computer in mgt

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Chapter # 1

Introduction

Statement of the Problem

The aggressive and extensive use of modern state of the art communication technology andautomated tools (Computer) in the national development is one of the prime differences between thedeveloped and underdeveloped economies of the world today. No country can achieve itsdevelopment goals without utilizing these instruments effectively and efficiently, which have enablesthe modern developed western economies to improve their products, optimize manpowerproductively, enhance their competitiveness in global market and devise plan on scientific basis withrealistic and accurate parameters. When we go deep into the matter, it becomes absolutely clear thatall this has become a reality through extensive use of computer in every walk of life. This wonderfulinvention of the modern science is considered to be the back bone/foundation of each developed andadvanced countrys economy. Similarly, under developed economies who are lagging far behind incomparison to the developed economies in the field of science and computer technology are strivinghard to achieve mastery over it, inorder to keep pace with new environment and technologicalchallenges. Pakistan as a developing country cannot ignore these challenges. We have to gearourselves to achieve mastery over this technology inorder to enter 21 st century as a proud anddeveloped nation. Computer literacy and application in public and private sector organization ispresently the needs of the hour. Computer are not restricted only to business, But non profitorganization especially public enterprises are extensively using computer to provide facilities allpossible amenities to the general public computer can help in law enforcement crimes control andsolving some social and environmental problems. So we can easily make conclusion that computeris indispensable to modern manager and to society as whole.

Objective of the Study

The main objective of the study is to pin point the important role, computer can play in thefield of management. How computer affect and influence the decision of the manager regardingplanning, organizing, staffing, and controlling function of the management .beside, an elaboratedecision has been made on management information systems and decision making process toacquaint the reader with impact of computer on manager decision making at different levels ofmanagement.

Justification of the Study

It is crystal clear from the preceding discussion that computer is the need of the hour. In order tomotivate the executives in public/private sector organization towards the extensive use of computer;it becomes very much necessary but obligatory for us to brief them about the benefits/advantages thatcan be achieved through the use of computer either in the form of monetary benefits or intangible

benefits in the form of reduction in cost, increase in efficiency and productivity, improved moral and products and elevation of the stature/repute of the organization. In modern organization, dataprocessing capability has been strained by the growth in size and complexity of organization. thiscapability is further strained by the increased demand for data from external sources and the demandof the administrator for more information, which contains the properties of accuracy, relevancy,conciseness and timelines. So, fortunately it is computer that comes to our rescue which give aneconomical and speedy processing of information. Further, we often get information when they are

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no longer needed in decision making so, it is computer that gives us timely information for decisionmaking. Increasing cost of labor and materials associated with non-computer data processing haveoften forced the manager to look to computer usage for economic relief. Today computer are beingused in virtually all the areas of human endeavor. They have been found invaluable and indispensabletools by management for helping to resolve some difficult s immediate problems and for long termplanning, keeping in the mind the above points, this study can be termed justified. If we want to beincluded in developed nation of the world, we must resort to the extensive use of the computer in allwalks of life. DeraDera ismail gomal

Methodology

The study is based on desk research. The analysis and conclusions are the results of the secondarydata, derived from several books of renowned writers and experts of the field, and articles/papers inacademic and research journals/periodicals. Brief interviews of the experts in the fields ofmanagement and computer sciences were also held to get their expert opinion /advice on the contentsand organization of the paper. Articles appearing in newspapers were also consulted forputting/fitting new ideas recently introduced, in the paper. The main reason behind selecting thistopic was based on the fact that experts of both the fields management and computer science were

available. They werequite supportive and encouraging. Especially our research advisor Dr. Rashid-ur-rehman Khan, providing me with his research papers, some how related to my study and givingable guidance during the completion of this paper. Mr.Humayun of Preston University IslamabadCampus also provided invaluable assistance in locating relevant material and explaining somedifficult terms. My interest in computer also compelled me in selection of this topic. Because I havegreat desire to increase my know how in this field, and I have definitely achieved my this objective.

Organization of the Study

The paper is structured in to six chapters. The first one is logically introductory, containing statementof the problem, objective of the study, justification of the study, the reasons behind the extensive useof computer and the methodology of research.Here at this juncture, question arises that if the computer has reached its climax, solely due to the

development in computer systems or changes/; progress in other fields of technology also effected itis present position.This fundamental question is answered in chapter two where the influences of communicationtechnology on computer are explained in detail. This chapter contains, the explosive growth ofcomputer and communication and business world.and benefits of computer-based systems.In chapter three computer based information system and its sub systems are defined. Then the role ofcomputer is evaluated in decision making process at different level of management hierarchy.Common people and even some managers pose question as to how computer can be used foreffective planning and controlling.In chapter four, the application of computer in planning is discussed at length with special referenceto decision making techniques such as networking, mathematical programming and simulation.While chapter five contains the details of the revolutionary changes bought by computers inmanagement control functions.

The final chapter, is a brief summary in which conclusions have been made on the basis ofthe facts and figures presented in the earlier chapters. An implicit appeal to developing countries ismade to achieve mastery over computers.

Reasons Behind Extensive Use of Computer

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Recently the galloping nature of organizational transactions is lodging pressing demand over dataprocessing professionals to adopt in tune with the tempo of both organizational operations and datahandling technologies. The moment computer invaded the organizational environment the ever firstdata manipulation service, was off line batch processing (where in transaction to e processed werefirst recorded from the source document on intermediary devices like punch card later on magnetictapes or desks in shape of batches of job and their After sent to the computer for processing) Nowdays we have on line processing. Inorder to completely/comprehensively acquaint us with thecomputer impact on Management/function and manager decision making, it would be better tobriefly explain on line processing.

