Karnataka State Open University

EMBA- July 2014 Batch

Name Areeba Zaki

Enrolment No PRVENO-5734

Subject Management Information System

Semester 2

Ques 1) why MIS is needed? What is the use of MIS? Explain elements of MIS and Role of MIS in managerial decision making?Ans) Management Information System or 'MIS' is a planned system of collecting, storing, and disseminating data in the form of information needed to carry out the functions of management.A management information system (MIS) is an organized process which provides past, present, and projected information on internal operations as well as external intelligence to support decision making."An integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computerized and manual procedures; models for analysis, planning, control and decision making; and a database."The scope and purpose of MIS is better understood if each part of them is defined individually, thus1.MANAGEMENT: Management has been define in process or activities that describe what managers do in the operation for their organization plan, organize, initiate and control operations. They plan by setting strategies and goals and selecting the best course of action to achieve the goals. They organize the necessary tasks for the operational plan, set these tasks up into homogenous groups and assign authority delegation; they control the performance standards and avoiding deviation from standard.

The decision-making is a fundamental prerequisite of each of the foregoing process, the job of MIS is facilitating decisions necessary for planning, organizing and controlling the work and functions of the business so that specified goals of business are achieved.

2. INFORMATION: Data must be distinguished from information and the distinction is clear and important for present purpose. Data are facts and figures that are not currently being used in a decision-making process and usually are taken from the historical records that are recorded and filled without immediate intent to retrieve for decision-making.

Information consists of data that have been retrieved, processed or otherwise used for information or interference purpose, argument or as a basis forecasting or decision-making regarding any business unit. Information is knowledge that one derives from facts for effective functioning of systems placed in the right context with the purpose of reducing uncertainty regarding the alternative courses of action as they are based on description and measurement of attributes of various entities associated with the enterprise.

3.SYSTEM: The system can be described as a set of elements joined together for a common objective. A subsystem is a part of a larger system with which one is concerned. All systems for our purpose the organization is the system and the parts (divisions, departments, functions, unit etc.) are the subsystem.Management Information System is generally defined as an integrated user-machine system for providing information to support operations, management and decision-making functions in an organization. The system utilizes computer hardware and software, manual procedure, models for analysis. Information is viewed as a resource much like land, labor and capital. It must be obtained processed, stored, manipulated and analyzed, distributed etc. An organization with a well-defined information system will generally have a competitive advantage over organization with poor MIS and no MIS.The MIS has more than one definition, some of which are given below:I. The MIS is defined as a system which provides information support for decision-making in the organization.II. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making function in the organization.III. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. IV. The MIS is defined as a computer-based information system.Objectives of MISThe goals of an MIS are to implement the organizational structure and dynamics of the enterprise for the purpose of managing the organization in a better way and capturing the potential of the information system for competitive advantage.Following are the basic objectives of an MIS: Capturing Data:Capturing contextual data, or operational information that will contribute in decision making from various internal and external sources of organization. Processing Data:The captured data is processed into information needed for planning, organizing, coordinating, directing and controlling functionalities at strategic, tactical and operational level. Processing data means: making calculations with the data sorting data classifying data and summarizing data Information Storage:Information or processed data need to be stored for future use. Information Retrieval:The system should be able to retrieve this information from the storage as and when required by various users. Information Propagation:Information or the finished product of the MIS should be circulated to its users periodically using the organizational network.Nature and Scope of MISThe following diagram shows the nature and scope of MIS:

