1

Unit I
Unit I
Part II
Part II
2
3
A Sample Organization Chart
A Sample Organization Chart
C h i e f
A c c o u n t a n t
B u d g e t
A n a l y s t
V i c e P r e s i d e n t
F i n a n c e
P l a n t
S u p e r i n t e n d e n t
M a i n t e n a n c e
S u p e r i n t e n d e n t
V i c e P r e s i d e n t
M a n u f a c t u r i n g
T r a i n i n g
S p e c i a l i s t
B e n e f i t s
A d m i n i s t r a t o r
D i r e c t o r
H u m a n R e s o u r c e s
C !
TYPES OF INFORMATION SYSTEMS
TYPES OF INFORMATION SYSTEMS
DATA WORKERS DATA WORKERS
KIND OF SYSTEM GROUPS SERVED KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR
MANAGERS MANAGERS
MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE
MANAGERS MANAGERS
OPERATIONAL OPERATIONAL
OPERATIONAL LEVEL OPERATIONAL LEVEL
MANAGERS MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE & KNOWLEDGE LEVEL KNOWLEDGE &

SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
RESOURCES RESOURCES MARKETING MARKETING

5
MANAGEMENT INFORMATION
MANAGEMENT INFORMATION
SYSTEMS
SYSTEMS

A Management Information System is used by

managers throughout the organization to help
them in direting! planning! oordinating!
ommuniating! and deision"ma#ing
$
MIS"%efinition
MIS"%efinition

MIS &Management Information Systems' is a general

term for the omputer systems in an enterprise that
pro(ide information about its business operations) It*s
also used to refer to the people +ho manage these
systems)

,ypially! in a large orporation! -MIS- or the -MIS

department- refers to a entral or entrally"oordinated
system of omputer e.pertise and management! often
inluding mainframe systems

,he study of effeti(e systems for the de(elopment and

use of information in an organization)
/
MIS"%efinition
MIS"%efinition

MIS is a formalised omputer information

system +hih an integrate data from (arious
soures to pro(ide the information neessary
for deision"ma#ing at the management le(el)

An organized assembly of resoures and

proedures re0uired to ollet! proess! and
distribute data for use in deision"ma#ing)
1
MIS"%efinition
MIS"%efinition

MIS refers broadly to a omputer"based system that

pro(ides managers +ith the tools for organizing!
e(aluating and effiiently running their departments)

In order to pro(ide past! present and predition

information! an MIS an inlude soft+are that helps
in deision"ma#ing! data resoures suh as databases!
the hard+are resoures of a system! deision support
systems! people management and pro2et
management appliations! and any omputerized
proesses that enable the department to run effiiently
3
4istory of the 5ole of IS
Data
Processi!
Maa!e"et
Re#orti!
Decisio
S$##ort
Strate!ic &
E% User
E&ectroic
Co""erce
'()*+'(,* '(,*+'(-* '(-*+'(.* '(.*+'((* '((*+/***
lectronic
Data
Processing
" TPS
Management
#nformation
Systems
Decision
Support
Systems
" Ad hoc
Reports
nd $ser
Computing
%ec #nfo Sys
%pert Systems
S#S
lectronic
Business &
Commerce
"#nternet'or(ed
"Business &
Commerce
16
5ole Of MIS
5ole Of MIS

MIS plays (ery (ital role in the management!

administration and operation of the
organization)

,he system ensures that an appropriate data is

olleted from (arious soures! proessed and
sent further to all the needy destinations)

fulfill the information needs of an indi(idual

and top management
11
5ole Of MIS
5ole Of MIS
7asi roles of MIS an be outlines as belo+ 8

4ard+are administration

Soft+are de(elopment! and support

9nd user support

Computing standards

%7 administration

Corporate data aess

12
5ole Of MIS
5ole Of MIS

At e(ery phase of the management proess! managers

onstantly need information in order to ma#e effeti(e
deisions)

It does not inlude purely funtional information or tehnial

information)

