Feasibility assessment

7. Detailed fact finding

8. Analysis

9. Design

10. Development

11. Cutover

12. Obtain conceptual schema

13. Recruit database administrator

14. Obtain logical schema

15. Create data dictionary

16. Obtain physical schema

17. Create database

18. Modify data dictionary

19. Develop sub-schemas

20. Modify database

21. Amend database

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STEP   21=  MIS  CRITERIA ?• Management by exception

• Accuracy

• Adaptability

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STEP  22 = STRATEGIES  FOR  DETERMINING  MIS DESIGN • Organization-chart approach

• Integrate-later approach

• Data-collection approach

• Database approach

• Top-down approach

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@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

THE  ORGANIZATION, I   AM  REFERRING  TO

The  organization, I am  familiar  with  is  a -a  large  manufacturer/ marketer of  safety products

-the products  are  used  as  [personal  protection safety] [ industrial  safety]

-the products  are  distributed through  the distributors as well as  sold directly

-the  products  are  sold  to various  industries like  mining/fireservices/defence/

as  well  as  to  various  manufacturing  companies.

-the  company employs  about  235  people.

-the  company  has  the following  functional   departments

*marketing

*manufacturing

*sales

*finance/ administration

*human resource

*customer  service

*distribution

*warehousing/  transportation

*TQM  

=============================================== Criteria for MIS five criteria for an MIS: • Relevance Information should be relevant to the individual decision-makers at their level of management. • Management by exception Managers should get precise information pertaining to factors critical to their decision making. • Accuracy The database from which information is extracted should be up-to-date, contextually relevant and validated. • Timeliness The information should be provided at the time required. • Adaptability The information system should have an in-built capability for re-design so that it can suitably adapt to environmental changes and changing information requirements.

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Strategies for determining MIS design

MIS design should be specific to an organization, respecting its age, structure, and operations. Six strategies for determining MIS design have been suggested : • Organization-chart approach Using this approach, the MIS is designed based on the traditional functional areas, such as finance, administration, production, R&D and extension. These functional areas define current organizational boundaries and structure. • Integrate-later approach Largely a laissez faire approach, it does not conform to any specified formats as part of an overall design. There is no notion of how the MIS will evolve in the organization. Such an MIS becomes difficult to integrate. In today's environment - where managers demand quick and repeated access to information from across sub-systems - the integrate-later approach is becoming less and less popular. • Data-collection approach This approach involves collection of all data which might be relevant to MIS design. The collected data are then classified. This classification influences the way the data can be exploited usefully at a later stage. The classification therefore needs to be done extremely carefully. • Database approach A large and detailed database is amassed, stored and maintained. The database approach is more and more accepted for two main reasons: first, because of data independence it allows for easier system development, even without attempting a complete MIS; and, second, it provides management with immediate access to information required. • Top-down approach The top-down approach involves defining the information needs for successive layers of management. If information required at the top remains relatively stable in terms of level of detail, content and frequency, the system could fulfil MIS requirements . The usefulness of this approach depends on the nature of the organization. It can be suitable for those organizations where there is a difference in the type of information required at the various levels. • Total-system approach In this approach the interrelationships of the basic information are defined prior to implementation. Data collection, storage and processing are designed and done within the framework of the total system. This approach can be successfully implemented in organizations which are developing.

Management and the MIS process

An MIS is directed towards the managerial functions of planning, controlling and monitoring, and decision making. Planning Planning consists of five sequential and interactive steps . These are: • selecting objectives;

• identification of the activities which are required to achieve the stipulated objectives;

• detailing the resources - including the various skills - required to undertake the activities;

• determining the duration of each activity to be performed; and

• defining the sequence of the activities.

The basic requirements during the planning process of most importance in designing and implementing an MIS for an organization are : • providing the information required by the planner at each step of planning; • establishing procedures for obtaining the information; • arranging for storage of the approved plans, as these will provide the information requisite to monitoring and controlling; and • evolving methods for communicating the plans to employees in the organization.

Monitoring and controlling Controlling 'compels events to conform to plans' . It involves: • establishing standards of performance in order to reach the objective;

• measuring actual performance against the set standards; and

• keeping actions on course by correcting deviations as they appear(mid-course corrections).

The requirements for successful development of a control system are: • defining expectations in terms of information attributes; and

• developing the logic for reporting deviations to all levels of management prior to the actual occurrence of the deviation.

Decision making Decision making is the process of selecting the most desirable or optimum alternative to solve a problem or achieve an objective. The quality and soundness of managerial decisions is largely contingent upon the information available to the decision-maker. decision making on three levels of a continuum: • Strategic decisions are future-oriented because of uncertainty. They are part of the planning activity. • Tactical decision making combines planning activities with controlling. It is for short-term activities and associated allocation of resources to them to achieve the objectives. • Technical decision making is a process of ensuring efficient and effective implementation of specific tasks.

Elements of decision making The four components of the decision making process are : • Model A model is an abstract description of the decision problem. The model may be quantitative or qualitative. • Criteria The criteria must state how goals or objectives of the decision problem can be achieved. When there is a conflict between different criteria, a choice has to be made through compromise. • Constraints. Constraints are limiting factors which define outer limits and have to be respected while making a decision. For example, limited availability of funds is a constraint with which most decision makers have to live. • Optimization Once the decision problem is fully described in a model, criteria for decision making stipulated and constraints identified, the decision-maker can select the best possible solution.