MIS is needed because The purpose of MIS is reporting and is to provide the necessary information to the managers and supervisors at various levels to help them to discharge their functions of organizing, planning, control and decision making.MIS is a scientific way of collecting; processing, storing and communicating information relating to the various activities of an organization to the various levels of management so that management may be facilitated in discharging its functions efficiently and run the organization in an efficient manner for the betterment of all.MIS enhances the quality of management and growth of the organization by providing timely, accurate and meaningful information for planning, organization and control, No management can ever succeed without continuous appraisal of its performance and MIS by providing timely and meaningful information can be helpful in this regard. MIS should be developed keeping in mind the information needs of all managers and it should be based on cost- benefit analysis. It should be designed in such a way that it covers all aspects of the organization and it should be flexible to meet changing management needs and changing inputs.Management information system is a system designed in an organization to provide right information at the right time to facilitate managerial decision making. The need for management information system has arisen because managerial decision making has become very complicated due to fast changing economic, political, social, and technological changes.The old techniques of decision making such as intuition, rule of thumb etc. are no more relevant and useful in the process of decision making. Modern managements assemble both quantitative as well qualitative information which can be used for analyzing the pros and cons of various alternative courses of actions and thereby facilitating the best course of action. Thus, modern management functions are information oriented. Therefore, it is very difficult to manage effectively without an efficient management information system.Information processing beyond doubt is the dominant industry of the present century. Following factors states few common factors that reflect on the needs and objectives of the information processing: Increasing impact of information processing for organizational decision making. Dependency of services sector including banking, financial organization, health care, entertainment, tourism and travel, education and numerous others on information. Changing employment scene world over, shifting base from manual agricultural to machine-based manufacturing and other industry related jobs. Information revolution and the overall development scenario. Growth of IT industry and its strategic importance. Strong growth of information services fueled by increasing competition and reduced product life cycle. Need for sustainable development and quality life. Improvement in communication and transportation brought in by use of information processing. Use of information processing in reduction of energy consumption, reduction in pollution and a better ecological balance in future. Use of information processing in land record managements, legal delivery system, educational institutions, natural resource planning, customer relation management and so on.In a nutshell: Information is needed to survive in the modern competitive world. Information is needed to create strong information systems and keep these systems up to date.The primary use of a management information system, or MIS, is to assist managers in making strategic, tactical and operational decisions in an efficient and productive manner.It provides managers with essential information that is gathered from a variety of sources, pooled into a single database and compiled in a readable format.A management information system consists of a set of systems and processes that distributes information to managers. This tool is used to make reports and comprehensive overviews that help managers conduct performance reviews and make a wide range of decisions, such as an in-depth analysis of operational concerns. It provides internal reports that are presented in an easily understandable format. Information collected by a MIS are either financial or operational depending on the needs of management.A MIS is generally capable of collecting any type of information required by managers. It views financial data, such as daily expenses and revenues, and attributes these data to respective departments. Personnel are able to manage outgoing shipments and incoming deliveries from any location connected to the MIS.Front-line employees also use MIS to perform their jobs more effectively. For example, employees consult a MIS to view statistics related to their department or check on the status of particular inventory items. Furthermore, management information systems facilitate communication and collaboration by allowing employees to share documents and important information.Most management information systems rely on technology to collect and compile data. Some companies use standard systems, while others develop unique systems that suit their specific operations.The elements of MIS are:

Hardware Hardware is the most obvious part of a computer-based information system. Hardware refers to the computers themselves, along with any and all peripherals, including servers, routers, monitors, printers and storage devices. A CBIS may use a single computer or thousands.Software Without software, the hardware wouldn't be very useful. Software, the second element of a CBIS, is what tells the hardware how to function. It gathers, organizes and manipulates data and carries out instructions. Everything you do using a computer is done by the software.Data Data, or information, is the third element of a CBIS. Just as hardware cannot function without software, software cannot function without data. This is the information part of an information system, and whether that is statistical data, sets of instructions, lists of names or even graphics and animations, it is all key to a CBIS.Procedures It is commonly said that "procedures are to people what software is to hardware." The fourth element of CBIS, procedures are the rules, descriptions and instructions for how things are done. In computer-based information systems, procedures are frequently covered in instruction or user manuals that describe how to use the hardware, software and data.People People are the most often overlooked and most important part of a computer-based information system. It is people who design and operate the software, input the data, build the hardware and keep it running, write the procedures and it is ultimately people who determine the success or failure of a CBIS.Communication Communication is left out of some lists of CBIS elements, but for a CBIS that involves more than one piece of hardware to function, communication or connectivity is a necessity. This is, in part, because parts of it are covered under hardware. The components that allow one computer to communicate with another are hardware and are controlled by software. If communication between people is included in this element, though, it is an important element.The role of MIS in managerial decision making

