MANAGEMENT INFORMATION SYSTEM

(MIS)
A MIS provides information that organizations
require to manage themselves efficiently and
effectively. MIS are typically computer based
systems used for managing five primary
components-(1) Hardware, (2) Software, (3) Data
(information for decision making), (4) Procedures
(Design, development & documentation) and (5)
People (individuals, groups or organizations).
Management Information Systems are distinct from
other information systems in that they are used to
analyze and facilitate strategic and operational
activities.
The MIS has more than one definition, some of
which are give below.
1. The MIS is defined as a system which

provides information support for decision

making in the organization.
2. 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.
3. 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.
4. The MIS is defined as a combined system of
man & machine that provides information to
support the planning and control function in
an organization.
5. The MIS is defined as a Computer-based

Information System.
Though there are a number of definitions, all of
them converge on one single point, i.e., the MIS is a
system to support the decision making function in
the organization. The difference lies in defining the
elements of the MIS. However, in todays world

MIS a computerized .business processing system

generating information for the people in the
organization to meet the information needs decision
making to achieve the corporate objective of the
organization.
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 points:

Handling of a voluminous data.

Confirmation of the validity of data and
transaction.
Complex
processing
of
data
and
multidimensional analysis.
Quick search and retrieval.
Mass storage.
Communication of the information system
to the user on time.
Fulfilling the changing needs of the
information.

The management information system uses

computers and communication technology to deal
with these points of supreme importance.
ROLE
OF
THE
INFORMATION SYSTEM

MANAGEMENT

The MIS plays an important 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: the
managers and the 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 plays the 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.
IMPACT
OF
THE
INFORMATION SYSTEM

MANAGEMENT

processed at a time which helps the junior

level management in completing their
responsibilities.
2) Information

Since the MIS plays a very important role in the

organization, it creates an impact on the
organizations
functions,
performance
and
productivity. The impact of MIS on the functions is
in its management. With a good support, the
management of marking, finance, production and
personnel become more efficient. The tracking and
monitoring of the functional targets becomes easy.
The functional, managers are informed about the
progress, achievements and shortfalls in the
probable trends in the various aspects of business.
This helps in forecasting and long- term perspective
planning.

Providing System: The

system that is designed for processing
information to make the summary of
information and exception reports indicates
the deviation if any, reasons of shortage in
performance and the summary report give
the whole organization in a single view.

3) Decision Support System (DSS): The

system that is designed for improving the

analytical capabilities of the decisionmaking. This system is generally used for
top level management.
4) Programmed

OBJECTIVE
OF
INFORMATION SYSTEM

MANAGEMENT

MIS is an integrated system that collects, maintains

& displays information in proper manner at proper
time.
MIS has many objectives which are as follows:
1) Support: It supports decision-making in

both structured & unstructured problems.

2) Facilitate: It facilitate the decision-making.
3) Help: It helps in highlighting the critical

factors.
4) Provide: It provides information at each

level of management.

CATEGORIES OF MIS
MIS can be divided into 4 categories:
1) Transaction Processing System (TPS):

The system that is designed for maintaining

day to day transaction processing is called
TPS. In this system, a bulk of data is

decision-making system:
The system which is designed for the
decision which are made by the system
rather than a system.

CHARATERISTICS OF MIS
Some of the characteristics of MIS are as follows:
Management Oriented/directed
Business Driven
Integrated
Common Data Flows
Heavy Planning Element
Subsystem Concept
Flexibility & Ease of Use
Database
Distributed Systems
Information as a Resource
1) Management Oriented: The system is

designed to provide information indirectly to

the top management means the others levels
of management are also provided with
relevant information.
2) Sub-system concept: A system may be a

collection of sub-system. For example,

human body is a system and this system has
many sub-systems like nervous system,
digestive system, respiratory system etc.

3) Integrated: Integration means that the

system has to be holistic in its approach.

4)

Asking queries about the organization

Initiating the information requirement

Planning element: MIS can be established

in three to five years. Planning is required
for MIS development to fulfill the future
needs & objectives of an organization.

5) Flexibility: Easy to used.

Suggesting
requirement

interpretations

of

that

Explain in detail the original statement

Review the requirements

6) Common

data flow: It means avoid

repetition & over lapping in collection &
shortage of data that is common data flow.

Determining Objectives: User has to define system

objectives in terms of information. Objectives are
known by asking some questions:
What is the purpose of the MIS system?

Design of an MIS
A general approach has to be followed to design or
to develop a suitable system that can fulfill the
requirements of different organization. There are
various steps which are taken in designing of an
MIS.
1. Identifying information
2. Determining objectives
3. Identifying system constraint
4. Determining
resources

information

needs

and

What are the users and what are their

objectives?
Why the system is needed?

Identifying
System
Constraint:
System
constraints means the restriction uder which
objectives may be achieved. These constraints are
created by the designer or the end users. Constraints
are of two types i.e. internal and external.
Internal constraints are found in terms of:
Cost and resource

5. Developing alternative conceptual designs

Manpower and availability

6. Preparing the report of conceptual design

Top management support

Organizational policy

Identifying information: In this step we have to

know the exact problem and the requirement of the
organization for which the system has to be made. If
the objective is not well defined then the design is
also not exact, what an organization want.
Objectives help in framing various plans and to
achieve each objective.
There are some steps that are necessary to know the
exact requirement of an organization. These
include:

Acceptance etc.
External constraints are found in terms of
Ordered entry
Billing
Government restrictions
Determining information needs and resources:
To design the system first we have to find the
information needs to achieve the objectives. After

finding the information needs, we have to find the

resources. Sources of information are of two types:
internal and external.

o Prepare organizational plans

Internal sources of information are found in form of

file records, letters, reports etc.

o Training of personnel

External sources of information are found in form

of personal interviews of managers, trade
publications, personal interaction with decision
makers, government publications etc.
Developing alternative conceptual designs:
Skeleton of MIS is the conceptual design is the
restrict form of the detailed design. Conceptual
design of an MIS consist of many items such as
type of information flow, channels through
information is passing, role of decision makers, and
competitors etc.
Evaluation of alternative system is done by
following methods:

o Planning of flow of work

o Software development
o Acquiring computer hardware
o Design the format for data collection
o Data files construction
o Parallelization of common operation of new
and old system
o Phasing out the old system and inducting the
new system.
o Testing of new system
o Evaluation of new system
o Maintenance and control of new system

(i) Prepare a cost-effectiveness data for the

systems, for quantified comparison.

<<DIAGRAM>>

(ii) Compare performance of the conceptual

design with respect to objectives of the
system developed earlier.

PROBLEMS IN IMPLEMENTING MIS

(iii)

If none of the above methods provide a

preferred design then expand the
conceptual designs.

Preparing the report of conceptual design: This

report consists the expenditure of funds, possible
changes in an organization set-up, summary of
problems, objectives of system, nature of system,
reason why this concept was selected over others,
resources required to design the system and
resources required for implementation.

Resistance to change is a normal human tendency.

MIS when implemented, changes a lot of things
within the organization. It ushers in a new way of
working in the organization. It changes power
structures, the way people view their work, changes
skill requirements of employees, processes and also
the entire organizational culture.
This

change

can

cause

problems

in

the

implementation process, as there may be resistance

to this change from employees. Moreover, the

IMPLEMENTATION OF MIS
To implement a system first we need an
implementation plan which consist of the following
steps:

implementation of MIS involves migration of an

information system from a controlled environment
of design and development to a 'real' environment
of an organization. Sometimes, information systems

that work fine in a controlled environment fail to

management well in advance. Hence, they should

deliver in the 'real' environment. This may require

prepare the workforce for it.

some tailoring and customization of the system. The

2.

Lack of organization culture supporting

management should ensure that such minor glitches

MIS-some organizations does not have a culture of

should not be used as an excuse by rumormongers

information based decision-making. Implementation

to malign the new system.

of MIS is such organizations are always a

Management should have a mature view that such

challenge, as the employees have to be trained to

problems are not expected in the implementation

appreciate the importance of information. They

process, ensuring such technical issue remains a

become so used to judgment based decision-making

technical issue only and are not blown up into an

that such training has very little impact. In some

organizational issue. A strong message from the top

cases,

management favoring the new system thwarts such

implementation of MIS the organization culture has

attempts at maligning the new system and hence is

not changed and that managers continue to resist

advocated. However, in spite of the best efforts

changes brought on by installation of MIS.

some factors cause problems in the implementation

3.

it

has

been

noted

that

even

after

The degree of employee involvement in the

process. The major factors that determine the degree

MIS

of

implementation of MIS. If employee participation is

resistance

that

organizations

face

in

is

major

issue

in

good then resistance to MIS is less.

implementing MIS are,

1.

creation-this

The degree of MIS driven change in

departmental boundaries-any major change that
changes the functioning of departments drastically
is likely to be challenged or resisted by the
department functionaries as it changes their way of

4.

The degree of employee involvement in the

implementation of change along with MIS is a
major issue. If the management uses a participatory
approach

towards

MIS

implementation

then

resistance to MIS is less.

working. This resistance should be anticipated at the

The degree of MIS driven change in the informal

design stage. Typically, if a BPR exercise is

system-if MIS changes the informal communication

conducted along with the requirement analysis of

system completely then resistance is more. This

the

in

informal communication channel is a source of

recommendations of change in business processes

power for some individuals. They resent their loss

which result in changes in the organization structure

of power due to emergence of MIS as the sole

or functioning of departments. Thus, the fact that

authority for communication

system

then

such

exercises

result

such a change is on its way is known to the

METHOS OF MIS DEVELOPMENT

SYSTEM APPROACH TO MIS

4) Non-programmed decisions are rarely made

by MIS.

There are some methods by which we develop a

management information system:

5) It is less effective due to frequent changes in

1. System Approach: It is used when the

6) Quality of output is as the quality of input

and processes.

management.

organization is very small.

2. Top Down Approach: In this approach top

management is the whole-sole incharge for

the different activities of the system.

7) MIS is less
organization.

effective

in

unshared

SUCCESS AND FAILURES OF MIS

3. Bottom Up Approach: It is started from the

1. Reasons for Success

lowest level in a hierarchy. All the lowest

levels are combined to form the middle level
and then middle levels are combined to form
the top level or the system.

a. Users interaction with developer

b. Requirements are corrects
c. Good planning

4. End Uses Development Approach: In this

approach end user is responsible for system

development. It is a low cost technology.

d. Good management support

5. Integrative Approach: In this approach

evaluation, modification, etc. continuous till

a final design is acceptable to all levels.

2. Reasons for Failure

a. Lack of user
developer.

6. Prototyping Approach: In this approach

first we develop a small or pilot version of

the system. Pilot version is also known as
prototype.

c. Lack of planning
d. Changing of requirement

activities are performed in sequences. When

a activity is completed then the new one is
started.

e. Technological change
f. Lack of management support
Q.

