THE ROLE OF MANAGEMENT INFORMATION SYSTEMS IN
DECISION MAKING
ARIZONA STATE UNIVERSITY
CIS 235 - INTRODUCTION TO INFORMATION SYSTEMS
WEEK 5
PURPOSE OF DISCUSSION:
❖
Explain the importance of decision making in the company
❖
Explain the factors that influence the decision-making process
❖
Explain the types of decision making
❖
Explain the company's functional management information system
Introduction:
One of the most important functions in leadership is decision making, a leader most of
his time, attention, and thoughts are used to review the decision-making process. The higher a
person's position in organizational leadership, decision making becomes the main task that
must be carried out. The behavior and manner of leaders in decision-making patterns greatly
affect the behavior and attitudes of their followers, this will determine the performance of the
organization to achieve its goals.
Decision Making
Management Information System Etymologically the word decide comes from the Latin
prefix "de" which means "off", and the word caedo which means "to cut". This means the
cognitive process of "cutting off" as the act of choosing between several possible alternatives.
According to Max (1972), Decision making is commonly defined as choosing from
among alternatives.
Meanwhile, Shull (1972: 67) suggests that; decision making is a process of human
awareness of individual and social phenomena based on factual events and the value of
thinking, which includes the behavioral activity of choosing one or several alternatives, as a
way out to solve the problem at hand.
Decision making is the selection of certain alternative behavior (behavior) from two or
more existing alternatives. (George R. Terry in Iqbal Hasan, 2002: 9). Decision making is a
systematic approach to the nature of the alternatives faced and taking action which according
to calculations is the most appropriate action. (S.P. Siagian in Iqbal Hasan, 2002: 10)
Decision making is a process used to select an action as a way of solving problems.
According to Max (1972), Decision making is commonly defined as choosing from among
alternatives.
Meanwhile, Shull (1972: 67) suggests that: decision making is a process of human
awareness of individual and social phenomena based on factual events and the value of
thinking, which includes the behavioral activity of choosing one or several alternatives, as a
way out to solve the problem at hand.
The essence of decision making is the formulation of several alternative actions in
working on the situation at hand, and making the right choice between several available
alternatives after evaluating the effectiveness of these alternatives to achieve the objectives of
the decision makers.
From some of the above definitions of decision making, it can be concluded that a
decision is the result of problem solving, the answer to a question, as the law of the situation,
and is the selection of one alternative from existing alternatives, as well as the termination of
the thought process about the problem or problem at hand.
While the result of decision making is a decision (decision), below will explain several
definitions of decisions as follows:
A decision is the result of decisively solving the problem at hand. A decision is a
definitive answer to a question. A decision must be able to answer the question of what is
being talked about in relation to planning. Decisions can also take the form of actions against
implementation that deviate greatly from the original plan. (Ralp C. Davis, 1999: 53)
A decision is a law of the situation. If all the facts of the situation can be obtained and all
those involved, both supervisors and executors, are willing to obey the law or its provisions,
it is not the same as obeying an order. Authority remains to be exercised, but it is the
authority of the law of the situation. (Mary Follet)
A decision is a selection between alternatives. This definition contains three notions,
namely: (a). there is a choice based on logic or consideration. (b). There are several
alternatives that must be chosen and one of the best. (c). There is a goal to be achieved, and
the decision is getting closer to that goal (James A.F.Stoner, 1998: 132).
A decision is a termination of the process of thinking about a problem or problem to
answer the question of what to do to solve the problem, by making a choice on one
alternative (Prajudi Atmosudirjo, 2002: 9).
Decision-making has the following functions: (1). The starting point of all conscious
and directed human activities, both individually and in groups, both institutionally and
organizationally. (2). Something that is futuristic, meaning that it has to do with the future,
the future, where the effect or influence lasts long enough.
While the objectives of decision making are: (1). Single purpose, occurs when the
resulting decision concerns only one problem, meaning that once decided, there will be no
connection with other problems. (2). Multiple objectives, occurs when the resulting decision
involves more than one problem, meaning that the decision taken simultaneously solves two
(or more) problems, which are contradictory or non-contradictory (Adler, 1991: 10).