Thetype of informationrequired by decision makers in a company is directly related to: the level of management decision making the amount of structure in the decision situations managers faceThelevels of management decision makingthat must be supported by information technology in a successful organization (independently of its size, shape, and participants), are often shown as a managerial pyramid see the figure below (O'Brien, p. 393) and Lecture 4:Strategic management: As part of a strategic planning process top executivesi. develop overall organizational goals, strategies, policies, andii. monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environmentTactical management: Business unit managers and business professionals in self-directed teamsi. develop short- and medium-range plans, schedules, budgets and specify policies, procedures, and business objectives for their sub-units of the company, andii. Allocate resources and monitor the performance of their organizational sub-units, including departments, divisions, process teams, project teams, and other workgroups.Operational management: Operating managers and members of self-directed teamsi. develop short-range plans (e.g. weekly production schedules), andii. Direct the use of resources and the performance of tasks according to procedures and within budgets and schedules they establish for the teams and other workgroups of the organization.

Decision makers need information products whose characteristics, attributes or quality are having thethree dimensionsof time, content, and form see the figure below-

Decision maker at different levels of the organization are making more or less structured decisions. Typically there are three types ofdecision structure:Unstructured decisions(usually related to the long-term strategy of the organization);Semi-structured decisions(some decision procedures can be pre-specified but not enough to lead to a definite recommended decision);Structured decisions(the procedure to follow, when a decision is needed, can be specified in advance).Earlier in this course we discussed the concept of system as a set of interrelated components, with a clearly defined boundary, working together to achieve a common set of objectives. With respect to the information system, it can be any organized combination of people, hardware, software, communication networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization.There arethree vital rolesthat information systems can perform for a business enterprise: support of business processes and operations, support of decision making by employees and managers, and support of strategies for competitive advantage see the figure below-

Theapplications of information systemsthat are implemented in today's business world can be classified as either operations or management information systems see the figure, below Operations Support Systems(OSS) produce a variety of information products for internal and external use, such as processing business transactions, controlling industrial processes, supporting enterprise communications and collaborations, and updating corporate databases effectively. They do not emphasize the specific information products that can best be used by managers. Further processing by management information systems is usually required.In this course we are interested more on theManagement Support Systems(Support of Managerial Decision Making) and more specifically on the process of providing information and support for decision-making by different levels of responsibilities of the managers and business professionals. The management classifications of information systems can be structured in four main groups of systems (O'Brien, the figure above, and chapter 10):Management Information Systems(MIS): provide information in the form of reports and displays to managers and many business professionals that support their day-to-day decision-making needs. Usually the information has been specified in advance to adequately meet the expectations on operational and tactical levels of the organization, where the decision making situations are more structured and better defined.Decision Support Systems(DSS) are computer-based information systems that provide interactive information support to managers and business professionals during the decision-making process. DSS use analytical models, specialized databases, a decision maker's own insights and judgments, and an interactive, computer-based modeling process to support semi-structured business decisions. Executive Information Systems(EIS) orExecutive Support Systems(ESS) are information systems that combine many of the futures of MIS and DSS. Here the information is presented in forms tailored to the preferences of the executives using the system, such as graphical user interface, customized to the executives graphics displays, exception reporting, trend analysis, and abilities to 'drill-down' and retrieve displays of related information quickly at lower levels of detail.Specialized Processing Systems(PS) are information systems characterized as functional business systems, strategic information systems, knowledge management systems, and expert systems.It is important to realize that business applications of information systems in the real world are typically integrated combinations of all these types of information systems. In practice, all these different types and roles of information systems are combined into integrated orCross-Functional Business Information Systemsthat provide a variety of functions. Thus, most information systems are designed to produce information and support decision making for various levels of management and business functions, as well as perform record-keeping and transaction-processing chores. Whenever you analyze or work with an information system, you probably see that it provides information for a variety of managerial levels and business functions. This will be explain and demonstrated in greater details in Lectures 7 to 12 of this course.The figure below illustrates the scope of the managerial challenges and opportunities facing business managers and professionals in effectively managing information systems and technologies.