1) It takes only quantitative factors into

account.
2) Managerial judgment is not replaced by
MIS.
3) It is not enough flexible to update itself
quickly.

with

b. Requirements are not correct

7. Traditional Approach: In this approach

LIMITATIONS/PITFALLS OF MIS

interaction

How a Computer based information

system is important over manual system?

ATTRIBUTES OF INFORMATION QUALITY

Quality of information refers to its fitness for use or
its reliability. Some of the attributes of information
which influence the quality of information are as
follows:

1) Timeliness:

Timeliness

means

that

information may result in wrong decisions

information must reach the recipients within

and

the

organization.

prescribed

time

frame.

Timely

thus

may

prove

costly

to

the

information can ensure correct executive

6) Explicitness: A report is said to be of good

action at an early stage. The characteristic of

quality if it does not require further analysis

timeliness, to be effective, should also

by the recipient for decision-making. Thus

include current information.

the reports should be such that a manager

2) Accuracy: Accuracy is another key-attribute

does not waste any time on the processing of

of management information. It means that

the report, rather he should be able to extract

information is free from mistakes and errors,

the required information directly.

is clear and accurately reflects the meaning

7) Exception based: Top managers need only

of data on which it is based. It conveys an

exception reports regarding the performance

accurate picture to the recipient, who may

of the organization. Exception reporting

require a presentation in graphical form

principle states that only those items of

rather than tabular form.

information, which will be of particular

3) Relevance: Relevance is yet another key

attribute

of

management

interest to a manager, are reported. This

information.

approach results in saving precious time of

Information is said to be relevant if it

the top management and enables the

answers specifically for the recipient what,

managers to devote more time in pursuit of

why, where, who and why? In other words,

alternatives

the MIS should serve reports to managers,

organization.

for

the

growth

of

the

which are useful, and the information helps

them make decisions.

MIS AND DECISION MAKING

4) Adequacy: Adequacy means information

must be sufficient in quantity. MIS must
provide reports

containing

information,

which is required in deciding processes of

decision-making.
5) Completeness: The information, which is
provided to a manager, must be complete
and should meet all his needs. Incomplete

Decision making is a process which the decision

makers uses to arrive at a decision. The core of this
process is described by Herbert Simon Model.
Herbert Simon made key contributions to enhance
our understanding of the decision-making process.
In fact, he pioneered the field of decision support
systems. According to (Simon 1960) and his later
work with (Newell 1972), decision-making is a
process with distinct stages. He suggested for the
first time the decision-making model of human

beings. His model of decision-making has three

stages: Intelligence, Design and Choice.

Management

information

systems

combine

hardware, software and network products in an

integrated solution that provides managers with data

Intelligence: Raw data collected, processed and

examined, identifies a problem calling for a
decision.
Design: Developing and analyzing the different
decision alternative and testing the feasibility of
implementations.
Choice: Select one alternative as a decision based
on the selection criteria.

in a format suitable for analysis, monitoring,

decision-making and reporting. The system collects
data, stores it in a database and makes it available to
users over a secure network.
Information Access
Managers need rapid access to information to make
decisions about strategic, financial, marketing and
operational issues. Companies collect vast amounts
of information, including customer records, sales

In the intelligence phase, the management

information system collect data, the data is
processed further, the data is shorted and merged
with other data and computations are made. In the
design phase, the manager develops a model of the
problem situation on which he can generate and test
the different decisions to facilitate its
implementations. If the model developed is useful
in generating the decision alternatives, he then
further moves into selection phase called as choice.
In the choice phase, the manager involves a
selection criterion such as maximum profit, least
cost, minimum waste, least time taken and highest
utility. The criterion is applied to the various
decision alternatives and the one which satisfies the
most is selected.

data,

market

research,

financial

records,

manufacturing and inventory data, and human

resource

records.

However,

much

of

that

information is held in separate departmental

databases, making it difficult for decision makers to
access data quickly. A management information
system simplifies and speeds up information
retrieval by storing data in a central location that is
accessible via a network. The resulting decisions
those are quicker and more accurate.
Data Collection
Management information systems bring together
data from inside and outside the organization. By

In the above three phases, if the manager fails to

reach a decision, he start the process all over again
from the intelligence phase where additional data
and information is collected, the decision making
model is refine and the selection criteria is changed.

setting up a network that links a central database to

ROLE OF MIS IN DECISION MAKING

Collaboration

Information plays a vital role in decision-making.

Even to take very simple decisions, we need
information. To understand the role played by
information in decision-making, we have to
understand how decisions are taken.

In situations where decision-making involves

retail outlets, distributors and members of a supply

chain, companies can collect sales and production
data daily, or more frequently, and make decisions
based on the latest information.

groups, as well as individuals, management

information systems make it easy for teams to make
collaborative decisions. In a project team, for
example, management information systems enable

all members to access the same essential data, even

Strategic Planning (DSS):

if they are working in different locations.

Definition of goals, policies etc.

Interpretation

Determination of organizational objectives.

Management information systems help decisionmakers understand the implications of their

decisions. The systems collate raw data into reports
in a format that enables decision-makers to quickly
identify patterns and trends that would not have
been obvious in the raw data. Decision-makers can
also use management information systems to
understand the potential effect of change. A sales
manager, for example, can make predictions about
the effect of a price change on sales by running
simulations within the system and asking a number

Management Control & Tactical Planning

(MIS):
Acquisition of resources
Establishment and monitoring of budgets
Operational Planning & Control (TPS):
Effective and efficient use of existing
facilities
Resources to carry out activities within
budget constraint.

of what if the price was questions.

Presentation
The reporting tools within management information
systems enable decision-makers to tailor reports to
the information needs of other parties. If a decision
requires approval by a senior executive, the
decision-maker can create a brief executive
summary for review. If managers want to share the
detailed findings of a report with colleagues, they
can create full reports and provide different levels
of supplementary data.
MIS STRUCTURE ON THE
MANAGEMENT ACTIVITY

BASIS

OF

Management
information
system
support
management activity this means that the structure of
an information system can be classify in term of a
hierarchy of management planning and control
activities.
Hierarchy of management activity
The following categories of management planning
and control are as follows:

All the three levels of management activity can be

differentiated on the basis of the planning horizon
for each level. Strategic planning deals with long
term considerations, the decision to be made are
concerned with the choice of business direction,
market strategy, product mix etc.
Management control and tactical planning has a
medium term planning horizon. It includes
acquisition and organization of resources,
structuring of work and acquisition and training of
personnel.
Operational planning and control is related to short
term planning. MIS provides useful information to
the different levels of management for discharging
their function more effectively and efficiently in
order to understand design suitable management
information system.
This means that the structure of management
information can be expressed in terms of different
levels of management activity. There are three
important levels of management namely strategic
management, management control or tactical
management and operational management. These
levels of management activity are discussed below.

Strategic Management
The first area of management is strategic planning
level or top level management. Top level
management consists of board of directors and other
chief executives. They are ranking officers of the
organization. Top level management develops over
all organizational goals, strategies, policies and
objectives through long range strategic planning.
They integrate the functions of entire organization.
Strategic managers make decisions that affect the
entire organization. Their decisions may also leave
a long term impact in the organization. Here the
decision maker develops objectives and allocates
resources to attain these objectives. Decisions of
this type are made over a long period of time and
usually involve huge investments. Developing and
introducing a new product in the market, the
opening of branches abroad, mergers or acquisition
etc. is some of the examples for strategic decisions.
Management Control or Tactical Management
Management control level or middle level
management decisions involve financial or
[personal consideration. They make wide ranging
decisions for their subordinates on the basis of
general guide lines received from the top level
management. They develop medium range plans
and defining objectives of their departments. These
managers are responsible for finding the best
operational measures to accomplish the strategic
decisions set by the top level management.
They make plans and compare the actual
performance with standards. Then they determine
variances if any and take remedial measures to
avoid them in future. For example if the top level
managers to make decisions regarding the
acquisition of hardware, software and imparting
training to staff under him.

activities more effectively and efficiently. They are

in charge of small group or subordinates. These
managers implements policies handed over to them
by their superiors. With in these policies, they make
decisions that affect their small units for a short
period .preparation of pay roll and inventory
management are examples of operational control
level decisions.

Management level and Information requirement

The information requirement of management
depends on the different levels of management. The
model of managerial pyramid was popularized by
Robert N. Anthony. He contributed new levels of
management on the basis of planning level,
management control level and operational control
level are these three revised levels of management.
It true that top level managers spend more time on
strategic decisions than supervisors in the bottom
level of management. While top managers spend
very little time, operational supervisors spend more
time to take operational decisions. The type of
information required by managers is directly related
to the level of management and structure of decision
situation. The operational management level
requires regular detailed reports to manage the day
to day affaires of business.
Three levels of management activity can be
differentiated on the basis of the planning aspects
for each level. Different management activities
functions will have different information
characteristics. The following table provides
different information characteristics by different
level of management. It is based on the work of G.
Anthony Gory and Michael Scott Morton in the
early 1970s.

Operational Management

*Information
management

System

for

operational

Operational
management
or
lower
level
management deals with routine activities. They
make short term plans to carry out day to day

The responsibility of operational level management

is to supervise operational activities. Operational
control makes use of pre-established procedures and

decision rules. A large percentage of decisions are

programmable. The procedures to follow are quite
stable. They supervise the day to day activities.
The informational source of operational control is
mainly come from internal data generated from
transactions.

* Informational system for tactical management

Management control information is required by
managers of departments, profit centers etc to
measure performance, decide control actions,
Formulate new decision rules to be applied by
operational personnel. They require only
information in summary form
Management control makes use of both internal
&external data.

*Information system for strategic management

The purpose of strategic planning is to formulate
strategies to achieve organization goals. They make
long term plans. Strategic planning decisions occur
only once in a while. Strategic planning requires
summarized data from a variety of source. They
depend upon external data such as competitors
policy, market condition, government policies etc.
or decision making.

Management information system cannot be applied

effectively at the strategic planning level. The
success of the strategic decisions depends on the
skills, experience and the judgment ability of human
decision makers in the interpreting data and
information. Hence decisions at the strategic level
are unstructured and non programmed.

Therefore it is concluded that many of the changes

in the information needs can be attributed to the

degree of decision structure at each level will be

more structured , those at the management control
level are semi-structured and those at the strategic
level are more unstructured. Therefore the
information system should be designed to meet the
information requirements of managers at all levels.