--------------------------------------------------------------------------- The information  SYSTEM   used  for   various  purposes,

-strategic planning

-delivering increased  productivity

-reducing  service cycles

-reducing  product development  cycles

-reducing  marketing life cycles

-increasing  the  understanding  of  customers' needs

-facilitating business and  process re-engineering.

THE  INFORMATION  SYSTEM  IS  USED   as an  information

utility  to

-support  policy making

-meet  regulatory  and  legislative requirements

-support  research  and  development

-support  consistent and  rapid  decision  making

-enable  effective  and efficient  utilization  of resources

-provide evidence of  business transactions

-identify  and  manage  risks

-evaluate  and document quality, performance and achievements.

MAKING INFORMATION  AVAILABLE

The  availability  of  information is  fundamental  to  the  decision making process. Decisions  are  made within the organization at

-STRATEGIC

-OPERATIONAL

-PROGRAMMES

-ACTIVITY  LEVEL.

The  information  needs and decision making  activities  of the  

various  levels of  management

SENIOR  MANAGEMENT

Strategic business  direction

-information  for  strategically positioning  the  organization

-competitive  analysis and  performance evaluation,

-strategic  planning and policy,

-external factors that  influence  the  direction

etc

MID LEVEL MANAGEMENT

Organizational and operational functions

-information  for  coordination  of  work units

-information  for  delivery  programmes

-evaluation  of  resources usage

-budget control

-problem  solving

-operational  planning

etc

MID  LEVEL  MANAGEMENT

Programme  management within units

-information  for  implementing programmes

-information  for  managing   programmes

-management   of  resources usage

-project scheduling

-problem  solving

-operational  planning

etc

LINE  MANAGEMENT

Activity management -information for  routine  decision  making

-information  for  problem solving

-information  for  service delivery

etc.

MANAGEMENT  SUPPORT  SYSTEMS

The  management  oriented  support  systems   provide support

to  various  levels  of  management. Executive  Information  Systems  allow  executives to see where  a

problem  or  opportunity  exists.

Decision  Support  Systems are  used  by  mid-level management  

to support  the  solution  of  problems that  require judgement

by  the  problem solver.

Line  Managers   use Management  Reporting Systems  for  

routine operational  information. Computer-based or manual system that transforms data into information useful in the support of decision making. MIS can be classified as performing three functions:

(1) To generate reports-for example, financial statements, inventory status reports, or performance reports needed for routine or non-routine purposes.

(2) To answer what-if questions asked by management. For example, questions such as "What would happen to cash flow if the company changes its credit term for its customers?" can be answered by MIS. This type of MIS can be called SIMULATIONS.

(3) To support decision making. This type of MIS is appropriately called DECISION SUPPORT  SYSTEM   [  DSS ].   DSS attempts to integrate the decision maker, the data base, and the quantitative models being used.

-STRATEGIC   MANAGEMENT   INFORMATION  FOR  top  management.

-TACTICAL  MANAGEMENT  INFORMATION  FOR  middle  management.

-OPERATIONAL  MANAGEMENT INFORMATION  for  firstline  management.

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Types of Systems

Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows:

Accounting management information systems: All accounting reports are shared by all levels of accounting managers.

Financial management information systems: The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.

Manufacturing management information systems: More than any functional area, operations have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factory. Thus there is no need for warehousing.

Marketing management information systems: A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example.

Human resources management information systems: Human Resource Management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.

The above are examples of the major management information systems. There may be other management information systems if the company is identified by different functional areas.

FUNCTIONAL   INFORMATION  SYSTEMS These  include

-Accounting  Information  Systems

-Marketing  Information  Systems

-Enterprise  Information  Systems

-Decision  Support  Information  Systems

-Executive    Information  Systems

-Quality  Management   Information  Systems

-Manufacturing   Information  Systems

-Financial   Information  Systems

-Human resource   Information  Systems FOR  MANAGEMENT ,  MIS

-PROVIDE   INFORMATION   FOR  DECISION  MAKERS  TO  MAKE  SOLUTIONS

FOR   THE  MOST  CHALLENGING  SITUATIONS.

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-PROVIDE    INFORMATION  FOR  MAKING  STRATEGIC  DECISIONS

IN A  COMPETITIVE  SITUATION.

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-PROVIDE  INFORMATION  FOR   STRATEGIC  PLANNING

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-PROVIDE  INFORMATION  FOR  CORPORATE  PLANNING

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-PROVIDE  INFORMATION  FOR  BUSINESS  PLANNING

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-PROVIDE  INFORMATION  FOR  MARKETING  PLANNING

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-PROVIDE  INFORMATION  FOR  INDUSTRY BENCHMARKING.

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-PROVIDE  INFORMATION  FOR  PROCESS  ENGINEERING

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-PROVIDE  INFORMATION  FOR  PRICING  MANAGEMENT

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-PROVIDE INFORMATION  FOR  REVENUE  MANAGEMENT

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-PROVIDE  INFORMATION FOR  DEVELOPING   STRATEGIC  ALLIANCES.

