A

Seminar Report
On
Management Information System

ACKNOWLEDGEMENT

With immense please I, Varsha Kanwar presenting “Management Information

System” seminar report as a part of the curriculum of ‘Master of Business
Administration’ I wish to thank all the people who gave me unending support.

I respect and thank Dr. Akhil Mathur sir, for providing me an opportunity to do the
project work and giving me all support and guidance which made me complete the
report duly. I am extremely thankful to him for providing such a nice support and
guidance, although he had busy schedule.

I perceive as this opportunity as a big milestone in my career development. I will

strive to use gained skills and knowledge in the best possible way, and I will
continue to work on their improvement, in order to attain desired career
objectives.
 CONENT

1. INTRODUCTION

2. WHAT IS MANAGEMENT INFORMATION SYSTEM?

3. GOALS OF MIS

4. OBJECTIVES OF MIS

5. COMPONENTS OF MIS

6. TYPES OF MIS

7. ADVANTAGES OF MIS

8. CONCLUSION
 INTRODUCTION

Management information system one of the most important tools in any organization, which
aims to provide reliable, complete, accessible, and understandable information in a timely
manner to the users of the system. Management information systems assisted in automating
tasks. Automation can save time, money, resources, reduce employee’s staff, and enhance
organizational workflow. In addition assist in increased organization productivity, effectiveness,
increase customer satisfaction, and efficiency of the work

Management Information Systems represents a managerial approach to information systems

concepts and applications. Computers have become pervasive in every aspect of our lives.
Networks including the Internet have made computer facilities almost ubiquitous. As a result
managers have a major responsibility for determining their information system needs and for
designing and implementing information systems that support these needs. At the same time
computer technologies have created opportunities for managers to improve customer service,
reduce costs, improve productivity, increase market share, and increase profits. Students who are
majoring in Business Administration and Management should understand how information
systems technologies support key organization functions, what information resources are
available to them, and how MIS and other professional are involved in the System Development
Process. A management information system (MIS) is a computerized database of financial
information organized and programmed in such a way that it produces regular reports on
operations for every level of management in a company. It is usually also possible to obtain
special reports from the system easily. The main purpose of the MIS is to give managers
feedback about their own performance; top management can monitor the company as a whole.
Information displayed by the MIS typically shows "actual" data over against "planned" results
and results from a year before; thus it measures progress against goals. The MIS receives data
from company units and functions. Some of the data are collected automatically from computer-
linked check-out counters; others are keyed in at periodic intervals. Routine reports are
preprogrammed and run at intervals or on demand while others are obtained using built-in query
languages; display functions built into the system are used by managers to check on status at
desk-side computers connected to the MIS by networks. Many sophisticated systems also
monitor and display the performance of the company's stock.

ORIGINS AND EVOLUTION

The MIS represents the electronic automation of several different kinds of counting, tallying,
record-keeping, and accounting techniques of which the by far oldest, of course, was the ledger
on which the business owner kept track of his or her business. Automation emerged in the 1880s
in the form of tabulating cards which could be sorted and counted. These were the punch-cards
still remembered by many: they captured elements of information keyed in on punch-card
machines; the cards were then processed by other machines some of which could print out results
of tallies. Each card was the equivalent of what today would be called a database record, with
different areas on the card treated as fields. World-famous IBM had its start in 1911; it was then
called Computing-Tabulating-Recording Company. Before IBM there was C-T-R. Punch cards
were used to keep time records and to record weights at scales. The U.S. Census used such cards
to record and to manipulate its data as well. When the first computers emerged after World War
II punch-card systems were used both as their front end (feeding them data and programs) and as
their output (computers cut cards and other machines printed from these). Card systems did not
entirely disappear until the 1970s. They were ultimately replaced by magnetic storage media
(tape and disks). Computers using such storage media speeded up tallying; the computer
introduced calculating functions. MIS developed as the most crucial accounting functions
became computerized.

