Unit 6 MS

CONTEMPORARY MANAGEMENT PRACTICES
Management Information Systems:

MIS refer to the process of covering the application of
people technology and procedures to solve business problems.
MIS distinct from regular information systems in that they are used to analyze
other information systems applied in operational activities in the organization.
It is also commonly used to refer to the group information management methods tied
to the automation or support of human decision making.
Ex: Decision support systems, expert systems earlier, when computers were newly
launched, business computers were use for the practical business of computing the
Payroll and keeping track of account payable and receivable. As applications
were developed that provided managers with information about sales, inventories
and other data that would help in managing the enterprise, the term “MIS” arose to
describe there kind of applications.
Definition: It can be defined as “Research in the information systems field examines

more than that the technological system, or just the social system, or even the two
side by side, in addition, it investigates the phenomena that emerge when the two
interact”.
End – use Computing: This term broadly meaning that there are no intermediary services for
making use of computer, the end-user acquires the hardware and
software and run their applications without the services of the specialist IS
department
Factors for its growth:
Growth of Micro Computers Dissatisfaction (delays, poor quality of centralized application

systems built by the IT specialist.Increase in computer literacy among end-users
Materials Requirement Planning (MRP): MRP is a software base production
planning and inventory control system used to manage manufacturing processes
Objectives:
To ensure the availability of materials and products for production, delivery to customers.
To maintain the lowest possible level of inventory
To plan manufacturing activities, delivery schedules and purchasing activities.
Just – In – Time (JIT): When components arrive as and when required in a manufacturing
operating by workers. It is called just-in-time.
Some we would at a stroke eliminate any inventory of parts, they

would simply arrive just-in-time. Similarly we could produce finished goods
just-in-time to be handed to a customer who wants them. So at conceptual
extremes. JIT has no need for inventory or stock, either of raw materials or
work in progress or finished goods.
Total Quality Management: It is term first coined by the U.S Naval air systems command to
describer, its Japanese-style management approach to quality
improvement.It is a management approach to long-term success through
customer satisfaction.
In a TQM effort, all members of an organization participate in

improving processes, products, services and the culture in which they work.
Six Sigma: Six sigma is a set of practices developed by Motorola to
systematically improve
processes by eliminating defects. A defect is defined as non-conformity of a
product or service to its specifications.
Six Sigma refers to the ability of highly capable processes to

produce output within specification. In particular processes that operate
with Six Sigma quality produce at defect level below 3.4 defects per million
opportunities.
The statistical representation of six sigma quantitatively how a

process is performing. To achieve six sigma, a process must not produce
more than 3.4 defects per million opportunities. A six sigma defect is
defined as anything outside of customer specification. A six sigma
opportunity is then the total quantity of chances for a defect.
Definition: Six Sigma at any organizations simply means a measure of

quality that strives for near perfection. Six sigma is a disciplined,
data-driven approach and methodology for eliminating defects in any
process from manufacturing to transactional and from product to service.
Capability Maturing Model: Capability maturity Model (CMM) is a collection of

instructions an
organization can follow with the purpose to gain better control over its
software development process.
The CMM ranks software development organizations in a hierarchy

of five levels each with a progressively greater capability of producing
quality software. Each level is described as a level of maturity. Those 5
levels are equipped with different number of instruction to follow.
Level – 1 - Initial : At maturity level-1 processes are usually ad hoc and the
organization
usually does not provide a stable environment
Level – 2 - Repeatable: At this maturity level-2, software development

successes are
repeatable. The organization may use some basic project management
to track cost and schedule.
Level – 3 - Defined: A maturity level-3, processes are well characterized and
understood, and
are described in standards procedure, tools, and methods.
Level – 4 - Managed: Using precise measurement, management can effectively

control the
software development effort. In particular, management can identify ways to adjust
and adopt the process to particular projects without measurable losses of quality
or deviations from specifications.
Level – 5 - Optimizing: This maturity level focuses on continually

improving process
performance through both incremental and innovative technological improvement.
Supply Chain Management: It is the process of planning, implementing and

controlling the
operations of the supply chain as efficiently as possible supply chain
management spans all movement and storage of raw materials, work-in-
process inventory, and finished goods from point-of-origin to point-of
consumption.
Enterprise Resource Planning (ERP): It integrate all data can processes of an

organization
into a unified system. A typical ERP system will use multiple components of
computer software and hardware to achieve the integration 4 key ingredient
of most ERP systems is the use of a unified database to store date.
ERP systems cover all basic functions of an organization,

