Q. No.

2
The managing of an organization and leadership method has a huge effect on the working
atmosphere and the employees' inspiration. The progress of a finest leadership style and executive
skills that is the most proper to an organization is vital, having a key effect on its life duration. A
Manager's leadership style contributes frankly to the subordinates' incentive and work fulfilment, and
the work growth in the organization.
There are two types of leadership styles, one that is task-oriented and the other that is employeeoriented. A manager with a task-oriented style will have work results as his major concerns; and
therefore, he will enlarge rigid policy that would lead the subordinates into working their errands to
reach his preferred results. On the other hand, the manager with an employee-oriented behaviour will
be troubled with the employees' condition. This manager's objective is to improve the employees'
confidence and influence them on working jointly to help him in management and on ways to resolve
problems. There are three main types of leadership styles that shape all kinds of leaders. The three
types are the repressive, self-governing, and free-reign styles of leadership. The repressive style of
leadership would be measured the most task-oriented type, in which the manager carry out all the
management process without any consultations from subordinates. The self-governing leadership
style is more of a participative type of leadership. It is a two-way message leadership, in which
employees are allowed to add in the decision-making; however, the manager makes the final
conclusion. The handing over of power in this style of leadership is less federal and more
decentralized than in the repressive style. Employees feel more elastic, since they are allowed to alter
in the methods of accomplishing the errands and to donate in the decision-making. This changes the
working situation; making it an atmosphere with a lot of panel working. The free-reign style of
leadership is the most relaxed style, in which the employees have the complete liberty by having the
exactly of making the final management. When assigned tasks, they finish them using their preferred
method, making the final decision and addition any innovations. Model leaders follow the motivational
theories to improve the working atmosphere and to make the employees not only pleased, but also
highly forced.

Q. No.3
Discuss in detail the contribution of Taylor to the development of Management thought.

Scientific management concept

Scientific management concept is one of the principles of management and is also
known as classical theory. This principle is propounded by Fredrick Winslow Taylor
(F.W Taylor) the father of management. He was born in USA in 1856. He joined
Midvale steel company where he worked as a machine shop worker for two years as
gang boss for some years and as chief engineer at the age of 28.he also joined
Bethlehem steel company where he served for a long time. Later he devoted his
time to develop the concept of scientific management.

He noticed that there were much disorder and wastage of human as well as other resources
at work place. The managers and staffs had no concept about systematic and efficient
performance of task. And all were following traditional ways of doing work. So he tried to
remove these problems through the development of new concept. Thus the scientific
management concept was developed.
Contributions of F.W Taylor
While working in Midvale Company as a manager Taylor observed that employees were not
performing as per their capacity of productivity. And he considered that this condition was
occurring because of no care towards the waste. Taylor worked towards the experiments at
his work place to increase the workers efficiency so that maximum output could be
achieved by utilizing effort at maximum level.
1. Scientific task setting:- Taylor observed that the management does not know exactly
the works pieces of work- volume of works- which are to be performed by the workers
during a fixed period of time- which is called working day. In a working day how much work
is to be dome by a worker but be fixed by a manager and the task should be set every day.
The process of task setting requires scientific technique. To make a worker do a quantity of
work in a working day is called scientific task setting
2. Differential payment system:- under this system, a worker received the piece rate
benefit which will attract the workers to work more for more amount of wages and
more incentives would be created to raise the standardization of output to promote
the workers to produce more and perform more task than before and utilize waste
time to earn more wages.

3. Reorganization of supervision:- concepts of separation of planning and doing and

functional foremanship were developed. Taylor opines that the workers should only
emphasize in planning or in doing. There should be 8 foreman in which 4 are for planning
and 4for doing. For planning they were route clerk, instruction cord clerk, time and cost
clerk and disciplinarian. And for doing they were speed boss, gang boss, repair boss and
inspector.
4. Scientific recruiting and training:-staffs and workers should be selected and employed
on scientific basis. Management should develop and train every workers by providing
proper knowledge and training to increase their skills and make them effective
5. Economy:- efficient cost accounting system should be followed to control cost which can
minimize the wastages and thoroughly reduced and thus eliminated.
6. Mental revolution:- Taylor argued that both management and workers should try to
understand each other instead of quarrelling for profits and benefits which would increase
production, profit and benefits.

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Q.No. 3

F.W. Taylor contributed a number of principles and features of management thought that
adhered to his new concept of approaching management thought scientifically. He was one
of the founders of management thought theory and is considered the father of scientific
management. His ideas were developed and used for decades after the concept was
created.

