5. What is ERP? Explain its existence before and its future after?

What are the advantages& Disadvantages of ERP? What is Artificial Intelligence? How is it different from NeuralNetworks?Ans. Enterprise resource planningEnterprise resource planning (ERP) systems integrate internal and external managementinformation across an entire organization, embracing finance/accounting, manufacturing, salesand service, customer relationship management, etc. ERP systems automate this activity with anintegrated software application. Their purpose is to facilitate the flow of information between allbusiness functions inside the boundaries of the organization and manage the connections tooutside stakeholders.ERP systems can run on a variety of computer hardware and network configurations, typicallyemploying a database as a repository for information.CharacteristicsERP (Enterprise Resource Planning) systems typically include the following characteristics:An integrated system that operates in real time (or next to real time), without relying on periodicupdates.A common database, which supports all applications.A consistent look and feel throughout each module.Installation of the system without elaborate application/data integration by the InformationTechnology (IT) department.Connectivity to plant floor informationERP systems connect to realtime data and transaction data in a variety of ways. These systemsare typically configured by systems integrators, who bring unique knowledge on process,equipment, and vendor solutions.Direct integrationERP systems have connectivity (communications to plant floor equipment)as part of their product offering. This requires the vendors to offer specific support for the plant

17. floor equipment that their customers operate. ERP vendors must be expert in their own products,and connectivity to other vendor products, including competitors.Database integrationERP systems connect to plant floor data sources through staging tables ina database. Plant floor systems deposit the necessary information into the database. The ERPsystem reads the information in the table. The benefit of staging is that ERP vendors do not needto master the complexities of equipment integration. Connectivity becomes the responsibility ofthe systems integrator.Enterprise appliance transaction modules (EATM)These

devices communicate directlywith plant floor equipment and with the ERP system via methods supported by the ERP system.EATM can employ a staging table, Web Services, or systemspecific program interfaces (APIs).The benefit of an EATM is that it offers an offthe shelf solution.Customintegration solutionsMany system integrators offer custom solutions. These systemstend to have the highest level of initial integration cost, and can have a higher long termmaintenance and reliability costs. Long term costs can be minimized through careful systemtesting and thorough documentation. Customintegrated solutions typically run on workstationor server class computers.ImplementationERPs scope usually implies significant changes to staff work processes and practices. Generally,three types of services are available to help implement such changesconsulting, customization,and support. Implementation time depends on business size, number of modules, customization,the scope of process changes, and the readiness of the customer to take ownership for the project.Modular ERP systems can be implemented in stages. The typical project for a large enterpriseconsumes about 14 months and requires around 150 consultants. Small projects can requiremonths; multinational and other large implementations can take years. Customization cansubstantially increase implementation times.Process preparationImplementing ERP typically requires changes in existing business processes.[14] Poorunderstanding of needed process changes prior to starting implementation is a main reason forproject failure. It is therefore crucial that organizations thoroughly analyze business processesbefore implementation. This analysis can identify opportunities for process modernization. Italso enables an assessment of the alignment of current processes with those provided by the ERPsystem. Research indicates that the risk of business process mismatch is decreased by: 18. Linking current processes to the organizations strategy;Analyzing the effectiveness of each process;Understanding existing automated solutions.ERP implementation is considerably more difficult (and politically charged) in decentralizedorganizations, because they often have different processes, business rules, data semantics,authorization

hierarchies and decision centers. This may require migrating some business unitsbefore others, delaying implementation to work through the necessary changes for each unit,possibly reducing integration (e.g. linking via Master data management) or customizing thesystem to meet specific needs.A potential disadvantage is that adopting "standard" processes can lead to a loss of competitiveadvantage. While this has happened, losses in one area are often offset by gains in other areas,increasing overall competitive advantage.ConfigurationConfiguring an ERP system is largely a matter of balancing the way the customer wants thesystem to work with the way it was designed to work. ERP systems typically build manychangeable parameters that modify system operation. For example, an organization can select thetype of inventory accounting FIFO or LIFOto employ, whether to recognize revenue bygeographical unit, product line, or distribution channel and whether to pay for shipping costswhen a customer returns a purchase.CustomizationERP systems are theoretically based on industry best practices and are intended to be deployed"as is". ERP vendors do offer customers configuration options that allow organizations toincorporate their own business rules but there are often functionality gaps remaining even afterthe configuration is complete. ERP customers have several options to reconcile functionalitygaps, each with their own pros/cons. Technical solutions include rewriting part of the deliveredfunctionality, writing a homegrown bolt-on/add-on module within the ERP system, or interfacingto an external system. All three of these options are varying degrees of system customization,with the first being the most invasive and costly to maintain. Alternatively, there are non-technical options such as changing business practices and/or organizational policies to bettermatch the delivered ERP functionality.Key differences between customization and configuration include:Customization is always optional, whereas the software must always be configured before use(e.g., setting up cost/profit center structures, organizational trees, purchase approval rules, etc.)

19. The software was designed to handle various configurations, and behaves predictably in anyallowed configuration.The effect of configuration changes on system behavior and performance is predictable and is theresponsibility of the ERP vendor. The effect of customization is less predictable, is thecustomers responsibility and increases testing activities.Configuration changes survive upgrades to new software versions. Some customizations (e.g.code that uses pre defined "hooks" that are called before/after displaying data screens) surviveupgrades, though they require retesting. Other customizations (e.g. those involving changes tofundamental data structures) are overwritten during upgrades and must be reimplemented[26].Customization Advantages:Improves user acceptanceOffers the potential to obtain competitive advantage vis-vis companies using only standardfeatures.Customization Disadvantages:Increases time and resources required to both implement and maintain.Data becomes visible across the organization. Tasks that benefit from this integrationinclude: Sales forecasting, which allows inventory optimization Order tracking, from acceptance through fulfillment Revenue tracking, from invoice through cash receipt Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing(what the vendor invoiced)Disadvantages of ERP Customization is problematic. Re engineering business processes to fit the ERP system may damage competitiveness and/ordivert focus from other critical activities ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs increase vendor negotiating power vis a vis support, maintenance andupgrade expenses. Overcoming resistance to sharing sensitive information between departments can divertmanagement attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations.

