MBA coursework integration: leadership, technology, and management foundation

¶ … pursuit of an MBA, in order to demonstrate how the courses, separately and together, have impacted his knowledge of computing, leadership, and management. The paper discusses what the author has learned from coursework focused on transformational leadership, organizational tools, the use of web technology, how financial management benefits organizations, a manager's economic toolkit, the author's experience with a marketing plan and a case study, decision support systems, broadband services, and helpdesk service quality. The paper then goes on to discuss the author's conclusion that the lessons about management have prepared him for future changes in technology.

Integration Essay

Introduction

One of the most rewarding aspects of working towards an MBA is that one is able to see how individual topics and courses will able to impact one's abilities as a manager. For example, learning about transformational leadership enables and empowers future leaders, by teaching the skills needed to motivate employees. Of course, good leaders need more than charisma, and learning what organizational tools are used by successful managers helps one prepare for the day-to-day requirements of management. Not surprisingly, one of the most important and useful tools for business is also one of the newest; there is no doubt that the proper use of web technology can provide a tremendous benefit to human resource management. Computer science has also enhanced opportunities for financial management, and helped clarify exactly how and why financial management benefits organizations. In addition to company-wide financial management, the author's coursework has also taught that it is important for managers to have a broad-based economic toolkit, which can help a manager determine whether or not a course of action will be beneficial to the company. Of course, textbook learning, while helpful, does have some limitations. By establishing the marketing plan for Basic Healthy Life, the author was able to get hands-on-type experience in today's modern world of business. Although all of the above topics helped highlight both potential problems and useful solutions in future management scenarios, the author found the final three topics to be particularly interesting because of their focus on computer information systems. While completing the case study of the Griffith Company, the author was introduced to a real-life business scenario and given the opportunity to investigate the strengths and weaknesses of various possible computing approaches for that company. The coursework describing decision support systems (DSS) in today's organizations and four broadband decisions gave further illumination to the computing possibilities available to modern mid-sized organizations. Finally, experience has taught that all of the computing power in the world is useless if employees do not know how to use it; therefore, the author found the study of helpdesk service quality to be tremendously useful. Combined together, these 10 different topics provide a very good foundation for anyone interested in a computer information systems-based approach to management.

Transformational Leadership

Although the term "transformational leadership" is relatively new, the concepts underlying the idea are not. Put simply, transformational leaders are those leaders who are able to inspire their subordinates. A transformational leader does not merely ask a subordinate to do a job, but makes it clear that they have faith that the subordinate will be able to do so. Furthermore, transformational leaders seek to communicate values and ethics, not merely ideas to their employees. As a result, these "charismatic leaders inspire and excite their employees with the idea that they may be able to accomplish great things." (Humphreys and Einstein, 2003, p. 92).

However, it would be incorrect to assume that transformational leaders are not concerned with ideas. On the contrary, one of the crucial roles that transformational leaders play is the role of knowledge manager. As a matter of fact, having a leader who can manage a company's knowledge resources, in addition to a company's physical and financial resources, gives a company a tremendous advantage over its competitors. Innovation occurs in environments where employees are encouraged to share ideas and management has an understanding and appreciating of employee creativity.

Of course, it is not enough for a leader to inspire individual employees; a truly transformational leader inspires employees to work as a team. One way that they do so is by enhancing communication between team members. Another important factor in team success is that transformational leaders give their employees the power and authority that they need to do their jobs. The most important factor may be that a transformational leader is able to share his or her values and goals with team members, thereby establishing a group set of values and goals. Together, these factors result in increased productivity.

Web Technology Has Benefited Human Resource Management

It is relatively easy to understand how web technology has impacted most areas of organizations. However, the area that may have been most impacted by web technology is not always visible to those outside of the organization; human resource management (HRM). In order to understand how technology has impacted HRM, it is important for one to understand the variety of different technologies that fall under the HRM umbrella. Basically, any computer technology that is used to "gather, analyze, and distribute information about the people in an organization," falls under the HRM umbrella. (Jackson & Schuler, 2003, p. 65-66).

One of the major technological transformations in the HRM field is that human resource information systems (HRIM) have made easy access to HR information possible throughout the organization. Furthermore, some believe that the web-based HRM information portal have had a significant impact on HR technology. (Perrin & Walker, 2001, p. xiv). This impact can be attributed to the fact that HRM portals bring together internal and external information.