MIS
STRUCTURE
BASED
ORGANISATIONAL FUNCTIONS

ON

The structure of MIS can also be described in terms

of organizational functions which make use of
information. The term organizational function
information systems is used to describe a variety of
information system that support an organizational
function such as accounting, finance, production,
marketing, human resource management etc. Each
of these functions has its own information needs.
MIS is a typically an integrated combination of
functional information systems that is designed to
meet the info requirements of the functional
subdivisions of an organization. Each of these
functions is considered as a subsystem. These
subsystems have info application related to that
function only. In addition there are common
programs applicable to all functional subsystems.
With in each of these functional subsystems, there
will be application for transaction processing,
operation control, managerial control and strategic
planning.
Functional Subsystems
The important functional subsystems are the
following.
1. Production Subsystem
Production info system support the production
function which includes all activities concerned
with the planning & control of the processes that
produce goods or service. In the production

subsystem there are transaction processing,

operation control, managerial control & strategic
planning. The typical info required at the
transaction processing level is production orders.
The production order is generally based on the sales
orders required by the company.
At the same time operational control level requires
detailed reports comparing actual performance with
the production schedule & identifies the weak areas.
However mgt control requires a summary report
which compares the overall performance to actual
performance. Strategic planning is concerned with
simplifying, automating ,integrating many of the
activities needed to produce goods.
2. Marketing Subsystem
Marketing is another important function of an
organization. The success of an organization
depends on the efficiency of marketing. The
marketing function of an organization is concerned
with the planning, promotion & sale of existing
products in existing markets & the development of
new products & new markets to satisfy existing &
potential customers. Thus mkting performs a vital
function in the operation of the business enterprise.
MIS help analyze dd for different products in
different regions. Its mainly concerned with the
marketing right product to target customers.
Marketing info system provides info for planning,
control & transaction processing in the mkt
function. Strategic & operational info system assists
mkting managers in product planning, pricing
decisions & advertising & sales promotion
strategies. MIS provides info that helps mgt to
decide the number of sales executives to assign
specific products in specific geographical areas.
The basic transaction is to be processed at
transaction processing level is customers orders &
prepares invoice & bills. The operational control

activity includes the day to day scheduling of sales

& promotional activities. Managerial control level
is concerned with comparison of overall
performance with the mkting plan. They require
info relating to customers, competitors etc.
consideration of new mkts & new product mkting
strategies are the issues dealt at the strategic
planning level.
3. Human Resource Subsystem
The HRM function is concerned with the
recruitment,
placement,
compensation
&
development of employees in an organization. It
mainly helps in record keeping & employee
evaluation. Every organization must maintain
correct record of its employees.
Produce pay cheques & pay reports, maintain
personal records & analyze the use of personnel in
business operation are the important activities done
at the transaction processing level. Mgt control level
conducts budget analysis, turnover analysis etc &
showing the variances resulting from planned &
actual performance. Strategic planning of personnel
involved with the planning of alternative strategies
for recruiting, training & compensating employees.
In this regard they have to collect different type of
info from external sources.
4. Finance & Accounting Subsystem
Financial subsystem undertakes the function of
arranging adequate finance to the business at min
cost. This function includes granting credit to
customers, cash mgt & financial arrangement.
Accounting info system record & report the flow of
funds through the organization on a historical basis
& prepares important financial statements like profit
& loss account & balance sheet.

Transaction processing system engaged in the legal

& historical record keeping & produces financial
statements. They undertake activities like order
processing, inventory control, payroll & general
ledger systems. Mgt control level focuses on
planning & control of business operations & they
compare the actual cost of financial resources with
the targeted cost. The strategic planning level for
accounting & finance involves in the long term
strategies connected with financial & accounting
matters.

strategic decision to b taken at the top level

management.
Synthesis of MIS Structure

There are various approaches to describe the

structure of MIS. The structure of MIS has been
explained in terms of decision making, management
activity, organizational functions and operating
elements. These different approaches of MIS can be
combined to get an overall perspective of MIS

5. Logistics Subsystem
The logistic subsystem includes activities like
purchasing, receiving, inventory control &
distribution. The transactions to be processed are
purchase requisitions, manufacturing orders,
receiving reports & shipping orders. The
operational control function make use of info
contained in reports like out of stock items, over
stocked items, inventory turn over reports etc
managerial control level compares the planned &
actual inventory levels, cost of purchased items,
stock outs etc analysis of new distribution
strategies, adoption of new policy towards the
sellers are some of the common tasks dealt at the
strategic planning level.
6. Information Processing Subsystems
Its the responsibility of the info processing
subsystem to provide the necessary info processing
services & resources. Typical transactions for info
processing are requests for processing, changes in
data & program. Managerial control over info
processing requires data on planned & actual
performance. Acquisition of hardware & software
& automation of info processing etc are some of the

structure. This process of combining these different

approaches of MIS is called SYNTHESIS OF
MANAGEMENT INFORMATION SYSTEM. This
can be of two ways

Conceptual structure
Physical structure

CONCEPTUAL STRUCTURE
The conceptual structure of a MIS is a
federation of functional systems viz, production,
finance, personnel and marketing. Each of these
subsystems of information system is supported to
provide information support to executives for
operational control, management control and
strategic planning
Different operational functions have
different
information
requirements.
Their
information requirements vary not only in current
but also in characteristics. In fact the content of
information depends upon the activities to be
performed under an operational function, in turn,
influences the characteristics, which particular
information possesses.
The levels of management activity also
influence the characteristics of information.
Strategic planning requires more external
information. On the other hand management control
level requires more accurate, precise, and repetitive
information. Operation management needs very
detailed information for performing the day- to-day
activities.

The information requirements of each sub

system of information can be met by developing
two type of data files namely UNIQUE and
COMMON files. Unique data files meet the
information requirements of each operational
function at different levels of management activity.
Common data files stores data to meet the general
information requirements of the concern. The data
stored in data files is usually in raw form and hence
it needs processing. These data may be processed
by using software and decision models kept under
model base. The use of data in the data base may be
controlled by data base management system
ORGANISATIONAL MIS
1. Strategic planning
2. Different functions
3. Common programs
4. Management control
5. Operational control
6. Transaction processing
7. Unique files
8. Common data files
9. Model base
10. Common application
11. Database management
12. Database

DATA FLOW DIAGRAM

A data-flow diagram (DFD) is a graphical
representation of the "flow" of data through an
information system. DFDs can also be used for the
visualization of data processing (structured
design).
On a DFD, data items flow from an external data
source or an internal data store to an internal data
store or an external data sink, via an internal
process. DFD can be defines as a diagram about the
data flow between external agents (sources/ sinks)
and the processes and data stores within a system

A DFD provides no information about the timing or

ordering of processes, or about whether processes
will operate in sequence or in parallel. It is therefore

quite different from a flowchart, which shows the

flow of control through an algorithm, allowing a
reader to determine what operations will be
performed, in what order, and under what
circumstances, but not what kinds of data will be
input to and output from the system, nor where the
data will come from and go to, nor where the data
will be stored (all of which are shown on a DFD).
When it comes to conveying how information data
flows through systems (and how that data is
transformed in the process), data flow diagrams
(DFDs) are the method of choice over technical
descriptions for three principal reasons.
1) DFDs are easier to understand by technical
and nontechnical audiences.
2) DFDs can provide a high level system
overview, complete with boundaries and
connections to other systems.
3) DFDs can provide a detailed representation
of system components.
DFDs help system designers and others during
initial analysis stages visualize a current system or
one that may be necessary to meet new
requirements. Systems analysts prefer working with
DFDs, particularly when they require a clear
understanding of the boundary between existing
systems and postulated systems. DFDs represent the
following:
1. External devices sending and receiving data
2. Processes that change that data
3. Data flows themselves
4. Data storage locations
The hierarchical DFD typically consists of a toplevel diagram (Level 0) underlain by cascading
lower level diagrams (Level 1, Level 2) that
represent different parts of the system.
A Data Flow Diagram (DFD) is also known as a
Process Model. Process Modeling is an analysis
technique used to capture the flow of inputs through
a system (or group of processes) to their resulting
output. The model is fairly simple in that there are
only four types of symbols process, dataflow,
external entity, data store.

Process An activity or a function that is

performed for some specific reason; can be manual
or computerized; ultimately each process should
perform only one activity

Key Components:

Data Flow single piece of data or logical

collection of information like a bill

Exte
Agen

Data Store collection of data that is permanently

stored
External Entity A person, organization, or
system that is external to the system but interacts
with it

An Example:
Data Flow Diagram for a Banking System

Be aware of the basic rules for Process Modeling:

1. A series of data flows always starts or ends
at an external agent and starts or ends at a
data store. Conversely, this means that a
series of data flows cannot start or end at a
process.
2. A process must have both data inflows and
outflows.
3. All data flows must be labeled with the
precise data that is being exchanged.
4. Process names should start with a verb and
end with a noun.
5. Data flows are named as descriptive nouns.
6. A data store must have at least one data
inflow.
7. A data flow cannot go between an external
agent and a data store, but a process must be
in between.
8. A data flow cannot go between to external
agents, but a process must be in between.
9. A data flow cannot go between to data
stores, but a process must be in between.
10. External agents and data flows can be
repeated on a process model in order to
avoid lines crossing, but do not repeat
processes.

DATA DICTIONARY
A data dictionary is a collection of descriptions of
the data objects or items in a data model for the
benefit of programmers and others who need to
refer to them. A first step in analyzing a system of
objects with which users interact is to identify each
object and its relationship to other objects. This
process is called data modeling and results in a
picture of object relationships. After each data
object or item is given a descriptive name, its
relationship is described (or it becomes part of some
structure that implicitly describes relationship), the
type of data (such as text or image or binary value)
is described, possible predefined values are listed,
and a brief textual description is provided. This
collection can be organized for reference into a
book called a data dictionary.
When developing programs that use the data model,
a data dictionary can be consulted to understand
where a data item fits in the structure, what values it

may contain, and basically what the data item

means in real-world terms. For example, a bank or
group of banks could model the data objects
involved in consumer banking. They could then
provide a data dictionary for a bank's programmers.
The data dictionary would describe each of the data
items in its data model for consumer banking (for
example, "Account holder" and ""Available
credit").
DATABASE MANAGEMENT SYSTEM
Collection of interrelated data
Set of programs to access the data
DBMS contains information about a
particular enterprise
DBMS provides an environment that it both
convenient and efficient to use
Purpose of database systems
Database management systems were developed to
handle the following difficulties of typical fileprocessing systems supported by conventional
operating systems.

