CHAPTER 2MANAGEMENT INFORMATION

SYSTEM

WHAT WE LEARN ON THIS CHAPTER IS.. Introduction of MIS Task of MIS Characteristics of a useful system MIS and Computer Why we need a MIS Conceptual Design Models Of MIS Impact of MIS

3

Management:

Word “management” identifies a special group of people whose job is to direct the effort and activities of other people toward common objective.

Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people.

4

INFORMATION Information is data that has been manipulated to be

useful to someone.

Information must have value.

Information tells people something they don’t already know or confirms something that they suspect.

5

SYSTEM A system is a group of interrelated components

working together toward a common goal by accepting inputs and producing output in an organized transformation process.

Characteristics of a useful system: A system is a whole. Components of a system interact. Systems are goal seeking. Systems have input/output. System must be controlled. System forms a hierarchy. Systems exhibit differentiation.

MANAGEMENT INFORMATION SYSTEM 

MIS is also knows as Information Systems/ Information and Decision Systems/ Computer-Based Information Systems.

Definitions of MIS:1. MIS is defined as a system which provides information

support for decision-making in the organization.2. MIS is defined as an integrated system of man and machine

for providing information to the operations, management & decision-making function in the organization.

 

MANAGEMENT INFORMATION SYSTEM 

3. MIS is defined as a system based on the database of the organization for the purpose of providing information to people in organization.4. MIS is defined as a Computer-based Information System.

TASKS OF MIS Following are activities performed during information System processing:1. Handling of voluminous data2. Confirmation of the validity of data & transaction3. Complex processing of data & multidimensional analysis4. Quick search & retrieval5. Mass storage6. Communication of information system to the user on time7. Fulfilling the changing needs of information

Formal system should exist to handle all above mentioned things. Hence, MIS uses computer technology to deal with information.

MIS AND COMPUTERMIS relies on the HW and SW

capacity of the computer and its ability to store, process, retrieve and communicate with no limitations.

Ability of the computer to sort and merge helps to organize the data in a particular manner.

Ability of a computer system to provide security of data brings confidence in the management.

The computer system being able to configure to the specific needs helps to design a flexible MIS.

9

Jyotsna Chauhan

MIS AND ACADEMICS Management theory and organizational behavior

Human mind as processor

Operation Research and network theory

Accounting Applications

Data Structure(DBMS)

Decision theory and Mathematical Techniques10

Jyotsna Chauhan

NEED FOR MIS 1. Increasing complexity of business activity

a) International economyFirms of all sizes are subject to economic influences that can originateanywhere in the world. Such influences can be seen in the relative values ofthe currencies of each nation, where purchases are made in those countrieswith the highest currency value.b) Worldwide competitionCompetition exists on a worldwide scale. Its effects can be seen in theimports from foreign countries.c) Increasing complexity of technologyTechnology is used everywhere in business. Examples are bar code scanners,computer based airline reservation systems, automated teller machines,factory robots ..etc.

d) Shrinking time framesAll phases of business operations are performed more rapidly than everbefore. (telemarketing, electronic sales orders, “just in time “ delivery ofraw materials ..etc)

e) Social constraintsSome products and services are found undesirable by society. Therefore,business decisions must be based on economic factors, but social costs andpayoffs must be considered as well. Plant expansion, new products, newsales outlets and similar actions must all be weighed in terms of theirenvironmental impact.2. Improved computer capabilitiesa) Sizeb) Speed

PURPOSE OF MIS Management Information Systems are primarily

concerned with the delivery of information (both internal and external) to organizational members from the shop floor workers to the management.

The purpose of MIS is to help the smooth running of the business by providing information on the firms data (such as accounting figures) employees from different levels will then evaluate this information so that decisions can be made to ensure that the business remains competitive and successful.

MIS have been created to support the whole range of business's administration and regulatory activities and can be seen in all parts of the world and in all types of industries both public and private sector.

In the US, for example, the National Drivers Register has MIS facilities to report on driver license details, such as all those within a given state whose license has been revoked or suspended

CONCEPTUAL DESIGN MODELS OF MIS 1. The Process Model2.The Logical Model of MIS3.The Physical Model of MIS

THE PROCESS MODEL In this model, the information system is depicted

as a collection of processes that are put together and occur in pre-determined sequences to gather ,capture,format,and present information.