Management information is the information re0uired by

managers as they ma#e their deisions! suh as the
:
number of staff re0uired to be employed by eah department!
:
their training re0uirements!
:
areer de(elopment plans!
:
2ob desriptions!
:
budgets!
:
o(erall foreasts!
:
benhmar# sur(eys! and
:
progress reports on soio eonomi onditions)
13
The Role of MIS
The Role of MIS
&i' ,imely and Aurate ,ransation ;roessing)
&ii' Streamlining Aounting and 5eords
Management)
&iii' ;ro(iding Managers +ith ad ho and
interati(e support in deision"ma#ing)
&i(' ;ro(ision of an easy and systemati +ay in
digging out ritial information tailored
aording to speifi re0uirements! and
ustomized in preferred formats)
&(' 9nables an organization to gain ompetiti(e
ad(antage o(er others)
1<
The Role of MIS
The Role of MIS
&(i' 7etter ommuniation! inter"organizational
omputing! and internet"+or#ing) Supports business
operations and suessful management of business
enterprises)
&(ii' 7etter use of e.euti(e resoures by automating
routine funtions)
&(iii' Inreased ability to ma#e sound! rational and
informed deisions in(ol(ing omple. ombinations
of fators! and doing so +ith more onfidene and
speed)
&i.' 7etter use of time by ma#ing failities a(ailable
e(ery time they are re0uired)
&.' Impro(ed ustomer ser(ies and impro(ed personnel
relations +ithin the organization
15
The role of MIS in a Business
The role of MIS in a Business
Enterprise
Enterprise

The Role of Management
Information Systems
Support to Business
Operations
Support to Managerial
Decision-making
Business
Transaction
Processing
Control of
Business
Processes
Team and
Workgroup
Collaboration
Reporting
System for
Managers
nteracti!e
Decision
Support
Tailored
nformation for
"#ecuti!es
1$
Impat of MIS
Impat of MIS

MIS reates! an impat on the organization=s

funtion! performane and produti(ity)

>ith MIS support management of all

departments of an organization an beome
more effeti(e)
1/
Impat of MIS
Impat of MIS
Impact on Manaement
,argets tra#ing and monitoring beomes easy)
,op le(el managers an be informed aordingly)
;robable trends in (arious aspets of business an
be traed) ,his helps in log"term planning and
foreasting)
9.eption onditions an be brought to the
notied! so that manages an ta#e deision in that
matter)
Information reporting system helps entire
organization)
11
Impact on Un!erstan!in of Business
MIS brings larity in the ommuniation! due to
ommon understanding of terms and terminology)
7rings high degree of professionalism in the
business operations)
Impact on Manaerial Efficienc"
4elps him to use different tools and tehni0ues!
+hih are impossible to use manually)
%eision"ma#ing ability is impro(ed)
13
#$AT IS MANAGEMENT
#$AT IS MANAGEMENT

Manaement % Mary ?ollett defined management as

@the art of getting things done through people)A

Manaer % ;erson +ho ahie(es the organization

goals by moti(ating others to perform! not doing
himself)

Manaement &For MIS' % %efined as a proess of

planning! organizing! staffing! oordinating and
ontrolling the efforts of the members of the
organization to ahie(e ommand stated goals of the
organization)
26
A;;5OAC49S ,O
A;;5OAC49S ,O
MABAC9M9B,
MABAC9M9B,
,here are (arious approah to management
proess! fe+ to them are e.plained belo+ 8
1) Sientifi management theory by ?redri#
,aylor)
2) Administrati(e theory by 4enry ?ayol)
3) 4uman 5elation ,heory by 9lten Mayo and
4enery Cantt)
<)Motion Study by ?ran# Cilbreth)
21
Fre!eric( #inslo) Ta"lor &*+,-.
Fre!eric( #inslo) Ta"lor &*+,-.
*/*,'
*/*,'

?) >) ,aylor is #no+n as the -father of sientifi management-)

In a ompany -Mid(ale Steel- he identified the priniples

defining ho+ the +or# ould be done)

Aording to ,aylor! one these priniples +ere defined! all the

+or#ers ould be trained to do the +or# -the one best +ay-!
rather than relying on their o+n (arious rules of thumb)

,aylor found that the +or#ers are deliberately +or#ing at less

than full apaity alled soldiering)

7ased on his e.tensi(e obser(ations! he then e.perimented +ith

+ays to impro(e the +or#er*s performane! hanging e(erything
from ho+ they did their 2obs to the tools they used)

7ased on these e.periments! ,aylor then trained the +or#ers to

perform the tas#s in the most effiient +ay) ,he result of
,aylor*s sientifi approah +ere impressi(e)

In 1311! ,aylor published his onlusions from these and other

e.periments in a boo# titled 0Principle of Scientific
Manaement0)
22
,aylor*s ?our ;riniples of
,aylor*s ?our ;riniples of
Sientifi Management
Sientifi Management
%i(ide +or# and responsibility bet+een the management and
+or#ers so that the management is responsible for planning
+or# method using sientifi priniples and +or#ers are
responsible for e.euting the +or# aordingly)
<)
Co"operate fully +ith +or#ers to ensure that they use the
proper method)
3)
Sientifially selet the +or#ers and train them to perform
the tas# by using the sientifially de(eloped method)
2)
Sientifially study eah part of +or#er*s tas# and de(elop
the best method for performing the tas#! +hih replaes the
old rule of thumb)
1)
23
$enr" Fa"ol &*+1*.*/2,'
$enr" Fa"ol &*+1*.*/2,'