On-line Processing

Innovation in computer technology has introduced a metamorphosis in hardware and software,partially, because of personal interests of the professionals thereon, and partially due to rapid pace ofbusiness. Experience testifies that information which is not timely and accurate is almost as good asno information at all and sometimes worst. So, data processing industry is undergoing unprecedentedchanges as new ways of performing date processing functions are rendering traditional methodsobsolete, because they do not provide information with the properties of timeliness, completeness,conciseness and relevancy. As the need for quick and instantaneous information became crucial tothe recurring complicated/changing decision situations a shift desirable from off-line batch system toon-line direct interaction with the computer processor and data bank became indispensable.

Unprecedented raid of microcomputer on all the horizon of data manipulation endorses the thesis ofGolden C,Everest, who notes, probably the most significant factor in the use of micro computersystem is inherently on-line. A system designed to run on a micro computer must be in constantcommunication with the user, responding to the request and advising on the status of the action online batch processing reduce the delays associated with batch processing, since data does not passthrough a time consuming, conversationally process.On-line is the term verily worded to convey direct interaction of data user with the processor (CPU)and data bank without using any media (punched card of magnetic tape). It also denotes a peripheralmachine connected directly to, and capable of unassisted communication with the control processor.On-line system involves a user setting in front of a computer terminal that is connected via hardwareand a communication line to large computer.Advent of micro processing along with surprising cost reduction thereof, has elevated on-line modeto become indispensable wherein, sophisticated analytical, graphical, and computer interface

capabilities are able to generate, integrate and present data in a flexible and easy to use format.Surprising innovations in computer technology and rising personnel costs stimulated search forefficient techniques of data processing. With the Remote job entry (RTE) terminals, printingterminal, dump display terminals, intelligent terminals and the microcomputers. These all served toget the user on-line.R.L. Martino glosses that, we want knowledge and information in the real time of its occurrence orin other words, in appropriate frame of action. It is only possible through on-line.Todays preferred operational mode is on-line data processing. It provides users with the fastestprocessing of data and with the immediate access to computers information. The term ion-linedenotes that a communications link exist between users (terminal) and theyre supporting system(supporting computer)

Main Advantages (Strengths) of Computers.

In recent years people have becomes aware of the influences that computer are exerting on ourenvironment. Each day we receive many services that are computer supported.An issue faced by many people relates to what task computer can undertake. Computer are essentialto our government and business, they also provide entertainment and invaluable education support.Three factors that might lead to the implementation of computer system are speed, accuracy andreliability.

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Speed.Speed current computer is capable of amassing, manipulating and providing data in thousandths ofsecond. Current computers can handle over 10 million computations per-second. Two termsfrequently associated with the speed of computer are volume and frequency. Volume relates to theoverall amount of data processed, whereas frequency defines how often a specific item of data isaccessed.

Accuracy

The accuracy of computer is astonishing. Contrary to popular belief, mostcomputers related errors are caused by humans, not by equipment malfunction. The majority of theerror is the result of improperly prepared data, which has been to the computer.

Reliability

Computers are extremely reliable devices. They are capable of operating for long period of timeunder the worst condition and will consistently produce the same accurate results. The reliability ofcomputer may lend invaluable support in the successful operation of any business.Computer has the ability to amass and analyze the data, rapidly display this information. Thiscapacity is vital to organization enabling them to respond rapidly to changing business conditions.Computer change as new technologies is introduced enabling them to be applied to the new fields.

An emerging field is ROBOTICS, where computer- controlled robots perform production tasks. Theuse of robots in manufacturing is closely linked to the CAD/CAM operation computer- aided design(CAD) describes the computerized design of items to be manufactured. Computer- aidedmanufacturing (CAM) facilities use computer to control the production of CAD items. An integralpart of CAD/CAM operation is the use of robots on production lines.

Artificial Intelligence

(AI) relates to research efforts under way to produce a thinking computer. The American andJapanese industries are investing Billion of dollars to build such a machine. Thinking computer willuse logical processing sequences that will parallel the human thought process, operating 1000 timesfaster than current systems. A component in these new machine may be Josephine-switching devicewhich operates in Pasco seconds (trillionth of second).The new computer incorporating these and other advancement will be referred to as fifth

generation computers.

Classification of Computers

Computer can be classified as to how they handle data and as to their respective processingcapabilities. Computer system can be group into three broad categories.

Analog and digital computersHybrid computers.Specialpurpose and general-purpose computers.

Analog computers are said to measure toward answer, because they assign numeric values as the

result of measuring some physical property i.e. (electric current through a vacuum tube mightrepresent a number). Analog computer support energy conversation system, which manages theheating and air conditioning resources, used by organizations.

Digital computerepresents their data as number or distinct number. Data is represented by an exactnumber of digits and enables digital computer to count toward their answers. Adding machine and

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pocket calculators are the example of digital devices. The majority of computer supporting businessapplication are digital.

Hybrid computers combine the best features of analog and digital computers. These computerspossess the speed of analog and accuracy of digital computers. Hybrid computers are frequently usedto control computerized manufacturing processes, where their operation characteristics are fully used.They effectively support CAD/CAM operation.

General-purpose computers can support almost any type of Computerized processing with equalease, they may handle business data and scientific equations. They offer a wide range of applicationsto users.

