ORGANIZATIONAL INFORMATION SYSTEMS Lecture 4 Organizational - - PowerPoint PPT Presentation

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ORGANIZATIONAL INFORMATION SYSTEMS Lecture 4 Organizational - - PowerPoint PPT Presentation

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INFS 432 ORGANIZATIONAL INFORMATION SYSTEMS Lecture 4 Organizational Decision-Making and Information Systems Lecturer: Mr. Michael Allotey & Prof. Harry Akussah Contact Information: mallotey@ug.edu.gh School of Information and

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School of Information and Communication Studies Department of Information Studies

Second Semester (2018-2019)

INFS 432 ORGANIZATIONAL INFORMATION SYSTEMS

Lecture 4 – Organizational Decision-Making and Information Systems Lecturer: Mr. Michael Allotey & Prof. Harry Akussah Contact Information: mallotey@ug.edu.gh

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Lecture Overview

Information systems are used to support the functions of

  • rganizations. Organizations employ information systems for various

reasons such as simplifying decision making. Students will best appreciate the various type of information systems if they understand decision making and the types of decisions in organizations.

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Session Outline

The key topics to be covered in the session are as follows:

  • 1. Introduction
  • 2. Defining Decision Making
  • 3. Characteristics of Organizational Decisions
  • 4. Types of Organizational Information Systems

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Reading List

  • Laudon, C.K. Laudon, J.P. (2000) Management Information Systems (11th Ed.), NJ, Prentice-Hall in

Honkong, Pearson.

  • Senn, J.A. (1982) Information Systems in Management, NY Wadsworth Publishing Company.
  • Stoner, J.A.F. (1999) Management, (1999) Prentice-Hall of India, New Delhi.
  • Lucey Terry, (1995) Management Information Systems, DP Publishing Ltd. Aldine Place, London.
  • Watson, H.J. et al (1991) Information System for Management: A Book of Reading.
  • Hutchinson, S.E. & Sawyer, S.C. (2000) Computers, Communications and Information: A User’s

Introduction.

  • Alter, S. (1999). Information systems: A management perspective. Reading, Mass. [u.a.: Addison

Wesley.

  • O’Brien, J.A. (2009) Introduction to Information Systems, Boston, Pearson.
  • Long, P. et al (2016) Cambridge International AS and A Level IT Coursebook, University Printing

House, Cambridge CB2 8BS, UK.

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INTRODUCTION

Topic One

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Introduction

  • Information gained from the organization's

usual activities (Information produced and stored in information systems), are used to help the organization make decisions.

  • Each type of decision has different

characteristics.

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DEFINING DECISION MAKING

Topic Two

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What is Decision Making?

  • Decision making is the process of selecting

a course of action among several alternatives.

  • The purposeful selection from among a set
  • f alternatives in the light of a given
  • bjective.

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Types and Levels of Organizational Decisions

TYPE OF DECSION

  • Structured

Decisions

  • Semi-Structured

Decision

  • Unstructured

Decisions

ORGANIZATIONAL LEVEL

  • Operation Level
  • Managerial or

Tactical Level

  • Strategic or

Executive Level

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CHARACTERISTICS OF ORGANIZATIONAL DECISIONS

Topic Three

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Characteristics (Examples) of Organizational Decisions

  • Operational Decisions
  • Tactical Decisions
  • Strategic Decisions

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Operational Decisions

These are decisions about the organization’s activities now and within the next 6 to 12 months. For example:

  • 1. A number of production employees are off sick

– what do you do in the short term to ensure that production is not affected?

  • 2. What raw materials will we need today?
  • 3. Can we organize ourselves differently and speed

up operations?

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Discussion Activity

  • What sort of Information will the organization need in
  • rder to make the decisions above?

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  • Who has called in sick today, and how long are they likely to be away from

work?

  • What is going to be produced today (we will assume that the raw material

stock was checked a few days prior to today) and do we have assurance that the raw materials have been moved to the production area?

  • A floor plan and production flow information (looking at how the goods

move through the production line).

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Tactical Decisions

These are decisions about what will happen within the organization in the next five years or so. These decisions are often informed by research, to ensure that the organization remains safe in the medium term.

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Tactical Decisions

For example:

  • 1. Are there any new products or service that we should be
  • ffering?
  • 2. Are there any existing products or service that we should

stop offering?

  • 3. Do we need to make any capital investment to meet the
  • rganization's longer-term strategy?
  • 4. Does our workforce need any training to enable us to

meet our longer-term goals?

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Discussion Activity

What sort of Information will the organization need in order to make the decisions above?

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1. Information about what competitors are making. Information about what customers’ changing wants are. 2. Stock information on existing products and information about stock movement. 3. What our current capital reserves are. If there is insufficient finance available, should we be taking out a business loan to finance future strategies? 4. What training does our workforce have? Will this training be sufficient and suitable to enable us to meet our mid-term goals, or do we need to have some staff trained? What training courses are available?

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Strategic Decisions

These are decisions that have a long time frame and require organizations to look well into the future (in excess of about five years). For example:

  • Should we expand?
  • Should we buy larger premises?
  • How should the organization be structured?