Role of MIS in managerial decision makingUSING INFORMATION SYSTEMS FOR DECISION MAKING:

Now that we have seen that management information systems(MIS)are used to organize and process information, this information can be used to make decisions in an organization or business. MIS reports summarize or aggregate information to support decision-making tasks. MISs provide reports in many different ways. For example, MISs Reports can beperiodic, summarized, exception, comparativeand ad hoc.So, once a company has created a database, managers have to mine data which should be stored and processed in this database.Data mining is a task of using sophisticated technology to retrieve and evaluate data in a database to identify useful trends.If data is well mined and managed, it can help a business discover patterns in the sale of specific goods and services, it can also help a business find new customers, track customer complaints, requests and also evaluate cost of production and operation.The process of making decisions in an organization is not easy, we have different types of decisions, and these include;structured decisionsandnon structured decisions. So, to simplify the all process of decision making, business managers and owners need to use different types of information systems to speed up the decision making process. Below I have listed some detailed points on how to use information systems to make decisions in an organization or business.1.Decision Support Systems:By definition, a decision support system is an information system which provides data to business managers or owners to make decisions and choose a course of action. The primary objective of DSS is to improve your effectiveness as a decision maker by providing you with assistance that will complement your insights. DSS retrieves data from a database in an analyzed manner to facilitate the decision making process with in an organization, DSS is made up of different types of tools and software, every business or organization uses a different type of Decision support system software to retrieve and process data.A decision support system is commonly referred to as an interactive information technology system which is designed to support decision making when the problem is not structured. A Decision Support System has three components and these include; (Data management component, Model Management component and User Interface Management component), in brief, let me explain about each of these components of a decision support system. Data management component:This performs the function of storing and maintaining the information you might want your DSS to use. Model Management component:This one consists of both the DSS models and DSS model management system. User Interface Management component:This one allows you to communicate with the DSS. It consists of the user interface and the user interface management system. A user interface is that part of the system you can see when entering information or commands.2.Executive Information Systems:Many businesses and organizations are putting most of their attention on employee empowerment byuse of technologyand they forget about empowering business executives, but it is very important to create specialized information systems to address the needs of executives. An executive information system(EIS)allows business executives to access the organizations primary database; information accessed can include financial statements, sales figures, stock market trends and so much more. EIS supports flexible data reporting and tools for analyzing the information. This simplified process, helps managers address problems and opportunities which in return helps them make quick decisions which can help a business or organization.3.Expert Systems:This is a knowledge-based system which imitates human thinking through complicated sets. The system applies reasoning capabilities to reach a conclusion. An expert system is made up of three components and these include; Information Types, People and IT Components. Expert systems are used in different ways, for example, an expert system can be used to determine credit limit for credit card applicants, and it can be used to monitor machinery to predict problems or breakdowns and so much more. Expert systems are developed by capturing the knowledge of approved experts in a business or outside it. Expert systems are excellent for diagnostic and prescriptive problems.

Ques 3) prepare a Case study on: MIS in service industryAns) INTRODUCTION The concept of the MIS has evolved over a period of time comprising many different facets of the organizational functions. MIS is necessity of all the organizations. The initial concept of MIS was to process data from the organization and presents it in the form of reports at regular intervals. The system was largely capable of handling the data from collection to processing. In any organization, small or big a major portion of the time goes in data collection, processing, documenting and communicating it to the people. Hence a major portion of overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people oriented and it varies with the nature of the people in the organization.

MIS plays a crucial role in the management of any contemporary enterprise such as small, medium or large organizations. Many management information systems are in widespread use by manager at operational, middle and senior levels. The basic knowledge of information system is almost becoming a generic skill needed by every professional. To top management, MIS is tool to gain insight into the overall health of the organization itself. The recent information revaluation has pushed information systems to center stage of modern management. Getting a competitive advantage balancing market strength, increasing market shares, acquiring more attractive finance, introducing new products and services, reaching out to more customers and quickly gaining customers preferences are achieved through MIS. The information support for functional areas of management such as Production, Marketing, Finance, Personnel and services is an absolute necessity. In manufacturing organizations, the production function occupies a central role. The role of this function is to control the entire production and operation function consisting of design, location and layout, product design, operation, production planning and control, material management, quality control, cost control etc. In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following point

Handling of a voluminous data. Confirmation of the validity of data and transaction. Complex processing of data and multi-dimensional analysis. Quick search and retrieval. Mass storage and fulfilling the changing needs of the information. Communication of the information system to the user on timeThe MIS uses computers and communication technology to deal with these points of supreme importance. It goes without saying that al managerial functions are performed through decision making for taking rational decisions, Management Information is essential and is procured through the Management Information System setup by the organizations. Success of an organization in achieving its predetermined goals and objectives lies in timeliness and quality, that is to say effectiveness of its MIS. In todays world of ever increasing complexities of business as well as management, every organization to survive and grow must have an efficient and effective MIS. An effective Management Information System supplies accurate, relevant and timely information to the manager of an organization. Management Information Systems are of vital importance for all kinds of organizations. These come handy to managements by providing management information at various stages of decision making and thus greatly help the organizations to achieve their predetermined goals and objectives.