Data redundancy and inconsistency

Difficulty in accessing data
Data isolation multiple files and formats
Integrity problems
Atomicity of updates
Concurrent access by multiple users
Security problems

Database administrator
Coordinates all the activities of the database system;
the database administrator has a good understanding
of the enterprises information resources and needs.
Database administrators duties include:
Schema definition
Storage structure and access method
definition
Schema
and
physical
organization
modification
Granting user authority to access the
database
Specifying integrity constraints
Acting as liaison with users

Monitoring performance and responding to

changes in Requirements
Database users
Users are differentiated by the way they expect to
interact with the system
Application programmers interact with system
through DML calls
Sophisticated users form requests in a database
query language
Specialized users write specialized database
applications that do not fit into the traditional data
processing framework
Naive users invoke one of the permanent
application programs that have been written
previously
WORD PROCESSING
Word processing is an application program that
allows you to create letters, reports, newsletters,
tables, form letters, brochures, and Web pages.
Using this application program you can add
pictures, tables, and charts to your documents. You
can also check spelling and grammar.
MAIN FEATURES OF WORD PROCESSING
The main features are:
1. You can create professional documents fast,
using built-in and custom templates.
2. You can easily manage large documents
using various features like the ability to
create table of contents, index, and crossreferences.
3. You can work on multiple documents
simultaneously
4. With the help of mail merge, you can
quickly create merge documents like mass
mailings or mailing labels.
5. AutoCorrect and AutoFormat features catch
typographical errors automatically and allow
you to use predefined shortcuts and typing
patterns to quickly format your documents.
6. The print zoom facility scales a document
on different paper sizes, and allows you to

print out multiple pages on a single sheet of

paper.
7. The nested tables feature supports putting
one table inside another table.
8. You can export and save your word
documents in PDF and XPS file format.
STARTING MS WORD PROGRAM
You can start your Word program different ways.
One way is using Start button:
1. Click on the Start button.
2. In the menu that appears select All Programs>Microsoft Office->Microsoft Office Word 2007.
In few seconds you will see Word screen on the
monitor.

If the document is already named and saved earlier,

it will simply save the document. On the other hand,
if the file is a new document then it will prompt you
by opening Save As dialog box. Select the folder
where you want to place your document in Save In:
box, type the name of the document in File Name:
box, and then click OK.
You can also save a new document by choosing
CTRL+A on the keyboard and then selecting the
above actions in Save As dialog box.
WHAT IS MICROSOFT WORD?
Microsoft Word is one of the Word Processing
Software, which is used to create Professional
quality documents.
Features of MS- WORD

Create a New Document

To open a new document, follow one of the
following methods:
1. Click the New Document button on the menu bar.
2. Press CTRL+N keys on the keyboard.
Open an Existing Document
Click on the office 2007 button at the top left corner
of your screen to open an existing document, follow
one of the following methods:
1. Click the Open File button on the menu bar.
2. Press CTRL+O keys on the keyboard.
3. Each of the above method will show the Open
dialog box. Choose the file and click the Open
button.
Save a New/Existing Document
To save a new/existing document that is opened,
follow one of the following methods:
1. Click the Save button on the menu bar.
2. Press CTRL+S keys on the keyboard.

Interface: It provides menus, toolbars, status

bar, specifying page, line number, ruler and
scroll bars.
Entering and Editing Text: It provides
word wrap, overtype and insert modes, auto
correct facility, cut, copy, paste.
Formatting Text: Character formatting
using font size, style-bold, italic, underline,
superscript, subscript, etc, case. Paragraph
formats like line and paragraph spacing,
indentation and alignment (left, right, center,
justify), border, shading, bullets, numbering,
etc.
Document
Formatting:
Page
size,
orientation, margins, Header and Footer,
columns and sections etc.
Special Features: Language tools (spell,
grammar checker), table, mail merge, adding
graphics and sounds, document templates,
etc.

MENU OPTIONS IN WORD

1. File: This menu contains all file options
to open a new document save, print, print
preview and page setup.
2. Edit: This contains options useful for
editing text like cut, copy, paste, undo, redo.
3. View: Options are provided to specify the
layout style of document on screen.
4. Headers, Footers, Toolbars can also be
added or removed. The document size (on
screen) can be specified using the zoom
option.
5. Insert: This provides more sophisticated
options like inserting page breaks, page
numbers, time, special symbols, graphical
objects, pictures etc. within the document.
6. Format: These provide text and paragraph
formatting features like inserting bullets or
numbers, borders and shading, text case and
direction, font and color, line spacing etc.
7. Tools: This provides a set of utilities like
spell check, grammar, word count, sort
facility, page count, mail merge etc.
8. Label: Allows inserting tables in a word
document and provides many table
formatting features.
9. Window: This helps keep track of all open
windows in word. This helps in switching
from one document to another.
10. Help: Provides extensive help on any
features of WORD.
SPREAD SHEETS
A spread sheet is a program to arrange data
in a tabular format. It is however different
than normal table used in word processor by
number of ways. Spread sheet provides
graphics and data base functions. It provides
easiest way to enter data, process the data,
analyze the information and represent the
information in the tabular as well as in
graphical manner.

The use of statistical and mathematical

(trigonometric) functions make calculations
and re calculations easier for any user. A
systematic representation of data leads data
base management in spread sheets. A data

base is a collection of records or data that

are interrelated. A spreadsheet enables
database management easier with the help of
available functions and tools.

WHAT IS MICROSOFT EXCEL?

MS- Excel is the spreadsheet software
developed by Microsoft and comes as a part
of the MS-OFFICE set.
Following are the usage of MS-Excel:
Preparation of Budgets
Preparation of Annual reports
Portfolio analysis and management
Sales, Purchase and other Invoices
Production scheduling.
Loan and deposit analysis
Tax Management
Statistical Analysis
Statements of Accounts payable and
receivable.
It is also used to enter numerical data, sort
and analyze, create charts, etc.
MS EXCEL INTERFACE
a. When we open the Excel, the Excel
application window opens with a new Excel
workbook. A workbook is a multi-page
Excel document. Each page in the workbook
is called a worksheet, and the active
worksheet is displayed in the document
window. At the left end of the horizontal
scroll bar there are sheet tabs and
navigation buttons. Use the sheet tabs to
move to another worksheet and the
navigation buttons to scroll the sheet tabs.
b. The worksheet is divided into rows
(maximum 65,536), columns (256 columns
named A, B, Z, AA, AB, . . .) and cells,
separated by gridlines. Columns are vertical
divisions. The first column is column A, and
the letter A appears in the column heading.
The horizontal rows are numbered. The
intersection of a row and column is called a

cell where data is entered.

c. Each cell is identified by a cell address
(reference), which is the columns letter
followed, by the row number. Cells can
contain text, numbers or mathematical
formulas.
There are menu's, toolbars, a special
formula bar to type formulae, scroll bars,
status bar.

6. Spell Check: Use the spell checker to correct

spelling errors on the worksheet. Cut,
7. Copy, Paste, and Format Painter: These
actions are explained in the Modifying A
Worksheet section.
8. Undo and Redo: Click the backward Undo
arrow to cancel the last action you performed,
whether it by entering data into a cell, formatting a
cell, entering a function, etc. Click the forward
Redo arrow to cancel the undo action.
9. Insert Hyperlink: To insert a hyperlink to a
web site on the Internet, type the text into a cell
you want to be the link that can be clicked with the
mouse. Then, click the Insert Hyperlink button and
enter the web address you want the text to link to
and click OK.
10. Autosum, Function Wizard and Sorting:
These features are discussed below in detail.
11. Zoom: To change the size that the worksheet
appears on the screen, choose a different
percentage from the Zoom menu.

The Standard Tool bar

This toolbar is located just below the menu bar at
the top of the screen and allows you to quickly
access basic Excel commands.

Use of Computer in Managerial Operations

Following list demonstrates the various applications
of Computers in today's arena.
Business

1. New: Select File -> New from the menu bar,

press CTRL+N, or click the New button to create a
new workbook.
2. Open: Click File -> Open from the menu bar,
press CTRL+O, or click the Open folder button to
open an existing workbook.
3. Save: The first time you save a workbook, select
File -> Save AB and name the file. After the file is
named click File -> Save, CTRL+S, or the Save
button on the standard toolbar.
4. Print: Click the Print button to print the
worksheet.
5. Print Preview: This feature will allow you to
preview the worksheet before it prints.

The computer's characteristic as high speed of

calculation, diligence, accuracy, reliability, or
versatility has made it an integrated part in all
business organizations.
Computer used in business organization for:
Payroll Calculations
Budgeting
Sales Analysis
Financial forecasting
Managing employees database
Maintenance of stocks etc.
Banking
Today Banking is almost totally dependent on
computer.
Banks provide following facilities:

Banks on-line accounting facility, which

include
current
balances,
deposits,
overdrafts, interest charges, shares and
trustee records.
ATM machines are making it even easier for
customers to deal with banks.

At Home Shopping: At home shopping has

been made possible through use of
computerized catalogues that provide access
to product information and permit direct
entry of orders to be filled by the customers.

Health Care
Insurance
Insurance companies are keeping all records up to
date with the help of computer. The Insurance
Companies, Finance houses and Stock broking
firms are widely using computers for their concerns.
Insurance Companies are maintaining a database of
all clients with information showing
how to continue with policies
starting date of the policies
next due installment of a policy
maturity date
interests due
survival benefits
bonus
Education
The computer has provided a lot of facilities in the
Education System.

The uses of computer provide a tool in the

Education system is known as CBE
(Computer Based Education).
CBE involves Control,
Evaluation of learning.

Delivery

and

The computer education is very familiar and

rapidly increasing the graph of computer
students.
There are number of methods in which
educational institutions can use computer to
educate the students.

It is used for prepare a database about

student performance and analysis are carried
out.
Marketing

In Marketing uses of computer are following:

Advertising: With computers, advertising

professionals create art and graphics, write
and revise copy, and print and disseminate
ads with the goal of selling more products.

Computers have become important part in all

Medical Systems.
The computers are being used in hospitals to keep
the record of patients and medicines. It is also used
in scanning and diagnosing different diseases. ECG,
EEG, Ultrasounds and CT Scans etc. are also done
by computerized machines.
Some of major fields of health care in which
computer are used:
Diagnostic System: Computers are used to
collect data and identify cause of illness.
Lab-diagnostic System: All tests can be
done and reports are prepared by computer.
Patient Monitoring System: These are
used to check patient's signs for abnormality
such as in Cardiac Arrest, ECG etc.
Pharma Information System: Computer
checks Drug-Labels, Expiry dates, harmful
drug side effects etc.

Nowadays, computers are also used in

performing surgery.

Engineering Design
Computers are widely used in engineering purposes.
One of major areas is CAD (Computer aided
design).CAD provides creation, edition, and
modification of image. Some fields are:
Structural Engineering: Requires stress
and strain analysis required for design of
Ships, Buildings, Budgets, and Airplanes
etc.
Industrial Engineering: Computers deals
with
design,
implementation
and
improvement of Integrated systems of
people, materials and equipments.
Architectural Engineering: Computers
help in planning towns, designing buildings,
determining a range of buildings on a site
using both 2D and 3D drawings.