Special purpose computersare primarily digested to handle specialized application. They are normally assigned one job and noother activities.A simulator is a special purpose computer used in training of pilots, navigators and other specialists.Using simulations it is possible to create the conditions under which these individual must oftenoperate and to test their operational effectiveness.Computer Systems

Computer system hardware refers to the computer equipment or actual machinery used in thecomputer system.

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Super Computer Systems

The most largest, expensive, and sophisticated computer systems, which have CPUs of 5000k orlarger, disk storage in excess of 1000 megabytes, and cost over $10 million. The most complexapplication, execrating 50 to 100 million transactions per second. Super computer support real timetasks involving worldwide telecommunications for vast organizations.

Mainframe Computer Systems

The term currently assigned to most general-purpose digital computer is Mainframe.The term is broad enough to cover most computers, while excluding specialized systems. Mainframespossess good size CPUs and secondary storage composed of disk devices. They focus on lineprocessing employing a variety of 1/0 devices for data handling and out put operations. Mainframesystem handles both business and scientific data, generally operating on a 24-hour basis. Mainframesupports the vast majority of computer organization.

Mini Computer Systems

Mini computer smaller version main frame, processing specific but limited task orientation,introduced mid 60s. They can support wide range of on-line activities comparable to those of largerMainframe systems, but more cheaply.

Micro Computer Systems

The smallest computing hardware. Micro Computers are built using computer chips calledmicroprocessor. Microcomputer used a variety of RAM, ROM, PROM, EPROM chips (erasableprogrammable read only memory) to handle processing and data storage. Microcomputers are morewidely recognized as personal or home computer.

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CHAPTER # 2

ELECTRONIC COMMUNICATION TECHNOLOGY

While moving through the contents of the preceding pages most of the terms reflected the meaning of

connecting something to another like users to computers, and computer to computers arranging a setof on line (internal) data entry, data processing and data retrieval in the range of what ever distance.It is so important because with the increased impasses on quick response system, greater emphasesare laid on data communications facilities. The phenomenon of on line processing is of courseelevated to the high level of esteem when incorporated with electronic communications systems,which expands the formers profitability to the nation wide and global range of lucrativeness in theform of INTERNET, which is the big source of information and communication, providing managerswith every bit of information about almost every thing. Over 30 million people use it worldwide. A person in Pakistan can get him connected with intend via PUBLIC DATA NETWORK(PDN),everybody can get himself connected with INTERNET if he has a PC, modem, telephone lineand expertise in computer.

Lawrence Oriole reports that according to an industry wise marketing survey, spending ondata communication equipment have increased and would continue to do so, and the increased use of

on line modes has resulted form the technological ability of communications activities. Syed KamalHussain annotates that in to days competitive global business environment communications is moreimportant than ever

The Explosive Growth of Computer and Communication Technology.

The last forty years have seen explosive growth in the use of computers and electronics. From verycrude calculators and transistors, we have progressed to very high- speed computer use from desktoplevel upped organizations level. Growth in computer systems, however cannot be simply in terms ofadvances in separate devices or stand alone equipments, rather a major component of the growth incomputer use in the last twenty years has been data communications. Communications constitutes avalue-added contributor to the growth of computer systems. Communication itself has expandedrapidly to support voice and message traffic around the world. Advances in computer technology

have provided a foundation for these communications utilities, and they continue to support the vastincrease in the telephone instruments, telephone traffic, and the wider scope of traffic that includesimages of document sand video transmission.

Electronic Communication and Business World

Telecommunication is a technology that is continually adding new dimension to the computerizedhandling of data. It has permitted on-line processing operations to dominate the computer industry,providing the means to transfer business data throughout the world.

In the business world we must collect information on particular situation make decisiondisseminate information decisions and evaluate and assess the effect of these decisions on the business situation. An electronic communication system adds speed and reliability to theseprocedures, these inturn, may improve the services or products offered by the organization and thusincrease its efficiency and profitability.

Components of a Communications System

Any communications system consists of three major components.

1. Transmission: Transmission covers the movement of information between the sender andreceiver.

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2. Hardware: Hardware includes all communication and computer equipment thatsupports the communications system.

3. Software: Software is the method of communication, or protocol and the softwaresupport. Languages such as English on French are forms of protocol.

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Benefits of Computer Based Communication System.

The cost incurred on communication based systems are often substantially outweighed by tangiblebenefits to the organization stemming from the communication systems.The following list gives some specific benefits driving form electronic communications.Improved sharing of information among staff and between manager and staff.Increased visibility of information for background analysis and decision making.Improved capture transaction through reports on line and editing, as data is inputs.Greater management control through reports on individual transaction counts and job performance.Reduced cost of communication compared to telephone calls, typing, mailing and handling.Increased uniformity of procedure and practices in remote sites, ensuring consistency of handling andprocessing.Reduced paper work and file through the access of information on-line.Improved customer service and customer satisfaction through quicker and more efficient handling ofcustomer request and issues.Improved accuracy and completeness of data through control of entry, editing and processing.Improved competitive position with other firms through reduced cost and increased responsiveness.Reduction in staff through elimination of clerical work and automation of field and processing.Flexibility in meeting new business location through adding to document, table driven system that ison line.

Effectiveness

Looking at these benefits, we would rank first the increased effectiveness of the organization with thecommunication system in place. For example, an Airline reservation system is a necessity if anorganization is to compete successfully in the airline travel market on large scale. Similarrequirement exit for banking and military command and control systems. Thus, thoughcommunication costs may be very high, these costs may pale in comparison to the revenue andbusiness that the system generates.