20. Artificial IntelligenceArtificial intelligence (AI) is the intelligence of machines and the branch of computer sciencethat aims to create it. AI textbooks define the field as "the study and design of intelligent agents"where an intelligent agent is a system that perceives its

environment and takes actions thatmaximize its chances of success.John McCarthy, who coined the term in 1956, defines it as "the science and engineering ofmaking intelligent machines.Theoretical and computational neuroscience is the field concerned with the theoretical analysisand computational modeling of biological neural systems. Since neural systems are intimatelyrelated to cognitive processes and behaviour, the field is closely related to cognitive andbehavioural modeling.The aim of the field is to create models of biological neural systems in order to understand howbiological systems work. To gain this understanding, neuroscientists strive to make a linkbetween observed biological processes (data), biologically plausible mechanisms for neuralprocessing and learning (biological neural network models) and theory (statistical learningtheory and information theory). 21. 6. Distinguish between closed decision making system & open decision making system?What is if analysis? Why is more time spend in problem analysis & problem definitionas compared to the time spends on decision analysis?Ans. CLASSIFICATION OF DECISION MAKING SYSTEMS [MIS] The decision making systems can be classified in a number of ways. There are two types ofsystems based on the managers knowledge about the environment.A. Closed decision making system:If the manager operates in a known environment then it is a closed decision making system. Theconditions of the closed decision making system are:(a) The manager has a known set of decision alternatives and knows their outcomes fully interms of value, if implemented.(b) The manager has a model, a method or a rule whereby the decision alternatives can begenerated, tested, and ranked.(c) The manager can choose one of them, based on some goal or objective.A few examples are:a product mix problem,an examination system to declare pass or fail, oran acceptance of the fixed deposits.B. Open decision making system:If the manager operates in an environment not known to him, then the decision making system istermed as an open decision making system. The conditions of this system are:(a) The manager does not know all the decision alternatives.(b) The outcome of the decision is also not known fully.

The knowledge of the outcome may bea probabilistic one.(c) No method, rule or model is available to study and finalize one decision among the set ofdecision alternatives. 22. (d) It is difficult to decide an objective or a goal and, therefore, the manager resorts to thatdecision, where his aspirations or desires are met best.Deciding on the possible product diversification lines, the pricing of a new product, and the plantlocation, are some decision making situations which fall in the category of the open decisionmaking systems.The MIS tries to convert every open system to a closed decision making system by providinginformation support for the best decision. The MIS gives the information support, whereby themanager knows more and more about the environment and the outcomes, he is able to generatethe decision alternatives, test them and select one of them. A good MIS achieves this. Open and Closed SystemsA system is commonly defined as a group of interacting units or elements that have a commonpurpose. The units or elements of a system can be cogs, wires, people, computers, and so on.Systems are generally classified as open systems and closed systems and they can take the formof mechanical, biological, or social systems. Open systems refer to systems that interact withother systems or the outside environment, whereas closed systems refer to systems havingrelatively little interaction with other systems or the outside environment. For example, livingorganisms are considered open systems because they take in substances from their environmentsuch as food and air and return other substances to their environment. Humans, for example,inhale oxygen out of the environment and exhale carbon dioxide into the environment. Similarly,some organizations consume raw materials in the production of products and emit finished goodsand pollution as a result. In contrast, a watch is an example of a closed system in that it is arelatively self-contained, self-maintaining unit that has little interacts or exchange with itsenvironment.All systems have boundaries, a fact that is immediately apparent in mechanical systems such asthe watch, but much less apparent in social systems such as organizations. The boundaries ofopen systems, because they interact with other systems or environments, are more flexible thanthose of

closed systems, which are rigid and largely impenetrable. A closedsystem perspectiveviews organizations as relatively independent of environmental influences. The closed-systemapproach conceives of the organization as a system of management, technology, personnel,equipment, and materials, but tends to exclude competitors, suppliers, distributors, andgovernmental regulators. This approach allows managers and organizational theorists to analyzeproblems by examining the internal structure of a business with little consideration of theexternal environment. The closed-system perspective basically views an organization much as athermostat; limited environmental input outside of changes in temperature is required foreffective operation. Once set, thermostats require little maintenance in their ongoing, self-reinforcing function. While the closed-system perspective was dominant through the 1960s, 23. organization scholarship and research subsequently emphasized the role of the environment. Upthrough the 1960s, it was not that managers ignored the outside environment such as otherorganizations, markets, government regulations and the like, but that their strategies and otherdecision-making processes gave relatively little consideration to the impact these external forcesmight have on the internal operations of the organization.Open-systems theory originated in the natural sciences and subsequently spread to fields asdiverse as computer science, ecology, engineering, management, and psychotherapy. In contrastto closed-systems, the open-system perspective views an organization as an entity that takesinputs from the environment, transforms them, and releases them as outputs in tandem withreciprocal effects on the organization itself along with the environment in which the organizationoperates. That is, the organization becomes part and parcel of the environment in which it issituated. Returning for a moment to the example of biological systems as open-systems, billionsof individual cells in the human body, themselves composed of thousands of individual parts andprocesses, are essential for the viability of the larger body in which they are a part. In turn,"macro-level" processes such as eating and breathing make the survival of individual cellscontingent on these larger processes. In

much the same way, open-systems of organizationsaccept that organizations are contingent on their environments and these environments are alsocontingent on organizations.As an open-systems approach spread among organizational theorists, managers beganincorporating these views into practice. Two early pioneers in this effort, Daniel Katz and RobertKahn, began viewing organizations as open social systems with specialized and interdependentsubsystems and processes of communication, feedback, and management linking the subsystems.Katz and Kahn argued that the closed-system approach fails to take into account howorganizations are reciprocally dependent on external environments. For example, environmentalforces such as customers and competitors exert considerable influence on corporations,highlighting the essential relationship between an organization and its environment as well as theimportance of maintaining external inputs to achieve a stable organization.Furthermore, the open-system approach serves as a model of business activity; that is, businessas a process of transforming inputs to outputs while realizing that inputs are taken from theexternal environment and outputs are placed into this same environment. Companies use inputssuch as labor, funds, equipment, and materials to produce goods or to provide services and theydesign their subsystems to attain these goals. These subsystems are thus analogous to cells in thebody, the organization itself is analogous to the body, and external market and regulatoryconditions are analogous to environmental factors such as the quality of housing, drinking water,air and availability of nourishment.The production subsystem, for example, focuses on converting inputs into marketable outputsand often constitutes a primary purpose of a company. The boundary subsystems goal is toobtain inputs or resources, such as employees, materials, equipment, and so forth, from the 24. environment outside of the company, which are necessary for the production subsystem. Thissubsystem also is responsible for providing an organization with information about theenvironment. This adaptive subsystem collects and processes information about a companysoperations with the goal of aiding the companys adaptation