According to Taylor
, scientific management means knowing exactly what you want
men to do and seeing that they do it in the best and cheapest
way.
Principles of scientific management. Taylor believed that scientific management consists of
a philosophy that results in a combination of four main principles. The first principle suggests
that management need to develop the best way to complete a job. It is the task of finding the
best method for achieving the objectives of a given job. The second principle states that
management must carry out a scientific selection of theirworkers and develop them through
proper management. Thirdly, management must carry out a scientific approach. That is, a
true science should be developed in all fields of work activity. The fourth and finalprinciple
states that there should be an elimination on conflicts betweenmethods and
men. Workers are likely to resist new methods and this can be avoided by using it as an
opportunity to offer more wages.
Features of scientific management. Taylor put forward a huge number of features of
scientific management. One was the introduction of the standard task which every worker
is expected to complete within a day. This task should be calculated through scientific
investigation and work study is essential. Taylor also suggested that tasks need to be
planned. In order forworkers to carry out this task every day, it will need to be planned
actively. A scientific selection and training of workers is another feature of scientific
management put forward by Taylor. This selection and training will contribute towards the
production activities.
Taylor is renowned for his research and work into management thought and scientific
management. His suggested principles and features have helpedmodel the
scientific approach to management.

Q.No 8
There are many ways to control and affect people, and power and authority are two ways which
are commonly used to influence and manipulate others. Whether it is in a personal capacity or in
a professional one, power and authority are exerted to make others respond accordingly.
In order to understand how one can have the influence to affect others, it is necessary to
comprehend what power and authority actually are and how they work.

Definitions

Power can be defined as the ability of a person or a group to influence the beliefs and actions of
other people, and to influence or control actions or events. Power is the possession or the ability
or the right to control the actions and performances of others either by authority or by other
means.
Authority is the right given to a person or a post to achieve particular objectives. It is the right to
get things done by others, to take decisions and give orders and get obedience from them. It
comes from the duties and responsibilities awarded to a position holder in any official structure.

Power vs Authority
Although power and authority stem from the same concept, they are both very different as they
contain deeper meanings. When we talk about leadership and influence, it becomes necessary
to differentiate power and authority in order to comprehend their true meanings and application.
The main difference between power and authority is the degree of control and influence they
offer to the possessor. While authority is the sanctioned right given to a person to get things done
in an official capacity, power is the ownership of authority and control to influence the opinions,
movements and behaviors of others.
Power has a wider scope and enables one to do what they want instead of looking out to see if
they are doing it the right way. It might not always be given, but it comes to people who are
experts in their field or have a significant amount of money and do not look up to anyone.
Authority, on the other hand, is the right given to a person to give orders to subordinates and get
things done by them. An official cannot perform his duties without adequate authority.

While a person will get authority only with some kind of position, either official or non-official,
power is something that comes with personality, charisma or personal attributes too. A company
president can order a change in design or a police officer might arrest an offender because they
have the authority to do so, but a person can exert his power of knowledge to influence the
thoughts and ideas of others and that person could just as easily be a middle school teacher or a
debater too.
A manager will get his authority from the higher authorities who will outline what he must do and
how he does it. Authority comes from hierarchy and designation while power is all-encompassing
and broad and does not depend on anyone. Either a person has power or either he has no
power. It comes from a higher level than authority and has an extensive approach.
Power is a further-reaching concept than authority and offers much more influence, control and
domination as it can be both personal as well as official, while authority is restricted to formal use
only in official organizations and offices. Authority can be taken away as it is official and not
personal and once a person is stripped of his title or designation, his or her authority comes to an
end. However, power cannot be taken away easily because it is personal and a person remains
powerful if he has money, for example, even if he has no designation to support him.

Comparison Chart
Power
Power comes from knowledge and expertise.
Power is the personal ability of a person to control or influence others.
Power does not come with rank or designation; a person is either powerful or not.
The scope of power cannot be written down or explained because it is too broad a concept.
Power is not dependant on levels as it is broader in context and has a more extensive approach.