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-PROVIDE  INFORMATION  FOR   ALLOCATING  OF   RESOURCES

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-PROVIDE  INFORMATION  FOR  RESOURCE  MANAGEMENT

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-PROVIDE  INFORMATION  FOR  MANAGEMENT  INFORMATION SYSTEMS

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-PROVIDE  INFORMATION  FOR  Identifying strategic shifts and positioning  WITH   clients in anticipation of several possible outcomes – scenario planning --is a core part of our strategic and tactical planning. ----------------------------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  TO  SEE  Changes in market conditions, technical advances, and economic issues will all affect THE  INDUSTRY /  BUSINESS  in the future. --------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  TO   find the most effective marketing strategies in order to succeed in these challenging times. --------------------------------------------------------------------------------------------------------------------------

-PROVIDE  INFORMATION  FOR  PROPRIETARY  DATABASES  AND  ANALYTICAL  SUPPORT.

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-PROVIDE  INFORMATION  ON  ECONOMIC  CONDITIONS-PAST/PRESENT/FUTURE.

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-PROVIDE  INFORMATION  THAT  enables  to provide  valuable understanding of the opportunities, challenges, potential pitfalls and market implications

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-PROVIDE  INFORMATION  WHICH   helps organizations realize the most value from their  assets. ---------------------------------------------------------------------------------------------------------------------

-PROVIDES  INFORMATION  TO  CONDUCT portfolio management, remarketing assistance, sale and lease negotiations, asset sourcing and acquisition, appraisal and valuation,  auditS and management and expert testimony. ----------------------------------------------------------------

-PROVIDE  THE  RIGHT INFORMATION for  a clear and disciplined approach to financial planning is vital to ensure success.

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-PROVIDE  INFORMATION  FOR  OBJECTIVE  PLANNING.

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-PROVIDE  INFORMATION   FOR the execution of effective business planning and sound management usually defines these differences in profitability.

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-PROVIDE   INFORMATION  TO   analyze and prioritize the  BUSINESS  drivers to help to  achieve a superior competitive position. Vital to this process is an understanding of the economic advantages of scale and scope. -------------------------------------------------------------------------------------------------------

-PROVIDES   INFORMATION  FOR  Operational excellence results in the attainment of world-class quality and productivity in the delivery of services to customers

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-PROVIDES  INFORMATION  to develop a clear understanding of their operating practices and associated costs, particularly relative to competitors. ------------------------------------------------------------------------------------------------

When  running a  BUSINESS, the right information systems can have a critical impact operating costs, operating effectiveness, and customer satisfaction.

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======================================================

ADVANTAGES An MIS provides the following advantages. 1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound decision - making . Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations. 2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts. 3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization . 5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost . 6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information. reference: http://www.management-hub.com/information-management-advantages.html DISADVANTAGES

1.highly senstive requires constant monitoring. 2.buddgeting of MIS extremely difficult. 3.Quality of outputs governed by quality of inputs. 4.lack of flexiblity to update itself. 5.effectiveness decreases due to frequent changes in top management 6.takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc...

•   

Depending on organization deployment, usage and extraneous factors, some disadvantages related to Management Information Systems can come to the fore. Allocation of budgets for MIS upgrades, modifications and other revisions can be quite tricky at times. If budgets are not allocated uniformly or as per immediate requirements, key functionalities might get effected and benefits might not be realized consistently. Integration issues with legacy systems can affect the quality of output and vital business intelligence reports.

Constant Monitoring Issues

•   Change in management, exits or departures of department managers and other senior executives has a broad effect on the working and monitoring of certain organization practices including MIS systems. Since MIS is a critical component of an organization's risk management strategy and allied systems, constant monitoring is necessary to ensure its effectiveness. Quality of inputs into MIS needs to be monitored; otherwise consistency in the quality of data and information generated gets effected. Managers are not able to direct business, operational and decision-making activities with the requisite flexibility.

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4. What are the element of an organization structure, and the factors influencing its choice? Take example of  two organizations and explain with logic as to how are their structures suited to their requirements or influenced by the other factors.

Factors Affecting Organizational Design

Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology.

Organizational structure is the framework companies use to outline their authority and communication processes. The framework usually includes policies, rules and responsibilities for each individual in the organization. Several factors affect the organizational structure of a company. These factors can be internal or external. Small business owners must be responsible for creating their companies organizational structure framework. Business owners may use a management consultant or review information from the Small Business Administration before setting up their organizational structure.

Size

Size is many times the driving factor for a company’s organizational structure. Smaller or home-based businesses do not usually have a vast structure because the business owner is usually responsible for all tasks. Larger business organizations usually require a more intense framework for their organizational structure. Companies with more employees usually require more managers for supervising these individuals. Highly specialized business operations can also require a more formal organizational structure.

Life Cycle

The company’s life cycle also plays an important part in the development of an organizational structure. Business owners attempting to grow and expand their company’s operations usually develop an organizational structure to outline their company’s business mission and goals. Businesses reaching peak performance usually become more mechanical in their organizational structure. This occurs as the chain of command increases from the business owner down to frontline employees. Mature companies usually focus on developing an organizational structure to improve efficiency and profitability. These improvements may be the result of more competitors entering the economic marketplace.

