Use of computers and information technology in management control

Jul 14, 201911 likes17,438 views

The document discusses the use of computers and information technology (IT) in management control. It describes how IT systems like Management Information Systems (MIS) are used to provide information for strategic planning, tactical planning, and operational planning. MIS helps management with decision making in key areas like marketing, manufacturing, logistics, finance, and top management functions. The document outlines the objectives, prerequisites, need for, and functions of MIS. It also gives examples of tools and applications of MIS.

USE OF COMPUTERS AND IT IN
MANAGEMENT CONTROL
R.ArunKumar,AP/Mech,RIT

USE OF COMPUTERS IN MANAGEMENT CONTROL:
1. Sales forecast and control
SFA and CRM After Sales Service
Expense Management Payroll
R.ArunKumar,AP/Mech,RIT

USE OF COMPUTERS IN MANAGEMENT CONTROL:
2. Accounting
R.ArunKumar,AP/Mech,RIT

USE OF COMPUTERS IN MANAGEMENT CONTROL:
3. Personnel management information
R.ArunKumar,AP/Mech,RIT

USE OF COMPUTERS IN MANAGEMENT CONTROL:
4. Inventory control
e.g. Chemist retail Software
R.ArunKumar,AP/Mech,RIT

USE OF COMPUTERS IN MANAGEMENT CONTROL:
5. Banking
e.g. National Electronic Fund Transfer
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
1. Management Information System (MIS):
 MIS is used for decision making in various functional areas of
business.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
 MIS is defined as ‘ a system of obtaining, abstracting, storing and
analyzing data to produce effective information for the use in
planning, controlling and decision making process’.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Objectives of MIS:
 Providing right information at right time
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Objectives of MIS:
 To allocate appropriate resources
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Objectives of MIS:
 To provide sales forecasting, planning and better controlling
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Objectives of MIS:
 To provide information confidentially
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Objectives of MIS:
 To provide adequate information for better managerial
activities.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Pre – requisites of MIS:
 Information must be clear and concise.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Pre – requisites of MIS:
 Information must be relevant to business organization.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Pre – requisites of MIS:
 Information must be simple and understandable.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Pre – requisites of MIS:
 Information must facilitate decision making and taking
corrective actions.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Pre – requisites of MIS:
 Information must help in solving complicated problems.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Need for MIS:
1. Internal factors:
 Provides information about resource availability.
 Provides information for preparing budgets, sales forecast,
marketing strategies, etc.
 Plays vital role in evaluating the overall performance.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Need for MIS:
2. External factors:
 Provides information about governmental policies, laws, etc.
 Provides information about economic scenario.
 Provides information about recent technological up gradation.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Resources used in MIS:
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Installation of MIS:
Data collection
Data feeding
Data storage and retrieval
Data analysis
Output
Decision making
Implementation
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Functions of MIS:
1. Determination of information need:
 MIS determines, kind of information required.
 Identifies the person who requires the information.
 Information needed for various functions of organization
(planning, performance evaluation, etc.)
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Functions of MIS:
2. Information gathering:
 Internal sources: Documents, surveys, observation, operational
manual, etc.
 External sources: Reference journals, newspapers, surveillance,
etc.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Functions of MIS:
3. Processing:
 Processing includes evaluation, abstraction, dissemination
and storage.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Functions of MIS:
4. Information usage:
 Usage depends on factors like accuracy, timely supply and
format.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Tools of MIS:
 Speech recognition software
 Network server
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Role of MIS in management:
1. Strategic planning:
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Role of MIS in management:
2. Tactical planning:
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Role of MIS in management:
3. Operational planning:
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Applications of MIS:
1. Marketing
 Sales planning and forecasting.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Applications of MIS:
2. Manufacturing
 Production planning and cost control.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Applications of MIS:
3. Logistics
 Inventory control.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Applications of MIS:
4. Finance and accounting
 Revenue and expenditure details.
R.ArunKumar,AP/Mech,RIT

USE OF IT IN MANAGEMENT CONTROL:
Applications of MIS:
5. Top management
 Policy formulation, resource allocation.
R.ArunKumar,AP/Mech,RIT

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The document discusses communication processes and their importance in organizations. It describes key aspects of communication including definitions, functions, types, flow within organizations, elements in the communication process, modes, networks, and barriers. Specifically, it notes communication is the transmission and understanding of information using common symbols. The main functions are control, motivation, emotional expression, and conveying information. Types of communication include interpersonal, organizational, formal, and informal.

