MANAGEMENT

INFORMATION SYSTEM
MIS stand For Management Information System. For Simply Understanding
Management Information System (MIS) we can divide in to three Word and
Understand Part by part

Management: - “Management is function to do the work at the Right time,

by the right Person, For the Right Job.”
Information: - “Information is the Collection of Organized data which
plays a Vital Role for decision making.”
System:-“System Consist for a set of elements which Provides a
Framework to convert Unorganized (Data) into Organized Information.”

Management information system refers to such system which provides

accurate information to the entire level of management for decision making
process. For right job at the right time, by the right person.
Management information system is a set of systems
which helps management at different levels to take
better decisions by providing the necessary information
to managers.
Management Information System can be defined as a
formal method of collecting timely information in a
presentable form. in order to facilitate effective
decision making and implementation, in order to carry
out organizational operations for the purpose of
achieving the organizational goal.
A management information system is a system design
to provide selected decision –orientation information
needed by management plan, control and evaluate the
activities of the corporation. It is designed within the
frame work that emphasizes profit, planning,
performance planning and control at all levels.
Role of Management
Information System
Helps in Decision making: - Management Information
System (MIS) plays a significant Role in Decision
making Process of any Organization. Because in Any
organization decision is made on the basis of relevant
Information and relevant information can only be
Retrieving from the MSI.

Helps in Coordination among the Department: -

Management information System is also help in
establishing a sound Relationship among the every
persons of department to department through proper
exchanging of Information’s.
Helps in Finding out Problems: - As we know that
MIS provides relevant information about the every
aspect of activities. Hence, If any mistake is made by
the management then Management Information
Systems (MIS) Information helps in Finding out the
Solution of that Problem.

Helps in Comparison of Business Performance: - MIS

store all Past Data and information in its Database.
That why management information system is very
useful to compare Business organization
Performance. With the help of Management
information system (MIS) Organization can analyze his
Performance means whatever they do last year or
Previous Years and whatever business performance in
this year and also measures organization
Development and Growth.
 EMERGENCE OR EVOLUTION
OF
MANAGEMENT NFORMATION SYSTEM
 FUNCTIONS OF MIS
MIS is set up by an organization with the prime objective to obtain
management information to be used by its managers in decision-
making. Thus, MIS must perform the following functions in order to
meet its objectives.

1) Data Capturing:-MIS captures data from various internal and

external sources of an organization. Data capturing may be manual or
through computer terminals. End users, typically record data about
transactions on some physical medium such as paper form or enter it
directly into a computer system.

2) Processing of data:-The captured data is processed to convert it

into the required management information. Processing of data is done
by such activities as calculating, comparing, sorting, classifying and
summarizing.
3) Storage of information:-MIS stores processed or unprocessed data
for future use. If any information is not immediately required, it is saved
as an organizational record. In this activity, data and information are
retained in an organized manner for later use. Stored data is commonly
organized into fields, records, files and databases.

4) Retrieval of information:-MIS retrieves information from its stores

as and when required by various users. As per the requirements of the
management users, the retrieved information is either disseminated as
such or it is processed again to meet the exact demands.
OBJECTIVES OF MIS
To improve decision-making: MIS helps management by providing
background information on a variety of issues and helps to improve the
decision-making quality of management. The fast and accurate
information supplied by MIS is leveraged by the managers to take quicker
and better decisions thereby improving the decision-making quality and
adding to the bottom line of the company.

To improve efficiency: MIS helps managers to conduct their tasks with

greater ease and with better efficiency. This reflects in better
productivity for the company.