to external conditions in itsenvironment. Another subsystem, management, supervises and coordinates the other subsystemsto ensure that each subsystem functions efficiently. The management subsystem must resolveconflicts, solve problems, allocate resources, and so on.To simplify the process of evaluating environmental influences, some organizational theoristsuse the term "task environment" to refer to aspects of the environment that are immediatelyrelevant to management decisions related to goal setting and goal realization. The taskenvironment includes customers, suppliers, competitors, employees, and regulatory bodies.Furthermore, in contrast to closed-systems, the open-system perspective does not assume that theenvironment is static. Instead, change is the rule rather than the exception. Consequently,investigation of environmental stability and propensity to change is a key task of a company,making the activities of an organization contingent on various environmental forces. As an opensystem, an organization maintains its stability through feedback, which refers to informationabout outputs that a system obtains as an input from its task environment. The feedback can bepositive or negative and can lead to changes in the way an organization transforms inputs tooutputs. Here, the organization acts as a thermostat, identified previously as an example of arelatively closedsystem. The difference between closed-systems and open-systems, then, is inthe complexity of environmental interactions. Closed-systems assume relatively littlecomplexity; a thermostat is a simple device dependent mainly on temperature fluctuations.Conversely, opensystem such as the human body and modern organizations are more intricatelydependent on their environments. The point is that closedsystems versus open-systems do notrepresent a dichotomy, but rather a continuum along which organizations are more open or lessopen to their environments. The key defining variable governing this degree of openness is thecomplexity of the environment in which the organization is situated.Managers must take into consideration their organizations position along the open-closedcontinuum. The Linux computer operating system, for instance, is "open-source" and Red Hat,Inc., the corporation selling the bundled revisions-the multiple inputs from

geographicallydispersed users-represents an organization that would cease to exist if it were not for an open-systems perspective. Thus, stable environments with low complexity are more consistent with arelatively closed-system or mechanistic management style, while rapidly-changing environmentsare more consistent with flexible, decentralized, or "organic" management styles. 25. SET 21. How hardware & software support in various MIS activities of the organization?Explain the transaction stages from manual system to automated systems?Ans. Hardware support for MISGenerally hardware in the form of personal computers and peripherals likeprinters, fax machines, copier, scanners etc are used in organizationto support various MIS activities of the organization.Advantages of a PC:Advantages a personal computer offers are a) Speed A PC can process dataat a very high speed. It can process millions of instructions within fraction of seconds.b) Storage A PC can store large quantity of data in a small space. It eliminates the need ofstoring the conventional office flat files and box files which requires lots of space. The storagesystem in a PC is such that the information can be transferred from place to anotherplace in electronic form.c) Communication A PC on the network can offer great support as a communicator incommunicating information in the forms of text and images. Today a PC with internet is usedas a powerful tool of communication for every business activity.d) Accuracy A PC is highly reliable in the sense that it could be used to performcalculations continuously for hours with a great degree of accuracy. It is possible to obtainmathematical results correct up to a great degree of accuracy.e) Conferencing A PC with internet offers facility of video conferencing worldwide.Business people across the globe travel a lot to meet their business partner, colleagues,customers etc to discuss about business activities.By video conferencing inconvenience of traveling can be avoided. 26. Input unit is used to give input to the processor. Examples of input unit Keyboard,scanner, mouse, bar code reader etc.A processor refers to unit which processes the input received the way it has been

instructed. In acomputer the processor is the CPU Central Processing Unit. It does allmathematical calculations, logical tasks, storing details in the memory etc.Output unit is used to give output s from the computer. Examples of output unit Monitor,printer, speakers etc.Classification of computers:Computers are classified as follows a) Depending upon the processor used eg: Intel PI, PII, PIII, PIV, AMD, Celerons etc.b) Depending upon the purpose for which it is used a Computer may be a general purposecomputer or a specific purpose computer. General purpose computers are the ones usedfor general tasks like business analysis, letter typing, generating reports formanagement decisions, scheduling activities, preparing balance sheets, invoice etc, Specificpurpose computers are custom build for specific tasks like space research, weather forecasting,satellite sensing etc.Unit computers are designed to perform tasks for which they are intended for and for no otherapplications.c) Depending upon the size: A computer may be classified based upon its size andvoluminous computing speed as micro computers, mini computers, main frames and supercomputers. Super computer is the largest in size and also fastest in computing speed. 27. MIS (Managing Information Software) SoftwareMIS software helps for managing your accounts, inventory, taxation, payroll, stock, banking,financial and other records.MIS involves all aspects of gathering, storing, tracking, retrieving and using information within abusiness or organization. All the policies, procedures, and practices that direct an organizationsoperations and the staff that interact with the information, combined with the software andhardware, comprise an information system.MIS Software was developed specifically for the management and tracking of every transactionin regulated environments. Our high-performance, relational database program tracks andmaintains accurate, real-time information, yet it is easy to implement and use.This MIS Software manages your Daily Schedules, Job Summary, Inventory, Accounts and allthe Daily transaction. Records include Full Accounting and Inventory Features.We offer complete custom development Information systems that can take care of businessoperations.Management Information (MIS), as it is popularly

known, deals with the entry and exit ofinformation in a computer system specially designed for the business purpose. It has severalsubcomponents like the Decision support system, marketing information system, financialinformation system, HR information system, production information system and many more.MIS Manager is a readily implementable solution, with capability to interface with any existingData source towards faster and efficient implementation and management. With capability todeploy across the Enterprise, MIS Manager can provide the advantage of managing outputs andReports generated from various sources and technologies.Our System Offers Complete Solutions, which include: Cost Management Product Development Inventory Management Integration with Accounting & Invoice Systems Document Management System MIS Features: Speed of Deployment Customer Support Ease to Use Functionality Achievement of business goals 28. Many inventory reports are available. There are alphabetizing methods that can be used. You canprint physical inventory sheets, parts under minimum stocking quantity, value of inventory (bysales category) and replacement cost. 29. 2. Explain the various behavioral factors of management organization? As per Porter, howcan performance of individual corporations be determined?Ans. Organizational behaviorOrganizational behavior is the study of individuals and their actions within the context ofthe organization in a workplace setting. It is an interdisciplinary field that includes sociology,psychology, communication, and management; and it complements the academic studiesof organizational theory (which is more macro-level) and human resource studies (which is moreapplied and business-related). It may also be referred to as organizationalstudies or organizational science. The field has its roots in industrial and organizationalpsychology.OverviewOrganizational studies encompass the study of organizations from multiple viewpoints, methods,and levels of analysis. For instance, one textbook divides these multiple viewpoints into threeperspectives: modern, symbolic, and postmodern.

Another traditional distinction, presentespecially in American academia, is between the study of "micro" organizational behaviour which refers to individual and group dynamics in an organizational setting and "macro"strategic management and organizational theory which studies whole organizations andindustries, how they adapt, and the strategies, structures and contingencies that guide them. Tothis distinction, some scholars have added an interest in "meso" scale structures - power, culture,and the networks of individuals and i.e. ronit units in organizations and "field" level analysiswhich study how whole populations of organizations interact.Whenever people interact in organizations, many factors come into play. Modern organizationalstudies attempt to understand and model these factors. Like all modernist social sciences,organizational studies seek to control, predict, and explain. There is some controversy over theethics of controlling workers behavior, as well as the manner in which workers are treated (seeTaylors scientific management approach compared to the human relations movement of the1940s). As such, organizational behaviour or OB (and its cousin, Industrial psychology) have attimes been accused of being the scientific tool of the powerful.Those accusationsnotwithstanding, OB can play a major role in organizational development, enhancingorganizational performance, as well as individual and groupperformance/satisfaction/commitment.One of the main goals of organizational theorists is, according to Simms (1994) "to revitalizeorganizational theory and develop a better conceptualization of organizational life." Anorganizational theorist should carefully consider levels assumptions being made in theory, and isconcerned to help managers and administrators. 30. While Classical philosophies rarely took upon a task of developing a specific theory oforganizations, some had used implicit conceptions of general organization in construct views onpolitics and virtue; the Greek philosopher Plato, for example, wrote about the essence ofleadership, emphasized the importance of specialization and discussed a primordial form ofincentive structures in speculating how to get people to embody the goal of the just city in TheRepublic. Aristotle also addressed such topics as persuasive communication. The writings

