Management Information Systems

Unit 3

Unit 3

Information needs of Organisation and Individuals

Structure: 3.1 3.2 Introduction How information are selected and organized 3.2.1 3.2.2 3.2.3 3.3 3.4 The Components of Perception Humans Versus Computers Self Assessment Questions (for Section 3.2)

Development of Organisational Computing Demands on Organizations in an Information Society 3.4.1 3.4.2 Components of an organizational information system Informational responses to the new environment 3.4.2.1 3.4.2.2 Organizational Design for Knowledge Work Mechanisms for Acquiring and Distributing External Information 3.4.3 Self Assessment Questions (for section 3.4)

3.5 3.6

Capabilities of information system in an organizational view The Individual at Work 3.6.1 The Information Needs of Individual Job Holders 3.6.1.1 3.6.1.2 3.6.1.3 3.6.1.4 3.6.2 Task-Related Needs Time Management Needs Enhancing Personal Productivity Career-Related Needs

Challenges of Information Management 3.6.2.1 3.6.2.2 3.6.2.3 Dealing with Quantities of Information Facing Insufficient or Conflicting Information Enhancing Personal Productivity
Page No.: 67

Sikkim Manipal University

Management Information Systems

Unit 3

3.6.2.4 3.7

Maintaining Technical Skills

Information Management Requirements 3.7.1 3.7.2 3.7.3 3.7.4 3.7.5 Acquiring Information Storing Information Retrieving Information Communicating Information Ensuring Privacy and Security

3.8 3.9

Summary Terminal Questions

3.10 Multiple Choice Questions 3.11 Answers to SAQs, TQs and MCQs

3.1 Introduction
In this unit, we describe how information are selected and organized by individuals, and how individuals differ from the computer in various aspects. The different ways computers can help individuals meet their needs for various types of information are narrated. We shall conclude by understanding the requirements of information management. Objectives: How individuals select and organize the information. How the organisational computing developed. What are the components of organizational information system What are the requirements for information management

3.2 How information are selected and organized

3.2.1 The Components of Perception Perception is an active process by which an individual attends to certain stimuli and then organizes them in a meaningful way. Individuals attend to certain features of a situation or select specific pieces of information to see
Sikkim Manipal University Page No.: 68

Management Information Systems

Unit 3

or hear because of their needs, personality, or experiences. The information itself may also influence whether attention occurs: Individuals select stimuli that are more intense, repetitive, in motion, novel, very familiar, or in contrast with their background. People tend not to see information that they are exposed to repeatedly without consequence. Try to recall, for example, the pictures and shapes on the back of a five hundred rupee note. In addition, people tend to ignore information that runs counter to deep or long held beliefs. Consider why companies such as IBM or Digital Equipment Corporation failed to recognize the changing nature of the computer market in the late 1980s. Clearly, the subjectivity of perception limits the processing of information. Once individuals attend to information about a situation, they organize it in several ways. They may try to fit it into prototypes or categories that represent typical aspects of similar situations. They may match it to concrete examples. They may view it against a background, for example, within an environmental or situational context. Finally, they may group stimuli into patterns, trying to form a complete picture, sometimes even trying to do so using incomplete information. An understanding of how people select and organize information is critical to designers of information systems. Managers rely on information systems to collect and summarize data about their organization, so systems designers must present information in ways that have the greatest chance of being seen and remembered to ensure that users select the most important information and organize it in the most effective way. Extensive research in information systems has addressed questions such as how much information to put into a single table, what type of data to present as tables and what type as charts, and how best to use color to convey information and facilitate quality decisions.
Sikkim Manipal University Page No.: 69

Management Information Systems

Unit 3

Managers and other jobholders also have a responsibility to ensure that they receive and select the information they need in order to operate effectively. Some managers may receive insufficient information for decision-making; others obtain so much information that they cannot separate the important from the unimportant. Individuals who hold jobs that require extensive coordination with other jobholders, as well as those who have a high ability and desire to communicate more frequently, experience overload more than those who do not. This overload can be particularly problematic: Decision quality declines as the amount of relevant information increases beyond a manageable limit. 3.2.2 Humans versus Computers Humans and computers are complementary in their ability to filter and save information. Humans can effectively decide what is important; computers cannot. Computers generally can retain much more information and collect it faster than humans collect. For example, computers at stores such as Big Bazaar can maintain a complete, instantaneous, accurate inventory on the thousands of items in a store; manual tabulation by a store clerk would take weeks. In addition, computers often process information more accurately than individuals do. Marine biologists obtain the information they require by counting fish, checking maps, and diagnosing equipment flaws under water; underwater personal computers could make the data collection easier. People can think easily in terms of symbols, objects, and concepts that have meaning. They can draw conclusions from data. Increasingly computers are able to think in this way, but they still have only a primitive ability to draw conclusions. Although physicians can use computer programs to help organize disparate symptoms into a pattern that assists with diagnosis, few patients would want a computer acting alone to treat their life-threatening disease.
Sikkim Manipal University Page No.: 70

