Information System and MIS

Gagan Deep
Rozy Computech Services
3rd Gate, K.U., Kurukshetra-136119
rozygag@yahoo.com
 MANAGEMENT INFORMATION SYSTEM (MIS)
• Management Information System deals with the systems which
produce information for the management at different levels for their
proper functioning.
• Although it is not absolutely essential for MIS, yet it is the computer
which has made a reality of the fundamental concepts of MIS.
• Its assets are speed, accuracy, consistency and the ability to handle
large volumes of data. It however lacks judgment for which the human
beings can complement it.
• The general term system, is more specifically applicable to the
information systems, are going to be of our main interest. Thus the
term MIS may be defined as an integrated man-machine system in
producing information to support the operations, management
planning & control and decision making functions in an organization.
• Man and machine are thus complimentary to each other and the
question really is to what extent computers should be employed.
Before we begin the detailed discussion on the various factors to be
analysed for the design of a detailed MIS, it will be worthwhile to have
a look at the computer technology as it has changed over the last few
years which has affected the very design of MIS.
 Data Versus Information
• The word data is the plural of datum, which means fact. Data, then, are
facts, the raw material of information. Data are represented by symbols,
but they are not information except in a limited sense. As used in data
processing, information is data arranged in an order and form useful to
the people who receive it. That is, information is relevant knowledge,
produced as the output of data processing operations and acquired by
people to enhance understanding and to achieve specific purpose. Fig
illustrate the distinction between data and information.

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sex c n y married 20 10 Age 20 25 15
years married sex 65 M Sex F M F
M Y Y F N Kisses a day Married Y Y N

Data Information
 INFORMATION
• Information is one of the most vital tools for the
management. Modern industrialized society is
faced with Information Explosion.
• Information has been regarded as an important
resource since companies spend major chunk of
their costs towards collecting, processing and
transmitting the information to various levels of
management for their uses.
• Information may be defined in simple words as
the processed data on which decisions are taken.
For the decisions to be meaningful, the processed
data must possess the characteristics of being in
time, accurate, complete and given to the right
person to get qualified as information.
• Since the decisions are based on the information and actions are based
upon decisions, data gets further generated from our actions.
• Data is the facts, observations and assumptions. In a production
environment, the marketing personnel collect the market data. It may
consists of actual facts regarding the sales made and the market
demands or a forecast made by their observation of the market
demands their assumptions for the expected increase in sales, which is
passed to the production department.
• The data is analyzed, processed and detailed working plans are worked
out. Management decisions are taken and plans are issued out for the
actual production. The work being done generates another set of data
which is the progress status which is continuously being collected and
processed to generate exception reports for corrective action by the
management.
• The people having information are the people having the power because
information is regarded as a powerful tool for the success of a manager.
Planners, forecasters, managers, supervisors, system designers and even
the workers are becoming aware of the heavy amount of data which
they need to generate and get to discharge their functions properly. All
these functionaries have a great and complex deal of interactions in
their work invading a good communication system.
 DATA PROCESSING ACTIVITIES
• Data processing consists of three basic activities :
• Capturing the input data,
• Manipulating the data
• Classifying
• Calculating
• Sorting
• Summarizing
• Managing the output results
• Storing & Retrieving
• Communicating and Reproducing
 TYPES OF INFORMATION
The information can be divided into the following
three categories :
• Strategic Information
• Tactical Information
• Operational Information
• Strategic Information
This is the information needed for long term
planning and directing the course that business
should take. For example, The store owner may
like to decide to work on small profit margins to
expand sales, whether to open a new branch etc.
• Tactical Information
This type of information is needed to take short
term decision to run the organization efficiently
For instance, the information on fast and slow
moving items may be used to take the tactical
decision to stock more of the former and give
discount on the latter.
• Operational Information
This type of information is needed for day-to-day
operation of an organization. e.g. List of items to
be reordered, list of defaulters. This form of
information is obtained from straightforward
clerical processing of data.
 QUALITIES OF INFORMATION
To compete with the pace in the business world we have to control over
information quality. Because, good information plays, a very important role in
the success of any organization. Some qualities of information are :
• The information must be accurate : Avoid GIGO.
• The information should be complete : It includes all data, not partial data.
• The information should be trust worthy : It includes all data, not partial
data and also, the processing should not hide vital information which may
point out the efficiency of some individuals.
• The information should be timely : Delayed information may sometimes
be of no use. So, whenever it should be required it should be available.
• The information should also be up-to-date : It should include all data
available at the time of processing.
• The information should be designed according to the needs of the user
and relevant to him: Because, irrelevant information always waste a lot of
managers time.
• The information should be presented in such a way that manager may
immediately perceives its significance
 MANAGEMENT STRUCTURE
• In management structure we have three levels.
• Top Level
• Middle Level
• Line Managers(Operating Management)
• A graphical representation of management structure is known as
organization chart.
• The management structure is a pyramid

