Leadership and Management Structures - Process

Question: Discuss about the Leadership and Management Structures, Process . Answer: Introduction Leadership is an important function of the management in which both the roles are extremely related to human interactions. The managers are expected to perform decision making activities on a regular basis. A decision needs to be based on the assessment of alternatives, outcomes and uncertainties (Hopfe Augenbroe and Hensen 2013). The decision should be based on information derived from the organizational data gathered. This is obtained from the various sources such as Management Information System (MIS), Decision Support System (DSS), Executive Information System (EIS) and Executive Support System (ESS) (Leidner 2016). These tools are used when there is a need to make decision regarding a policy. It also helps the managers for proper planning and the implementation of the same (Hopfe Augenbroe and Hensen 2013). This report would discuss about these management tools used in the management process in the organizations. The impact of technology on the organizational functioning is disc ussed. The reasons for greater adoption of technology for effective leadership is discussed in detail. The company selected for the purpose of analysis is Myers, which is retail department stores, based in Australia. The company background is discussed so that a detailed picture can be gained regarding the organization. The existing business problems and the current issues of the company are discussed. This report would broaden the definition of information systems relevant to the modern organizational context. The MIS refers to the management information system which comprises of computer based tools which assist the managers in their everyday functioning (Kerzner 2013). It provides technological tools to the managers so that they can improve their efficiency in their strategic decision making (Hopfe Augenbroe and Hensen 2013). This tool connects several other areas such as informatics, information technology, computer systems, e-commerce and others (DeLone et al. 2016). These tools help the manager in gaining an overall insight into the business affairs and maximize the return on investments in various domains related to equipment, personnel and the business processes. The MIS are produced regular scheduled reports which are based on the extraction of organizational data (DeLone et al. 2016). The data collected is being presented to the operational level managers as well as senior level managers for making structured decisions. The decision support system or DSS are the computer program application which is used for the purpose of supporting managers for their problem solving and formulating situation based decisions (Power Sharda and Burstein 2015). This tool is being used by the higher management and middle management tools for finding solutions to structured as well as unstructured decision issues (Power Sharda and Burstein 2015). There are several components of decision support system such as decision interface, modelling software, information base and the database (Bonczek Holsapple and Whinston 2014). The Executive Information System (EIS) is an efficient tool that enables quick access to the users for viewing or using the summarized reports necessary for understanding the situations of the organization (Yu et al. 2015). The reports are being collected from all the departments and organizational hierarchy. The collected data is being compiled in order to give a broader picture to the department heads or the senior management (Yu et al. 2015). The EIS provides convenient access to the external as well as internal information which are directly or indirectly related to the organizational goals. The executives can compare, analyze and highlight the crucial trends so that they can easily identify the problems or opportunities (Yu et al. 2015). It focuses on the easy to use user interfaces and utilizes graphical displays for conveying the information. The Executive Support System or ESS is widely-used reporting software which is used by the executive level managers for quick access of the company reports concerning recruitment, cost accounting, billing and scheduling (Mishra 2013). There are analytics tools involved in this system which is responsible for prediction of performance outcomes by the utilization of input data. ESS provides expected outcomes which help the executives for gaining quick reference to facts concerning vital organizational decisions (Mishra 2013). Importance of information system The information system is an important component of the organizations since it is considered as an important asset of the organization (Davenport 2013). The information helps the organizations to identify the need for the creation of new products or services (Davenport 2013). The information is also helpful in determining the correct marketing practice used by the company. The decision of market penetration or acquiring new markets can be done by using the information system used by the organization (Davenport 2013). The importance of using information system in the organizations is defined below- Reduction in operating costs- The information system would enable the company to maintain proper records of the organizational data regarding equipment, office space, purchases, recruitment, compensation structure and others (Harper 2015). This helps the organizations to curb the excessive operating cost of the company. Control the growth as well as creation of records- It is important to formulate efficient information system that addresses the creation of the records as well as the retention of the same (Davenport 2013). It is better than the paper records since they are easy to store and are highly effective. Improvement of productivity and efficiency- In the case of paper records, a lot of time is being spent on manual retrieval and there are records that go missing or lost (Jervis and Masoodian 2014). This issue is being eliminated by the information system which increases the efficiency and the productivity of the employees (Jervis and Masoodian 2014). The easy retrieval of the crucial information helps the organization to increase its productivity (Jervis and Masoodian 2014). Impact of technology on decision-making The decision making is one of the most important activities in a business. The decision-making activity requires the utilization of technology in various aspects (Hosack et al. 2012). The