Management Information Systems

Unit 3

Computers can perform computations much more quickly and accurately than people can: They can add a column of 50 ten-digit numbers in less than a second, whereas such addition would take even the most facile individual several minutes. They can sort a list of one million addresses by ZIP code to prepare envelopes for bulk mailing; to do so manually in a timely fashion would take hundreds of people. Humans Versus Computers Human Assets Identify important information Think symbolically Evaluate information Recognize patterns Draw inferences and conclusions

Computer Assets Retain large quantities of information Collect information quickly and accurately Perform extensive computation rapidly and accurately Sort information rapidly and accurately Select information meeting preconditions

3.2.3 Self Assessment Questions (for Section 3.2) 1. What do you understand by perception? Explain their components. 2. Write a short note on human and computer ability to filter and save information.

3.3 Development of Organisational computing

The role played by information systems in organizations has evolved over time. This evolution has not led to wholesale discarding of the early types of
Sikkim Manipal University Page No.: 71

Management Information Systems

Unit 3

systems this would be quite expensive, and in many cases the older systems are' still useful after suitable modifications. The progressive retargeting of MIS can be summarized as moving "up and out": progressive support of higher levels of management in increasingly individualized fashion, and aiming MIS at competitors to achieve strategic advantage. From the mid-1950s to the mid-1970s, companies generally had a single data processing department (later to be renamed MIS department). All application systems were developed within this department and largely at its discretion. Thus, end-user access to computer technology was mediated: professional computer expertise was required to obtain information from the system. The backlog of applications judged worthy of development yet having to wait for the availability of professional time ran two to three years in most organizations. Access to computing was thus severely restricted. The primary target of data processing departments was operational support, although management support was emerging toward the end of this period in the form of voluminous reports. Raising the efficiency of company operations was the main objective of most applications. The second era in organizational computing began in the late 1970s and was made possible by a number of technological developments spanning a decade. The development of time-sharing operating systems made it possible for a user on a terminal to access the computer directly. Specialists devised information systems directly supporting the decision-making process and organized company data in databases, making the data far more accessible and usable. Minicomputers made it not only possible but justifiable to break up the monopoly of a single MIS department. The greatest impact was made by the personal computer, which emerged on an industrial scale in 1977 as Apple II. Propelled by the broadly used spreadsheet programs (initially, VisiCalc), personal computers and end-user
Sikkim Manipal University Page No.: 72

Management Information Systems

Unit 3

oriented software empowered the users themselves. End-user computing had begun: in many cases, instead of requesting that a system be developed by the MIS department, knowledge workers themselves began using a productivity software package (a database management system or a spreadsheet, for example), customizing it for their needs, and even developing systems of their own. Many information systems were brought under control of their users. Organizations now entered a new stage in their reliance on information systems, which included extensive operational and management support systems developed during the two earlier stages. During the current, third era of MIS development, firms expect information systems to carry them beyond increased operational efficiencies and managerial effectiveness: systems are now geared to help a company to compete in the marketplace. Business functions are reengineered and extensively supported with information technology. This requires close interaction between developers and users; the sharp divide between the two groups often disappears when application systems are concerned. End users initiate and participate in the development of many systems. They also control some of the systems they use. In leading corporations, end-user computing is an important contribution to overall MIS development and maintenance. Systems integration is a vital concern.

3.4 Demands on Organizations in an Information Society

Transportation and communication networks spanning the globe have removed the protective space and time buffers shielding companies from competition. This calls for constant innovation. Complexity, turbulence, and a high volume of knowledge with potential impact on the companys operations characterize the operational environment of todays organization.