Top-Level : Strategic Information

Middle-Level : Tactical Information

Bottom-Level : Line Managers: Operational Information

Top Level
• Top Management performs the strategic planning processes. The basic
function in strategic planning are to establishes the polices, plans, and
objectives of the company, as well as a general budget framework under which
the various departments will operate. These factors are passes down to middle
level or management.
Middle Level
• Middle Management manages the management control processes (tactical
planning processes). The middle level translate the factors passed by top
management into specific revenue, cost, and profit goals using tactical
planning. These are reviewed, analyzed and modified in accordance with the
overall planes and policies until agreement is reached. Then middle
management, issues the specific schedules and measurement scales to
operating level.
Line Managers
• Line managers manages the operational planning process. This level has the
job of producing the goods and services required to meet the revenue and
profit goals, which in turn will enable the company to reach its overall plans
and objectives.
• Hence, we can say in simple words the middle level managers reports to the
top level manager who is the overall in charge of the organization. The middle
level managers have many assistants who are responsible for specific day to
day operations. They are known as line managers.
 TYPES OF INFORMATION SYSTEM
With the understanding of three kinds of process that take place in a
business, we can view the nature of information systems that support
these processes.
• Transaction Processing System(TPS)
• Management Information System(MIS)
• Decision Support System(DSS)
Transaction Processing System(TPS)
• The information system that support the operational control processes
are called transaction processing systems i.e. TPS supports day to day
operations. All of these systems help a company to conduct its
operations and keep track of its activities. These systems are often
termed the bread and butter applications means those systems that
process incoming orders for a company’s product and develop the
information required to deliver the items and then bill the customers
for the cost of their orders. Some other TPS are ticket selling system,
accounts payable system etc
Management Information System(MIS)
• The information system that support the middle level process
are called Management Information system i.e. The system
required to obtain tactical information is known as MIS. These
systems mainly center on providing managers with information
to control operations and make decisions to optimize the
delivery of products to customers. For example, in ticket selling
system, a TPS is used to take orders and print tickets. MIS is
used to measure and report the performance of each of the
agents who sell tickets. Such a MIS keep track of the number
and amount of each agents sales and it regularly produces
reports about agents effectiveness.
Decision Support System(DSS)
• The information system that support the top level process are
called Decision Support system i.e. The system required to
obtain strategic information is known as DSS. The strategic
planning information systems are more elusive than the other
systems. With the help of this system top level manages the
policies, plans, objectives and budgets etc. Unlike MIS, which
are regular and recurring, the need for DSS can be irregular.
 CHARACTERISTICS OF MIS
• Avoid GIGO (Garbage In Garbage Out) : The correct input of a
system always gives accurate information. So, GIGO must be
avoided.
• Information produced should be trust worthy. The processing
should not hide vital information which may point out the
efficiency of some individuals.
• The information should be complete it should include all data,
not partial data.
• The information should be timely. Delayed information may
sometimes be of no use. So, whenever it should be required it
should be available.
• The information should be presented in such a way that
manager may immediately perceives its significance. The
graphical presentation of information is a very effective way.
• Information should be designed according to the needs of the
user and be relevant to him. Because irrelevant information
always waste a lot of managers time.
Thanks!