Communication Barriers - Reasons

for Communication Breakdown
Communication is a process beginning with a sender who encodes the message and passes it
through some channel to the receiver who decodes the message. Communication is fruitful if
and only if the messages sent by the sender is interpreted with same meaning by the receiver. If
any kind of disturbance blocks any step of communication, the message will be destroyed. Due
to such disturbances, managers in an organization face severe problems. Thus the managers
must locate such barriers and take steps to get rid of them.
There are several barriers that affects the flow of communication in an organization. These
barriers interrupt the flow of communication from the sender to the reciever, thus making
communication ineffective. It is essential for managers to overcome these barriers. The main
barriers of communication are summarized below.

Following are the main communication barriers:

1. Perceptual and Language
Differences: Perception is
generally how each individual
interprets the world around him.
All generally want to receive
messages which are significant to
them. But any message which is
against their values is not accepted.
A same event may be taken
differently by different individuals.
For example : A person is on leave
for a month due to personal
reasons (family member being
critical). The HR Manager might be
in confusion whether to retain that
employee or not, the immediate
manager might think of
replacement because his teams
productivity is being hampered, the
family members might take him as
an emotional support.
The linguistic differences also lead
to communication breakdown.
Same word may mean different to
different individuals. For example:

consider a word value.

a. What is the value of this
Laptop?
b. I value our relation?
c.

What is the value of

learning technical skills?

Value means different in different sentences. Communication breakdown occurs if

there is wrong perception by the receiver.
2. Information Overload: Managers are surrounded with a pool of information. It is
essential to control this information flow else the information is likely to be
misinterpreted or forgotten or overlooked. As a result communication is less effective.
3. Inattention: At times we just not listen, but only hear. For example a traveler may pay
attention to one NO PARKING sign, but if such sign is put all over the city, he no longer
listens to it. Thus, repetitive messages should be ignored for effective communication.
Similarly if a superior is engrossed in his paper work and his subordinate explains him
his problem, the superior may not get what he is saying and it leads to disappointment
of subordinate.
4. Time Pressures: Often in organization the targets have to be achieved within a specified
time period, the failure of which has adverse consequences. In a haste to meet
deadlines, the formal channels of communication are shortened, or messages are
partially given, i.e., not completely transferred. Thus sufficient time should be given for
effective communication.
5. Distraction/Noise: Communication is also affected a lot by noise to distractions.
Physical distractions are also there such as, poor lightning, uncomfortable sitting,
unhygienic room also affects communication in a meeting. Similarly use of loud speakers
interferes with communication.
6. Emotions: Emotional state at a particular point of time also affects communication. If the
receiver feels that communicator is angry he interprets that the information being sent is
very bad. While he takes it differently if the communicator is happy and jovial (in that
case the message is interpreted to be good and interesting).
7. Complexity in Organizational Structure: Greater the hierarchy in an organization (i.e.
more the number of managerial levels), more is the chances of communication getting
destroyed. Only the people at the top level can see the overall picture while the people at
low level just have knowledge about their own area and a little knowledge about other
areas.
8. Poor retention: Human memory cannot function beyond a limit. One cant always retain
what is being told specially if he is not interested or not attentive. This leads to

communication breakdown.

Quantitative Techniques in Management

Q.No.1
Quantitative analysis is a technique used in order to analyze and understand the behavior of
certain financial instruments. It uses complex mathematical and statistical modeling for such
purposes as measurement, performance evaluation and valuation of a financial instrument,
or for simulating real world situations.
The main focus in which quantitative analysis has changed the current managerial world is
the way in which it is used to simulate real world eventsby use of a model. This allows a
scientific approach to making managerial decisions.
When approaching quantitative analysis there are 7 steps to be taken, as follows:
Define the problem
Develop a model
Acquire data for input
Develop a solution to the problem
Test the solution
Analyze the results taken from this
Implement the solution based on the results taken
Obviously, the main issue when using quantitative analysis is the collection of quality data to
be used as an input to the designed model.
More recently, quantitative analysis has become a common method in businesses as it
allows decisions to be made based on predictions and simulations created by the
quantitative analysis models. This takes some ofthe risk factor away from the decision being
made.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Question 1:
How has quantitative analysis changed the current scenario in the management world
today?

