Lecture 5 levels of system

transcript

Inam Ul-HaqLecturer in Computer ScienceUniversity of Education Okara CampusInam.bth@gmail.com, organizer@dfd-charity.com

Levels of System

Organisation Hierarchy• A hierarchy (say “higher arky”) is an arrangement where there

are different levels of authority or power.• Organisations usually have a hierarchical structure, where

some people are more powerful or important than others.

Typical hierarchy in organisations

STRATEGIC

Typical management hierarchy in organisations

TACTICAL

STRATEGICSTRATEGIC

Typical management hierarchy in organisations

TACTICAL

OPERATIONAL

STRATEGICSTRATEGIC

STRATEGIC DECISION MAKERS• The very highest level of the hierarchy• Make very big decisions that:

• Must consider the whole organisation, not just part of it• Are expensive• Are long-term (e.g. years)• Could be disastrous if wrong• Define the nature of the organisation• Changes the organisation’s future

STRATEGIC DECISION MAKERS

Typical Strategic level job titles:- Chairman- President- CEO (Chief Executive Office)- Board of Directors- General Manager

Tactical Management• These people are still high-level, and make important

decisions in their own areas• But they follow instructions from above: from the strategic

management.• Tactical managers implement the decisions made at the

strategic level.• They take a big idea and work out how to make it happen• Their decisions are usually limited to a sector of the org (e.g.

advertising, transport) rather than the whole org.• Project management is mostly tactical except planning

Google it: Tactical Management

Typical Tactical-Level Job Titles• Advertising manager• Personnel manager• Creative director• Manager of information systems• Communications director• Chief Financial Officer

Tactical decisions• Implement strategic decisions• Are medium-term (e.g. months, weeks)• Are passed down to the next level of management…

Operational Management• Operational managers directly manage non-management staff

and the public.• They make day-to-day decisions that are vital to actually make

things, sell things, provide services.• They are at the ‘coal face’ doing business and making money.

Google it: Operational Management

Typical operational job titles• Store manager• Foreman• Army Sergeant

Google: what about IS?

Example• Super-shop, a country wide chain of grocery stores wants to

increase its profit.• The board of directors discusses how to best achieve this.• They decide they will move into the pharmacy sector and include

chemist shops in their stores.• This is a big departure from their usual business. It’s a strategic

decision.

Tactical• The directors instruct the tactical managers to implement the

decision.• The personnel manager advertises for pharmacists to be

employed.• The publicity manager plans a TV & newspaper campaign to

advertise the change.• The facilities manager puts out tenders for the construction

work needed.

Operational• The builders arrive at a local supermarket.• The supermarket manager instructs staff to reorganise

shelving to allow the construction of the pharmacy.• The manager chooses and arranges training for staff who will

be working in the pharmacy.

Non-management• Cheryl, the checkout chick, empties out the shelves where the

pharmacy will be built.• Her decision-making is limited to “I’ll need to get a trolley to

take these cans to the other shelves.”

Drawing the line• Sometimes it’s hard to decide whether a

decision is strategic, tactical or operational.• It can depend on the size of the organisation.

Drawing the line• Judge whether the decision will have a significant impact on

the organisation over quite some time. That would be strategic.

• If the decision is made to implement a decision made by a higher-ranking person (but it doesn’t actually achieve the end by itelf), it’s tactical.

• If a decision actually leads workers to doing something that makes the plan work, it’s operational.

Thanks to:

Thanks to:Mark Kellymark@vceit.comvceit.com

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