National Institute of Business Management

Chennai - 020
SECOND SEMESTER EMBA/MBA
Subject : Management information System

Attend any 4 questions. Each question carries 25 marks

(Each answer should be of minimum 2 pages / of 300 words)

Q1.Explain the future thrusts and methodologies of Management

information systems.
With the development of personal computers, and workstations, the importance
of the mainframe and the mini computers drastically came down as the
computing and processing power centre shifted to the users to reach on their
desktop.
The personal computers and the workstations became more powerful day by
day and so capable that each user started having such desktop systems
personalizing the use of that data and information. This attitude of the users
created problems of data availability, redundancy, communication, sharing of
resources and information management as a resource for decision making.
Though the hardware and software became powerful and the desktop systems
became more efficient, the organizations suffered from its utility to the other
needs of the business management. So, the efficient islands of desktop systems
became a bottleneck for the information flow, usage and sharing.

It was, therefore, necessary to put these information islands on one platform

whereby they can talk to each other. They can share the resources and the
information, though processed locally, becoming a corporate resource and an
asset which is accessible, sharable and updateable and simultaneously meeting
the requirements of confidentiality, security and integrity.
The solution at the physical level is to connect them through a medium forming
a network of PCs and workstations. The networking primarily fulfilled the
resolution of communication and access issues. The initial implementation due
to the technology limitation of distance was the departmental networks
popularly known as the Local Area Networks (LAN).
With the computer technology advances in disk storage, access capabilities,
speed and operating systems, it is possible to distribute a resource and be made
available to the users in any corner. The output devices such as the printers, the
plotters, and the storage devices could be shared by all from any point of the
network reducing the investment and improving the utilization of these costly
resources. With the increase in the processing power and communication speed,
large Local Area Networks became efficient and attractive in terms of speed and
response.
More and more technologies are supporting basic networking technology,
making network approach to information management most stable, efficient and
effective. The coverage of network is now shifting from LAN to WAN to Global
to WEB and the network, in general is becoming an open processing platform,

independent of hardware and OS. The network standards are now established
and they are mandatory for successful implementations.
Network Features:
The network essentially serves some important features like,
1. It allows the users / departments divisions to share the hardware
resources like the laser printers, the plotters and any other storage media like the
disk drives.
2. It allows the information to be shared across the Company. The information
such as the product literature, the price lists, the organization information, the
vendor / customer masters, the nines and regulations, etc., can be stored and
maintained at one location to be shared by the others through a controlled
access mechanism.
3. It enables the electronic transfer of mail, document, or data at the addressed
locations with a confirmation
4. It provides an access to other computer systems in the network to the data file
for the local processing need.
5. With a wide area network, different computer systems can talk to each other
for the purpose of processing, sharing and communicating.
6. It enables seamless integration of the functions and divisions at the operation
level and also at the application level.
Features of the Local Area Network:

Apart from the cost saving features, it creates an environment of integrity

because in such cases the data, file and the information management are
handled as a centralized function, ensuring protection to the system as a whole.
The productivity of the work group increases due to quick access to the
information and its usage. The communication being fast, the networks are used
for E-mail for sending the corresponding data and information. Due to fluster
communication there is an easy access to the processed information. The work
cycles have been reduced increasing the manpower productivity. Due to the
network features and softwares like work flow automation, it is possible to
restrict structure the work group such that. The work group productivity also
increases.
In the event of growth, the network can be enhanced from all sides. It is
possible to change the server or add more servers. It is possible to increase the
terminals with a proper networking technology. Hence, meeting the growth
needs is feasible and economical as the existing network and the application
development can still run as extended or enhanced network.
It is also possible to improve the efficiency of the network by configuring its
basic resources at the server level keeping a long term view. It is possible to
change the roles of servers from dedicated.
The Network Operating System (NOS) is system software that facilitates and
controls the LAN working. As the personal computer or the MINI Main Frame
has an operating system, the LAN also has its own NOS to manage the network

functionally. The NOS works in conjunction with the local operating like MSDOS. It performs the following functions:
Directory hashing
Disk file catching
Record or file locking for security
System fault tolerance
Printer or a plotter spooling
Online helping
Menu utilities, drivers etc. for user assistance.
Assisting in resource sharing and access control.
Data communication:
Data communication is a process of transporting the data from one location to
the other. Airlines reservation system, automated banking and the point of sale
system used in departmental stores are the examples of the data communication
which is central to these systems. The input data structure it for quick
transportation and restructure it when received at the destination in an
understandable form. It uses the data communication software along with
numbers to perform the communication
There are five components in data communication system.
1. Computer - To create data for sending.
2. Communication device - MODEM for data convertibility to send or to
receive.

