G.S.

Gupta

PCMS, Narayangarh

Why do we need Information System

Three powerful world wide changes have been altered the environment of business.
1.
the emergence and strengthing of the global economy.
2.
the transfer of industrial economy and socities into knowledge and
information based service economy.
3.
the transfer of the business enterprises.
Globalization
It contains the following factors
Management and control in global market place
Competition in the world markets
Global work group
Global Delivery System
Gloabalization of the world industrial economy greatly enhance the value of
information to the firm and offer new opportunities to the business. Information
system provide the communate and analytic power that firm need to conduct the
trade and managing the business on the world scale.
Transformation of the industrial economy
It contains the following factors
Knowledge and information based economy
Productivity
Leadership
Time based competion
Shorter product life
Limited employee knowledge based
Transformation of business enterprises
It contains the following factors
Decentralizatoin
Location independent
Low transaction and coordination costs
Empowerment
Collaborative work and team work
Information system
It is defined as the technically as a set of interrelated components that collect process,
store and distribute information to support decision making and control in an
organization . It also support in decision makng , coordination and control, information
system may aso help manager and workers analyze problem visualize complex sbjects
and create new products.

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It contains the information about people, places and things within the organization or in
the environment surrounding it. Here information means the data that have been shaped
into a form that is meaningful and useful for human beings while data are streams of raw
facts representing events occurring in organization or the physical encironment before
they have been organized and arranged into a form that people can understand and use.
Three activities takes place into the information system, these activities are Input,
processing and output.
Input collects the raw data with in the organization or surrounding.
Processing converts this raw input into a meaningful form
Output transfers the processed information to the people or activities where it will be
used.
Information system also require feedback with is output that is returned to appropriate
members or the organization to help them evaluate or correct the input stage.
Customer

Organization

Suppliers

Information System
Input

processing

Output

Feedback

Information systems are more than the computers. Using information system effectively
requires an understanding of the organization, management and information technology
shaping the system. All can be described as the organizational and management solution
to challenges posed by the environment.
Information system contains the three parts.
Organizatio
n

Managemen
t
Informatio
n System

Technology

Organization
The key element of organization are its people , structure, operating procedure,
politics and culture. It takes the input from the environment and process them into

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output. The organization worked as the standard hierarchy and formal standard operating
procedure(SOP).
SOP are the rules for accomplishing the task that have been developed over a long time.
There rules guide employees in a variety or procedures fro writing an invoice to
responding to complaining customers.
It requires many kinds of skills and people. In addition to managers, Knowledge worker
such as engineer, doctor etc. who design the product and services , Data worker who
process and organization paper work. such as secretaries , clerks etc. Production and
service worker such as machinists, assembler etc who produce the product.
Major organizational functions are
Sales and marketing
Manufacturing
Finance
Accounting
Human Resources
Each org. has a unique set of culture and fundamental set of assumptions , values, and
ways of doing things that has been accepted by most of its members
Management
They perceives the business challenges in the environment , they set the organizational
strategies for responding, they allocate the human and financial resources to achieve the
strategy and coordinate the work.
There are different models for the management.
Classical model of management
It describes, what managers do. Which was a largely questioned for more than 70 years
which contains the five terms
1.
what manager do when they plan
2.
How do they actually decide thing
3.
how they control the work
4.
How they behave
5.
What they need
So The management function for these models are

Planning
Organizing
Coordinating
Deciding
Controlling

Behavioral model of management

It states the actual behavior of the management appears to be less systematic , more
informal , less effective, more reactive. It contains the following activities
High volume and high speed work
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Variety , fragmentation,
Issue preference current
Cotacts
Strong preference of verbal media
Control of agenda