Military
Computers are largely used in defense. Modern
tanks, missiles, weapons etc. employ computerized
control systems. Some military areas where a
computer has been used are:
Missile Control
Military Communication
Military operation and planning
Smart Weapons
Communication
Communication means to convey a message, an
idea, a picture or speech that is received and
understood clearly and correctly by the person for
whom it is meant. Some main areas in this category
are:
E-mail
Chatting
Usenet
FTP
Telnet
Video-conferencing
Government Applications
Computers plays an important role in government
applications. Some major fields in this category are:
Budgets
Sales tax department
Income tax department
Male/Female ratio
Computerization of voters lists
Computerization of Driving Licensing
system
Computerization of PAN card
Weather Forecasting.
Mr. K. P. Tripathi

UNIT-IV
DSS IS AN AID TO DECISION MAKING & SUPPORT
FOR INTELLIGENCE
Decision Support Systems (DSS) are computer-based information systems
designed in such a way that help managers to select one of the many
alternative solutions to a problem. It is possible to automate some of the
decision making processes in a large, computer-based DSS which is
sophisticated and analyze huge amount of information fast. It helps
corporate to increase market share, reduce costs, increase profitability and
enhance quality. The nature of problem itself plays the main role in a
process of decision making. The problem can be classified as structured,
semi-structured and unstructured i.e. the problem can vary from structured
to unstructured or may fall between two extremes as semi-structured. A
structured problem is one where the optimum solution can be reached
through known steps. An unstructured problem is one when it is not
possible to reach an optimum solution. A semi-structured problem is one
that is neither structured nor totally unstructured. It may be possible to
work out the optimum solution based on the criticality of the problem. Thus,
A DSS is an interactive computer based information system with an
organized collection of models, people, procedures, software, databases,
telecommunication, and devices, which helps decision makers to solve
unstructured or semi-structured business problems.

Concept and Meaning of DSS

A Decision Support System (DSS) is an interactive, flexible, and adaptable
computer based information system that utilizes decision rules, models, and
model base coupled with a comprehensive database and the decision
makers own insights, leading to specific decisions in solving problems that
would not be amenable to management science models. Thus, a DSS
supports complex decision making and increases its effectiveness. DSS
provides support for decision-makers mainly in semi-structured and
unstructured situations by bringing together human judgment and
computerized information. Support is provided for various managerial levels,
ranging from top executives to line managers.

Characteristics of DSS
1. Handle large amounts of data like database searches
2. Obtain and process data from different sources including internal and
external data stored on mainframe systems and networks
3. Provide report and presentation flexibility to suit the decision maker's
needs
4. Have both textual and graphical orientation like charts, trend lines,
tables and more
5. Perform complex, sophisticated analysis and comparisons using
advanced software packages
6. Support optimization, satisfying, and heuristic approaches giving the
decision maker a great deal of flexibility in solving simple and complex
problems

7.

Perform "what-if" and goal-seeking analysis

[6]

Capabilities of DSS
1. Support for problem-solving phases including the intelligence, design,
choice, implementation and monitoring
2. Support for different problem structures ranging from high structured
and programmed to unstructured and non-programmed
3. Support for various decision-making levels including operational-level
decisions, tactical-level decisions and strategic decisions [6] [15]

Components of Decision Support System

Internet,
intranets,
extranets

Other
Computer-based
systems
Data: external and
internal
Data
Management

Model
Management

External
Model

Knowledge-based
subsystems
User interface

Organizational
Knowledge Base

Manager (User)

Figure 1: A Schematic view of DSS

A DSS application can be composed of following subsystems:

Data Management subsystem: The database management subsystem
includes a database, which contains relevant data for the situation and is
managed by software called the database management system (DBMS). The
database management subsystem can be interconnected with the corporate
data warehouse, a repository for corporate relevant decision-making data.
Model Management subsystem: The model base gives decision makers
access to a variety of models and assist them in decision making. The model
base can include the model base management software (MBMS) that
coordinates the use of models in a DSS. This component can be connected
to external storage of data.
Knowledge-based Management subsystem: This subsystem can support
any of the other subsystem or act as an independent component. It provides
intelligence to augment the decision makers own. It can be interconnected
with the organizations knowledge repository, which is called the
organizational knowledge base.

User Interface subsystem: The user interface, also called the dialog
management facility, it allows users to interact with the DSS to obtain
information. The user interface requires two capabilities; the action
language that tells the DSS what is required and passes the data to the DSS
and the presentation language that transfers and presents the user results.
The DSS generator acts as a buffer between the user and the other DSS
components, interacting with the database, the model base and the user
interface.

Decision Making and Problem Solving Process

A Problem occurs when a system does not meet its established goals or does
not work as planned. Problem solving may also deal with identifying new
opportunities. Problem solving is the most critical activity a business
organization undertakes. Problem solving begins with decision making.

Intelligence
Problem
Solving

Design

Choice

Decision
Making

Implementation

Monitoring

Figure 2: Decision Making and Problem Solving Process

The Decision making process starts with the intelligence phase, where,
potential problems and /or opportunities are identified and defined. In the
design stage, alternative solutions to the problem are developed. In the
choice stage, a course of action is selected. In the implementation stage,
action is taken to put the solution into effect. In the monitoring stage, the
implementation of the solution is evaluated to determine if the anticipated
results were achieved and modify the process.

Design and Development of DSS/Approaches to development

DSS
The development process of DSS relates with the long-term business plans
of the organizations. DSS requires resources like capital, time and capacity.
The end result is information in the form of reports. Most of the
organizations do not recognize information as a resource. They see
information as a routine necessity. As an organization grows, the
information also increases manifold. The DSS plans are developed

concurrent to the business plans. An organization of any size deals with

numerous pieces of information.
The Decision Support System (DSS) may be developed using following
ways:
1. Prototype method
2. Life cycle approach
In the prototype method, initial methods are developed first. Once
implemented, the system is refined and modified as per new specifications.
This iterative process is followed till the system is accepted by the user.
In life cycle approach, the DSS development is carried out through
different phases. The phases are: Intelligence, Design, Choice,
Implementation and Monitoring. The choice of DSS design is decided on the
basis of nature of the system and its applications.

DECISION TREE
A decision tree is a graph that uses a branching method to illustrate every
possible outcome of a decision.
Decision trees can be drawn by hand or created with a graphics program or
specialized software. Informally, decision trees are useful for focusing
discussion when a group must make a decision. Programmatically, they can
be used to assign monetary/time or other values to possible outcomes so
that decisions can be automated. Decision tree software is used in data
mining to simplify complex strategic challenges and evaluate the costeffectiveness of research and business decisions. Variables in a decision tree
are usually represented by circles.
Heres a simple example: An email management decision tree might begin
with a box labeled Receive new message. From that, one branch leading off
might lead to Requires immediate response. From there, a Yes box leads
to a single decision: Respond. A No box leads to Will take less than three
minutes to answer or Will take more than three minutes to answer. From
the first box, a box leads to Respond and from the second box, a branch
leads to Mark as task and assign priority. The branches might converge
after that to Email responded to? File or delete message.

decision

tree is

like graph or model of

decision

decisions

support
and

their

tool

that

possible

uses

tree-

consequences,

including chance event outcomes, resource costs, andutility. It is one way to

display an algorithm.
Decision

trees

are

commonly

used

in operations

research,

specifically

in decision analysis, to help identify a strategy most likely to reach a goal.

A decision tree is a flowchart-like structure in which internal node represents
test on an attribute, each branch represents outcome of test and each leaf node
represents class label (decision taken after computing all attributes). A path
from root to leaf represents classification rules.

In decision analysis a decision tree and the closely related influence diagram is
used as a visual and analytical decision support tool, where the expected
values (or expected utility) of competing alternatives are calculated.
A decision tree consists of 3 types of nodes:
1. Decision nodes - commonly represented by squares
2. Chance nodes - represented by circles
3. End nodes - represented by triangles
Decision

trees

are

commonly

used

in operations

research,

specifically

in decision analysis, to help identify a strategy most likely to reach a goal. If in

practice decisions have to be taken online with no recall under incomplete
knowledge, a decision tree should be paralleled by a probability model as a best
choice model or online selection model algorithm. Another use of decision trees
is as a descriptive means for calculating conditional probabilities.
Decision

trees, influence

diagrams, utility

functions,

and

other decision

analysis tools and methods are taught to undergraduate students in schools of

business, health economics, and public health, and are examples of operations
research or management science methods.

Decision tree building blocks

Decision tree elements

Drawn from left to right, a decision tree has only burst nodes (splitting paths)
but no sink nodes (converging paths). Therefore, used manually, they can grow
very big and are then often hard to draw fully by hand. Traditionally, decision
trees have been created manually - as the aside example shows - although
increasingly, specialized software is employed.

Decision tree using flow chart symbols

Commonly a decision tree is drawn using flow chart symbols as it is easier for
many to read and understand.

Analysis example
Analysis

can

take

into

account

the

decision

maker's

(e.g.,

the

company's) preference or utility function, for example:

The basic interpretation in this situation is that the company prefers B's risk
and payoffs under realistic risk preference coefficients (greater than $400Kin
that range of risk aversion, the company would need to model a third strategy,
"Neither A nor B").
A decision tree can be represented more compactly as an influence diagram,
focusing attention on the issues and relationships between events.

The squares represent decisions, the ovals represent action, and the diamond
represents results.

Advantages and disadvantages

Amongst decision support tools, decision trees have several advantages.
Decision trees:

Are simple to understand and interpret. People are able to understand

decision tree models after a brief explanation.

Have value even with little hard data. Important insights can be
generated based on experts describing a situation (its alternatives,
probabilities, and costs) and their preferences for outcomes.

Possible scenarios can be added

Worst, best and expected values can be determined for different scenarios

Use a white box model. If a given result is provided by a model.

Can be combined with other decision techniques. The following example

uses Net Present Value calculations, PERT 3-point estimations (decision
#1) and a linear distribution of expected outcomes (decision #2):

Disadvantages of decision trees:

For data including categorical variables with different number of

levels, information gain in decision trees are biased in favor of those
attributes with more levels.

Calculations can get very complex particularly if many values are

uncertain and/or if many outcomes are linked.

UNIT-V
USE OF COMPUTERS IN MANAGEMENT FUNCTIONS
1. USES OF COMPUTERS IN FINANCE
The discovery of computers has transformed the financial industry and how business deals
are transacted. It is possible for accountants to keep large amounts of data, conduct
intricate calculations and manage financial transactions from a computer. Computer
technology enables global economies capabilities impossible decades ago. Computers
influence both business and personal financial management.