of16th century Italian philosopher Niccol Machiavelli laid the foundation for contemporary workon organizational power and politics. In 1776, Adam Smith advocated a new form oforganizational structure based on the division of labour. One hundred years later, Germansociologist Max Weber wrote about rational organizations and initiated discussion of charismaticleadership. Soon after, Frederick Winslow Taylor introduced the systematic use of goal settingand rewards to motivate employees. In the 1920s, Australian-born Harvard professor EltonMayo and his colleagues conducted productivity studies at Western Electrics Hawthorne plant inthe United States.Though it traces its roots back to Max Weber and earlier, organizational studies began as anacademic discipline with the advent of scientific management in the 1890s,with Taylorism representing the peak of this movement. Proponents of scientific managementheld that rationalizing the organization with precise sets of instructions and time-motion studieswould lead to increased productivity. Studies of different compensation systems were carriedout.After the First World War, the focus of organizational studies shifted to how human factors andpsychology affected organizations, a transformation propelled by the identification ofthe Hawthorne Effect. This Human Relations Movement focused on teams, motivation, and theactualization of the goals of individuals within organizations.Prominent early scholars included Chester Barnard, Henri Fayol, Frederick Herzberg, AbrahamMaslow, David McClelland, and Victor Vroom.The Second World War further shifted the field, as the invention of large-scale logisticsand operations research led to a renewed interest in rationalist approaches to the study oforganizations. Interest grew in theory and methods native to the sciences, including systemstheory, the study of organizations with a complexity theory perspective and complexity strategy.Influential work was done by Herbert Alexander Simon and James G. March and the so-called"Carnegie School" of organizational behavior.In the 1960s and 1970s, the field was strongly influenced by social psychology and the emphasisin academic study was on quantitative research. An explosion of theorizing, much of it atStanford University and Carnegie Mellon, produced Bounded Rationality,

InformalOrganization, Contingency Theory, Resource Dependence, Institutional Theory,and Organizational Ecology theories, among many others.Starting in the 1980s, cultural explanations of organizations and change became an importantpart of study. Qualitative methods of study became more acceptable, informedby anthropology,psychology and sociology. A leading scholar was Karl Weick. Garbage can model Scientific management Rational DecisionMaking Model31. Methods used in organizational studiesA variety of methods are used in organizational studies. They include quantitative methods foundin other social sciences such as multiple regression, non-parametric statistics, time seriesanalysis,Meta-analysis and ANOVA. In addition, computer simulation in organizationalstudies has a long history in organizational studies. Qualitative methods are also used, suchas ethnography, which involves direct participant observation, single and multiple case analysis,grounded theory approaches, and other historical methods. Fred Arthur.Systems frameworkThe systems framework is also fundamental to organizational theory as organizations arecomplex dynamic goaloriented processes. One of the early thinkers in the field was AlexanderBogdanov, who developed his Tectology, a theory widely considered a precursor of BertalanffysGeneral Systems Theory, aiming to model and design human organizations. Kurt Lewin wasparticularly influential in developing the systems perspective within organizational theory andcoined the term "systems of ideology", from his frustration with behavioural psychologies thatbecame an obstacle to sustainable work in psychology (see Ash 1992: 198-207). The complexitytheory perspective on organizations is another systems view of organizations.The systems approach to organizations relies heavily upon achieving negativeentropy through openness and feedback. A systemic view on organizations is transdisciplinaryand integrative. In other words, it transcends the perspectives of individual disciplines,integrating them on the basis of a common "code", or more exactly, on the basis of the formalapparatus provided by systems theory. The systems approach gives primacy to theinterrelationships, not to the elements of the system. It is from these dynamic

interrelationshipsthat new properties of the system emerge. In recent years,systems thinking has been developed toprovide techniques for studying systems in holistic ways to supplementtraditional reductionistic methods. In this more recent tradition, systems theory in organizationalstudies is considered by some as a humanistic extension of the natural sciences.Managerial rolesIn the late 1960s Henry Mintzberg, a graduate student at MIT undertook a careful study of fiveexecutives to determine what those managers did on their jobs. On the basis of his observations,Mintzberg classifies managerial roles into 3 categories1. Interpersonal Roles2. Decisional Roles3. Informational Roles Prescripted (aim to improve decision making)Motivation in organizationsMotivation the forces either internal or external to a person that arouse enthusiasm and resistanceto pursue a certain course of action. According to Baron et al. (2008):[ "Although motivation is abroad and complex concept, organizational scientists have agreed on its basic characteristics.Drawing from various social sciences, we define motivation as the set of processes that arouse,direct, and maintain human behavior toward attaining some goal" Descriptive (concerned with how the thinker came up with their judgement) Normative (concentrates on how decision should be made)32. Theories of decision making can be subdivided into three categories 33. 3. Compare various types of development aspect of Information System? Explain thevarious stages of SDLC?Ans. The Various Types of Information Systems Analysis ProjectsThere are three types of information systems projects: manual, manual to automated, andreautomation. The last, reautomation, has four subtypes: system rewrite, system redesign andredevelopment, system enhancement, and system maintenance. Each of these involves different,and yet similar, work. The work is similar in that the development activities which are involvedin each follow the same general phases and approach. They are different in that the environmentthat the analyst must examine has substantially different characteristics.This chapter

examines each of the various types of analysis projects, along with a briefdiscussion of the Gibson-Nolan electronic data processing (EDP) stages of growth theory and itsimpact on the analysis process. In addition there is a brief discussion of the Anthony model oforganizational structure.A definitionPersonal Computer (PC) - also known as microcomputers or workstations, by the model name ofthe specific vendor (i.e. Apple , Macintosh , or PS/2 or by the brand name, model and speed ofthe processor (i.e. Pentium, Intel or 486/33 Any combination of processor, input device andoutput device designed for use by a single individual. Personal computers may also be calledworkstations.Personal computers may have a character orientation, a graphical orientation, may be connectedto other personal computers, or may operate in a stand alone mode, and may or may not haveconnectivity to a mainframe.Personal computer software is normally characterized by an operating system which providesbasic file access, management and display services and well as application scheduling andmanagement.Reasons For Initiating Information Systems Analysis ProjectsInformation systems analysis projects are initiated for a variety of reasons. These include:As part of a program of System Modernization.Many firms undertake a series of projects to upgrade all data processing technology - bothhardware, operating system and support software and automated business applications. This is 34. usually initiated as part of a desire to eliminate the older centralized applications and to replacethem with newer personal computer based system.A change in the basic aspects of the users functional roleAs the companies redesign their basic processes either as a result of a continuous improvementeffort, or a more radical Business Process Reengineering effortA change in company strategic objectivesIncreased competition, both in the local and international markets have forced many firms torethink not only how they do business but also what business they should be in. In someinstances, manufacturing firms are becoming service firms, primary producers are becomingassemblers of components produced by others, companies are changing their lines of business,and reexamining the customer

