Organisational Management and Information Systems - CIMA

Organisational Management and Information Systems

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| Management Accounting Performance Evaluation | Management Accounting Decision Management | Organisational Management and Information Systems | Integrated Management | Financial Accounting and Tax Principles | Financial Analysis |

First examined in May 2005

Syllabus outline

The syllabus comprises:

Topic		Study weighting
A	Information Systems	20%
B	Change Management	10%
C	Operations Management	20%
D	Marketing	20%
E	Managing Human Capital	30%

Learning aims

Students should be able to:

describe the various functional areas of an organisation and how they relate to one another,
apply theories, tools and techniques appropriate to a functional area in support of the organisation’s strategy,
prepare reports and plans for functional areas,
evaluate the performance of functional areas.

Assessment strategy

There will be a written examination paper of three hours, with the following sections, as from the May 2007 exam.

Section A - 40 marks
A variety of compulsory objective test questions, each worth between two and four marks. Mini-scenarios may be given, to which a group of questions relate.
Section B – 30 marks
Six compulsory short answer questions, each worth five marks. A short scenario may be given, to which some or all questions relate.
Section C – 30 marks
One question, from a choice of two, worth 30 marks. Short scenarios may be given, to which questions relate.

Learning outcomes and Syllabus content

A - Information Systems - 20%

Learning outcomes

On completion of their studies students should be able to:

explain the features and operations of commonly used information technology hardware and software;
explain how commonly used technologies are used in the work place;
identify opportunities for the use of information technology (IT) in organisations, particularly in the implementation and running of the information system (IS);
evaluate, from a managerial perspective, new hardware and software and assess how new systems could benefit the organisation;
recommend strategies to minimise the disruption caused by introducing IS technologies;
explain how to supervise major IS projects and ensure their smooth implementation;
evaluate how IS fits into broader management operations.

Syllabus content

Introduction to hardware and software in common use in organisations.
Hardware and applications architectures (i.e. centralised, distributed, client server) and the IT required to run them (PCs, servers, networks and peripherals).
General Systems Theory and its application to IT (i.e. system definition, system components, system behaviour, system classification, entropy, requisite variety, coupling and decoupling).
Recording and documenting tools used during the analysis and design of systems (i.e. entity-relationship model, logical data structure, entity life history, dataflow diagram, and decision table).
Databases and database management systems. (Note: Knowledge of database structures will not be required.)
The problems associated with the management of in-house and vendor solutions and how they can be avoided or solved.
IT-enabled transformation (i.e. the use of information systems to assist in change management).
System changeover methods (i.e. direct, parallel, pilot and phased).
IS implementation (i.e. methods of implementation, avoiding problems of non-usage and resistance).
The benefits of IT systems.
IS evaluation, including the relationship of sub-systems to each other and testing.
IS outsourcing.
Maintenance of systems (i.e. corrective, adaptive, preventative).

B - Change Management - 10%

Learning outcomes

On completion of their studies students should be able to:

explain the process of organisational development;
discuss how and why resistance to change develops within organisations;
evaluate various means of introducing change;
evaluate change processes within the organisation.

Syllabus content

External and internal change triggers (e.g. environmental factors, mergers and acquisitions, re-organisation and rationalisation).
The stages in the change process.
Approaches to change management (e.g. Beer and Nohria, Kanter, Lewin and Peters, Senge et al.).
The importance of managing critical periods of change through the life cycle of the firm.

C - Operations Management - 20%

Learning outcomes

On completion of their studies students should be able to:

evaluate the management of operations;
analyse problems associated with quality in organisations;
evaluate contemporary thinking in quality management;
explain the linkages between functional areas as an important aspect of quality management;
apply tools and concepts of quality management appropriately in an organisation;
construct a plan for the implementation of a quality programme;
recommend ways to negotiate and manage relationships with suppliers;
evaluate a supply network.
explain the concept of quality and how the quality of products and services can be assessed, measured and improved.