Managerial role
These are the expectation of activities that managers should perform in an org.
Interpersonal Role
When the mangers acts as the figureheads for the org. when they represent their
company to the outside world and perform the symbolic duties such as representatives
Infromation Role
They acts as the nerve center of the org. receives most up-to date information and
redistributing it to those who need to aware it.
Decisional Role
They acts as entreprenures by initiating new kinds of activities, handle disturbance ,
allocate resources and negotiate conflicts.
Information Technology
It is one of many tools available to managers for coping new changes. It is glue
that handle the organization together. It is the instrument through which the management
control and create.
It contains the different parts.
1.
Computer Hardware
It is the physical equipments used for input, processing amd output
activities in the information system. Such as processing unit, storage devices, and
the physical media to link these devices together.
2.
Computer Software
It contains the set of sequence of instruction that can control and
coordinate the hardware components in the information system. It is the code
which can complete the specific task.
3.
Storage technology
It contains both type of media for storing data such as magnetic tape, disk,
and the software governing the organization of data on these physical media.
4.
Telecommunication Technology
It contains both physical hardware and software to transfer the data from
one physical location to another.
Approaches to the Information system
There are two types of approaches
1.
Technical approach
It emphasized the mathematically based normative model used the study the
Information system as well as the physical technology and the formal
capabilities of the information system. It disciplines in the computer science,
management science and operation research. Computer science provide the
theory of computability , method of computation , and method to store the
data. Management science provide the method for decision making and

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management. Operation research provide the method to optimize the selected

parameter of org. such as transportation, assignment etc.
2.
Behavioral Approach
The growing part of information system is concerned with this approach. It
disciplines in the sociology, politics and the psychology. Sociologist
focused the impact of information system on the group, organization and
society. Political science investigate the political impact and use of
information system. Psychology is concerned with the individual response to
information system and models for the human reasoning.
Types of information syetem
There are four main types of information system serving different organizational
level.
1.
operational level system
It supports operational manager to keeping track of the elementary
activities and transaction of organization such as receipts, cash deposits
etc. The principle purpose of this system is to answer routine question and
to track the flow of transaction through the organization
2.
Knowledge level system
It supports both data and knowledge workers. Its purpose is to help the
business firm integrate new knowledge in to the business and also help in
the control flow of paper work.
3.
Management level system
It is designed to serve the monitoring, controlling, decision making, and
administrative activities of middle manager. It principle questions are
Are things working well.? . It also used to compare the current days
output with the output of a month or year ago.
4.
Strategic level system
It helps the senior manager to tackle and address strategic issues and long
term trends both in firm and in external environment . Its principle
concern is matching changes in the external environment with the existing
organizational capacity.

Strategic
level

Senior
managers

Mgmt. level

Middle
manager

Knowledge
level

Knowledge and data

workier

Operational
level

Operational Manager

Sales &
Mkting

Manufa
cturing

Finance

A/cing

Human
Resources

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PCMS, Narayangarh

Computer literacy
Computer literacy is the knowledge and ability to use computers and technology
efficiently. Computer literacy can also refer to the comfort level someone has with using
computer programs and other applications that are associated with computers. Another
valuable component of computer literacy is knowing how computers work and operate.
Having basic computer skills is a significant asset in the developed countries.

Computer literacy in the first world

Computer literacy is considered to be a very important skill to possess while in the first
world. Employers want their workers to have basic computer skills because their
company becomes ever more dependent on computers. Many companies try to use
computers to help run their company faster and cheaper.

Aspects of computer literacy

Aspects of computer literacy include:

what is a computer

what are its limitations

what is a program (not necessarily how to program)
what is an algorithm
what is computable
what a computer cannot do
why computers cannot produce random numbers
some seemingly simple problems are not
concurrency and issues with shared data
Reduce computer literacy needs with Desktop Search
all computers have the same computing ability with differences in memory
capacity and speed
performance depends on more than CPU clock speed

understanding the concept of stored data

what are the real causes of "computer errors"
the implications of incorrect (buggy) programs
the implications of using a program incorrectly (garbage in, garbage out)
issues rising from distributed computing
computer security