Sikkim Manipal University

Page No.: 73

Management Information Systems

Unit 3

An infrastructure is the structure of facilities and services necessary for organizations and economies to function and grow. Fast and relatively inexpensive means of transportation, telecommunications networks, and global financial markets are all components of the infrastructure of the information society. These means of rapidly moving goods, information, and money have shrunk the world. They have removed the advantages provided by the remoteness of potential business competitors in the early industrial economy. Largely, firms no longer compete solely against a known handful of other companies: they must develop a general competitive capability. Runners may appreciate the analogy to the difficulty of achieving a record result running alone as compared with running against others in a race. Not only has the space buffer that formerly shielded companies from their remote competitors been removed, but paced by computerized information systems, life cycles for product development have been shortened dramatically. With the use of CAD/CAM (computer-aided design/computeraided engineering) technology, a new car model is developed in nine months instead of three years; financial software and global securities markets make it possible to develop and bring to the market a new financial product, such as a new type of bond, within ten days. Companies used to be able to rely on "cash cows" products, which in mature markets bring significant profits without a need for innovation. Now that time-related protection has also disappeared. A highly dynamic information society requires constant innovation-both in marketed products and services, and in the continual restructuring of organizations to adapt to changing market demands. Moreover, successful organizations must not only react, but also proactively anticipate new developments and changes in their markets.

Sikkim Manipal University

Page No.: 74

Management Information Systems

Unit 3

Mergers, acquisitions, and organizational restructuring have indeed been the order of the day during the past two decades. The stability and stolidity that were the hallmark of successful industrial corporations have given way to constant corporate renewal. Robert Waterman, a well-known

management consultant, quotes the chief executive officer of IBM, John Akers, who "says they never reorganize except for a good business reason, but if they haven't reorganized in a while, 'that's a good business reason." However, this dynamism has to be combined with a stable, "producing" environment. The art of balancing in corporate renewal requires that an organization ensure a sufficient degree of organizational stability to successfully carry out change. Perhaps the best way to state it is to say that an information society requires an organization to maintain a constant trait of adaptability, rather than adaptation; in other words, a firm must possess the capability to keep changing rather than to make a single change. Management information systems must be vehicles built to facilitate rather than to put the brakes on change, as unfortunately frequently occurs. 3.4.1 Components of an Organizational Information System The environment in which organizations operate from the informational perspective in terms proposed by George Huber of the University of Texas, who has studied the organizational design required by an information society. His conclusions provide a framework for determining what is required of an organizational information system. These, according to Huber, are the hallmarks of an information society: 1) Dramatic Increase of Available Knowledge Whether measured in terms of the number of scholarly journals, patents and copyrights, or in terms of the volumes of corporate communications, both the production and the distribution of knowledge have undergone a manifold increase.
Sikkim Manipal University Page No.: 75

Management Information Systems

Unit 3

2) Growth of Complexity Huber characterizes complexity in terms of numerosity, diversity, and interdependence. A growing world population and the industrial revolution combined to produce numerosity, or a growing number of human organizations. To succeed, people and organizations learned to specialize: they do things differently and organize themselves differently to accomplish specialized tasks. These differences lead to diversity. Two principal factors have led to increased interdependence. The first as been the revolution in the infrastructure of transportation and communication. The second factor is specialization in firms that make narrowly defined products, as opposed to the self-sufficiency of companies producing a complex product down to its minute elements. A company's product is typically a part of a larger system, produced with contributions from a number of interdependent firms (consider a car or a computer). Moreover, interdependence has increased on a global scale. Even the most isolated of countries participates in some way in the international division of labor. Organizations operating in the public sector, while rarely in a competitive situation, are still governed by the demands of society. Pressures on the public sector in democratic societies, along with the pressures conveyed from the private sector, also make the environment in which public organizations operate more complex. 3) Increased Turbulence The pace of events in an information society is set by technologies. The speeds of today's computer and communication technologies have resulted in a dramatic increase in the number of events occurring within a given time. Consider the volumes and speed of trades in the securities and currency markets. Widespread use of telefacsimile, as another
Sikkim Manipal University Page No.: 76

Management Information Systems

Unit 3

example, has removed the "float"-the lag between sending and receiving-in written communications. Equally important, because of the infrastructure discussed earlier, the number of events that actually influence an organization's activities (effective events) has also grown rapidly. The great amount of change and turbulence pressuring organizations today thus calls for rapid innovation in both product and organizational structure. To thrive, an organization must have information systems able to cope with large volumes of information in a selective fashion. Huber concludes that these factors an increase of available knowledge, growth of complexity, and increased turbulence-are not simply ancillary to a transition to the new societal form. Rather, they will be a permanent characteristic of the information society in the future. Moreover, we should expect that these factors would continue to expand at an accelerating rate (a positive feedback exists). Barring some catastrophic event, we expect that the rapidly changing environment will be not only "more so" but also "much more so." To succeed in an information society, organizations must be compatible with this environment. 3.4.2 Informational responses to the new environment The demands of the new environment call forth a set of responses from organizations, and all of these responses have implications for information systems. Some of the requisite responses have been pointed out by George Huber and Reuben McDaniel. They proposed an organizational design based on the decision-making paradigm-that is, based on the view that decision-making is a central organizing principle for current and future organizations. In this text, we consider the support of decision making as only one of the contributions MIS make to organizational functioning.
Sikkim Manipal University Page No.: 77

