MIS

Management Information Systems (MIS), referred to as Information Management and Systems, is the
discipline covering the application of people, technologies, and procedures collectively called information
systems, to solving business problems.
“'MIS' is a planned system of collecting, storing and disseminating data in the form of information
needed to carry out the functions of management.”
Academically, the term is commonly used to refer to the group of information management methods tied to
the automation or support of human decision making, e.g. Decision Support Systems, Expert Systems,
and Executive Information Systems.
Management: Management is art of getting things done through and with the people in formally organized
groups. The basic functions performed by a manager in an organization are: Planning, controlling, staffing,
organizing, and directing.
Information: Information is considered as valuable component of an organization. Information is data that
is processed and is presented in a form which assists decision maker.
System: A system is defined as a set of elements which are joined together to achieve a common
objective. The elements are interrelated and interdependent. Thus every system is said to be composed of
subsystems. A system has one or multiple inputs, these inputs are processed through a transformation
process to convert these input( s) to output.

What are the most common types of information system in an organization?

While there are several different versions of the pyramid model, the most common is probably a four level
model based on the people who use the systems. Basing the classification on the people who use the
information system means that many of the other characteristics such as the nature of the task and
informational requirements, are taken into account more or less automatically.

Four level pyramid model based on the different levels of hierarchy in the organization

A comparison of different kinds of Information Systems

Using the four level pyramid model above, we can now compare how the information systems in our model
differ from each other.
1. Transaction Processing Systems

What is a Transaction Processing System?

Transaction Processing System are operational-level systems at the bottom of the pyramid. They
are usually operated directly by shop floor workers or front line staff, which provide the key data
required to support the management of operations. This data is usually obtained through the
automated or semi-automated tracking of low-level activities and basic transactions.

Functions of a TPS

TPS are ultimately little more than simple data processing systems.

Functions of a TPS in terms of data processing requirements

Inputs Processing Outputs
Validation
Sorting Lists
Transactions Listing Detail reports
Events Merging Action reports
Updating Summary reports?
Calculation

Some examples of TPS

o Payroll systems
o Order processing systems
o Reservation systems
o Stock control systems
o Systems for payments and funds transfers

The role of TPS

o Produce information for other systems

o Cross boundaries (internal and external)
o Used by operational personnel + supervisory levels
o Efficiency oriented
o
2. Management Information Systems

What is a Management Information System?

For historical reasons, many of the different types of Information Systems found in commercial
organizations are referred to as "Management Information Systems". However, within our pyramid
model, Management Information Systems are management-level systems that are used by middle
managers to help ensure the smooth running of the organization in the short to medium term. The
highly structured information provided by these systems allows managers to evaluate an
organization's performance by comparing current with previous outputs.

Functions of a MIS

MIS are built on the data provided by the TPS

 Functions of a MIS in terms of data processing requirements
Inputs Processing Outputs
Internal Transactions Sorting Summary reports
Internal Files Merging Action reports
Structured data Summarizing Detailed reports

Some examples of MIS

o Sales management systems

o Inventory control systems
o Budgeting systems
o Management Reporting Systems (MRS)
o Personnel (HRM) systems

The role of MIS

o Based on internal information flows

o Support relatively structured decisions
o Inflexible and have little analytical capacity
o Used by lower and middle managerial levels
o Deals with the past and present rather than the future
o Efficiency oriented?

3. Decision Support Systems

What is a Decision Support System?

A Decision Support System can be seen as a knowledge based system, used by senior managers,
which facilitates the creation of knowledge and allow its integration into the organization. These
systems are often used to analyze existing structured information and allow managers to project the
potential effects of their decisions into the future. Such systems are usually interactive and are used
to solve ill structured problems. They offer access to databases, analytical tools, allow "what if"
simulations, and may support the exchange of information within the organization.

Functions of a DSS

DSS manipulate and build upon the information from a MIS and/or TPS to generate insights and
new information.