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social implications/aspects of computing

trojan horse (computing), computer virus, email spoofing, URL spoofing,

phishing, etc ...
what to do when a security certificate is questioned
password creation (how to avoid bad ones)

identifyingcritical assessment of internet sources

criminal access to financial databases

keyboarding, mousing (using input devices)

plugging in and turning the computer on
using/understanding user-interface elements (e.g., windows, menus, icons,
buttons, etc.)
Composing, editing and printing documents

Information Literacy
Information Literacy is the ability to identify what information is needed, understand
how the information is organized, identify the best sources of information for a given
need, locate those sources, evaluate the sources critically, and share that
information. It is the knowledge of commonly used research techniques.

IMPORTANTANCE OF INFORMATION LITERACY

Information literacy is critically important because we are surrounded by a growing
ocean of information in all formats. Not all information is created equal: some is
authoritative, current, reliable, but some is biased, out of date, misleading, false.
The amount of information available is going to keep increasing. The types of
technology used to access, manipulate, and create information will likewise expand.

USE OF INFORMATION LITERACY SKILLS

Information literacy skills are used for academic purposes, such as research papers
and group presentations. They're used on the jobthe ability to find, evaluate, use
and share information is an essential skill. Consumer decisions, such as which car or
vacuum cleaner to purchase, are critical. You'll also use these skills by participating
fully in a democratic society as an informed citizen by understanding issues and
voting.

Information system and org. Structure

It built by the arrangement of organizational subsystem. The org . structure I built on
four basic principles
1.
Hierarchy of authority
The authority with the individual in the org. The degree and the strength of authority
depends on the level at which a person is holding the position. It is the basis of
command on control of resources. , the risk of business, and the decision making power

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to manage the risks and reward. When this authority is distributed in a vertical order in
terms of level , the organization is built on the hierarchy of authority.
2.
Specialisation
It can be decided in the number of ways, arranging all similar and associated tasks under
one head. For example an organination can be structured on specialization as
manufacturing , sales and marketing etc.
3.
Standardisation
It is to make a person org. independent whereas the interaction between the individuals
in the organization is minimum. The people work on the basis of rules , procedure,
system and policies. If the degree is very high than a person can supervise more number
of people .
4.
Centralisation
It refers to the location or position where the decision making is localized.. In a highly
centralized organization the decision making is at the top.and in a decentralized
organization it delegated down the line in the organization hierarchy.. When business
risks are high and difficult to manage then the organization is emerges as centrailized.
Basic model of organization

There are four modification in the basic model of organization

1.
functional Organization
It is most suitable where the organization business can be split into clear division of
activity and all the equally important. For example the orgamization can be functionally
organized into marketing, finance, manufacturing etc. The strength of the people and its
hierarchy is depend upon the size and number of activities,. Decision making is done at
the functional head. A decision affecting other function of the business is referred to the
top management . The information flow from top to bottom and in reverse order . But the
information can not flow across function.
It is most suited where each function is a speciality and calls for an expertise in the field
and where coordination is of a very low order and can be handled easily through the
management process.. All the government department and agencies are organized in the
functional principle.
Managing Director
Marketing

Manufacturing

Finance

Personnel
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PCMS, Narayangarh

2.
Product/market/service organization
When organization grows large in turnover and strength and when the decision making
relates to either the product or the market or the service then the structure built on one of
these factors.In this structure total responsibility is rest on the head. And the people is
reported to the product head. The decision making is faster and centralized. The
interfunctional conflicts are avoided resulting the speedy progress. In this the people
work more for product than the corporate goals.. In this manpower requirement is higher
ad the people develop specialization in the specific technology and management.
Managing Director
Product A

Manufacturing

Product B

Product C

purchase

Sales

Finance

3.
Project organization
It the special case of product organization where the common services like finance ,
purchase etc. are organized at the same level. But resources are allocate to the project
manager and authority given to him. This type of structure is used to make quick
decision for project control in term of cost, resource and time.In this, the activity is one
at a time and ;has implications on the subsequent activities in the project.
Managing Director
Project division A