Answer
: Quantitative analysis requires the representation of the problem using a mathematical
model. Mathematical modeling is a critical part of the quantitative approach to decision
making. Quantitative factors can be measured in terms of money or quantitative units.
Examples are incremental revenue, added cost, and initial outlay.
Qualitative factors
in decision making are the factors relevant to a decision that are difficult to measure in terms
of money. Qualitative factors may include: (1) effect on employee morale, schedule and other
internal elements; (2) relationship with and commitments to suppliers; (3) effect on present
and future customers; and (4) long-term future effect on profitability. In some decisionmaking situations, qualitative aspects are more important than immediate financial benefit
from a decision. Different Statistical Techniques
Measures of Central Tendency:

For proper understanding of quantitative data, they should be classified and converted into a
frequency distribution. This type of condensation of data reduces their
bulk and gives a clear picture of their structure. If you want to know any specific
characteristics, of the given data or if frequency distribution of one set of data to be
compared with another, then it is necessary that the frequency distribution itself must be
summarized and condensed in such a manner that it must help us to make useful inferences
about the data and also provide yardstick for comparing different sets of data

real personal disposable income and relative weighted price index of scooters were used as
independent variable.
Time Series Analysis:
With time series analysis, you can isolate and measure the separate effects of these forces
on the variables. Examples of these changes can be seen, if you start measuring increase in
cost of living, increase of population over a period of time, growth of agricultural food
production in India over the last fifteen years, seasonal requirement of items, impact of
floods, strikes, and wars so on.

Index Numbers:
An index number is an economic data figure reflecting price or quantity compared with a
standard or base value. The base usually equals 100 and the index number is usually
expressed as 100 times the ratio to the base value. For example, if a commodity costs twice
as much in 1970 as it did in 1960, its index number would be 200 relative to 1960. Index
numbers are used especially to compare business activity, the cost of living, and
employment. They enable economists to reduce unwieldy business data into easily
understood terms.
Sampling and Statistical Inference:
In many cases due to shortage of time, cost or non availability of data, only limited part or
section of the universe (or population) is examined to (a) get information about the universe
as clearly and precisely as possible, and (b) determine the reliability of the estimates. This
small part or section selected from the universe is called the sample, and the process of
selections such a section (or past) is called sampling.
Example: Site selection process (quantitative and qualitative
factors)
While quantitative factors have been and will continue to be very important in the site
selection process, qualitative factors are also critical in order to ensure that the company
makes the best decision. What are the most important quantitative and qualitative factors
evaluated by site selection advisors and companies when making a decision regarding the
location of a new or expanded operation? The list will vary depending on type of facility (i.e.
manufacturing, logistics, research & technology, office), but most factors apply to all forms of
projects. Below is a summary of the most important quantitative and qualitative factors
considered by companies. Quantitative Factors
1.Property Tax Rates

2.Corporate Income Tax Rates

3.Sales Tax Rates

4.Real Estate Costs

5.Utility Rates

6.Average Wage/Salary Levels

7.Construction Costs

8.
Workers Compensation Rates

9.Unemployment Compensation Rates

10.
Personal Income Tax Rates

11.
Industry Sector Labor Pool Size

12.
Infrastructure Development Costs

13.
Education Achievement Levels

14.
Crime Statistics

15.
Frequency of Natural Disasters

16.
Cost of Living Index

17.
Number of Commercial Flights to Key Markets

18.
Proximity to Major Key Geographic Markets

19.
Unionization Rate/Right to Work versus
Non-Right to Work State
20.
Population of Geographic Area
Qualitative Factors
1.Level of Collaboration with Government, Educational and Utility Officials

2.Sports, Recreational and Cultural Amenities

3.

Confidence in Ability of All Parties to Meet Companys Deadlines

4.Political Stability of Location

5.Climate

6.Availability of Quality Healthcare

7.Chemistry of Project Team with Local and State Officials

8.
Perception of Quality of Professional Services Firms to Meet the Companys Needs

9.Predictability of
Long-term Operational Costs
10.
Ability to Complete Real Estate Due Diligence Process Quickly
Another important part of the site selection evaluation process relates to the weighting of the
key quantitative and qualitative factors. Depending on the type of project, factors will be
weighted differently. As an example, for a new manufacturing facility project, issues such as
utility rates, real estate costs, property tax rates, collaboration with governmental entities,
and average hourly wage rates may be weighted more heavily. By contract, for a new office
facility factors such as real estate costs, number of commercial flights, crime statistics,
climate and industry sector labor pool size may be more important. Every project is unique
and must be evaluated based upon its own individual set of circumstances.
Question 2:
What are sampling techniques? Briefly explain the cluster sampling technique.
Answer:

A sample is a group of units selected from a larger group (the population). By studying the
sample, one hopes to draw valid conclusions about the larger group. A sample is generally
selected for study because the population is too large to study in its entirety. The sample
should be representative of the general population. This is often best achieved by random
sampling. Also, before collecting the sample, it is important that one carefully and completely
defines the population, including a description of the members to be included. A common
problem in business statistical decision-making arises when we need information about a
collection called a population but find that the cost of obtaining the information is prohibitive.
For instance, suppose we need to know the average shelf life of current inventory. If the
inventory is large, the cost of checking records for each item might be high enough to cancel
the benefit of having the information. On the other hand, a hunch about the average shelf life
might not be good enough for
decision-making
purposes. This means we must arrive at a compromise that involves selecting a small
number of items and calculating an average shelf life as an estimate of the average shelf life
of all items in inventory. This is a

compromise, since the measurements for a sample from the inventory will produce only an
estimate of the value we want, but at substantial savings. What we would like to know is how
"good" the estimate is and how much more will it cost to make it "better". Information of this
type is intimately related to
sampling techniques
.
Cluster sampling
can be used whenever the population is homogeneous but can be partitioned. In many
applications the partitioning is a result of physical distance. For instance, in the insurance
industry, there are small" clusters" of employees in field offices scattered about the country.
In such a case, a random sampling of employee work habits might not required travel to
many of the" clusters" or field offices in order to get the data. Totally sampling each one of a
small number of clusters chosen at random can eliminate much of the cost associated with
the data requirements of management.
Question 3:

What is the significance of Regression Analysis? How does it help a manager in the
decision making process?
Answer:
Regression analysis is a powerful technique for studying relationship between dependent
variables (i.e., output, performance measure) and independent variables (i.e., inputs, factors,
decision variables). Summarizing relationships among the variables by the most appropriate
equation (i.e., modeling) allows us to predict or identify the most influential factors and study
their impacts on the output for any changes in their current values. Unlike the deterministic
decision-making process, such as linear optimization by solving systems of equations,
Parametric systems of equations and in decision making under pure uncertainty, the
variables are often more numerous and more difficult to measure and control. However, the
steps are the same. They are:
1.Simplification

2.Building a decision model

3.Testing the model

4.Using the model to find the solution:

It is a simplified representation of the actual situation

It need not be complete or exact in all respects

It concentrates on the most essential relationships and ignores the less essential ones.


It is more easily understood than the empirical (i.e., observed) situation, and hence permits
the problem to be solved more readily with minimum time and effort.
5. It can be used again and again for similar problems or can be modified. Fortunately the
probabilistic and statistical methods for analysis and decision making under uncertainty are
more numerous and powerful today than ever before. The computer makes possible many
practical applications. A few examples of business applications are the following:

An auditor can use random sampling techniques to audit the accounts receivable for clients.

A plant manager can use statistical quality control techniques to assure the quality of his
production with a minimum of testing or inspection.

A financial analyst may use regression and correlation to help understand the relationship of
a financial ratio to a set of other variables in business.

A market researcher may use test of significace to accept or reject the hypotheses about a
group of buyers to which the firm wishes to sell a particular product.

A sales manager may use statistical techniques to forecast sales for the coming year.

Case study

Please read the case study given below and answer questions given at the end. Kushal
Arora, a second year MBA student, is doing a study of companies going public for the first
time. He is curious to see whether or not there is a significant relationship between the sizes
of the offering (in crores of rupees) and the price per share after the issue. The data are
given below:
Size (in 108 39 68.40 51 10.40 4.40 crore of rupees) Price ( in 12 13 19 12 6.50 4 rupees)
Question You are required to calculate the coefficient of correlation for the above data set
and comment what conclusion Kushal should draw from the sample.
Answer: N X Y XY X
2
Y
2
1 12 108 1296 144 11664 2 13 39 507 169 1521 3 19 68.4 1299.6 361 4678.56 4 12 51 612
144 2601 5 6.5 10.4 67.6 42.25 108.16 6 4 4.4 17.6 16 19.36 TOTALS 66.5 281.2 3799.8
876.25 20592.08 6(3799.8) - (66.5)(281.2)
r
=
[
6(876.25) - (66.5)
2
[]
6(20592.08) - (281.2)
2
= 0.67
Conclusion: There is a positive correlation for the above set of data

