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Project Report on
Management Information Systems for Tourism Hospitality Organisation

Prepared By
Ansuman Chattopadhyay (14PGP003)
Arijit Hawlader (14PGP007)
Avinash Baxla (14PGP009)
Choudhari Amit prakash (14PGP012)
Saunak Saha (14PGP0044)
Somal Kant (14PGP0043)
Praveen (14PGP0056)

Introduction to the Project

The hospitality industry includes a broad category of fields within the service industry including
restaurants, theme parks, lodging and additional fields within the tourism industry. The basic
purpose of this project is to explore a wider understanding of the use of Management information
system and Information technology and various other emerging concerns for a globalised
company like McDonald, Pizza Hut, and Burger King Etc. The project also explores the need of
strategic Customer relationship management and the use of Enterprise resource planning in the
attainment of the overall business strategy of an organization.

Objectives of the Project

To explore the nature and need Management information system and Information

technology for Tourism and Hospitality based organization

To analyze Information technology plans and policies of organization.
To identify the emerging issues related to Information technology for Tourism and
Hospitality based organization
To understand the need of the need of strategic Customer relationship management and
the use of Enterprise resource planning for attaining overall business strategy of an
organization

Research Methodologies
This project makes an extensive use of secondary sources of data. The information has been
collected through the official website of Mc Donalds, Pizza Hut, and Burger King etc, news and
articles related to the hospitality industry and news and journals those company provided through
various websites.

Introduction to MIS
Management information system, or MIS, broadly refers to a computer-based system that
provides managers with the tools to organize evaluate and efficiently manage departments within
an organization. In order to provide past, present and prediction information, a management
information system can include software that helps in decision making, data resources such as
databases, the hardware resources of a system, decision support systems, people management
and project management applications, and any computerized processes that enable the
department to run efficiently.

Role of MIS within Tourism and Hospitality context

Management Information System is a general term for the computer systems in an enterprise that
provides information about its business operations. It typically includes computerized systems to
gather relevant data continuously, from both the internal and external environment of an
organization. Its objective is to design and implement procedures, processes and routines that
provide suitable detailed reports in an accurate, consistent and timely manner. For e.g: MIS
application in McDonalds directs managers in the management of the employees and the
ordering and tracking of hamburgers, buns, potatoes and soft drinks. Because restaurants are
consistently busy throughout the day, the MIS is called upon to assist the manager in maximizing
the scheduling of individuals to cook and serve the food. The MIS further helps track restaurants
cash flow and guard against inaccuracy and waste.
MIS are typically computer systems that are used for managing of five primary components:
hardware, software, data and information for facilitating decision making, procedures for design,
development and documentation of data, people in the form of individuals, groups or
organization. In the most basic term, MIS is the term used to define how individuals, groups and
organizations evaluate, design, implement, manage, and utilize systems to generate information
to improve efficiency and effectiveness of decision making.
Management Information System relates to the organized and systematic:
1) Collection
2) Organization
3) Distribution
4) Storage of wide information
5) Managerial Control and analysis of data and information pertaining to a business operation of an
organization.

Role of MIS
In hospitality industries, the use of MIS is basically focused on the following areas:
1) Organization-wide information: for a customer-focused industry like tourism and hospitality,
MIS provides a big picture regarding the overall organization wide information. It ensure
updated and strategically important information in the form of data and reports
2) Decision-making process: the output of MIS is available in the form of reports which can be
used extensively in the decision-making in the organization. It also helps the organization to
prepare strategically for the upcoming business endeavor.
3) Managerial control and analysis: Better formulated, integrated and centrally consolidated data
and information provides a manager with an insight regarding the overall managerial process of
an organization. It enables a manger to have a firm control over the managerial activities and
process.
4) Computer-based system: MIS being a computer based process enables a tourism and
hospitality industry to provide a swift and effective service to its customers. Real time
information about the organization is available which enables the organization to cater to the
needs of the customers in a prompt and effective way.