Strategy

Business strategies can also be a factor in a company’s organizational structure development. High-growth companies usually have smaller organizational structures so they can react to changes in the business environment quicker than other companies. Business owners may also be reluctant to give up managerial control in business operations. Small businesses still looking to define their business strategy often delay creating an organizational structure. Business owners are usually more interested in setting business strategies rather than developing and implementing an internal business structure.

Business Environment

The external business environment can also play an important part in a company’s organizational structure. Dynamic environments with constantly changing consumer desires or behavior is often more turbulent than stable environments. Companies attempting to meet consumer demand can struggle when creating an organizational structure in a dynamic environment. More time and capital can also be spent in dynamic environments attending to create and organizational structure. This additional capital is usually a negative expense for many small businesses. Organizational size

The larger an organization becomes, the more complicated its structure. When an organization is small — such as a single retail store, a two-person consulting firm, or a restaurant — its structure can be simple.

In reality, if the organization is very small, it may not even have a formal structure. Instead of following an organizational chart or specified job functions, individuals simply perform tasks based on their likes, dislikes, ability, and/or need. Rules and guidelines are not prevalent and may exist only to provide the parameters within which organizational members can make decisions. Small organizations are very often organic systems.

As an organization grows, however, it becomes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structures. Tasks are highly specialized, and detailed rules and guidelines dictate work procedures. Interorganizational communication flows primarily from superior to subordinate, and hierarchical relationships serve as the foundation for authority, responsibility, and control. The type of structure that develops will be one that provides the organization with the ability to operate effectively. That's one reason larger organizations are often mechanistic—mechanistic systems are usually designed to maximize specialization and improve efficiency.

Organization life cycle

Organizations, like humans, tend to progress through stages known as a life cycle. Like humans, most organizations go through the following four stages: birth, youth, midlife, and maturity. Each stage has characteristics that have implications for the structure of the firm.

•   Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not yet have a formal structure. In a young organization, there is not much delegation of authority. The founder usually “calls the shots.” •   Youth: In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger. The company shifts its attention from the wishes of the founder to the wishes of the customer. The organization becomes more organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. •   Midlife: This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure. More levels appear in the chain of command, and the founder may have difficulty remaining in control. As the organization becomes older, it may also become more mechanistic in structure. •   Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. The emphasis is on improving efficiency and profitability. However, in an attempt to improve efficiency and profitability, the firm often tends to become less innovative. Stale products result in sales declines and reduced profitability. Organizations in this stage are slowly dying. However, maturity is not an inevitable stage. Firms experiencing the decline of maturity may institute the changes necessary to revitalize. Although an organization may proceed sequentially through all four stages, it does not have to. An organization may skip a phase, or it may cycle back to an earlier phase. An organization may even try to change its position in the life cycle by changing its structure.

As the life-cycle concept implies, a relationship exists between an organization's size and age. As organizations age, they tend to get larger; thus, the structural changes a firm experiences as it gets larger and the changes it experiences as it progresses through the life cycle are parallel. Therefore, the older the organization and the larger the organization, the greater its need for more structure, more specialization of tasks, and more rules. As a result, the older and larger the organization becomes, the greater the likelihood that it will move from an organic structure to a mechanistic structure.

Strategy

How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product(differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively(cost-leadership strategy). Each of these strategies requires a structure that helps the organization reach its objectives. In other words, the structure must fit the strategy.

Companies that want to be the first on the market with the newest and best product probably are organic, because organic structures permit organizations to respond quickly to changes. Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic.

Environment

The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic.

•   In a stable environment, the customers' desires are well understood and probably will remain consistent for a relatively long time. Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. •   In a dynamic environment, the customers' desires are continuously changing—the opposite of a stable environment. This condition is often thought of as turbulent. In addition, the technology that a company uses while in this environment may need to be continuously improved and updated. An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. In general, organizations that operate in stable external environments find mechanistic structures to be advantageous. This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments. In contrast, organizations that operate in volatile and frequently changing environments are more likely to find that an organic structure provides the greatest benefits. This structure allows the organization to respond to environment change more proactively.

Technology

Advances in technology are the most frequent cause of change in organizations since they generally result in greater efficiency and lower costs for the firm. Technology is the way tasks are accomplished using tools, equipment, techniques, and human know-how.

In the early 1960s, Joan Woodward found that the right combination of structure and technology were critical to organizational success. She conducted a study of technology and structure in more than 100 English manufacturing firms, which she classified into three categories of core-manufacturing technology:

•   Small-batch production is used to manufacture a variety of custom, made-to-order goods. Each item is made somewhat differently to meet a customer's specifications. A print shop is an example of a business that uses small-batch production. •   Mass production is used to create a large number of uniform goods in an assembly-line system. Workers are highly dependent on one another, as the product passes from stage to stage until completion. Equipment may be sophisticated, and workers often follow detailed instructions while performing simplified jobs. A company that bottles soda pop is an example of an organization that utilizes mass production. •   Organizations using continuous-process production create goods by continuously feeding raw materials, such as liquid, solids, and gases, through a highly automated system. Such systems are equipment intensive, but can often be operated by a relatively small labor force. Classic examples are automated chemical plants and oil refineries. small-batch and continuous processes had more flexible structures, and the best mass-production operations were more rigid structures.

