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Questions and answers

We hold events twice a year which give you the opportunity to ask an experienced tutor a question.

You can use our 'ask a tutor' events to put a syllabus topic that you are having problems with to our tutors. All you need to do is log into your My CIMA account during the advertised days and submit your question using our online form. We'll get a response to you by email as soon as possible.

Details and dates of our next event will be published here and in Velocity, our student e-magazine.

Below are questions and answers relating to paper P4 Organisational Management and Information Systems from past events.

Question

Could you please explain the theory of scientific management by Frederick W. Taylor?

Answer

Scientific management suggests that there is a ‘science’ of work – in other words there is a specific organized method that can be applied to all jobs by analyzing how the job is and should be done. Training workers to do a job following a specific routine or process improves efficiency. I always think of Taylor as treating people as machines – a means of getting routine tasks performed in a specific way so as to get the most out of them. They are largely treated as rational economic beings in this sense – they come to do a fair day’s work for a fair day’s pay. It also introduced the idea of a measured daily output – a standard or budgeted output with which you will be familiar from standard costing.

Question

Could you please help explain the difference between Value Chain and Value System?

Answer

A value system is simply a series of organisations linking their value chains. For instance Levi Strauss link their systems with their main customer Sears and their main supplier Milliken [denim supplier] who in turn link their system with Du Pont who supply the fibre to produce the denim.

Question

To what extent do I have to learn about lean production for the exam?

Answer

You would certainly need to know the key aspects of lean production and explain the benefits associated with it.

Hopefully the following will be useful:

Lean production as the name suggests is a philosophy that aims to systematically eliminate waste including

• Inventory waste, Excessive waiting, Defective units, Wasted effort, Unnecessary transportation.

Dankbaar explains the process as:

• Making use of the workforce by giving them more than one task
• Cross functional management and employee involvement
• Integrating direct and indirect work
• Taking advantage of quality circles

This leads to the manufacture of a larger variety of products at lower cost and higher quality with less input compared to mass production. To achieve these goals lean production will rely on:

• Flexible workforce practices
• High commitment human resource policies
• Commitment to continuous improvement

Question

Is network sourcing a similar term to delegated sourcing?

Answer

Delegated sourcing is when the decision is placed into the hands of the business areas that express need. They are more likely to better understand what is needed, and from what sources, than those in remote functions or activities who possibly have only a passive interest.

In network outsourcing the emphasis is on the skills and expertise of the subcontractors who possess an in depth knowledge of their customer’s products and needs. This hierarchical system relies heavily on those suppliers at the top who in turn rely on the suppliers beneath them. Communication is thus vertical and horizontal between customer and suppliers and supplier to supplier.

This should indicate to you that the two philosophies are somewhat different.

Question

How many stages are there in system development life cycle, can you please explain these?

Answer

There are 6 main stages in the systems development life cycle

Planning – how the development will take place

Analysis – the pros and cons of the existing system and what users require from the new system

Design – The paper (or these days computer based) process of diagramming the data flows, processes, and database relationships and structures ultimately leading to a physical (paper based) design or blueprint

Development – how the system will be produced – made in house or bought in

Implementation – the modern term for this is “roll out”, what approach to systems changeover, training and file conversion  will be adopted

Review – What mechanisms will be put in place to monitor and review the performance of the system and assess how effective the project was.

Question

If I was to be asked to give a description of a system development process or elements of the process how do I go about it? Supplier selection for a new IT system - where do I start from? If I was asked to give a description of a feedback loop or elements of a system? 

Answer

Use a recognised model such as the Systems Development Life Cycle or the expanded version of SSADM. Depending on the mark tariff work on 2/3 marks per well explained stage using 5 – 6 stages.

Treat supplier selection for a new IT system as you would a supplier for any equipment or service you might buy personally. Consider factors such as –

• Financial stability
• Reputation
• Customer portfolio testimonials
• Trading history
• Experience in supplying into the particular industry

Start your answer by dealing with the basic theoretical principles. A feedback loop is a key element of a control system that amends inputs and or processes to bring the system back into equilibrium – in other words meeting its objectives.

You should also cover the features of sensors, effectors and standards and their role in the overall systems as well as the principle elements – inputs, outputs & processes.

Question

I have been working through some past papers and have come to a question I need some help on.

In the question I am asked to apply the systems theory concept of sensor, comparitor and effector to an executive information system. I have looked through all my books and cannot find an answer that I am happy with.

Can you please advise?

Answer

The basic concepts of systems theory can be applied to any type of system. It is unlikely that in any text book you would find details of how these apply to a wide range of situations notwithstanding that there may be one or two general examples.

With reference to your question, you need to consider the specific purpose of each element and relate it to the activities comprising an EIS. A sensor is simply a device which measures outputs so you need to consider what the outputs of an EIS should be. These will relate to information for strategic decision making and will be compared (Comparator) to the required standard (objective), what information strategic managers will have decided they  need, to effectively run the business. If there is a gap or differential between what they are getting and what they need they will make appropriate amendments to the system (replace, upgrade or reconfigure) [Effector], until their requirements are met.

Generally it is all about monitoring against desired objectives and in EIS too much focus on internally generated information is the problem.

Please note that the responses given are the tutors' own. They are not definitive nor do they necessarily reflect the views of CIMA.

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