Seeing the function of decision making above, decision making carried out by the
principal as a leader will have a major influence on the continuity of the school organization,
because this will have an impact on the behavior and attitudes of subordinates such as vice
principals, teachers, administrative staff and students. Therefore, the Principal as a leader
must be able to choose the right decision alternatives, so that the objectives of the school
organization to improve its educational performance can be achieved optimally.
According to Ibnu Syamsi (1995: 13) the elements in decision making that must be
considered are:
1)
The purpose of decision making, which is to know in advance the objectives to be
achieved from the decision making.
2)
Identification of decision alternatives to solve the problem, selected to achieve the goal,
hence the need to list the types of actions that are likely to be selected.
3)
Calculation of factors that cannot be known in advance / beyond human reach
(uncontrollable events).
4)
A means or tool to evaluate or measure the outcome of a decision.
The elements of decision-making that can be used by school principals must first be able
to review and consider: The purpose of decision-making, identification of the problem,
internal and external factors of the school, and the means of making the decision.
Decision making according to George R. Terry in Iqbal Hasan (2002: 16) is based on;
1.
Intuition, decision making based on intuition or feelings is subjective, so it is easily
influenced. Decision making based on this intuition contains several strengths and
weaknesses. The good things include:
(a). The time taken to make a decision is relatively shorter. (b). For problems with
limited influence, decision-making will provide satisfaction in general. (c). the
decision-making ability of the decision maker is very instrumental, and needs to be
utilized properly, the disadvantages include: (a). The resulting decision is relatively
poor. (b). it is difficult to find a comparison tool, so it is difficult to measure its
correctness and validity. (c). Other basics in decision making are often ignored.
2.
Experience, decision-making based on experience has benefits for practical
knowledge, because of experience a person can estimate the state of something, can
calculate the profit and loss, good or bad decisions that will be produced. Because of
experience, someone who suspects the problem, even if only with a cursory glance,
may already be able to guess the way to solve it.
3.
Facts, decision-making based on facts can provide healthy, solid, and good decisions.
With facts, the level of trust in the decision maker can be higher, so that people can
accept the decisions made willingly and gracefully.
4.
Authority, decision making based on authority is usually carried out by leaders against
their subordinates or people of lower position. Decision making based on authority also
has advantages and disadvantages. The advantages include: (1) Most of the recipients
are subordinates, regardless of whether the recipient is voluntary or forced (2) the
decision can last for a long time. (3) It has authenticity (Authentic) The disadvantages
include: (1) It can lead to routine
(2) Associates with dictatorial practices. (3) It often skips over the problems it is
supposed to solve, which can lead to confusion.
5.
Rational, in rational decision making, the resulting decision is objective, logical, more
transparent, consistent to maximize the results or value within certain constraints, so
that it can be said to be close to the truth or in accordance with what is desired. In
decision making rationally, there are the following points: (1) Problem clarity: there is
no doubt and vagueness of the problem. (2) Goal orientation: unity of understanding of
the goals to be achieved. (3) alternative knowledge: all alternatives are known by type
and consequence. (4) Clear preferences: alternatives can be ranked according to criteria.
(5) Maximum yield: the selection of the best alternative is based on the maximum
economic yield. This rational decision-making is fully applicable under ideal
circumstances.
All of the above elements and fundamentals of decision-making can be utilized by the
principal as the person most responsible for decision-making.
7.2
Factors Affecting Decision Making
In the decision-making process of an organization or company, it is inseparable from the
factors that influence it, namely;
1. Position. In the context of decision-making, position can be seen in terms of: (1)
Position; in this case whether he is a decision maker, decision taker or staffer.
(2) Improve the position; in this case whether as strategy, policy, regulation,
organizational, operational, technical.
2. Problems. A problem is what stands in the way of achieving a goal, which is a deviation
from what is expected, planned or desired and must be resolved. Problems can be
divided into two types: (1) Well structured problems, which are problems that are logical,
known and easy to identify. (2) Ill structured problems, which are problems that are new,
unusual and the information is incomplete. The above problems can be divided into (1)
routine problems, which are problems that are fixed in nature, always encountered in
everyday life. (2) Incidental problems, which are problems that are not fixed in nature,
not always encountered in everyday life.
3. Situation, is the totality of factors in a situation, which are related to each other and
which together exert an influence on us and what we want to do. These factors can be
divided into: (1) Factors that are constant (C), namely factors whose properties do not
change or remain in a state (2) Factors that are not constant or variable (V), namely
factors whose properties are always changing, not in a fixed state.