3. Communication channel or link - Telephone lines, microwave relay systems

to carry the communication.
4. Receiving computer - To receive the data and display it on the screen.
5. Communication software - To handle communication requirements to access,
process, send and receive and then display on the receiving computer in a
format.
ATM Technology:
The need for increasing network capacity in LAN is one of the catalysts
Asynchronous Transfer Mode (ATM) networking to the desktop. Most of the
business and scientific computing requires network capabilities to handle data
as well as video, or circuit on the same network. To facilitate the evolution of
the network from LAN to ATM. ATM network must support the existing
application on desktop.
However, connection oriented ATM networks are different in operations from
connection- less LAN with regard to broadcast, setup and addressing. To raise
existing LAN to ATM based emulated LAN (ELAN) one needs following setup.
LAN Emulation Server (LES)
LAN Emulation Configuration Server (ELCS).
LES is the address resolution server for ELAN. ELAN is associated with LES
on one to one basis. LECS maintains the database of configuration information
for each ELAN.

The LAN emulation protocol provides an easy means of migrating existing

applications and evolving them to ATM LAN, One of the potentials of ATM is
its ability to carry many kinds of traffic over the same network link. ATM also
provides each application with the appropriate speed, the control, while, making
the best use of network capacity. ATM LAN has many benefits e.g., increased
security, better possibilities for sharing bandwidth
Corporate management Information system:
Corporate management information system consists of well defined aspects viz.,
goals, role of computer, practice and strategic issues. The above aspects are very
important in the implementation of MIS in a corporate management. The
horizontal and vertical development of organization clearly depends on sheer
organized information system for management planning and control.
The chronological phases of MIS development during last few yean are manual
reporting system, centralized betals processing system, real time system data
base system, decentralized processing system, distributed processing system and
distributed data base system.
MIS methodologies:
Techniques associated with MIS show basically the listed sequences:a) Using computer in MIS
b) Planning of MIS
c) Development of MIS
d) Design of MIS

e) Implementation of MIS
f) Evaluation of MIS
The methodologies of MIS depend on the use of computer evaluation. The
information management ensures accuracy, completeness, consistency, logical
balance and homogeneity of data.
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Q3.How is MIS implemented in an organization? Explain

Implementation of a system is as much important as the creation of it.
Implementation can easily destroy the good work done in the earlier phases and
bring the system to a standstill. Implementation requires technical and
managerial skills as the implementers work as change agents. Implementation is
also a process that has a series of sequential steps which culminates in making
operational the new system.
Implementation as an activity has to be carefully managed. It requires client
interaction at every stage. The implementers need the full support and
cooperation of the client and the IS department functionaries to successfully
execute the implementation of information systems. In order to help them
perform this task of implementation smoothly, a series of predefined steps are
followed.

These implementation tasks are as follows:

1.

Implementation Plan

It is the series of action-oriented steps planned for making the implementation

smooth. It normally involves the following steps:
Creating a master schedule of the implementation activities
Setting timelines for critical and non-critical activities
Identifying major bottlenecks and their solutions
Communication of the plan.
This step is required to help the user community to understand the time frame
for installation of the new system. Communication plays a vital role in the
implementation and without proper communication especially, from the top
management on the installation and implementation of the new system the
change management will be difficult. Resistance to change related issues will
come to the fore making the difficult task of implementation more difficult.
Communication of the plan of implementation to the user community helps the
users to prepare for the change and makes them mentally prepared for it. The
communication is required to be formal so that rumours cannot be spread about
the system. The communication process may itself be in several phases. The top
level can communicate the general intent of the new system and then detailed
briefings to staff may be left to the divisional heads. The communication

process also indicates (indirectly), the role each employee is required to play in
the implementation process.
2.

