MANAGEMENT

INFORMATION SYSTEM
concept
Role
Impact
MIS: support to Management
 Management:

Word “management” identifies a special

group of people whose job is to direct the
effort and activities of other people toward
common objective.

Management is the process of coordinating

work activities so that they are completed
efficiently and effectively with and through
other people.

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 INFORMATION
 Information is data that has been manipulated to be useful
to someone.

 Information must have value.

 Information tells people something they don’t already know

or confirms something that they suspect.

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 SYSTEM
A system is a group of interrelated components
working together toward a common goal by
accepting inputs and producing output in an
organized transformation process.
Characteristics of a useful system:
 A system is a whole.
 Components of a system interact.
 Systems are goal seeking.
 Systems have input/output.
 System must be controlled.
 System forms a hierarchy.
 Systems exhibit differentiation.

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 MANAGEMENT INFORMATION
SYSTEM 
 MIS is also knows as Information Systems/ Information and
Decision Systems/ Computer-Based Information Systems.
 Definitions of MIS:
1. MIS is defined as a system which provides information
support for decision-making in the organization.
2. MIS is defined as an integrated system of man and machine for
providing information to the operations, management &
decision-making function in the organization.
 
 MANAGEMENT INFORMATION
SYSTEM 
3. MIS is defined as a system based on the database of the
organization for the purpose of providing information to people in
organization.
4. MIS is defined as a Computer-based Information System.
 TASKS OF MIS
Following are activities performed during information System
processing:
1. Handling of voluminous data
2. Confirmation of the validity of data & transaction
3. Complex processing of data & multidimensional analysis
4. Quick search & retrieval
5. Mass storage
6. Communication of information system to the user on time
7. Fulfilling the changing needs of information
Formal system should exist to handle all above mentioned things.
Hence, MIS uses computer technology to deal with information.
MIS AND COMPUTER
 MIS relies on the HW and SW capacity of
the computer and its ability to store, process,
retrieve and communicate with no
limitations.
 Ability of the computer to sort and merge

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helps to organize the data in a particular
manner.
 Ability of a computer system to provide
security of data brings confidence in the
management.
 The computer system being able to configure
to the specific needs helps to design a
flexible MIS.
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 MIS AND ACADEMICS

 Management theory and organizational behavior

 Human mind as processor

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 Operation Research and network theory

 Accounting Applications

 Data Structure(DBMS)

 Decision theory and Mathematical Techniques

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 NEED FOR MIS
 1. Increasing complexity of business activity
a) International economy
Firms of all sizes are subject to economic influences that can
originate
anywhere in the world. Such influences can be seen in the
relative values of
the currencies of each nation, where purchases are made in
those countries
with the highest currency value.
b) Worldwide competition
Competition exists on a worldwide scale. Its effects can be
seen in the
imports from foreign countries.
c) Increasing complexity of technology
Technology is used everywhere in business. Examples are bar
code scanners,
computer based airline reservation systems, automated teller
machines,
factory robots ..etc.
 d) Shrinking time frames
All phases of business operations are performed
more rapidly than ever
before. (telemarketing, electronic sales orders,
“just in time “ delivery of
raw materials ..etc)
 e) Social constraints
Some products and services are found undesirable
by society. Therefore,
business decisions must be based on economic
factors, but social costs and
payoffs must be considered as well. Plant
expansion, new products, new
sales outlets and similar actions must all be
weighed in terms of their
environmental impact.
2. Improved computer capabilities
a) Size
b) Speed
PURPOSE OF MIS
 Management Information Systems are primarily
concerned with the delivery of information (both internal
and external) to organizational members from the shop
floor workers to the management.
 The purpose of MIS is to help the smooth running of the
business by providing information on the firms data (such
as accounting figures) employees from different levels will
then evaluate this information so that decisions can be
made to ensure that the business remains competitive and
successful.
 MIS have been created to support the whole range of
business's administration and regulatory activities and
can be seen in all parts of the world and in all types of
industries both public and private sector.
 In the US, for example, the National Drivers Register has
MIS facilities to report on driver license details, such as
all those within a given state whose license has been
revoked or suspended
CONCEPTUAL DESIGN MODELS OF
MIS
 1. The
Process Model
 2.The Logical Model of MIS
 3.The Physical Model of MIS
THE PROCESS MODEL
 In this model, the information system is depicted
as a collection of processes that are put together
and occur in pre-determined sequences to gather
,capture,format,and present information.
 A process is something that converts inputs into
output.
 A process needs the following entities to
function:
 1.Methods or Procedures