4. Conditions are the totality of factors that together determine our movement, action or
ability. Most of these factors are resources.
5. Objectives, the goals to be achieved, whether individual goals, unit goals (unity),
organizational goals, or business goals, are generally certain / predetermined. Goals that
have been determined in decision making are intermediate or objective goals.
Another opinion says that the factors that influence decision making are:
1.
The internal state of the organization, relating to what is in the organization which
includes available funds, the state of human resources, employee abilities, completeness
of organizational equipment, organizational structure.
2.
The external situation of the organization, related to what is outside the organization
such as economic, social, political, legal, cultural and so on.
3.
The availability of the necessary information, in decision making, the information
needed must be complete and have certain properties so that the resulting decisions can
be of good quality. The properties of the information include
(1) Accurate, meaning that the information must reflect or correspond to the actual
situation. (2) Up to date, meaning that the information must be timely. (3)
Comprehensive, meaning that the information must be representative. (4) Relevant,
meaning that the information must have something to do with the problem to be solved.
(5) Has a small standard error, meaning that the information has a small error rate.
4.
Personality and decision-making skills include: his judgment, his needs, his
intelligence, his skills, his capacity and so on. These personality values and skills also
color whether or not the decision taken is appropriate. If the decision maker has a lack of
personality and skills, the decision taken will also be lacking, and vice versa.
According to George R. Terry, the factors that influence decision making are;
1)
Things that are tangible and intangible, emotional and rational.
2)
Organizational Goals, every decision must later be used as material in achieving the
goals of the organization.
3)
Orientation, decisions taken should not have a personal orientation, but must be more
oriented to the interests of the organization.
4)
Counter-alternatives, there is rarely one choice that is completely satisfactory, hence the
need to create counter-alternatives.
5)
Action, decision-making is a mental act, hence it must be converted into a physical act.
6)
Time, effective decision-making requires a longer time and process.
7)
Practicality, in decision making, practical decision making is needed to obtain optimal
(better) results.
8)
Institutionalization, every decision taken must be institutionalized, so that the level of
truth can be known.
9)
In terms of subsequent activities, each decision is the initiating action of a chain of
subsequent activities.
According to Azhar Kasim (1995: 17) the factors that influence decision making by
leaders are:
1)
Men and women, men are generally more assertive or bold and quick to make decisions
and women are generally relatively slower and often hesitant.
2)
The role of decision-maker includes the ability to gather information, the ability to
analyze and interpret, and the ability to use broad concepts about physical human behavior
to better predict future developments.
3)
Limited ability, it is necessary to realize the limited ability to make decisions in the field
of management, which are institutional or personal in nature.
From the description above, it can be concluded that the factors that influence decision
making by school principals are,
(a)
The principal is the highest person in the school and is responsible for the running of
education.
(b)
The problem that is decided is either a problem within the school or a problem that is
outside the school such as government policy.
(c)
The overall situation of the school whether the decision does not make things worse,
looking at the situation inside and out.
(d)
Conditions that allow for decisions to be made, looking at existing factors.
(e)
The purpose of decision-making takes into account the internal and external impacts of the
school.
7.3
Types of Decision Making
The types of decisions can be organized based on various points of view, broadly
speaking, three types of decisions are known: First, decisions based on the level of
importance. In general, an institution including a company has a management hierarchy.
Classically, this hierarchy is divided into three levels, namely top management, middle
management and lower management. Top-level management is concerned with strategic
planning, middle-level management deals with problems, and lower-level management deals
with strategic planning supervision, and its activities are more administrative in nature.
Lower-level management is operational management that deals with day-to-day operations.
In accordance with the nature and field of work of each level of management, also
known as strategic, tactical and operational levels, the hierarchical picture of the three levels
of management is illustrated in the following figure.
Based on Figure 7.1, strategic decisions are made to respond to challenges and
environmental changes, which are long-term in nature. While tactical / administrative
decisions are decisions related to resource management (finance, engineering and personnel).
Operational decisions are decisions related to the daily operational activities of the
organization. Second, the two decisions based on regularity proposed by Simon (1995).
These decisions become programmed decisions and unprogrammed decisions which are
described as follows:
1.