Control

An another major benefit is the control of costs. When staff member are given computer terminals,

productivity may and usually does increased significantly. In some organization, an on line terminalsystem has increased productivity over the existing manual system by more than 100 percent. That is,with the communication system the average employees are able to perform twice the amount of work performed using the manual method of operation. Saving may also occur because there is lesspaperwork with the on line system, which translates to less filling and a reduced need for clericalsupport. The ranks of management may also gradually change; some organizations have experienceda flattening of their organizational charts, as fewer levels of management are required.

What do employees think about such changes? In some countries there are businessoffice unions that seeks to control changes in particular the introduction of automation. Conversely,some companies have found that on line communication system have resulted in more satisfiedemployees with less absenteeism and job turn over. Nevertheless, the impact of automation in theoffice, as in the factory, is still a major controversial issue.

Flexibility

Another benefit is flexibility. With a communications system in place, a firm canset up a new office in a remote town in less time. The new staff requires less training becausesoftware for the on line system provide self-training. Financial institution has used this approach totest new branch lacerations. Trailer and mobile buildings, equipped with terminals, may be erected,

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and if the branch generats enough volume, the company makes the branch a permanent addition. Ifthere is not enough business the company can close the branch at less expense.

Flexibility and mobility go hand in hand. A communication system enable salespeople, auditors, manager, and other the employees to works at remote location and connect throughcommunication network. Some of the jobs they might perform include.Input of new customer orders.Input of audit and review results.Entry and review of electronic mail.Input of financial information.

Since less than half of the telephone calls placed actually reach the desired receiver(due to busy signal, no answer, messages left, and so on), and it is no wonder that the use of datacommunication is increasing.

Many people focus on the benefits described in the preceding paragraph and ignorethe managerial benefits, If remote groups are using the same system, there will be a higher level ofconsistency of work and uniformity of procedures. In a manual mode or with separate computer,many groups develop different procedure and work rules. Consistency means greater economies ofscale in documentation and training, and it simplifies the transfer of personnel from one branch ordepartment to another.

Management can monitor and control remote sites more effectively and efficiently with datacommunications. The volume of work done can be accessed by the manager via the computer. Today

many manager use such system to:Review individual orders, transaction, and issues.Monitor productivity and staff utilization.Analyze costs in remote sites, such as offices, factories, and warehouses.Receive and review financial projections and actual expenditures.Assess the sales of a new product line or service.Some of these benefits are magnified by connection of remote sites to signal main computercomplex. In one organization the manager review each morning the productivity and the workloadhandled by the staff during the previous day. As a result, the manager may approve overtime, adjuststaff levels and work schedules, change inventory levels, or order goods to be shipped betweenwarehouses.

An electronic communications system also offers two way management communications.That is, the manager may send an electronic message or letter to another manager at a field office.

The message can be sent by the manager during the day and stored in an electronic mailbox. Thefield manager can review the letter a few minutes later, saving hours or days compared to the paperpath and mail system.As with the impact on employees these managerial benefits can have widespread ramifications. Forexample, central managers may choose to control field sites much more closely reducing the de factoresponsibility given to the field manager.Communication occurs not only between remote site and headquarters but also between differentremote sites. In a retail fast food chain, point of sale terminals record sales of hamburgers, soft dirksand so on and transmit this information to computer. The computer may then automatically producean order for additional food supplies at a terminal in a food wholesaler location. By identifying salestrends in stores in a given metropolitan area, market analysts can modify an advertising campaigndynamically. Sales offices can transmit orders and check on available and uncommitted stock at awarehouse location. Many automobile dealers are tied into several net works; aparts network, a sales

network, and ordering network for additional new vehicles.These examples show that a major benefit of communication network is the inter connection of majorparts of a business. This has psychological as well as financial benefits. The remote sites feel morestrongly that they are increase productivity. In addition emerging communications systems nowconnect many organizations in diverse industries. Thus, in the automotive field, dealerships arelinked to distributors, suppliers, banks (for credit), and the manufacturer. The manufacturer is in turnlinked to suppliers and manufacturers of subassemblies.

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Handling Computerized Data

Computerized data is handled at many speeds depending on communication means used. The lowesttransmission rate are handled on the NARROW BAND CHANNER It has a BPS rate of 45 to 150bites per second, typically serviced by telegraph or teletype lines.MID RANGE is covered by VIOCE-GRADE CHANNEL where rates are 1800 to 9600 BPS.Common telephone lines.WIDE BAND CHANNEL offers the highest transmission speeds, handling rates of 19600 BPS andhigher. Included in this category are Coaxial Cables. (Handle higher transmission reduceinterference) Microwave transmission (high frequency radio signals).Satellite transmission and use of Fibber Optic (transmits light impulses over wires of silicon).International airlines use satellite to link sales offices to main computers located in Europe. Thissatellite orbiting the earth at a height of 23000 miles can relay data to computer centers locatedthroughout the world.

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CHAPTER # 3

COMPUTER BASED MANAGEMENT INFORMATION SYSTEMS AND DECISION-

MAKING.

Today, largely through advances in computer and communication technologies, we living at a timethat many people call the information age , one major reason our era is so named is because mostworking people to day have jobs that are information intensive. For example, jobs such as teacher,accountant, lawyer and particularly manager or all predominantly based on the handling ofinformation. The emphasis differs from that of earlier decades in which most jobs involved sometype of physical labor applied on farms or in factories.

