AboutLeo Lingham Expertise In Managing a business, I can cover all aspects of running
a business--business planning, business development, business auditing, business communication, operation management, human
resources management , training, etc.
Experience 18 years of working management experience covering such areas
as business planning, business development, strategic planning,
marketing, management services, personnel administration.
PLUS
24 years of management consulting which includes business planning, strategic planning, marketing, product management, training, business coaching etc.
Expert: Leo Lingham Date: 6/9/2008 Subject: Management Information Systems
Question Describe the information system managers use to control and co-ordinate organizational activities and to help make deciswions. are thse information systems computer based system or based on paper's organizational hierarchy?
Answer MONDAY,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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THE following are the various levels of informations used
for planning/ control of the business organization by
departments/ head office.
ALL THESE INFORMATIONS , THESE DAYS, ARE GENERATED
BY COMPUTERS, MANAGED BY THE MANAGEMENT INFORMATIONS
MANAGER.
MANAGEMENT INFORMATION SYSTEM
MIS is an integrated information system, which is used to provide
management with needed information on a regular basis .
The term system in MIS implies ORDER, ARRANGEMENT, and
PURPOSE.
The information can be used for various purposes,
-strategic planning
-delivering increased productivity
-reducing service cycles
-reducing product development cycles
-reducing marketing life cycles
-increasing the understanding of customers' needs
-facilitating business and process re-engineering.
MIS can also be used across the organization as an information
utility to
-support policy making
-meet regulatory and legislative requirements
-support research and development
-support consistent and rapid decision making
-enable effective and efficient utilization of resources
-provide evidence of business transactions
-identify and manage risks
-evaluate and document quality, performance and achievements.
MAKING INFORMATION AVAILABLE
The availability of information is fundamental to the decision making
process. Decisions are made within the organization at
-STRATEGIC
-OPERATIONAL
-PROGRAMMES
-ACTIVITY LEVEL.
The information needs and decision making activities of the
various levels of management
SENIOR MANAGEMENT
Strategic business direction
-information for strategically positioning the organization
-competitive analysis and performance evaluation,
-strategic planning and policy,
-external factors that influence the direction
etc
MID LEVEL MANAGEMENT
Organizational and operational functions
-information for coordination of work units
-information for delivery programmes
-evaluation of resources usage
-budget control
-problem solving
-operational planning
etc
MID LEVEL MANAGEMENT
Programme management within units
-information for implementing programmes
-information for managing programmes
-management of resources usage
-project scheduling
-problem solving
-operational planning
etc
LINE MANAGEMENT
Activity management
-information for routine decision making
-information for problem solving
-information for service delivery
etc.
MANAGEMENT SUPPORT SYSTEMS
The management oriented support systems provide support
to various levels of management.
Executive Information Systems allow executives to see where a
problem or opportunity exists.
Decision Support Systems are used by mid-level management
to support the solution of problems that require judgement
by the problem solver.
Line Managers use Management Reporting Systems for
routine operational information.
FUNCTIONAL INFORMATION SYSTEMS
These include
-Accounting Information Systems
-Marketing Information Systems
-Enterprise Information Systems
-Decision Support Information Systems
-Executive Information Systems
-Quality Management Information Systems
-Manufacturing Information Systems
-Financial Information Systems
-Human resource Information Systems
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Controls are to be an integral part of any organization's financial and business policies and procedures. Controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization. Controls are simply good business practices.
1.Responsibility
Everyone within the COMPANY has some role in controls. The roles vary depending upon the level of responsibility and the nature of involvement by the individual. The Board of President and senior executives establish the presence of integrity, ethics, competence and a positive control environment. The department heads have oversight responsibility for controls within their units. Managers and supervisory personnel are responsible for executing control policies and procedures at the detail level within their specific unit. Each individual within a unit is to be cognizant of proper internal control procedures associated with their specific job responsibilities.
The Internal Audit role is to examine the adequacy and effectiveness of the company internal controls and make recommendations where control improvements are needed. Since Internal Auditing is to remain independent and objective, the Internal Audit Office does not have the primary responsibility for establishing or maintaining internal controls. However, the effectiveness of the internal controls are enhanced through the reviews performed and recommendations made by Internal Auditing.
2.Elements of Internal Control
Internal control systems operate at different levels of effectiveness. Determining whether a particular internal control system is effective is a judgement resulting from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring - are present and functioning. Effective controls provide reasonable assurance regarding the accomplishment of established objectives.
A. Control Environment
The control environment, as established by the organization's administration, sets the tone of THE COMPANY and influences the control consciousness of its people. MANAGERS of each department, area or activity establish a local control environment. This is the foundation for all other components of internal control, providing discipline and structure. Control environment factors include:
Integrity and ethical values;
The commitment to competence;
Leadership philosophy and operating style;
The way management assigns authority and responsibility, and organizes and develops its people;
Policies and procedures.
