Difficulty: Easy
Correct Answer: the physical system of the firm
Explanation:
Introduction / Context:
In Management Information Systems (MIS) and organizational design, it is common to distinguish between a firm’s physical system (people, machines, facilities, networks) and its conceptual information system (policies, procedures, data definitions, decision rules). The question asks which sphere typically falls under the purview of the executive vice-president (EVP), a senior line executive responsible for day-to-day operations.
Given Data / Assumptions:
Concept / Approach:
The EVP is commonly accountable for the physical realization of strategy: production assets, logistics, staffing levels, service delivery, and the supporting technology platforms that enable operations. The conceptual layer (methods, standards, and policies) is typically codified by governance bodies and domain executives (CIO/CFO/CHRO) and approved by the CEO/board.
Step-by-Step Solution:
Verification / Alternative check:
Organizational charts and RACI matrices place operational accountability (A) for facilities, production, and service delivery with the EVP/COO, while policy and architectural standards are shared or led by specialized executives (CIO/CFO), confirming the match with the physical system.
Why Other Options Are Wrong:
Common Pitfalls:
Confusing “ownership” of policies with accountability for implementing them; EVPs implement within the physical system but do not unilaterally define all policies.
Final Answer:
the physical system of the firm
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