Communication
Computers enhance financial communication within members of an organization through a
network system connecting various departments. With the use of computers, key financial
decision makers are able to send financial reports and strategies instead of holding
meetings. This system allows finance people to get updates on world stock exchange, and
price changes affecting their business. The use of emails also enables finance people to
inform other departments and consumers of key policy changes, such as price
modifications on products and goods.
Spreadsheet Software
Spreadsheet software influences the way large- and medium-sized firms, as well as
individuals, key in and organize financial data. Spreadsheet applications are used to run
day-to-day financial tasks, such as compiling financial data, presenting the data in an
organized manner through the use of charts and graphs, drawing budgets and calculations
of complex transactions. This application comes with computer programs, such as
Microsoft excel, that enables organizations and individuals to plan finances without
wasting too much time.
Data Storage
Computerization makes data storage manageable and less bulky. Computers enable
organizations to store large amounts of files in a small space, allowing us to have a large
track of historical transactions, while avoiding consumption of space that would otherwise
be consumed by piles of files in cabinets. Keeping financial records is critical for
organizations, as well as individuals, as it allows tracking of payment records, debts owed,
purchases done and bank transactions made. Having detailed financial records helps an
organization to continually audit and analyze business performance.
Programmed Transactions
Computerized financial software conducts programmed business and accounting
transactions. Most finance departments utilize accounting applications, such as
QuickBooks, to perform financial transactions and to manage a company's income and
expenditure. These programmed

applications enable an organization or individuals to keep track of financial operations and

also conduct complex transactions effortlessly without consuming a lot of time and labor
that would otherwise be used in case of manual transactions. Organizations can purchase
software depending on nature of work; other applications include Grant Management
application, and payroll software.
Financial Information
Computers have enhanced access to wide financial information through Internet access.
Business operators or individuals can now access information on investment prospects,
and conduct a detailed research on its profitability. There is also wide financial information
available on the Internet, such as world prices, tax changes, inflation rate and currency
exchange rates making it easier for institutions and individuals to make informed financial
decisions. The Internet provides a wide source of information and access to specific
financial reports of companies in trade.

2. USES OF COMPUTERS IN MARKETING

Creating a product or service that fulfills a consumer need is necessary for a small
business to achieve success, but a strong concept alone is not enough to ensure
profitability. Small businesses have to convince consumers to try a new product and find
ways to deliver those products to consumers to be successful. Computers can be a powerful
tool for assisting small companies in many aspects of marketing new products and
services.
Web-Based Promotion
The Internet provides businesses with an advertising channel that can potentially reach
millions of customers all around the world. Web advertising can take many forms,
including banner and in-text advertisements on popular websites, emails sent to past or
potential customers and video advertisements played before or during online videos.
Advertising on the web can be cheaper than traditional advertising through media such as
TV, radio and print, which can make it attractive to new companies with small advertising
budgets.
Market Research
Market research is the collection of data concerning the current state of a market,
consumer preferences and competitors. Administering surveys to customers is one of the
most common ways that businesses conduct market research. Computers offer a way for
companies to give surveys without actually going out and meeting customers. Businesses
can gather data by offering surveys on their own official websites, using third-party Internet
surveying services or sending out email questionnaires.
Distribution
The methods that a company uses to distribute products and services to customers are a
core component of its overall marketing strategy. Computers allow companies to distribute
their products and services to remote users via the Internet, without the need for a physical
office or retail storefront. Digital distribution can be advantageous to small companies that
want to sell to consumers all across the country and keep start-up costs low.

Creating Advertisements for Other Media

While the Internet allows companies to use computers for promotion, research and
distribution, computers are also used to help prepare advertisements for other media. For
example, modern print magazines and newspapers often use computers to help design the
layouts of pages. Graphic designers and media specialists use computers to edit
photographs for print media ads, audio for the radio spots and video for TV commercials.

3. USES OF COMPUTERS IN HRM

The policies and practices involved in carrying out the people or human resource aspects
of a management position, including recruiting, screening, training, rewarding, and
appraising.
Human Resource Management System

It refers to the systems and processes at the intersection between human resource
management (HRM) and information technology.
It merges HRM as a discipline and in particular its basic HR activities and processes
with the information technology field.
The function of Human Resources departments is generally administrative and not
common to all organizations.
Organizations may have formalized selection, evaluation, and payroll processes.
The HR function consists of tracking existing employee data which traditionally
includes personal histories, skills, capabilities, accomplishments and salary.
To reduce the manual workload in administrative activities.
Organizations began to electronically automate many of these processes by
introducing specialized Human Resource Management Systems.
Currently Human Resource Management System encompasses:
Payroll.
Work Time.
Benefits Administration.
HR management Information system.
Recruiting.
Training/Learning Management System.
Performance Record.
Employee Self-Service.

Payroll

The payroll module automates the pay process.

Data is generally fed from the human resources and time keeping modules to
calculate automatic deposit and manual cheque writing capabilities.
This module can encompass all employee-related transactions as well as integrate
with existing financial management systems.
Work Time

The work time gathers standardized time and work related efforts.
The most advanced modules provide broad flexibility in data collection methods,
labour distribution capabilities and data analysis features was outdated.
Cost analysis and efficiency metrics are the primary functions.
HR Management Information System

The HR management module is a component covering many other HR aspects from

application to retirement.
The system records basic demographic and address data, selection, training and
development, capabilities and skills management, compensation planning records
and other related activities.
Human resource management function involves the recruitment, placement,
evaluation, compensation and development of the employees of an organization.
Recruiting

Online recruiting has become one of the primary methods.

Analyzing personnel usage within an organization.
Identifying potential applicants.
Recruiting through company-facing listings.
Recruiting through online recruiting sites or publications that market to both
recruiters and applicants.
Training

The training module provides a system for organizations to administer and track
employee training and development efforts.
The system, normally called a Learning Management System.
Courses can then be offered in date specific sessions, with delegates and training
resources being mapped and managed within the same system.

 LMS allow managers to approve training, budgets and calendars alongside

performance management and appraisal metrics.
Employee Self Service

The Employee Self-Service module allows employees to query HR related data and
perform some HR transactions over the system.
Employees may query their attendance record from the system without asking the
information from HR personnel.

The system work without overloading the task on HR department.

E-HRM

E-HRM is the (planning, implementation and) application of information technology

for both networking and supporting at least two individual or collective actors in their
shared performing of HR activities.
E-HRM is not the same as HRIS (Human resource management system) which refers
to ICT systems used within HR departments.
E-HRM is in essence the devolution of HR functions to management and employees.

They access these functions typically via intranet or other web-technology channels

COMPUTER-BASED
INVENTORY
INVENTORY MANAGEMENT SYSTEM

SYSTEM/COMPUTERIZED

An inventory control system is a process for managing and locating objects or

materials. An inventory control system may be used to automate an order
fulfillment process. Such a system contains a list of orders to be received, and
then prompts workers to pick the necessary items, and provides them with
packaging and shipping.

Inventory File Information

Some of the items contained and maintained in each product file are:
Identifier, descriptions, classification, substitute item controls, general ledger controls,
general ordering and stock controls (reorder point, quantity after reorder, order multiples,
safety stock levels, average lead time, etc.), sales commission controls, multiple costs,
pricing and re-pricing controls, item type controls, (standard, serialized, lot/reel/spool),
cycle count controls, purchased/priced/sold ratio controls, order/sell status controls
(frozen from ordering, frozen from selling) stock indicator, general information (packing,

weight, unit of measure, favorite vendor, manufacturer code and model number, etc.), and
more!
Quantity on-hand, quantity committed, net quantity available for sale, quantity on-order,
quantity on backordered, movement, etc. are also maintained and monitored by the system.
Other related product files are:

Customer cross reference

Vendor cross reference
Competitive price
Product interchange
Overflow location
On-site warehouse

Purchase and Stock Management

The
MIS
Purchase
Manager
subsystem
was
designed
to
organize
many
of
the
functions
performed
by
the
department
responsible
for
purchasing
and
stocking
the
goods
which
a
company
resells.
These
functions
include
review
screens
for
inventory
statistics
to
determine
which items are being sold, item profitability, special stocking conditions, reports assisting
in developing orders and definable product performance ranking functions.

Inventory statistics are compiled and maintained by the system. The statistics are used by
the system in order to advise on ordering (what to order), stocking (what to stock), and
notification of slow-moving or dead stock. Some of the statistics that are kept on each item
are:

Performance/ABC Code
Turns
Sales History (units, sales, profit %)
Product Rankings by Sales, Profit,
Units, and Cost
Stock Out Occurrences over last 24 months
Last Stock Out Date
Last Stock Days (number of days)
Lead Days (average, last, best, worst)
Highest in-stock amount and date
Highest one-time sale amount and date (single customer dependency)
Average unit sale per month
Stock sufficiency/customer service levels (in-stock or backorder situation)

What to Order?

The MIS system uses user defined parameters and statistical data in order to determine
what to order. Some of our customers have static usage and lead time products and they
wish to use the simple ordering techniques associated with Low Point, Reorder Points, and
Just-In-Time calculations. Many of customers require a higher degree of sophistication and
choose to use many of the features found in our Purchase Manager module. Some of the
controls found in Purchase manager are:

Order
Order
Order
Order

Controls by Purchase Group

Controls by Vendor
Controls by Performance Class
Control by Product Class

The above order controls allow you to set ordering parameters by:

Lead Time
Safety Stock
Review Cycle
Stocking Days

Individual item ordering controls/overrides are available due to the following conditions:

Single Customer Dominant Item

Contract Item
Low Usage Item
New Item
Item Stock Outs have occurred
Unusual Sales have occurred
Erratic Lead Times exist
Seasonal Item
and more!

Various functions can automatically send results to the MIS Purchase Manager Control
Screen. Buyer(s) can edit the system-generated figures, optimize the order amounts (based
upon vendor terms and products), send a system-generated RFP, and automatically update
the MIS Purchase Order module.

To Stock, Not to Stock, Dispose

Several reports are available in order to determine and notify you of problem stock.

Product Usage Spike

Slow-movers
Overstocked
Item Performance
Hot Movers

Item Pricing and Costing

There are several options within the MIS system that can help establish and maintain
selling prices and
user costs (vendor-published costs).

Columnar Pricing
Matrix Pricing
Contract Pricing
Sale Pricing
Quantity Break Pricing
Inventory Cost/Price Matrix
Class/Type Price and User Cost Percentage Update
Item Pre-Pricing (future price changes)
Electronic updates from your vendor
Excel Price/Cost Import

LIST OF FINANCIAL MANAGEMENT SOFTWARE:

1. Microsoft Money
MS Money is a robust, user-friendly personal finance program that includes features that allow
you to manage your finances, budget, track your investments, bank online, and plan for your
taxes. It is one of the most comprehensive software especially useful for those staying in USA.
Features:

integrate all different currency

balance your checkbook and cash flow

customizable charts

manage taxes

create budget

manage investment

PDA synchronization

2. Quicken
Like MS Money, Quicken helps you with your banking, investing, taxes, financial planning,
budgeting, and more. You can pay bills online, balance your checkbook and reconcile your
bank statement quickly and painlessly. A variety of reports and graphs show you how you
spent your money and compares your actual expenses to your budget.
Features:

money management

Bring your online accounts including checking, savings and credit cards together all in
one place.

