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Controlling, Information, and Technology
 

Controlling, Information, and Technology

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    Controlling, Information, and Technology Controlling, Information, and Technology Presentation Transcript

    • 1 - 18 Controlling,Controlling, Information,Information, andand TechnologyTechnology Organizational & Business Management (BMOM5203)Organizational & Business Management (BMOM5203) March 2011 Supervised by: Dr. Nayel Rashed Presented by: Eyad Al-Samman I.D.#: 201010047 CHAPTERCHAPTER 2121
    • 2 - 18 Definitions:Definitions:  ControllingControlling is making things happen as they were planned tois making things happen as they were planned to happen.happen.  Controlling SkillControlling Skill is the ability to useis the ability to use informationinformation andand technologytechnology toto ensure that an event occurs as it was planned.ensure that an event occurs as it was planned.  Organization’s Managers should:Organization’s Managers should: - KnowKnow planningplanning && controllingcontrolling areare inseparable functions.inseparable functions. - ContinuallyContinually controlcontrol && checkcheck thatthat organizational activities are going asorganizational activities are going as planned.planned. - Make corrective changes wheneverMake corrective changes whenever warranted.warranted. Chapter (21): Controlling, Information, and Technology
    • 3 - 18  Controlling subsystemControlling subsystem - Controlling can be viewed as a subsystem of the overall management system.- Controlling can be viewed as a subsystem of the overall management system. This will help managers to enhance success of management system throughThis will help managers to enhance success of management system through effective controlling.effective controlling. Input Organization’s people, money, and raw materials, Machines Work continues Measure Performance (1) New work situation begins ControllingControlling beginsbegins No Corrective Action (3) Compare measurement To standards (2) Take corrective action:(3) -Change plans. -Organization structure. -Influencing methods. (Incentives programs). Output Performance Equivalent to standards Performance different from standards Controlling processControlling process Chapter (21): Controlling, Information, and Technology
    • 4 - 18  Controlling processControlling process Step (1) Measuring performance.Step (1) Measuring performance. - How to measure?- How to measure? (By putting mechanism of measuring performance units) - What to measure?- What to measure? (Measuring different activities of organization) Step (2) Comparing measured performance to standards.Step (2) Comparing measured performance to standards. - Samples of- Samples of standardsstandards:: Step (3) Taking corrective action.Step (3) Taking corrective action. - Managers should consider two issues:- Managers should consider two issues: (1) Recognizing problems.(1) Recognizing problems. A problemA problem is a factor within an organization that is a barrier to organizationalis a factor within an organization that is a barrier to organizational goal attainment.goal attainment. (Example: A worker is not adequately passing on critical info to fellow workers) (2) Recognizing symptoms.(2) Recognizing symptoms. - A symptomA symptom is a sign that a problem exists.is a sign that a problem exists. (Example: A worker’s failure is a symptom of improper job design) .. Profitability standardsProfitability standards.. .. Productivity standards.Productivity standards. .. Personal development standards.Personal development standards. .. Social responsibility standards.Social responsibility standards. Chapter (21): Controlling, Information, and Technology
    • 5 - 18  Power & ControlPower & Control • How to differentiate as a manager between authority and power?How to differentiate as a manager between authority and power?  AuthorityAuthority is the right to give orders.is the right to give orders.  PowerPower is the individual’s ability to influence others to respond to his or heris the individual’s ability to influence others to respond to his or her orders.orders.  PowerPower andand controlcontrol are closely related.are closely related. Total power of a manager:Total power of a manager: (1) Position power:(1) Position power: - Derived from- Derived from organizational positionorganizational position a managera manager holds.holds. (2) Personal power:(2) Personal power: - Derived from a- Derived from a manager’s relationshipmanager’s relationship withwith others.others. Chapter (21): Controlling, Information, and Technology
