_____________________________________________________________________

Chapter 1
Introduction to Management Information System (MIS)

Contents

 Learning Objectives

 Introduction

 Definition and Importance of MIS

 Subsystems of MIS

 Types of information system

 The Evolution and Characteristics of the Information Age

 What Is Information Technology?

 The Emergence of Information Technology as a Strategic Issue

 The Career Side of Information Technology

 Summary

 Review Questions

1.1. Learning Objectives

After reading this unit, you should be able to:

 Describe the evolution of MIS.

 Identify the main features of a Management Information System

 Enumerate the development of MIS and its present status in the

organizations.

 Explain the types of Information systems.

 Appreciate the importance of IT for organizations.

 Explain the Career Side of Information Technology

1.2. Introduction

Since 1950s, computers have been used to perform common business applications in
the developed countries. However, the usage of computer for keeping track of
transactional data in organizations in Ethiopia is a recent phenomenon. An
_____________________________________________________________________
1
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

organization employs a large number of clerks to record business transactions. A

transaction is any business-related exchange such as payment to employees, sales to
customer, purchase order placed to a vendor, payment received from a customer, etc.

With the help of computers, organizations automated the process expecting to reduce
errors and cost. The very first application of computers in business was to create a
transaction processing system (TPS). A TPS is an organized collection of people,
procedures, software, databases and devices used to record business transactions. The
initial TPS were used for automating payroll systems. The input to the payroll
transaction processing system is the hourly pay rate and number of hours worked.
These systems also calculated income tax for each employee and generated reports for
tax collecting body. The benefits provided by an effective transaction processing
system are tangible and can be quantified. They speed up the processing of business
activities and reduce clerical costs. The scope of TPS widened in due course of time
to include all aspect of accounting and financial transactions.

The TPS provided no help to the managers and decision makers. The Management
Information System (MIS) were then built to provide routine information to managers
and decision makers.

MIS uses organization’s transaction processing system and prevents different view of
this data to different people. The sales managers would be interested in sales data and
accounts officer would be interested in accounts receivable and payable data. In
1960s, the organizations realized the potential of MIS and started funding MIS
projects. MIS produced routine reports, demand reports and exception report.

In 1980s, the personal computers made computing facilities within reach of small
organizations as well. People at each level started using personal computers to do a
variety of tasks. Decision makers started using the information held by computers.
The decision making process was further supported by decision support systems
(DSS). A decision support system is an organized collection of people, procedures,
software, databases and devices to support problem – specific decision-making.

Information systems have been evolving ever since. Workflow Systems, Enterprise
Resource Planning systems, and expert systems have been built to assist managers in
the process of decision-making. One thing is very clear that none of these systems
were a substitute for the manager they only assist the managers.

1.3. Definition and Importance of MIS

The subject of management information system (MIS) has different meaning for
different people. The concept of MIS has evolved over a period of last two decades or
so. The initial management information systems were built to process transactional
data of an organization and to produce regular reports. The reports were not targeted
and individuals picked the required data from the report. The information systems
evolved further and produced different reports according to requirements. Instead of
user looking through the report for required data, the system generated a report in a
suitable format that created an impact on its user and provoked an action, a decision
or an investigation. Today, an information system has evolved to the stage where they
handle databases and facilitate decision-making.

_____________________________________________________________________
2
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

Accordingly, definition of MIS has also evolved. There are many closely related
definitions in use. The terms MIS is synonymously used with terms the Information
System (IS), the Information and Decision System and the Computer based
Information System.

MIS is defined as an integrated system of man and machine for providing the
information to support the operations, the management, and the decision-
making functions in organizations.

Management information system: It is a collection of people, procedures,

software, hardware and databases designed to generate information for
managers.

An MIS deals with information that is systematically and routinely collected in

accordance with a well-defined set of rules. In other words, data collection is a
planned activity for which resources are allocated and rules are defined.

The information provided by an MIS assists managers in planning, organizing,

staffing, coordinating, directing and controlling the operations of an organization. The
management experts have viewed these steps as Management Control system.

In any organization that has planned activities leading to the achievement of the stated
goals, there is always a control process in place that measures progress towards these
goals and enables the manager to deduct the deviations from the original plan in time.
It is the responsibility of the management to take corrective actions before it is too
late. The deviations may be due to environmental changes or due to the mistakes
made by people. An MIS is concerned with planning and control. An MIS has large
amount of data as its integral part that is stored and managed by a data base
management system.

An MIS must have the following features:

1) It must be capable of handling voluminous data. The data as well as

transactions must be validated.