These ideas can be used for creating data driven, scalable enterprise information systems. This incorporates the features of an expert system in providing the customer or end user with maximum encapsulation of technical data and much improved decision-making capabilities within the system. The developed Machining Expert for handling nontraditional machining (NTM) data can also be extended with suitable design extensions to handle business logic by interacting with the end user. Bo Yan, Yiyun Chen, Guangwen Huang [14] introduces the main content and operation flow of the tax management information system as well as main functions of its subsystems. Then we describe the general structure and technical implementation strategy of the application system.

Four major functionality of logistical management information system is illustrated in this paper such as integrated principle, level principle, structure principle, relevant principle and purpose principle. The architecture of management information system illustrates the major parts of the system such as user interface, server interface and applicable database system. The management information system is widely used in the logistics area and it improves the efficiency of logistical activities. It will be more and more advance and widely using in the logistics.

II. MANAGEMENT INFORMATION SYSTEM

The MIS is an integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computer hardware and software, manual procedures, models of analysis, planning, control and decision making and a data base. MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. The main function of MIS is to get the right Information to the right person at the right place at the right time in the right form at the right cost. MIS is a system having a combination of persons, machines , procedures and data base as its elements, which gather data from the intra and extra sources of an organization and after processing these data supply management information to the managers in an organization to support the decision making process of the management. According to Davis Gorden B, the diagrammatic representation of the concept of MIS can be shown in figure-1. Functional Uses of MIS is to enhance the Quality of our operations, Quality of our services and we achieve efficiency, transparency and Speedy Decision making. The term MIS is composed of three elements viz. Management, Information and System. In order to understand the concept of MIS, let us describe these components separately

A. Management It is the process of getting things done through and with people. A manager in an organization gets the thing done by performing five basic functions such as planning, organizing, staffing, directing and controlling. To perform above functions, a manager has to take a variety of decisions. Thus, decision making is a fundamental pre-requisite for each of the foregoing process. Whatever a manager does, he does it through decision making. In brief decision making is the essence of management. Robert B Anthony described three levels of business activities carried out in operating an organization as shown in figure-2. 1. Operational Control (Operating Management). 2. Management Control (Middle Management). 3. Strategic Planning (Top Management).

The first level strategic planning processes determines what markets or businesses the company should be in at present or plant to be in the near future. The next level, management control includes processes or functions that facilitate the management of those processes delegated to the operational control level. The bottom level, operational control indicates processes performed to control the basic product or services produced by the company. It is concerned with individual tasks or transactions, such as procurement or raw material as per prescribed quantity and quality, selling of products to specific customers.

B. InformationThe word information is a processed data, useful or relevant data, data with surprise value, data which is useful in the decision making process. Information is a concept unique with reference to its receiver, i.e. the same data may convey different meaning (information) to different people. Information contains an element of surprise, reduces uncertainty and triggers off action. The relation of data to information is that of raw material to finished product. Quality of information is determined by the way it is used. Decisions are often made with incomplete information such as Needed information is not available, Getting needed information is costly/time consuming, No knowledge about availability of information, Information is not available in the needed form.

The need of Information is to ensure effective and efficient decisionmaking leading to prosperity of the Organization. Different levels of management utilize different types of information as the three levels of management perform different functions in an organization. The characteristics of information , which are important for evaluation of MIS effectiveness and are relevant for an analysis of information of Managers at different levels are Timeliness, Accuracy, Relevance, Up to datedness, Adequacy, No overloading, Format, Clarity, No Duplication, Explicitness, Exception Based Reporting etc.

C. System A system is set of elements joined together to achieve common objectives i.e. group of elements organized with a purpose. The systems often have multiple goals. The systems can be either probabilistic or deterministic in nature. The Physical systems can be classified as Natural (Human Body) and Artificial (Information system). The systems may be open or closed, the closed systems can be standalone with no connection with other systems and open systems interface and interact with other systems. The system utilizes computer hardware and software, manual procedures, management and decision models and database. A system is made up of sub-system, which may be composed to further sub-system. Sub-systems send and receive data form each other. Figure 4 shows the business organization and its sub-systems.

