Management Using Information Technology
INTRODUCTION TO MANAGEMENT
Using of technology by Management?
Management:-
“The process of getting activities completed efficiently an effectively through and with other people is called management.”
The process represents the functions or the primary activities engaged in by managers.
These management functions are typically labeled planning, organizing, leading and controlling.
Planning
Planning includes defining goals, establishing strategy, and developing a comprehensive hierarchy plans to integrate and coordinate activities.
Since organizations exist to achieve some purpose, someone must define that purpose and the means for its achievements. Management is that someone.
Organizing
Managers are also responsible for designing an organization’s structure. We call this function organizing. It includes determining what tasks are to be dine, who is to do them, how the tasks are to be grouped, who reports to whom, and at what level decisions are made.
Leading
Every organization includes people, and management‘s job is to direct and coordinate these people. This is the function of leading. When managers motivate subordinates, direct the activities of others, select the most effective communication channel, or resolve conflicts among members, they are engaging in leading.
Controlling
The final function managers perform is controlling. After the goals are set, the plans formulated, the structural arrangements delineated, and the people hired, trained, and motivated, something may still go wrong. To ensure that things are going as they should, management must monitor the organization’s performance. Actual performance must be compared with the previously set goals. If there are any significant deviations, it’s management’s job to get the organization back on track. This process of monitoring, comparing, and correcting is what we mean by the controlling function.
Why we study management?
The first reason for studying management is that we all have a vested interest in improving the way organizations are managed. Why? Because, we interact with organizations every single day of our lives. Does it frustrate you when you have to spend three hours in a department of motor vehicles office to get your driver’s license renewed? Are you irritated when none of the salespeople in a department store seem interested in helping you? Do you get annoyed when you call an airline three times and their sales representatives quote you three different prices for the same trip? As a taxpayer, doesn’t it seem like something is wrong when a multibillion-dollar telescope won’t work properly? These are all examples of problems callused by poor management. Organizations that are well managed and develop a loyal constituency, grow, and prosper. Those that are poorly managed find themselves with a declining customer base and reduced revenues. Eventually, the survival of poorly managed organizations becomes threatened. Jst look at the number of airline and retail companies that have gone bankrupt. Companies like Branniff and Eastern Airlines, Gimles, and W.T Grant were once thriving organization. But ineffective management did them i. Today these companies no longer exist.
The second reason for studying management is the reality that for most of you, once you graduate from college and begin your careers, an understanding of the management process forms the foundation on which to build your management skills.
Of course, it would be naïve to assume that everyone who studies management is planning a career in management. A course in management may only be requirement for a degree you want but that shouldn’t make the study of management irrelevant. Assuming that you will have to work for a living and recognizing what you will almost certainly work in and organization, you will probably be a manager and/or work for a manager. You can gain a great deal of insight into the way your boss behaves and the internal workings of organizations by studying management. The point is that you don’t have to aspire to be a manager to gain something valuable from a course in management.
INTRODUCTION TO INFORMATION TECHNOLOGY
INFORMATION TECHNONLOGY:
Use of Technology in transfer of Information from one person to another person or group of persons who require that information for different activities is known as information technology.
It is the technology which supports activities involving the creations, storage, manipulation and communication of information together with there related method, management applications therefore information technology may be seen as the broadly based technology needed to support information system.
INFORMATION SYSTEMS:
There is some information systems are developed to maintain or categorized different types of different types of users, which are following.
§ Management Information System(MIS)
§ Decision Support System(DSS)
§ Expert System(ES)
Hardware, software, people, procedures and data are combined to create information system. The term information system is generic reference to a computer based system that does two things.
Ø Provide the information processing capability to individually or perhaps for an entire organization.
Ø Provide the information people need to make better informed decision. Information system provides on demand report and inquiry capabilities as well as routine reports.