Management Information Systems

Unit 3

3.4.2.1 Organizational Design for Knowledge Work Here are the responses required of organizations in an information society: 1) Organizational design for knowledge work in general and decision making in particular. 2) Continuous product and process innovation through information and information systems. 3) Constant internal company renewal supported by information systems. 4) Explicit mechanisms for acquisition and targeted distribution of external information. 5) Protection from information overload The volume and speed of decision making in an information society continue to increase dramatically. To keep up, routine and noncritical decision-making must be done by the information systems themselves, subject to human approval when appropriate. Organizations also need to assimilate information technology for both individual and-to an increasing degree-group decision making. After all, organizations exist to leverage the work of an individual through group work; hence, support of group work is essential. Industrial organizations were built around groups of people doing physical work. An assembly line, though used only in some industrial processes, became a powerful metaphor for the industrial age. The new, information-based organizations are expected to rely to a much greater degree on specialists-knowledge workers broadly distributed throughout an organization, rather than concentrated at its headquarters. The organizations of the information era have to provide both the structure and the technology not only for individual knowledge work, but also for group knowledge work. The size of a group depends on the task. For
Sikkim Manipal University Page No.: 78

Management Information Systems

Unit 3

example, a message broadcast over the company network to all managers above a certain level (perhaps a hundred of them), requesting their comments on a new budgeting policy to be implemented during the next quarter, may encompass a large group. Five corporate planners collaborating over several months on drafting a new long-range company plan form another type of group. This small, tightly collaborating group may use an electronic meeting system with a group decision support facility since the members of the group may be distributed over several company locations. The metaphor for work in the information age is a personal workstation. The workstation is generally built around a personal computer, with a modem connection to the telephone network (though digital networks are being introduced on ever-larger scales). A single workstation has a significant processing capability of its own; but just as important, it connects with the workstations of other workers and provides access to a number of informational services both within the company (corporate databases, for example) and outside of it (such as a commercial demographic database). An isolated (non-networked) personal computer is not an adequate tool for most knowledge-work tasks. Massive installation of local area networks is proof of this. Information systems have been increasingly used over the last decade to gain competitive advantage for products and services. Information systems serve to develop new products, and information itself may serve as all or a part of the product. This is called product innovation. However, information systems also innovate in the ways products are manufactured and services are provided-this is process innovation. The Federal Express vignette,

which has become a classic example, illustrates how a company can successfully combine a product with customized service and information.
Sikkim Manipal University Page No.: 79

Management Information Systems

Unit 3

Information systems help companies add more value to their products than is possible in the manufacturing of commodity-type, standardized goods. Many U.S. companies have found it advantageous in recent years to produce high-volume standardized products off the shores of the United States, where wages are lower and raw materials more accessible. However, commodity production does not bring high profits. To flourish, leading companies add more value to their products by customizing them for smaller market segments and by flexible manufacturing. 3.4.2.2 Mechanisms for Acquiring and Distributing External

Information Unless organizational MIS is flexible, enough to accommodate the change, the two objectives-maintaining informational support and adapting

organizational structures to fit the changing environment-will contradict each other. As the business environment has become global, firms need explicit mechanisms for acquiring external information and distributing it to the appropriate knowledge workers. The competitive demands of the global market lead to a certain degree of homogeneity-many can play the competitive game, regardless of their geographical locations, with a consequent increase in the number of players. A very large number of factors affect a company's business: no supplier is too remote and no customer too foreign. Organizations must have specialized information mechanisms as a part of boundary spanning, or acquiring information about their environments. Two modes for collecting information about the business environment require support: 1) Continuous scanning of the economic environment for opportunities and potential problems; 2) Probing, or making an ad hoc search for information regarding a specific problem or opportunity.
Sikkim Manipal University Page No.: 80

Management Information Systems

Unit 3

The vast volume of knowledge in the information society calls for coping techniques. The same information technology that helps us obtain information and make decisions also contributes to what we may call "positive informational feedback" as large numbers of knowledge workers produce an ever-increasing volume of information. If decision makers are not shielded from unneeded information, their effectiveness dwindles. The difficulty lies, of course, in determining what information is actually needed. Software screens and filters help in coping with information overload. For example, MIS users are able to define their preference profiles for incoming messages and rank them by order of importance. In the not-so-distant future, expert systems will be able to define more precisely an individual user's information-interest profile. Information systems will then be customized for the individual. A browsing mode will also be available for scanning. Thus, more complex informational tasks will be delegated to information systems. 3.4.3 Self Assessment Questions (for Section 3.4) 1. What are the hallmarks of an information society according to Huber? 2. What responses do organisations need to take in an information society?