Leadership theoriesR.Arun Kumar M.E (Ph.D.)

The document discusses early leadership theories including trait theories and behavioral theories. Trait theories initially focused on differentiating leaders from non-leaders but later identified seven traits associated with successful leadership including drive, desire to lead, honesty, self-confidence, intelligence, job skills and extraversion. Behavioral theories examined how leaders behave rather than their innate qualities. Later, contingency leadership theories emerged such as Fiedler's model that assessed whether a leader is task-oriented or relationship-oriented based on a questionnaire. Hersey and Blanchard's model proposed that leadership style should depend on followers' readiness and ability. Path-goal theory stated that a leader's role is to guide followers by being directive, supportive, participative or achievement-

Motivational theoriesR.Arun Kumar M.E (Ph.D.)

The document discusses several theories of motivation. It begins by defining motivation and outlining key elements. It then describes early theories including Maslow's hierarchy of needs, McGregor's Theory X and Y, Herzberg's two-factor theory, and McClelland's three needs theory. Contemporary theories covered include goal setting theory, reinforcement theory, job design theory including the job characteristics model, equity theory, and expectancy theory. For each theory, the document provides an overview and explanation of its main constructs and principles.

5. leadership typesR.Arun Kumar M.E (Ph.D.)

The document discusses leadership, its importance, qualities, and styles. It defines leadership as influencing others to achieve goals and work enthusiastically. Some key importance of leadership include motivating employees, developing teamwork, better utilizing human resources, and maintaining discipline. Important leadership qualities include patience, confidence, honesty, long-term vision, dedication, and motivation. The main leadership styles discussed are autocratic, where the leader makes all decisions; democratic, where subordinates provide input; and laissez-faire, where subordinates have freedom in decision making.

Motivation techniques, job satisfaction and enrichmentR.Arun Kumar M.E (Ph.D.)

Career planning and developmentR.Arun Kumar M.E (Ph.D.)

The document discusses career planning and management. It defines career as a series of roles with increasing responsibility and rewards over time. There are two types of careers: individual careers made up of a person's work experiences, and organization careers which follow standard role progressions. Career management involves both career planning, by which individuals map goals and capabilities to opportunities, and career development, through which employees' skills are improved to benefit both the individual and organization over the long term. The document also outlines five stages of typical careers from exploration to disengagement.

Performance managementR.Arun Kumar M.E (Ph.D.)

The document discusses performance management and performance appraisal. It defines performance management as evaluating employee performance based on job requirements. Performance appraisal is defined as the systematic evaluation of an individual's performance and potential. The objectives of performance appraisal include improving employee performance, reviewing performance over time, identifying training needs, and providing feedback. Several methods of performance appraisal are also outlined, including written essays, critical incidents, graphic rating scales, behaviorally anchored rating scales, multi-person comparisons, management by objectives, and 360 degree appraisals.

Selection, training and developmentR.Arun Kumar M.E (Ph.D.)

The document discusses selection, training, and development in organizations. It describes the selection process as choosing the most suitable candidates through initial screening, tests, interviews, examinations, references, and final selection. Training is defined as activities that provide opportunities to improve job skills, while development means overall improvement in performance and abilities. The document outlines different training methods like on-the-job and off-the-job training as well as steps in training and evaluation techniques.

Delegation of authority, centralization and decentralizationR.Arun Kumar M.E (Ph.D.)

Line and staff authority, departmentalizationR.Arun Kumar M.E (Ph.D.)

Organization chart and organization structure typesR.Arun Kumar M.E (Ph.D.)

2. formal and informal organizationR.Arun Kumar M.E (Ph.D.)

The document discusses formal and informal organization. A formal organization refers to the clearly defined job structure, communication channels, and delegation of authority as prescribed by management. It aims to avoid conflicts and overlapping responsibilities. An informal organization arises naturally from personal relationships between employees based on attributes like friendship rather than formal roles. While informal groups can boost motivation, they can also hinder productivity and spread rumors.

Decision making steps and processR.Arun Kumar M.E (Ph.D.)

This document discusses decision making in organizations. It outlines that managers at all levels must make decisions, from goals and facilities for top managers to production schedules and employee issues for middle and lower managers. The steps of decision making are identified as: identifying the problem, considering factors, adding weights, identifying alternatives, analyzing alternatives, choosing, implementing, and evaluating. Decision making can involve both structured problems with programmed solutions, and unstructured problems requiring non-programmed decisions. Common decision making errors that can occur include overconfidence bias, anchoring effect, confirmation bias, and hindsight bias.