Programmed decision-making, which is routine, repetitive and predetermined, for
problem solving through the following:
(a). Procedure, which is a series of related and sequential steps that must be followed by
the decision maker. (b). Rules, which are provisions that regulate what decision makers
should and should not do. (c). Policies, which are guidelines that define the parameters for
making decisions.
2.
Unprogrammed decision-making, is decision-making that is not routine, used to solve
unstructured problems.
Third, the type of decision based on the environment, this decision can be divided
into four groups:
1.
Decision-making under certain conditions, is decision-making where the following
takes place: (a). The alternative that must be chosen has only one consequence/outcome.
This means that the results of each alternative action can be determined with certainty. (b).
the decision to be taken is supported by complete information / data, so that it can predict
accurately or exactly the results of each action taken. (c). In this condition, decision
makers definitely know what will happen in the future. (d). Usually always associated with
decisions concerning routine matters, because certain future events are guaranteed to
occur. (e). decision making like this can be found in cases, models that are deterministic.
(f). The solution technique usually uses, among others, linear program techniques,
transportation models, assignment models, inventory models, queuing models and network
models.
2.
Decision-making under risky conditions is decision-making where the following occurs:
(a). the alternative chosen contains more than one possible outcome. (b). Decision making
represents more than one alternative action. (c). It is assumed that the decision maker
knows the odds that will occur against various actions and outcomes. (d). Risk occurs
because the outcome of a decision cannot be known with certainty, even if the probability
value is known. (e). In this condition, the state of nature is the same as an uncertain
condition, the difference is that in this condition, there is information or data that will
support in making decisions, in the form of the magnitude or chance of occurrence of
various conditions. (f). The solution technique uses probabilistic concepts, probabilistic
inventory models, probabilistic queuing models.
3.
Decision making under uncertainty; is decision making where: (a). the number of
conditions that may arise and the likelihood of their occurrence are not known at all. (b).
decision making The decision cannot determine the probability of various conditions or
outcomes occurring. (c). only the possible outcomes of an action are known, but the
probability of each outcome cannot be predicted. (d). decision makers do not have
complete knowledge and information about the chances of various conditions occurring.
(e). the matter to be decided is usually relatively unprecedented. (f). the level of
uncertainty of this kind of decision can be reduced by: seeking more information, through
research or research, the use of subjective probabilities. (g). The solution technique is to
use several methods (criteria), namely, the minimax regret method, the realism method
and assisted by the pay-off table.
4.
Decision-making under conflict conditions, is decision-making where: (a). the interests
of two or more decision-makers conflict with each other in a competitive situation. (b).
decision makers compete with other decision makers who are rational, responsive and aim
to win the competition. (c). here the decision maker acts as a player in a game. (d). the
solution technique is to use game theory (J. Supranto, 1991: 18-19).
The type of decision making that is appropriate depends on the decision itself, as well as
the time of making the decision, it can be with programmed decision making if the decision is
routine and repetitive, decision making under certain conditions must take into account the
alternatives that exist, if risky decision making, must take the least risk, for uncertain
conditions can use various methods and make decisions with the school team, while taking in
conflict conditions then it must use a lot that is rational.
According to V.H. Vromm and P.W Yetton in Wirawan (2003: 125), suggesting decision
making Normative Decision Making Theory, which is based on the assumption that the
decision-making process is determined by leaders, followers and situational factors.
According to this theory, there are 3 types of decision-making processes, namely:
1.
Autocratic decision-making; The leader solves problems or makes decisions on his own
without involving his followers based on the information available at that time, or the
leader receives the necessary information from his followers and then makes his own
decisions. In this case, the leader may or may not inform the followers about the goal,
problem, information or decision process. The followers do not take an active part in
operationally defining the problem to create alternatives needed in the decision-making
pattern.
2.
Consultative decision-making; In this decision-making the leader discusses the problem
with relevant followers on an individual basis to collect their ideas and suggestions
without discussing them in the group of followers. In this consultative decision-making
process, the leader can also discuss the problems faced with his followers in group
meetings, in these meetings the leader gets ideas and input. Then the leader makes a
decision that reflects or does not reflect the influence of his followers.
3.
