Management Information Systems-0408 PDF

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Question Paper
Management Information Systems (MC261) – July 2006
Section A : Basic Concepts (30 Marks)

 This section consists of questions with serial number 1 - 30.
 Answer all questions.
 Each question carries one mark.
 Maximum time for answering Section A is 30 Minutes.

< Answer >
1. A “data mart” is
(a) A shop where we get the data we want
(b) A small data warehouse designed for a department or a strategic business unit
(c) A hardware used for data base
(d) A section in the wall mart
(e) Data on markets.
< Answer >
2. ‘Meta data’ is
(a) A collection of data on metals
(b) A huge data base
(c) Data about data
(d) A method to retrieve data
(e) Irrelevant data.
< Answer >
3. GIS stands for
(a) Geological Indian Survey
(b) Graphical Interactive System
(c) Graphical Information System
(d) Geological Information Society
(e) Geographic Information System.
4. Following are some of the Heuristic (developing rules to solve a complex problem) algorithms, except < Answer >
one:
(a) Construction heuristics
(b) Improvement heuristics
(c) Mathematical programming
(d) Random Number generation
(e) Decomposition.
5. Except for one, the following are some of the advantages of “Simulation” method in Decision Support < Answer >
Systems.
(a) A great amount of time compression can be attained
(b) It is descriptive rather than normative, helping the user to pose ‘what-if’ question
(c) It automatically produces many important performance measures
(d) It can generally handle an extremely wide variety of problem types
(e) It is built for one particular problem and typically cannot handle any other problem.
6. In developing a DSS or MIS, the process of developing a “quick version” of a system, for the end user, < Answer >
is known as
(a) Prototyping
(b) Photographing
(c) Profiling
(d) Performing
(e) Promoting.
< Answer >
7. End user developed Decision Support System (DSS) has the following advantages except for one.
(a) The system delivery time is short
(b) The prerequisites of extensive and formal user requirements specifications are eliminated
(c) Lack of DSS design knowledge and controls, can result in poor quality
(d) Some DSS implementation problem are reduced
(e) The development cost is usually low.
< Answer >
file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

8. Even though it can cripple an organization, sometimes people refuse to share what they know
(knowledge). Except for one, the following are some reasons why people don’t share knowledge. Find
the odd one out.
(a) People believe that knowledge is power and that hoarding it guarantees job security
(b) People won’t get credit for sharing knowledge
(c) People don’t have time to share knowledge
(d) People believe that giving away the information they have will result in the reduction in their
bank account balance
(e) People are afraid of making mistakes and looking bad or being reprimanded.
9. Which of the following is not a reason as to why organisations implement Knowledge Management < Answer >
System?
(a) Better decision making
(b) Reduced costs
(c) Statutory obligation
(d) Faster response time to key issues
(e) Improved productivity.
< Answer >
10. Which of the following is not a step/stage in a decision making process?
(a) Problem identification
(b) Generation of alternatives
(c) Choice
(d) Implementation
(e) Salary.
< Answer >
11. The process of knowledge discovery / information harvesting using a database is known as
(a) Data description
(b) Data encryption
(c) Data mining
(d) Data coding
(e) Data encoding.
< Answer >
12. Decision taken, that is not based on any rule or method, and is novel and non-recurrent in nature is
(a) Programmed decision
(b) Non-programmed decision
(c) Semi-programmed decision
(d) Set decision
(e) Irrelevant decision.
13. Which of the following system caters to the operational needs of the finance department of an < Answer >
organization?
(a) Human Resource Information System
(b) Marketing Information System
(c) Executive Information System
(d) Finance & Accounts System
(e) Production Planning & Control System.
14. In a decision making process, where the decision maker considers situation in which several outcomes < Answer >
are possible for each course of action, comes under _______ type of decision making.
(a) Certianity
(b) Risk
(c) Uncertianity
(d) Sure
(e) No-risk.
< Answer >
15. Which of the following is a limitation of Decision Support Systems?
(a) Extend the decision maker’s ability to process information and knowledge
(b) Extend the decision maker’s ability to tackle large-scale, time consuming, complex problem
(c) Shorten the time associated with a decision making
(d) Cannot yet be designed to contain definitely human decision making talents such as creativity,
imagination or intuition
(e) Improve the reliability of a decision process or outcome.
< Answer >
16. Which of the following is not a force acting upon a typical decision maker?