Management by objectiveR.Arun Kumar M.E (Ph.D.)

Management by Objectives (MBO) is a process where managers and employees jointly set specific, measurable goals and work to accomplish them. Progress is periodically reviewed, and employees are rewarded based on achieving their goals. Peter Drucker conceptualized MBO, and Harold Smiddy helped implement it. Key elements include participative decision making, explicit performance periods, and feedback.

Types of planningR.Arun Kumar M.E (Ph.D.)

The document discusses different types of planning based on breadth, time frame, specificity, and frequency of use. Strategic plans apply to the entire organization and establish long term goals, while operational plans cover shorter time periods and specific operational areas. Plans can also be categorized as long term versus short term based on duration, and as specific versus directional based on the level of definition. Additionally, single-use plans are designed for unique situations while standing plans provide ongoing guidance for repeated activities.

Innovation in Teaching Learning ProcessR.Arun Kumar M.E (Ph.D.)

Energy scenario: Save Today, Survive TomorrowR.Arun Kumar M.E (Ph.D.)

Intellectual Property Rights and its TypesR.Arun Kumar M.E (Ph.D.)

Control & PerformanceR.Arun Kumar M.E (Ph.D.)

Budgetary control techniquesR.Arun Kumar M.E (Ph.D.)

Communication process and barriersR.Arun Kumar M.E (Ph.D.)

Leadership theoriesR.Arun Kumar M.E (Ph.D.)

Motivational theoriesR.Arun Kumar M.E (Ph.D.)

5. leadership typesR.Arun Kumar M.E (Ph.D.)

Motivation techniques, job satisfaction and enrichmentR.Arun Kumar M.E (Ph.D.)

Career planning and developmentR.Arun Kumar M.E (Ph.D.)

Performance managementR.Arun Kumar M.E (Ph.D.)

Selection, training and developmentR.Arun Kumar M.E (Ph.D.)

Delegation of authority, centralization and decentralizationR.Arun Kumar M.E (Ph.D.)

Line and staff authority, departmentalizationR.Arun Kumar M.E (Ph.D.)

Organization chart and organization structure typesR.Arun Kumar M.E (Ph.D.)

2. formal and informal organizationR.Arun Kumar M.E (Ph.D.)

Decision making steps and processR.Arun Kumar M.E (Ph.D.)

Management by objectiveR.Arun Kumar M.E (Ph.D.)

Types of planningR.Arun Kumar M.E (Ph.D.)

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Use of computers and information technology in management control

1. USE OF COMPUTERS AND IT IN MANAGEMENT CONTROL R.ArunKumar,AP/Mech,RIT

2. USE OF COMPUTERS IN MANAGEMENT CONTROL: 1. Sales forecast and control SFA and CRM After Sales Service Expense Management Payroll R.ArunKumar,AP/Mech,RIT

3. USE OF COMPUTERS IN MANAGEMENT CONTROL: 2. Accounting R.ArunKumar,AP/Mech,RIT

4. USE OF COMPUTERS IN MANAGEMENT CONTROL: 3. Personnel management information R.ArunKumar,AP/Mech,RIT

5. USE OF COMPUTERS IN MANAGEMENT CONTROL: 4. Inventory control e.g. Chemist retail Software R.ArunKumar,AP/Mech,RIT

6. USE OF COMPUTERS IN MANAGEMENT CONTROL: 5. Banking e.g. National Electronic Fund Transfer R.ArunKumar,AP/Mech,RIT

7. USE OF IT IN MANAGEMENT CONTROL: 1. Management Information System (MIS):  MIS is used for decision making in various functional areas of business. R.ArunKumar,AP/Mech,RIT

8. USE OF IT IN MANAGEMENT CONTROL:  MIS is defined as ‘ a system of obtaining, abstracting, storing and analyzing data to produce effective information for the use in planning, controlling and decision making process’. R.ArunKumar,AP/Mech,RIT

9. USE OF IT IN MANAGEMENT CONTROL: Objectives of MIS:  Providing right information at right time R.ArunKumar,AP/Mech,RIT

10. USE OF IT IN MANAGEMENT CONTROL: Objectives of MIS:  To allocate appropriate resources R.ArunKumar,AP/Mech,RIT

11. USE OF IT IN MANAGEMENT CONTROL: Objectives of MIS:  To provide sales forecasting, planning and better controlling R.ArunKumar,AP/Mech,RIT