Group decision-making; Leaders in the decision-making process share the problems
faced with other leaders in groups. Then together the leader and his followers identify
and evaluate the alternatives needed in decision making and try to reach consensus to
reach a solution. The role of a leader is to coordinate the discussion so that it is more
focused on the problem at hand. Leaders encourage the participation of followers, to
convey information, ideas or opinions but do not force them to adopt them. The leader
also encourages followers to accept and implement solutions that result from group
discussions.
Before making a decision, the decision maker must first determine the steps of the
model, so that the decision-making process is in accordance with solving the problem at
hand, Robbin (2001: 102) provides instructions for the steps of the decision-making model,
namely through;
1.
Clarity of the problem. The problem must be clear and not delayed. The decision maker
is assumed to have complete information with respect to the decision situation.
2.
The options are known. It is assumed that the decision maker can identify all relevant
criteria and can list all discernible alternatives. Moreover, the decision maker is aware of
all possible consequences of each alternative.
3.
Clear choice. Rational assumes that criteria and alternatives can be ranked and weighted
to reflect their importance.
4.
Constant choice. It is assumed that the specific decision criteria are constant and that the
load assigned to them is stable over time.
5.
No time and cost restrictions, rational decision-making can obtain complete
information about criteria and alternatives because it is assumed that there are no time
and cost restrictions.
6.
Maximum repayment. Rational decision-making will choose the alternative that
produces the highest perceived value.
The stages of the decision-making process according to Herbet A Simon in Onong
Uchyana Effendi, 1996: 161, include;
1.
Intelligence, which investigates the environment for conditions in making decisions, raw
data is obtained, processed, examined for performances that can identify problems.
2.
Design, which is discovering, developing, and analyzing possible activities. This
includes the process of understanding the problem, generating solutions, and testing
solutions to see if they are feasible.
3.
Choice, which is choosing a specific way of activity from the ways that have been
obtained, a choice is made and implemented.
4.
Implementation, which is the implementation of actions after obtaining options for
various alternative activities that have been determined.
All these stages can be used by company leaders in making decisions, so that they will
be able to produce more targeted decisions. The steps of the decision-making model can be
illustrated in the following diagram:
The diagram above illustrates that the first step in the decision-making process is to
formulate the problem at hand in relation to the particular phenomenon at hand. Next,
determine the problem at hand to be simplified. The next stage formulates the criteria that
may be one of the options for solving the problem at hand. Identification of alternatives that
will be one of the supporters of the decision-making process is the next stage. From the
formulation of criteria compared to the identification of alternatives that will be selected to be
one of the decision makers' supporters, there is an alternative to the best choice that will be
determined by the decision maker, besides the possibility of alternatives that do not support
the decision-making process, it will be possible to find other alternatives to support more
appropriate decision making.
Company leaders in the decision-making process are faced with steps that must be taken
as contained in the diagram above, but of these steps it is possible to make decisions outside
these steps, this depends on the type of problem faced by each company leader as a decision
maker.
Based on the model previously stated, the decision-making techniques summarized by
Mc Crew in J. Salusu (2003: 63), namely;
1.
Programmatic decisions include: (1) Traditional: (a). habits (b). daily routine work;
standardized operational procedures. (c). organizational structure; shared expectations;
through formulation of sub-goals; using clearly defined information channels. (2) Modern:
(a). operational research; mathematical analysis; models; computer simulation.
2.
Non-programmatic decisions: (1). Traditional: (a). heuristic, which encourages people to
seek and find their own intuition, creativity: (b). rule of thumbs, which is a practical
procedure that does not guarantee optimal solutions; (c). by selection and training of
executives. (2) Modern: (a). by organizing training for decision makers: (b). by creating
computer programs.
The effective performance of a company's activities is determined by the quality of
decision-making, because decision-making is an integral part of the role of company leaders.
Some even claim that decision-making is the core of the role of a company leader. Decisions
that must be made in terms of priorities, costs, time, and others are delegated and solved at
every stage of the company's operations. Company leaders are authorized and responsible for
the results of the decisions taken.
Decision-making activities are inseparable from the obstacles faced, in the form of: 1)
excessive idealism, 2) excessive frustration, 3) "Yes man" attitude, 4) desire to be loved and
liked, 5) excessive self-demand, 6) unable to distinguish the main interests, 7) want to realize
all options, 8) leaving decisions to fate, 9) unbalanced inner atmosphere, 10) inability to
assess choices, 11) unnatural self-esteem (Haryono Rudi, 2000: 35).