Organizing the MIS Department

The MIS department will be the custodian of the new system. Hence, they have
to be gear up to support the new system. Organization of the department is
therefore necessary before the new system becomes operational. The roles of
each member of the MIS department have to be clearly laid out before the new
system becomes operational. Effort is made to ensure that the role of the MIS
staff is understood by each member of the organization. Training is provided to
those who need training on the new system so that they in turn can help others.
This process of organizing the MIS department starts much before the actual
implementation process begins as it entails some hiring and training which
requires some lead time. The organization is done in such a timeframe that staff
is available when the actual implementation starts. This enables the MIS staff to
provide support to the implementation team, when the implementation process
starts. This will also help the MIS staff to understand the nitty-gritty of the new
system as they will be able to get a hands-on experience in the implementation
of the new system.
3.

Selection and Procurement of Hardware

This step of the implementation process is an important step as it involves huge

investments. Proper care is taken to ensure that the organization gets the best
deal from such selection and procurement of the hardware. The process of

selection and procurement of hardware also varies greatly from firm to firm
depending on the size of the firm and the sector in which it operates the type of
management. However, the following procedure is followed:
Preparation of vendor list-a list of reliable vendors is prepared. This list of
vendors may be prepared after analyzing the vendor management experience of
the organization with different vendors or may be prepared based on some
accepted list of vendors in that business space prepared by some organization of
repute or some industry body/regulatory body. The vendors that are selected to
be part of the list are chosen carefully after a thorough checking of their
credentials and goodwill in the market. This is essential as the vendor
relationship is based on trust and compromise and not only on the basis of strict
commercial terms.
Preparation of RFP-the implementation team must prepare the request for
proposal document based on their understanding of the hardware requirement of
the new system. The RFP must have complete technical details about the
required hardware systems including specifications, format, performance
expectation, and warranty and service quality requirements. This document is
prepared by the implementers in consultation with the development team,
management of the organization and the MIS team of the organization so that
the need for each specification is well established and there is no scope for any
difference of opinion. The consultative process results in the RFP which is a
technical document. The RFP also has commercial details which the

implementation team prepares in consultation with the management of the

organization. The RFP is a quasi-legal document in some countries and proper
legal opinion is normally sought before sending it to the enlisted vendors.
Request for bids/proposal to select vendors-after the RFP is prepared it is sent
by some mode of communication to the enlisted set of vendors. The
communication medium can be an open advertisement in print or electronic
media or may be in the form of a letter to the vendors with a deadline for
submission of the proposal.
Evaluation of RFP-this is a difficult process. After bids are received before the
deadline, they are checked (preliminary check) for basic errors. Those found to
be prima facie proper are then evaluated. Several methods of evaluation exist.
The evaluation could be on the basis of cost alone or quality alone or may be a
mix of both cost and quality. Typically, a score based system of evaluation is
used to rank the vendors' proposals. Scores are assigned to each attribute of a
vendor's proposal like cost, goodwill, track record and service quality guarantee.
Based on the weight age given to each attribute a composite score is prepared,
which is used to evaluate the proposals. Whatever tJ1emethodology for
evaluating the proposal, one must take care to apply the same evaluation criteria
to all proposals. Different yardsticks should not be applied to different
proposals.
Selection of vendor-based on the evaluation a single vendor or a select set of
vendors are chosen for delivery of hardware. Contract negotiations and price

negotiations are held with this select group of vendors and following the
successful completion of the negotiations the final contract will be signed.
4.

Procurement of Software

The new system being implemented will have been created based on
assumptions of operating environment of the organization. Procurement of
system software is done on similar lines as the procurement of hardware. The
only difference in the case of procurement of software is that the choice of what
software to purchase is already made at the design stage of the system
development and hence, the RFP preparation process is straightforward. The
implementation team need not prepare the specification for the system software.
They only need to procure the system software that the new system is designed
to run on. The rest of the process is almost similar to the hardware procurement
process.
5.