base they are focused on. Large firms are divesting themselves ofdivisions and whole product lines and reverting back to what they feel are their core businesses.A need for increased performance, greater or different functionality, different operatingcharacteristics, or increased user friendliness from the automated systemsAs business conditions change, there are increased user demands for greater or in some casesdifferent functionality from the exiting systems. Increased user computer literacy, and exposureto PC applications with Graphical User Interfaces (GUI) have changed user expectations for andtolerance of sometimes awkward, character based systems.A need for more direct and immediate access to the firms automated files.The exposure to the wide variety of workstation based tools and systems. Most userworkstations or PCs have extensive files of their own. The data in these files may have comefrom information keyed in by the user, transferred to the users machine from another usermachine via diskette, or down-loaded to the users machine from either another workstation orfrom a mini-computer or mainframe via a file transfer mechanism. These transfers are timeconsuming and awkward. Users are increasingly looking for faster access to data regardless ofwhere it resides.A need to upgrade the system to take advantage of more current technology.Vendors are increasing the power (speed and capacity) of their offerings. Capacity includes bothRandom Access Memory (RAM) and hard drive storage. The speed, capacity and variety ofperipheral equipment (printers, plotters, scanners, fax, CDROM (Compact Disk - Read OnlyMemory), high resolution monitors, etc.) continues to expand as well. As capacity and speedincrease and as more and more peripheral capability becomes available the variety ofapplications available increases as well and users rush to acquire these new tools.A need to clean up the system 35. All computer systems tend to get cluttered over time with a patchwork of add-on modules, files,and processes. These pieces do not work together in a harmonious manner but rather interactawkwardly and inefficiently.Given the above, we can no long assume that a systems analysis project has been undertaken asthe first step toward developing a new or improved .application. Nor can we assume that

manyof the constraints that applied to the development of mainframe systems are still in effect. In factwe can no longer assume that we will be developing a mainframe resident system at all. Todayssystems can reside on a variety of hardware platforms and take a variety of forms. The Three Types of Information Systems Analysis ProjectsThe scope and magnitude of the functional and procedural changes may be fairly narrow or wideranging. In some cases, aside from re-coding the system, there may be no changes infunctionality at all.Given the variety of reasons for a project being undertaken, the starting point may also be quitedifferent from project to project. These starting points reflect the differences in current userprocessing environments and the current level of user automation. Because of these differencesin current user processing environments and user automation, information systems projects canbe categorized into three types. 1. Manual 2. Manual to automated 3. Re automation 4. The last, re automation, has four subtypes. a) System rewrite b) System redesign and redevelopment c) System enhancement d) System maintenanceFrom an analysis perspective, each of these types of projects involves different, and yet similar,work. The work is similar in that the development activities, which are involved in each, followthe same general phases and approach. They are different in that each of the starting or currentenvironments that the analyst must examine have substantially different characteristics. Briefly,these six environmental types and subtypes are as follows. 36. ManualFrom the analysts viewpoint, this is the simplest environment in that all the components of theenvironment are overt. That is, they are clearly visible from observation and analysis. All work isperformed by user personnel, who work directly with their files, forms, and documents. Theprocessing of these forms and documents, the work flows, and the individual steps are easilyfollowed.At their core all systems analysis projects are concerned with the examination of what are, oronce were, essentially manual operations. In fact, it is helpful, regardless of the type of project,to view all the activities of the user as if they were still being performed by hand. This allows theanalyst to examine in detail each task being performed, each data operation,

each datamovement, and each data carrier (a data carrier is a piece of paper, a form, a report, a worksheet,a transaction, etc.).The analysts task in the manual environment is to simplify the work flows, streamline theprocesses, reduce redundant processing, rearrange the tasks so as to ensure more orderlyprocessing, and ensure that the forms, documents, and reports contain all necessary data. Eachtask, and each task step, must be examined to determine (a) if its execution is appropriate and (b)if it is appropriately defined, positioned, and performed.The results of the analysis of manual systems are usually new or revised standards andprocedures which clearly define the processing sequence for the task to be performed and therules which govern their performance. In addition the analyst may develop new input forms,control procedures, monitoring procedures, and reports. The output from the analysis may alsoinclude new or revised work and data flow diagrams.Manual to automatedWorking in this type of environment differs from working in the strictly manual environment inthat the analysts task is to determine whether the manual environment, in whole or in part, canbe augmented by automation, and if so, to what extent. The existing environment must beanalyzed in the same manner as the purely manual, but as the analysis progresses, the analystmust also find ways of substituting automated processing for manual processing. To accomplishthis, the analyst must break each process and task into its component steps and determine if therules for performing the step lend themselves to machine automation.The analysts output for this type of project closely resembles that produced from the strictlymanual project. However, here the analyst must also develop (a) new, input forms suitable to anautomated environment, (b) file content requirements for ongoing master and transaction files,(c) report layouts, and (d) a processing flow which intermixes the original and unmodifiedmanual processes, new manual processes, and new automated processes. The analyst must alsomake a determination as to the costs involved in the automation process, provide projectschedules, and make hardware and software analyses and recommendations.

37. ReautomationThere have been many attempts to set down analytical and design methodologies fordevelopment projects in automated environments. What many of them ignore is that there aredifferent types of automated business environments, which, while seemingly similar, must in factbe treated differently.What distinguishes these environments is the extent and depth of automation. Early analysismethodologies were predicated on a manual environment. The aim of the analysis was todevelop an automated solution to user business problems. In todays environment, most firms ofany size have existing levels of automation. Many in fact have gone through two and threerounds of automation and reautomation.Many of the existing processes and procedures are either totally automated or were developed asa result of a partial automation of the user area. Many of the forms and transaction flows withinthis type of environment are automated or semi-automated.This prior automation poses a trap for the unwary analyst in that the currently used forms anddocuments of the business may in fact have been designed to support and accommodate anautomated system. These automated systems may have been designed for the business using alevel of technology which is now outdated or inefficient, or for a set of user requirements or abusiness environment which has since become wholly or partially obsolete. Additionally, theseforms and documents are the result of some prior analysts efforts and may not in fact reflect thenatural information or data needs of the firm.The processing flows themselves may be unnatural, to the extent that they reflect the intrusion ofautomated processing sequences. These flows may have been structured to accommodate theneeds of the then prevalent technology rather than the needs of the business. Each of thedocuments, transactions and process flows must be reexamined in the light of the currentbusiness environment and the current business processing needs. They may merely need to berefurbished, or they may need to be scrapped entirely in favor of a new and more streamlinedprocessing flow.The analyst must look with care on batch flows, "processing windows," and transaction holdingqueues. These constraints may have been imposed on the processing environment by therequirements of