TYPES OF INFORMATION SYSTEM:
There are no of information systems of which some are given below
Ø MANAGEMENT INFORMATION SYSTEMS(MIS):
Ø DECISION SUPPORT SYSTEM(DSS):
Ø EXPERT SYSTEM(ES):
MANAGEMENT INFORMATION SYSTEMS (MIS):
An MIS has been called a method, function, an approach, a process, an organization, a system and a sub system, Is a computer based system that optimized the collection, transfer and presentation of information through out an organization through an integrated structure database and information flow
MANAGEMENT INFORMATION SYSTEMS (MIS):
CHARCTERSTICS OF MIS:
Following are the desired characteristics of an MIS:
Ø An MIS supports the data processing function of transaction handling and record keeping.
Ø An MIS uses integrated data base and supports a variety of functional areas.
Ø An MIS provides operational, tactical, and strategic level manager with easy access to timely for the most part structured information.
Ø An MIS is some what flexible and can be adopted to meet changing information needs of organization.
Ø An MIS provides an envelope of system securities that limits access to authorized personnel.
DECISION SUPPORT SYSTEM (DSS):
DSS are interactive information systems that rely on integrated sets of user friendly hardware and software tools to produce and present information integrated to support management in decision making process.
FIGURE (DSS)
CHARCTERSTICS OF DSS:
Ø A DSS helps the decision maker in decision making process.
Ø A DSS is design to address semi structured and unstructured problems.
Ø A DSS supports decision maker at all levels, but it is most effective at tactical and strategic levels.
Ø A DSS is an interactive user friendly system that can be used by the decision maker with a little or no assistance from a computer professional.
Ø A DSS makes general purpose models simulation capabilities and other analytical tools available to decision making
Ø ADSS can be readily adopted to meet the information requirement of any decision.
Ø A DSS can interact with the corporate database.
Ø ADSS is not executed in accordance with a reestablished production schedule.
EXPERT SYSTEM (ES):
The expert systems are computer based systems that helps manager resolve problems and make better decisions.
CHARCTERSTICS OF EXPERT SYSTEM (ES):
Ø It identifies the problem to be solved.
Ø An identified the solution for the problems through intelligence.
Ø How to progress from problems to the solutions (primarily through facts and rules of inference).
Communication:
“The process of transferring idea from one to other in the mood of mutual understanding.”
Communication and IT:
Communication Technology also has Great Effect on Organizational Design and communication.
The challenge for managers in organizing is designing an organizational structure that allows employees to effectively and efficiently do their work while accomplishing organizational goals and objectives. Employees, teams or individuals need information to make decisions and do their work. Information Technology can significantly affect the way that organizational members communicate, share information, and do their work. It has significantly improved a manager’s ability to monitor individual or team performance, and it has allowed employees to have more complete information to make faster decisions.
Two developments in Information Technology seem to have had the most impact on organizational communication: networked computer systems and wireless capabilities.
Networked Computer Systems:
In a networked computer system, an organization links its computers together through compatible hardware and software, creating an organization network. Organizational members can then communicate with each other and tap into information whether they’re down the hall, across town, or halfway across the world. Some of the communication applications for organizations that are commonly used for performing the work or for decision making are:
Electronic mail or E-mail:
It is the instantaneous transmission of written messages on computers that are linked together. It can be used to send the same message to numerous people at the same time. It is a quick and convenient way for organizational members to share information and communicate.
Voice-mail:
This capability allows information to be transmitted even though a receiver may not be physically present to take the information. Receivers can choose to save the message for future use, delete it , or route it to other parties.
Facsimile(Fax):
A sending fax machine scans and digitizes the document. A receiving fax machine reads the scanned information and reproduces it in hard copy form. Information that is best viewed in printed form can be easily and quickly shared by organizational members.
Teleconferencing:
It allows a group of people to confer simultaneously using telephone or e-mail group communication software.
Videoconferencing:
If meeting participants can see each other over video screens, the simultaneous conference is called videoconferencing. Work groups, large and small, that might be in different locations can use these communication network tools to collaborate and share information.