2) It must be able to perform operations on the data irrespective of the

complexity of the operations. Often time multi-dimensional analysis is
required. As MIS can’t be developed without making use of the various
theories, principles, formulae, So MIS is viewed as Multi-Disciplinary
Subject.

3) An MIS should facilitate quick search and retrieval of information. An MIS

must support mass storage of data and information.

4) The information must be communicated to the recipient in time. Moreover, the

communicated information must be relevant.

5) Because of the integration concepts of MIS, there is an opportunity to avoid

duplication and redundancy in data gathering, storage and dissemination.

_____________________________________________________________________
3
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

MIS must be "useable." The five elements of a useable MIS system are: timeliness,
accuracy, consistency, completeness, and relevance. The usefulness of MIS is
hindered whenever one or more of these elements are compromised.

Timeliness

To simplify prompt decision making, MIS should be capable of providing and

distributing current information to appropriate users. Information systems should be
designed to expedite reporting of information. The system should be able to quickly
collect and edit data, summarize results, and be able to adjust and correct errors
promptly.

Accuracy

A sound system of automated and manual internal controls must exist throughout all
information systems processing activities. Information should receive appropriate
editing, balancing, and internal control checks. A comprehensive internal and external
audit program should be employed to ensure the adequacy of internal controls.

Consistency

To be reliable, data should be processed and compiled consistently and uniformly.

Variations in how data is collected and reported can distort information and trend
analysis. In addition, because data collection and reporting processes will change over
time, management must establish sound procedures to allow for systems changes.
These procedures should be well defined and documented, clearly communicated to
appropriate employees, and should include an effective monitoring system.

Completeness

Decision makers need complete and pertinent information in a summarized form.

Reports should be designed to eliminate clutter and voluminous detail, thereby
avoiding "information overload."

Relevance

Information provided to management must be relevant. Information that is

inappropriate, unnecessary, or too detailed for effective decision making has no value.
MIS must be appropriate to support the management level using it. The relevance and
level of detail provided through MIS systems directly correlate to what is needed by
the board of directors, executive management, departmental or area mid-level
managers, etc. in the performance of their jobs.

Information adds to relevant Knowledge, reduces uncertainty, and supports the

decision making process in an organization. However, to be useful information must
have the above mentioned attributes.

Activity A
Can you think about MIS without computers? Give good reason for your answer.
..............................................................................................................................
..............................................................................................................................
..............................................................................................................................
_____________________________________________________________________
4
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

1.4. Subsystems of MIS

MIS is viewed as a federation of sub-system, developed, & implemented as needed

but conforming to an overall plan. For example, each organization will consist of sub-
systems like production, inventory, finance, marketing etc. There could be functional
sub systems as well as activity subsystems.

The two approaches to defining the subsystems of MIS are according to the
organizational functions which they support and according to the managerial activities
for which they are used.

A). Organizational functions subsystems

Because organizational functions are somewhat separable in terms of activities and

are defined managerially as separate responsibilities, MIS may be viewed as a
federation of information system-one for each major organizational function. There
may be common support systems used by more than one subsystem, but each
functional system is unique in its procedures, programs, models, etc.,

Table 1.1 Typical MIS subsystems for a business organization are:

Major functional subsystem Some typical uses

Marketing information Sales forecasting, sales planning, customer and sales

analysis

Personnel information Planning personnel requirements, analyzing

performance, salary administration

Operation information Production planning and scheduling, cost control

analysis

Finance information Financial analysis, cost analysis, capital requirements

planning

B). Organizational Activities Subsystem

Another approach to understanding the structure of an information system is in terms

of the activities subsystems which are performed by various levels of management.
An organization must respond to market forces, competition, to socio-cultural
environment and to technological changes. The scope of business is wide, touching
many fronts. A business, among other activities, must do a long-term strategic
planning management/tactical control and operational control.

 Strategic Planning is the process of deciding objectives of the organization,

determining the possible shift in objectives, deciding on the resources used to
attain the objectives and the policies that govern the acquisition, use and
disposition of the resources.

_____________________________________________________________________
5
University of Gondar, Department of Management
Addisu Adem
 _____________________________________________________________________

 Management Control is the process by which managers assure that the

resources are obtained and used effectively and efficiently to attain the
objectives of the organization.

 Operational Control is the process of assuming that specific tasks are carried
out effectively and efficiently.

The activities subsystems are useful for various functional subsystems. The
relationship of activities subsystems to functional subsystems is illustrated in the
following table 1.2.Table
Function Operations Tactics Strategy
\Activity
Production • Machine settings • Rearrange work area • New factory
• Worker schedules • Schedule new products • New products
• Maintenance sch. • Change inventory method • New industry
Finance • Categorize assets • Inventory valuation • New GL system
• Assign expenses • Depreciation method • Debt vs. equity
• Produce reports • Finance short/long term • International taxes
Marketing • Reward salespeople • Determine pricing • Monitor competitors
• Survey customers • Promotional campaigns • New products
• Monitor promotions • Select marketing media • New markets

Information systems are used in all functional areas and operating divisions of
business. The database is the primary means of integration of the various subsystems.
A data item that is stored or updated by one subsystem is then available to the other
subsystems.