(a) Personal and Emotional

(b) Gravitation (Earth’s)
(c) Economic (Environmental)
(d) Organisational
(e) Contextual and Emergence.
< Answer >
17. Find the odd one out
(a) SAP
(b) BAAN
(c) Oracle Financial
(d) People Soft
(e) Oracle 10g.
18. Which of the following is not a major issue that need to be addressed in the evaluation and selection of < Answer >
an ERP software package?
(a) Cost and ROI benefits
(b) Implementation time and support
(c) Programming language
(d) Service support
(e) Functionality fit.
19. Even when two individuals take a similar decision, their decision making style need not be the same. < Answer >
The manner in which individuals organize and manipulates data is known as
(a) Life style
(b) Cognitive style
(c) Hyper style
(d) Hypo style
(e) Hair style.
< Answer >
20. An effective MIS should have the following features, except
(a) Ability to provide information that will reduce uncertainity
(b) Building a knowledge base
(c) Reducing errors using high level validation techniques
(d) Building strong public relation with outsiders
(e) Ensuring that MIS is designed in such a way the information cannot be misused.
< Answer >
21. Sales Force automation will come under
(a) Finance & Accounting System
(b) Marketing Information System
(c) Manufacturing Information System
(d) Human Resource Information System
(e) Production Planning & Control System.
< Answer >
22. Management information system mainly deals with:
(a) Hardware
(b) Software
(c) Network
(d) Information
(e) Cables.
< Answer >
23. Internet-like networks between a company and its business partners is called
(a) Intranet
(b) Extranet
(c) Protocol
(d) Internetworks
(e) Fishnet.
24. If an organization has been collecting data regarding production units per shift then they should not shift < Answer >
to production units per day. This is an example of:
(a) Validity
(b) Reliability
(c) Consistency
(d) Impartiality
(e) Complexity.
< Answer >
25. Group method for eliciting a wide variety of suggestions by open flow of ideas can be termed as

(a) Guided brainstorming

(b) Group consensus
(c) Brainstorming
(d) Open discussion
(e) Restricted discussion.
26. Which of the following enables workers at different locations to create a shared electronic environment < Answer >
and use IT to design the structure of the organization?
(a) Systemware
(b) Shareware
(c) Middleware
(d) Groupware
(e) Designerware.
< Answer >
27. Which of the following organizations have no structure?
(a) Virtual organizations
(b) Traditional organizations with electronic components
(c) Negotiated agreement organizations
(d) Electronic conglomerates
(e) Multinational companies.
< Answer >
28. The point at which the new system replaces the old system is called
(a) Flag point
(b) Termination point
(c) Milestone
(d) Cutover
(e) Shutdown.
< Answer >
29. Computers in manufacturing concerns are largely used for ______________
(a) Market intelligence
(b) Advertising
(c) Pay roll
(d) Production and inventory control
(e) Public Relations.
< Answer >
30. The immediate step after MIS implementation is
(a) Feasibility study
(b) Evaluation
(c) Preparation of the project status report
(d) Documentation of the implementation process
(e) Draw the data flow diagram.
END OF SECTION A

Section B : Caselets (50 Marks)
 This section consists of questions with serial number 1 – 6.
 Marks are indicated against each question.
 Detailed explanations should form part of your answer.
 Do not spend more than 110 - 120 minutes on Section B.
Caselet 1
Read the caselet carefully and answer the following questions:
1. What business problems were solved at Visa-Pro India by linking call centers and product databases?
(6 marks) < Answer >
2. What business benefits does Visa-Pro India expect from this approach?
Visa-Pro India expected its call center agents to answer customer queries quickly, completely, and politely. But as the