Creating the Database

The new system to be implemented will have data stores. In modern systems,
data stores are databases. These databases are relational database management
systems, which is a separate application software package. The database has to
be created and structures inside the database have to be created in order to
enable it to store data. The implementation team creates the database, its
structures and rules so that the application system being implemented can be
plugged into the database and start working.
6.

Training of Users

Implementation is a larger issue than installation. The new system may get
installed but without proper training of users, it may not be of good use.
Implementation is a larger concept and focuses on the installation and handholding part of the transition process. A training needs assessment is done to
understand the training needs of the users. A training programme is planned and
the required training given to users. This is an important part of the
implementation process and helps in reducing the resistance to change related
behaviour among the user community. The training also helps users to
appreciate the new features of the new system and helps build trust and
appreciation for the new system.
7.

Creating Physical Infrastructure

The new system being implemented may require a physical infrastructure. The
implementation team must ensure that the system performance must not suffer
due to infrastructure bottlenecks. The implementers will have to use their
persuasive skills and convince the management of the organization to create the
required physical infrastructure so that it does not affect the performance of the
new system.
8.

Transition to the New System

This is the last step in the implementation process. The transition if done
wrongly leads to a lot of pain. Hence, it is necessary to move slowly on the
transition front. Normally, after the new system is installed and ready, the new
system and the old system are both used for a period to ensure that the company

performance does not suffer due to transition problems. Slowly when the users
gain more capability to handle the new system the old system is phased out.
Implementation of an Information Management System
Implementation of an information management system can be a traumatic
experience. At a minimum, changes in procedures will impact the ways in
which plans are made, programs are developed, and performance is evaluated
within the organization. New patterns of communications will emerge, and
new--presumably better--information will be available to assist in carrying out
decision-making and administrative responsibilities. Efforts to improve the IMS
may also uncover the need for organizational changes which may be even more
unsettling than the procedural changes necessary to implement the system. The
introduction of an IMS may represent substantial change in the established way
of doing business, which can be viewed with considerable alarm and generate
significant resistance by those within the organization.
Implementation of MIS can be achieved by using any of the methods such as
direct, parallel, modular or phase in.
a) Direct approach:
Direct installation of the new system with immediate discontinuance of the old
existing system is referred as cold turnkey approach. This approach becomes
useful when these factors are considered.
1. The new system does no replace the existing system.
2. Old system is regarded absolutely of no value.

3. New system is compact and simple.

4. The design of the new system is inexpensive with more advantages and less
risk involved.
b) Parallel approach
The selected new system is installed and operated with current system. This
method is expensive because of duplicating facilities and personnel to maintain
both the systems. In this approach a target date must be fixed when the
operations of old system cease and new one will operate on its
c) Modular approach
This is generally recognized as Pilot approach means the implementation of a
system in the Organization on a piece - meal basis.
This has few advantages / merits
1. The risk of systems failure is localized.
2. The major problem can be easily identified and connected before further
implementation.
3. Operating personnel can be trained before system is installed in a location.
d) Phase-in-implementation
This approach is similar to modular method but it differs because of
segmentation of system however, not the Organization. It has advantages that
the rate of change in a given organization can be totally minimized and the data
processing resource can be acquired gradually over a period of this system
exhibits certain disadvantages such as limited applicability, ignore costs

incurred to develop interface with old system and a feeling in the organization
that system is never completed.
Implementation procedures
(a) Planning the implementation
1. Identification of tasks for implementation
2. Relationship establishment among the activity
3. Establishing of MIS
(b) Acquisition of facilities
(c) Procedure development
(d)Generating files and forms
(e)Testing of the system
(f)Evaluation and maintenance of system
Software maintenance:
The proper maintenance is the enigma of the system development and it holds
software industry captive, tying up programming resources. There are some
problems in maintenance such as regarding it as non-rewarding, non-availability
of technicians and tools, non cognizance of users about maintenance, problem
and cost, lack of standard procedures and guidelines.
Implementation of Information Resources Management (IRM)
IRM activity comprises of all the information resources of an organization
which include business data processing, data management information centers,

