Some management scholars have argued that the use of MIS systems has reduced the need for “tall” management structures. Do you agree or disagree with this conclusion?
Managers play a key role in organizations as they manage and control all processes in the organization. Their duties
include decision-making, planning, management and control of activities on the basis of information about all processes that take place in the organization. Many large organizations have a rather complex structure, consisting of many units and departments, and such a complex hierarchical structure makes it difficult for managers to manage and control all processes in the organization. Usually managers use the organizational hierarchy as the main system for gathering information necessary to make decisions and coordinate and control activities. (Blumenthal, 1969)
But nowadays implementation of integrated management systems in organizations brings a qualitative improvement in the process of managerial planning and control of the company from senior and middle management. The use information technology to manage enterprise makes any company more flexible by increasing its manageability, and adaptability to changing market conditions.
Thus, the information system can be defined as a set of interrelated components that collect, process, store and distribute information, to support decision making and management in the organization. In addition to supporting decision-making, coordination and management of information, these systems can also help managers to analyze problems and create new solutions. (Encyclopedia of information systems, 2003)
Such automation allows managers and their organizations to:
– Increase the efficiency of company’s management by providing
managers and professionals with full, timely and reliable
information based on a single data bank.
– Improve the paperwork through streamlining and standardization of workflow, automating the most laborious of its procedures.
– Reduce costs of doing business by automating the processing of information, regulation and facilitation of access of employees to the necessary information.
– Change the character of work of employees, while performing routine tasks and giving the opportunity for employees to focus on important responsibilities.
– Ensure reliable accounting and control of income and expenditure of funds at all levels of management.
– Improve efficiency of data exchange between different departments, branches and central office.
– Help medium-and lower-level managers to analyze the activities of their units and promptly prepare a summary and analytical reports for higher management and related departments.
– Guarantee the complete security and data integrity at all stages of information processing.
Information systems of various levels of management are closely connected with each other. At each of the levels are solved specific functional tasks in accordance with business processes, that ensures vertical integration of information flows in the enterprise or organization. If to focus on Management information systems, these are systems that serve managerial level of the organization, by providing managers reports and interactive access to the current work of the organization, and historical records. MIS primarily serve the functions of planning, management and decision making at the managerial level, summarize the results and report on major activities of the company. The most important feature is that MIS provides access to all the data and processes within the organization, that leads to avoid the need for tall management structure which usually serve to integrate different levels of the enterprise. (Blumenthal, 1969)
The conclusion is that information systems are designed to assist organizations in addressing important issues, to facilitates managerial functioning, and facilitate all the processes of management and coordination in organizations.