Electronic Data Interchange (EDI):
It is a way for organizations to exchange standard business transaction documents, such as invoices or purchase orders, using direct computer-to-computer networks. Organizations often use EDI with vendors, suppliers, and customers because it saves time and money.
Intranets:
It is an internal organizational communication system that use Internet technology and are accessible only bye organizational employees. An intranet is not only an effective way to share information; it is also proving to be a convenient way for employees to collaborate on documents and projects from different locations.
Wireless Capabilities:
Wireless products such as personal pagers, cellular phones, and mobile phones are decreasing the distance between one place to another place. Wireless communications depends on signals send through air or space without any physical connection using things like microwave signal ,satellites, radio waves and radio antenna. As technology continues to improve in the area we are likely to see in organization.
IMPACT OF IT ON MANAGEMENT EFFICIENCY
Management Efficiency:
“The relationship between inputs and outputs, seeks to minimize resource costs.”
Efficiency is a vital part of management. It refers to the relationship between inputs and out puts. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less input, you also have increased efficiency. Since managers deal with input resources that are scarce-mainly people, money, and equipment-they are concerned with the efficient use of these resources. Management, therefore, is concerned with minimizing resources costs. Efficiency is often referred to as “doing things right”.
Management efficiency is the degree to which organizational resources contribute to productivity. It is measured by the proportion of total organizational resources used during the production process. Higher this proportion the more efficient the management.
Impact of IT on Management Efficiency:-
In the last 10 to 15 years IT has great impact on all fields of life whether it is Medical, Engineering or Business and Commerce, it also have affected the field of Management as well. It has impact on all the management function. It has not only effected one function of management but has impact on all types and functions and the management efficiency, either it is planning, organizing, leading, or controlling human resources management, financial management, marketing management and etc.
Information technology plays vital role in improving the management efficiency because information is necessary for planning, decision making, controlling, organizing and day to day operations. By using information technology we get a lot of benefits increased accuracy and speed of collecting and storing business data. Reduced cost of carrying emphasis, improved customer services, improved control of business, reduced error, faster availability of information so (T has great impact on management efficiency.
IT SUPPORT MANAGERIAL FUNCTIONS
When compared earlier information systems, IT can have an impact on the quality of a management plans by:
v Causing faster awareness of problems and opportunities:
An IT exception report can quickly signal but of control conditions requiring corrective anctin when actual performance deviates from what was original planned. New plans can then be implemented to correct the situation. We have seen that managers can probe an online data base to receive quick replies to their planning questions.
v Enabling managers to devote more time to planning:
IT can reduce paperwork. More attention may then given to analytical and intellectual matters associated with planning.
v Permitting management to given timely consideration to more complex relationships
IT gives the management ability to evaluate more possible alternatives and to consider the internal and external variables that may have a bearing on their outcome. More complex relationships can now be considered and evaluated through the use of DSS tools such as the spread sheets, financial and investment with planning information that could not have been produced at few years ago, or that could not have been produced in time to be of any value.
v Assisting in decision implementation
It can assist in the development of the subordinate plan s needed to implement decisions. If you know that computer based techniques to schedule project activities are now widely used.
Through the use of such scheduling tools labor, materials and other resources can be utilized and controlled efficiently.
Information technology and decision making:
Management is a process by which certain goals are achieved through the use of resources (people, money, every, materials, space, time).
These resources are considered to be inputs, and the attainment of the goals is viewed as the output of the process. The degree of success of a manager’s job is often measured by the ratio between outputs and inputs. This ratio is indication of organization’s efficiency. The level of efficiency depends on the execution of certain managerial functions like planning, organizing, leading and controlling. To carry out these functions managers are engaged in a continuous process of decision making.