Waves of innovation spread the fundamental virtues of coherent information systems across all
corporate functions and to all sizes of businesses in the 1970s, 80s, and 90s. Within companies
major functional areas developed their own MIS capabilities; often these were not yet connected:
engineering, manufacturing, and inventory systems developed side by side sometimes running on
specialized hardware. Personal computers ("micros," PCs) appeared in the 70s and spread widely
in the 80s. Some of these were used as free-standing "seeds" of MIS systems serving sales,
marketing, and personnel systems, with summarized data from them transferred to the
"mainframe." In the 1980s networked PCs appeared and developed into powerful systems in
their own right in the 1990s in many companies displacing midsized and small computers.
Equipped with powerful database engines, such networks were in turn organized for MIS
purposes. Simultaneously, in the 90s, the World Wide Web came of age, morphed into the
Internet with a visual interface, connecting all sorts of systems to one another.

Midway through the first decade of the 21st century the narrowly conceived idea of the MIS has
become somewhat fuzzy. Management information systems, of course, are still doing their jobs,
but their function is now one among many others that feed information to people in business to
help them manage. Systems are available for computer assisted design and manufacturing (CAD-
CAM); computers supervise industrial processes in power, chemicals, petrochemicals, pipelines,
transport systems, etc. Systems manage and transfer money worldwide and communicate
worldwide. Virtually all major administrative functions are supported by automated system.
Many people now file their taxes over the Internet and have their refunds credited (or money
owning deducted) from bank accounts automatically. MIS was thus the first major system of the
Information Age. At present the initials IT are coming into universal use. "Information
Technology" is now the category to designate any and all software-hardware-communications
structures that today work like a virtual nervous system of society at all levels.
 What Is Management Information System?

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 informally
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.

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 is not a monolithic entity but a collection of systems which provide the user
with a monolithic feel as far as information delivery, transmission and storage is concerned The
different subsystems working at the background have different objectives but work in concert
 with each other to satisfy the overall requirement of managers for good quality information.
Management information systems can be installed by either procuring off the self systems or by
commissioning a completely customized solution. Sometimes, management information systems
can be a mix of both, i.e., an 'off the self system but customized as per the need of the
organization.

However, before we precede any further we must have a clear understanding of what managers
do in an organization and why they need management information systems. The former issue has
already been dealt with at length in the previous sections. Only a brief overview is given here.

Managers are the key people in an organization who ultimately determine the destiny of the
organization. They set the agenda and goals of the organization, plan for achieving the goals,
implement those plans and monitor the situation regularly to ensure that deviations from the laid
down plan is controlled. This set of activity ensures the smooth functioning of the organization
and helps it attain its objectives. Hence, these managers are vital for a successful organization.
The managers in turn conduct these activities collectively management functions. They decide
on all such issues that have relevance to the goals and objectives of the organization. The
decisions differ in the following degrees,

1. Complexity
2. Information requirement for taking the decision
3. Relevance
4. Effect on the organization
5. Degree of structured behavior of the decision-making process.

The different types of decisions require different type of information as without information one
cannot decide
 Characteristics of Management Information System

1. System approach:
MIS follows the system approach, which implies a step by step approach to the study of system
and its performance in the light of the objective for which it has been constituted. It means taking
an inclusive view at sub-systems to operate within an organization.
2. Management-oriented:
The management-oriented characteristic of MIS implies that top-down approach needs to be
followed for designing MIS. A top-down method says the initiation of system development
determines management requirements as well as business goals. MIS implies the management
dynamically to the system development towards the completion of management decision.
3. As per requirements:
The design and development of MIS should be as per the information required by the managers.
The required design and development information is at different levels, viz., strategic planning,
management control and operational control. It means MIS should cater to the specific needs of
managers in the hierarchy of an organization.
4. Future-oriented:
The design and development of MIS should also be future purpose so that the system is not
restricted to provide only the past information.
5. Integrated:
A complete MIS is a combination of its multiple sub-components to provide the relevant
information to take out a useful decision. An integrated system, which blends information from
several operational areas, is a necessary characteristic of MIS.
6. Common data flows:
This concept supports numerous basic views of system analysis such as avoiding duplication,
combining similar functions and simplifying operations. The expansion of common data flow is
a cost-effectively and logical concept.
7. Long-term planning:
MIS should always develop as a long term planning because it involves logical planning to get
success of an organization. While developing MIS, the analyst should keep future oriented
analysis and needs of the company in mind.
8. Relevant connection of sub-system planning:
The MIS development should be decomposing into its related sub-systems. These sub-systems
must be meaningful with proper planning.