    • 6 - 18  Power & ControlPower & Control (continued)(continued) • To increase personal power, a managerTo increase personal power, a manager should develop the following beliefs inshould develop the following beliefs in other organization members:other organization members: A sense ofA sense of obligationobligation toward thetoward the manager.manager. (Ex. By doing personal favours for people) A sense ofA sense of obligationobligation toward thetoward the manager.manager. (Ex. By doing personal favours for people) A belief thatA belief that the managerthe manager has a highhas a high level oflevel of expertiseexpertise within thewithin the organizationorganization.. (Ex. Managers must make their achievements visible to others and make a solid reputation) A belief thatA belief that the managerthe manager has a highhas a high level oflevel of expertiseexpertise within thewithin the organizationorganization.. (Ex. Managers must make their achievements visible to others and make a solid reputation) A sense ofA sense of identificationidentification with thewith the manager.manager. (Ex. Managers should behave to make other organization members respect) A sense ofA sense of identificationidentification with thewith the manager.manager. (Ex. Managers should behave to make other organization members respect) TheThe perceptionperception that they arethat they are dependent ondependent on the managerthe manager.. )Ex. Golden Rule: “He who has the gold makes the rules.” Also, necessary resources for employees to do their job including bonuses( TheThe perceptionperception that they arethat they are dependent ondependent on the managerthe manager.. )Ex. Golden Rule: “He who has the gold makes the rules.” Also, necessary resources for employees to do their job including bonuses( Step 1Step 1 Step 2Step 2 Step 3Step 3 Step 4Step 4 Chapter (21): Controlling, Information, and Technology
    • 7 - 18  Power & ControlPower & Control (continued)(continued) • How to make a controlling processHow to make a controlling process successful?successful? By making sure that controlling activities take theBy making sure that controlling activities take the following factors into account:following factors into account: SpecificSpecific organizationalorganizational activitiesactivities beingbeing focused onfocused on SpecificSpecific organizationalorganizational activitiesactivities beingbeing focused onfocused on Factor 1Factor 1 Chapter (21): Controlling, Information, and Technology DifferentDifferent kinds ofkinds of organizationalorganizational goalsgoals DifferentDifferent kinds ofkinds of organizationalorganizational goalsgoals Factor 2Factor 2 TimelyTimely correctivecorrective actionaction TimelyTimely correctivecorrective actionaction Factor 3Factor 3 CommunicationCommunication of theof the mechanicsmechanics of theof the controlcontrol processprocess CommunicationCommunication of theof the mechanicsmechanics of theof the controlcontrol processprocess Factor 4Factor 4
    • 8 - 18  Essentials of InformationEssentials of Information • What is the difference between Data and Information?What is the difference between Data and Information?  DataData are type of facts or statistics.are type of facts or statistics.  InformationInformation is the set of conclusions derived from data analysis that relateis the set of conclusions derived from data analysis that relate to the operation of an organization.to the operation of an organization. • ExampleExample to illustrate relationship between datato illustrate relationship between data and information:and information:  DataData regarding a customer’s demographics to gainregarding a customer’s demographics to gain informationinformation about product demand in the future.about product demand in the future.  DataData regarding hazardous materials accidents toregarding hazardous materials accidents to gaingain informationinformation about how to improve workers’about how to improve workers’ safety.safety. Chapter (21): Controlling, Information, and Technology
    • 9 - 18  Essentials of InformationEssentials of Information (continued)(continued)  Factors influencing value of informationFactors influencing value of information 1) Information appropriateness1) Information appropriateness - It is the relevant of information to a decision-making situation the- It is the relevant of information to a decision-making situation the manager faces.manager faces. 2) Information quality2) Information quality - The degree to which information represents reality.- The degree to which information represents reality. 3) Information timeliness3) Information timeliness - The process of receiving information by managers when it can be usedThe process of receiving information by managers when it can be used to the organization’s advantage is said to be timely.to the organization’s advantage is said to be timely. 4) Information quantity4) Information quantity - It is the amount of decision-related informationIt is the amount of decision-related information manager possess.manager possess. Chapter (21): Controlling, Information, and Technology