Functions of a DSS in terms of data processing requirements

Inputs Processing Outputs
Modelling
Internal Transactions Summary reports
Simulation
Internal Files Forecasts
Analysis
External Information? Graphs / Plots
Summarizing

Some examples of DSS

 o Group Decision Support Systems (GDSS)
o Computer Supported Co-operative work (CSCW)
o Logistics systems
o Financial Planning systems
o Spreadsheet Models?

The role of DSS

o Support ill- structured or semi-structured decisions

o Have analytical and/or modelling capacity
o Used by more senior managerial levels
o Are concerned with predicting the future
o Are effectiveness oriented?

4.Executive Information Systems

What is an EIS?

Executive Information Systems are strategic-level information systems that are found at the top of
the Pyramid. They help executives and senior managers analyze the environment in which the
organization operates, to identify long-term trends, and to plan appropriate courses of action. The
information in such systems is often weakly structured and comes from both internal and external
sources. Executive Information System are designed to be operated directly by executives without
the need for intermediaries and easily tailored to the preferences of the individual using them.

Functions of an EIS

EIS organizes and presents data and information from both external data sources and internal MIS
or TPS in order to support and extend the inherent capabilities of senior executives.

Functions of a EIS in terms of data processing requirements

Inputs Processing Outputs
External Data Summarizing Summary reports
Internal Files Simulation Forecasts
Pre-defined models "Drilling Down" Graphs / Plots

Some examples of EIS

Executive Information Systems tend to be highly individualized and are often custom made for a
particular client group; however, a number of off-the-shelf EIS packages do exist and many
enterprise level systems offer a customizable EIS module.

The role of EIS

o Are concerned with ease of use

o Are concerned with predicting the future
o Are effectiveness oriented
o Are highly flexible
o Support unstructured decisions
o Use internal and external data sources
o Used only at the most senior management levels
The major implementation tasks consists of-

1. Planning the implementation activities

2. Acquiring and laying out facilities and offices
3. Organizing the personnel for implementation
4. Developing procedures for installation and testing
5. Developing the training program for operating personnel.
6. Completing the system’s software
7. Acquiring required hardware
8. Generating files
9. Designing forms
10. Testing the entire system
11. Completing cutover to the new system
12. Documenting the system
13. Evaluating the MIS
14. Providing system maintenance(debugging and improving)

1. Planning the implementation activities

Establish Relationships among tasks
For small projects, the order of performance may simply be described in text form. A Gantt chart or
network diagram makes visualization of the plan and schedule much clearer.
For large projects, many concurrent and sequential activities are interrelated so that a network diagram
must be employed in any good plan.
Establish a Schedule
Schedule is prepared by having the system designers estimate the times between the events in the program
network. The critical path (longest time through the network) can be calculated. After specifying the
starting date, the end date is established.
Cost Schedule to Tasks and Time
The cost for completing each task required to complete is established as part of the plan; then the rate of
expenditures should be budgeted.
Reporting and control of the work in progress may be obtained by weekly meetings. The financial
personnel must make certain that report formats allow them to show cost and technical progress
relationship as well as cost and time.
2. Acquiring and laying out facilities and offices
For the installation of a new system to replace a current one may require a major revision of facilities as
well as completely new office, computer room etc.
The MIS project manager must prepare rough layouts and estimates of particular floor areas that feel to be
needed. The manager then prepares cost estimates.
Space planning must be done by the space to be occupied by people, the space occupied by equipment and
the movement of people and equipment in the work progress. A large investment in good working
conditions will repay its cost many times.

3. Organizing the personnel for implementation

As the implementation tasks have been defined, management usually assigns a project manager to guide
the implementation.
The purpose of the MIS is to increase the amount and quality of their contributions, the system is their
system.
Top management must make the middle managers for their involvement in implementation, besides these,
systems specialists, computer programmer; top management should make sure that each people who will
operate the system should have active parts in the implementation.

4. Developing procedures for installation and testing

After organizing the personnel for implementation the next task is to develop or prepare the procedures
for implementation. As the project leader has the network plan for proceeding with theimplementation,
this leader calls the key people in the project to prepare more detailed procedures for system installation.
Procedures for evaluating and selecting hardware must be spelled out. Procedures for phasing in parts of
the MIS or operating the MIS in parallel must be developed.
The major part of implementing the MIS is the testing of each segment of total system as it is installed.