Once again, organizational design depends on the type of business. The small-batch and continuous processes work well in organic structures and mass production operations work best in mechanistic structures.

Organization Design

Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organization chart illustrates the organizational structure. ===================

PRINCIPLES  OF  ORGANIZATIONAL  DESIGN

Division of Labour Departmentalization

Specialization Authority and Responsibility Line and staff authority

Authority and power Contingency Factors Environment and technology

Knowledge technology: task variability & problem analyzability Spans of Control Levels of contro

Centralization and decentralization Contingency Factors

Knowledge technology: task variability & problem analyzability Basic Characteristics of Organizational Structure •   Division of labor: dividing up the many tasks of the organization into specialized jobs

•   Hierarchy of authority: Who manages whom.

•   Span of control: Who manages whom.

•   Line vs staff positions

•   Decentralization

•   Hierarchy of Authority •   Tall vs flat hierarchies

•   Autonomy and control

•   Communication

•   Size

•   Span of Control •   A wide span of control: a large number of employees reporting,

•    A narrow span of control: a small number employees reporting

•   The appropriate span of control depends on the experience, knowledge and skills of the employees and the nature of the task.

•   Line vs Staff Positions •   Line vs Staff:

–    Line positions are those in which people are involved in producing the main goods or service or make decisions relating to the production of the main business.

–   Staff positions These are positions in which people make recommendations to others but are not directly involved in the production of the good or service

•   Decentralization •   The extent to which decision making is concentrated in a few people or dispersed through out the organization

•   Advantage: benefits associated with greater participation and moving the decision closest towards implementation

•   Disadvantage: Lack of perspective and information, lack of consensus -----------------------------------------------------------------------

EFFECTIVE   ORGANIZATIONAL    DESIGNS

Use functional structures  ,  when the organization is small, geographically centralized, and provides few goods and services.

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When the organization experiences bottlenecks in decision making and difficulties in coordination, it has outgrown its functional structure.

Use a divisional structure when the organization is relatively large, geographically dispersed, and/or produces wide range of goods/services.

Use lateral relations to offset coordination problems in functional and divisional structures.

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When the organization needs constant coordination of its functional activities, then lateral relations do not provide sufficient integration. Consider the matrix structure.

To adopt the matrix structure effectively, the organization should modify many traditional management practices.

=================================================================== Organization design is central to an enterprise’s ability to be market driven, adaptive, innovative, and more – in short, to be able to compete effectively. The design  approach is guided by the following core principles:    Organization design is more than just structure – it is the integration of structure, processes, people, culture, systems and technology        Strategy is the starting point – organization design must be driven by, and supportive of, overall strategy    Clarity and accountability underpin sound organization design –when good people know what to do and are held accountable, they achieve results    Transitioning to a new organization end-state requires an integrated approach to change management ======================================================= Strategic Organization Design

The Need:

Senior organizational leaders are constantly facing the need to restructure their organizations.  Changes in leadership, a shift in strategy, or changing factors within an organization often create the need for reorganizing.  Organization design is one of the most potent tools available to senior managers for shaping the direction of their organizations.  It can be a key leverage point for directing attention and energy to certain critical activities in an organization.

Organizational leaders, however, often lack the tools necessary to help them in making decisions about how to structure their organizations.  Efforts at restructuring are often uneven and unsystematic.  Decisions to reorganize are often made with insufficient information and without a clear process to guide the effort.  The result is that reorganizations often fail to produce the desired effects, leading instead to further confusion or problems within the organization.

The Process:

Strategic Organization Design is a four-phase participative process intended to provide senior leaders with a systematic, step-by-step method for examining the structure of their organizations.  The four-phases are as follows:

?  Preliminary Analysis

?   Strategic Design

?   Operational Design

?   Implementation

The preliminary analysis involves the collection of information necessary for making design decisions.  Structured interviews are conducted focusing on the strategy of the organization, the key tasks being performed and current strengths and weaknesses of the organization.  Operational design involves the structuring of supervisory roles, information flows, and jobs within the context of the strategic design decisions.  Implementation involves managing the transition from the current design to a new design.

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Strategic Organization Design

The key restructuring decisions are made during the strategic design phase.  This phase involves six steps:

Step 1. Identify design criteria.

Step 2. Generate grouping alternatives.

Step 3. Evaluate grouping alternatives against the criteria.

Step 4. Generate linking mechanisms.

Step 5. Conduct an impact analysis.

Step 6. Select a new design.

The goal of the strategic design phase is to develop grouping and linking combinations that best support the strategy and basic work of the organization.  Before any design decisions are made, the management group identifies design criteria - statements about what the new design will need to be able to do.  These statements are reflections of the organization's strategy, its basic tasks, and the current strengths and weaknesses identified during the preliminary analysis.

Next, several different grouping alternatives are developed by the group and assessed against the design criteria.  Linking or coordinating mechanisms such as liaison roles, integrator departments, etc. are then generated for each of the possible grouping alternatives.  This step depends on the need for information exchange between groups in a particular design.  Finally, an impact analysis is conducted to determine the effect that the new design will have on the organization.  At this point a final design can be selected using the information and ideas generated during each step.  Often the final design is a hybrid of several alternatives considered during the process.