technology tools such as Artificial Intelligence (AI) system or the decision support system combine together to create meaningful information through the use of OLAP (Online Analytical Process) (Hosack et al. 2012). The technology impacts the decision-making activity in the following ways- Speed- It is important to process huge amounts of data so that necessary information can be extracted from them (Hosack et al. 2012). The decision maker can ask a variety of questions based on the information system and this happens at very fast speed (Lauer Peacock and Graesser 2013). The managers need to get hold of the necessary information at very fast pace so that they can facilitate the decision making process. Data processing- Technology would foster the data mining skills of the managers by computerizing the decision making capabilities of the organization (Provost and Fawcett 2013). The technological facts, figures, graphs and the tables enable the managers to make quick decision making (Provost and Fawcett 2013). Group decision making- The organization consists of several groups or teams that require performing quick decision making activities in order to support the organization in its day to day functioning (Antunes Zurita and Baloian 2014). The group decision making activity (GDSS) would support the formulation of the solutions for current problems (Antunes Zurita and Baloian 2014). GDSS would integrate the capabilities as well as telecommunications of a team so that a decision can be taken. The group deals with complex problems and hence there is a need of making structured decisions. Collaboration- The managers are required to exchange data with other departments and hence a high degree of data collaboration is required (Antunes Zurita and Baloian 2014). Technology enables the managers to use applications such as teleconferencing, electronic mail, intranets, group ware and document management systems. Access to data- The managers are required to gain access to the data at the shortest possible time. The IT tools must provide the managers access to important data and must be able to process them at rapid speeds (Antunes Zurita and Baloian 2014). The IT tools help the managers to access the data whenever they are and whenever they require doing so. Company Background Myers Holdings Pty Ltd is one of the largest departmental store chain based in Australia (Myer 2016). It was founded in the year 1900 and its headquarters is located at Melbourne, Australia (Myer 2016). The founder of this company is Sidney Myer and the store has its presence in more than 67 locations in Australia (Myer 2016). The company is reputed as the largest departmental store in Australia in terms of number of stores as well as revenues (Myer 2016). The primary product range of the company includes womenswear, childrens wear, menswear, beauty, cosmetics, fragrances, footwear, toys, accessories and electrical goods (Myer 2016). The primary competitor of the company is David Jones department chain (Myer 2016). The annual operating income of the company is AUD 113.5 million and net income of the company was AUD 60.5 million in 2016 (Myer 2016). The company has roped Ex-Miss Universe model Jennifer Hawkins for endorsing the retail chain (Myer 2016). The brand also engages several other big personalities as their brand ambassadors. Issues and business problems There are serious issues with the operation and the functioning of Myers which is a matter of concern for the senior management. The company was merged with Coles Supermarkets to form Coles Myer (Seddon et al. 2012). However, the company was separated from Coles in the year. This caused a huge drop in the market share of the company. The loyal customers of the company were not satisfied by the frequent policy changes of the company which resulted in a sharp decline in the sales of the products (Seddon et al. 2012). There was a decline in both the offline and the online sales. This turmoil has also caused a large number of employees to resign at the same time. There was lack of salesperson in the stores which further agitated the customers (Seddon et al. 2012). The company had lack of planning which resulted in the reduction of the operational efficiency in the retail environment. There was lack of information system which reduced the operational efficiency of the company. The company did not use advanced information technology tools in their regular functioning. Recommendations It is important to focus on the weaknesses of the company so that the service gaps can be reduced. It is important to introduce advanced technology measures in their day to day operations of the company. The introduction of MIS, DSS and EIS would help the company to accumulate all the facts as well as figures and compile them in a report. The executives as well as the senior management would be able to take decisions at a fast rate. The company should undertake adequate measures to enhance the customer satisfaction rates. An adequate number of employees should be recruited so that the customer satisfaction levels can be improved. The company must focus on increasing the market share of the company and increase the sales of the company. It should adopt extensive promotion activities in order to enhance the brand image of the company. Conclusions Leadership and management are vital processes which determine the success of the organizations. The managers need critical data, information so that they can gain insights into the current organizational situation. This report analyzes the various information systems used by the organization such as Management Information, Executive Information System, Decision Support System and others. All the information systems are analyzed in detail from an organizational point of view. The importance of the information system in modern organizations is discussed. The information system impacts the functioning of the organizations and detailed explanation has been done on the same. The business issues in Myers are discussed along with the company background. The concluding part of the report identifies the recommendations for improving the business issues of the company. This report would broaden the understanding of the various types of information system used in the organizations and their rel ative importance of the same. This report would present the future researchers with a foundation to perform study on information technology usage in the organizations. 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