12. USE OF IT IN MANAGEMENT CONTROL: Objectives of MIS:  To provide information confidentially R.ArunKumar,AP/Mech,RIT

13. USE OF IT IN MANAGEMENT CONTROL: Objectives of MIS:  To provide adequate information for better managerial activities. R.ArunKumar,AP/Mech,RIT

14. USE OF IT IN MANAGEMENT CONTROL: Pre – requisites of MIS:  Information must be clear and concise. R.ArunKumar,AP/Mech,RIT

15. USE OF IT IN MANAGEMENT CONTROL: Pre – requisites of MIS:  Information must be relevant to business organization. R.ArunKumar,AP/Mech,RIT

16. USE OF IT IN MANAGEMENT CONTROL: Pre – requisites of MIS:  Information must be simple and understandable. R.ArunKumar,AP/Mech,RIT

17. USE OF IT IN MANAGEMENT CONTROL: Pre – requisites of MIS:  Information must facilitate decision making and taking corrective actions. R.ArunKumar,AP/Mech,RIT

18. USE OF IT IN MANAGEMENT CONTROL: Pre – requisites of MIS:  Information must help in solving complicated problems. R.ArunKumar,AP/Mech,RIT

19. USE OF IT IN MANAGEMENT CONTROL: Need for MIS: 1. Internal factors:  Provides information about resource availability.  Provides information for preparing budgets, sales forecast, marketing strategies, etc.  Plays vital role in evaluating the overall performance. R.ArunKumar,AP/Mech,RIT

20. USE OF IT IN MANAGEMENT CONTROL: Need for MIS: 2. External factors:  Provides information about governmental policies, laws, etc.  Provides information about economic scenario.  Provides information about recent technological up gradation. R.ArunKumar,AP/Mech,RIT

21. USE OF IT IN MANAGEMENT CONTROL: Resources used in MIS: R.ArunKumar,AP/Mech,RIT

22. USE OF IT IN MANAGEMENT CONTROL: Installation of MIS: Data collection Data feeding Data storage and retrieval Data analysis Output Decision making Implementation R.ArunKumar,AP/Mech,RIT

23. USE OF IT IN MANAGEMENT CONTROL: Functions of MIS: 1. Determination of information need:  MIS determines, kind of information required.  Identifies the person who requires the information.  Information needed for various functions of organization (planning, performance evaluation, etc.) R.ArunKumar,AP/Mech,RIT

24. USE OF IT IN MANAGEMENT CONTROL: Functions of MIS: 2. Information gathering:  Internal sources: Documents, surveys, observation, operational manual, etc.  External sources: Reference journals, newspapers, surveillance, etc. R.ArunKumar,AP/Mech,RIT

25. USE OF IT IN MANAGEMENT CONTROL: Functions of MIS: 3. Processing:  Processing includes evaluation, abstraction, dissemination and storage. R.ArunKumar,AP/Mech,RIT

26. USE OF IT IN MANAGEMENT CONTROL: Functions of MIS: 4. Information usage:  Usage depends on factors like accuracy, timely supply and format. R.ArunKumar,AP/Mech,RIT

27. USE OF IT IN MANAGEMENT CONTROL: Tools of MIS:  Speech recognition software  Network server R.ArunKumar,AP/Mech,RIT

28. USE OF IT IN MANAGEMENT CONTROL: Role of MIS in management: 1. Strategic planning: R.ArunKumar,AP/Mech,RIT

29. USE OF IT IN MANAGEMENT CONTROL: Role of MIS in management: 2. Tactical planning: R.ArunKumar,AP/Mech,RIT

30. USE OF IT IN MANAGEMENT CONTROL: Role of MIS in management: 3. Operational planning: R.ArunKumar,AP/Mech,RIT

31. USE OF IT IN MANAGEMENT CONTROL: Applications of MIS: 1. Marketing  Sales planning and forecasting. R.ArunKumar,AP/Mech,RIT

32. USE OF IT IN MANAGEMENT CONTROL: Applications of MIS: 2. Manufacturing  Production planning and cost control. R.ArunKumar,AP/Mech,RIT

33. USE OF IT IN MANAGEMENT CONTROL: Applications of MIS: 3. Logistics  Inventory control. R.ArunKumar,AP/Mech,RIT

34. USE OF IT IN MANAGEMENT CONTROL: Applications of MIS: 4. Finance and accounting  Revenue and expenditure details. R.ArunKumar,AP/Mech,RIT

35. USE OF IT IN MANAGEMENT CONTROL: Applications of MIS: 5. Top management  Policy formulation, resource allocation. R.ArunKumar,AP/Mech,RIT

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