To provide connectivity: MIS provides managers with better connectivity

with the rest of the organization.
 CHARACTERISTICS OF MIS
Management oriented
One important feature of MIS is that MIS is designed top-
down. This means that the system is designed around the
need felt by the management at different levels for
information. The focus of the system is to satisfy the
information needs of management.
Management directed
Since MIS is 'for the' management it is imperative that it
also should have a very strong 'by the' management
initiative. Management is involved in the designing
process of MIS and also in its continuous review and up
gradation to develop a good qualitative system. The
system is structured as per directions factored by
management. This helps in minimizing the gap between
expectations of management form the system and the
Integrated
MIS is an integrated system. It is integrated with all
operational and functional activities of management. This
is an important characteristic and- requirement for a
system to qualify as MIS. The reason for having an
integrated system is that information in the managerial
context for decision-making may be required from
different areas from within the organization. If MIS
remains a collection of isolated systems and each
satisfying a small objective, then the integrated
information need of managers will not be fulfiller. In
order to provide a complete picture of the scenario,
complete information is needed which only an integrated
system can provide.
Common data flows
Through MIS the data being stored into the system,
retrieved from the system, disseminated within the
system or processed by the system can be handled in an
integrated manner. The integrated approach towards data
management will result in avoiding duplication of data,
data redundancy and will help to simplify operations.
Strategic planning
MIS cannot be designed overnight. It requires very high
degree of planning which goes into creating an effective
organization. The reason for this kind of planning is to
ensure that the MIS being built not only satisfies the
information need of the managers today but can also
serve the organization for the next five to ten years with
modifications. Sometimes when the planning part is done
away with, systems tend to perform well in the present
but they tend to become obsolete with time. Planning
helps to avoid this problem.
SUB-SYSTEM CONCEPT - In tackling a project as broad and complex in
scope as a management information system, one just avoid losing sight
both the forest and the trees. Even though the system is viewed as a single
entity, it must be broken down into digestible sub-system that can be
implemented one at a time. The breakdown of management information
system into meaningful subsystems set the stage for prioritized
implementation. The subsystem analysis is essential for applying
boundaries to the problem, thus enabling the designer to focus on
manageable entities that can be assigned and computerized by selected
system and programming team.

FLEXIBILITY AND EASE OF USE - Despite a careful analysis of the future

management information needs it is impossible to predict what is desire
their to five year hence. This is true in most industries and especially in
industries with rapid change patterns, it is naïve to think that if anyone
possesses the omniscience to predict the future with this aa a premise, the
next best thing an management information system developer can do is to
built in the flexibility to incorporate as many manufacture nuances as
possible.
DATA BASE - The data is the mortar that holds the functional system
together each system requires access to a master file or data covering
inventory, personnel, vendors, customers, general ledger, work in
progress and so on. If the data is stored efficiently and with common
usages in mind one master file can provide the data needed by any of
the functional system. It seems logical to gather data once, properly
validate it and place it on a central storage medium that can be
accessed by any system. However it is not unusual to find a company
with multiple data files, one serving one functional system and
another serving another system.

DISTRIBUTED DATA PROCESSING - The majority of the companies

implementing management information system have a geographic
network of sale office, distribution channel, manufacturing
plants,divison,subdivision and so on some of these entities are
operated in a completely independent fashion and therefore may not
be part of the integrated management information system more often
than not, the remote site to have the connection with each other and
with a host of operation in order to create a effective management
information system with geographical boundaries some from of
distributed data processing is necessary. Distributed data processing
INFORMATION AS A RESOURCE - Providing the entire
organization must be a concept that information is a
valuable resource particularly in the management control
and strategic planning areas must be properly managed.
This is a subtle but important change in thinking. It was a
common in the past to view the data processing.
 IMPACT OF THE MANAGEMENT
INFORMATION SYSTEM
MIS plays a very important role in the organization; it creates an
impact on the organization’s 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
various aspects of business. This helps in forecasting and long-
term perspective planning. The information is available in such
a form that it can be used straight away for analysis, saving the
manager’s 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 data dictionary, designed for
information generation in the organization.

The goals and objectives of the MIS are the products of business.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. Since, the MIS work on the basic system such as
transaction processing and database, the difficult 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, which shows MIS has a
direct impact on this overhead. It creates information –based working
culture in the organization.
SYSTEM APPROACH TO MIS
 ADVANTAGES OF MIS
1. Facilitates planning: MIS improves the quality of plants by providing relevant
information for sound decision - making. Due to increase in the size and complexity of
organizations, managers have lost personal contact with the scene of operations.

2. Minimizes information overload: MIS change the larger amount of data in to

summarize form and there by avoids the confusion which may arise when managers are
flooded with detailed facts.