prior automation efforts, most probably implemented under what is now anoutdated, or, worse, obsolete technology. Re automation is a major type of project whichincorporates the following sub-categories.Platform is the term used to distinguish between the different classes or sizes of computingmachinery mainframe, minicomputer and microcomputer (or personal computer orworkstation), between the various operating systems on each machine, and in some casesbetween stand-alone machines and networked machines.In some cases the term platform is used to distinguish between one combination of machine andsoftware and some other combination. 38. Throughout this book we will use the qualified term hardware platform to represent differencesin computing machinery and the qualified term software platform to represent differences inoperating systems on a given class of machinery.The Corporate levelThis level consists those information and business systems which are designed for use by allareas of the corporation. These systems are normally characterized by: 1. Specific functional area responsibility 2. Centralized development and maintenance 3. Requirements that conform to and are constrained by corporate-wide policies and procedures 4. Cross-function or cross-business boundary use 5. Mainframe or Minicomputer residence 6. Supported by additional, nonautomated forms 7. Augmented by extensive manual procedures.The Departmental LevelThis level consists of information and business systems which are designed for use by a specificarea or areas of the corporation. These systems are normally characterized by: 1. Specific functional area responsibility 2. Central development and maintenance, local development and maintenance or vendor supplied and supported 3. Support for a single function or activity 4. Minicomputer or Mainframe residenceThe Personal LevelThis level consists of information and business systems which are designed for use by a singleindividual. These systems are normally characterized by: 1. Personal computer residence 2. Support for a single user 3. Customized processing or general facility 4. Customized settings. 5. User built or vendor supplied and maintained.

39. 4. Compare & Contrast E-enterprise business model with traditional business organizationmodel? Explain how in E-enterprise manager role & responsibilities are changed? Explainhow manager is a knowledge worker in E-enterprise?Ans. Business process modelingBusiness Process Modeling (BPM) in systems engineering is the activity of representingprocesses of an enterprise, so that the current process may be analyzed and improved. BPM istypically performed by business analysts and managers who are seeking to improve processefficiency and quality. The process improvements identified by BPM may or may not requireInformation Technology involvement, although that is a common driver for the need to model abusiness process, by creating a process master.Change management programs are typically involved to put the improved business processesinto practice. With advances in technology from large platform vendors, the vision of BPMmodels becoming fully executable (and capable of simulations and round-trip engineering) iscoming closer to reality every day.Techniques to model business process such as the flow chart, functional flow blockdiagram, control flow diagram, Gantt chart, PERT diagram, and IDEF have emerged since thebeginning of the 20th century. The Gantt charts were among the first to arrive around 1899, theflow charts in the 1920s, Functional Flow Block Diagram and PERT in the 1950s, Data FlowDiagrams and IDEF in the 1970s. Among the modern methods are Unified ModelingLanguage and Business Process Modeling Notation. Still, these represent just a fraction of themethodologies used over the years to document business processes.[1] The term "business processmodeling" itself was coined in the 1960s in the field of systems engineering by S. Williams in

40. his 1967 article "Business Process Modeling Improves Administrative Control".[2] His idea wasthat techniques for obtaining a better understanding of physical control systems could be used ina similar way for business processes. It took until the 1990s before the term became popular.In the 1990s the term "process" became a new productivity paradigm.[3] Companies wereencouraged to think in processes instead of functions and procedures. Process thinking looks atthe chain of events in the company from purchase to supply, from

order retrieval to sales etc. Thetraditional modeling tools were developed to picture time and costs, while modern methods focuson cross-function activities. These cross-functional activities have increased severely in numberand importance due to the growth of complexity and dependencies. New methodologies suchas business process redesign, business process innovation, business processmanagement, integrated business planning among others all "aiming at improving processesacross the traditional functions that comprise a company".In the field of software engineering the term "business process modeling" opposed thecommon software process modeling, aiming to focus more on the state of the practiceduring software development. In that time early 1990s all existing and new modeling techniquesto picture business processes were considered and called "business process modeling languages."In the Object Oriented approach, it was considered to be an essential step in the specification ofBusiness Application Systems. Business process modeling became the base of newmethodologies, that for example also supported data collection, data flow analysis, process flowdiagrams and reporting facilities. Around 1995 the first visually oriented tools for businessprocess modeling and implementation were being presented.Business processA business process is a collection of related, structured activities or tasks that produce a specificservice or product (serve a particular goal) for a particular customer or customers. There arethree main types of business processes: 1. Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management". 2. Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales. 3. Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Technical support. 41. A business process can be decomposed into several subprocesses, which have their ownattributes, but also contribute to achieving the goal of the super-process. The analysis of

businessprocesses typically includes the mapping of processes and sub-processes down to activity level.A business process model is a model of one or more business processes, and defines the ways inwhich operations are carried out to accomplish the intended objectives of an organization. Such amodel remains an abstraction and depends on the intended use of the model. It can describe theworkflow or the integration between business processes. It can be constructed in multiple levels.A business reference model is a reference model, concentrating on the functional andorganizational aspects of an enterprise, service organization or government agency. In generala reference model is a model of something that embodies the basic goal or idea of something andcan then be looked at as a reference for various purposes. A business reference model is a meansto describe the business operations of an organization, independent of the organizationalstructure that perform them. Other types of business reference model can also depict therelationship between the business processes, business functions, and the business areas businessreference model. These reference models can be constructed in layers, and offer a foundation forthe analysis of service components, technology, data, and performance.The most familiar business reference model is the Business Reference Model of the US FederalGovernment. That model is a function-driven framework for describing the business operationsof the Federal Government independent of the agencies that perform them. The BusinessReference Model provides an organized, hierarchical construct for describing the day-to-daybusiness operations of the Federal government. While many models exist for describingorganizations - organizational charts, location maps, etc. this model presents the business usinga functionally driven approach.A business model, which may be considered an elaboration of a business process model,typically shows business data and business organizations as well as business processes. Byshowing business processes and their information flows a business model allows businessstakeholders to define, understand, and validate their business enterprise. The data model part ofthe business model shows

