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:
Identify what an EVP controls directly: plants, equipment, workforce, operating schedules, and enabling infrastructure.Map those responsibilities to the MIS distinction: these elements are “physical system.”Eliminate choices that are roles (not systems) or that imply universal responsibility for all domains.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:
the conceptual information system of the firm: this is defined and governed cross-functionally and not solely owned by the EVP.the vice-president of finance: a person/role, not a “system.”All of the above / None of the above: both overbroad or contradictory given standard governance.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
Discussion & Comments