3.5 Capabilities of Information System in an Organizational View

Computer- and communications-based information systems offer a set of capabilities to be brought out in the development of individual systems. As we will see, some of these capabilities help to provide dynamic action, while others help to maintain operational stability even as rapid change takes place. The principal capabilities of information systems include: 1) Fast and Accurate Data Processing, with Large-Capacity Storage and Rapid Communication between Sites This is the fundamental property of computers and telecommunications
Sikkim Manipal University Page No.: 81

Management Information Systems

Unit 3

systems. This capability is exploited in the first order by operational-level systems, which process massive volumes of business transactions, for example, entering incoming orders or printing payroll checks. This capability is also used to derive management reports from the voluminous data stored on a semi permanent basis in secondary and archival computer memories. Sophisticated computer models rely on this capability for long-term planning based on a large number of factors and models for optimization of the use of resources (such as raw materials). 2) Instantaneous Access to Information In on-line systems, the contents of a computer database are generally available for queries in sub-second time. Through the

telecommunications capability, a query may be directed to some remote site where the data are actually stored without the user's awareness (that is, in a transparent fashion). Ad-hoc (in other words, not predesigned) queries, introduced directly by end users, may in some cases produce extensive reports. Moreover, the presentation of the data may be individualized for a particular user-with various forms of graphics, for example. A firm's databases serve as a vital part of its corporate memory-a permanent record that facilitates management. 3) Means of Coordination Information systems have become widely accessible, primarily because of the proliferation of personal computers acting as workstations connected to telecommunications networks. This has made MIS a tool for coordinating organizational activities. Coordination brings parts of an organization together in a common effort, with the exchange of information playing a major role. In the immediate sense, coordination is accomplished through office information systems. MIS have widened their reach to create the "portable manager" complete with laptop and computerized home office.
Sikkim Manipal University Page No.: 82

Management Information Systems

Unit 3

In a deeper sense, the role MIS play in organizational coordination is a restatement of the fact that MIS have become crucial to management. If coordinate means to harmonize in a common action or effort, then planning with the use of appropriate information subsystems serves to establish common goals at all levels, and control aims to ensure that, once goals are established, organization members pursue them with vigor. Thus, MIS-assisted planning and control, combined with the extensive communication capabilities that information systems give to people within an enterprise, make MIS a coordination tool. Coordination activities are not limited to those that take place within an organization. Information technology is used ever more extensively to coordinate the actions of buyers and their suppliers, or to create electronic markets helping to match the needs of multiple buyers and sellers. 4) Boundary Spanning Aside from the internal role played by MIS within an organization, information systems increasingly serve to link an organization to the outside world. This may be accomplished in a variety of ways, some of which may be decisive for business success. For example, electronic data interchange (EDI) systems eliminate the exchange of paper transaction records, resulting in economy, speed, and reliability. Interorganizational systems connect suppliers with customers. Through boundary-spanning information systems, the organization receives intelligence about the environment, which is necessary to compete successfully. Organizations also use boundary-spanning systems to provide computerized information for various external constituencies. 5) Support for Decision Making Along with coordination, decision-making is another basic aspect of
Sikkim Manipal University Page No.: 83

Management Information Systems

Unit 3

management. All managerial functions, which will be further discussed later in the text, involve both coordination and decision making in varying degrees. By informing managers and permitting them to select from among alternative courses of action, MIS support both structured and unstructured decisions. Structured decisions occur when courses of action under all possible circumstances may be programmed and thus fully automated. Management reporting systems, for example, may rely on established inventory reorder formulas to determine the quantity of supplies needed. Unstructured decisions require human judgment as a critical component. Suppose that a group of managers is responsible for determining whether their firm will grant credit to another company. Granting credit to a large company involves structured, semi structured, and unstructured decisions. Various accounting ratios indicating company performance can be obtained from a management reporting system, which may also determine whether each company falls into the acceptable windows of approval-a highly structured process projections for the company's. Future a semi-structured decision-can is made for various scenarios with the use of a decision support system. However, no information system can replace visiting the company and "getting the feel" of its management and operations; this is an unstructured decision. The managerial group may then employ an expert system, which would suggest a solution to the credit-granting problem based on a set of established financial criteria, on projections for the company's future, and on applying rules of thumb to the results of the on-site visit. With the expert system's suggestion and its explanation of how it arrived at its recommendation, the managers are able to make the final decision.
Sikkim Manipal University Page No.: 84