By the late 1960s nearly half of (GNP) and over half the labor income in the US came frominformation related activities. In his book power shift Alvin Toffler suggest that we are coming tothe end of the information age and beginning a new age information processing and communicationcapabilities that is best described a KNOWLEDGE AGE, According to Toffler, knowledge is furtherrefined information. Advanced computing approaches such as intelligent data base managementsystems, multi-media systems and knowledge based systems such as neural networks and artificialintelligence and other fifth generation systems.Information technologies continue to shape not only the way the people perform work, but also theproducts that many businesses turnout and the manner in which many business compete. Information

processing has become a matter of strategic importance for most of today organization. In manyindustries such as banking, insurance and travel, it is virtually impossible for an organization tocompete unless its customers are given the level of service that is only possible with high technologysystems. Managers largely depends on the skilful use of information and knowledge and that asizable portion of this information will be computer generate, even the very future of manager hingeson strategically applying information technology in new and innovative way.

Definition of Management Information System

Any system that provides the people with date or information related to an organization operation.MIS support the activities of employees, owners, customers and other key people on organizationenvironment either by efficiently processing data to assist with transaction work load or byeffectively supplying information to authorized people in an timely manner.

Computer Based Information System

It is the collection of people hardware, software information and data to interact and provide timelyinformation to decision-makers.

Figure: 1.1 sub systems of MIS

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Management Information System

TransactionProcessing System(TPS)

ManagementReporting System(MRS)

Decision SupportSystem (DSS)

Office InformationSystem (OIS)


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Transaction processing system (TPS)

It comprises the routine day-to-day accounting operation. These paper work processing operationsmany of which provide linkages among the customer, organization, warehouse, and factory-includeA/C payable, inventory control and the relationship of these activities.

A transaction processing system (TPS) collects and store data about transaction and sometime control decisions made as a part of transaction. A trisection is a business event that generates ormodify data store in an information system (TPS) were the first computerized information system.TPS have two types.

1. Batch processing2. Real time processing

Management Reporting System (MRS)

Information reporting System Generates preplanned printed reports for decision making purpose.The reports produced are commonly the by products of the extensive and detailed data bases

assembled by transaction processing system.

Decision Support system (DSS)

It provides a set of easy-to-use modeling, retrieving and reporting capabilities so that people cangenerate the information they feel will be useful to them when making decision. Further developmentof DSS, coupled with the trend towards net working personal computers, have resulted in groupdecision support system (GDSS) that support the activities and decision making of entire work team,rather than individual.

Office Information System

It includes the use of such computer based, office-oriented technologies as word processing, desk top

publishing, electronic Mail, video Tele-conferencing.Knowledge based system like Expert system (ES) and artificial intelligence (AI) mimic humandecision-making process. ES it typically a rule-based system that solves problem in a manner similarto human experts methods. AI includes robotics as vision-inspection system for spotting defects asproduct roll off the manufacturing assembly line.COMPUTER, MANAGEMENT, AND DECISION MAKING LEVELS OF MANAGEMENT

Management positions are often down into three levels:

Upper Level Management: (president, vice president)

Upper level managers a primarily responsible for plotting the COs

Future moves. Its most important task is STRATEGIC PLANNING-Determining the goals, objectiveand plans that chart the organization long-range course. They need broad-based information tostrategic planning decisions. In the early days the manager based their decisions on intuition, asWaston Agor, an executive behavior researcher, claims, without exception, top managers in everyorganizations differ from middle and lower level managers in their ability to use intuition to makedecision on the job these manager have a sense of vision of what is coming- and how to move theirorganization in response to the visions.

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Before 1980s, computer and communications technologies had little impact on the decisionmaking processes of upper level management, but as today MIS has expanded beyond its traditionaltransaction processing roots into as a competitive tool, the upper level management is becoming moredirectly involved with using technology and confronting technology based issues.Recent boom in the user-friendly software and on line databases has also made it easier for upperlevel managers to interact, with computers. These have facilitated the acquisition and integration ofthe information needed for strategic planning and enterprise-wide management.Executive support system (ESS) and executive information system (EIS) have also been developed tosatisfy the special information needs of the top- level-managers.

Middle Level Management

Managers responsible for any thing between upper and lower management. The informationrequirements of these managers are slightly. different from those of upper management. Middlemanagement mostly involves tactical planning, which is determining the best way to get the jobdone and control. They must figure out what concrete actions should be taken to translate strategicfinancial, sales and production goals into result.

The information requirement of middle managers has been partially satisfied by reports generatedby management reporting system (MRS). DSS have also assisted middle managers that are calledupon to make structured and non- structured decision.

Lower Level Management

It is directly responsible for planning and controlling the activities of workers so that higher leveltargets are met. Such manager need detailed reports that describe what needs to be done by eachwork unit and how well each unit is progressing towards production targets. Information needs oflower management are generally short term. The planning activity of lower level managers isfrequently called the operational planning.Transaction Processing System (TPS) Management Reporting System (MRS) help lower levelmanagement decision making process.

Supporting Information System

Three levels of management examples of some of the ways in which the characteristics of thedecision and information needs vary across levels. This figure should the types of informationsystems likely to provide managers at different level, information, they need to make decision.

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Decision Making

It is clear that computer is a powerful tool for extending man's brain power. Peter Drucker haspointed out that man has developed two types of tools.