systems that the agents used couldn’t find al the answers a customer was sometimes transferred to several operators
before all his questions were answered.
In 1995, Visa-Pro India increased the training for its call center agents enabling them to have more information on a
range of products to reduce the number of call transfers. But it didn’t work.
To increase customer satisfaction, Visa-pro India is changing its approach. It is using a software that links its eight call
centers and a variety of product databases so an agent can answer questions without transferring the call and soon,
agents will be able to interact with customers via email and the Internet.
Visa-Pro India recently chose a Customer Communications Solution software and is rolling it out to a total of 800
agents in eight call centers across India. Once the system is in place, a customer will be able to call one agent about any
of Visa-Pro India’s 8 credit-card and other financial products.
Instead of transferring a customer to a different operator for each product, the new software will give each agent access
to eight different product databases. The new approach will help Visa-Pro save Rs.30 million annually on its call center
budget.
3. “Merely designing an EIS does not ensure its success.” What are the various barriers that prevent the
effectiveness of an EIS?
(12 marks)< Answer >
Caselet 2
Read the caselet carefully and answer the following questions:
4. Why was the implementation process an easy one for South India Shipping corporation Ltd.?
5. What are the advantages of implementing financial software?
Companies generally purchase software and then customize it to meet their customer’s needs. But sometimes a
company may have to change its business processes to conform to a software package.
In line with a company-wide decree to move from mainframes to client/server computing, South India Shipping
Corporation Ltd acquired R/3 financial software modules from Germany’s SAP AG.
South India Shipping corporation Ltd is one of the world’s leading global container transportation companies. It has
100 offices in about 40 countries. The shipping major owns and charters about 34 container vessels deployed in 30
liner services carrying more than 1 million containers worldwide every year.
SAP met the shipping company’s requirements for handling its international customers. With this software, customers
can choose a particular currency for payment, the country in which they want to pay the bill, and identify the party that
will pay-the shipper or the consignee.
Adapting the shipper’s existing processes to suit the standard accounting modules of SAP was easy because the
company wanted to make changes to these processes. The accounting function also reduced the number of employees
from 100 to 70 with the help of process reengineering.
The different part of the global implementation of the R/3 financial modules was not the roll out but the design phase
that preceded it. During the design phase, the company invited representatives from its offices in various countries and
continents to participate.
South India Shipping corporation Ltd. also hired project consultants and used the consultancy’s project management
methodology to document the design process. The implementation of the R/3 financial modules was started in Chicago.
Then the company operated on country and module by module as it rolled out R/3 financials across its overseas offices.
6. The president of Abhilash Industries could not understand why his manager was unable to take a rational
decision in a crisis. His manager explained the problem. What can be the problem according to the manager?

END OF SECTION B


Section C : Applied Theory (20 Marks)

 This section consists of questions with serial number 7 - 8.
 Marks are indicated against each question.
 Do not spend more than 25 -30 minutes on Section C.
7. List the benefits and limitations of a Decision Support System.


8. How do information systems support the activities of manages in an organization?

END OF SECTION C

END OF QUESTION PAPER
Suggested Answers
Management Information Systems (MC261) – July 2006
Section A : Basic Concepts
1. Answer : (b) < TOP >
Reason : A “data mart” is a small data warehouse designed for a department or a
strategic business unit.
2. Answer : (c) < TOP >
Reason : ‘Meta data’ is data about data.
3. Answer : (e) < TOP >
Reason : GIS stands for Geographic Information System.
4. Answer : (d) < TOP >
Reason : Random Number generation is not a Heuristic algorithm.
Reason : “Simulation” has a limitation in the fact that it can be built for one particular
problem and normally cannot handle any other. All other options given, are
its advantages.
6. Answer : (a) < TOP >
Reason : In developing a DSS or MIS, the process of developing a “quick version” of
a system, for the end user, is known as Prototyping.
Reason : Lack of DSS design knowledge and controls, can result in poor quality, and
hence this is a limitation, where as all others are its advantages.
Reason : People believe that giving away the information they have will result in the
reduction in their bank account balance is the odd one out, as all others are
valid reasons for not sharing information.
Reason : Statutory obligation is not a reason as to why companies implement
knowledge management system.
Reason : Salary is not a step/stage in a decision making process.