A process is something that converts inputs into output.

A process needs the following entities to function:

1.Methods or Procedures 2.Trained Operators 3.Knowledge of methods and Machinery 4.Materials 5.Machinery

THE LOGICAL MODEL OF MIS MIS Science & Technology Management Science Data Information Technology

PHYSICAL MODEL OF MISData

Capturing

DataProcessin

g

Reporting

Control Support

Decision Support

Data Storage and

Retrieval

Modeling&Simulation

MIS consist of several parts or sub-systems. These subsystems interact with each other different ways to finally produce the information in the format desired.

The efficiency with which these modules interact will determine the effectiveness of the MIS.

Some system are:1.Data Capturing Model The data capturing model is responsible for the

collection and capture of data that needed to produce the information.

This module will vary according to the volume of data and the complexity of data that needs to be captured.

E.g. Bar Code

2.Data Storage (retrieval) Module This module is responsible for storing the data

capture in the previous module. The data must be stored such that it remains

intact and it is easily retrievable for processing. 3.Data Processing Module This module is responsible for storing the data

captured into usable information. A variety of processes may be used to combine

the data into information. For E.g. in small org. manual processes may be

used notebooks, register, calculators. In large org.,it may take an entire department to

process the information.

4. Information Reporting Module This module is responsible for converting the output

from the Data Processing Module into meaningful information.

This module thus take the processed data and lays it out in a readable or usable form.

Computer may be used for both, the Data processing and the Information Reporting modules, or for either one of them, or for neither, depending on the size of org.

5. Decision Support Module This module is designed to help the manager make

a decision based on the information presented . 6. Control Support Module It enables the manager to keep control; over various

facets of the business.

This module is generally based on a feedback mechanism, which provides information to the manager on what is happening within the system and allows the manager to make change during the process to achieve the desired result.

7. Modeling and Simulation Module This module makes it possible for a manager to see

the future of consequence of present actions. Thus, a marketing manager may desire to know

what would happen if he dropped the price of a product by a certain amount.

Past data is used for forecasting the future data. This module is used basically to enhance the growth

of the business, If a manger had no such model or simulator, he may be forced to actually take the action after which it would be too late to take corrective action.

ROLE OF MIS1. ensures that appropriate data is

collected from valid sources, processed and passed to needy destinations.

2. satisfies the needs through Query Systems, Analysis Systems, Modeling systems.

3. Helps in strategic planning, Management control, Operational control & Transaction Processing.

Hence, MIS plays a vital role in management, administration & operations of an organization.

In Operational Management Day to Day operation of the business. It needs information on day to day basis to

perform the operations. Mis provide such information on a daily or

even hourly basis to the Operational Management to enable it to control the operations.

In Middle Managemento Concerned with short term goals, problem

solving, progress monitoring and short term target setting.

o In Top Managemento Long term growtho SWOTo Company goals and objectives

Can be compared to the role of heart in the body. Information is blood and MIS is the heart.

The different information requirement at different levels in the organization.

IMPACT OF MIS

1. With a good support of MIS, marketing, finance, production & personnel management becomes more efficient.

2. MIS gives better understanding of business.3. A two-way communication flow is greatly enhanced by MIS. The

management freely tells its employees their jobs, and the ways and means in which they are to accomplish the tasks entrusted to them. The employees also in turn discuss their doubts, concerns and problems.

USERS OF MISEvery person in organization is the user of MIS.

• Generation of data• Searching for a data• Submitting it higher level

managers 

User tools

Clerk

Officer

• Integrating data• Analyzing data• plays the role of decisions maker

& planner

action-oriented information tools

Executive Manager

• Strategic planning• Decision Making

Decision making tools

The users of MIs use GUI, multimedia, imaging, internet to make use of MIS efficiently.

 

 

MIS: Support to ManagementThe management process is executed through different decisions

taken at each step of management.Steps in Management DecisionPlanning A selection from various alternatives

like strategies, resources, methodsOrganization A selection for goals, people,

resources, methodsStaffing Providing manpowerDirecting Choosing methods from various

methodsCoordinating Choice of tools and techniques for

coordinating effortsControlling A selection of exceptional conditions

and he decision guidelines

MIS: SUPPORT TO MANAGEMENTEnvironment

Management

Goal Setting

Planning Organizing Staffing Directing Coordinating Controlling

Information Support

MIS