See a monthly calendar of your paychecks, bills and expenses to help you schedule bills, set
reminders and most importantly help avoid late fees.

Mark expenses as tax deductible throughout the year, so you have everything ready come
tax time.

import PayPal account transactions

PDA synchronization

3. Excel or Google Spreadsheets

Features:

cash flow spreadsheet

net worth tracking

easy customization, as long as you know how to operate Microsoft Excel

4. Expensr
Expensr is another web-based personal finance app that lets you enter your income and
expense, and then gives you analysis about your money management habit.
Features:

create budgets

track spending

project your spending

can import bank account statements in .ofx, .qfx, and .csv. format

pie chart and timeline chart illustration

social network allow you to tag your profile and compare it with others

5. Gnu Cash
GnuCash is personal and small-business financial-accounting software, freely licensed under
the GNU GPL and available for GNU/Linux, BSD, Solaris, Mac OS X and Microsoft Windows.
Designed to be easy to use, yet powerful and flexible, GnuCash allows you to track bank
accounts, stocks, income and expenses. As quick and intuitive to use as a checkbook register,
it is based on professional accounting principles to ensure balanced books and accurate
reports.

Special Features:

double-entry accounting

stock/mutual fund/bond accounts

QIF/OFX/HBCI Import, Transaction Matching

Financial Calculations

Small-Business Accounting

6. Wesabe
Wesabe is a community site that makes managing your money easy. Enjoy secure access to all
your accounts, painless tools for taking control of your money and reaching your goals, and
members tips and discussions to help you find the best values
Features:
Special features:

tag your spending

compare your spending with other people using the similar tags

7. Money Trackin
Moneytrackin is a free online webapp that allows you to track all your expenses and income
easily and without effort, thus allowing you to have a clear view of your financial situation. It
intends to be a simple yet powerful online budget management tool.
Special features:

Track your money easily from everywhere. Import your data from your bank or another
financial software.

Take part in the community by entering your money saving tips or your favourite places
for best bargains.

Learn new ways to save money with worldwide tips relevant to your money usage and
location.

Sharing budgets and collaborative working of many people together on the same account

Public API to allow the integration with third party applications

8. AceMoney
AceMoney Lite is a freeware personal finance manager. It has all the features of its big brother
except multiple accounts management. As AceMoney, AceMoney Lite helps people organize and
manage their personal finances quickly and easily.
Special features:

AceMoney automates input of orders coming from PayPal, RegNow, RegSoft, SWReg and
Plimus.

provides a loan calculator to plan debt payments and a professional mortgage calculator
to estimate future morgage payments if you are planning to purchase real estate.

Enjoy the security of password protection of every file, scheduled backups and many
other features without having any experience in accounting!

Download and import information from on-line banks in QIF and OFX formats. If you
run a small business, export to HTML, Text, or CSV formats to generate statements or
perform complex statistical analysis.

The software supports more than 150 different currencies and automatically downloads
their exchange rates from Internet.

9. TALLY
Tally Accounting Software - Easy To Use with Dynamic Features
Tally Accounting Software is powered by the proprietary
(Concurrent Multi-lingual Accelerated Technology Engine).

technology

C:MuLate

It's easy to use, with dynamic features designed to simplify day-to-day business operations.
Yet it offers comprehensive accounting structure with inventory, statutory processes, data
synchronization capabilities.
It also has the ability to go globally with business transactions sans language or geographical
barriers.
While Tally Software is robust, its user interface makes it easy to learn and straight forward to
use.
Tally Account Software offers a range of inventory options from simple inventory and stock
management to advanced including invoicing, purchase orders, discount column in invoicing,
flexible units of measure, stock query and multiple stock valuation methods.
Tally Account Software includes Drill down display, complete bookkeeping options, flexible
classification of accounts, general ledger, accounts receivable and payable, bank reconciliation
and more operating with speed, flexibility and online help.
It also has the ability to synchronize data across multiple offices.
This account software is one of the best for financial management providing receivables
turnover, fund flows, variance analysis, consolidation of companies and branch accounting.
Tally Software is both flexible and powerful with seamless integration with the Microsoft suite
of business products.

Tally account software, through various modules including accounts payable, accounts
receivable, payroll and trial balance takes the considerable task of keeping records and
measuring profit and loss and puts it in one cohesive, easy to use package.
The modules usually include:
Accounts Receivable - where you enter monies received, create invoices for customers for
services and products you sell and keep track of all money flowing into your business.
Accounts Payable: The opposite of AR, accounts payable modules pay the bills for products and
services you purchase to keep your business running.
General Ledger - The Big Picture, where you keep the company's "books"
Billing - Usually part of the Accounts Receivable module, this is what is used to create invoices
to your clients.
Inventory - You control the restocking and outflow of products through this module.
Inventory is usually not needed for firms that offer non-tangible goods (ie. consulting, freelance
writing, service-oriented and the like)
Purchase Orders - Depending on what type of company you run, you or may not have need of
purchase orders. These are created to record future inventory that has been ordered but not
received.
Sales Orders - Like Purchase Orders, sales orders come in from your customers and are written
up as sales orders until they go out and are, in turn, invoices created through billing or
Accounts Receivable.
Tally Account software and complexity come in levels depending upon the size and type of
people working with you including yourself, employees, subcontractors and foreign
subcontractors.

SOLVED QUESTIONS OF PREVIOUS EXAMINATIONS, APSU REWA

Choose the correct alternative:
1. In interactive data input a menu is used to:
(a) Enter new data
(b) Add/delete data
(c) Select one out of many alternatives often by a mouse
click
(d) Detect errors in data input
2. For taking decisions data must be
(a) Very accurate
(b) Massive
(c) Collected from diverse source
(d) Processed correctly
3. Tactical information is required by:
(a) Middle managers
(b) Line managers
(c) Top managers
(d) All workers
4. In motor car manufacturing the following type of
information is strategic:
(a) Decision on introducing a new model
(b) Scheduling production
(c) Accessing competitor car
(d) Computing sales tax collected
5. A data dictionary is usually developed:
(a) At requirements specification phase
(b) During feasibility analysis
(c) When DFD is developed
(d) When a database is designed
6. Organizations have hierarchical structures because:
(a) It is convenient to do so
(b) It is done by every organization
(c) Specific responsibilities can be assigned for each level

(d) It provides opportunities for promotions.

7. Every record stored in master file has a key field
because:
(a) It is the most important field
(b) It acts as a unique identification of record
(c) It is the key to database
(d) It is a very concise field
8. Managers in organizations should not design their
own systems as:
(a) Systems have to interact with other systems
(b) It is not their job
(c) They are always very busy
(d) They do not have the special skills necessary to design
systems
9. By data security in DBMS we mean:
(a) Preventing access to data
(b) Allowing access to data only to authorized users
(c) Preventing changing data
(d) Introducing integrity constraints
10. The quality of information which does not hide any
unpleasant information is known as:
(a) Complete
(b) Trustworthy

(c)
11.
(a)
(b)
(c)
(d)
12.
(a)
(b)
(c)
(d)
13.
(a)
(b)
(c)
(d)
14.
(a)
(c)
15.
(a)
(b)
16.
(a)
(b)
(c)
(d)
17.
(a)
(c)
18.
(a)
(b)
(c)
(d)
19.
(a)
(b)
(c)
(d)
20.
(a)
(c)
21.
(a)
(c)
22.
(a)
(c)
23.

Relevant
(d) None of the above
Information systems are modified whenever:
Users requirement change
New computers are introduced in the market
New software tools become available in the market
Other similar organizations modify these system
Changing an operational information system is:
Impossible
Never required
Usually done
Expensive and done selectively
Hardware study is carried out:
After the final system is specified
At the requirements specification stage
Before the requirements are specified
Whenever management decides it is necessary
Operational information is:
Haphazard
(b) Well organized
Unstructured
(d) Partly structured
A data element in data dictionary may have:
Only integer value
(b) No value
Only real value
(d) Only decimal value
A data store in a DFD represents:
A sequential file
A disk store
A repository of data
A random access memory
Which of the below is an output of MIS:
Form
(b) Report
Scanner
(d) None of these
The MIS structured with one main computer system
is called a :
Distributed MIS structure
Hierarchical MIS structure
Centralized MIS structure
Decentralized MIS structure
Tactical information is needed for:
Day-to-day operations
Meet government requirements
Long range planning
Short range planning
Decisions made at the operational management level
tend to be more:
Structured
(b) Semi structured
Unstructured
(d) Self structured
Logical flow of data is:
Data dictionary
(b) Decision tree
Data flow diagram
(d) Flow chart
Data dictionary contain:
Meta data
(b) Full data
Pure data
(d) All
An information system:

(a) Is an organized combination of people, hardware,

software communications networks, and databases
resources
(b) Is a system that collects, transforms and disseminates
information in an organization
(c) Is always computer based
(d) Both (a) and (b) are correct.
24. Which one of the following statements does not apply
to the systems concept?
(a) Feedback consists of data or information concerning the
performance of a system
(b) The control component of a system makes any necessary
adjustments to the input and processing components of
the system to ensure that proper output is produced.
(c) The feedback component of a system monitors and
evaluates information provided by the control
component to determine whether the system is moving
toward its goal.
(d) Input involves capturing and assembling elements that
enter the system so that they can be processed.
25. In an information system, the concept of information
relates best to which one of the following statements?
(a) Data that has been transformed into a meaningful and
useful context for specific end users.
(b) Raw facts or observations
(c) Objective measurements of the attributes of entities or
objects
(d) The raw material resources which are processed into
data.
26. Which one of the following is not one of the steps in
the system approach to problem solving?
(a) Define the problem and develop alternative solutions
(b) Select the solutions
(c) Formulate a hypothesis about the causes or effects of the
phenomena
(d) Design and implement the solution
27. Within the context of an information system, which
one of the following would be considered a typical
managerial end user?
(a) Any manager who personally use information system
(b) Entrepreneurs and managerial level professionals
(c) Senior management only
(d) All of the above
28. The major thrust of strategic information systems is
to:
(a) Develop computer systems that support or shape the
competitive position and strategies of an enterprise
(b) Develop computer systems in order to help knowledge
workers create, organize and share important business
knowledge wherever and whenever needed
(c) Develop computer systems with capabilities normally
associated with human intelligence, such as reasoning,
learning and problem solving
(d) Develop computer systems that provide a variety of
composite or cross-functional capabilities.