7.4
Management Functional Information System Company
This discussion will describe the role of information systems from the company's
management functions which include; financial management information systems, human
resource management information systems, operations management information systems and
marketing management information systems.
The decision to be taken as a solution to the problem at hand will be based on the
company's functional management information system, the discussion in this section is based
on the main ideas of Raymond (2001: 322). That every organization, including companies, to
maintain its existence must adhere to decisions taken based on careful considerations,
decisions that are considered feasible to implement are decisions based on accurate
information systems. The company's management functional information system is illustrated
in the following figure:
The figure above shows that the integration of each functional management of the
company will produce an accurate company management information system, as a sub-
system of decision support in the field of the company, such as financial management
decisions, operations management decisions, human resource management decisions and
decisions for publication. This is very necessary to determine the decisions that will be taken
as a solution to the problems faced in company management.
In addition to the management information subsystem, there are other subsystems in the
decision-making process, namely accounting information systems, decision support systems,
facts (phenomena) in the field and knowledge that must be possessed by decision makers.
A.
Management Information Systems Finance
Financial management information system applications are used to assist the processing of
financial data presented in financial reports based on a recording system called accounting.
Accounting presents financial reports needed by financial managers in the form of balance
sheets, income statements and statements of changes in capital, therefore financial
management information systems are often called accounting information systems (AIS).
Accounting is the process of recording, classifying, summarizing events and events of a
financial nature, which presents all financial statements of an organization including
companies whose role is to find out the description of the financial position or financing of
the organization.
All activities in the company concerning operations, finance, human resources and
marketing require adequate costs. To support all these activities must be based on a budget
that has been determined in accordance with existing procedures. In Indonesia, financial
information system support company is very difficult, given that the company system in this
country is carried out by two actors, namely the government and the private sector.
Comparing public and private companies, there are currently more private companies
Accountin
than state-owned (government) companies.
From Figure 7.6 it can be explained that the need for a financial information system
starts from the input subsystem which includes the accounting information system, internal
audit subsystem, and financial investigation subsystem. These three elements act as a
database that comes from internal organizational sources and environmental sources. Then
the database is processed and becomes an output subsystem to be able to estimate how much
the company's budget will be allocated, how much the costs must be incurred. The stages of
the input subsystem, database, and output subsystem are taken into consideration for the
company's financial policy makers. The proposed model is expected to be a financial decision
support system, so that in the company's budget, the allocation of costs will be right on target,
and the control process is easy to do.
B.
Management Information Systems Operations
From Figure 7.7, it can be seen that the product transformation process from suppliers
starts with input or input in the form of equipment, then the transformation process occurs
from the company to the supplier supported by other inputs. All inputs are processed and
transformation occurs from the company to the supplier which will produce
products/services. The transformation process is also called operations management, because
in this stage the production process occurs, then transformed (transferred) from the company
to the supplier.
Company activities will involve two or more groups of other companies (suppliers),
either directly or indirectly. For the first group of service providers who do not directly meet
service users, known as the (back office) involved in this case are administrative personnel,
security or janitors, they are the main actors in the operation of service companies. As for the
group of service presenters who directly meet service users are employees who directly serve
consumers or known as (front office), having a dual role, namely as service presenters as well
as service deliverers. The two service presenters each have the same duties and
responsibilities, because the role required is how to present quality services and can meet the
expectations of consumers in particular and service users in general. The following illustrates
the role of the two service providers;
To expedite the company's operations, in order to produce quality products/services and
in accordance with the company's objectives, the company's operating information system is
needed as a decision support system in solving the problems faced. This can be done by
creating a company operating system model as shown below:
From the figure above, it can be explained that a company's operating information
system starts from the input subsystem consisting of internal sources and environmental
sources in the form of accounting information systems, infrastructure subsystems to produce
products and operating investigation subsystems in the form of actual phenomena in the field.
From internal and environmental sources, a database is created, as a basis for decision
making which is realized in the output subsystem of operations, assisted by back office and
front office operations officers who produce product quality integrated with operating costs in
accordance with the wishes of its users.
C.
