Management Ratios of Industrial Information Services - Fid 686

Abstract

Amanagement ratio describes in condensed form sorne special feature of thephenomenon it is supposed to measure. It involves, if correctly chosen, easilyreadable, essential and abridged information on the subject, giving a snapshot of the situation. A condition for the use of management ratios is that the organization or company has set up objectives and that the management is interested in achieving these goals. Each objective corresponds toa management ratio. They can be used in management, in planning and control and to analyze the situation orto estima te futuresituations. They can also be used for training, motivation and communicationpurposes and especially to encourage and activa te the personnel. When managementratios are chosen and used, their relevance, reliability and validity are important factors to keep in mind.The management ratio system is built up in sessions, which at the same time function as a training process for the personnel. The determination of the management ratios of information services begins with analyzing the activities, in other words the mission, the business idea and the critical success factors of the information service.On this basis objectives can be drawn up, the achievement ofwhich is measured bymanagement ratios. Consequently, the same methods which are used by the companyas a whole can also be applied in the information service to measure attained results, with these management ratios being attached to the management ratio system of the whole company. The frequency of the ratio reports depends on the frequency of reporting in general in the surrounding organization and on the nature of the ratio.Still, it is important that the right ratios are reported often enough to the right person, so that they can be acted u pon in time.There is no universally applicable management ratio system, but every information service needs its own management ratios, which depend on the structure and activities of the surrounding organization. Management ratios have to be chosen individuallyalthough common guidelines can be found. The management ratios of informationservices should be used when drawing conclusions about its activities and themanagement should act on them. Management ratios actas a part of the informationsystem as well as a tool for an objective - oriented management, a support todecision-making.