Some examples of Inputs, process and outputs of MIS at all levels of management.

Inputs Process Outputs

Strategic National Plans, competitors Summarize, Key ratios, ad hoc

information, overall market market analysis,
information Investigate, strategic plans

Compare, Forecast

Tactical Historical, & budget data Compare Variance analysis

Classify, summarize Exception report

Operational Customer orders, Update files Updated files

programmed stock control
levels, cash Output reports listings, invoices
receipts/payments
Rearranging

Calculating

Integration of information subsystems provide more meaningful management

information.

_____________________________________________________________________
6
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

1.5. Types of Information System

Activity B
Can you think of some examples of an Information System in a business?
.............................................................................................................................
.............................................................................................................................
.............................................................................................................................
.............................................................................................................................
.............................................................................................................................

There are various types of information systems in a business as listed below.

Transaction Processing Systems (TPS)

A TPS is used primarily for record keeping which is required in any organization to
conduct the business. Examples of TPS are sales order entry, payroll, and shipping
records etc. TPS is used for periodic report generation in a scheduled manner. TPS is
also used for producing reports on demand as well as exception reports.

Decision Support System (DSS)

DSS serves the management of an organization. A decision support system has

sophisticated data analysis tools, which support and assist all aspects of problem
specific decision-making. DSS may use data from external sources such as current
stock prices to enhance decision-making. DSS is used when the problem is complex
and the information needed to make the best decision is difficult to obtain and use.
DSS is developed with the help of decision makers. DSS helps in decision-making
process and does not make any decision.

Executive Information System (EIS)

An Executive Information System is also called Executive Support System. Senior

managers of an organization use the EIS. Therefore, it must be easy to use so that
executives can use it without any assistance. EIS can do trend analysis, exception
reporting and have drill down capabilities. The results are usually presented in a
graphical form tailored to executive’s information needs. EIS has on-line analysis
tools and they access a broad range of internal and external data.

Management Information Systems (MIS)

MIS provides the management routine summary of basic operations of the

organization. The basic operations are recorded by the TPS of the organization and
MIS consolidates the data on sales, production etc. MIS provides routine information
to managers and decision makers. The main objective behind installing an MIS in the
_____________________________________________________________________
7
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

organization is to increase operational efficiency. MIS may support marketing,

production, finance etc.

Work Flow System

A workflow system is a rule based management system that directs, coordinates, and
monitors execution of an interrelated set of tasks arranged to form a business process.
A workflow system is also known as a document image management system. For
example, a workflow system is used by banks for loan sanction process. An applicant
fills out an electronic application form for a bank loan at a bank’s web site. The
application is then upload to the bank loan officer’s site. The loan officer conducts an
interview and fills in his feedback and passes the application form to the credit check
unit. The credit unit checks the credit limit and fills in the details. The application is
now complete and a final decision is made.

There are three types of workflow software. Administrative workflow systems focus
on the tracking of expense reports, travel requests, massages. An Ad-hoc workflow
system deals with the shaping of product, sales proposals, and strategic plans.
Production workflow systems are concerned with mortgage loans and insurance
claims. A workflow system may be Internet based and may be combined with e-mail.
A workflow system may be based on client/sever architecture that may use a
database/file server.

Enterprise Resource Planning (ERP)

ERP system is a set of integrated programs capable of managing a company’s vital

business operations for an entire multi-site, global organization.

Expert Systems

The system has the ability to make suggestions and act like an expert in a particular
field. An expert system has an extensive knowledge base.

1.6. The Evolution and Characteristics of the Information Age

As far as history of computing is concerned, people tried to invent a computing

machine as early as 800 BC. Abacus is one of the oldest computing devices that are
still in use. Every child in China learns to use abacus in school. Our ancestors had
built various other mechanical machines using gears. All these efforts laid foundation
for better computing machines. The diode tubes, transistors, integrated circuits (ICs)
and now very large integrated circuits (VLSI) are the electro-mechanical devices that
have been invented over a period of time. The technology has improved since World
War II many folds. The improved technology has been the key factor in making better
computing devices. Along with improvement in computing technology, the
communication technology has also improved in parallel. The software also improved
and became user friendly. The spreadsheets, the word processing packages, database
packages, simulation software packages, and decision support systems made IT
popular among managers as well. The terms Information Systems (IS) and
Information Technology (IT) are used synonymously. IS has evolved considerably
since 1960.