Who Should Be Involved?

This process is highly participative, involving each member of senior leadership staff of an organization, i.e. a Vice President and each of his or her direct reports.  The process draws heavily on the knowledge of the organization that each senior staff member has, and its success depends on the sharing of their ideas, concerns, and work-related needs.  To complete the process usually requires one to two days time for each member of the senior staff.

The process is not only for those groups who have an immediate need to restructure.  Leadership groups who only want to modify their organization slightly, or who simply want to reexamine their current structure may also benefit from using this process.  The process can help managers to solidify their strategy and ensure that their structure is consistent with it.

Strategic Organization Design Process Outline

Objective:    To provide a systematic participative process to help leaders structure their organizations in a way which helps accomplish the overall business strategy as well as the day-to-day work.

Phase I: Preliminary Analysis          Conduct structured interviews to:          ? Identify strengths and weaknesses of the existing organization          ? Clarify issues related to business strategy and organizational design

Phase II: Strategic Organization Design

?  Design Criteria:  Review information from the preliminary analysis and     generate criteria for a new design

? Grouping:  Generate several design options and evaluate against criteria

- Grouping By Output – Product, Service, or Project

- Grouping By Activity – Function, Work Process, Knowledge or Skill

- Grouping By Customer – Market Segment, Customer Need, Or Geography

?  Linking: Identify information flow requirements, select ways to     facilitate the flow of information to meet the requirements, and     evaluate against the criteria

?  Impact Analysis: Analyze each option to determine feasibility given the     existing leadership skills, power relationships, and work environment.

Phase III: Operational Design

?  Carry out the operational homework necessary to put organization design     decisions in place

?  Design work charters, reporting relationships, information flows, etc.

Phase IV: Implementation

? Develop a strategy for implementing the new design

? Assess the potential resistance to the new organization

? Determine the best way to manage the transition from the old     organization to the new one.

============================================== EXAMPLE S   OF   ORGANIZATION DESIGN / STRUCTURE

1.APPLE  COMPUTERS THE  EMPHASIS  IS  ON

(1) How to divide work among the organization's subunits?(2) How to coordinate and control the efforts of the units created? A WORLDWIDE PRODUCT STRUCTURE

1   Implements strategies that emphasize global products

2   Each product division assumes responsibility to produce and sell its products or services though out the world  

A WORLDWIDE GEOGRAPHIC STRUCTURE 1   Implements a multinational or regional strategy 2   Country-level divisions 3   Separate divisions for large market countries       

APPLE’S GEOGRAPHIC STRUCTURE

HYBRIDS AND WORLDWIDE MATRIX STRUCTURE

1   Support strategies that include local adaptation and concern for globalization.  

2   Mix geographic units with product or function units

3   Managers report to multiple supervisors

4   Conflict, confusion, loss of accountability

5   Amplified by distance, time, culture, language

THE TRANSNATIONAL NETWORK STRUCTURE

1   Implements the transnational strategy

2   Combines functional, product, and geographic subunits in networks

3   Has no symmetry or balance in its structural form 4   Resources, people, and ideas flow in all directions  

5   Nodes or centers in the network coordinate product, functional, and geographic information NETWORK STRUCTURES HAVE

1   Dispersed subunits

2   Specialized operations

3   Interdependent relationships

Key characteristics of transnational organizations

1   Multidimensional perspectives

2   Distributed, interdependent capabilities

3   Flexible integrative processes

Multidimensional perspectives

1   National subsidiary management senses needs of local customers and host governments

2   Global business management tracks competitors and coordinates response

3   Functional management concentrates knowledge and facilitates transfer among organizational units

Distributed, interdependent capabilities

1   Centralize activities for which global scale or centralized knowledge is important

2   Involve relevant national units in developing technology, products, marketing strategy

3   Interdependence of worldwide units is high – the integrated network

Flexible integrative processes

1   Centralization

2   Formalization

3   Socialization

EXAMPLE PRODUCT LINKS

CONTROL AND COORDINATION SYSTEMS

1   Top managers must design organizational systems to control and coordinate the activities of their subunits.         BASIC FUNCTIONS OF CONTROL 2   Measure or monitor the performances of subunits

3   Provide feedback to subunit managers regarding the effectiveness of their units  

COORDINATION SYSTEMS

1   Provide information flows among subsidiaries 2   Link the organization horizontally

CONTROL SYSTEMS

1   Output 2   Bureaucratic    

3   Decision making

4   Cultural

========================

EXAMPLE S   OF   ORGANIZATION DESIGN / STRUCTURE

2.  MSA  SAFETY  CO. THE  EMPHASIS  IS  ON

(1) How to divide work among the organization's subunits?(2) How to coordinate and control the efforts of the units created? A  REGIONAL  PRODUCT STRUCTURE

3   Implements strategies that emphasize REGIONAL  products

4   Each product division assumes responsibility to produce and sell its products or services though out the REGION. A  REGIONAL  GEOGRAPHIC STRUCTURE 4   Implements a  regional strategy 5   Country-level divisions    