Management Information Systems

Unit 3

Remember that people remain the ultimate decision makers in any organization. However, the volume and complexity of decision making in an information society requires that decision makers have MIS support. 6) Formalization of Organizational Practice Operational systems handle transactions in a specific way in every organization. Electronic mail systems and computer conferencing, both components of office information systems, provide a protocol for the interaction of people within an organization. Authorizer's Assistant-an expert system for credit card purchases developed by American Express recommends authorization or refusal of credit for most credit card transactions, assuring high consistency of response. These are just some examples of how organizational practice may be defined through MIS. Formalizing does not mean casting in concrete: properly designed systems should give an organization the capability to evolve as the environment changes. 7) Differentiation of Products or Services The strategic use of information systems leads to the use of information as a part of the product or service. The capabilities to differentiate, customizes and individualize the product or service with the use of information in a cost-effective fashion may produce a competitive advantage. 8) Modeling Computers are broadly used to model future economic conditions, prospective products, and environments where the products will operate. Software models are frequently substituted for the use of physical resources (other than the resource of computer time) in making these projections. Relatively then inexpensive, becomes fast, and comprehensive workers

experimentation

possible.

Knowledge

Sikkim Manipal University

Page No.: 85

Management Information Systems

Unit 3

increasingly manipulate models of reality in gaining understanding, designing, and studying effects of possible changes. 9) Production Control Computerized systems for production control are not considered a part of MIS in the strict sense. However, the line between MIS and production control systems becomes blurred and, as system integration progresses, is even likely to disappear. Flexibility and economies are the potential benefits of using computers in automated production processes. It is cost-effective in computerized manufacturing to produce small lots of products, thus assuring product diversity to satisfy a variety of customer needs. Another advantage: computer-controlled production and processing machines can immediately reject defective components and alert operators to faulty processes, leading to higher quality output. All nine of the capabilities we have discussed are realized through organizational information systems. However, managers who introduce such systems are not always motivated by strictly rational concerns about organizational welfare. Some managers do implement systems to further personal goals, such as enhancing their power, status, or credibility.

3.6 The Individual at Work

Individuals assume a variety of roles on the job. Although these roles all require various types of information, the specific information needs vary considerably. Compare the needs of the two employees of Bank Loan, Savings Accounts. How similar would they be? How would they differ? Now compare the needs of these salespeople to those of hospital employees such as an operating room nurse, admissions clerk, or food services manager. Do they have the same or different needs? Now compare the needs of
Sikkim Manipal University Page No.: 86

Management Information Systems

Unit 3

two or more jobholders in an organization you know. The manager of manufacturing has different information needs from the manager of finance; the accounts receivable clerk needs different information than the accounts payable clerk. The key challenge for individuals on the job is to diagnose their particular information needs. 3.6.1 The Information Needs of Individual Job Holders 3.6.1.1 Task-Related Needs Consider Ramesh, who is an Area Sales Manager of Airtel, uses information to perform a variety of tasks associated with his job. To identify potential customers he uses leads provided by his sales manager, data published in trade journals and newspapers about the sales volume and number of employees in specific companies, and stories he hears from contacts with prospective customers and from salespeople in other fields. To build a rapport with various distributors, acquires information about their birthdays, the names of their family members, their favorite restaurants, and the types of entertainment they prefer. He also must know a great deal about his company's and his competitors' products. 3.6.1.2 Time Management Needs During a normal workday Ramesh constantly makes decisions about the best way to handle his clients, for example, whether to spend his time trying to close a new deal with a likely prospect or trying to appease an unhappy distributor. He uses the information about sales history and customers businesses to help make these decisions. Ramesh also requires geographical information to be most productive; because the area covered by him is a large territory, Ramesh is most productive when he minimizes his travel time.

Sikkim Manipal University

Page No.: 87

Management Information Systems

Unit 3

3.6.1.3 Performance-Related Needs Not only do employees at all levels require information about the tasks they perform, they also can provide information to management about ways to improve task performance. Ramesh, for example, in his supervisory role, might track the time his sales staff spends on various tasks so that he can propose way of reordering those tasks or reallocating staff effort to increase efficiency. He might also determine that salespeople need new or better information about products to perform their jobs more effectively. Computer technology can also meet the needs associated with ensuring quality in the work place. Individuals involved in quality efforts require ongoing and updated information about customer needs and product defects. 3.6.1.4 Career-Related Needs Many individuals view their jobs in the context of a career. Personal information needs include lists of personal skills, job opportunities inside and outside the organization, and specifications for transfers or advancements. Employees might also maintain logs of their own performance during a week, month, or year to incorporate into discussions about their personal training needs and career development. The member of the regional sales office might maintain such records to help with their personal planning and advancement. 3.6.2 Challenges of Information Management In identifying their information management requirements, individuals face four major challenges in addition to securing the most appropriate information. First, they must deal with large quantities of information that may create overload. Second, they may face insufficient or conflicting information.
Sikkim Manipal University Page No.: 88

