Management Information : Limit & Extent
Published in CORE, Jul/Aug,1993
Introduction
There is a
common question, which lingers usually in the memory of management
cadre: Can all management information be computerized? Nay, certainly
not. It can be only computerized for certain functions as it has its own
limitations. What I have found while wading through some of the reports
produced in Nepal about computer-based information system that somehow
these reports are couched and inferred with the very vague statement
somewhat like, This engenders a false impression among the top level
that in the imminent future they will have a total rein on their
official empire through the use of computer-based information system.
Attempts are steered to provide midwifery services to this idea couched
and inferred in the so-called computer alchemist report to envelop top
management cadre which eventually lead to the impaired means of
management information. What has been found that more time is dawdle on
drawing lines between top and middle management which is futile as it is
very difficult to segregate these two levels with any degree of
precision. None has been able to define it meaningfully Attempts to make
logical generalizations is an utter waste of time. Instead of dwelling
on this approach, it would be worthwhile to spotlight on the following
pragmatic approach:
-
slicing of management functions on the basis of the type
of information essentially required in executing it;
-
reviewing the characteristics of information systems to
make it palatable and adaptable to computerization.
Once the total picture is obtained from this, it would
be convenient to evaluate bow computers can improve the information
available to management and consequently how they can improve
management's competence to carry out its functions.
Management Functions
Basically, management functions can be broadly assorted
into three segments:
a) Strategic Planning
b) Management Control
c) Operational Control
Strategic Planning
Strategic planning entails predicting uncertain future
events. In the strategic planning, complete precision of results is
neither desired nor feasible. The job of strategic planning is of
non-repetitive type and requirements of large amount of data is also not
compulsive. The handling of large amount of data is only needed in case
of statistical analysis when done as a part of the strategic planning
for deducing at any particular conclusion. These are the blatant facts
of strategic planning in front of our naked eyes then how is it possible
to automate all decisions of uncertainty. The only possibility of
automating is to analyze those information through computers which
consist of a lot of interacting variables. The instance of this would be
a business simulation aimed at testing the large-range effects of
different courses of action before making a decision of the best course
of action. Therefore, it has a certain extent of automation.
Management Control
The approach and technique applicable
in the operational control can not be exactly replicated in the
management control even if the job seems of the same nature. The
prominent difference between the operational control and the management
control is subtly programming the decisionmaking rules. Decision-making
rules can be programmed at operational level as the job of operational
level is more of repetitive and routine types. But the same can not be
done at the management control level. The most spectacular part of
computer is that it can be programmed to the great extent for making
routine-type decision-making. Management control decision-making is
usually not of routine type. Therefore, it is a gigantic task to think
of programming computer. In addition, management control decisions are
made only after a long deliberation. Therefore, the speed is the
undermining factor.
Operational Control
Almost all gamut of operational control activities can
be computerized with the present state-of-the-art technology. Most of
the activities of operational control involve a lot of interacting
variables and the speed is also the critical factor.Instantaneous
information is desirable as any unanticipated change in one segment of
the system can affect the other part and the consequent alteration is
instantly required. Operational control decisions can be programmed as
these decisions are more structured, repetitive and routine type.
Conclusion
It is crystal while dissecting
each management functions that all information required for all levels
of management can not be programmed with the present state-of-the-art
technology. It is unwarranted assumptions that all levels of information
requirement can be automated to chum out desired level of information.
The question may arise here what would be the consequences of making
such assumptions. Firstly, it would decrease the quality of management
information even if developed by spending ponderous amount of time and
money. Secondly, it will direct more attention towards impaired means of
improving management information rather than the better means. Even if
we develop a computer-based system for the top level then what would be
the question which management will pose to the computer. None of us have
a crystal bail to foretell categorically that this would be the
question.
The greatest mistake in management information system is
that one level of management information designed for use is used by
another level. What would be the consequence of it? One man's meat can
be another man's poison. Even if top management uses this information to
try to control operations, it will be performing the function of the
operational manager. The thing will end up in the preposterous state of
having two groups performing the operating function and no one handling
strategic planning or management. It is a soul-searching question of the
time that whether to slot that executive at the top management or not
whose entire time is indulged in routine, repetitive and structured
types of work. Attempts to slot would be a total absence of strategic
planning works demanded by the level of job.
What is essentially required first is to make the manual
system robust in all respects before embarking on automation. It has
been witnessed that most managers harbor misconception that once the
computer is procured a charisma would happen in improving management
information even when there is no manual system.
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