Reason : The process of knowledge discovery / information harvesting using a

database is known as data mining.
Reason : Non-programmed decision are decisions taken that is not based on any rule
or method and is novel and non-recurrent in nature.
Reason : Finance & Accounts System caters to the operational needs of the Finance
department of an organization.
Reason : In a decision making process, where the decision maker considers situation
in which several outcomes are possible for each course of action, comes
under “Uncertianity type of decision making.
Reason : The limitation of Decision Support Systems is that it cannot yet be designed
to contain definetly human decision making talents such as creativity,
imagination or intuition.
Reason : Gravitation (Earth’s) is not a force acting upon a typical decision maker.
Reason : Oracle 10g is a RDBMS package. All others are ERP softwares.
Reason : Programming language is not a major issue that need to be addressed in the
evaluation and selection of an ERP software package.
Reason : The manner in which individuals organize and manipulates data is known as
Cognitive style.
Reason : Building strong public relation with outsiders is not a feature of MIS.
Reason : Sales Force automation will come under Marketing Information System.
< TOP >
22. Answer : (d)
Reason : Management information system mainly deals with Information.
< TOP >
23. Answer : (b)
Reason : Internet-like networks between a company and its business partners is called
Extranet.
Reason : If an organization has been collecting data regarding production units per
shift then they should not shift to production units per day. This is an
example of Consistency.
Reason : Group method for eliciting a wide variety of suggestions by open flow of
ideas can be termed as Brainstorming.
Reason : Groupware enables workers at different locations to create a shared
electronic environment and use IT to design the structure of the organization.
27. Answer : (a) < TOP >
Reason : Virtual organizations have no structure.
Reason : The point at which the new system replaces the old system is called Cutover.
Reason : Computers in manufacturing concerns are largely used for Production and
inventory control.
Reason : The immediate step after MIS implementation is Evaluation.



Section B : Caselets
1. Visa-Pro India expected its call center agents to respond to customer queries quickly, completely, and politely. But
the systems that the agents used couldn’t find all the answers. Hence, a customer was sometimes transferred to
several operators before all his questions were answered. To serve its customers better, Visa-Pro India used a
software that linked its eight call centers and a variety of product databases to enable an agent to answer questions
without transferring a call.
< TOP >
2. Visa-Pro India expects is to save Rs.30 million annually on its call center budget through this approach. This
system will help them serve customers better and enable the agents to handle a customer’s query on the first point
of contact.
< TOP >
3. There have been many instances when an EIS implementation has failed. Because an EIS is generally used by the
top management, it is a high risk project. The repercussions of information misuse in the system can be disastrous.
The top management can also refuse to use the system if they find it too complicated. The following could be
some of the barriers that affect the use of an EIS:
Unproductive organizational bahavior norms: Performance monitoring can augment bureaucratic behavior in
an organization. This can result in negative employee morale and increase in unproductive behavior. Thus, a lot
depends on how the organization uses the data available. Managers must be competent enough to interpret the
statistical data effectively. Also, managers must effectively convey the statistical data to the staff in a non-
defensive, trustworthy and constructive manner. Effective use of an EIS requires managers to exude self-
confidence, accept the results as they are and stress on solving the problems rather than resorting to denial or
blame.
Technical Excellence: Researchers have also identical that technical excellence of an EIS is inversely related to
its effectiveness. For any EIS to be effective, it is essential that the systems employed be flexible to adapt to
developments. On the other hand, a technically sound system may continue to perform according to issues that
were important a year ago. It, results in a managerial learning limited to the subjects which were important when
the EIS was first developed. It is essential for EIS to continually adapt to the everchanging strategic issues.
Technical Problems: One of the most crucial issues for EIS users is integrating data from both internal and
external sources. Database connectivity should be such that at any instance, the system must be able to generate
any report that is required. Also, if the system is technically too advanced for the manager to comprehend, he can
assign an analyst to interact with the system. However, this defeats the purpose of managerial learning as the
manager gains little or no learning from the system. Prototyping and usability evaluation methods are an answer to
this problem. By working on the system prototypes, manages can acquaint themselves with the final system and
also give constructive feedback to the developers.
Misaligment between organizational objectives and EIS: Last but not least, the EIS’ ability to direct
organizational attention can be disastrous if the system directs attention to the wrong variables. For example, the
traditional cost accounting systems are quite often wrongly connected with organizational objectives. Such entries
in an EIS draw attention to the wrong issues.
< TOP >
4. Adapting the shipper’s existing processes to suit the standard accounting modules of SAP was easy because the
company was in favor of changing its processes. Moreover, a company-wide decree left South India Shipping
corporation with no alternative but to change its accounting processes. All this helped in the smooth
implementation of R/3 functional modules.
< TOP >
5. It helped the company reduce the number of employees from 100 to 70. SAP met the shipping company’s
requirements for handling its international customers. The software allowed customers to choose a particular
currency for payment, the country in which they want to pay the bill, and the party which will pay – the shipper or
the consignee.
< TOP >
6. The manager may have been unable to take a rational decision for the following reasons:
 Most of the time, management lays stress on finding the right answers rather than asking the right questions.
The challenge lies in understanding the problem first. For instance, if the sale of a product is declining, one
may incorrectly attribute it to poor communication and start spending more on advertising while actually the
decline in sales was caused by poor product quality.
 To take a rational decision, the manager must have access to all necessary information. If sufficient
information is not available, it is not easy to take a suitable decision.
 The decision maker is constantly under pressure to take quick decisions. Under such circumstances, he or
she may make an impulsive and irrational decision.

