The store has implemented a vertical decentralisation; the senior management has handed the power to make certain decisions down the hierarchy of the organisation. The middle managers have more control and responsibility to make decisions and this is simply because staff lower down the chain have a greater understanding of the environment they work in and the people (customers and colleagues) that they interact with. This knowledge and experience enables them to make more effective decisions than senior managers.
2.1 Information Flows and Processes
The formal information generally flows from higher to lower level. Commands, instructions, plans and delegated tasks are passed down the line management system through supervisors and managers to associates.
There are about 2-3 notice boards in the lounge area as a way of communication between management and staff. Any new promotions, or such information from the head office e.g. new tagging method, new staff etc is informed via these notice boards.
There are monthly meetings for which associates are obliged to attend. General issues are discussed in the meeting. The management keeps details of the meeting stored on a computer and the main issues discussed are put up on the notice boards and it is updated after every meeting.
The store uses “Open Door Policy” to ensure that everyone is treated in a fair and equitable manner; the associates have the opportunity to speak openly bring up ideas and any concerns or issues they may have. An associate can talk to their immediate manager, their manager’s manager or a senior manager.
Figure 1.2 shows how the information needs at the three levels vary in terms of information type, its use and the role of the users within the store.
Business processes are the ways in which an organisation coordinate and organise activities, information and knowledge in order to produce its products/services.
This particular store does not have a different department for payroll, human resources etc. Everything this is carried out by the management team. The business processes are as follows:
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Payroll – there is a “hand punching” system being used which is connected to a system. As soon as an associate comes in for work, he/she has to put their hand on a machine and enter their ID number.
Therefore, the process includes identifying the associates, their personal details, rates of pay and calculating employee earnings and tax payments.
Figure 1.3 shows a simple drawing of how the system works.
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Human resources – business processes include management hiring new employees (includes managerial staff) and evaluating job performance of the associates.
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Sales and Marketing - business processes include identifying customers, making customers aware of the product, and selling the product.
2.2 Information Systems
Information systems are increasing important simply to stay in business and be a source of competitive advantage. In my store, there are 2 computers which are networked, therefore all the information is shared.
The first computer uses a system called a Cronus System; the system is used for storing employee details, payroll details, hours worked by employees and national insurance details. It also has a back-up copy of employee details in a folder which is stored in a filing cabinet.
The second computer records details of all the “scamping” (term used for marking down all the items for clearance) done throughout the week. It is done using a small hand help machine which is connected to this computer system.
Transaction Processing Systems (TPS)
“Transaction processing systems (TPS) are the basic business system that serves the operational level of the organisation.”
In this store, the way in which the data for the TPS, is obtained is through the tills. As soon as an item(s) is purchased, its details are gone straight into the Cronus System. Like any other retail store, all the items have a price label with a barcode which is scanned at the tills. The barcode once scanned tells the cashier the category from which the product is (e.g. homeware etc), the style number and the price. All this data is then sent to Head Office.
Transaction Processing Activities for the store:
Figure 1.4 shows the transaction processing activities that are carried out in the store.
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Data Collection – data is captured and gathered to complete one or more transactions. This is done using the scanners at the tills.
- Data Editing – the associate checks data (price) for validity. If the product has a switched ticket, the associate has to get it double-checked and get the right price.
- Data Correction – the associate then re-enters the mis-keyed/mis-scanned data that was found during the data editing.
- Data Manipulation - the process of performing calculations and other data transformations like classifying data and sorting files.
- Data Storage – the transaction data is stored in TPS.
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Document Production - reports and outputting records are then created. Output can be printed on paper (hard copy) or displayed on the screen (soft copy).
2.3 Appropriateness of the new systems
After analyzing the information flows within the store and observing the way in which the store operates, I think that the store’s structure is inappropriate. As in theory, in a hierarchical structure, the operational staff would have to go through a number of people before going to senior management. Whereas in this store, my line manger for example can go straight to the senior manager if he/she has a query without reporting to their line manager.
As mentioned before, middle management has the power of making certain decisions. For this reason the structure in store according to me is a decentralized structure. According to me, the store’s structure should be a flat structure and not tall.
A flat structure I think is best suited to the store due to many reasons:
- Senior managers have the time to concentrate on important decisions.
- Decision making is a form of empowerment. This increases motivation and therefore means that associate output increases.
- Empowerment enables departments and their associates to respond faster to changes and new challenges.
Interviewing my manager allowed me to learn that the data generated by the TPS is used by the head office for a number of different purposes such as planning and scheduling. He mentioned the types of reports that are generated from this data include:
- Information about the organisation and where might they target specific promotions and campaigns.
- Information about specific products – which products might benefit from special promotions.
Therefore, the TPS (information system) currently used in the store is appropriate since it meets the needs of this store in particular as well as the whole organisation.
3.0 Conclusions and Recommendations
After analysing the store’s organisation structure, I have come to the conclusion that the current structure is inappropriate. A flat structure is suitable and recommend that they implement it as it meets the organisations’ needs.
The information flows show that the structure is inappropriate since an associate does not have to go through a different number of managers before getting in contact with the senior manager.
Current information flows are effective as there is strong communication between associates and the management. This creates a relaxed atmosphere and makes each associate feel important and therefore, increases their work productivity. Even more because they are informed about all the changes which take place and are always encouraged to bring up new ideas and make suggestions on what could be improved about the store.
The current information systems (TPS) used by the store has proven to be effective in terms of short, medium and long range activities as it supports the function of the management, management decision making and the store’s day-to-day operations.
The senior management and middle management have sound experience and have worked in different branches before; thereore they are very efficient in the way they carry out their duty, and make sure that the information flows are as effective as possible. Therefore, a new system is not recommended.
Bibliography
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Derek Rollinson, Aysen Broadfield, Organisational Behaviour and Analysis, An Integrated Approach, Second Edition, 1998
- Patrick G, McKeown and Robert A Leitch, Management Information Systems, Managing with Computers,
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Avison David, Shah Hanifa , The Information Systems Development Cycle: A First Course in Information Systems, McGram-Hill, 1997
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Alter Steven, Information Systems, A Management Perspective, Addison-Wesley Publishing company, 1992
References
Kenneth C. Laudon, Jane . Laudon, Essentials of Management Information Systems, Tranformaing Business and Management, 3rd Edition, Prentice Hall, 1999
Kenneth C. Laudon, Jane . Laudon, Essentials of Management Information Systems, Tranformaing Business and Management, 3rd Edition, Prentice Hall, 1999