 2.Trained Operators

 3.Knowledge of methods and Machinery

 4.Materials

 5.Machinery
THE LOGICAL MODEL OF MIS
 MIS
 Science & Technology

 Management Science

 Data Information Technology

PHYSICAL MODEL OF MIS

Data
Capturing

Data
Processing
Data Storage
and Retrieval

Reporting Modeling&
Simulation

Control Decision
Support Support
 MIS consist of several parts or sub-systems.
These subsystems interact with each other
different ways to finally produce the information
in the format desired.
 The efficiency with which these modules interact
will determine the effectiveness of the MIS.
 Some system are:

1.Data Capturing Model

 The data capturing model is responsible for the
collection and capture of data that needed to
produce the information.
 This module will vary according to the volume of
data and the complexity of data that needs to be
captured.
 E.g. Bar Code
 2.Data Storage (retrieval) Module
 This module is responsible for storing the data capture
in the previous module.
 The data must be stored such that it remains intact
and it is easily retrievable for processing.
 3.Data Processing Module
 This module is responsible for storing the data
captured into usable information.
 A variety of processes may be used to combine the data
into information.
 For E.g. in small org. manual processes may be used
notebooks, register, calculators.
 In large org.,it may take an entire department to
process the information.
 4. Information Reporting Module
 This module is responsible for converting the output
from the Data Processing Module into meaningful
information.
 This module thus take the processed data and lays it
out in a readable or usable form.
 Computer may be used for both, the Data processing
and the Information Reporting modules, or for either
one of them, or for neither, depending on the size of
org.
 5. Decision Support Module

 This module is designed to help the manager make a

decision based on the information presented .
 6. Control Support Module

 It enables the manager to keep control; over various

facets of the business.
 This module is generally based on a feedback
mechanism, which provides information to the
manager on what is happening within the system and
allows the manager to make change during the process
to achieve the desired result.
 7. Modeling and Simulation Module
 This module makes it possible for a manager to see the
future of consequence of present actions.
 Thus, a marketing manager may desire to know what
would happen if he dropped the price of a product by a
certain amount.
 Past data is used for forecasting the future data.
 This module is used basically to enhance the growth of
the business, If a manger had no such model or
simulator, he may be forced to actually take the action
after which it would be too late to take corrective
action.
 ROLE OF MIS
1. ensures that appropriate data is
collected from valid sources,
processed and passed to needy
destinations.
2. satisfies the needs through
Query Systems, Analysis
Systems, Modeling systems.
3. Helps in strategic planning,
Management control, Operational
control & Transaction Processing.
Hence, MIS plays a vital role in management, administration &
operations of an organization.
 In Operational Management
 Day to Day operation of the business.

 It needs information on day to day basis to

perform the operations.
 Mis provide such information on a daily or even
hourly basis to the Operational Management to
enable it to control the operations.
 In Middle Management

o Concerned with short term goals, problem

solving, progress monitoring and short term

target setting.
o In Top Management

o Long term growth

o SWOT

o Company goals and objectives

 Can be compared to the role of heart in
the body. Information is blood and MIS is
the heart.

 The different information requirement at

different levels in the organization.
 IMPACT OF MIS

1. With a good support of MIS, marketing, finance, production &

personnel management becomes more efficient.
2. MIS gives better understanding of business.
3. A two-way communication flow is greatly enhanced by MIS. The
management freely tells its employees their jobs, and the ways
and means in which they are to accomplish the tasks entrusted to
them. The employees also in turn discuss their doubts, concerns
and problems.
 USERS OF MIS
Every person in organization is the user of MIS.
User tools • Generation of data
• Searching for a data
• Submitting it higher level
managers
Clerk
action-oriented • Integrating data
information tools • Analyzing data
• plays the role of decisions maker
& planner
Officer
Decision making
tools • Strategic planning
• Decision Making
Executive
Manager
The users of MIs use GUI, multimedia, imaging, internet to
make use of MIS efficiently.
 
MIS: Support to Management
The management process is executed through different decisions
 
taken at each step of management.

Steps in Management Decision

Planning A selection from various alternatives
like strategies, resources, methods
Organization A selection for goals, people,
resources, methods
Staffing Providing manpower
Directing Choosing methods from various
methods
Coordinating Choice of tools and techniques for
coordinating efforts
Controlling A selection of exceptional conditions
and he decision guidelines
 MIS: SUPPORT TO
MANAGEMENT
Environment

Management

Goal Setting

Planning Organizing Staffing Directing Coordinating Controlling

Information Support

MIS