Another significant change ushered in by web technology is self-service HR services. Employees can get direct access to information and forms, which makes it easier for employees and for HR. One of the benefits of self-service is that when employees are responsible for entering their own data, the information in the systems tends to be more accurate.

One of the initial concerns about web-based HRIM systems was that they would not be secure. Those security concerns have largely been addressed by modern security technologies. One way to minimize security risks is to allow access to HR only from internal computers. Another possibility is to limit outside access to only those computers that have been registered. Registering involves assigning a certificate that recognizes each external computer's media access control (MAC) number. (Kaufman, Perlman, & Speciner, 2002). Only registered computers can access the system. Whatever solution is selected, a conscientious manager will ensure that HRM keeps up with any changes in web-based security issues.

In fact, web technology can provide a significant advantage to an organization even before it has hired an employee. For example, many organizations engage in web-based hiring practices, using Internet recruiting companies like monster.com, careerbuilder.com, and dice.com. Not only do these recruiting companies provide organizations with a huge target audience, but they also allow organizations greater control than traditional recruiting practices.

However, it is important to keep in mind that major technological changes do not occur overnight. While web-based self-service HR administration provides a tremendous opportunity for companies, these changes are not going to occur painlessly or immediately. Johnston argues that, to be successful, self-service HR needs to take an approach similar to the approach taken by banks when customers initially resisted using automatic teller machines (ATMs). (2002). Like banks convinced their customers of the benefits of having 24/7 access to their money, companies need to educate their employees of the benefits of having 24/7 access to their HR benefits and information. Furthermore, organizations need to make sure that the systems are easy for employees to use. In addition, organizations need to implement employment-practices compliance systems (EPCS), which are online tools that allow management to increase the level of compliance. EPCS "allow HR professionals to visibly demonstrate the core competencies that allow them to leverage their role and contribution to business strategy." (Thrasher, 2003, p. 63).

Financial Management Benefits Organizations

One need only see today's headlines to see how improper financial management or accounting can destroy an organization. Management accounting involves the use of accounting information by managers to make both long-term and short-term management decisions. While some aspects of accounting have been in use for generations, innovative management accounting involves relatively new practices. For example, traditional accounting used variance analysis to determine the difference between actual and projected costs. While modern managerial accounting still uses variance analysis, it also uses activity-based costing. Financial management involves more than simply accounting. For example, a finance department would be in charge of insurance, risk management, pricing, auditing, investor relations, cash management, bank relations, investments, mergers, acquisitions, and the internal management of public stock offerings. (Cooke, 2004).

The actual accounting process is relatively straightforward, involving the recording of transactions and compiling of reports so that people can understand the impact of those transactions. Technology impacts accounting through the use of accounting software, which makes it easier for accountants to keep the ledger and to prepare reports. Most reports are prepared according to generally accepted accounting principles (GAAP), which make them easy to understand. Accounting systems are referred to as the chart of account, which is a systematic listing of all ledger account names and associated numbers used by a company. (Cooke, 2004). Furthermore, for companies that use double-entry bookkeeping, the general ledger is the main accounting record. The general ledger is taken directly from the general journal and includes items like assets, liabilities, revenue, expenses, and additional equity. In turn, the balance sheet ad the profit/loss statement are prepared from the general ledger. One of the principles of financial accounting is that total assets must always equal the sum of total liabilities and total stock holder's equity. There are several different types of internal accounting methods: accrual basis accounting, cost accounting, and activity-based costing (ABC).

ABC may be the most useful accounting method for organizations because it allows organizations to easily determine the profitability of different departments or products. In addition, ABC accounting reflects modern technology. While traditional accounting inaccurately allocates costs, ABC allows for a more accurate cost allocation because it assigns costs to activities based on the resources used by those activities, and then assigns costs to objects based on their use of those activities. Because ABC permits a manager to identify areas of inflated overhead, it encourages managers to find ways to reduce costs.

There are three main types of financial statements: the balance sheet, the income statement, and the statement of cash flows. The balance sheet shows the companies assets and liabilities, revealing the company's financial condition on a certain date. The income statement shows the amount of sales, the costs to make those sales, and overhead. The statement of cash flows show all transactions that involved or influenced the company's cash flow, but that did not appear on the company's income statement. Organizations may also compile other reports, such as accounts receivable reports, accounts payable reports, or inventory reports. One of the benefits of computerized accounting is that the same raw data can be used to compile a wide variety of reports.