B. Risk Assessment
Every entity faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of objectives, linked at different levels and internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement of the objectives, forming a basis for determining how the risks should be managed. Because economics, regulatory and operating conditions will continue to change, mechanisms are needed to identify and deal with the special risks associated with change.
Objectives must be established before MANAGERS can identify and take necessary steps to manage risks. Operations objectives relate to effectiveness and efficiency of the operations, including performance and financial goals and safeguarding resources against loss. Financial reporting objectives pertain to the preparation of reliable published financial statements, including prevention of fraudulent financial reporting. Compliance objectives pertain to laws and regulations which establish minimum standards of behavior.
The process of identifying and analyzing risk is an ongoing process and is a critical component of an effective internal control system. Attention must be focused on risks at all levels and necessary actions must be taken to manage. Risks can pertain to internal and external factors. After risks have been identified they must be evaluated.
Managing change requires a constant assessment of risk and the impact on internal controls. Economic, industry and regulatory environments change and entities' activities evolve. Mechanisms are needed to identify and react to changing conditions.
C. Control Activities
Control activities are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to achievement of the entity's objectives. Control activities occur throughout the organization, at all levels, and in all functions. They include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets and segregation of duties.
Control activities usually involve two elements: a policy establishing what should be done and procedures to effect the policy. All policies must be implemented thoughtfully, conscientiously and consistently.
D.Information and Communication
Pertinent information must be identified, captured and communicated in a form and time frame that enables people to carry out their responsibilities. Effective communication must occur in a broad sense, flowing down, across and up the organization. All personnel must receive a clear message from top management that control responsibilities must be taken seriously. They must understand their own role in the internal control system, as well as how individual activities relate to the work of others. They must have a means of communicating significant information upstream.
E.Monitoring
Control systems need to be monitored - a process that assesses the quality of the system's performance over time. Ongoing monitoring occurs in the ordinary course of operations, and includes regular management and supervisory activities, and other actions personnel take in performing their duties that assess the quality of internal control system performance.
The scope and frequency of separate evaluations depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported immediately to top administration and governing boards.
Control systems change over time. The way controls are applied may evolve. Once effective procedures can become less effective due to the arrival of new personnel, varying effectiveness of training and supervision, time and resources constraints, or additional pressures. Furthermore, circumstances for which the internal control system was originally designed also may change. Because of changing conditions, management needs to determine whether the internal control system continues to be relevant and able to address new risks.
Components of the Control Activity
1.Internal controls rely on the principle of checks and balances in the workplace. The following components focus on the control activity:
2.Personnel need to be competent and trustworthy, with clearly established lines of authority and responsibility documented in written job descriptions and procedures manuals. Organizational charts provide a visual presentation of lines of authority and periodic updates of job descriptions ensures that employees are aware of the duties they are expected to perform.
3.Authorization Procedures need to include a thorough review of supporting information to verify the propriety and validity of transactions. Approval authority is to be commensurate with the nature and significance of the transactions and in compliance with COMPANY policy.
4.Segregation of Duties reduce the likelihood of errors and irregularities. An individual is not to have responsibility for more than one of the three transaction components: authorization, custody, and record keeping. When the work of one employee is checked by another, and when the responsibility for custody for assets is separate from the responsibility for maintaining the records relating to those assets, there is appropriate segregation of duties. This helps detect errors in a timely manner and deter improper activities; and at the same time, it should be devised to prompt operational efficiency and allow for effective communications.
5.Physical Restrictions are the most important type of protective measures for safeguarding COMPANY assets, processes and data.
6.Documentation and Record Retention is to provide reasonable assurance that all information and transactions of value are accurately recorded and retained. Records are to be maintained and controlled in accordance with the established retention period and properly disposed of in accordance with established procedures.
7.Monitoring Operations is essential to verify that controls are operating properly. Reconciliations, confirmations, and exception reports can provide this type of information.
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THE VARIOUS DEPARTMENTAL INFORMATION SYSTEMS USED
ARE AS FOLLOWS
MARKETING MANAGEMENT DEPARTMENT
Marketing management is a DEPARTMENT focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand in a manner that will achieve the company's objectives.
Marketing management therefore encompasses a wide variety of functions and activities, although the marketing department itself may be responsible for only a subset of these. Regardless of the organizational unit of the firm responsible for managing them, marketing management functions and activities include the following
-designing marketing strategy
-developing marketing plan
-competition analysis
-market segmentation
-marketing research
-developing brand
-product development
-product management
-pricing
-sales promotions
-advertising
-direct marketing
-online marketing
-retailing
-merchandising
etc etc
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INFORMATION USED IN MARKETING DEPARTMENT
-consumers behaviors
-consumers spending
-consumers usage
-pricing analysis
-distribution points
-market potential / size
-geographical spread of the market
-promotional spending analysis
-market analysis
etc etc
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SALES MANAGEMENT DEPARTMENT
Sales Management includes features for creating the sales force; organizing sales force, sales forecasting and planning, identifying potential customers, maintaining client information, and creating and managing schedules.