5. Developing the training program for operating personnel

A program is developed keeping in mind to impress management and support. After developing the
program, it is necessary to train operating personnel in their new duties. They must have a thorough
understanding of what the new MIS is like and what it is supposed to do. They must learn how it will
operate. They are faced with many changes in their work and have to obtain acceptance of changes.
As there are various levels of personnel and these people will be working with only a small part of the MIS,
the seminars should be designed to provide them with an understanding of the complete system.

6. Completing the system’s software

As the software is developed internally or under contract, in both cases, the software development must
take in mind the nature of the hardware required.
As the system designers and programmers provide the flow diagrams and the block diagrams during the
detailed design state. Some modification may be required, as the implementation stage progresses.

7. Acquiring required hardware

This acquisition is usually the limiting factor in getting am MIS implementation. These tasks should be
started during the design stage.
The decision is to be needed, whether to buy or lease the hardware. Capital expenditure analysis is only one
of many factors involved in this decision. Others are prestige, usage etc.

8. Generating files
In the implementation stage, the actual data must be obtained and recorded for the initial testing and
operation of the system. This requires format of the data, storage form and format and remarks to indicate
when the data have been stored.
The collection of data used in routine operations is often called the master file.
Responsibility for file maintenance for each file item should also be assigned. The development of files or
databases belongs to information system designers and storage and retrieval experts.
The translation of specifications for files into computer programs is a function of computer specialists.

9. Designing forms
For controlling the marketing, a salesperson has to fill out the forms summarizing the day’s activities. The
form ensures the right information to be supplied for computer storage.
Forms are required not just for input and output but also for transmitting data at intermediate stages.

10. Testing the entire system

As the total system is installed, tests should be performed with the test specifications and procedure. A test
during installation stage consists of component tests, subsystem tests and total system acceptance tests.
Components may be equipment (that can be new or old), new software programs, new data collection
methods, work procedures, reporting formats. Difficulties that occur during component tests may lead t
design changes.
As more components are installed, subsystems may be tested. There is a difference between the testing of
component and the testing of a system.
System tests require verification of multiple inputs, complex logic systems, and timing aspects of many
parts.

11. completing cutover to the new system

Cutover is a point at which the new component replaces the old component to the new system replaces the
old system. This involves old forms, old files and old equipment being retried.
The debugging proves associated with the cutover to the new system may extend for several months.

12. Documenting the system

Documentation of the MIS means preparation of written descriptions of the scope, purpose, information
flow components, and operating procedures of the system.
Documentation is a necessity for troubleshooting, for replacement of subsystems, for interfacing with other
systems, for training new operating personnel and also for evaluating and upgrading the system.

13. Evaluating the system

After the MIS has been operating smoothly for a short period of time, an evaluation of each step in the
design and of the final system performance should be made.
Evaluation should not be delayed beyond the time when the system’s analysts have completed most of the
debugging. The longer the delay, the more difficult it will be for designer to remember important details.
The evaluation should be made by the customer as well as by the designers.

14. Providing system maintenance

Control and maintenance of the system are the responsibilities of the line managers.
Control of the systems means the operation of the system as it was designed to operate. Sometimes, well-
intentioned people or operators may make unauthorized changes to improve the system, changes that are
not approved or documented.
Maintenance is closely related to control. Maintenance is that ongoing activity that keeps the MIS at the
highest levels of effectiveness and efficiency within cost constraints.
Maintenance is directed towards reducing errors due to design, reducing errors due to environmental
changes and improving the system’s scope and services. a competitive environment.
 DSS
A decision support system is an information system application that assists decision making. DSS tends to be
used in planning, analyzing, alternatives and trial and error search for solutions. ADSS as a system that provide
tools to managers to assist them in solving semi structured and unstructured problems in their own. In other
words, A DSS is an information system that support to managers for decision making. DSS is the intellectual
resources of individuals with the capabilities of the computer to improve the quality of decision.
A DSS can be defined as a computer based information system that aids a decision maker in taking decisions for
semi-structured problems.