Syllabus content

An overview of operations strategy and its importance to the firm.
Design of products/services and processes and how this relates to operations and supply.
Methods for managing inventory, including continuous inventory systems (e.g. Economic Order Quantity, EOQ), periodic inventory systems and the ABC system (Note: ABC is not an acronym. A refers to high value, B to medium and C to low value inventory).
Strategies for balancing capacity and demand including level capacity, chase and demand management strategies.
Methods of performance measurement and improvement, particularly the contrast between benchmarking and Business Process Re-engineering (BPR).
Practices of continuous improvement (e.g. Quality circles, Kaizen, 5S, 6 Sigma).
The use of benchmarking in quality measurement and improvement.
Different methods of quality measurement (i.e. operational, financial and customer measures).
The characteristics of lean production: flexible workforce practices, high-commitment human resource policies and commitment to continuous improvement. Criticisms and limitations of lean production.
Systems used in operations management: Manufacturing Resource Planning (MRP), Optimised Production Technologies (OPT), Just-in-Time (JIT) and Enterprise Resource Planning (ERP).
Approaches to quality management, including Total Quality Management (TQM), various British Standard (BS) and European Union (EU) systems as well as statistical methods of quality control.
External quality standards (e.g. the various ISO standards appropriate to products and organisations).
Use of the Intranet in information management (e.g. meeting customer support needs).
Contemporary developments in quality management.
The role of the supply chain and supply networks in gaining competitive advantage, including the use of sourcing strategies (e.g. single, multiple, delegated and parallel).
Supply chain management as a strategic process (eg. Reck and Long’s strategic positioning tool, Cousins’ strategic supply wheel).
Developing and maintaining relationships with suppliers.

D - Marketing - 20%

Learning Outcomes

On completion of their studies students should be able to:

explain the marketing concept;
evaluate the marketing processes of an organisation;
apply tools within each area of the marketing mix;
describe the business contexts within which marketing principles can be applied (consumer marketing, business-to-business marketing, services marketing, direct marketing, interactive marketing);
evaluate the role of technology in modern marketing;
produce a strategic marketing plan for the organisation.

Syllabus Content

Introduction to the marketing concept as a business philosophy.
An overview of the marketing environment, including societal, economic, technological, physical and legal factors affecting marketing.
Understanding consumer behaviour, such as factors affecting buying decisions, types of buying behaviour and stages in the buying process.
Market research, including data gathering techniques and methods of analysis.
Marketing Decision Support Systems (MDSS) and their relationship to market research.
How business to business (B2B) marketing differs from business to consumer (B2C) marketing.
Segmentation and targeting of markets, and positioning of products within markets.
The differences and similarities in the marketing of products and services.
Devising and implementing a pricing strategy.
Marketing communications (i.e. mass, direct, interactive).
Distribution channels and methods for marketing campaigns.
The role of marketing in the strategic plan of the organisation.
Use of the Internet (e.g. in terms of data collection, marketing activity and providing enhanced value to customers and suppliers) and potential drawbacks (e.g. security issues).
Market forecasting methods for estimating current (e.g. Total Market Potential, Area Market Potential and Industry Sales and Market Shares) and future (e.g. Survey of Buyers' Intentions, Composite of Sales Force Opinions, Expert Opinion, Past-Sales Analysis and Market-Test Method) demand for products and services.
Internal marketing as the process of training and motivating employees so as to support the firm’s external marketing activities.
Social responsibility in a marketing context.

E - Managing Human Capital - 30%

Learning Outcomes

On completion of their studies students should be able to:

explain the role of the human resource management function and its relationship to other parts of the organisation;
produce and explain a human resource plan and supporting practices;
evaluate the recruitment, selection, induction, appraisal, training and career planning activities of an organisation;
evaluate the role of incentives in staff development as well as individual and organisational performance;
identify features of a human resource plan that vary depending on organisation type and employment model;
explain the importance of ethical behaviour in business generally and for the Chartered Management Accountant in particular.

Syllabus Content

The relationship of the employee to other elements of the business plan.
Determinants and content of a human resource (HR) plan (e.g. organisational growth rate, skills, training, development, strategy, technologies and natural wastage).
Problems in implementing a HR plan and ways to manage this.
The process of recruitment and selection of staff using different recruitment channels (i.e. interviews, assessment centres, intelligence tests, aptitude tests, psychometric tests).
Issues relating to fair and legal employment practices (e.g. recruitment, dismissal, redundancy, and ways of managing these).
Issues in the design of reward systems (e.g. the role of incentives, the utility of performance-related pay, arrangements for knowledge workers, flexible work arrangements).
The importance of negotiation during the offer and acceptance of a job.
The process of induction and its importance.
Theories of Human Resource Management (e.g. Taylor, Schein, McGregor, Maslow, Herzberg, Handy, Lawrence and Lorsch).
High performance work arrangements.
The distinction between development and training and the tools available to develop and train staff.
The importance of appraisals, their conduct and their relationship to the reward system.
HR in different organisational forms (e.g. project-based firms, virtual or networked firms).
Personal business ethics and the CIMA Ethical Guidelines.

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