Business and its environment are more complex today than ever before and the trend I s toward increasing complexity. Decision making practices are involve in all business activiyies that may be supported bye the DSS (Decision Support Systems) component of an information technology are the uses of simulation and information based systems like Transaction Processing System (TPS), Decision Support System (DSS), Management Information System (MIS) and Expert Systems. (ES)
The use of simulation
The simulation concept rests on reality or fact. Few people understand every aspect of a complex situation. Theories are developed which may focus attention on only part of the complex whole. In some situation s model may be built in order to test or represent a theory. Finally simulation is the use of model in the attempt to identify and reflect behavior of a real person, process or system in business, for example, managers may evaluate proposed projects or strategies by constructing theoretical models. They can determine what happens to these models when certain conditions are given or when certain assumptions are tested. Simulation is thus a trial and error problems solving DSS approach that’s very usef8ul in planning. Simulation is as helpful to middle level managers.
Simulation model are used to improve management efficiency. To illustrate purchasing department may prefer to by large quantities of material to get at lower process.
Simulation models serving managers at different levels may also be integrated into and overall corporate modeling approach to planning and decision making.
IT and Planning:-
IT has also effected the function of planning it has made easy the planning so much it also improved the techniques for planning whether it is short term or long term planning. It has made planning activities more efficient and effective as it was before the invention of IT.
It has also had great impact on strategic planning as well. It has made it easy to do different types of analyses like PEST and SWOT analyses required to manage your external environment and to take competitive advantage in the market.
IT and Organizing:-
As IT has great impact on the planning it also has impact at the organizing activities as well. It has great impact in determining the organization structure. It has solve the problem of large span of control, now a days through IT one person can handle large no of employees not at one place but also at some other places as well.
Now lot of organizations are managing and connecting their departments through IT intranet technology which has helped in managing the communication network of organizations. It has also helped in managing human resource as well specially in matching them to right jobs.
IT and Leading:-
IT has improved the ways of leading of an organization leaders which was difficult before the invention of IT in large organizations like PIA which have large no of branches an each branch has large no of employees.
Now organizations are also using IT in motivating their employees as well, they use IT to encourage their employees and their efforts in day to day activities and provide them the assistance to them as well.
IT and Controlling:-
People think that in future IT will be the only tool of controlling all the activities, because it has almost changed all the traditional techniques of controlling. It has helped us in controlling all types of resources whether Human resources, Financial resources, Capital resources or Time (the most important after human).
IT has helped us in controlling our costs; it helps us in managing security of capital assets and also scheduling our different tasks according to our time span, so it helped in all Management functions and continuing to help.
Although it has helped us in different in management functions but their some hurdles in the field of IT which are following.
CHAPTER # 4
OBSTACLES OF IT
OBSTACLS OF INFORMATION TECHNOLOGY
As we have discussed that IT has done great jobs in the field of management but also there are many obstacles of IT which have negative impact on management. Following are some of these are given below.
§ IT the Job Killer
§ IT the most Expensive
§ Security Problems
§ Unavailability of IT Professionals
IT TOOL OF DOWNSIZING:
It is true, as technology critics say that intelligent machines are replacing humans in countless tasks, “forcing millions of blue-collar and white-collar workers into temporary, contingent, and part time employment and, worst un-employment”.
The world’s economy is under going powerful structural changes that brought on not only by the wide spread diffusion of technology but also by greater competition, increased global trade, the shift from manufacturing to service employment, the weakening of labor unions, more flexible markets, more rapid immigration, partial deregulation, and other factors.
A counterargument is that jobs do not disappear, they just change. According to some observers that jobs do disappear represent drudgery. “If your job has been replaced by a computer, in future there may have been a job that was not worthy of a human but for machines.
IT EXPENSIVENESS:
Al though IT is making job easy to do but not all types of organizations can afford this, only the companies with large investment.
SECURITY PROBLEMS
IT also has some problems in maintaining its security so it is also one of the obstacles of IT, but IT professionals are working hard to overcome this problem of security.
UNAVAILABILITY OF IT PROFESSIONALS
One other problem is the unavailability of IT professional in the market because the revolution of information technology every person is trying to adapt it but it is difficult to do due to that.
FIELD STUDY
History
"I wish Meezan Bank success in initiating the cause of Riba-free banking."