Sales management’s key functions are contemplated around procuring a clear perception into the activities of direct reports as well as the sales activities of the enterprise.
Key functions maintained by sales management are managing organizational sales structure and territories—crucial enterprises turnover; sales reporting and forecasting; quota management—handing assignments to sales representatives, implementing changes, etc.; and incentive management—producing compensation plan.
An organization’s sales management is enhanced through their workforces’ active participation to internal and external programs like symposiums—meetings or conferences conducted to discuss an issue; trainings—coaching people to a mode of performance in introductory, learning and transitional periods; and seminars—a gathering where there occurs information exchange and discussions.
These customized activities indulge the personnel’s yearning to gain more knowledge on individual productivity, team work, streamlining the sales process, sales performance precision, hiring sales champions, motivation methods that work, mastering the art of sales and sales coaching and tools, tactics, strategies for improvement.
The role of the sales manager is to provide an atmosphere where their subordinates can perform. They play a critical role in analytically examining, questioning and settling the sales productivity problems by creating structure and conscientiousness in the sales process.
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INFORMATION USED IN SALES DEPARTMENT
-sales analysis
-territory analysis
-customer analysis
-distributors sales analysis
etc etc
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MANUFACTURING MANAGEMENT DEPARTMENT
Manufacturing management is concerned with creating the company’s products and as such is at the heart of its operations It is very important therefore, to understand the role, the responsibilities and the issues involved in Manufacturing Management.
What do we mean by Manufacturing function and Manufacturing management?
Manufacturing function is the organisation of resources devoted to the production of the products.
Manufacturing management includes all the activities, decisions, responsibilities of manufacturing managers. This is about the way companies produce their products. The tasks, the issues, the decisions.
THE ACTIVITIES INCLUDE
.
PRODUCTION PLANNING
PRODUCTION CONTROL
Just in Time
Material Requirements Plan (MRP)
Manufacturing Resource Planning (MRP II]
Enterprise Resource Planning (ERP]
FACTORY LAYOUT DESIGNING
QUALITY PLANNING AND CONTROL
PROCESS PLANNING /JOB DESIGN
Work study .
Method Study .
Work Measurement .
IMPROVING PERFORMANCE
Lean Manufacturing
Benchmarking
Total Quality Management
MAINTENANCE
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INFORMATION USED IN MANUFACTURING DEPARTMENT
-procurement analysis
-production cost analysis
-production planning
-material analysis
-R&D cost analysis
-inventory holding
-inventory cost analysis
-transport cost analysis
-warehousing cost analysis
etc etc
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FINANCE MANAGEMENT
Finance management addresses the ways in which businesses and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. The term finance may thus incorporate any of the following:
The management of money and other assets;
The management and control of those assets;
Profiling and managing project risks;
"to finance" is to provide funds for business.
The activity of finance is the application of a set of techniques that organizations (entities) use to manage their financial affairs, particularly the differences between income and expenditure and the risks of their investments.
THE ACTIVITIES INCLUDE
-financial planning
-capital budgeting
-managing cash flow
-strategic planning
-corporate planning
-accounts administration
etc etc
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INFORMATION USED IN FINANCE DEPARTMENT
-budgetory control
-expenses analysis
-profit / analysis
-balance sheet
-wages analysis
-product cost analysis
-break even analysis
etc etc
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HUMAN RESOURCE MANAGEMENT
Establish , direct, administer and coordinate the overall HR PROGRAMS
for all the departments of the company.
Strategically plan for, develop and efficiently/effectively operate
the services and capabilities of the company , in alignment with the
corporate objectives / strategies. These activities include
-studying economic indicators
-tracking changes in supply and demand of labor
-identifying departments and their current and future needs
-monitoring the HR performance.
HR management covers areas like
-recruitment / selection
-induction
-orientation
-training
-management development
-compensation development
-performance appraisals
-performance management
-career planning
-coaching
-counsellinges
-staff amenities planning
-event management
-succession planning
-safety management
-staff communication
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INFORMATION USED IN HR DEPARTMENT
1.ABSENTEEISM PER EMPLOYEES [DAYS]
2.AVERAGE RECRUITMENT TIME [DAYS]
3.EMPLOYEE TURNOVER [ % ]
4.EMPLOYEE SATISFACTION [ LEVELS ]
5.AVERAGE EMPLOYEE TENURE [ YEARS]
6.INDUCTION TRAINING [ % OF NEW EMPLOYEES]
7. TRAINING WORKSHOP [ % ] CONDUCTED/PLANNED
8. TRAINING AT EXTERNAL COURSES [ %] ACTUAL / PLANNED
9.PERFORMANCE APPRAISALS [ NOS.] AGAINST TOTAL EMPLOYEES.
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Quality assurance [ QA ]
Quality Assurance covers all activities from design, development, production, installation, servicing and documentation, this introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes.
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INFORMATION USED IN QA/OHS DEPARTMENT
-production rejects analysis
-customer rejects analysis
-rejection cost analysis
-customer complaints analysis
etc etc
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