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

What strategic role can information technology play in business process reengineering and
total quality management?
A.1. BPR and Information Technology Business Process Re-engineering has rapidly
developed towards a new management philosophy. The inherent business process
orientation changes the perspective of international management from a structural to that of
a process view. The re-engineering of business processes is only one aspect of the
management of business processes. In particular, the re-engineering of international
business processes needs special attention, because the multi-faceted structure of
multinational corporations increases the complexity of business processes, there by
influencing the options for redesign. Business Process Re-engineering has rapidly
developed towards a new management philosophy based upon predecessors like Total
Quality Management, Overhead Value Analysis, Kanban or Just-In-Time-Management.
Business processes can be re-engineered by redesigning the steps, by changing the logical
and temporal sequence of the steps, or by changing any other characteristics of the process.
The role of IT is discussed in contradictory way. Advocates of information systems favor the
view that the new technology is an enabler of process re-engineering. IT has to be monitored
constantly to determine whether it can generate new process designs or contribute to the
performance of a business process. The breakthrough of BPR is closely connected with IT,
which opens new dimensions of process reorganization. Moreover, those who take the
initiative in process improvement/redesign, influence the role of IT. If the data processing
department initiates the process change, then IT will have more of a generator function for
new process redesigns. If on the other hand, the top management sets off the change
process, then the process will be first restructured and later optimized through IT.
Business process reengineering (BPR) is the practice of rethinking and redesigning the way
work is done to better support an organization's mission and reduce costs. Reengineering
starts with a high-level assessment of the organization's mission, strategic goals, and
customer needs. Basic questions are asked, such as "Does our mission need to be
redefined? Are our strategic goals aligned with our mission? Who are our customers?" An
organization may find that it is operating on questionable assumptions, particularly in terms
of the wants and needs of its customers. Only after the organization rethinks what it should
be doing, does it go on to decide how best to do it.[1]

Within the framework of this basic assessment of mission and goals, re-engineering focuses
on the organization's business processesthe steps and procedures that govern how
resources are used to create products and services that meet the needs of particular
customers or markets. As a structured ordering of work steps across time and place, a

business process can be decomposed into specific activities, measured, modeled, and
improved. It can also be completely redesigned or eliminated altogether. Re-engineering
identifies, analyzes, and re-designs an organization's core business processes with the aim
of achieving dramatic improvements in critical performance measures, such as cost, quality,
service, and speed.[1]

Re-engineering recognizes that an organization's business processes are usually

fragmented into sub-processes and tasks that are carried out by several specialized
functional areas within the organization. Often, no one is responsible for the overall
performance of the entire process. Reengineering maintains that optimizing the performance
of sub-processes can result in some benefits, but cannot yield dramatic improvements if the
process itself is fundamentally inefficient and outmoded. For that reason, re-engineering
focuses on re-designing the process as a whole in order to achieve the greatest possible
benefits to the organization and their customers. This drive for realizing dramatic
improvements by fundamentally re-thinking how the organization's work should be done
distinguishes the re-engineering from process improvement efforts that focus on functional or
incremental improvement.[1]
The role of Information Technology
Information technology (IT) has historically played an important role in the reengineering
concept.[10] It is considered by some as a major enabler for new forms of working and
collaborating within an organization and across organizational borders[citation needed].

BPR literature[11] identified several so called disruptive technologies that were supposed to
challenge traditional wisdom about how work should be performed.

Shared databases, making information available at many places

Expert systems, allowing generalists to perform specialist tasks
Telecommunication networks, allowing organizations to be centralized and decentralized at
the same time
Decision-support tools, allowing decision-making to be a part of everybody's job
Wireless data communication and portable computers, allowing field personnel to work office
independent

Interactive videodisk, to get in immediate contact with potential buyers

Automatic identification and tracking, allowing things to tell where they are, instead of
requiring to be found
High performance computing, allowing on-the-fly planning and revisioning
In the mid-1990s, especially workflow management systems were considered as a
significant contributor to improved process efficiency. Also, ERP (enterprise resource
planning) vendors, such as SAP, JD Edwards, Oracle, PeopleSoft, positioned their solutions
as vehicles for business process redesign and improvement.