how business information is stored, which is useful fordeveloping software code. See the figure on the right for an example of the interaction betweenbusiness process models and data models.Usually a business model is created after conducting an interview, which is part of the businessanalysis process. The interview consists of a facilitator asking a series of questions to extractinformation about the subject business process. The interviewer is referred to as a facilitator toemphasize that it is the participants, not the facilitator, who provide the business process 42. information. Although the facilitator should have some knowledge of the subject businessprocess, but this is not as important as the mastery of a pragmatic and rigorous methodinterviewing business experts. The method is important because for most enterprises a team offacilitators is needed to collect information across the enterprise, and the findings of all theinterviewers must be compiled and integrated once completed.Business models are developed as defining either the current state of the process, in which casethe final product is called the "as is" snapshot model, or a concept of what the process shouldbecome, resulting in a "to be" model. By comparing and contrasting "as is" and "to be" modelsthe business analysts can determine if the existing business processes and information systemsare sound and only need minor modifications, or if reengineering is required to correct problemsor improve efficiency. Consequently, business process modeling and subsequent analysis can beused to fundamentally reshape the way an enterprise conducts its operations.Business process reengineering (BPR) is an approach aiming at improvements by means ofelevating efficiency and effectiveness of the processes that exist within and across organizations.The key to business process reengineering is for organizations to look at their business processesfrom a "clean slate" perspective and determine how they can best construct these processes toimprove how they conduct business.Business process reengineering (BPR) began as a private sector technique to help organizationsfundamentally rethink how they do their work in order to dramatically improve customer service,cut operational costs, and

become world-class competitors. A key stimulus for reengineering hasbeen the continuing development and deployment of sophisticated information systems andnetworks. Leading organizations are becoming bolder in using this technology to supportinnovative business processes, rather than refining current ways of doing workBusiness process managementBusiness process management is a field of management focused on aligning organizations withthe wants and needs of clients. It is a holistic management approach that promotes businesseffectiveness and efficiency while striving for innovation, flexibility and integration withtechnology. As organizations strive for attainment of their objectives, business processmanagement attempts to continuously improve processes - the process to define measure andimprove your processes a "process optimization" process. 43. 5. What do you understand by service level Agreements (SLAs)? Why are they needed?What is the role of CIO in drafting these? Explain the various security hazards faced by anIS?Ans. Service-level agreementA service-level agreement (SLA) is a part of a service contract where the level of service isformally defined. In practice, the term SLA is sometimes used to refer to the contracted deliverytime (of the service) or performance. As an example, internet service providers will commonlyinclude service level agreements within the terms of their contracts with customers to define thelevel(s) of service being sold in plain language terms. In this case the SLA will typically have atechnical definition in terms of mean time between failures (MTBF), mean time torepair or mean time to recovery (MTTR); various data rates; throughput; jitter; or similarmeasurable details.A service-level agreement is a negotiated agreement between two parties, where one is thecustomer and the other is the service provider. This can be a legally binding formal or aninformal "contract" (for example, internal department relationships). Contracts between theservice provider and other third parties are often (incorrectly) called SLAs because the level ofservice has been set by the (principal) customer, there can be no "agreement" between thirdparties; these agreements are simply a "contract." Operational-level agreements or OLAs,however, may be used by internal groups to support SLAs.The SLA records a common

understanding about services, priorities, responsibilities, guarantees,and warranties. Each area of service scope should have the "level of service" defined. The SLAmay specify the levels of availability, serviceability, performance, operation, or other attributesof the service, such as billing. The "level of service" can also be specified as "target" and"minimum," which allows customers to be informed what to expect (the minimum), whileproviding a measurable (average) target value that shows the level of organization performance.In some contracts, penalties may be agreed upon in the case of noncompliance of the SLA (butsee "internal" customers below). It is important to note that the "agreement" relates to theservices the customer receives, and not how the service provider delivers that service.SLAs commonly include segments to address: a definition of services, performancemeasurement, problem management, customer duties, warranties, disaster recovery, terminationof agreement. 44. SLAs have been used since late 1980s by fixed line telecom operators as part of their contractswith their corporate customers. This practice has An email system for the entire organization. There are chances of difficulties arising in this type of SLA as level of the services being offered may vary for different customers A mobile service provider offers a routine service to all the customers and offers certain maintenance as a part of offer with the universal charging A car service station offers a routine service to all the customers and offers certain maintenance as a part of offer with the universal charging. Service-based SLA: An agreement for all customers using the services being delivered by the service provider. For example: Customerbased SLA: An agreement with an individual customer group, covering all the services they use. For example, an SLA between a supplier (IT service provider) and the finance department of a large organization for the services such as finance system, payroll system, billing system, procurement/purchase system, etc.spread such that now it is common for acustomer to engage a service provider by including a service level agreement in a wide range ofservice contracts in practically all industries and markets. Internal departments (such as IT, HR,and real estate) in larger organizations have adopted the idea of

using service-level agreementswith their "internal" customers users in other departments within the same organization. Onebenefit of this can be to enable the quality of service to be benchmarked with that agreed toacross multiple locations or between different business units. This internal benchmarking canalso be used to market test and provide a value comparison between an in-house department andan external service provider.Service level agreements are, by their nature, "output" based the result of the service asreceived by the customer is the subject of the "agreement." The (expert) service provider candemonstrate their value by organizing themselves with ingenuity, capability, and knowledge todeliver the service required, perhaps in an innovative way. Organizations can also specify theway the service is to be delivered, through a specification (a service level specification) andusing subordinate "objectives" other than those related to the level of service. This type ofagreement is known as an "input" SLA. This latter type of requirement is becoming obsolete asorganizations become more demanding and shift the delivery methodology risk on to the serviceprovider.Service level agreements at different levelsSLAs are also defined at different levels: TAT (Turn-Around Time): Time taken to complete a certain task.Uptime is also a common metric, often used for data services such as shared hosting, virtualprivate servers and dedicated servers. Common agreements include percentage of networkuptime, power uptime, number of scheduled maintenance windows, etc.Many SLAs track to the Information Technology Infrastructure Library specifications whenapplied to IT services. FCR (First-Call Resolution): Percentage of incoming calls that can be resolved without the use of a callback or without having the caller call back the helpdesk to finish resolving the case. TSF (Time Service Factor): Percentage of calls answered within a definite timeframe, e.g., 80% in 20 seconds. ASA (Average Speed to Answer): Average time (usually in seconds) it takes for a call to be answered by the service desk. ABA (Abandonment Rate): Percentage of calls abandoned while waiting to be answered. Service-level SLA: covering all SLM issue relevant to the specific services, in relation to this specific customer group.Common

