MIS in Management Levels
In order to understand the importance of MIS one must
understand and appreciate the role that MIS plays in an organization. An
organization may be conceived in a lot of ways. One can visualize an
organization as a balance sheet or a function of financial statements, i.e., as
a financial entity or as an organization chart delineating the decision-making
hierarchy levels and formal communication channels. While both views are
correct, the latter view is more appropriate for understanding an
organization's MIS.
Anthony in his seminal work elaborated (R.A. Anthony
1965) on this view of an organization as its hierarchy of decision-making. He
focused on the managerial aspects of an organization and classified the
management process into three distinct levels.
Strategic Planning
This requires focusing on the objectives and goals of the
organization, on changes in the objectives, on the resource requirements to
fulfill the objectives and on the guiding principles and policies that will
govern the acquisition, use and disposal of resources to attain the objectives.
In short, this role is the most important role in the management hierarchy and
the decisions taken by managers in this role have a far-reaching impact on the
organization. Managers in this role set the direction in which the organization
will travel. In terms of hierarchy, this lies at the top.
Managerial Control
This requires that resources are acquired and used
effectively and efficiently to attain the objectives of the organization. This
is a middle management role. Managers in this role take guidance from the
strategic planning hierarchy and control the activities of the organization
such that the goals set by the higher level are attained in an efficient and
effective manner. The impact of the decisions of the managers in this role is
medium term and degree.
Operational Control
This requires that directives as set by the immediate
higher hierarchy is followed and that specific task/s are carried out
effectively and efficiently. The decisions at this level have very little
impact on the organization. The organization behaves in a routine nature where
the parameters of the decision-making process are well laid and certain.
Anthony's idea of an organization's hierarchy from the
perspective of managerial activities. As is clear, it is a three-level pyramid
with very distinct levels. Each level has its own set of tasks and decisions to
take which have a varying impact on the organization as a whole.
Management
Levels in Organizations
Management Function
|
Strategic Planning
|
Management Control
|
Operational Control
|
Planning
|
Long-range, high impact
|
Medium range, medium
impact
|
Short range, low impact
|
Organizing
|
General framework
|
Departmental level
|
Small unit level
|
Staffing
|
Key senior people
|
Medium level, tactical level
|
Operational level
|
Directing
|
General and long range
directives
|
Tactics
|
Routine activities
|
Controlling
|
Aggregate level
|
Periodic control and
controlling exceptions
|
Regular and continuous
supervision
|
For example, if we want to classify the decisions of a
manufacturing firm, the strategic planning will encompass the annual production
planning, annual budgeting, setting up of new plants and/or installation
of new machinery to upgrade the production process and other such activities.
Management control activities would include monthly production planning,
maintenance planning and scheduling. Operational control on the other will deal
with routine daily tasks of managing and supervising shifts to exercise control
over the process so that the monthly plans and schedules as made by the
management control level managers are met.
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