Importance of Management Information System for Hospitality and Tourism

Industry
Industries which are focused on service as a product offering, MIS enables it to provide
information for a decision support process of management. It facilitated the organization to
achieve the business goals in a most efficient manner. Since the decision making is not restricted
to a particular level in globalised company, the MIS is expected to support all the levels of the
management in conducting the business operations.
1) It enables organizations to strength themselves and identify and address weaknesses due to the
presence of revenue reports, employee performance report, sales report and so on.
2) Availability of strategic reports at a right time will help organization to tap the opportunities at
the real time and address the weakness, finally giving an organization a competitive advantage.

3) Properly generated reports will help the management to identify the emerging challenges and
thus prepare the company before hand to tackle with those challenges.
4) Meaningful use of strategically formulated reports will enable global companies to maximize the
benefit of the opportunity coming from the external environments and minimize the effects of the
harmful events.
5) MIS system also gives a big picture of the company and acts as a communication and planning
tool.
6) It also help to eliminate the delays and ineffectiveness in the handling of the customers as a
updated report is available regarding the taste, preference of the customers.
7) Similarly, organization can ensure that the effective management of customer data can help the
company to perform direct marketing and various promotional activities.
8) MIS also helps the Tourism and hospitality industry in strategic planning, management control,
operational control and transaction processing by providing with appropriate reports and
information.
9) MIS also helps the junior management by facilitating with the operational data for planning,
scheduled control and helps them further in decision-making at the operation level to correct an
out of control situation.
10) Besides assisting the middle level and the top level in execution of their tasks, MIS also plays
the role of information generation, communication, problem identification and this finally
assisting the decision-making. Hence MIS plays a vital role in the overall management,
administration and operation of a global Tourism and Hospitality based organization.

Use of IT System in an Organization to attain Competitive

Advantage
Information technology can be used in various functions. Employee can keep relation with others
by using a global virtual network.
Various IT components can be used to enlarge service to the consumers. Different customized
software and software components are can be used to improve effectiveness. A large section of
distribution is also can be automated. Information Technology is also used in promotional
activities. Through technology improvements such as FTPS help desk service, network and
application consolidation and other technology achievements which are deeply enhanced and
eventually gives benefit to millions of customers in global world.
Use of IT system in an organization brings various opportunities to an organization. While
ensuring that the company achieves various benefits from the use of IT system, the company also

makes sure that such advantages add-up for attaining competitive advantage to the organization.
Basically, IT system implementation in an organization provides following benefits that enables
an organization to strengthen its core competencies.
Globalization is the most basic benefit of IT system installment. Company can be
empowered by IT system to span all over the world, with its target customers scattered
throughout the globe.
Lower operational cost can be ensured as MIS makes communication cheaper, quicker
and more efficient. Use of internet has enabled direct communication from different part
of the world in a most cost-effective way.
Computerization of the business process has brought cost effectiveness by streaming
business to make them extremely cost effective. It can help to increase productivity
which ultimately gives rise to profit that means better pay and less strenuous working
conditions.
For a global company Hospitality and tourism based company like McDonal
ds, Radisson, Burger King etc, the use of IT helps to bridge the cultural gap by helping
people from different culture to communicate with one another, and allow for the
exchange of views and ideas.
Business never sleeps these days. For hospitality based industry accessibility is an
important weapon to survive in the market. IT has made it possible for businesses to be
open 24*7 all over the globe. People can access the service of a company in a country by
sitting in another country.
Use of modern and sophisticated IT system can enhance the customer service and
providing a company an edge in what it offers hence ensuring competitiveness.
IT helps to improve internal performance, infrastructure performance and thus increasing
product quality at a reduced cost. It can help streamline and integrate channels to market,
create new channels and integrate multiple channels.
IT concepts and issues are ever emerging. Use of IT in training and knowledge sharing
can enhance the performance of knowledge of workers and enhance organizational
learning. It also helps to establish a strong rapport to customers, suppliers and other
stakeholders thus ensuring effective supply chain and customer relationship.