end user computing and networking. The major function of IRM is to integrate
and co-ordinate all the above activities in the organization.
The implementation of the system is a management process. It brings about
organizational change; it affects people and changes their work style. The
process evokes a behavior response which could be either favorable or
unfavorable depending upon the strategy of the system implementation of the
process of implementation, the system designer acts as a change agent or a
catalyst. For a successful implementation be has to handle the human factors
carefully.
There are certain guidelines for the systems designer for successful
implementation of the system.
1. Not question should limit the information need of the user.
2. Not to forget that his role to offer a service.
3. Remember that the system design is for the use of the user and it is not the
designers prerogative to dictate the design features. In short, the designer
should respect the demands of the user.
4. Not mix up technical needs with the information needs. He should try to
develop suitable design with appropriate technology to meet the information
needs. The designer should not recommend modifications of the needs, unless
technically infeasible.
5. Impress upon the user the global nature of the system design which is
required to meet the current and prospective information needs.

6. Not to challenge the application of the information in decision making. It is

the sole right of the user to use the information the way he thinks proper.
7. Impress upon the user that the quality of information depends on the quality
of input which he provides.
8. Impress upon the user that he is one of the users in the organization and that
the information is a corporate resource and he is expected to contribute to the
development of the MIS.
9. Ensure that the user makes commitment to all the requirements of the system
design specifications. Ensure that he appreciates that his commitments
contribute largely to the quality of the information and successful
implementation of the system
10. Ensure that the overall system effort has the managements acceptance.
11. Enlist the users participation from time to time, so that he is emotionally
involved in the process of development
12. Realize that through serving the user, he is his best guide on the complex
path of development
13. Not expect perfect understanding and knowledge from the user as he may be
the user of a non-computerized system. Hence, the designer should be prepared
to change the system specifications or even the design during the course of
development

14. Impress upon the user that the change, which is easily possible in manual
system, is not that easy in the computer system as it calls for changes in the
programs.
15. Impress upon the user that perfect information is non-existent, his role
therefore still has an importance in the organization.
16. Take care that the problems in the organization are resolved first before the
system is taken for development.
17. Conduct periodical user meetings on systems where you get the opportunity
to know the ongoing difficulties

of the users.

18. Train the user in computer appreciation and systems analysis as his
perception of the computerized information system will fall Organization for
implementation of the MIS
Conclusion
Alignment of business and MIS goals has become a key consideration for most
businesses. This is especially true with technology infrastructure increasingly
being viewed as a strategic asset by most companies. Consequently, information
systems department leaders are frequently called upon to provide a strategic
vision for the enterprise, which complements the companys stated business
objectives. Understanding and applying the strategic planning process has
become a vital skill for todays technology leader.
Management information is an important input for efficient performance of
various managerial functions at different organization levels. The information

system facilitates decision making. Management functions include planning,

controlling and decision making.
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Q4.Write

descriptive

account

on

Relational

Database

Management System
A database is an integrated collection of well defined data and information,
centrally controlled in all its aspects, created and stored in a typical structure for
an organization, the database could be one or more, depending upon the needs
and the operations of the organization. The data structure and its storage should
be such that it facilitates share ability, availability, resolvability and integrity of
the data.
Why Database
Conventionally, in an information system, the information is obtained by
developing & systems and integrating them. This call for breaking the system
into various sub systems and developing the information systems independently
in this approach each system will have its master and transaction files. They
have to be processed separately at different times, depending upon the needs
and schedules. The file layouts and the access methods could be different in
different systems. Therefore, the files will be updated at different times. This
approach does affect the quality of the information across all the systems. The

main disadvantages are data redundancy and inconsistency, difficulty in access

to the data, concurrent access anomalies and integrity of the data and security
problems. To eliminate these problems, database approach is the solution.
Database is designed independent of its use for the application. The user of
database should view the data in the database as on which he can develop his
system.
The advantages in the database approach are as follows
1. All the Managers are using the same database; hence, any report using the
information will not be inconsistent
2. All the Managers can view the database as per their needs.
3. The application system can be developed independent of the database.
4. The data validation and updating will be once and same for all.
5. The data is shared by all the users.
6. The data security and privacy can be managed and ensured because the data
entry in the database occurs once only and is protected by the security measures.
7. Since the database is storage of the structured information, the queries can be
answered fast by using the logic of the data structures.
Database models
There are three types of database models which are common in the industry.
They are the Hierarchical Data Model, the Network Data Model and the
Relational Data Model. These models have their own particular nature, and
therefore, they are applicable in the industry where a similar situation exists.