29. Information is
(a) Data
(b) Processed Data
(c) Manipulated input
(d) Computer output
30. Data by itself is not useful unless
(a) It is massive
(b) It is processed to obtain information
(c) It is collected from diverse sources
(d) It is properly stated
33. For taking decisions data must be
(a) Very accurate
(b) Massive
(c) Processed correctly (d) Collected from diverse
sources
34. Strategic information is needed for
(a) Day to day operations
(b) Meet government requirements
(c) Long range planning
(d) Short range planning
35. Strategic information is required by
(a) Middle managers
(b) Line managers
(c) Top managers
(d) All workers
36. Tactical information is needed for
(a) Day to day operations
(b) Meet government requirements
(c) Long range planning
(d) Short range planning
37. Tactical information is required by
(a) Middle managers (b) Line managers
(c) Top managers
(d) All workers
38. Operational information is needed for
(a) Day to day operations
(b) Meet government requirements
(c) Long range planning
(d) Short range planning
39. Operational information is required by
(a) Middle managers
(b) Line managers
(c) Top managers
(d) All workers
40. Statutory information is needed for
(a) Day to day operations
(b) Meet government requirements
(c) Long range planning
(d) Short range planning
41. In motor car manufacturing the following type of
information is strategic
(a) Decision on introducing a new model
(b) Scheduling production
(c) Assessing competitor car
(d) Computing sales tax collected
42. In motor car manufacturing the following type of
information is tactical
(a) Decision on introducing a new model
(b) Scheduling production
(c) Assessing competitor car
(d) Computing sales tax collected
43. In motor car manufacturing the following type of
information is operational
(a) Decision on introducing a new model
(b) Scheduling production
(c) Assessing competitor car
(d) Computing sales tax collected
44. In motor car manufacturing the following type of
information is statutory
(a) Decision on introducing a new model
(b) Scheduling production

45.

46.

47.

48.

49.
50.
51.
52.
53.
54.
55.

56.

57.

(c) Assessing competitor car

(d) Computing sales tax collected
In a hospital information system the following type of
information is strategic
(a) Opening a new childrens ward
(b) Data on births and deaths
(c) Preparing patients bill
(d) Buying an expensive diagnostic system
such as CAT scan
In a hospital information system the following type of
information is tactical
(a) Opening a new childrens ward
(b) Data on births and deaths
(c) Preparing patients bill
(d) Buying an expensive diagnostic system
such as CAT scan
In a hospital information system the
following type of information is operational
(a) Opening a new childrens ward
(b) Data on births and deaths
(c) Preparing patients bill
(d) Buying an expensive diagnostic system such as CAT
scan
In a hospital information system the following type of
information is statutory
(a) Opening a new childrens ward
(b) Data on births and deaths
(c) Preparing patients bill
(d) Buying an expensive diagnostic system such as CAT
scan
Volume of strategic information is
(a) Condensed
(b) Detailed
(c) Summarized
(d) Irrelevant
Volume of tactical information is
(a) Condensed
(b) Detailed
(c) Summarized
(d) relevant
Volume of operational information is
(a) Condensed
(b) Detailed
(c) Summarized
(d) Irrelevant
Strategic information is
(a) Haphazard
(b) Well organized
(c) Unstructured
(d) Partly structured
Tactical information is
(a) Haphazard
(b) Well organized
(c) Unstructured
(d) Partly structured
Operational information is
(a) Haphazard
(b) Well organized
(c) Unstructured
(d) Partly structured
Organizations are divided into departments because
(a) it is convenient to do so
(b) each department can be assigned a specific
functional responsibility
(c) it provides opportunities for promotion
(d) it is done by every organization
Organizations have hierarchical structures because
(a) it is convenient to do so
(b) it is done by every organization
(c) specific responsibilities can be assigned for each
level
(d) it provides opportunities for promotions
Which of the following functions is the most unlikely
in an insurance company.
(a) Training
(b) giving loans

(c) bill of material

(d) accounting
58. Which of the following functions is most unlikely in a
university
(a) admissions
(b) accounting
(c) conducting examination
(d) marketing
59. Which of the following functions is most
unlikely in a purchase section of an
organization.
(a) Production planning (b) order processing
(c) vendor selection
(d) training
60. Which is the most unlikely function of a marketing
division of an organization.
(a) advertising
(b) sales analysis
(c) order processing
(d) customer
preference analysis
61. Which is the most unlikely function of a finance
section of a company.
(a) Billing
(b) costing
(c) budgeting
(d) labor deployment
62. The quality of information which is based on
understanding user needs
(a) Complete
(b) Trustworthy
(c) Relevant
(d) None of the above
63. A management information system is one which
(a) is required by all managers of an organization
(b) processes data to yield information of value in
tactical management
(c) provides operational information
(d) allows better management of organizations
64. Decision support systems are used for
(a) management decision making
(b) providing tactical information to management
(c) providing strategic information to management
(d) better operation of an organization
65. Decision support systems are used by
(a) line managers.
(b) top-level managers.
(c) middle level managers. (d) system users
66. Decision support systems are essential for
(a) dayto-day operation of an organization.
(b) providing statutory information.
(c) top level strategic decision making.
(d) ensuring that organizations are profitable.
Compiled by: K.P.Tripathi, Asst. Professor, VIMR Satna

CP - 302 DECISION SUPPORT SYSTEMS AND MANAGEMENT INFORMATION SYSTEM

IMPORTANT QUESTIONS
UNIT-I
1. Explain the role of MIS in a business organization.

4M

2. Management is a combination of art, science and profession. Comment.

4M

3. What type of information is provided by MIS?

4M

4. Discuss the advantages and disadvantages of MIS.

4M

5. Describe in detail about application of Information Technology in MIS. Also discuss about major
future trends in technology.

20M

6. Explain the life Cycle & prototype approach role of MIS at various managerial levels, viz operational,
planning and control.

20M

UNIT-II
1. Explain operating elements of MIS.

4M

2. Explain various constituents/components of MIS.

4M

3. Discuss the system approach to MIS.

4M

4. Explain how MIS can help in decision making.

4/10M

5. Discuss MIS structure on the basis of organizational functions.

4M

6. Discuss MIS structure on the basis of management activity.

4M

7. Differentiate between business data processing systems and MIS.

4M

8. Write a detailed note on synthesis of MIS Structure and its evaluation.

20M

UNIT-III
1. Discuss various levels of Information handling.

4M

2. Explain the characteristics of information at various control levels.

4M

3. What is the role of DFD in computerization? What are the various symbols used in DFD. Also explain
various levels of DFD.

10M

4. Illustrate the use of word processing packages in information handling.

4M

5. Illustrate the use of spreadsheet packages in information handling.

4M

6. Illustrate the use of Database Management packages in information handling.

4M

7. How the computer based information system is better than manual information system? OR
Explain the advantages of computerization.

4M
UNIT-IV

1. List various characteristics of DSS. Also explain the structure of DSS.

10M

2. Differentiate between MIS & DSS.

4M

3. With the help of suitable example explain the purpose of Decision Tree.

4M

4. DSS is an aid to decision making & support for intelligence Comment on this.

20M

also discuss various approaches to development of DSS.

5. Explain various approaches to development of DSS.

10M

UNIT-V

1. Explain the use of Computers in management functions viz. Finance, Marketing, and Operations. 20M
2. Explain computer based HRM. Also explain Data requirement and use of computers in HRM.

4M

3. Explain computer based financial system. Also discuss some financial management software.

4M

4.

Explain the role of computerized inventory management system.

20M

VINDHYA INSTITUTE OF MANAGEMENT & RESEARCH, SATNA

M.B.A. (Third Semester) Pre University Test (PUT), January-2014
DECISION SUPPORT SYSTEMS & MANAGEMENT INFORMATION SYSTEM
Max. Marks: 70

Time: 2 Hours

Note: Attempt questions of all three sections as directed. Distribution of the marks is given within
the section.
Section-A

10x1=10

(Objective Type Questions)

Note: Answer all the following questions. Each question carries 1 marks.
1. Choose the correct alternatives:
(i)

Decision support systems are used for

(a) management decision making
(b) providing tactical information to management
(c) providing strategic information to management
(d) better operation of an organization

(ii)

In motor car manufacturing the following type of information is tactical

(a) Decision on introducing a new model
(b) Scheduling production
(c) Assessing competitor car
(d) Computing sales tax collected

(iii)

Strategic information is
(a) Haphazard
(c) Unstructured

(iv)

(v)

(b) Well organized

(d) Partly structured

A management information system is one which

(a) is required by all managers of an organization
(b) processes data to yield information of value in tactical management
(c) provides operational information
(d) allows better management of organizations
Operational information is required by
(a) Middle managers
(b) Line managers
(c) Top managers
(d) All workers

(vi)

The quality of information which does not hide any unpleasant information is
known as
(a) Complete
(b) Trustworthy

(c) Relevant
(d) None of the above

(vii)

Organizations have hierarchical structures because

(a) it is convenient to do so
(b) it is done by every organization
(c) specific responsibilities can be assigned for each level
(d) it provides opportunities for promotions

(viii)

(ix)

(x)

For taking decisions data must be

(a) Very accurate
(c) Processed correctly

(b) Massive
(d) Collected from diverse sources

Logical flow of data is:

(a) Data Dictionary
(c) Data Flow Diagram

(b) Decision Tree

(d) Flow Chart

Data by itself is not useful unless

(a) It is massive
(b) It is processed to obtain information
(c) It is collected from diverse sources
(d) It is properly stated

Section-B

5x4=20

(Short Answer Type Questions)

Note: Attempt all five questions. Each question carries 4 marks.
2.

Explain the role of MIS in a business organization.

Or

Management is a combination of art, science and profession. Comment.

3.

Explain how MIS can help in decision making.

Or

Discuss the system approach to MIS.

4.

Discuss MIS structure on the basis of organizational functions.

Or

Illustrate the use of word processing packages in information handling.

5.

List various characteristics of DSS. Also differentiate between MIS & DSS.

Or

With the help of suitable example explain the purpose of Decision Tree.
6.

Write in brief about data requirement & use of computers in HRM.

Or

State the name of any five Financial Management Software & discuss the essential features of any
one of them of our own choice in detail.

Section-C

2x20=40

(Long Answer Type Questions)

Note: Attempt any two questions. Each question carries20 marks.
7.

Discuss the major trends and applications of Information Technology.

8.

Write a detailed note on synthesis of MIS Structure and its evaluation.

9.

(a) How the computer based information system is better than manual information system? Explain.
(b) Discuss various levels of Information handling.

10.

DSS is an aid to decision making & support for intelligence comment on this. Also discuss
various approaches to development of DSS.

11.

What is the role of DFD in computerization? With the help of suitable example explain the
managerial applications of electronic spreadsheet.