 At times, a decision-maker is compelled to make a decision when the environment is not right for effective
decision-making. Under such circumstances, the decision taken may turn out to be irrational because the
environmental factors taken into account during decision making turn out to be untrue.
 Other limitations that come in the way of a rational decision are: need for a compromise among different
positions, a miscalculation of the motives and values of individuals, lack of proper communication, inability
to gather available knowledge, and human behavior.
 A decision is said to be rational if it takes care of all the above mentioned factors. A decision maker should
follow the process of decision making, regardless of the type of decision or its underlying motive. This
process is followed consciously and can be placed in the Decision Making Model.
< TOP >
Section C: Applied Theory

7. Benefits and Limitations of DSS Use
Benefits
 Extend the decision maker’s ability to process information and knowledge.
 Extend the decision maker’s ability to tackle large-scale, time-consuming, complex problems.
 Shorten the time associated with making a decision.
 Improve the reliability of a decision process or outcome.
 Encourage exploration and discovery on the part of the decision maker.
 Reveal new approaches to thinking about a problem space or decision context.
 Generate new evidence in support of a decision or confirmation of existing assumptions.
 Create a strategic or competitive advantage over competing organizations.
Limitations
 DSSs cannot yet be designed to contain distinctly human decision-making talents such as creativity,
imagination or intuition.
 The power of a DSS is limited by the computer system upon which it is running, its design, and the
knowledge it possesses at the time of its ise.
 Language and command interfaces are not yet sophisticated enough to allow for natural language processing
of user directives and inquiries.
 DSSs are normally designed to be narrow in scope of application, thus inhibiting their generalizability to
multiple decision-making contexts.
< TOP >
8. There are several different models of what mangers actually do in organizations that show how information
systems can be used for managerial support. Early classical models of managerial activities stressed the functions
of planning, organizing, coordinating, deciding, and controlling. Contemporary research looking at the actual
behavior of managers has found that managers’ real activities are highly fragmented, variegated, and brief in
duration, with managers moving rapidly and intensely from one issue to another. Managers spend considerable
time pursuing personal agendas and goals, and contemporary managers shy away from making grand, sweeping
policy decisions.
The nature and level of decision making are important factors in building information systems for managers.
Decisions can be structured, semistructured, or unstructured, with structured decisions clustering at the operational
level of the organization and unstructured decisions at the strategic planning level. Decision making can also take
place at the individual or group level. Individual models of decision making assume that human beings can
rationally choose alternatives and consequences based on the priority of their objectives and goals. Organizational
models of decision making illustrate that real decision making in organizations takes place in arenas where many
psychological, political, and bureaucratic forces are at work.
Information systems have been most helpful to managers by providing support for their roles in disseminating
information, providing liaison between organizational levels, and allocating resources. However, some managerial
roles cannot be supported by information systems, and information systems are less successful at supporting
unstructured decisions.
< TOP >
< TOP OF THE DOCUMENT >


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Suggested Answers with Examiner's Feedback Page 1 of 10

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

(a) Personal and Emotional

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

(a) Guided brainstorming

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

Section C : Applied Theory (20 Marks)

7. List the benefits and limitations of a Decision Support System.

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

Reason : The process of knowledge discovery / information harvesting using a

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

Section C: Applied Theory

file://C:\Documents and Settings\Administrator\Desktop\Question Paper\Group F\Ma... 02/07/2008

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