Management Information Systems

Unit 3

Third, they must find ways to enhance their personal productivity. Fourth, they must acquire and maintain the technical skills needed for effective personal information management. 3.6.2.1 Dealing with Quantities of Information The gap between the amount of information that an organization can collect and the ability of its employees to make sense of that information has been widening rather than narrowing. The early fear that computers would so improve a person's ability to process and manage information that a job holder would need only one-third to one-half the time to do his or her job has been dispelled The reverse has occurred. Often employees face an infoglut, an overload of information. As individuals move higher in the organizational hierarchy and assume more managerial responsibility, information overload become an even more significant challenge. To avoid such overload individuals must carefully asses their information needs and then find effective ways of managing the required and available information. They must also find ways to manage data better. 3.6.2.2 Facing Insufficient or Conflicting Information Although computers can make large quantities of information available to individuals, such information may not address their needs. Ramesh, ASM of Airtel, may wish to do some library research about competitors' products. In spite of the large amount of information in the library's electronic catalog, she may not be able to secure the precise information she needs. Because computers process input from diverse sources, users may also obtain conflicting information if one source updates information more frequently than another does. 3.6.2.3 Enhancing Personal Productivity Employees in any organization increasingly use information technology to
Sikkim Manipal University Page No.: 89

Management Information Systems

Unit 3

improve their personal productivity. To ensure high productivity, employees must know how to use computers to facilitate, not hinder, their performance. They must know how to access the information they require and recognize when manual data collection and processing is adequate. Often employees must lobby their employers to add new technology that will help increase personal productivity. The ability to show the cost-effectiveness of additional expenditures for diagnosing and meeting information needs is critical. Employees must also understand and demonstrate when advanced technology is a detriment rather than an asset. 3.6.2.4 Maintaining Technical Skills Finally, using information technology effectively requires continuous updating of technical skills. Although many companies provide training to their employees, others do not. Ensuring that employees have the appropriate skills has both financial and time cost implications. As a result, employees may find their mobility and productivity limited by the extent to which they can learn new technical skills independently of their employer. 3.6.3 Self assessment Questions (for Section 3.6) 1. What are the information needs of individual jobholders in an organisation? 2. What are the challenges of information management?

3.7 Information Management Requirements

Individuals must accurately and quickly determine the information needed to respond to the demands of a changing environment and to ensure personal productivity. Personal information needs focus on managing time, records, and personal documents. In particular, workers must acquire, store, retrieve, and communicate information; they must also ensure the privacy and security of the information.
Sikkim Manipal University Page No.: 90

Management Information Systems

Unit 3

3.7.1 Acquiring Information A variety of information industries, such as the newspaper, magazine, radio, television, and advertising industries, assist people in acquiring information for use at work. Many industries publish directories, indices, and evaluations of products and services in either or both paper and electronic form. For example, complete airline schedules are available in printed form as the Official Airline Guide and in electronic form from various for-profit and free sources. Other information available electronically includes current and past stock prices, the best prices and vendors for a variety of goods and services, and computerized bulletin boards of information. 3.7.2 Storing Information Individuals also keep significant amounts of information it files at work. They may keep copies of past correspondence, project documents, sales contacts, or a myriad of other details. Central, state, or local regulations may call for the maintenance of specific corporate records for varying periods. Computerizing some of this information can reduce the amount of paperwork and facilitate retrieval. 3.7.3 Retrieving Information Manual filing systems satisfy many personal needs for organizing and retrieving information. Nevertheless, in these systems we typically can store information in only one location (unless we reproduce copies). Not only do computerized system assist in storing information, but they may also facilitate its retrieval by supporting quick, repeated searches of data, potentially at multiple or off-site locations. For example, individuals or companies that require patent information for scientific inventions can use software to perform sophisticated and rapid patent searches.