    • 10 - 18  Evaluating InformationEvaluating Information  It is the process of determining wither the acquisition of specified informationIt is the process of determining wither the acquisition of specified information is justified.is justified. Does actual value of information exceed its costs? Start Stop or repeat for next data Acquire information Compare value with cost of information Discount for: 1-Deficiencies & Inaccuracies. 2- Missing utilities to yield actual value of information. (Problem info, timing) Estimated expected value of complete, accurate, information with maximum utilities. Select data to be evaluated Stop -Increase value by decreasing inaccuracy or increasing utilities. - or - - Reduce cost by increasing inaccuracy or reducing utilities. Continue ?  Flowchart of main activities inFlowchart of main activities in evaluating informationevaluating information YesYes NoNo NoNo YesYes Chapter (21): Controlling, Information, and Technology
    • 11 - 18  Information Technology (IT)Information Technology (IT)  It is a segment of technology concerns withIt is a segment of technology concerns with computers and telecommunications devices that focuscomputers and telecommunications devices that focus on the use of information in performance of work.on the use of information in performance of work.  Information System (IS)Information System (IS)  It is a network of applications established within anIt is a network of applications established within an organization to provide managers with informationorganization to provide managers with information that will assist them in decision making.that will assist them in decision making.  Smaller organizationsSmaller organizations have a president or a vicehave a president or a vice president as the responsible of the IS.president as the responsible of the IS.  Larger organizationsLarger organizations have a chief Informationhave a chief Information Officer (CIO) as the responsible of managing entire ISOfficer (CIO) as the responsible of managing entire IS department.department. Chapter (21): Controlling, Information, and Technology
    • 12 - 18  Describing Information System (IS):Describing Information System (IS): (1) Operating the IS:(1) Operating the IS: - There are 6 steps needed to be performed by IS personnel (computer operators and- There are 6 steps needed to be performed by IS personnel (computer operators and programmers) to properly operate an IS.programmers) to properly operate an IS. Determining information needsDetermining information needs Determining & gathering appropriate dataDetermining & gathering appropriate data Summarizing data by IS personnelSummarizing data by IS personnel Analyzing data by IS personnelAnalyzing data by IS personnel Transmitting information to appropriate managersTransmitting information to appropriate managers Using the information by managersUsing the information by managers Step 1Step 1 Step 2Step 2 Step 3Step 3 Step 4Step 4 Step 5Step 5 Step 6Step 6 By analyzing: - Decision areas. - Specific decisions within these decision areas. - Evaluated alternatives needed to make these specific decisions. Six steps needed to operate an IS properly in order of their performanceSix steps needed to operate an IS properly in order of their performance Chapter (21): Controlling, Information, and Technology
    • 13 - 18  Describing Information System (IS):Describing Information System (IS): (2) Different managers need different kinds of information:(2) Different managers need different kinds of information: - Appropriate information for one manager may not be appropriate information for another.- Appropriate information for one manager may not be appropriate information for another. Organizational Level Type of Management Manager’s Organizational Objectives Appropriate Info from IS How IS Info is Used? (1) Top management CEO, President e.g. Profit growth e.g. Summary reports of operations e.g. Corporate objectives (2) Middle management Marketing, finance, or production managers e.g. Control of operations e.g. Decisions on strategic plans e.g. Decisions on resource allocations (3) First-line management (Lower Management) First-line managers e.g. Production of goods to meet marketing needs e.g. Operating plans and policies e.g. Dispatch orders or progress reports Appropriate IS information under various sets of organizational circumstancesAppropriate IS information under various sets of organizational circumstances Chapter (21): Controlling, Information, and Technology
    • 14 - 18  Managing Information SystemsManaging Information Systems - There are three activities that improve IS effectiveness- There are three activities that improve IS effectiveness of an organizations.of an organizations. (1) Managing user satisfaction with the IS.(1) Managing user satisfaction with the IS. - It is determined by two factors:It is determined by two factors: a- The quality of IS.a- The quality of IS. (IS quality should be a high quality through the ease of use) b- The information quality.b- The information quality. (It should be a high quality) IS Quality (High quality) IS Quality (High quality) Informatio n Quality (High quality) Informatio n Quality (High quality) Users or employees satisfaction (Managers will get) Users or employees satisfaction (Managers will get) IS Effectiveness (For the Organization) IS Effectiveness (For the Organization)  IS EffectivenessIS Effectiveness Chapter (21): Controlling, Information, and Technology
