This chapter discusses how organizations use information technology for coordination and control. It examines how IT systems are applied to decision making and operational management. The chapter provides an overview of how IT affects organizational design and inter-organizational relationships. It also describes different types of information systems used for managerial control and decision making, including information reporting systems, executive information systems, and decision support systems. Finally, it discusses various management control systems like quality control, benchmarking, and balanced scorecards that organizations use with IT to monitor performance at different levels.
3. Purpose of this chapter
IT systems applied to organizational operations
examines how IT is used for decision making and
control
how IT can add strategic value
overview of how IT affects organization design and
interorganizational relationships
6. information reporting system
the most common form of MIS, provides mid-
level managers with reports that summarize
data and support day-to-day decision making.
7. executive information system(EIS)
higher-level application
facilitates decision making at the highest levels
of management
typically based on software
large amounts
of
complex data
pertinent information
in a
timely fashion
8. decision support system (DSS)
all levels of the organization
rely on decision models and integrated
databases
users can pose a series of what-if questions to
test possible alternatives
help managers to choose the alternative that will
likely have the best outcome
11. Management Control Systems
Formal routines, reports and procedures that use
information to maintain or alter patterns in
organizational activities.
Use for planning, budgeting, performance
evaluation, resource allocation, and employee
rewards.
Targets are set in advance, outcomes compared
to targets, and variances reported to managers
for corrective action.
16. Quality-control system
training employees in quality-control
methods.
setting targets for employee participation.
establishing benchmarking guidelines.
assigning and measuring Six Sigma
17. Six Sigma
Six Sigma specifically means a
highly ambitious quality
standard that specifies a goal
of no more than 3.4 defects
per million parts.
18. Benchmarking
Benchmarking means the process of
persistently measuring products,
services, and practices against tough
competitors or other organizations
recognized as industry leaders.
19. THE LEVEL AND FOCUS OF CONTROL
SYSTEMS
Department
Level
Behavior
control
Outcome
control
Organization
Level
Balanced
Scorecard
Strategy
Map