Those that add to his capabilities and enable him to do something that he otherwise could not doe.g. airplane, andThose that multiply his capacity to do that which he is already capable of doing (e.g. hammer).The

computer also falls into the later category. It is an intelligent amplifier, helping the managers indecision-making. Director of Computer Sciences for UNIVAC notes that today computers have builtinto our society a mind-amplifying factor of 2000 to 1 i.e. behind every man woman, and child inUnited States there stands the power of 2000 human data processors.Computer enlarge the brain power because of the following properties.The ability to provide new time dimensions.The ability to perform certain logic operations.The ability to store and retrieve more information.The ability to control errors (parity chHAPTER #4

COMPUTER AND MANGEMEMENT PLANNING

Management is defined as the process of achieving organizational objective through the efforts ofother people.The manager is practitioner of art and science of management. His job is to carryout the basicmanagement functions necessary to attain goals. Like planning, organizing, staffing and controlling.

ROLE OF COMPUTER IN PLANNING

What Is Planning

Planning is to decide in advance on a future course of action. It involves making decisions withregard toselection of both short term and long term strategies and goals.development of policies and procedure that will help accomplish objective or counter threats.

Establishment of operating standards that will serve as basis for control.The revision of earlier plans in the light of changing conditions. All these decisions requiremanagerial skills and good quality of information.

It is crystal clear that quality that information could support good decisions, good decisions shouldlead to effective performance should lead to the attainment of organizational goals. It is notsurprising therefore that the acquistion and use of computer (or any tool that promises to dramaticallyimprove the quality of information) may have important managerial implications.In the light of importance of information in the decision making process, it has became indispensablefor top executive to use computer based systems to improve the quality of their decision. But, we lacksuch leadership in the near past, many primarily a technical problem, leaving the entire project to thedata processing specialists. This behavior of the top executives has resulted in marginal results in anumber of firms (No backing and underfined managerial information requirement, for example, a

study of the performance of data processing operations of 150 top-computer-using organization inUnited States was conducted by international Data Corporation. The results of the study showed thatabout 95 percent of the responding organization felt some degree of dissatisfaction with their dataprocessing data operations.Top managers should realize that their serious involvement in planning for computer is perhapsthe most important single factor determining the success or failure of computer utilization.

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Generally speaking computer usage of can improve planning by providing effective informationwhich (I) leads to problem awareness (II) supports problem analysis and selection of alternatives (III)influence the choice of most appropriate option and (IV) permits field back on the implementation ofdecision.

More specifically the use of computers can have an impact on the planning function byCausing faster awareness of problem and opportunities planning data stored on line may permitmanagers to probe and query files and receive quick replies to their questionsIt can quickly signal out of control conditions requiring corrective action when actual performancedeviate form what as planned.Enabling managers to devote more time to planning. Free manager of clerical data gathering task andpermits him to give more attention to analytical and intellectual matters.Permitting managers to give timely consideration to more complex relationships. The computer givesthe manager the ability to evaluate more possible alternatives (and to consider more of the internaland external variables that may have a bearing on the out come of these alternatives). It makes itpossible for administrator to do a better job of identighing and assessing the probable of economicand social effects of different of courses influence the ultimate decision.Assisting in decision implementation when decision has been made the computer can assist in thedevelopment of subordinate plans that will be needed to implement these decisions.Computer-based techniques to schedule project activities have been developed and are now widely

used. Through the use of such techniques business resources can be utilized and controlledeffectively. Computer based techniques of Network Analysis, Mathematical Programming &simulation have managerial implications.

DECISION MAKING TECHNIQUES FOR PLANNING

These techniques (which are often classified under the heading of operations research ofmanagement science) are used to1. Speed up problem or opportunity awareness.2. Permit more timely consideration of increasing complex relationships.3. Assist in decision implementation

NETWORK ANALYSIS

Both PERT (Program Evaluation and Review Techniques) and CPM (Critical Path Method) arenetwork model which are used to plan, schedule and control complex projects. Basic concepts of bothare similar.Procedure used to set network model envisages thatAll the activities to be performed in the project must be identified.The sequence of each activity must be determined. I.e., it must be know that what elements have tobe completed prior to the start of a particular activity and what tasks cannot commence until after itscompletion.The time interval required to complete each activity must be estimated.The longest sequence of the event must be identified, the sum of the individual activity times in thissequence of activities is know as the critical path. It is important to note that computation for smallnetwork can be produced manually, but a computer is needed with network of any significant size.

Most computer manufacturers have PERT and CPM packaged program available and they are alsoavailable in the on-line libraries of many item sharing service.

MATHEMATICAL PROGRAMMING

Its purpose is to find best stately from among a large number of operation. Most mathematicalprogramming involves to achieving a specified objective (which is typically to maximize to find best

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contribution of limited resources the use of linker programming. Linear programming models is usedto find profit and minimize cost) linear programming is being use for blending operations (cattlefield, mixture of minerals, grains, fish, and meat products at least expansive selected).

Scheduling manpower, selecting media for advertising purposes determining minimum transportationcosts from given supply points to specified points of delivery and determining the most profitableproduct mix that may be manufactured in given plant with given equipment. This technique may alsoassist manager carrying out his other function.