Q.No.2
For developing MIS, three approaches are used, viz., Top down approach, Bottom
upapproach and Integrative approach. Each of these is described below:
(i)
Top down approach
: The development of MIS under top down approach starts with thedefining of the objectives
of the organisation, the kind of business it is in, and theconstraints under which it operates.
The activities or functions for which informationwould be required are also identified. The
crucial strategic and tactical decisions are alsodefined and the decisions necessary to
operate the activities are specified. From theactivities or functions and the decisions to be
made, the major information requirementsare ascertained.This approach develops a model
of information flow in the organization, which acts as aguide for designing the information
system. By using the model of information flow,various information sub-systems may be
defined. Each subsystem comprises of variousmodules. The selection of a module for
developing system is made on the basis of the priority assigned to it.The various
subsystems and their modules are coordinated to achieve the objective of integration. The
information system so developed is viewed as a total system, which is fully integrated, rather
than as a collection of loosely coordinated subsystems. It is also evident from the
nomenclature that top management takes the initiative in formulating major objectives,
policies and plans in a comprehensive manner and communicates them down the line to
middle and supervisory management levels for translating them into performance results.
Managers other than those at top levels have little role in planning, they have to only
concentrate on implementation and daytodaycontrol.
(ii)
Bottom-up approach:
The development of information system under this approach starts from the identification of
life stream systems. Life stream systems are those systems, which are essential for the
daytoday business activities. The examples of life stream systems include payroll, sales
order, inventory control and purchasing etc. The development of information system for each
life stream system starts after identifying its basic transactions, information file requirements
and information processing programs. After ascertaining the data/information requirements,
files requirement and processing programs for each life stream system, the information
system for each is developed. The next step is towards the integration of data kept in

different data files of each information system. The data is integrated only after thoroughly
examining various applications, files and records. The integrated data enhances the
shareability and evolvability of the database. It also ensures that all programs are using
uniform data. Integrated data also provides added capability for inquiry processing and
adhoc requests for reports. The next step under bottom up approach may be the addition of
decision model and various planning models for supporting the planning activities involved in
management control. Further, these models are integrated to evolve model base. The
models in the model base facilitate and support higher management activities. They are
useful for analysing different factors, to understand difficult situations and to formulate
alternative strategies and options to deal them.
1. Approaches of ManagementInformation System {MIS}By Jatin Chhabra.
2. There are 3 different approaches ofMISA.Top-down approachB.Bottom-up
approachC.Integrative approach
3. Top-down approachUnder Top down approach we define the activities of the
organization,what kind of business it is in & under what constraints they it operates.In Top
down approach crucial strategic and tactical decisions are defined& necessary decisions to
operate the activities are specified.Top down approach develops a model of information flow
in theorganization which acts as a guide for designing the information system.By using the
model of information flow, various information sub-systems can be defined. Each sub
system comprises of various modules.The selection of a module for developing system is
made on the basis ofthe priority assigned to it. The various subsystems and their
modulesare coordinated to achieve the objective of integration.The information system
developed is viewed as a total system, which is
4. fully integrated, rather than as a collection of loosely coordinated subsystems.In Top
down approach management takes the initiative in formulatingmajor objectives, policies and
plans in a comprehensive manner andcommunicates them down the line to middle and
supervisorymanagement levels for translating them into performance results.Managers other
than those at top levels have little role in planning, theyhave to only concentrate on
implementation and daytoday control.
5. Bottom-up approachA bottom-up approach starts with the lowest-level management of
thehierarchy and proceeds progressively through higher levels of themanagement. Here we
identify the life stream systems. Life streamsystems are those systems, which are essential
for the daytodaybusiness activities. After identifying the basic transactions, informationfile
requirements and information processing programs we developinformation system for each
life stream system. Then we move towardsthe integration of data kept in different data files of

each informationsystem.The next step under bottom up approach may be the addition of
decisionmodel and various planning models for supporting the planningactivities involved in
management control. Further, these models areintegrated to evolve model base. They are
useful for analysing different
6. factors, to understand difficult situations and to formulate alternativestrategies and options
to deal them.
7. Integrative approachUnder Integrative approach we can overcome the limitations of the
abovetwo approaches when used objectively. Integrative approach permitsmanagers at all
levels to influence the design of MIS. Top managementidentifies the structure and design of
MIS suitable to the concern. Thisdesign is further presented to lower level managers for their
views andmodifications. The managers at the lower level are permitted to suggestchanges,
additions, or deletions and return the design with theirsuggestions to the top level for
approval.The revised design is drawn and evaluated by the top level and sent downagain in a
modified form for further consideration if required. Thisevaluation, modification and approval
process continues until a finaldesign is achieved, that is suitable for all levels.
8. So there it is, the 3 approaches ofManagement information system. Ifthis slide is useful,
the please shareit on your network.RegardsJatin ChhabraStudent - MBA