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Discussion Activity

What sort of Information will the organization need in

  • rder to make the decisions above?

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  • 1. Estimates of how our organization will develop over the next five

to ten years.

  • 2. The costs of larger premises, including the anticipated overheads
  • n such a property (such as city tax, average heating and lighting

costs), so that they can be compared with current expenditure

  • n these items.
  • 3. The current organizational structure should be identified and

written down, so that managers can discuss whether changes in the hierarchy could be achieved and how they see these changes being implemented.

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TYPES OF ORGANIZATIONAL INFORMATION SYSTEMS

Topic Four

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Introduction

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In general terms the information produced by information systems is used in the following organizational activities:

  • Planning
  • Decision making
  • Controlling operations
  • Forecasting the future

Realistically, these activities are undertaken in all functional areas of an organization.

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Types of Organizational Information Systems

There are two main categories of organizational information systems:

  • Operations Support Systems (OSS).
  • Management Support Systems (MSS).

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OPERATION SUPPORT SYSTEMS

Topic Five

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Operation Support Systems (OSS)

These are information systems which generate a variety

  • f general information products to support the general

day-to-day operations of organizations. Their targets are mostly to support operations at the

  • perational levels.

Examples of Operations Support Systems are:

  • Transaction Processing Systems (TPS),
  • Process Control Systems (PCS)
  • Enterprise Collaboration System (ECS)

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Transaction Processing Systems (TPS)

  • This is a category of OSS that generally record and

process data resulting from the fundamental activities of the organization.

  • TPS generally process sales, purchase, inventory and
  • ther organizational database. These database then

provide the data resources that can be processed and used by Decision Support Systems (DSS) and Executive Information Systems (EIS).

  • TPS processes transactions into two ways:

– Batch Processing – Online Processing

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Transaction Processing Systems (TPS)

Examples:

  • Electronic Point of Sales Terminals (EPoST)
  • Payroll Systems
  • Stock Control Systems
  • Reservation Systems
  • Library Loan Systems
  • Bill Generating Systems
  • And many more

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Discussion Activity

Outputs from TPS serves as fundamental inputs for other information systems such as MIS, DSS and EIS. True OR False and Why? Answer: True

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Process Control Systems

This is a category of OSS in which decision about a physical production process are automatically made by computer through routine decisions that control

  • perational process.

For Example: A petroleum refining center uses electronic sensors which are linked to the computers to continuously monitor chemical processes and make instant adjustments that control the refined process.

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Enterprise Collaboration System

  • This is the information system that uses a variety of

information technology to help the people to work together.

  • ECS helps to collaborate and communicate ideas, share

resources and co-ordinate work effort of an organization.

  • The aim of an ECS is to use the information technology to

enhance productivity and creativity of organization and work group in an organization. For Example: Email systems, Chats, video Conferencing etc. Essentially, they are Office Automation Systems.

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MANAGEMENT SUPPORT SYSTEMS

Topic Six

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Management Support Systems (MSS)

  • This is generally deals with providing information and

support for effective decision making.

  • Their targets are mostly decision making at the tactical

and executive levels. Examples of MSS are:

  • Management Information Systems
  • Decision Support Systems
  • Executive Information Systems

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Management Information Systems (MIS)

  • MIS is a form of MSS that provides managerial end-

user with information product that support their day to day decisions.

  • It provides a variety of information in the form of

report and display to management that contain information specified in advance by manager.

  • Information is generally provided on demand or

periodically to the managers.

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Management Information Systems (MIS)

For Example: Sales manager may use their network computer, net web browser to get instant display of the sales, result

  • f their product and access their daily sales report.

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Decision Support Systems

  • Decision support systems are computer based

information systems that provide interactive information support to managers and business professionals during the decision making process.

  • It provides managerial end-user with information in an

interactive manner i.e., analytical modeling, data retrieval information presentation capability. For Example: Product pricing systems, Risk Analysis systems, Forecasting systems etc.

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Executive Information Systems (EIS)

An Information System that provides Strategic information tailored to the needs of executives and other decision makers (top management). It provides top management with immediate and easy access to select information about key factors that are critical to

  • rganizational strategic objectives.

For Example: The top level executives may use the touch screen to instantly view text and graphics that display the key areas of the organization.

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OTHER SPECIALIZED INFORMATION SYSTEMS

Topic Seven

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Other Information Systems

  • Expert Information Systems
  • Geographic Information Systems
  • Knowledge Management Systems
  • Enterprise Information Systems

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Expert Information Systems These are mostly computer programs/software which perform or carry out logical processes which are normally associated with human intelligence.

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Geographic Information Systems

These are special decision support system that uses geographic databases to construct and display maps and

  • ther graphical displays that support

decisions affecting the geographical or spatial distribution of people and

  • ther resources.

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Knowledge Management Systems

These refer to the process an organization uses to gain the greatest value from its knowledge assets.

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Enterprise Information Systems

These are systems that allow

  • rganizations to integrate information

across operations and units on an

  • rganization wide basis, rather than

storing information at separate locations throughout the organization.

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**END**

Thank You

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