General Pervez Musharraf
President of Pakistan
Meezan Bank Inauguration, September 2002
Meezan Bank Limited is a publicly listed company first incorporated on January 27, 1997. It started operations as an investment bank in August of the same year. In January, 2002 in an historic initiative, Meezan Bank was granted the nation's first full-fledged commercial banking license dedicated to Islamic Banking, by the State Bank of Pakistan.
Meezan Bank began operations as an investment Bank in 1997 with a mandate to establish and promote Islamic banking in Pakistan. In implementing the vision and mission of the Bank the first step was to establish a profitable track record and to put in place a professional management team. By the Brace of Allah both these objectives have been met. During the first four years of the Bank’s operating history, a strong balance sheet with excellent operating profitability has been established. A strong management team, bringing together expertise of commercial banking, investment banking and general management is in place which has instilled a culture of professionalism, hard work and meritocracy at the Bank.
Having set a strong foundation, the strategy of the Bank is to build on the key element of the Bank’s vision statement, i.e, to “establish Islamic banking as banking of first choice”. Given the limitation of investment banking, a natural progression was to convert the operations of the Bank into that of a full-fledged commercial bank. This decision was taken after carefully considering the various advantages of investment baking versus commercial banking. It was with this perspective that in the last quarter of 2001 on application was moved to the State Bank of Pakistan for a commercial banking license. Concurrently, the management identified an opportunity to amalgamate with the banking operations of societe Generale(“SG”) in Pakistan. This strategic acquisition would give the bank much needed infrastructures, which would allow it to gain access to the market more rapidly than would have been otherwise possible.
The first ever license to operate as a scheduled Islamic Commercial Bank was granted to the bank on January 31, 2002. Negotiations with the management of SG were also concluded shortly thereafter in a deal which would effectively allow Meezan Bank to step into the shoes of SG in Pakistan. For this purpose approval for a scheme of Merger and Amalgamation was granted both by the shareholders of the bank and the State Bank of Pakistan pursuant to which the business of SG Pakistan amalgamated into Meezan Bank Limited on May 1, 2002.
The bank was formally inaugurated by the President of Pakistan, H.E. General Pervez Musharraf on September, 17 2002 at a historic ceremony at Meezan Bank’s premises in Karachi. The ceremony was attended by Mr. Shaukat Aziz, Minister of Finance, Mr. A. Razzaq Daud, Minister of Commerce, Mr. Mohammedmian Soomro, Governor Sindh and several local ministers.
The new Meezan Bank commenced business with five branches. Three in Karachi and one each in Islamabad and Lahore. Shortly thereafter, in October 2002, the bank’s sixth branch was opened in Faisalabad. During the year 2003, the bank has shifted its existing branch in Lahore to new premises and has opened two new branches: one in Gulshan-e- Iqbal , Karachi and the other on Kotawali road, Faisalabad. In addition, plans are underway to evaluate the feasibility of opening a branch in Multan.
Meezan Bank stands today at a noteworthy point along the evolution of Islamic Banking in Pakistan. The banking sector is showing a significant paradigm shift away from traditional means of business and is catering to an increasingly astute and demanding financial consumer who is also becoming keenly aware of Islamic Banking. Meezan Bank bears the critical responsibility of leading the way forward in establishing a stable and dynamic Islamic Banking system replete with dynamic and cutting-edge products and services.
The Bank has made fundamental and significant progress forward, and in doing so has established a strong and credible management team comprised of experienced professionals, which have achieved a strong balance sheet with excellent operating profitability, including a capital adequacy ratio that places the Bank at the top of the industry, a long-term entity rating of A+, and a short-term entity rating of A1+, the highest short-term rating.
The Bank's main shareholders are leading local and international financial institutions, including Pak-Kuwait Investment Company, the only AAA rated financial entity in the country, the Islamic Development Bank of Jeddah, and the renowned Shamil Bank of Bahrain, that in addition to their strength and stability, add significant value to the Bank through Board representation a