3. MIS Encourages Decentralization: Decentralization of authority is possibly when

there is a system for monitoring operations at lower levels. MIS is successfully used for
measuring performance and making necessary change in the organizational plans and
procedures.

4. MIS brings Co-ordination: MIS facilities integration of specialized activities by

keeping each department aware of the problem and requirements of other departments.
It connects all decision centers in the organization.

5. MIS makes control easier: MIS serves as a link between managerial planning and
control. It improves the ability of management to evaluate and improve performance.
The used computers has increased the data processing and storage capabilities and
reduced the cost.

6. MIS assembles, process, stores, Retrieves, evaluates and disseminates the information.
DATA AND INFORMATION

Data :-
Data is raw facts. Data is like raw material. Data does not
interrelate and also it does not help in decision making. Data is
defined as groups of non-random symbols in the form of text,
images, voice representing quantities, action and objects.
Information :-
Information is the product of data processing. Information is
interrelated data. Information is equivalent to finished goods
produced after processing the raw material. The information has
a value in decision making. Information brings clarity and creates
an intelligent human response in the mind.

According to Davis and Olson : “Information is a data that has

been processed into a form that is meaningful to recipient and is
of real or perceived value in the current or the prospective
action or decision of recipient.”
CHARACTERISTICS OF INFORMATION

i) Timeliness : Timeliness means that information must reach the

recipients within the prescribed timeframes. For effective decision-
making, information must reach the decision-maker at the right time,
i.e. recipients must get information when they need it. Delays destroys
the value of information. The characteristic of timeliness, to be
effective, should also include up-to-date, i.e. current information.

ii) Accuracy : Information should be accurate. It means that

information should be free from mistakes, errors &, clear. Accuracy
also means that the information is free from bias. Wrong information
given to management would result in wrong decisions. As managers
decisions are based on the information supplied in MIS reports, all
managers need accurate information.

iii) Relevance : Information is said to be relevant if it answers

especially for the recipient what, why, where, when, who and why? In
other words, the MIS should serve reports to managers which is useful
and the information helps them to make decisions.
iv) Adequacy : Adequacy means information must be sufficient in
quantity, i.e. MIS must provide reports containing information which is
required in the deciding processes of decision-making. The report
should not give inadequate or for that matter, more than adequate
information, which may create a difficult situation for the decision-
maker. Whereas inadequacy of information leads to crises, information
overload results in chaos.

v) Completeness : The information which is given to a manager must

be complete and should meet all his needs. Incomplete information
may result in wrong decisions and thus may prove costly to the
organization.

vi) Explicitness : A report is said to be of good quality if it does not

require further analysis by the recipients for decision making.

vii) Impartiality : Impartial information contains no bias and has been

collected without any distorted view of the situation.
 CLASSIFICATION OF INFORMATION
The Information can be Classified in a number of ways provide a better understanding.

•Action Information: The information which induces action is called an action

information. For Example:- when the attendance of the student for a particular subject
suddenly falls down 40% calls for immediate action.

•Non-Action Information: Non-Action Information which is communicates only the status

of a situation is a no action information. for Example:- While watching the live cricket match
you understand that India's Current Run rate is 4 per over whereas its required run rate is 7
Per over.you have this information but this is non-action information.

•Recurring Information: The Information that is generated at regular information. For

Example:-The monthly Sales reports, Account statements.

•Non-Recurring Information: Non Repetitive in nature. For Example: The financial

analysis or the report on the market research.

•Internal Information: The information is generated through the internal sources of the
organisation.

•External Information: The Information is Generated through the External sources of the
organisation.
One the basic of implementation/execution we can
divide information into planning
information and control information.

1. Planning Information:

Planning information cover whole Organization.

Planning information has a long time span.
Planning information looks for and analyses trends/patterns.
Planning information used for working futuristic trends/forecast.

2. Control Information:

Control information is concerned with small, specific part of

organisation.
Control information has a shorter time span
Control information looks for specific details for functional activity.
Control information used for assessing actual
performance via budget.
LEVELS OF INFORMATION

Information is very useful for every Business

organisation. information is most important for
Decision making. In the process of decision making it
is generally divided into three types:-

Tactical Level
Operational Level
Strategic Level
1. Strategic Level:
For Strategic decision making, decision maker needs strategic
information, Which is wholistic, Unstructured and draws heavily form
the external environment. it would also require more futuristic inputs
like the emerging technologies, Competition, consumer preferences,
Socio-eco-political changes etc. As these inputs would be used for long
term planning.