Type of Database and Data warehousing in Tourism and Hospitality

There are variety of Database management system used in a tourism and hospitality industry
each of them providing unique advantages and disadvantages. The use of a particular database
model is based on the need of the organization, its size, the volume of data to be mentioned, cost
installation and so on.
A data warehouse is a relational database that is designed for query and analysis rather than for
transaction processing. It usually contains historical data derived from transaction data, but it can
include data from other sources. It separates analysis workload from transaction workload and
enables an organization to consolidated data from several sources

Types of Database in Tourism and Hospitality Industry

1) Hierarchical databases
Hierarchical Databases have been used for a long time. It is one of the oldest methods of
organizing and storing data and it is still used use by Tourism and Hospitality based
organizations for making travel reservations. This mode of database management is organized in
pyramid fashion, forming a structure like that of branch of tree extending downwards. Related
records are grouped together which form the higher level records and lower-level records.
Hierarchical databases work by moving from the top down. A record search is conducted by
starting at the top of the pyramid and working down through the tree from parent to child until
appropriate child record is found.
For a Tourism and Hospitality based industry, the advantage of Hierarchical model is that they
can be accessed and updated rapidly because the tree-like structure and the relationships between
records are predefined. However, this model of database is criticized as the relationship between
the lower level records is not permitted if they are form different parents. Also this model of
database management is so old and rigid that addition of a new field record requires that the
entire database be redefined.

2) Network databases
This model of database is similar to hierarchical model in the use of hierarchical structure.
However, there are few differences. Instead of looking upside-down tree, a network database
looks more like an interconnected network of records. The advancement over drawback of

Hierarchical model is that, each child or member at lower level can have more than one parent or
owner. This model of database allows more connections between different types of data and
hence is considered flexible and more useful. As like to the hierarchical model, network
databases must be defined in advance.
The major drawback in use of network model is the number of connections that can be made
between records.
3) Relational databases
Here the relationships between data files id relational rather than hierarchical. Relational
databases connect data in different files by using common data elements or a key field. Data in
relation databases is stored in different tables; each having a key filed that uniquely identifies
each row. This model is more flexible as it allows the prompt search of data in a real time by
making use of the unique key.
For a tourism based industry use of relational database makes more sense as customer
information can be linked to specific product information and can be accessed easily.
4) Object-oriented databases
It is more sophisticated as it makes uses of graphics, photographs audio and video etc. the model
can be used to store data from a variety of media sources, such as photographs and text, and
produce output in a multimedia format. Hospitality industry makes use of this mode to get
incredible multimedia capability. Demerits that it brings are that it is more costly and many
organizations are reluctant to install this model.

Use of E-Commerce and MIS in the Industry

Information is the lifeblood of an organization. At the contemporary time, more than other
resources, organization seems to focus on the tactful collection and use of information for
success in the short and long run. As because tourism is an information rich industry,
organization focus on attaining quality information of not only the customer domain but the
external environment and forces as a whole. In such connection, the development of internet
services by players in the tourism industry assists with the goal of attaining valuable information

as e-tourism offers opportunities for speedy communication and global access with minimal
expense.
The benefit of management of the information via the use of ecommerce and MIS is of
paramount to the industry. Basically, among various industry sector hospitality and tourism
industry has probably been the most affected industry by the internet. The industry depends on
the distribution of information about its product and services. Also the industry makes use of
internet based ecommerce tools and techniques to collect, record, and disseminate information
about various stakeholders: customers, public, media, government, and so on.
E-Commerce
Ecommerce is a new way of conducting, managing and executing business transactions using
modern information technology. Basically, the internet is the main technology whereby all
elements of a commercial transaction(advertising, production, purchase, payment and the
delivery of the services) can be conducted on an interactive basis with more than one person,
unconstrained by time and space, in a multimedia environment at a relatively low cost. It is a
type of industry where buying and selling of product or service is conducted over electronic
systems such as the internet and other computer networks. It makes use of technologies such as
mobile commerce, electronic fund transfer, supply chain management, internet marketing, online
transaction processing, electronic data interchange, inventory management systems, and
automated data collection systems. It makes use of set of technologies, applications, and business
processes that link business, consumers, and communities for buying, selling, and delivering
products and services. It is also used for integrating and optimizing processes within and
between businesses.

MIS
Management Information System is a general term for the computer systems in an enterprise that
provides information about its business operations. For eg: McDonald makes use of Transaction
Process System to make tactful use of information about customers. Generally MIS details out an
organized approach to the study of the information needs of an organizations management at
every level in making operational, tactical and strategic decisions. Its objective is to design and
implement procedures, processes and routines that provide suitable detailed reports in an
accurate, consistent and timely manner.