9. Central database:
it contains data in tabular form. The data base is responsible to operations like insertion, deletion,
updation of records. This database covers information related to inventory, personnel, vendors,
customers, etc. the data stored in the database.
10. 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.
 Goals of MIS

The main goals of an MIS are to help executives of an organization make decisions that advance
the organization’s strategy and to implement the organizational structure and dynamics of the
enterprise for the purpose of managing the organization in a better way for a competitive
advantage .
These are some goals of an MIS:

1. Capturing Data.
2. Processing Data.
3. Information Storage.
4. Information Retrieval.
5. Information Propagation.

The goals of an ideal MIS are to relieve management from converting data into information,
provide relevant information to each management level for effective decision-making and the
effective conduct of the job function, and present information that is current and readily usable
and is available in an easily understood format. To meet these goals the MIS would posses the
following attributes.

1. It would address the primary needs of the management function and not the needs of a person.
2. It would address the underlying problem, not just the symptoms.
3. It would present a maximum of information and a minimum of data.
4. It would be reliable.
5. The output would contain sufficient and relevant information to minimize uncertainly in a
format that can be easily understood and be usable without further modification.
 Objectives of MIS

1) Data Capturing:

MIS capture data from various internal and external sources of organization. Data capturing may
be manual or through computer terminals.

2) Processing of Data:

The captured data is processed to convert into required information. Processing of data is done
by such activities as calculating, sorting, classifying, and summarizing.

3) Storage of Information:

MIS stores the processed or unprocessed data for future use. If any information is not
immediately required, it is saved as an organization record, for later use.

4) Retrieval of Information:

MIS retrieves information from its stores as and when required by various users.

5) Dissemination of Information:

Information, which is a finished product of MIS, is disseminated to the users in the organization.
It is periodic or online through computer terminal.
 ROLE OF THE MIS

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 works faster and
supplies more blood when needed. It regulates and controls the incoming impure blood,
processes 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.

(1) The system ensures that an appropriate data is collected from the various sources, processed,
and sent further to all the needy destinations. The system is expected to fulfill the information
needs of an individual, a group of individuals, the management functionaries: the managers and
the top management.

(2) The MIS satisfies the diverse needs through a variety of systems such as Query Systems,
Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic
Planning, Management Control, Operational Control and Transaction Processing.

(3) The MIS helps the clerical personnel in the transaction processing and answers their queries
on the data pertaining to the transaction, the status of a particular record and references on a
variety of documents. 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 operations level to correct an out of control situation.

(4) The MIS helps the middle management in short them planning, target setting and controlling
the business functions. It is supported by the use of the management tools of planning and
control. The MIS helps the top management in goal setting, strategic planning and evolving the
business plans and their implementation.

(5) The MIS plays the role of information generation, communication, problem identification
and helps in the process of decision making. The MIS, therefore, plays a vita role in the
management, administration and operations of an organization.