regardless of the organizations business, non-profit organization, non-
governmental organization or government.
PerformanceManagement: Performance Management iscovered with

communication. This is done by creating a climate in which a
continuing dialogue between managers and the members of their
teams takes place to define expectations and share information
on the organizations mission, values and objectives.This
establishes mutual understanding of what is to be achieved
and a framework for managing and developing people to ensure
that it will be achieved --- By Armstrong & Murlis (1994).
Performance Management is about managing the organization. It is a natural
process of management, not a system or technique. --- By Fowler (1990).
Business Process Outsourcing (BPO): BPO refers to a decision to sub-contract some

or all non-core processes. The main motive for business process outsourcing is
allow the company to invest more time, money and human resources into core
activities and building strategies, which fuel company growth.
The global market to day is highly competitive and ever-changing. A company

must focus on improving productivity and yet, cut down costs. There, a lot of
tasks that use up precious time, resources and energy, are being outsourced.
BPOs or the units to which work is being outsourced, are flexible, quicker, cheaper
and very efficient.
BPO is the contracting of specific business task, such as payroll to a tird-party

service provider.
BPO is often divided into two categories.
1) Back Office Outsourcing: This includes internal business functions such as

billing or purchasing.
2) Front Office Outsourcing: This includes customer-related services such as

marketing or technical support.
Business Process Re-engineering (BPR):
Definition: The fundamental rethinking and radical redesign of business processes to

achieve dramatic improvements in critical contemporary measures of
performance, such as cost, quality service and speed.
--- By Hammer and

Champy
BPR is a management approach aiming at improvements by means of elevating
efficiency and effectiveness of the processes that exist within and across
organizations. They key to BPR is for organizations to look at their business
processes form a “clean slate” perspective and determine how they can best
construct these processes to improve how they conduct business.
Bench Marking: A process of searching for, identifying, and using ides, techniques and
improvement of other companies/situations in its own activities.
Definition: A systematic and ongoing process of improving performance by

measuring a product, service or process against a partner that has mastered it.
• In short – comparing methods against the best to identify changes.

• A quality management tool that includes a set of practices
aimed at improving product and service quality
Bench marking involves measuring the performance of the
organization, team or individuals against the best practice for the
industry, function or particular activity.
Balance scorecard: It is a management system that enables organizations to clarify
their vision and strategy and translate them into action. It
provides feedback around both the internal business processes
and external outcomes in order to continuously improve strategic
performance and result. When full deployed, the balance
scorecard transforms strategic planning from an academic
exercise into the nerve center of an enterprise.
The balance scorecard suggests that we view the organization from four perspectives’
and to develop metrics.
•The learning and growth perspective

The business process perspective
The customer perspective
The financial perspective.

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CONTEMPORARY MANAGEMENT PRACTICES

Management Information Systems:

Definition: It can be defined as “Research in the information systems field examines

Factors for its growth:

Growth of Micro Computers Dissatisfaction (delays, poor quality of centralized application

Some we would at a stroke eliminate any inventory of parts, they

In a TQM effort, all members of an organization participate in

Six Sigma refers to the ability of highly capable processes to

The statistical representation of six sigma quantitatively how a

Definition: Six Sigma at any organizations simply means a measure of

Capability Maturing Model: Capability maturity Model (CMM) is a collection of

The CMM ranks software development organizations in a hierarchy

Level – 2 - Repeatable: At this maturity level-2, software development

Level – 4 - Managed: Using precise measurement, management can effectively

Level – 5 - Optimizing: This maturity level focuses on continually

Supply Chain Management: It is the process of planning, implementing and

Enterprise Resource Planning (ERP): It integrate all data can processes of an

ERP systems cover all basic functions of an organization,

PerformanceManagement: Performance Management iscovered with

Business Process Outsourcing (BPO): BPO refers to a decision to sub-contract some

The global market to day is highly competitive and ever-changing. A company

BPO is the contracting of specific business task, such as payroll to a tird-party

1) Back Office Outsourcing: This includes internal business functions such as

2) Front Office Outsourcing: This includes customer-related services such as

Business Process Re-engineering (BPR):

Definition: The fundamental rethinking and radical redesign of business processes to

--- By Hammer and

Definition: A systematic and ongoing process of improving performance by

• In short – comparing methods against the best to identify changes.

•The learning and growth perspective

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