The Management Theories behind Management Information Systems
We can look at IT in terms of all the technology changes we see and the business opportunities they create, and we can look at IT as just another business unit with all the usual management problems of any business unit. But it is also helpful to sometimes clear the air and discuss what we mean by “management.” You have already taken at least one management course, and you have your own experiences to consider, but let’s consider some fundamental perspectives on management. Everyone has their own list of major management theories, but the following three would probably show up on most lists:
Current managers defined their job as motivating employees. Motivation took the form of beatings or firings or pay-per-task. Results were worker injury, poor quality, and worker resistance. Managers had little alternative since they really understood very little of the manufacturing process.
Current information technology (IT) echoes: statistical process control, most management reports, enterprise resource planning (ERP) systems.
Businesses experience threats from five primary sources: existing competitors, new competitors, suppliers, customers, and substitute products. Managers are responsible for understanding the competition and for meeting it. His theory has launched departments of “business intelligence,” units whose sole responsibility is maintaining awareness of competitive firms and general innovations.
Current information technology (IT) echoes: web searches, business literature reviews
Peter Drucker – Management Challenges for the 21st Century, 1999
Two activities keep businesses successful – innovation and marketing. It is the job of managers to always find new and better ways of creating products and delivering services. Your product must be better, cheaper, and delivered faster. But it must also fill a public need. Hence marketing is responsible for understanding the features of a product that are essential. Marketing is NOT selling. If a market need has been understood well enough, no selling should be necessary. People should clamor for your product or service.
Current information technology (IT) echoes: business process re-engineering, quality control, market data, survey and statistical analysis, data mining, any other computer system that will reduce the costs of doing business – HRIS, inventory management, computerized bill paying and accounts receivables, etc.
Organization charts and computer systems will vary depending upon which management model is held by the CEO.