D. Role of MIS in Organization

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries i.e. managers and top management.The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems. The MIS helps in Strategic Planning, Management Control, Operational Control, and Transaction Processing. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation. The MIS helps the middle management in short term planning, target setting and controlling the business functions. The MIS plays a role of information generation, communication, problem identification and helps in the process of decision making. The MIS therefore, plays a vital role in the management, administration and operations of an organization.

E. Benefits of MIS in Organization Improves organizations effectiveness Ensures efficient & effective use of resources. Ensures proactive management of business Builds management competence through Information and Knowledge databases to face the competition. Helps to build a learning organization.

F. Challenges of MIS in Organization Strategic Business Challenge (What complementary assets are needed to use information technology effectively?) Globalization Challenge (How can firms understand the business and system requirements of a global economic environment?) Information technology Infrastructure Challenge (How can organizations develop an information technology infrastructure that can support their goals when business condition and technologies are changing so rapidly?) Information System Investment Challenge (How can organizations obtain business value from their information systems?) Ethics and Security: The responsibility and control challenge (How can organizations ensure that their information systems are used in an ethically and socially responsible manner?) Workforce downsizing. Information overload. Employee mistrust. Difficult to build. Security breaches.

III. RESEARCH METHODOLOGY USED TO COMPARE USAGE OF MIS IN MEDIUM SCALE AND LARGE SCALE ORGANIZATIONS

Basically, an organization is group of people organized to accomplish an overall goal. Organizations can range in size from two people to hundreds of thousands. Organizations have an overall goal (or mission) which is usually subdivided into various other goals (often called strategic goals) that, in total, will achieve the overall goal of the organization. It takes resources from the environment and processes them to produce outputs. "Organization" is understood as planned, coordinated and purposeful action of human beings in order to construct or compile a common tangible or intangible product or service. An organization is stable, formal, social structure that takes resources from the environment and processes them to produce outputs. Capital and labor are primary production factors provided by the environment. Organizations have various attributes which distinguish them from each other. No two organizations are similar in all respects. There have to have certain distinctive lines keeping them unique from each other. Information requirements keep varying in accordance with Size of organization, its structure, The Culture it follows, Decision Making Structures etc. The objective of the study is to compare the acceptance and usage of Management Information System in medium scale and large scale organizations. Around 120 organizations consisting of 80 medium scale and 40 large scale organizations were selected for the purpose of this study. These organizations were selected based on various parameters such as number of employees working, total turnover, production rate, number of shifts the company runs etc. The industries which are selected for the study include production industry, process industry and service industry. The study is exclusively based on the primary data collected through a sample survey. Main emphasis was laid to understand Management Information System usage and factors which affects its use. The population of theStudy comprised of Chief Executive, Industrialists, General Managers, line supervisors, engineers etc., of various organizations. To achieve the objective of the study, the data was collected through a structured and pre-tested questionnaire. The questionnaire was prepared on the basis of review of literature and many discussions with professionals, consultants and experienced academicians. All the selected respondents were personally contacted to get the questionnaire filled. The responses were collected on five point liker type scale ranging from strongly agree to strongly disagree (1.Strongly Agree, 2.Agree, 3.Neutral, 4.Disagree and 5.Strongly Disagree). After the data collection was over, the scoring was done by assigning a numerical value of 5 to the most favorable Strongly Agree position on the scale, 4 to the next most favorable Agree, 3 to the Neutral, 2 to the Disagree and 1 to the Strongly Disagree. Thus all the responses obtained were converted in quantitative data, which were further subjected to tabulation, analysis and interpretations.

TABLE I. USAGE OF MIS MEDIUM SCALE AND LARGE SCALE ORGANIZATIONS

The percentage usage of MIS in 40 large scale organizations is shown in Figure-6.

