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Some Real time explainations About MIS & DMS

Some Real time explainations About MIS & DMS

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Published by Ashutosh Sharma

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Published by: Ashutosh Sharma on Apr 16, 2011
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SYSTEMSApPROACHANDDECISIONMAKING
Question1
Discussvariousbenefitswhichareattainedbyimplementing
a
computerizedmodelformakingdecision.(FinalMay2003)
Answer
AgrowingnumberofcompaniesaremakingeffectiveuseofMISinaidingthedecisionmakingprocess.Forexample,amajorchemicalcompanyusesacomputermodeltosimulateanindustrysegmentandthecompany'spotentialforashareofmarketandprofitability.Acomputerizedmodelmayincorporateaccounting,production,transportation,manufacturingandmarketingoperationsofthecompany.Suchmodelsallowadecisionmakertoconsideralargenumberoffactorsindecision-makingprocess,whichwasnotpossibleinmanualsystem.Thishighlightstheneedtoreduceskepticismthatmanagershavetowardsophisticatedcomputerizeddecisionmakingaids.Thistypeofmodelputspertinentinformationintoaanalyticalframeworkthataidsthemanagementdecisionmakingprocess.Someofthebenefitsofferedbycomputerizedmodelfordecision-makingare:1.Managersmustdealimmediatelywithmanyday-to-daybusinessproblems,aswellasplanandcontroltheiroperations.Managersrequiredifferentinformationforthevariouskindsofdecisionstheymustmake.Computerisedmodelprovidesreportsonvariances,cost-volume-profitanalyses,etctohelpmanagersindecision-making.2.Computerisedmodelsprovidemanagerswithdatatowhichratiosandanalysistoolsmaybeapplied.Theyprovidemanagementwithavarietyofmeasuresofthesoundnessoftheorganizationandmakeitpossibletoexplorewaysofimprovingtheorganization'sfinancialcondition.3.Computerisedmodelsmakeafairlyaccurateforecaststhatwillaffecttheorganizationperformanceinthefuture.Forecastingthefinancialhealthoftheorganizationthroughlong-rangebudgetestimates,providesmanagerswithopportunitiestoconsideractionsthatwillhelptheorganizationsurvivebadtimesortakeadvantageofafutureenvironment.4.Computerisedmodelspermitmanagersintracingvariancesi.e.actualrevenuesandexpensesandcomparetheseamountstoexpectedrevenuesandexpenses.Comparison
 