SIMULATION

Simulation is similar to scientific experimentation. In complex situation few people fullyunderstand all aspects of a situation, therefore, theories are developed which may focus attention ononly one part of complex whole. In some situation Model may be built to test or represent a theorysimulation is the use of a model in attempt to identify or and reflect the behavior of a real person,process or system.In organizations, the administrator may evaluate proposed projects or strategies by constructingtheoretical models, They can then determine what happens to these models when certain conditionsare given or when certain assumption are tested. Simulation is basically a trial-and error problem-solving approach. It is a planning aid to consider value for administrators.Simulation models help top executive decide whether or not to expand operation by acquiring as new

plant. Among the dozens of complicated variables that would have to be incorporated in to suchmodels are facets and assumptions aboutpresent and potential size of the total marketpresent and potential company share of this total marketproduct selling prices, andInvestment required to achieve various production levels. All these information can be achievedeffectively through computerThus, in this way simulation help top executive in their strategic planning and decision-makingactivities.

Middle level manager are also benefited in tactical planning and decision makinge.g. simulation models are used to improve inventory management. The problem of managinginventory is complicated because there are conflicting desires among orgal units, what is best for onedepartment may not be best for entire firm.

Purchase department

Want to buy large quantities of supplies and raw material to get at lower prices

Production department

Want large inventories on hand to eliminate shortages.

Sales department

Prefer large finished goods inventories so those sales will not be lost due to out of stockcondition.

Finance department

On the other hand, view it with great concern because large inventories result in increasestorage expense risk of spoilage is increased funds are tied up for a longer periods of time.

But through the use computer simulation amount and simulated assumption, manager canexperiment with various approaches tool arrive at more profitable inventory levels. Frank in LINDDAY points out to the importance of computer in dozen alternative investment schemes, togetherwith the costs and expected return from each, is simulating each alternative investment schemes issimulating each alternative so that his board of directors can judge their relative merits. But the new

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mathematical tool, together with high-speed computers, extend tremendously the capabilities ofsimulation processes.

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CHAPTER # 5

COMPUTER AND CONTROLLING

Computer have completely revolutionized the management control functions. It has greatersignificance regarding of control of any activity/event/function/process/system

Computer can quickly signal out of control condition brings about faster awareness of problemthereafter. The computer further more programmed analysis may be carried out by the computer topresent recommended courses of action to managers.Triggered control reports, based on the principle of exception may be prepared only when actualperformance varies from planned standards. Managers are thus relieved more important personal andenvironmental matters.Computer-based techniques such as PERT&CPM may permit more effective control of businessresources.Computer system make it possible to centralize authority and control previously delegated lowerechelon, because of time, distance and farmiliarity factors. (However it's based on managerialphilosophy & judgement not a requirement. Not on computer usage)

Internal control and auditing techniques will generally have to be revised to accommodate computersystems.

CONTROLLING

Unlike planning, which looks to the future, control function looks at the past and present. It is followup to planning; it is the check on past and current performance to see if planned goals are achieved.Control function comprises following steps:

SETTING STANDARDS

Proper control requires that managers establish pre-determined goals. The setting of realisticstandards requires quality information, which is only possible computer.

MEASURING ACTUAL PERFORMANCE

In this connection, timely and accurate performance is essential to control.

COMPRISING ACTUAL PERFORMANCE WITH STANDARDS.

Comparison information is action-oriented. Computers can provide this information to managers tomake decisions for correction or future course of action.

TAKING APPROPRIATE CONTROL ACTION

If performance is under control, the managers decision may be to do nothing. However, if performance is not unto the standard, it may be because the standard is unrealistic. Thereforereplaning may be necessary to revise the standard. For this purpose current, precise, correct relevantquality information is needed, which is only available readily via computer use and application.

The information out put of the computer can help the manager carryout this procedure in many ways.First of all, creation of more realistic and sound standards. Computer simulation can help managers insetting goals by showing them the effects of various alternative decisions when certain conditions areassumed and computer-based net work models such as PERT &CPM can improve planning (andtherefore control) by forcing managers to identify all project activities that must be performed.

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Computer processing system can also help managers control by gathering, classifying, calculating,and summarizing actual performance date promptly and accurately. Once performance data are readinto computer.It is possible for the machines to compare the actual performance with the computer so, that it signalswhen pre-determined decision should be carried out. For example, a program may specify that whenthe inventory of a certain basic part falls below a given level am out put messages signals the need tore-order and indicates the reorder quantity. By thus relieving thus manager of many routineoperational control tasks, the computer frees him to devote more time toPlanning future movesLeading the all-important human resources of the organization such as man-machines relationship.In other words, makes it possible for manager to concentrate more of attention on the heuristic areaintellectual work an area in which he is far superior to the machine.

INTERNAL CONTROL

Internal control is the total of all the control arrangement adopted within an organization toCheck on and maintain the accuracy of business data.Safe guards the company assets against fraud and other irregularities.Promoted operating efficiency andEncourage compliance with existing company policies and procedures.

NEED FOR INTERNAL COTROL

Data processing activities may be centralized as result of computer usage, while in non-computersystem these are typically separated into several departments. For example in a customer order, creditapproval may come from one location control of the inventory of ordered items may reside in anotherdepartment customer billing may be handled by third department and receipt of payment for itemsshipped may in fourth location. Such a division of data processing activities makes it difficult forfraud to go undetected since several people firm different departments are involved. The use ofcomputer system result in a reduction of internal control. It is now a great realization among mangersthat the employee oriented control of manual systems should be replaced with system-orientedcontrols, in the form of computer programs.

However, the separation of activities within the computer department can help maintain the integrityof the system-oriented controls. One important control principle is that there should be an orgalseparation between those knowledgeable employees who design and prepare the new systems andthose who prepare the in put data and operate the equipment. (Analysists and Programmers +equipment operators)

Business information systems undergo periodic examinations or audits. By internal auditorand external auditors during the course of examination attention is turned reported procedure and policies and are being followed. The audit trail begins with the recording of transaction windsthrough the processing steps and ends with the production of out put reports and records..