    • 15 - 18 (2) Managing the IS workforce.(2) Managing the IS workforce. Managers should consider these issues for theManagers should consider these issues for the IS workforce:IS workforce:  It is expensive to replace IS professionalIt is expensive to replace IS professional who left because the cost of replacing iswho left because the cost of replacing is nearlynearly 1 : 2.5 times1 : 2.5 times his or her annual salary.his or her annual salary.  Cost of IS employees in developingCost of IS employees in developing countries iscountries is much less thanmuch less than the cost inthe cost in developed countries.developed countries.  Managing Information SystemsManaging Information Systems (continued)(continued) Problems related to international workers include:Problems related to international workers include:  Integrating and managing international languages and cultures.Integrating and managing international languages and cultures.  Some firms outsource IS work to other countries, such as India, andSome firms outsource IS work to other countries, such as India, and this could be seen as unpatriotic by some customers.this could be seen as unpatriotic by some customers. Chapter (21): Controlling, Information, and Technology
    • 16 - 18  Managing Information SystemsManaging Information Systems (continued)(continued) (3) Managing IS Security.(3) Managing IS Security. Managers should consider these issues forManagers should consider these issues for the IS security:the IS security:  Companies could lose financial, orCompanies could lose financial, or customer data due to security breachescustomer data due to security breaches involving IS.involving IS.  Companies could be vulnerable to viruses,Companies could be vulnerable to viruses, and Trojan horses which paralyseand Trojan horses which paralyse information systems.information systems.  Generally Accepted System SecurityGenerally Accepted System Security PrinciplesPrinciples (GASSP)(GASSP) is a document includesis a document includes a set of best practices to be done by ISa set of best practices to be done by IS managers for preventing security threats.managers for preventing security threats. Chapter (21): Controlling, Information, and Technology
    • 17 - 18  Exploring Your Management Skill:Exploring Your Management Skill: Chapter (21): Controlling, Information, and Technology -- To summarize,To summarize, if you are a manager of a well-known enterprise andif you are a manager of a well-known enterprise and you do want to learn about controlling challenges,you do want to learn about controlling challenges, YOU SHOULD:YOU SHOULD: UNDERSTAND that planning and controlling functions are not separate. UNDERSTAND that planning and controlling functions are not separate. 1 RECOGNIZE that controlling is an organization- level concept not a lower-level one RECOGNIZE that controlling is an organization- level concept not a lower-level one 2 REALIZE that measuring performance is the first step in controlling process REALIZE that measuring performance is the first step in controlling process 3 EMPHASIZE the fact that problems and symptoms are different things EMPHASIZE the fact that problems and symptoms are different things 4 UNDERSTAND that managerial power is a function of personal relationships with others UNDERSTAND that managerial power is a function of personal relationships with others 5 UNDERSTAND that info has values that depends on its appropriateness, timeliness, quantity and quality UNDERSTAND that info has values that depends on its appropriateness, timeliness, quantity and quality 6 DIFFERENTIATE between data and information because they do not have the same meaning or usage DIFFERENTIATE between data and information because they do not have the same meaning or usage 7 UPDATE information systems as needed to ensure making quality decisions UPDATE information systems as needed to ensure making quality decisions 8 WORRY about an information system’s ease of use among all employees WORRY about an information system’s ease of use among all employees 9 RECOGNIZE that the world is not filled with IS professionals who are necessary for your company RECOGNIZE that the world is not filled with IS professionals who are necessary for your company 10 UNDERSTAND that info security is an important factor for maintaining info systems UNDERSTAND that info security is an important factor for maintaining info systems 11
    • 18 - 18 Thank You forThank You for Your Attention …Your Attention … Eyad Al-Samman 2011 http://www.facebook.com/eyadnalsamman