ManagementInformationandControlSystems
ofbudgetdataagainstsuchstandardsallowmanagerstoassesshowtheyusetheirresourcestoachievetheirgoals.5.Themodelsalsoestimatetheamountofcashthatwillbereceivedandspenteachmonthi.e.inwhichmonthstherewillbeexcessfundsthatmightbeputtouseandinwhichmonththerewillbeinsufficientfunds.Thus,theinformationsuppliedhelpsmanagerstomakedecisionsaboutinvesting,purchasingandborrowingmoney.Themodelsalsohelpintrackingcashbalancesonaday-to-daybasisandhelpthemanagersintheirinvestmentdecisionssoastomaximizeorganizationincome.6.Computerizedmodelsarehighlyusefulforcarryingoutanalysisofhistoricaldataspeedily,whichmaybequitedifficultorevenimpossiblemanuallyforforecastingthefuture.Question2
ExplaintheroleplayedbyFinancialInformationSysteminmakingfinancialdecisions.(FinalNov.2003
&
May2006)
AnswerFinancialInformationSystemplaysanimportantroleinmakingfollowingfinancialdecisions:(i)Estimationofrequirementsoffunds:Thisistheveryimportantandstartingpointofmakingfinancialdecisions.Averycarefulestimationoffundsandthetimeatwhichthesefundsarerequiredismadeinthisstage.Thiscanbedonebyforecastingallphysicalactivitiesofthefirmandtranslatingthemintomonetaryunits.(ii)Capitalstructuredecisions:Decisionsaretobetakentoselectanoptimummixofdifferentsourcesofcapitalstructure.Therearemanyoptionsavailableforprocuringfunds.Decisionmakerhastodecidetheratiobetweendebtandequity,long-termandshort-termfundsetc.Hehastoensurethatoverallcapitalstructureissuchthatthecompanyisabletoprocurefundsatoptimumcost.(iii)Capitalbudgetingdecisions:Fundsprocuredfromvarioussourcesarerequiredtobeinvestedindifferentassets.Withthehelpofcapitalbudgeting,decisionmakercandeterminefeasibilityofinvestmentinlong-termassets.Thiswillhelpinattainmentoffinancialobjectives.(iv)Profitplanning:Thispartofprofitplanningisessentialforthegrowthoftheorganization.Thedecisionmakerhastomakedecisionregardingprofitsanddividends.Hehastoensureadequatesurplusinfutureforgrowthanddistributionofdividends.(v)Taxmanagement:Taxplanningisaimedatreducingofoutflowofcashresourcesbywayoftaxessothatthesamemaybeeffectivelyutilizedforthebenefitofbusiness.Thepurposeoftaxplanningistotakefulladvantageofexemptions,deductions,concessions,rebates,allowancesandotherrelief.
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SystemsApproachandDecisionMaking
(vi)Workingcapitalmanagement:Workingcapitalmanagementisconcernedwiththeinvestmentoflongtermfundsintocurrentassets.Decisionsaretobetakenforeffectivefinancingofcurrentassetsrequiredforday-to-dayrunningoftheorganization.(vii)Currentassetsmanagement:Policydecisionsaretakenregardingvariousitemsofcurrentassets.Creditpolicydeterminestheamountofsundrydebtorsatanypointoftime.Inventorypolicyistobedeterminedjointlybetweenfinanceandproductiondepartment.Question3
Definepersonnelinformationsystem.ListitsvariousbasicsUb-systemsandexplainthemindetail.(FinalMay
1998,
May2004
&
May2008)
AnswerThepersonnelinformationsystemdealswiththeflowofinformationaboutpeopleworkingintheorganisationaswellasfuturepersonnelneeds.Inmostoftheorganisations,thesystemisconcernedprimarilywiththesixbasicsub-systemsofthepersonnelfunction;recruitment,placement,training,compensation,maintenanceandhealthandsafety..Itisgenerallyacceptedthatthepersonnelfunctionisoneoftheleastcomputerisedofallthefunctions.Automatedsystemmaynotbenecessaryforsmall,butlargebusinessfirmsarerealisingthatcomputerbasedpersonnelinformationsystemsarenecessaryforincreasingtheoperationalefficiencyofpersonnelmanagement.Originally,manyorganisationsusedcomputer-basedinformationsystemstoproducepaychequesandpayrollreports,maintainpersonnelrecordsandanalysetheuseofpersonnelinbusinessoperations.Manyorganisationshavegonebeyondthesetraditionalfunctionsandhavedevelopedpersonnelinformationsystems,whichalsosupport(i)recruitment,selectionandhiring(ii)jobplacement(iii)performanceappraisals,(iv)employeebenefitanalysis,(v)traininganddevelopmentand(vi)health,safetyandsecurity.Suchinformationsystemsupporttheconceptofhumanresourcemanagement(HRM).ThegoalofHRMistheeffectiveandefficientuseofthehumanresourcesofacompany.Thepersonnelsystemshouldbeorganisedonfunctionalbasis.Itshouldhavethefollowinginformationsub-systemstoincreasetheoperationalefficiencyofpersonnelmanagement.1.Recruitment:Properlymanagedrecruitmentsub-systemmayforecastpersonnelneedsandskillsrequiredforrecruitingpersonnelatthepropertimetomeetorganisationalmanpowerneeds.Suchasub-systemmaynotonlyfurnishinformationconcerningskillsrequiredforcompanyprogrammesandprocessesbutalsomaintainstheinventoryofskillsavailablewithintheorganisation.2.Placement:Thissub-systemisconcernedwiththetaskofmatchingtheavailablepersonswiththerequirements.Agoodplacementsub-systemmakesuseoflatestbehavioraltoolsandtechniques.Itensuresthatthecapabilitiesofpeopleareidentifiedbeforebeingmatchedwithproperlyorganisedworkrequirements.
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