4enry ?ayol! a ?renh industrialist is #no+n

as the -father of modern management theory-)

4enry ?ayol +as trained as a mining engineer!

he Doined a oal"and"iron ombine as an
apprentie and reahed to top position of
managing diretor)
2<
Fa"ol3s Manaement Acti4ities
Fa"ol3s Manaement Acti4ities

On the basis of ?ayol*s e.periene as a top"le(el manager! 4enri

?ayol realize that it is possible to de(elop theories about
management that ould be taught to indi(iduals +ith administrati(e
responsibilities) In 131$! he published monograph titled -Ceneral
and Industrial Management-)

?ayol has lassified industrial and business operations into si.

distint ati(ities)

Management ati(ities and their related funtions are "

i' Technical,ehnial ati(ities inlude prodution and
manufaturing)
ii' 5ommercialCommerial ati(ities inlude purhasing and selling
iii'Financial?inanial ati(ities inlude use of apital to its optimum
use and finaning)
i4' Securit"Seurity inludes protetion of life and property)
4' AccountinAording funtion inludes balane sheet! osting!
statistis
4i' A!ministrati4e or Manaerial Managerial or administrati(e
funtion inludes planning! organizing! ommanding! o"ordinating!
ontrolling)
25
Management Ati(ities
Management Ati(ities
2$
$enr" Fa"ol3s Principles of
$enr" Fa"ol3s Principles of
Manaement
Manaement
1) %i(ision of +or#
2) Authority and 5esponsibility
3) %isipline
<) Enity of ommand
5) Enity of diretion
$) Subordination of indi(idual interest to general interest
/) 5emuneration
1) Centralization
3) Salar hain
16) Order
11) 90uity
12) Stability of personnel tenure
13) Initiati(e
1<) 9sprit de orps
2/
Principles
Principles
*6 7i4ision of #or( %
%i(ision of +or# or +or# speialization results in effiient use of resoures
and inreases produti(ity) ,his is appliable to both managerial and
tehnial funtions)
26 Authorit" an! Responsi8ilit" %
Authority means right to gi(e order or ommand) 5esponsibility is the
obligation to ahie(e ob2eti(es) 5esponsibility omes +ith authority)
Authority and responsibility pinpoints the aountability of +or#)
96 7iscipline %
%isipline is absolutely neessary for the smooth running of the
organization) %isipline means follo+ing rules! regulations! poliies and
proedures by all employees of organization) ,here must be lear and fair
agreement for obser(ing rules and regulations also punishment for
disobediene and in disipline)
21
Principles
Principles
16 Unit" of 5omman! %
An employee should reei(e orders from one super(isor only to a(oid
possible onfusion and onflit i)e) any +or#er should not be under ontrol
of more than one super(isors) It a(oids mista#es and delays in getting +or#
done)
,6 Unit" of 7irection %
All the ati(ities must be aimed at one ommon ob2eti(e) ,he ati(ities
should be organized suh that there should be one plan and one person in
harge) ,his enables diretions of efforts to+ards attainment of one goal)
-6 Su8or!ination of In!i4i!ual Interest to General Interest %
,he interests of one employee or group should not be gi(en importane o(er
the interests and goals of organization)
:6 Remuneration %
Compensation and the methods of ompensation should be fair to both the
employee and the employer) 9.ploitation of employees of any #ind must
be a(oided)
23
Principles
Principles
1) 5entrali;ation %
,he entralization of authority and po+er to some e.tent is neessary
+here it is most feasible other+ise there should be deentralization of
authority and po+er for smooth funtioning of the organization) A balane
bet+een both must be ahie(ed) ,he ob2eti(e is the optimum use of the
apabilities of personnel)
3) Scaler 5hain %
A saler &hierarhial' hain of authority e.tends from the highest to
lo+est ran# of an organization and defines the ommuniation path)
4o+e(er! horizontal ommuniation is also enouraged as long as the
managers in the hain are #ept informed)
16) Or!er %
Order is priniple of arrangement of things and people) 9(erything should
oupy its proper plae i)e) e(erything should be in order) %ue to good
organization and seletion the right person should be in the right plae)
Order leads to the reation of sound organization +ith effiient
management) Cood organization remo(es onfusion)
36
Principles
Principles
11) E<uit" %
9mployees are human beings) 9mployee*s loyalty and de(otion should be
treated +ith #indness and 2ustie) Organization*s run best +hen managers
are fair +ith their employees)
*26 Sta8ilit" of Personnel Tenure %
Stability of tenure of personnel in the organization inreases the effiieny
of the employees and is a symbol of sound management) 7eause time is
re0uired to beome effeti(e in ne+ 2obs! high turno(er of employees
should be pre(ented) Instability &high turno(er' is a symbol of +ea#
management)
*96 Initiati4e %
Managers should enourage and de(elop the subordinates to ta#e initiati(e)
It is the result of reati(e thin#ing and imagination and helps in
formulating! planning also its e.eution)
*16 Esprit !e corps %
9sprit de orps means spirit of o"operation) Sine union is strength!
harmony and team +or# are essential) ,hese are prere0uisites for better
performane and effeti(e organization)
31
FUN5TIONS OF MANAGER
FUN5TIONS OF MANAGER