“A decision support system is a specialized kind of information system which is an interactive system that
supports in the decision making process of a manager in an organization especially in semi-structured and
unstructured situations. The system utilizes information, models and data manipulation tools to help make
decisions in semi structured to unstructured situations.
As a conclusion we can say that-

“Decision Support System is an interactive, computer based system which supports managers in making
unstructured decisions.”

A Decision Support System can be seen as a knowledge based system, used by senior managers, which
facilitates the creation of knowledge and allow its integration into the organization. These systems are
often used to analyze existing structured information and allow managers to project the potential
effects of their decisions into the future. Such systems are usually interactive and are used to solve ill
structured problems. They offer access to databases, analytical tools, allow "what if" simulations, and
may support the exchange of information within the organization.
(a) Management Attitude – Top management having firm belief in value-oriented holistic management. Profit
is earned through service and satisfaction of all stakeholders – employees, customers, shareholders and
citizens. Fulfillment of social responsibility must be ensured.

(b) Humanising the Organisation – Looking at the three aspects of humane organisations, i.e., inter-personal
relations, man-machine equation where man is the prime concern and inner management through mental and
spiritual growth of individuals.

(c) Interiorising Management – Self management or management by consciousness. When the soul manages
the other four members of the human being, namely, the body, mind, intellect and the heart, the conflict these
four have amongst themselves can be resolved. This is management by consciousness. The objective of self
management is to first know and manage oneself and then manage others.

(d) Self-introspection – Embark upon self-study, self-analysis and self-criticism to locate areas of friction and
disharmony, a self examination of one’s own thoughts, feelings, emotions, sensations and passions and a
desire to reduce and subdue the ego.

(e) Brain-stilling – For rational and enduring decisions, silent mind is a necessity. A perfect Mounum (calm mind
enjoying tranquility) is necessary. Brain-stilling or meditative silence is the most reliable method to discover
solutions to problems and difficulties which seem to be difficult to be tackled by reason and intellect because
through this one can come into contact with the inner mind or higher consciousness called Chetana.

(f) Stepping Back (for a while) – Never decide anything, never speak a word, never throw yourself into action
without stepping-back. The stepping back from a situation for a while enables one to control and master a
situation.

(g) Self-dynamising Meditation – A dynamic meditation is meditation of transformation of lower consciousness

into higher consciousness and hence is called transforming meditation. Through meditation, in a silent and
calm mind, one reaches a higher level of consciousness which offers guidance in the form of intuitions to tackle
a multitude of problems. This is called consciousness approach to management.

(h) Role of Intuition – Intuition is the act of coming to direct knowledge or certainty without reasoning or
inferring. It is immediate cognition by the inner mind and when fully developed, is efficient and effective for
taking prompt and sound decisions. Intuition skills enable one to cope with confidence the fluctuating
environment and rapid changes. Faith is a prerequisite to develop and realize the power of intuition.

The most valuable human possessions are health, harmony, happiness, wisdom, and above all character
reflecting ethical and human values. When these values are manifested in your thoughts, speech and actions,
you are called a noble and enlightened person. As we think sincerely and constantly we become. Our actions
and behaviour reflect our ideas and feelings.

We work not for name, fame, money, power and status but for greater worth, for cultivating values, for
building up strong character, for wisdom so that our intrinsic values enhances. True greatness is not measured
by tangible or extrinsic values such as name fame, etc. but always greatness in life is to be pure, kind, true,
selfless. Health is more important than wealth. Character is most important than money.

VALUES:

Human and ethical values constitute the wealth of characters. Values express dharma or divine nature as
understood in the East, particularly in the Indian ethos and insight and the ideas of integrity as understood in
the West.

Integrity: Integrity is wholeness, goodness, courage, and self-discipline to live by your inner truth.

Wholeness: Wholeness implies totality, soundness, perfection and completeness. In the West, spirit in
Wholeness is given only a slight reference. It is nearly forgotten. In all of ours heart’s chamber lives the
unworshipped God. We are not aware of the divine presence within thought the divine is constantly looking at
the person. Our ego has become the pretended ruler. Ego is the false notion of our mind, because it is ignorant
of the reality.

