Article

Management Misinformation Systems

Management Science (Impact Factor: 2.52). 01/1968; 14(4):147-147. DOI: 10.1108/eb000823
Source: RePEc

ABSTRACT Five assumptions commonly made by designers of management information systems are identified. It is argued that these are not justified in many (if not most) cases and hence lead to major deficiencies in the resulting systems. These assumptions are: (1) the critical deficiency under which most managers operate is the lack of relevant information, (2) the manager needs the information he wants, (3) if a manager has the information he needs his decision milking will improve, (4) better communication between managers improves organizational performance, and (5) a manager does not have to understand how his information system works, only how to use it. To overcome these assumptions and the deficiencies which result from them, a management information system should be imbedded in a management control system. A procedure for designing such a system is proposed and an example is given of the type of control system which it produces.

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    • "First, the amount of information required to be processed can be too large compared to the amount of time available to process it (Grisé & Gallupe, 1999; Schick et al., 1990). Second, the information may not be of high quality or relevance to the individual (Ackoff, 1967; Ho & Tang, 2001; Pollar, 2003). Third, the information has high entropy (Hiltz & Turoff, 1978), that is, it is not organized or formatted to be recognized as a significant or important part of the information processing context (Ho & Tang, 2001; Jones, Ravid, & Rafaeli, 2004). "
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    • "However, although this open and honest exchange of information may lead to greater transparency, awareness and coordination between suppliers and customers (Arshinder and Deshmukh, 2008; Lamming et al., 2001; Martinez-Olvera, 2008), it also carries costs. These costs include the information management costs of gathering, formatting, recording, maintaining and transmitting the information, and the installation and running costs of the IT system that supports these activities (Sahin and Robinson, 2002; Gattiker and Goodhue, 2004; Kelle and Akbulut, 2005; Wu et al., 2007; Bartezzaghi and Verganti, 1995; Ackoff, 1967). The organisation that receives these information flows must also decide how to react to them (giving rise to more costs associated with recording, possibly re-formatting the information , and revising production and, possibly, delivery schedules for other customers) in order to accommodate the changes that have been requested. "
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