Input data online date

Input date Central Processing unit SEE PAGE #45

Input Data Online Storage

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Input Data Central Processing Unit Processed Output

Input Data Collected Input Data

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CHAPTER # 6

CONCLUSIONS

It is an undeniable fact that development in the rapidly changing world is unconceivablewithout modern sophisticated computer systems, and satate-of-the-art communication technology.For making vital decisions at strategic, tactical, and operational levels of management hierarachy, themanager/administrators in modern dynamic organizations are bound to move as closer as possible tocomputers and data banks for achieving desired information in shortest possible times without anydelay otherwise, the organization would definitely lag behind, gradually spacing back in the race ofcompetition and compatibility. Consequently, creeping to the point of no return.The emerging face of new computer-based management-information systems (CBMIS),accompained by explosive growth of communication technology has completely changed the modernbusiness practices. Because, information technologies continue to shape not only the way the peoplework, but also the products that many businesses turnout and the manner in which many businessescompete.To day, largely through advances in computer and communication technologies, we living at a timemany people call the information age . One major reason our era is so named is because mostworking people today, have jobs that is information intensive, based on information handling. Theemphasis differs from earlier decades in which most job factories. It is also significant to note that by

late 1960s,nearly half of the (GNP) and nearly half of the labor income in the US came frominformation related activities.Recently, incorporated with the electronic communication system, the phenomenon of on-lineprocessing has expanded to the nation wide and global range of lucrativeness, in the shape of INTER-NET, which is big source of information and communication, with 30 million consumers world wide,providing managers with every bit of information about almost everything.

Generally, management positions are broken into three levels.

UPPER LEVEL MANAGEMENTMIDDLE LEVEL MANAGEMENT.LOWER LEVEL MANAGEMENT.

It is evident from experience that computer-bases-management-information-systems (CBMIS) play avital role in assisting managers in decision making at these three echelons (strates) of managementhierarchy.

At UPPER LEVEL, managers are primarily responsible for plotting companys future moves. Theirmost important task is strategic planning-which is to make long-range plans/policies. Executivesupport systems (ESS) and executive information system (EIS) have been developed to satisfy thespecial information needs of these top-level managers.Whereas, MIDDLE LEVEL MANAGEMENT information requirement are satisfied by ManagementReporting System (MRS) and Decision Support System (DSS). Because the manager at this level areinvolved with tactical planning-which is to determine the best way to get the job done and control.While the LOWER LEVEL MANAGEMENT is directly responsible for planning and controlling theactivities of workers, so that their high level targets are met. They are assisted in their decisions by

transaction processing systems (TPS) and Management Reporting Systems (MRS).There is a general agreement, that quality information could support good decisions, good decisionsshould lead to effective performance of managerial function, and effective functional performance ofmanagerial functions and effective functional performance of managerial functions performanceshould lead to the attainment of organizations goals. It is not surprising therefore that the acquisitionand use of computers may have important managerial implications. In the light of significant role theinformation can play it has become indispensable of top-executives to use computer-bases system for

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planning activities. Already available techniques for efficient and effective planning and controllingsuch as PERT, CPM, Mathematical programming and simulation etc, have been further refinedimproved, reorganized and made result-oriented due to the blessing of these computer systems.Further more, computers have completely revolutionized the management control functions. It hasgreater significance regarding control of any activity/function/process/system. Computer can quicklysignal out-of-control conditions, can compare actual performance with pre-determined standards, hasmade the centralization of authority a reality, and develop efficient and effective control.Today, computer are not restricted to only business but non-profit organizations such as government,educational institutions and hospitals are also as government educational institutions and hospital arealso benefited from this marvel of the century. Computers have not only become part and parcel ofevery organization, but even the society as a whole. The new breed of managers cannot avoid the useof computers to gain a competitive edge over other competitors in the global business arena.Now days developed and underdeveloped nations are differentiated on the basis of either it use or notuse computers. Under the circumstances, it has become indispensable for underdeveloped likePakistan to not only achieve mastery over computers but to excel in this field, entering 21 st century asa proud and developed nation.In short, we can confidently reach the logical conclusions that computers literacy and its extensiveuse and application at all level of management hierarchy for rational decisions making in the areas ofplanning, organizing staffing and controlling is the need of the hour.

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BIBLOGRAPHY

Sanders, Donald H.computers in Society, 3rd Mc Grow Hill Book Company, 1981.Sanders, Donald/ Robbery, Computers today, 2nd McGraw HillBook Company, 1985.Charles Parker and Tomes Case Management Information System (Strategy and Action) 2nd: 1996.Sanders, Donald H. computers in Business, 3rd McGraw Hill Inc.1975.Banknote P. Lentos and Kathryn. P. Era Data communication for Business.1 st Times-Mirror CollegePublishing, 1987.Lawrence S.Oirlia Computers and information An introduction. MCGrawHill Company. 19986.Bahadar Shah and Allah Nawaz Data bases an expensive but indispensable Warehouse. GomalUniversity Journal of Research, accepted for publication, 1995.Bahadar Shah and Allah Mawaz, on line processing the crescendo of MIS? > Guar, accepted forPublications, 1995.Robert Stultifies & Mary Summer. Management information systems (the Managers View) IRWINHomewood 60430/Bostan, 1989.

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Manogm,managmentManagment

Dera ismail khanGomal

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computer in mgt

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