There is a fourth model known as the Object Data Based Model (ODBM) in
which data is structured as objects at a much higher level as compared to the
other models providing flexibility in designing the applications.
Database Design
To develop a database that satisfies the information needs of today as well as
tomorrow, it is necessary to understand the database conceptually. The first task
of the designer is to develop the Conceptual Model. The conceptual model is
independent of the steps in the development of the conceptual model are:
1. Data analysis
2. Relational identity
3. Graphical representation
4. Design process
Data analysis
The database administrator should initiate a plan to collect the data needs of
each person to the organization. It is necessary to investigate further as to how
the data is processed by these persons in executing their functional
responsibilities.
Relational Identity
The conceptual model is used to develop a logical model which can be
implemented with the relational hierarchical or network model of the Database
Management System. The major concept used from the relational theory is

Normalization. The normalization process groups the entities and attributes in

the form of two-way tables.
Design process
It is necessary to examine systematically the purses of the input (later which
will find the in the database of the desired outputs. The design process considers
information requirements of many different types of users (data views) and the
designs the inputs for the database. The conceptual relationship will decide the
key data entities arid its attributes. While designing the database, these elements
play an important role.
Physical Database Model
The physical model of the database is a stored framework of data on a physical
device. Since a large percentage of the databases are used in an on-line
environment one has to be concerned the visible performance. The performance
of the database is a multivariate function the physical model as a major variable.
The designing of the database always tries to optimize the physical model for
the space and the time considerations. The three areas, where the database
designer needs expertise for an optimum performance of the database are:
1. Knowledge of the database management system.
2. Understanding of the characteristics of the direct access devices and the
access needs.
3. Knowledge of the applications.
Relational Database Management System (RDBMS)

The decision making is required more in a real time environment where the
decision making process, right from the problem definition to solution, needs to
be handled quickly. The business environment is distributed and decentralized
requiring a real time resource (hardware, software, data, and information)
sharing with a complex data flow. All this demands the RDBMS which can
serve both the decision support and the transaction processing requirements.
The latest RDBMS systems have two sub-systems or pails. One deals with data
management and transaction processing which is independent of its application
in the information process. The second part provides a set of tools for
developing and utilizing on-line applications for the decision support. This is
handled by the Client-Server architecture which separates the data management
functions from its application.
The latest trend in the Information Technology is to make the end user
computing simple, easy to understand and easy to use. The concept is extended
to the system analyst and programmers. Where the RDBMS provides the tools,
saving development and processing time. It allows the business rules of the
organization, standard transactions and queries to be programmed once and
makes them available to all the users and developers as a stored procedure in the
Data Dictionary. These stored procedures can be nested to develop an
application. These procedures are, both reusable and sharable and are developed
using the standard SQL. The RDBMS is also capable through the interface to

handle the data sources from the other databases and application tools
developed on different Operating Systems.
The user does not have to change the development made on other platforms,
i.e., the RDBMS can interact with the other RDBMS. or call the data from a
Personal Computer based Lotus application or can use the programme written in
the other language such as C, FORTRAN, COBOL etc. With these advantages
of the modem RDBMS over the traditional DBMS, the information processing
through-put and the resultant performance are considerably enhanced.
Modem RDBMS allows high level security by providing various tools to the
system administrators, the database owners and the users to grant and revoke
permissions to the specified users or a group of users on the specified tables,
views, columns, stored procedures and commands. In the traditional DBMS
system, the data was required to store in different databases in line with the
security levels, while in the modem RDBMS system a multiple security is taken
care of by one integrated database management system.
The latest RDBMS allows an on-line maintenance, rapid recovery and software
based fault tolerance. These features ensure the availability of the database
round the clock as the database maintenance is possible on line when the system
is in use.
The modem RDBMS, unlike the traditional DBMS, handles the distributed
heterogeneous data sources, software environments and hardware platforms.