MSA ’S  REGIONAL  STRUCTURE MATRIX STRUCTURE

6   Support strategies that include local adaptation and concern for REGION.  

7   Mix geographic units with product or function units

8   Amplified by distance, time, culture, language

THE TRANSNATIONAL NETWORK STRUCTURE

6   Implements the transnational strategy

7   Combines functional, product, and geographic subunits in networks

8   Has no symmetry or balance in its structural form 9   Resources, people, and ideas flow in all directions  

10   Nodes or centers in the network coordinate product, functional, and geographic information NETWORK STRUCTURES HAVE

4   Dispersed subunits

5   Specialized operations

6   Interdependent relationships

Key characteristics of transnational organizations

4   Multidimensional perspectives

5   Distributed, interdependent capabilities

6   Flexible integrative processes

Multidimensional perspectives

4   National subsidiary management senses needs of local c
Sinai
 
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Ms-01 Assignment Questions

Postby ardwyad » Sun Dec 11, 2016 11:03 pm

.          Why do groups get formed? What are the stages of group formation? Explain the formation of a group and relate it to the stages with brief description of purpose and structure of the group, as you are aware of. Also briefly describe the organization, if this group was the part of it. Effective teamwork is essential in today's world, but as you'll know from the teams you have led or belonged to, you can't expect a new team to perform exceptionally from the very outset. Team formation takes time, and usually follows some easily recognizable stages, as the team journeys from being a group of strangers to becoming a united team with a common goal.

Whether your team is a temporary working group or a newly-formed, permanent team, by understanding these stages you will be able to help it quickly become productive.

Understanding the Theory

Psychologist Bruce Tuckman first came up with the memorable phrase "forming, storming, norming and performing" back in 1965. He used it to describe the path to high-performance that most teams follow. Later, he added a fifth stage that he called "adjourning"(and others often call "mourning" – it rhymes better!)

Teams initially go through a "forming" stage in which members are positive and polite. Some members are anxious, as they haven't yet worked out exactly what work the team will involve. Others are simply excited about the task ahead. As leader, you play a dominant role at this stage: other members' roles and responsibilities are less clear.

This stage is usually fairly short, and may only last for the single meeting at which people are introduced to one-another. At this stage there may be discussions about how the team will work, which can be frustrating for some members who simply want to get on with the team task.

Soon, reality sets in and your team moves into a "storming" phase. Your authority may be challenged as others jockey for position and their roles are clarified. The ways of working start to be defined and, as leader, you must be aware that some members may feel overwhelmed by how much there is to do, or uncomfortable with the approach being used. Some may react by questioning how worthwhile the goal of the team is, and by resisting taking on tasks. This is the stage when many teams fail, and even those that stick with the task may feel that they are on an emotional roller coaster, as they try to focus on the job in hand without the support of established processes or relationships with their colleagues.

Gradually, the team moves into a "norming" stage, as a hierarchy is established. Team members come to respect your authority as a leader, and others show leadership in specific areas.

Now that the team members know each other better, they may be socializing together, and they are able to ask each other for help and provide constructive criticism. The team develops a stronger commitment to the team goal, and you start to see good progress towards it.

There is often a prolonged overlap between storming and norming behavior: As new tasks come up, the team may lapse back into typical storming stage behavior, but this eventually dies out.

When the team reaches the "performing" stage, hard work leads directly to progress towards the shared vision of their goal, supported by the structures and processes that have been set up. Individual team members may join or leave the team without affecting the performing culture.

As leader, you are able to delegate much of the work and can concentrate on developing team members. Being part of the team at this stage feels "easy" compared with earlier on.

Project teams exist only for a fixed period, and even permanent teams may be disbanded through organizational restructuring. As team leader, your concern is both for the team's goal and the team members. Breaking up a team can be stressful for all concerned and the "adjourning" or "mourning" stage is important in reaching both team goal and personal conclusions.

The break up of the team can be hard for members who like routine or who have developed close working relationships with other team members, particularly if their future roles or even jobs look uncertain.

Using the Tool

As a team leader, your aim is to help your team reach and sustain high performance as soon as possible. To do this, you will need to change your approach at each stage. The steps below will help ensure you are doing the right thing at the right time.

1.   Identify which stage of the team development your team is at from the descriptions above.

2.   Now consider what needs to be done to move towards the Performing stage, and what you can do to help the team do that effectively. The table below(Figure 1) helps you understand your role at each stage, and think about how to move the team forward. 3.   Schedule regular reviews of where your teams are, and adjust your behavior and leadership approach to suit the stage your team has reached. Different Group Formation Stages          STAGE          AVTIVITY

Forming   Direct the team and establish objectives clearly.(A good way of doing this is to negotiate a team charter.)

Storming   Establish process and structure, and work to smooth conflict and build good relationships between team members. Generally provide support, especially to those team members who are less secure. Remain positive and firm in the face of challenges to your leadership or the team's goal. Perhaps explain the "forming, storming, norming and performing" idea so that people understand why conflict's occurring, and understand that things will get better in the future. And consider teaching assertiveness and conflict resolution skills where these are necessary.

Norming   Step back and help the team take responsibility for progress towards the goal. This is a good time to arrange a social, or a team-building event

Performing   Delegate as far as you sensibly can. Once the team has achieved high performance, you should aim to have as "light a touch" as possible. You will now be able to start focusing on other goals and areas of work

Adjourning   When breaking up a team, take the time to celebrate its achievements. After all, you may well work with some of your people again, and this will be much easier if people view past experiences positively.