By looking at their financial reports, organizations can understand their past performance and engage in business planning. Business plans often involve operating plans, which guide daily work; short-term plans, which involve goals over a period of a year or less; and strategic plans, which reveal an organization's long-term goals. Managers then use the business plans to determine whether they have the financial resources to meet stated goals and engage in the budgeting process. The budget is basically an estimate that allows managers to use projected revenue to determine the amount of money available for a project or department.

Managerial Economic Toolkit

There are several economic tools that managers can use to ensure business success. These tools will permit managers to identify problems and opportunities, analyze alternatives, and make the choices that are best for their organization. (Truett & Truett, 2004, p.3). Marginal analysis allows one to determine how to obtain the most value from each unit of a particular resource. Another tool that managers can use is the demand function, which shows how demand is affected by variables like price, expenditures, and consumer income. The demand function reveals that demand is elastic and allows one to maximize profits, based on the other variables in the curve. An additional economic tool that managers can use is the calculation of opportunity costs, which reflects the fundamental truth that the creation of more of a certain product must result in the creation of less of another project, due to limited resources. The next two tools allow managers to determine costs; the historical cost method and the engineering cost method. (Truett & Truett, 2004, p. 258-259). Furthermore, costs are separated into different categories: explicit, implicit, fixed, and economic. If a manager chooses to use the historical cost method, there are several methods they can use to estimate cost functions: the high-low method, the visual fit method, and the regression method.

In addition to determining costs, managers can also use tools to help them figure out how to maximize profits, such as comparing revenue, cost, and profit. Furthermore, they can use analytical statistics and decision rules. Managers can also use breakeven analysis, which means that a firm's revenue equals its costs. Managers also use incremental profit analysis. Managers also have tools that are geared towards things other than profit maximization, such as markup pricing. Mangers can also use pricing tools to determine the combined optimal output for jointly produced products and the appropriate transfer price for a product sold by one part of the firm to another part of the same firm. Furthermore, pricing is not constant, and price discrimination allows managers to determine the different prices to charge in different markets. Three methods of price discrimination are first, second, and third degree pricing discrimination methods.

Organizations also need tools that take a broader point-of-view. One of the ways that companies can look at long-term financial goals is to analyze investment opportunities using capital budgeting. A risk profile, which consists of things like risk-return indifference curves and probability, helps one determine what risks are worthy. There have also been innovations in management information systems (MIS) tools, like decision systems support (DSS) applications, which can assist managers in decision making.

Basic Healthy Life Marketing Plan

Working on a marketing plan gives one an opportunity to understand some of the complexities of business. In fact, doing so allows one to understand several important aspects of a marketing plan. The first aspect is the business' strategic focus and plan. Next aspects are the companies' mission and vision statements, which outline what a company does and plans to do. A mission statement should identify an "organization's scope, often identifying its customers, markets, products, technology and values." (Kern et al., 2006, p. 33). In contrast, a vision statement discusses a company's values. Next, one must look at a company's goals, which are more detailed than the mission statement, and reflect, not only what the company hopes to accomplish, but the plans the company will use to accomplish the goals. Knowing what the company wants to do is only part of a marketing plan; the company also needs to understand its own strengths and the outside market environment, which it does by assessing its core competency, sustainable competitive advantage, situation analysis, and market-product focus. The situation analysis is important because it involves an analysis of the company, of its competition, and of its current and prospective customers.

However, one of the most important lessons that the author learned when investigating Basic Healthy Life's marketing plan is that marketing is only one of the factors that contribute to an organization's success. For example, Basic Healthy Life needs to concentrate on improving its HRM, administration, and tax administration in order to be truly competitive. On the other hand, they have made some significant improvements in their information systems infrastructure and have taken many of the necessary steps to make them capable of transitioning to a high-growth environment.

Griffith Company: An MIS Case Study

Because of the author's emphasis on computing systems, the Griffith Company case study was one of the most helpful elements of the curriculum. Not only did it allow the author an opportunity to understand the historical rise of a very successful mid-size company, but it also provided a tremendous opportunity to learn about the impact of information systems in such a company.