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Benefits in Light of Attaining Short term and Long term Objectives

For information rich industry, use of ecommerce technologies helps speed up the flow of
information and to eliminate unnecessary human interventions by executing routine business
transactions quickly and accurately, 24 hours a day. For e.g.: MIS system is used to produce
periodic reports such as daily list of employees and the hours they work, monthly expense report
and so on. Some of them are as follows:
1. Expand Geographical Reach
Ecommerce enables an organization to acquire customers across the country and around the
world. Making use of ecommerce typically means no limits as to whom and where we can sell
our products. It enables an organization to go with: sell to anyone, anywhere, anytime.
The global operation of organizations can be facilitated by ecommerce.
2. 24*7 Open
Customer base can be increased by ensuring 24*7 accesses to its product offerings. Customer can
access the product offerings of the hotels and other tourism based industry irrespective of time
and location constraints. It allows us to have unlimited store hours, giving the customers 24
hours a day, 7 days a week access to shop and buy items. In addition, the cost attached to having
of 24*7 open stories much less than maintaining a physical storefront, providing an additional
benefit to the organization.
3. Increase Customer Satisfaction
Customers will have an extra access to product updates, shipping details, billing information and
more. Also as there is no boundaries, customers can shop from home, work, or anywhere they
can make a connection. Also the product booking, purchase and shipments will be faster.
4. Build Customer Loyalty
Use of ecommerce will help create an easier means for customers to purchase items also
facilitating with a unique way to display and describe about the product offering in an
informative, visual and interactive way. Company can enrich the customers loyalty each time as
customer visit them, making ecommerce a great for improved customer satisfaction and visitor
loyalty.

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5. Helps to Create New Relationship Opportunities

Use of ecommerce will enable a location free access to the product offerings, the business will
avail with the opportunity to establish new relationship with the customers and other
stakeholders. Customers will know about the services available, product suppliers will request to
add their products, and other business will approach to partner with the organization.
6. Increase Brand or Product Awareness
By reaching to the millions of customers all over the globe, displaying the site prominently to
them will allow organization to enhance and strengthen brand name and this will also increase
awareness about the product line.
7. Potential to Increase Overall Business Sales
With a web site, a company can automatically become a global provider of goods and services,
with an edge over the larger companies. As such internet acts as an effective channel to reach
new customers. Organization has to make sure that its services are available 24*7 via its internet
portal.
8. Potential to Increase Company Profits and Decrease some Costs
Opening an online extension of the business outlet is a great way of boosting sales and
potentially profits. As there will be a large base of target customers throughout the world, the
chance are high that the company will have large sales volume and hence higher profit margin.
9. Facilitates easy dissemination of Information
Decision Support System makes use of the customers information to conclude to a valid and
logical decision. The decision can be routine or of occasional type.
Thus the use of MIS and e-commerce provides an organization with various advantages as
mentioned above. Such advantages when tapped righteously, at a right time can enable an
organization to achieve the short term goals which further add up to achieve the long term goals
in an effective way.

System Design
Business

Requirements

of

Tourism

and

Hospitality

System analysis defines the system requirements and system design creates the ways to fulfill
them. System design is the next step of system analysis which details out the identified criteria
are to be implemented. For a giant hospitality and tourism based company, the need of a unique