A manager is @someone +ho +or#s +ith and

through other people by oordinating! their
+or# ati(ities in order to aomplish
organizational goalsA
32
FUN5TIONS OF MANAGER
FUN5TIONS OF MANAGER

;lanning!

Organizing!

Staffing!

%ireting!

Co"ordinating and

Controlling)
33
;lanning
;lanning

;lanning is nothing but the proess of determining the

goals and ob2eti(es and strategies for ahie(ing
goals of the organization)

Aording to Forange! +hen doing planning

managers need to 8
1' >rite or re(ie+ the organization=s mission!
2' Identify and analyze opportunities!
3' 9stablish goals!
<' Selet a ourse of ation to ahie(e these goals!
5' %etermine resoures needed)
3<
Organizing
Organizing

deiding +hat +or# needs to be done! assigning the

tas#s! and arranging them into a deision"ma#ing
frame+or#)

Organization in(ol(es e(ol(ing the struture of the

people +or#ing in the organization and their roles)

Organizing is the proess by +hih the struture and

alloation of 2obs is determined)

Organizing in(ol(es determining ati(ities re0uired

to ahie(e the established ompany ob2eti(es!
grouping these ati(ities in a logial basis for
handling by persons! managers and! finally assigning
persons to the 2ob designed)
35
Staffin
Staffin

,he primary purposes of staffing are to fin!=

hire= train= !e4elop= re)ar! an! retain the
re0uired amount of oo! people! helping them
meet their needs +hile they help the ompany
meet its goal)

,his statement addresses se(eral important

aspets of staffing inluding recruitin=
trainin an! retainin employees that +ill
benefit the ompany)
3$
5ontrollin
5ontrollin

Controlling is the management funtion! in +hih

managers set and ommuniate performane
standards for people! proesses! and de(ies)

,he four steps of the ontrol proess are 8

1' 9stablishing performane standards!
2' Measuring performane!
3' Comparing measured performane to established
standards!
<' ,a#ing orreti(e ation))
3/
7irectin
7irectin

%ireting is influening people=s beha(ior

through moti4ation= communication= roup
!"namics= lea!ership an! !isciples)

,he purpose of direting is to hannel the

beha(iors of all personnel to aomplish the
orani;ation>s mission an! o8?ecti4es +hile
simultaneously helping them aomplish their
o)n career o8?ecti4es)

,his in comple@ tas( of implementing the

proess of management)
31
5o.or!inatin
5o.or!inatin

,his funtion brings a harmon" an! smoothness in

the (arious group ati(ities and indi(idual efforts
direted to+ards goals)

It needs s"nchroni;in in!i4i!ual efforts an!

actions +hih may differ)

,his is normally arried out by the authority of top

le(el management)

Co"ordinating inludes ommuniating +ith others!

pro(iding diretions and moti(ating people)
33
MIS % A SUPPORT TO T$E
MIS % A SUPPORT TO T$E
MANAGEMENT
MANAGEMENT
Choice of tool for coordinating. Co-ordinating
Selection of exception condition and decision
guidelines.
Controlling
Selecting a method for directing efforts in the
organization.
Directing
Manage the positions in the organization
structure and provide proper manpower.
Staffing
Selection of a combination out of several
combination available with him regarding people,
goals, authorities and methods.
Organization
Deciding which method to select among
various alternatives lie different strategies,
resources or methods.
!lanning
Decisions "aen b# the Managers Management
Steps
<6
<1
MIS % A TOOA FOR
MIS % A TOOA FOR
MANAGEMENT PRO5ESS
MANAGEMENT PRO5ESS