Goodness: It covers all essential values such as honesty, morality, kindness, fairness, charity, truthfulness,
generosity etc. we need goodness in our thoughts, our speeches, and our actions. ‘Be Good. Do Good’ leads to
purification of thoughts, talks and actions associated with good thoughts. Good things do not happen easily.
You have to make them happen.

Courage: In the world of management, courage points out acts of bravery, e.g. deciding not to conceal
something one knows, and needs to be expressed openly. Courage is telling the truth in the face of danger. You
have the guts to go ahead, do something which is risky.

Self-discipline: Self-discipline and self-control indicates that the soul is the boss who takes control of the mind
and directs the mind and the senses to move on the journey to reach the goal known to the master. When the
soul, the individual consciousness, wakes up, we have self-discipline and self-control to deal with life. The
quality of life will now be different. That quality of life will give you greater harmony, happiness and
moderation. Please remember that we need discipline and courage together to reach our objectives in timye.

Dharma

Dharma is the law of right living the observance of which secures the double object of happiness in your own
life and also the happiness in life of others. It stands for all those ideals, purposes, influences, institutions, and
the ways of life and conduct that shapes the character and evolution of man both as an individual and as
member of the society.

Dharma is the Indian Concept almost synonymous with integrity. However it has a wider scope. It includes
openly spirit, righteousness (godliness) and fearlessness. Let us review these three divine elements.

Spirit: Man is the soul. He is essentially divine. Dharma directly evolves from spirit. Integrity seems to shy away
from it. There is no shyness regarding spirituality in dharma. Dharma is spirit in Indian Ethos. The Western
society is secularized. Indian society has a happy union between spiritualism and materialism. Although
integrity honours all moral values, it gives only lips sympathy to the spirit through the notion of wholeness.
Integrity defines wholeness leaving out spirit. It is the spirit which can bring out a true sense of wholeness. It is
the spirit which makes us whole (Poornatva)

The inclusion of dharma is like rediscovering a vacant upstairs’ room in one’s heart chamber. The spirit, our
boss, lives there. We imagine that spirit is not within us and the upper floor seems to be empty. . Indian ethos
openly recognizes the spirit as our boss and declares ‘Do right, do good, and be good’ and the whole chamber
of our heart shines with the Light of Consciousness.

Righteousness: Dharma demands right action. Do the right thing. In dharma, not mere action but rightness is
given great emphasis.

Fearlessness: integrity means courage. Dharma stresses fearlessness. When the divine is present within you
and you experience his presence, what is there that can touch you or whom you need fear when He is offering
His protection to you? Even a little of His awareness will carry you through all risks and uncertainties.

GOLDEN RULE OF ETHICS

Earlier, the business community and society at large neglected ethics. But over the years people have realized
its importance for the welfare of an organization.

The golden rules, which find its mention in the Bible, are:

1. Everything you want others to do to you, you shall do to others.

2. Do not do to others that which you do not wish them to do to you.
3. Do not do anything that if done to you, would cause harm to you.

In a nutshell, treat others, as you would like to be treated. So if you do not want to be spoken to rudely then
you must not speak rudely. So if don’t want to use flawed goods you must also refrain from adulteration.

VALUES AND SKILLS

1. Values help us to ‘become’ while we need skills to ‘do’.

2. Values act as a base for the skills and hence preceed skills in their importance.
3. Values are internal –deal with purity of mind and soul. While skills are external – deal with functioning
well at job.
4. Values bring about universal good (software aspect). Skills bring about achievement of tasks (hardware
aspect).

Values are enduring and do not change with time. But skills have to be updated regularly and change with
passage of time.
E.g. Excellent service to the customer may be a value of the company. Personal visits may be the method used
by the company. With the advent of technology, the company may use personalized e-mails etc. here the skill
is changing but the service orientation (value) remains constant

The word “ethics” is derived from the Greek word ethos (character), and from the Latin word ‘mores’
(customs)Derived from the Greek word “ethos”, which means “way of living”, ethics is a branch of philosophy
that is concerned with human conduct.