Design
Erection

commisio
n

Project division B

Design
Erection

Product C

commisio
n
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PCMS, Narayangarh

Matrix organization
In the above structure the communication can be done in to the hierarchy and lateral
communication is not permitted. But in the matrix organization the vertical as well as the
lateral communication is permitted. It integrate the functional responsibility with the
product responsibility So it is the combination of the product and the functional
structure.
Managing Director
Manufacturing

Finance
Fi

Personnel
Fi

Product .
Mgr A

Production
Mgr A

Finance. Mgr
A

Personnel
Mgr A

Product .
Mgr B

Production
Mgr B

Finance .
Mgr B

Personnel
Mgr B

Ethics and Information System

It refers to the principle of right and wrong that can be used by the individuals acting as
free moral agents to make choices to guide their behavior . Information system and tech.
poses the problem for the individuals as well as the societies because they create the
opportunity to change in the society.
With the new IT is will be possible to decentralize the power in an org. , invade the
privacy of employee while you improve service to the customer, reach in the global
market and causes the widespread unemployment, create the new product to eliminate
the old one and employment of the people who make that product.
So by introducing the IT several problems will be occur. Among all five major problem
are
1.
property rights and obligation
2.
Information rights and obligation
3.
System quality
4.
quality of life
5.
Accountablity and control

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G.S.Gupta

PCMS, Narayangarh

Basic concept of Ethics

1. Responsibility
It is a feature of individual which means that you accept the potential cost, duties
and obligation for the decision you make.
2. Accoutability
It means that mechanisms are in place to determine who took responsible action,
who is responsible
3. Liability
It is a feature of political system in which a body of law is in place which permit
individual to recover the damages done to them by other actors or organization
4. Due process
It is a process in which laws are known and understood and there is an ability to
appeal to higher authority to ensure that the laws are applied correctly.

Information Rights.
(Privacy and freedom in an information society)
It is the claim of individual s to be left alone, free from the interference of other
individuals or organization . Privacy also involved at the workplace. IT and information
system threaten individual claims to privacy by making the invasion of privacy cheap,
profitable, and effective.
Due process is key concept which requires a set of rules which clearly defines how the
information about individual will be treated and what appeal mechanism are available.
It include the following issues
Ethical Issue
It is as follows: Under what condition should you invade the privacy.? What legitimates
intruding into others.?
Social Issue
It include the development expectation of privacy . In what areas of life should we as a
society encourage people to they are in private territory as opposed to public view .?
such as in which are they can use their mobile phone .
Political issue
It concern with the development of statutes which govern the relation between record
keepers and individuals.
Property Rights (Intellectual property)
It is considere to be the intangible property created by the individuals and is subject to a
variety of protection under three different legal traditions which are as follows
1. Trade Secret
Any intellectual product or work such as a formula , device etc, can be
classified as a trade secret . Trade secret laws grant a monopoly on the ideas behind a

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work product . It protect the actual ideas in a work product and not just their
manifestation. To make the claim the creater or owner must take care to bind employees
and customers with non disclosure aggrements and to prevent the secret falling into
public domain.
Limitation
Virtually all the software of any complexity contains the unique elements
of some sort, so it is difficult to prevent the idea in the work from falling into the public
domain when the s/w is widely distributed.
2.
Copyright
It protect the creator of intellectual property against copying by others for
any purpose for a period of 28 years.
Limitation
It can protect the manifestation of work but not the idea. A competitor can
use your software and understand how it works and build his/her own software that
follow same concept with infringing on copyright.
. 3 Patent
It provide an exclusive monopoly on the ideas behind an inventions for 17 years..
It ensures that the inventor of new product receives the full financial and other reward to
their labour and yet still make widespread use of invention possible by providing detailed
diagram for those wishing to use the idea under the license from the owner of the patent.
The key concept behind patent law are originality, novelty and inventions.

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