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system design is a must. System design requirement specifies system specifications which are
given below:
Input: Every process in a system demands input. The quality of the output solely depends in the
nature and quality of the inputs and the processing systems. Every system needs some input.
Here, input may define as a raw for the system. Customer order for beverages, drinks and
lunches etc can be included into input of this companys system design. Quality of input must be
ensured for an effective system design.
User interface: An interactive and easy interface between customer and company is essential.
User interface means the interface between customer and company. The web portal can be
regarded as user interface. User interface must be simple to use, logical and error free. Complex
or sophisticated user interface may lower the customer satisfaction. Website should be easy to
navigate, and easily accessible.
Design of database: Database is a collection of large volume of raw inputs that form
information when processed. Design of database refers the use of logical data model with
possible speed. Input data into database is very easy matter but maintaining them and acquiring
them when necessary is not so easy. Tactical sorting and arrangement of the data for the future
purpose is must. As such, organization must introduce an appropriate file and record to facilitate
the use of database.
Processing: Conversion of the data into meaning information is a must. After getting input via
the integration of user interface data are kept in database for processing. Data implementation by
using various application modules is the main activity of processing. Data gathered form
customer will not process automatically. Some kind of processing mechanism is needed for it.
For example, Enterprise Resource Planning (ERP) makes use of various data of the enterprise
system.
Output: Output is the processed form of the input that has been generated after passing through
the system process and that has gone through certain value addition process. Output refers
delivering asked service to customer and earns profit. In output, timing and quality are the major
concerns. Availability of quality service (output) to its customer is necessary for any
organization.
Control system: There must be some control mechanism to monitor the activities stated above.
Control in each step of the conversion process is essential. For e.g.: Input must stay in

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determined limit and reasonable. Processing of input must be consistence with organizational
procedures. Output may not always be of desired quality.
Security: The system should have some security mechanism to preserve data from various IT
security issues like password hacking, unauthorized access etc. The system should integrate with
anti-malware and anti-spyware and should have the ability of protecting itself from hackers
trying in getting unauthorized access. For a company which stores wide level of customers
information, the assurance of the safety of the customer data and information is required.
Documentation: Every process within the system should be documented. Documentation
provides a way to skip form the problems when they arise in the near future. These can also be
used as a reference whenever some sorts of changes or advancements are to be made.
Documentation is the only solution for any system related problems whenever they rise. So, the
system must have some documentation mechanism to record every process. It also helps
organization to keep track on employees activities of related field.

Multinational Hospitality and Tourism based company must have a simple and easy to use
system design with some unique competitive advantage. Basic, logical and easy to interface
system design is vital for success at this contemporary world of competition and technological
advancements.

Use of IT to Support Customer Relation Management

IT system can facilitate to maintain a database of information regarding the taste, preferences,
economic capacity of customers and various other information. An organization constantly keeps
on updating such variety of information. Keeping databases of an information enables to identify
who the target customers are, where they stay, what are their needs and preferences and so on.
Identification of valuable information about the customers enables it to serve to their unique
needs and wants in a prompt way and in an effective manner. A typical CRM is assisted and
supported by IT system that enables a formation of CRM systems.
Customer Relation Management (CRM) can keep a keen focus on customers as the key to
success of a business. CRM used information technology to create a cross-functional enterprise
systems that integrates and automates many of the customer-serving processes in sales,
marketing, and customer services that interacts with a companys customers.

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Benefits of CRM for an organization:

Use of CRM system in organization ensures the availability of sales reps with the software tools
and company data sources they need to support and manage their sales activities, and optimize
cross-selling and up-selling. For e.g.: sales prospect and product information, product
configuration, and sales quote generation capabilities. CRM can also give a real-time access to a
single common view of the customers, enabling them to check on all aspects of a customers
account status and history before scheduling their sales calls.
Needless to say CRM also help marketing professionals accomplish direct marketing campaigns
by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking
direct marketing mailings. Then the CRM software helps marketing professionals capture and
manage prospects and customer response data in the CRM database, and analyze the customer
and business value of companys direct marketing campaigns. CRM also assists in the fulfillment
of prospects and customer responses and requests by quickly scheduling sales contacts and
providing appropriate information on products and services to them, while ensuring that the
relevant data are captured for CRM database.
A CRM system provides service reps with software tools and real-time access to the common
customer database shared by sales and marketing professionals. CRM helps customer service
managers create, assign, and manage requests for service by customers.
Also, CRM allows business to identify and target their best customers-those who are the most
profitable to the business-so they can be retained as lifelong customers for greater and more
profitable services. It makes possible real-time customization and personalization of products
and services based on customers wants needs, buying habits, and life cycles. CRM can also keep
track of when a customer contacts the company, regardless of the contact point. And CRM
system can enable a company to provide a consistent customer experience and superior service
and support across all the contact points a customer chooses. All of these benefits would provide
a strategic business value to a company and major customer value to its customers.
Many company these days make use of various technologies to support the CRM. The use of IT
in Tourism and Hospitality industry is increasing at a speedy rate. For e.g: McDonald at present
time has been installing WI-FI hotspots in most of their restaurants globally. This model targets
more young and tech-people into the restaurants. Also company are using Electronic Payment
Model which quickens the ordering and payments of food, putting in a system that shortens
processing time, preparation time and payments.