Tip 1:

Make sure that you leave plenty of time in your schedule to coach team members through the "Forming", "Storming" and "Norming" stages.

Tip 2:

Think about how much progress you should expect towards the goal and by when, and measure success against that. Remember that you've got to go through the "Forming", "Storming" and "Norming" stages before the team starts "Performing", and that there may not be much progress during this time. Communicating progress against appropriate targets is important if your team's members are to feel that what they're going through is worth while. Without such targets, they can feel that, "Three weeks have gone by and we've still not got anywhere".

Tip 3:

Not all teams and situations will behave in this way, however many will – use this approach, but don't try to force situations to fit it. And make sure that people don't use knowledge of the "storming" stage as a license for boorish behavior.

Key Points:

Teams are formed because they can achieve far more than their individual members can on their own, and while being part of a high-performing team can be fun, it can take patience and professionalism to get to that stage.

Effective team leaders can accelerate that process and reduce the difficulties that team members experience by understanding what they need to do as their team moves through the stages from forming to storming, norming and, finally, performing. The model describes four linear stages that a group will go through in its unitary sequence of decision making. A fifth stage was added in 1977 when a new set of studies were reviewed 1.FORMING.   Group members learn about each other and the task at hand. Indicators of this stage might include: Unclear objectives, Uninvolvement, Uncommitted members, Confusion, Low morale, Hidden feelings, Poor listening, etc.

2.STORMING   As group members continue to work, they will engage each other in arguments about the structure of the group which often are significantly emotional and illustrate a struggle for status in the group. These activities mark the storming phase: Lack of cohesion, Subjectivity, Hidden agendas, Conflicts, Confrontation, Volatility, Resentment, anger, Inconsistency, Failure.

3.NORMING   Group members establish implicit or explicit rules about how they will achieve their goal. They address the types of communication that will or will not help with the task. Indicators include: ing performance, Reviewing/clarify objective, Changing/confirming roles, Opening risky issues, Assertiveness, Listening, Testing new ground, Identifying strengths and weaknesses.

4.PERFORMING   Groups reach a conclusion and implement the conclusion. Indicators include: Creativity, Initiative, Flexibility, Open relationships, Pride, Concern for people, Learning, Confidence, High morale, Success, etc.

5.ADJOURNING   As the group project ends, the group disbands in the adjournment phase. This phase was added when Tuckman and Jensen's updated their original review of the literature in 1977.

Each of the four stages in the model proposed by Tuckman involves two aspects: interpersonal relationships and task behaviors. ======================================================

the organisation I  am referring to

The  organization, I am  familiar  with  is  a -a  large  manufacturer/ marketer of  safety products

-the products  are  used  as  [personal  protection safety] [ industrial  safety]

-the products  are  distributed through  the distributors as well as  sold directly

-the  products  are  sold  to various  industries like  mining/fireservices/defence/

as  well  as  to  various  manufacturing  companies.

-the  company employs  about  235  people.

-the  company  has  the following  functional   departments

*marketing

*manufacturing

*sales

*finance/ administration

*human resource

*customer  service

*distribution

*warehousing/  transportation

*TQM  

==============================================

IN  THIS  ORGANIZATION,   THE  PRACTICE  OF  

group  development.

The following model is a frequently used training tool for helping any groups to improve their functioning. At  this  organization        it is generally used to help staff  understand that development of group cohesion is a predictable process and can be helped along by understanding the dynamics and practicing certain procedures. The model can be taught to staff easily. The critical component is the development of explicit norms(rules) for how the group will work together and enough self-awareness of groups to use the norms. The stages described below are   useful  stages. Stage 1. Forming(Orientation and Initiation) Little trust.

Anxiety is very high.

Conflict is not apparent. Members skirt and scout to get to know each other. They begin to identify the individual characteristics of their group members, and they form some early hypothesis about their partners. Stage 2. Storming(Redefinition) Trust begins to develop

Anxiety diminishes as people begin to see themselves as part of a group, but it still may be somewhat high as adjustments are made to each other.

Conflict may erupt as power struggles emerge, but it usually is denied or ignored, but people worry about how they will get their own opinion or positions heard but they don’t want to create more anxiety. Members compete or capitulate. Roles become defined. Different levels of motivation become apparent. Stage 3. Norming(Setting the Rules) During this stage, the group members work out an agreement about how the group operates. Informal norms exist as well. Those norms often supersede the formal norms. Trust – In the process of working together, team members build trust, learn to share more than just their work and therefore develop cohesion, and they build skills necessary to do their work.

Anxiety- diminished among most members because they know what the rules of behavior are for the group. Conflict- managed by the group members, especially if they have become self aware and have done the proper level of norm building. They have an agreed upon plan for managing conflict. Stage 4. Performing(Getting the job done) Trust is high. Anxiety around getting the job done may resurface but there is high performance. Conflict is submerged in order to heighten performance. Stage 5. Winding Down This is the stage when student say goodbye and terminate their work together. It may be short in some teams or may be longer in others. If students have become friends, it may not occur.  
ardwyad
 
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