RDBMS allows communication at the database level and performs in a unified

manner as a single entity through the updates, and processing would take place
at the respective distributed locations. This is achieved through a software
interface across the organization.
MIS and RDBMS
The MIS is supported by database in its endeavor to support the management in
decision making. The database models be it the NDBM, the HDBM or the
RDBM, play the same role in the MIS. With the latest computer hardware and
software capabilities the RDBMS have become popular the concept of the end
user computing can be Implemented easily with the database approach to the
information system. With the database approach, considerable data processing
flirts, which were spent in the approach of the conventional system, are saved.
The data is made independent of its application.
Now, the users of the data have a clear understanding of the entities and its
attributes owing to the concept of the data dictionary. The major problems,
which the MIS designers had to face earlier, were on account of the different
definitions of data by the different users, and its applications. These problems
have automatically disappeared with the database approach. Another problem
which the designers faced was that of data concurrency and redundancy. Once
an entity is defined and located in the database, it is same and common to all.
All the users using the database will get the same results on account of the
concunency and hence avoid data redundancy.

Now, the users of the data have a clear understanding of the entities and its
ambits owing to the concept of the data dictionary. The major problems, which
the MIS designers had to face earlier, were on account of the different
definitions of data by the different users, and its applications. These problems
have automatically disappeared with the database approach. Another problem
which the designers faced was that of data concurrency and redundancy. Once
an entity is defined and located in the database, it is same and common to all.
All the users using the database will get the same results on account of the
concurrency and hence avoid data redundancy.
With the database approach, the managers information needs on queries can be
easily met. With the RDBMS and the development of the Structured Query
Language (SQL), it is possible to interact with the database and satisfy the
queries by using the SQL. The development of the SQL is a blessing to the users
of the database.
The attributes of a good information, viz., accuracy, scope, timeliness, form and
so on can be easily achieved with the database approach to the MI System.
The MIS designs have become more dependable due to the database and the
SQL. The rigidity of the design is replaced by the flexibility of the design. It is
now possible to review the applications more frequently from the point of view
of utility and have them modified, if necessary.

The database has strengthened the foundations of the MIS due to the
following:
a. The database can be evolved to the new needs of the MIS.
b. The multiple needs can be met with easily.
c. The data design and the output design are flexible.
d. Open system design of the MIS is possible.
e. The query handling becomes easier due to the Standard SQL.
f. User friendly end user computing is possible.
g. The data is freed from its ownership and its use has become universal.
h. The information Technology provides tools to handle distributed multiple
databases making the MIS richer.
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6.What is the role of MIS in organization planning and decision

making?
The role of the MIS in an organization can be compared to the role of heart in
the body. The information is the blood and MIS is the heart. In the body the
heart plays the role of supplying pure blood to all the elements of the body
including the brain. The heart work faster and supplies more blood when
needed. It regulates and controls the incoming impure blood, processed it and

sends it to the destination in the quantity needed. It fulfills the needs of blood
supply to human body in normal course and also in crisis.
The MIS plays exactly the same role in the organization. The system ensures
that an appropriate data is collected from the various sources, processed and
send 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 top management.
Here are some of the important roles of the MIS:
i. The MIS satisfies the diverse needs through variety of systems such as query
system, analysis system, modeling system and decision support system.
ii. The MIS helps in strategic planning, management control, operational control
and transaction processing. The MIS helps in the clerical personal in the
transaction processing and answers the queries on the data pertaining to the
transaction, the status of a particular record and reference on a variety of
documents.
iii. The MIS helps the junior management personnel by providing the
operational data for planning, scheduling and control , and helps them further in
decision-making at the operation level to correct an out of control situation.
iv. The MIS helps the middle management in short term planning, target setting
and controlling the business functions. It is supported by the use of the
management tools of planning and control.