One of the most important things that the author learned from the study is the importance of a company's website. A website is necessary for a company to engage in e-commerce, as well being helpful in allowing a company to disseminate information about its services. The online aspect can be important for product development, marketing, selling, delivering, and servicing. Furthermore, websites have to be structured in a manner that is easy to use and secure. In addition, successful e-commerce means that customers need to feel as if they are receiving good customer service.

In addition, the case study provided a good example for how to set up an office network. The company's technical aspects provided good security, and easy access, both for on-site workers and necessary off-site workers. In addition, the company's setup of its physical resources was also helpful, demonstrating both the appropriate uses of electricity sources and an office setup that was accessible for its various employees.

One of the most important lessons that the author learned from the Griffith Company was the importance of data integrity and replication. Because data problems can arise when data replication is not conducted properly, it is important for a corporation to take the steps necessary to ensure data accuracy. Not only is it relatively inexpensive to ensure data integrity, but, as a system is maintained, declining IT infrastructure expenditures make it possible to direct more funding towards maintaining data integrity.

Much of the company's software is Microsoft and was familiar to the author at the time of the study. However, the case study also gave the author the opportunity to become familiar with several innovative software applications. One of the products was called Bid2Win and its purpose was to estimate costs to allow the company to prepare bids. In addition, the software could allow multiple people to prepare bids from any location with network or internet access. In addition, a client/server software management product called Computer Guidance Corporation Project Management provided the company with software to manage jobs. In addition, imaging software customized to the construction business permitted the company to have an optical jukebox of its company records.

Another interesting aspect of Griffith was that its ERP integrated its finance/accounting and human resources departments under a unified software system. In addition, the estimating, project management, and imaging data are also integrated. Although it took considerable time for the company to customize its ERP to the current specifications, I learned that such customization may not be desirable for all businesses. In fact:

Customizing an ERP package can be very expensive and complicated, because many ERP packages are not designed to support customization, so most businesses implement the best practices embedded in the acquired ERP system. Some ERP packages are very generic in their reports and inquiries, such that customization is expected in every implementation. It is important to recognize that for these packages, it makes more sense to buy third party reporting packages that interface well to particular ERP, than to reinvent what tens of thousands of other clients of that same ERP have needed to develop. (Wikipedia Contributors, 2006, p.1).

The case study also clarified that there are several reasons for companies to implement ERP software: to integrate financial information, to integrate customer order information, to standardize and speed up manufacturing processes, to reduce inventory, and to standardize HR information.

One of the other important lessons one can learn from such a case study is the importance of security. Modern firms face threats from viruses, Trojans, adware, spyware, and hackers. In addition, computer criminals are getting more and more aggressive. This continuing aggression means that firms have to diligent in their security systems. Some techniques firms can use are: verification tools, authentication techniques, secure crypto processors, chain of trust techniques, mandatory access control, encryption, cryptographic techniques, intrusion-detection systems, firewalls, anti-virus software, access authorization, and keeping backups in secure places.

Furthermore, firms have to ensure that physical security is maintained as well.

Decision Support Systems in Today's Organizations

When they first came on the scene, people had tremendous hopes for decision support systems (DSS). While initial DSS systems failed to meet those expectations, more recent incarnations have started to live up to early expectations. According to Chan and Chowdhury, there are two types of DSS: Model-driven DSS and Data-driven DSS. (2005, p. 173). There are several varieties of model-driven DSS, but the most used are the strategic, operational, and tactical models.

DSS can be passive or active. Passive DSS aids decision making, but is not innovative. Active DSS, in contrast, is innovative. Cooperative DSS brigs out explicit solutions, but allows for user modification. In addition, communication-driven DSS, like Microsoft's NetMeeting, permits multiple people to work on the same task. Data-driven DSS access and manipulate data. Furthermore, DSS can be either enterprise-wide or single-user.

DSS involves the implementation of sophisticated techniques. DSS systems can be both off-the-shelf and proprietary, and continues to approve in its ability to get people the right information, at the right time, in the right format, and at the right cost. Furthermore, DSS handles knowledge in several different ways; it acquires and maintains knowledge, presents knowledge in customized ways, selects subsets, and can even derive knew knowledge. Managers also play important roles in DSS implementation, because managers are the ones to identify problems and needs, which can help them choose the appropriate DSS.