IV. RESULTS AND DISCUSSIONS OF THE SURVEY CONDUCTED

A. Analysis of the Survey

An analysis of Table-I reveals that only 54 organizations out of 80 organizations (67.5%) in medium scale units were found making using MIS for supporting decision making process. Whereas as many as 36 organizations out of 40 organizations (90%) in the large scale units were found making uses of MIS for supporting decision making process. So by comparison, it is noticed that the usage of MIS in large sale organizations more than that of medium scale organizations. To find out the possible reasons for not making use of MIS in those organizations, the respondents were requested to provide a feedback on various parameters which could be possible reason for non-use of MIS in their respective organizations. The questionnaire was prepared on the basis of review of literature and many discussions with professionals, consultants and experienced academicians. As per the Table-I, 54 organizations out of 80 in medium scale units and 36 organizations out of 40 in large scale units are not making use of MIS. So we have collected feedback from 5 respondents of these organizations for the questionnaire supplied by us. After collecting the feedback, the average and standard deviation is calculated for each reason for nonuse of MIS. The responses thus obtained are analyzed and the results are tabulated in Table-II for medium scale and large scale organizations.TABLE II. RESASONS FOR NON-USAGE OF MIS IN MEDIUM SCALE AND LARGE SCALE ORGANIZATIONSThe percentage use of computers (Computerization) in the large scale organizations, which are not making use of MIS (4 organizations) is shown in Figure-8.

An analysis of Table-II indicates that the various possible reason for non-use of MIS in medium scale and large scale organizations. The main reason for non-use of MIS in medium Scale organizations is limited use of computers has been attributed to unawareness of potential activities which a computer can handle and incomplete or no information about MIS, lack of awareness and benefits of MIS, inadequate training provided to employees etc.,. As tabulated in table-II the calculated values of standard deviation for each possible reason lies very close to the calculated values of average. So the deviation is not much to the average values calculated i.e. the reasons from the respondents what we have received are appropriate for the non-usage of MIS in those organizations.

B. Advises to the Management of the Organizations

Before implementing the MIS to any industry it is necessary to study the existing system in the industry in detail, the roles played by the manager for better decisions making, to stream line the vast information system to improve the productivity of an industrial plant. Management Information System is management oriented, the designing of Management Information System takes care of the managers who meet the information requirements. Any suitable database management system is used to design the Management Information System as per the requirement of the management. The development of the system starts after deciding the management needs and keeping in view the overall objectives of the management. Once the Management Information System is developed based on the requirement, it is implemented along with the existing system for some period of time until the new system is familiar to the employees. After completely familiar with this system, the old system is stopped and new system is continued by the organization. It effective usage of MIS mainly depends on the users how best they will use the system, learn the system, adopt the system and switchover from the existing system to the new system. In any organization, small or big a major portion of the time goes in data collection, processing, documenting and communicating it to the people. Hence a major portion of overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people oriented and it varies with the nature of the people in the organization. In management of almost all operational activity, the information forms a major input and as such for effective implementation of futuristic information system in overall system, it is essential to modify the existing management. Some of the common points that management should follow are:

For effective usage of MIS computerization is required. The employees should know potential usage of computers. The management should invest money to procure computers and related systems which are required. Proper training should be given to employees to cope up with the system. Proper awareness has to be created among the employees such has benefits of MIS etc.In todays world of ever increasing complexities of business as well as management for every organization to survive and grow, must have an efficient and effective Management Information System It goes without saying that all managerial functions are performed through decision making for taking rational decisions, Management Information is essential and is procured through the Management Information System setup by the organizations. Success of an organization in achieving its predetermined goals and objectives lies in timeliness and quality, that is to say effectiveness of its MIS. In todays world of ever increasing complexities of business as well as management,Every organization to survive and grow must have an efficient and effective MIS. An effective Management Information System supplies accurate, relevant and timely information to the manager of an organization.

V. CONCLUSION

As per the survey conducted reveals that comparatively MIS is not being used much by medium scale organizations and not completely in large scale organizations. In order to increase the usage of MIS in the organizations which are not making use of MIS there is a necessity to build up computer culture by properly creating awareness about potential computer applications and the benefits thereof to the employees, The management should invest money to procure computers and related systems which are required and proper training / seminars etc., should be conducted to employees to cope up with the system. This in turn, increases the usage of MIS in those organizations. In management of almost all operational activity, the information forms a major input and as such for effective implementation of futuristic information system in overall system, it is essential to modify the existing management. An effective MIS supplies accurate, relevant and timely information to the manager of an organization.