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Role of Enterprise Resource Planning in Tourism and Hospitality

Enterprise Resource Planning
Enterprise Resource Planning (ERP) is the technological backbone of e-commerce, and
enterprise-wide transaction framework with links into sales order processing, inventory
management and control, production and distribution planning and finance. ERP is a crossfunctional enterprise system driven by an integrated suite of software module that supports the
basic internal business processes of a company. For example, ERP for a tourism and hospitality
industry will typically process data from and track the status of sales, inventory, delivery,
shipping, and invoicing, as well as forecasting the human resources requirements.
In tourism and hospitality industry, the use of ERP plays important role of running system on
front. Whatever decision are made, mostly are through the system of ERP. ERP is supported by
various other supports. This is the place where major decision making and their execution takes
place.
The installation of Enterprise Resource Planning (ERP) gives an integrated real-time view of its
core business processes, such as production, order processing, and inventory management, tied
together by Enterprise Resource Planning (ERP) application software and resources (such as
cash, raw materials, and production capacity), and the status of commitments made by the
business, no matter which department of unit of business has made an entry of the data. The
installation of ERP requires the availability of ERP techniques like: EDI, AMS,
CAD/CAM/CAE, DMS and so on.
For a tourism and hospitality based industry, ERP implementation typically consists of integrated
modules of manufacturing, distribution, sales, accounting, and human resource management
applications. For example, during the production of service/product, ERP assist in material
requirements planning, production planning, and capacity planning. Some of the sales and
marketing processes supported by ERP are sales analysis, sales planning, and pricing analysis,
while typical distribution applications include order management, purchasing, and logistics
planning. ERP systems support many vital human resources processes, from personnel
requirement planning to salary and benefits administration, and assist the execution of the most
crucial financial record keeping and planning.

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Benefits of ERP to Tourism and Hospitality Industry

ERP when installed in an organization can bring immense benefit. Such benefits help globalised
organizations in terms of significant business benefits. Many companies have created major
business values via the use of ER.
Some of the benefits that ERP provides to Tourism and Hospitality industry like:
1) Quality and Efficiency:
ERP creates a framework for integrating and improving a companys internal business processes
those results in significant improvements in the quality and efficiency of customer service,
production, and distribution of the product offering. The quality service offerings are enhanced at
a lower cost.
2) Decreased Costs
Many tourism based companies make the use of ERP for decreasing the cost in the transaction
processing and hardware, software, and IT support staff compared to the non integrated legacy
system that were replaced by their new ERP systems.
3) Decision Support
ERP provide vital cross-functional information on business performance quickly to managers to
significantly improve their ability make better decisions in a timely manner across the entire
business enterprise.
4) Enterprise Agility
Simplicity can be ensured in operation via the use of ERP. For e.g.: Installment of ERP breaks
down many hierarchical and departmental barriers of business processes, information systems,
and informational resources. Thus results in more flexible organizational structures, managerial
responsibilities, and work roles, and therefore a more agile and adaptive organization and human
resource that can tap the business opportunities in an effective way.

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IT Security Issues within the Tourism and Hospitality Industry

The use of the information technology in business presents major security challenges, poses
serious ethical dilemmas, and affects the society as a whole in a different ways.
The use of IT in businesses has had major impacts on society, and thus raises ethical issues in the
areas of the crimes, privacy, secrecy, individual freedom, employment, and so on. Also IT issues
bring concerns about the health, working conditions, etc.
However, IT has had beneficial results as well as detrimental effects on the society and the
people in each of the above mentioned areas, at the same time. For instance: computerization of
the purchasing process may have the adverse effect of eliminating peoples job, but also have the
beneficial results of improving working conditions and executing the designate tasks with higher
efficiency and quality.
Security issues in Hospitality and Tourism based industry are also in paramount numbers. For a
giant company with its operation throughout the globe, the security regarding the non-disclosure
of information, making use of customers information for different business proposes, making use
of the personal contacts for other than business use, tracking the taste and preference of the
customers, etc have been a major issues these day. More than this, sending of excess information
to the customers regarding various products and service offerings, making frequents calls to them
for the business surveys are also the emerging issues regarding the security of customers.
The concerns of privacy and security issues in Tourism industry are debatable as companies go in
using massive data and information of its customers for different purposed. The use of such
information has been made not only in facilitating the customers with the purchase decision, but
also for tracking the need and preference of the customers which has time and again brought
constant threat to the privacy issue of the customers.