Management Information Systems Marketing
Marketing information systems are useful for organizing the flow of company marketing
information, because the level of company competition is currently very tight as is the
competition in the business world. The occurrence of very intense competition between
companies, this is the impact of the many products offered by the company. To analyze
marketing developments, policy makers need information about developments and the
marketing environment, so that the competitive situation can be analyzed early.
According to Kotler (2010: 122) Marketing information systems are a combination of
people, equipment, and procedures to collect, analyze, evaluate, and distribute information
that is appropriate, timely and accurate for marketing decision makers.
From the definition of marketing information systems above, it can be concluded that
marketing information systems are indispensable for policy makers to serve as the basis for
decision making. Likewise with companies, marketing information systems are needed to
collect, analyze and evaluate products/services offered to consumers. The need for a
marketing information system is needed to improve the system and the quality of the
products/services offered, to match the wants and needs of consumers. Below is illustrated
the marketing information system model as developed by Raymond (2001) in Figure 7.10.
From Figure 7.10, it can be explained that the marketing information system provides
information about products offered by various companies. The marketing information system
model starts from the product input subsystem stage which is sourced from internal and
external sources, complemented by the results of research and marketing investigations
obtained in the field. The input subsystem is processed into a database to support the
decision-making process. The availability of the database will be used as the basis for a
subsystem output that presents eight elements of the service marketing mix, then the entire
marketing mix can be used as a decision support system for its users.
D.
Human Resource Management Information System
The effectiveness of human resource activities will depend on the quality of information used
to develop these various activity programs. The company's ability to obtain, store, maintain
and use human resource information. Many companies have realized the importance of
meeting human resource information needs. The company developed a human resource
information system with the aim of improving the quality of human resource information. As
well as supporting human resource programs, it will introduce the basic concepts of human
resource information systems, as well as development steps.
"The Human Resources Information System (SIM-Education) is a systematic procedure
for collecting, storing, maintaining, validating, and retrieving human resource data needed
by the company in carrying out the activities of the HR function and work unit
characteristics".
SIM is used to support various activities related to Human Resources. For example, in
general, it provides data on the number of company employees from lower management to
top management. HR preparation, starting from applicant data, relating to employee
recruitment, career advancement, development programs based on data on skills that
employees already have, training and work performance assessments, the amount of
compensation based on references made by the company. Such systems will be very useful to
be able to simplify administrative activities such as making routine reports, preparation for
promotion and the process of career advancement for employees, so that they have the
motivation to continue to increase their potential and competence in improving their
respective work performance.
A company's HR SIM is expected to fulfill the need for information about the end of an
employee's working period (retirement), if this situation is supported by accurate data, then
an employee while carrying out his duties will really prepare for retirement with full mental
readiness, because if a person stops routine activities, he faces a lot of what is called post
power syndrome, which causes a person to experience stress, even experience mental shock.
Therefore, the company's SIMSDM is expected to provide information to each employee to
provide precise and accurate personnel data.
Basically, the basic components of the enterprise human resource SIM model are the
same as the general SIM concept, namely: First, the input subsystem function includes three
basic components; accounting information system, human resource research subsystem and
human resource investigation subsystem. These three components come from internal sources
as well as the organizational environment. Second, the human resource database, to
determine the output subsystem. Third, the output subsystem with components of the HR
planning subsystem, recruitment, placement, development, compensation system and
retirement pattern subsystem. All information that has been processed will be used as the
basis for HR decision making. An important concept in the development of SIM-HR is the
establishment of a human resource information center. If one of these concepts is neglected,
then the system being built will not fulfill the objectives set earlier. The overall components
of the human resource information system and subsystems are illustrated in the following
model:
From the description of the four functional management information systems of a
company, according to Lovelock (2003), three management functions play a central role in
serving consumers. The three central management functions are played by operations
management, HR management and marketing management, because these management
functions are directly dealing with consumers. The relationship between the three
management functions in the company is illustrated in the following diagram:
From the overall description of the company's management information system, what
needs to be considered is how to create an information system to be used as a basis for
decision making, so that solving the problems faced by company management can be
resolved appropriately. In addition, the company's management information system is needed
as input for policy makers, so that in setting policies it has added value that is very valuable
for the development of the company, and no party feels sacrificed, especially the community
who yearns for an educational climate that has more meaning for the growth of human
resources in the future.