v. The MIS helps the top level management in goal setting, strategic planning
and evolving the business plans and their implementation.
vi. 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 operation of an
organization.
Impact Of The Management Information System
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 MIS
supports the management of marketing, finance, production and personnel
becomes 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 activity and the targets. The manager is kept
alert by providing certain information indicating and probable trends in the
various aspects of business. This helps in forecasting and long-term perspective
planning. The managers attention is bought to a situation which is expected in
nature, inducing him to take an action or a decision in the matter. Disciplined
information reporting system creates structure database and a knowledge base
for all the people in the organization. The information is available in such a
form that it can be used straight away by blending and analysis, saving the
managers valuable time.

The MIS creates another impact in the organization which relates to the
understanding of the business itself. The MIS begins with the definition of data,
entity and its attributes. It uses a dictionary of data, entity and attributes,
respectively, designed for information generation in the organization. Since all
the information systems use the dictionary, there is common understanding of
terms and terminology in the organization bringing clarity in the communication
and a similar understanding of an event in the organization.
The MIS calls for a systematization of the business operations for an effective
system design. This leads to streaming of the operations which complicates the
system design. It improves the administration of the business by bringing a
discipline in its operations as everybody is required to follow and use systems
and procedures. This process brings a high degree of professionalism in the
business operations.
The goals and objectives of the MIS are the products of business goals and
objectives. It helps indirectly to pull the entire organization in one direction
towards the corporate goals and objectives by providing the relevant
information to the organization.
A well designed system with a focus on the manager makes an impact on the
managerial efficiency. The fund of information motivates an enlightened
manager to use a variety of tools of the management. It helps him to resort to
such exercises as experimentation and modeling. The use of computers enables
him to use the tools and techniques which are impossible to use manually. The

ready-made packages make this task simple. The impact is on the managerial
ability to perform. It improves decision-making ability considerably high.
Since, the MIS work on the basic system such as transaction processing and
database, the drudgery of the clerical work is transferred to the computerized
system, relieving the human mind for better work. It will be observed that lot of
manpower is engaged in this activity in the organization. Seventy (70) percent
of the time is spent in recording, searching, processing and communicating.
This MIS has a direct impact on this overhead. It creates information based
working culture in the organization.
Importance Of MIS
It goes without saying that all managerial functions are performed through
decision-making; for taking rational decision, timely and reliable information is
essential and is procured through a logical and well structured method of
information collecting, processing and disseminating to decision makers. Such a
method in the field of management is widely known as MIS. In todays world of
ever increasing complexities of business as well as business organization, in
order to service and grow , must have a properly planned, analyzed, designed
and maintained MIS so that it provides timely, reliable and useful information to
enable the management to take speedy and rational decisions.
MIS has assumed all the more important role in todays environment because a
manager has to take decisions under two main challenges:

First, because of the liberalization and globalization, in which organizations are

required to compete not locally but globally, a manager has to take quick
decisions, otherwise his business will be taken away by his competitors. This
has further enhanced the necessity for such a system.
Second, in this information age wherein information is doubling up every two
or three years, a manager has to process a large voluminous data; failing which
he may end up taking a strong decision that may prove to be very costly to the
company.
In such a situation managers must be equipped with some tools or a system,
which can assist them in their challenging role of decision-making. It is because
of the above cited reasons, that today MIS is considered to be of permanent
importance, sometimes regarded as the name centre of an organization. Such
system assist decision makers in organizations by providing information at
various stages of decision making and thus greatly help the organizations to
achieve their predetermined goals and objectives. On the other hand, the MIS
which is not adequately planned for analyzed, designed, implemented or is
poorly maintained may provide developed inaccurate, irrelevant or obsolete
information which may prove fatal for the organization. In other words,
organizations today just cannot survive and grow without properly planned,
designed, implemented and maintained MIS. It has been well understood that
MIS enables even small organizations to more than offset the economies of

scale enjoyed by their bigger competitors and thus helps in providing a

competitive edge over other organizations.

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