Ethical and Privacy Issues on Use and Storage of Data.

Ethical Issues
Business ethics is concerned with the numerous ethical questions that managers must confront as
part of their daily business decision making. The issues of intellectual property rights, customer
and employee privacy, security of company records, and workplace safety are highlighted
because they have been major areas of ethical controversy in information technology.

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An employee working in an organization should accept the ethical responsibilities that come with
the working activities. Such responsibilities involve properly informing the role of an employee
as a vital human resource in the business systems. A manager working in an organization should
be aware of his/her responsibilities to make decisions about business activities and the use of the
information technologies, which may have ethical dimensions that must be considered.
An employee should promote ethical uses of information technology in the workplace. The
issues like: monitoring of an employee work activities and electronic mail electronically, letting
employees use their work computers for private business or take home copies of software for
their personal use, electronically accessing of the employees personnel records, selling of the
customer information extracted from the transaction processing system to other companies etc,
are always debatable. The most crucial things that guide the ethical and privacy issues in a
business environment is the stockholder theory that holds that mangers are agents of the
stockholders, and their only responsibilities is to increase the profits of the business without
violating the law or engaging in fraudulent practices. However, the social contract theory states
that companies have ethical responsibilities to all members of society, which allows corporations
to exist based on a social contract.
Information technology has created ethical controversy in the areas of intellectual property
rights, customer and employee privacy, security of company information and workplace safety.
Equity:
Executive salaries comparable with, product pricing, Intellectual property rights, non competitive
agreements
Rights:
Corporate due process, employee health screening, sexual harassment, affirmative action, equal
employment opportunity, shareholders interest, employment at will, whistle blower
Honesty:
Employee conflicts of interest, security of company information, inappropriate gifts, advertising
content, and government contract issues, financial and cash management process, business
practices in foreign land.

Exercise of corporate power:

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Product safety, environmental issues, disinvestment, corporate contributions, workplace safety

and so on.

Privacy Issues
Information technology makes it technically and economically feasible to collect, store,
integrate, interchange, and retrieve data and information quickly and easily. This characteristic
has an important beneficial effect on the efficiency and effectiveness of computer based
information systems. However the power of information technologies to store and retrieve
information can have a negative impact in the Privacy issues of every individual.
Some of the Privacy issues generally faced by the use of IT are as follows:
Accessing individual private email conversations and computer records, and collecting
and sharing information about individual gained from their visits to Internet websites and
newsgroups
Using customer information gained from many sources to market additional business
services
Collecting telephones numbers, email addresses, credit card numbers, and other personal
information to build individual customer profiles, and so on.
The Internet is notorious for giving it users a feeling of anonymity, when in actuality; they are
highly visible and open to violations of their property. Most of the internet and it world wide
web, email, chat, and newsgroup, are still a wide open, unsecured electronic frontier, with no
tough rules on what information is personal and private. For e.g.: information about the Internet
user is captured each time a user visits a website or newsgroup and recorded as a COOKIE
FILE in the hard disk, which is accessed by the service provider later.
Though there are various privacy issues because of the use of the IT, we can still take some
precautions to minimize the effects out of such issues. For e.g.: sensitive emails can be protected by
encryption, if both email parties use compatible encryption software built into their email programs.
Newsgroup postings can be made privately by sending them through anonymous remailers that
protect your identity when you add your comments to discussions. Also we can ask the Internet
service provides or other service providers to not sell the name and other personal information to
mailing list providers and other marketers. Also declining to reveal personal data and interest in
online services and websites profiles can lessen the exposure in the electronic snooping.