2. Tactical Level:
Tactical information would be used for medium/short-term planning by
the middle management, Budgets, forecasts, analysis, cash/funds flow
projections are part of the tactical information. Such an information is
mostly form internal environments and partly form external
environments like Customer Perceptions, Competitors strategy, Pricing
etc. it has medium term impact.

3. Operational Level:
Operational level is mainly for/form operating people ranging peoples
form a 'shift' to a day or a week or a month. it is basically about what is
currently happening around within the organisation and mainly drown
form internal sources it is also covers a specific product, specific
activity and a smaller Group/number of happen.
MANAGEMENT INFORMATION SYSTEM
AND INFORMATION CONCEPT
Management information system should provide the information which
has a surprise value and which reduces the uncertainty in decision
making. it should simultaneously build the knowledge base. While
designing MIS due regard should be given to the communication
theory of transmitting the information form the sources of the
destination. MIS should use the redundancy of data and information
as a measure to control the error in communication.

Information is a quality product for organization. The quality can be

ensured if the inputs of the management information system MIS are
controlled on the factors of impartiality, validity, reliability, consistency
and age. MIS should give regard to the information used for planning,
performance, control and knowledge database.

Recognizing that the information may be misused if it falls into wrong

hands, The MIS design should have the features of filtering, blocking,
suppression's and delay delivery.
PROCESS OF INFORMATION IN MIS
As Start, Data has to be processed before information could be available. Hence, Information passed form
various operations have to be carried out in Converting data into meaningful Information. we are going to
understand each and every process of Information. which is given below:-
1. Capturing:
In Information Processing this is the first step and task of retrieving the relevant information. in this process
data's are collect from the events and transaction for the various environment. this data has to be recorded or
we can say stored in database.
2. Verifying:
Verifying, after Capturing data the second step is verifying. Under information process verifying step play a
vital role, in the Process, Analyzer checked the data is valid or not for correctness. if the data is incorrect,
after processing data outcome (information) is also incorrect and we know that incorrect information have no
value and this information in useless for decision maker. that's way verifying is most important step in
Information Process.
3. Classifying:
Classifying, Yes after capturing and verifying the data classifying is also important. Information must be
classified on the basis of nature, class, size, of the data. this method of keeping information is make easy to
retrieve information in a reasonable time in future work or on decision making time. its means data has must
to be placed in specific categories. that's why its is most important process of information.
4. Arranging/sorting:
Arranging, when classifying process has completed after this data must be arranged. Its means data has
must to be placed in a particular order and in particular sequence may be in data arranging in Priority basis,
and may be size, date, time, year, and ascending or descending order basis. Method of arranging/sorting is
help to find out data very easily. that my this process in important.
SOURCE OF INFORMATION OR METHODS FOR
COLLECTION OF DATA & INFORMATION
A few aspect of data, source of data and methods of collecting the
data for the purposes of converting them into information are
described below:-
Primary Data and Secondary Data:
Data are the raw material used for obtaining information. Data
is derived form a number of sources, both internal as well as
external. If the data is collected for the first time by the researcher,
it is Classified as a Primary data. if however, data is borrowed by
the researcher form the other sources, it is referred to as secondary
Data.
Primary Data: Primary data could be gathered directly form the
respondent. Different techniques like Observations,
questionnaires, interviews etc. can be use for obtaining primary
data, which can then be converted into information.

Secondary Data: Secondary data sources include internal

records as well as external records. Sources like Newspaper,
Magazines, trades journals, Governments publications,
Government policy documents, research reports, web sites etc
are includes in secondary data Sources.
VALUE OF INFORMATION

Information has to be valuable for the organisation,

therefore it is also possible to look at the business value
that resulted from the decision where the information was
used. To make this measurable, it is important to know
what the goals of the organisation are. Business value is for
instance associated with finances, customers or
organisational developments