metricsService level agreements can contain numerous service performance metrics withcorresponding service level objectives. A common case in IT service management is a callcenter or service desk. Metrics commonly agreed to in these cases include: Customerlevel SLA: covering all SLM issues relevant to the particular customer group, regardless of the services being used. Corporate-level SLA: Covering all the generic service level management (often abbreviated as SLM) issues appropriate to every customer throughout the organization. These issues are likely to be less volatile and so updates (SLA reviews) are less frequently required. Multilevel SLA: The SLA is split into the different levels, each addressing different set of customers for the same services, in the same SLA.45. (for example, head office staff may use high-speed LAN connections while local offices may have to use a lower speed leased line). 46. OutsourcingOutsourcing involves transfer of responsibility from an organization to a supplier. Themanagement of this new arrangement is through a contract that may include a service levelagreement. The contract may involve financial penalties and the right to terminate if SLAsmetrics are consistently missed. Setting, tracking, and managing SLAs is an important part ofthe outsourcing relationship management(ORM) discipline. It is typical that specific SLAs arenegotiated up front as part of the outsourcing contract, and they are utilized as one of the primarytools of outsourcing governance. 47. 6. Case Study: Information system in a restaurant.Ans. Case Study on MIS: Information System in RestaurantCase Summary:A waiter takes an order at a table, and then enters it online via one of the six terminals located inthe restaurant dining room. The order is routed to a printer in the appropriate preparation area:the cold item printer if it is a salad, the hot-item printer if it is a hot sandwich or the bar printer ifit is a drink. A customers meal check-listing (bill) the items ordered and the respective pricesare automatically generated. This ordering system eliminates the old three-carbon-copy guestcheck system as well as any problems caused by a waiters handwriting. When the kitchen runsout of a food item, the cooks send out an out of stock message, which will

be displayed on thedining room terminals when waiters try to order that item. This gives the waiters faster feedback,enabling them to give better service to the customers. Other system features aid management inthe planning and control of their restaurant business. The system provides up-to-the-minuteinformation on the food items ordered and breaks out percentages showing sales of each itemversus total sales. This helps management plan menus according to customers tastes. Thesystem also compares the weekly sales totals versus food costs, allowing planning for tighter costcontrols. In addition, whenever an order is voided, the reasons for the void are keyed in. Thismay help later in management decisions, especially if the voids consistently related to food orservice. Acceptance of the system by the users is exceptionally high since the waiters andwaitresses were involved in the selection and design process. All potential users were asked togive their impressions and ideas about the various systems available before one was chosen.Questions:In the light of the system, describe the decisions to be made in the area of strategic planning,managerial control and operational control? What information would you require to make suchdecisions?What would make the system a more complete MIS rather than just doing transactionprocessing?Explain the probable effects that making the system more formal would have on the customersand the management. 48. Solution:1. A management information system (MIS) is an organized combination of people, hardware,communication networks and data sources that collects, transforms and distributes information inan organization. An MIS helps decision making by providing timely, relevant and accurateinformation to managers. The physical components of an MIS include hardware, software,database, personnel and procedures.Management information is an important input for efficient performance of various managerialfunctions at different organization levels. The information system facilitates decision making.Management functions include planning, controlling and decision making. Decision making isthe core of management and aims at selecting the best alternative to achieve an objective. Thedecisions

may be strategic, tactical or technical. Strategic decisions are characterized byuncertainty. They are future oriented and relate directly to planning activity. Tactical decisionscover both planning and controlling. Technical decisions pertain to implementation of specifictasks through appropriate technology. Sales region analysis, cost analysis, annual budgeting, andrelocation analysis are examples of decision-support systems and management informationsystems.There are 3 areas in the organization. They are strategic, managerial and operational control.Strategic decisions are characterized by uncertainty. The decisions to be made in the area ofstrategic planning are future oriented and relate directly to planning activity. Here basicallyplanning for future that is budgets, target markets, policies, objectives etc. is done. This isbasically a top level where up-to-the minute information on the food items ordered and breaksout percentages showing sales of each item versus total sales is provided. The top level wherestrategic planning is done compares the weekly sales totals versus food costs, allowing planningfor tighter cost controls. Executive support systems function at the strategic level, supportunstructured decision making, and use advanced graphics and communications. Examples ofexecutive support systems include sales trend forecasting, budget forecasting, operating plandevelopment, budget forecasting, profit planning, and manpower planning.The decisions to be made in the area of managerial control are largely dependent upon theinformation available to the decision makers. It is basically a middle level where planning ofmenus is done and whenever an order is voided, the reasons for the void are keyed in which laterhelps in management decisions, especially if the voids are related to food or service. Themanagerial control that is middle level also gets customer feedback and is responsible forcustomer satisfaction.The decisions to be made in the area of operational control pertain to implementation of specifictasks through appropriate technology. This is basically a lower level where the waiter takes theorder and enters it online via one of the six terminals located in the restaurant dining room andthe order is routed to a printer in the appropriate preparation area. The items ordered list and the

49. respective prices are automatically generated. The cooks send out of stock message when thekitchen runs out of a food item, which is basically displayed on the dining room terminals whenwaiter tries to order that item. This basically gives the waiters faster feedback, enabling them togive better service to the customers. Transaction processing systems function at the operationallevel of the organization. Examples of transaction processing systems include order tracking,order processing, machine control, plant scheduling, compensation, and securities trading.The information required to make such decision must be such that it highlights the trouble spotsand shows the interconnections with the other functions. It must summarize all informationrelating to the span of control of the manager. The information required to make these decisionscan be strategic, tactical or operational information.Advantages of an online computer system:Eliminates carbon copiesWaiters handwriting issuesOut-ofstock messageFaster feedback, helps waiters to service the customersAdvantages to management:Sales figures and percentages item-wiseHelps in planning the menuCost accounting details2. If the management provides sufficient incentive for efficiency and results to their customers, itwould make the system a more complete MIS and so the MIS should support this culture byproviding such information which will aid the promotion of efficiency in the managementservices and operational system. It is also necessary to study the keys to successful ExecutiveInformation System (EIS) development and operation. Decision support systems would alsomake the system a complete MIS as it constitutes a class of computer-based information systemsincluding knowledge-based systems that support decisionmaking activities. DSSs serve themanagement level of the organization and help to take decisions, which may be rapidly changingand not easily specified in advance.Improving personal efficiency, expediting problem solving (speed up the progress of problemssolving in an organization), facilitating interpersonal communication, promoting learning andtraining, increasing organizational control, generating new evidence in support of a decision,creating a competitive advantage over competition, encouraging exploration and discovery onthe part of

the decision maker, revealing new approaches to thinking about the problem space 50. and helping automate the managerial processes would make the system a complete MIS ratherthan just doing transaction processing.3. The management system should be an open system and MIS should be so designed that ithighlights the critical business, operational, technological and environmental changes to theconcerned level in the management, so that the action can be taken to correct the situation. Tomake the system a success, knowledge will have to be formalized so that machines worldwidehave a shared and common understanding of the information provided. The systems developedwill have to be able to handle enormous amounts of information very fast.An organization operates in an ever-increasing competitive, global environment. Operating in aglobal environment requires an organization to focus on the efficient execution of its processes,customer service, and speed to market. To accomplish these goals, the organization mustexchange valuable information across different functions, levels, and business units. By makingthe system more formal, the organization can more efficiently exchange information among itsfunctional areas, business units, suppliers, and customers.As the transactions are taking place every day, the system stores all the data which can be usedlater on when the hotel is in need of some financial help from financial institutes or banks. As theinventory is always entered into the system, any frauds can be easily taken care of and ifanything goes missing then it can be detected through the system. 51. THANK YOU
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