Management as a proess onsists of continuous

!ecision.ma(in! neessitated by 4ariations in oals
and also the fat that lac( of complete (no)le!e
reates ris( an! uncertaint" assoiated +ith
deision"ma#ing)

Speifi deisions are greatly influened by the

organizational goals! +hih ha(e to be ahie(ed)

,he omplete proess of management re0uires lots of

!ata an! information for e.eution of the plan)

MIS is therefore! is definitely a tool for effecti4e

e@ecution of manaement process6
<2
ORGANIBATION
ORGANIBATION
STRU5TURE AN7 T$EORY
STRU5TURE AN7 T$EORY

Organization an be defined as! @S"stematic

roupin of tas( for pro4i!in a oo! means of co.
or!ination 8et)een the )or( of 4arious people at
4arious le4els so that= this is no )aste! efforts or
!uplication of )or( an! the mem8ers of the roup
!o not et into each other>s )or(A)

O(erall organizational agreements +ithin an

enterprise are pro(ided by organization struture)
<3
Basic Mo!el of Orani;ation
Basic Mo!el of Orani;ation

<<

,he organization struture is built on four

basi priniples 8
" 4ierarhy of authority
" Speialization
" Standardization &or formulation'
" Centralization
<5
$ierarch" of Authorit"
$ierarch" of Authorit"

4ierarhial struture of positions)

9ah position has authority or right to

@ommandA assoiated +ith it)

ontrol o(er resoures! re+ards! and the tas#

and authority to ma#e deisions regarding
those things)

As a rule! authority is distributed aording to

the le(el in the hierarhy) $iher the le4el of
position= reater the authorit"6

Span Of 5ontrol
<$
Speciali;ation
Speciali;ation

It is di(ision of labor in the organization)

Bormally the organization is di(ided into their

funtional lines li#e mar#eting! prodution
aounting! finane et)! +hih enourages
speialization +ithin eah funtion)

Organization may be more or less speialized

depending upon the ser(ies they pro(ide )

9)g) 5G% rather than prodution

</
Formali;ation
Formali;ation

,he degree of formalization is the e@ten! to

)hich rules an! proce!ures e.ist to handle
orani;ational acti4ities)

Some times deision rules are stated in

ad(ane)

,his is to ma#e a person in an organization

independent)

;eople shall +or# on the basis of rules!

proedures guidelines and poliies)
<1
5entrali;ation
5entrali;ation

Centralization refers to the le(el in the

organization +here !ecision.ma(in ta(es
place6

Organization +here it is hihl" centrali;e!=

most of the !ecisions ma(in is !one at the
top of the hierarch")

More the authority of deision"ma#ing to

lo)er le4el= reater is the !ecentrali;ation)
<3
Factors Influencin Orani;ational
Factors Influencin Orani;ational
Structure
Structure
Harious fators influene organizational
struture! +hih an be lassified as 8
1) 9n(ironment
2) ,ehnology
3) Size
<) ;eople
56
*6
*6
En4ironment
En4ironment

An organization is an open system) ,he

en(ironment inludes all onditions!
irumstanes and influenes surrounding and
affeting the +or#ing of organization)

?or a business organization! soial! eonomi!

legal! politial ultural and tehnologial
en(ironments are important)
51
26 Technolo"
26 Technolo"

,ype of tehnology the organization adopts!

affets the organizational struture)

,he nature of +or#flo+! di(ersion of

ati(ities! amount of program speifiations!
number of le(els! span of management all
influene organization)
52
96 Si;e of Orani;ation
96 Si;e of Orani;ation

Size is measured in terms of number of

employees! sale operations! size of
in(estment et)

It is found that a tendeny of larger

organizations is to be more deentralized!
more speialized! more standardized and
formalized as ompared to small organizations
53
16 People
16 People

,o arri(e at the appropriate organization

struture the fores people must be analyzed)

Managers! s#ills! personality! (alues

philosophy largely influene organization
struture)

%egree of autonomy and freedom for

subordinates has impat organizational
beha(iour)
5<
ORGANIBATION BE$ACIOUR
ORGANIBATION BE$ACIOUR

Atual performane of an organization is sometimes

different from the goals and ob2eti(es)

,hese are some fators! +hih are beyond the ontrol

of the management! +hih affets the performane of
the organization)

,he performane in affeted due to organization

beha(ior! +hih is the result of follo+ing fators 8
:
Organizational Culture
:
Organizational ;o+er
:
Organizational Change
:
Organizational Fearning
:
Organizational Moti(ation