There are several classifications for DSS applications, but some DSS fit into multiple categories. Each of the different classifications incorporates a different approach to DSS design. The different classifications include: Alter's output classification, Holsapple and Whinston's classification, text-oriented DSS, database-oriented DSS, spreadsheet oriented DSS, solver-oriented DSS, rule-oriented DSS, compound DSS, and intelligent DSS.

DSS have benefits and challenges. The benefits include improved personal efficiency, expedited problem solving, improved decision quality, improved interpersonal communication, teaching applications, and increased organizational control. Some of the challenges include power struggles over data access, office political implications, and hidden agendas. The most significant challenge may be ensuring data quality and appropriate data selection. It is important for a manager to view possible complications when determining whether a DSS would be beneficial. In order to select or develop a DSS, managers need to look at costs, customer relations, supplier relations, how the DSS will impact management, and the possible impact on industry structure and competition. Finally, a DSS can give a company a competitive advantage if it is implemented and becomes an asset in the corporation, is unique and proprietary to the organization, and is sustainable for a period of 3 years or more.

Four Broadband Systems

There can be no question that speedy internet access is important. Therefore, learning about the variety of broadband systems available is essential for any person desiring to understand computing systems. First, it is important to define broadband. According to Bates and Gregory (2001), broadband refers to "any wide-are communication channel of significant bandwidth equal to or exceeding 56 Kbps" and "any one of a specific set of service offerings from common carriers (SMDS, T1 and T3, ATM, frame relay, SONET, and so on) asserting that it is the specific technique of using coaxial cable to carry multiple channels over LAN distances" (p. 658). Furthermore, with broadband, several frequencies can exist in the same media.

There are four main types broadband service: digital subscriber line (DSL), cable modem, wireless internet, and satellite. DSL works over local telephone network wires, which means that it is relatively inexpensive and simple to use. A cable modem modulates a data signal over traditional cable television infrastructure, over the unused bandwidth. A wireless LAN (WLAN) uses radio waves to carry a network connection to local computers. WLAN are often used in conjunction with other broadband methods, which the WLAN connects to for Internet access. Finally, satellite Internet services, including one-way multicast, one-way with terrestrial return, and two-way satellite access, can be used when other broadband options are not feasible, such as for mobile locations.

Helpdesk Service Quality

Even if a company excels in every other area, poor helpdesk quality can leave customers with a bad taste in their mouths. This is largely due to a focus on call resolution, rather than call quality. (Cross, 2000). Therefore, the author engaged in a survey-type study to determine help-desk quality during the first six hours of the day vs. The last two hours of the day. The experiment gave the author some insight into current help-desk quality and suggested areas for improvement. Perhaps more importantly, the experiment gave the author the ability to successfully design customer satisfaction surveys.

One of the most alarming findings was that 40% of people reported dissatisfaction with the results of their helpdesk phone call. Furthermore, 23% of people believed that answer-speed was a problem during the last two hours of the day. However, this was an improvement over the 40% who indicated it was a problem during the first six hours, which is probably due to the fact that more calls come in during the morning. Therefore, I learned that helpdesks should arrange staff to account for call differences. Contrary to what one might expect, given the higher call volume in the morning, people report higher helpdesk courtesy in the earlier hours than the later hours. However, satisfaction was high, regardless of the time of the call. The reverse was true for how happy the subjects were with the services given; people reported being more content with the solutions given later in the day. Even with that, most people reported being neutrally satisfied, or worse, with the call resolution. Finally, given that approximately half of respondents indicated that they were comfortable solving their own computer solutions, customer service might be improved by granting customers greater access to training and problem-solving solutions.

Conclusion

The coursework for the author's MBA has been helpful in a variety of ways. Not only has the author gained exposure to various different computing systems, software, hardware, and accessibility options, but also to different aspects of leadership and successful management opportunities. In fact, because technological developments mean that knowledge about computers will become obsolete within a relatively short period of time, the author was not surprised to discover that he learned more from the information about being a successful manager than from the information specifically directed towards the application of computer systems. After learning what is required to run a successful business, the author feels confident that he has gained the necessary skills to determine what computer systems will aid his future business endeavors, regardless of what type of technological changes occur in the future.