Reporting systems such as those described in this chapter require sophisticated information systems to enable them to work properly - not only for competitive purposes, but also for purposes of performance evaluation. Top management must receive accurate and timely information regarding sales, production, and f financial results to be able to compare actual performance with goals and to take corrective action where necessary. Most international reporting systems require information feedback at one level or another for financial, personnel, production, and marketing variables.
The specific types of functional reports, their frequency, and the amount of detail required from subsidiaries by headquarters will vary. Neghandi and Wedge surveyed the types of functional reports submitted by 117 MNCs in Germany, Japan, and the United States. They found that U.S. MNCs typically submit about double the number of reports than do German and Japanese MNCs, with the exception of performance reviews. German MNCs submit a few more reports than do Japanese MNCs. U.S. MNCs thus seem to monitor far more through specific functional reports than do German and Japanese MNCs. The Japanese MNCs put far less emphasis on personnel performance reviews than do the U.S. MNCs and the German MNCs - a finding consistent with their culture of group decision making, consensus, and responsibility.
Unfortunately, the accuracy and timeliness of information systems are often less than perfect. This is particularly so in less developed countries, where managers typically operate in conditions of extreme uncertainty. Government information, for example, is often filtered or fabricated; other sources of data for decision making are usually limited. Employees are not used to the kinds of sophisticated information generation, analysis, and reporting systems common in developed countries. Their work norms and sense of necessity and urgency may Also confound the problem. In addition, the hardware technology and the ability to manipulate and transmit data are usually limited. The adequacy of management information systems (MIS) in foreign affiliates is a sticky problem for headquarters managers in their attempt to maintain efficient coordination of activities and consolidation of results. Another problem is the noncomparability of performance data across countries, which hinders the evaluation process.
The use of the Internet has, of course, made the availability and use of information attainable instantaneously. Many companies are starting to supply Internet MIS systems for supply-chain management. European partners Nestl S.A. and Danone Group, world leaders in the food industry, set up Europe's first Internet marketplace for c-procurement - in the consumer goods sector, called CPGmarket.com, saying:
CPGmarket.com will enhance the efficiency of logistics while at the same time reducing procurement costs for businesses producing, distributing and selling consumer goods. CPG (based on mySAP.com c-business platform) allows companies not only to buy and sell, but also to access industry information. - - . Participants wifi benefit from a more efficient market, reducing costs through higher transaction efficiency and simplified processes.
The Role of Information Systems : Organizing Structure article from Formulating Implement Catagory The Role of Information Systems
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