Sikkim Manipal University

Page No.: 91

Management Information Systems

Unit 3

3.7.4 Communicating Information Although direct speech and writing are the simplest means of

communication, information technology has made it possible for individuals to communicate with one another more quickly and effectively. The telephone, invented in the nineteenth century, is still one of the most widely used information technologies. In recent years, it has become increasingly sophisticated: People can dial foreign countries without the assistance of a telephone-company operator, multiple parties can communicate simultaneously through conference calling, the caller's telephone number can appear on a, display screen, and individuals can leave messages without using a separate answering machine. Currently, facsimile (fax) technology allows the transmission of written documents and picture-over telephone lines. Soon, the telephone system will routinely communicate moving pictures as well as words. Word processing, desktop publishing, and graphics capabilities of computers have affected the ease of producing and the appearance of written communication. Employees responsible for publishing catalogs for companies could use electronic publishing to make their catalogs available to potential customers in computerized, rather than paper, versions. Workers must also prepare, handle, and store personal documents. They may use dictation or rough notes to record the information. Sophisticated software for word processing desktop publishing and graphics arts has enticed workers to create and modify their own documents, enabling them to immediately redesign documents to meet changing information needs. 3.7.5 Ensuring Privacy and Security Recall Ramesh, Area Sales Manager of Airtel, described earlier in this chapter. Ramesh keeps large amounts of information about his distributors on his personal computer. How can he ensure the integrity of the data?
Sikkim Manipal University Page No.: 92

Management Information Systems

Unit 3

Users and developers of personal computer information systems are often lax in their attention to issues of security and privacy. This is particularly true if their organization lack norms that encourage security-related behavior. However, computer files are highly susceptible to theft and sabotage, particularly because these security breaches are not easily noticeable. A variety of techniques can be used to protect against the theft and destruction of valuable personal information. Although most personal information systems are not meant to be shared, occasionally sharing some personal information, such as calendar or address list, may be desirable. Levels of security can be placed on information systems so that specified information can be shared with others who use the same compute or who are attached to the computer by an electronic network. Directions for Encouraging Security 1) Keep all diskettes in a secure, fireproof location, such as a locked file cabinet, away from heat and magnetism. 2) Store a backup, second set of diskettes at a different site from the first set. 3) Develop a key lock and/ or a password security system for your computer so that only a person having a key or the appropriate password can turn on the computer. Note that information thieves can bypass the key lock relatively easily by disassembling and reassembling the computer case. 4) Consider using encryption software when dealing with highly confidential material such as psychological records. Encryption software uses a secret code to scramble (and unscramble) data you have entered so that it cannot be read even by a thief who manages to physically remove the magnetic storage device from your computer.

Sikkim Manipal University

Page No.: 93

Management Information Systems

Unit 3

Protecting personal privacy has also become a key issue as computer information systems can maintain large amounts of data about individuals without their knowledge. Privacy advocates call for policies and procedures to protect individuals' privacy, such as ensuring the legal collection of only correct and up-to-date data that are relevant to the organization's goals.

3.8 Summary
The first step in effective management of information is a careful diagnosis of information needs. Individuals process information by first attending to certain stimuli and then or, organizing them in a meaningful way. Humans and computers can play different roles in this process, with computers much more able to handle large volumes of data quickly and hum able to deal more effectively with symbols or objects that have meaning. Individuals at work require various types of information for the roles they perform. The information needs include task-related, time management, performancerelated, and can related needs.

3.9 Terminal Questions

1. What are the principal capabilities of information systems? 2. Explain the requirements of information management. 3. Take an organisation of your knowledge and determine the information needed by individual jobholders.

3.10 Multiple Choice Questions

1. - is an active process by which an individual attends to certain stimuli and then organizes them in a meaningful way A. Perception B. Forecasting C. Objectivity D. Subjectivity
Sikkim Manipal University Page No.: 94

Management Information Systems

Unit 3

2. The greatest impact was made by the personal computer, which emerged on an industrial scale in 1977 as _________ . A. Apple I B. Apple II C. Apple III D. Windows 3. EDI stands for ________ A. Electronic data interchange C. Electronic demand interaction B. Electronic data interaction D. Electronic demand interchange

3.11 Answers to SAQs, TQs and MCQs

Self Assessment Questions Section 3.2.3 1. This has been mentioned in section 3.2.1 2. This has been mentioned in section 3.2.2 Section 3.4.3 1. This has been mentioned in section 3.4.1 2. This has been mentioned in section 3.4.2.1 Section 3.6.3 1. This has been mentioned in section 3.6.1 2. This has been mentioned in section 3.6.2 Terminal Question 1. This has been mentioned in section 3.5 2. This has been mentioned in section 3.7 3. This has been mentioned in section 3.6.1 Multiple Choice Questions 1. A 2. B 3. A
Sikkim Manipal University Page No.: 95