Components of MIS

MIS is a system or process that consists of people, machines, procedures, data methods and
database as the elements of the system. Different components of MIS are discussed follow-
1) Hardware: The hardware compeonent of MIS means all the input and output devices that
help the feeling and displaying the information as per requirement. Different input devices are
keyboard, scanners and mouse etc. The output devices are monitor, printer, network devices etc.
Hardware devices are the physical parts of MIS. These can help in maintaining the data of
business.
2) Software: Softwares are the programmes and applications which convert machine into
readable language. Different softwares generaly used for processing the information of an
orgaisation are ERP and CRP, ERP is software package that combines all data and processes of
an organisation. In order to achieve the integration, it uses multiple components of computer
software as well as hardware. Advantage of ERP system is that it uses a single, unified database
to store data for various systems. Under ERP system all functions of an organisation can be
controlled. On the other hand, ORM is a software package which includes the capabilities,
methodologies and technolgies to support an organisation in managing the relationship with
customers. ORM can enable the organisation to manage their customers through the introduction
of reliable systems, processes and procedures.
3) Procedures: Procedure implies a set of sales and guideline, which are established by an
organisation for the use of a computer based information system, Procedure depends on the
natutre and purpose of the organisation. So procedures are different for different organisations.
Moreover, it may vary from one department to another department according to requirement. As
for example, production department requires information on raw materials, quality of goods etc.
But the sales department requires information on quality of goods to be sold, the expenditure of
sale etc. So, different departments have to set their procedures in different ways so that the MIS
can help in retrieving the information as per requirement of a particular department
4) Personnel: Different personnel of MIS are computer experts, managers, users of computer
based information system. Majority of the personnel use the computer based information for
preparing plans and programmes, rules and regulations, and for taking different decisions.

Types of MIS

1. Electronic Data Interchange Systems (EDI):

Electronic data interchange systems represents the exchange of documents and transactions by a
computer in one company with the computer(s) of one or more other companies in an open-
system environment. The application of EDI involves the conversion of a written document into
a machine-readable form so that a computer in one company can communicate directly with the
computer of the other company (1999).

2. Decision Support Systems (DSS):

Essentially, an individually oriented decision support system is designed to satisfy the needs of a
manager at any level in a distributed data processing environment. The system is designed to
support the problem-finding and problem-solving decisions of the manager. Such a system
emphasizes direct support for the manager in order to enhance the professional judgment
required to make decisions, especially when the problem structures tend to be semi structured
and unstructured (1999).

3. Executive Information Systems (EIS):

EIS is used mostly for highly structured reporting, sometimes referred to as status access. DSS
has become almost synonymous with modeling and unstructured, ad hoc querying. Executive
information systems are aimed at senior executives who currently have few, if any, computer-
based systems to assist them in their day-to-day responsibilities. EIS brings together relevant
data from various internal and external sources, delivering important information quickly and in
a useful way. More important, it filters, compresses, and tracks critical data as determined by
each executive end user. EIS performs the conceptually simple task of informing senior
executives on matters relevant to their organizational responsibilities. Unlike traditional MIS
functions that focus on the storage of large amounts of information, EIS focuses on the retrieval
of specific information and on status access. The emphasis is on reducing the time and effort that
the executive user must expend to obtain useful information for making the organization more
competitive and its employees more productive.

An executive information system can be defined in its broadest sense as one that deals with all of
the information that helps executive make strategic and competitive decisions, keeps track of the
overall business and its functional units, and cuts down on the time spent on routine tasks
performed by an executive. As such, an EIS is capable of providing an executive with the right
information in the right format, fast enough to enable the individual to make the right decisions
(1999).

4. Idea Processing Systems:

Idea Processing Systems are systems designed to capture, evaluate, and synthesize individual
ideas into large context that has real meaning for decision makers. The basic stages of an idea
processing system center on inputs in the form of a problem statement and an observation about
the problem. Processing involves idea generation and evaluation of ideas for solving the problem
(1999).
 Advantages of MIS

1. It 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. In 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. It 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. It 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
 CONCLUSION

An efficient information system creates an impact on the organization's function, performance,

and productivity.

Nowadays, information system and information technology have become a vital part of any
successful business and is regarded as a major functional area like any other functional areas
such as marketing, finance, production and human resources, etc.

Thus, it is important to understand the functions of an information system just like any other
functional area in business. A well maintained management information system supports the
organization at different levels.

Many firms are using information system that cross the boundaries of traditional business
functions in order to re-engineer and improve vital business processes all across the enterprise.

The strategic role of Management Information System involves using it to develop products,
services, and capabilities that provides a company major advantages over competitive forces it
faces in the global marketplace.

We need an MIS flexible enough to deal with changing information needs of the organization.
The designing of such a system is a complex task. It can be achieved only if the MIS is planned.
We understand this planning and implementation in management development process.

Decision support system is a major segment of organizational information system, because of

its influential role in taking business decisions. It help all levels of managers to take various
decisions