_____________________________________________________________________
8
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

Short summary of the Evolution of Computer Based Information Systems

 Data Processing (DP) during the first half the twentieth century

 Management Information Systems (MIS) 1964

 The MIS concept recognized that computer applications should be

implemented for the primary purpose of producing management
information.

 MIS come to play a much larger role in the organizational life, as

compared to the 1950’s. It has moved into managerial control and further
into influencing the “core” institutional activities.

 Decision Support Systems (DSS) 1971

 A DSS is an information-producing system aimed at a particular problem

that a manager must solve and at decisions that the manager must make.

 Notes distinction: MIS: Organizational/group - general

DSS: Individual - specific

 Office Automation (OA) 1964

 Facilitates communication

 Increases productivity among managers and office workers through the use
of electronic devices.

 Includes a variety of applications such as video conferencing, voice mail,

electronic mail, desktop publishing...etc.

 Artificial Intelligence (AI)/ Expert Systems (ES) - 1990s

 AI is an application that enables the computer system to perform some of

the same logical reasoning tasks as humans.

 An expert system is a special subclass of AI that functions as a specialist in

a certain field. For example, it can provide management consultancy.

 Limitation of ES: It doesn’t improve its intelligence over time. One way to
overcome this limitation is to use neural networks, electronic and
mathematical analogs of the human brain.

1.7. What Is Information Technology?

_____________________________________________________________________
9
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

An Information System/ Information Technology is an arrangement of people,

data, processes, interfaces, networks and technology that interact for the purpose of
supporting & improving both day-to-day operations in a business (sometimes called
data processing) as well as supporting the problem solving and decision making
needs of management (sometimes called information services).

Information Technology (IT) has become a strategic necessity. Unless we believe in

IT and act on it, there is every chance of becoming a footnote in the annals of history.
IT has become a vital component of successful businesses and organizations.
Managers are expected to identify opportunities to implement information systems to
improve the business processes. Managers are also required to lead IS projects in IT.
Information Technology has become a major facilitator of business activities. It is
also a catalyst of fundamental changes in the structure, operations and management of
organizations.

IT can be used to:

1. Perform high-speed, high-volume, numeric computations.

2. Provide fast, accurate and inexpensive communication within and between

organizations.

3. Store huge amounts of data in an easy-to-access yet small space and allow
quick and easy access.

4. Automate semiautomatic business processes and manually done tasks.

IT has been used for improving productivity, reducing cost, enhancing decision
making process, enhancing customer relationships, and developing new strategic
applications. The business paradigm has completely shifted from being sellers market
to buyers market. Customers have become the focal point of any business. The
business environment is no more as stable as it used to be and has become much more
competitive. It became mandatory on the part of the organizations to make full use of
IT to survive. IT has become one of the standard components of an organization.

The individuals are supported by IT to fulfill their roles. The management and the
business processes have become IT oriented. Organization structure and strategy are
also supported by IT. Whenever an external or internal pressure is felt by an
organization, IT helps the organization to plan critical response activities. The
changed government policy may create a pressure on an organization. But such a
pressure is distributed over a long period as government gives enough time to
organizations to respond to changed policies. But if there is a change in the behavior
of consumers, the organization should be able to identify the change. Moreover, they
should be able to come up with a solution fast. IT helps an organization to anticipate

_____________________________________________________________________
10
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

and stay ahead of problems. The organization can take proactive measures rather than
firefighting measures.

An organization can use an IT supported strategic system to increase their market

share. IT can help an organization negotiate better with their suppliers. Maintaining
and improving quality of products and processes in an organization needs regular
support, vigilance, and innovation. IT has been used extensively for productivity
improvement, reducing inventory and maintaining quality. Management Information
System (MIS) and decision support system (DSS) have been used to help
management in decision-making process.

Case Example-1: Application and importance of IT

HIV case management utilizing information systems.

Moreno S, Jockush J, Emanuele T, Karpf K; International Conference on AIDS.

Int Conf AIDS. 1989 Jun 4-9; 5: 1050 (abstract no. W.H.P.7).

Parkland Memorial Hospital, Dallas, Tx., USA

OBJECTIVE: To provide a Human Immunodeficiency Virus (HIV) case

management system utilizing personal computers (PC) in the healthcare setting.
METHOD: Parkland Memorial Hospital (PMH) is the largest medical provider for
HIV infected patients in Dallas County, Tx., with an active caseload of 588 patients
out of 1523 total. There are three major components to the data collection
system: clinical, accounting and AIDS Registry. The AIDS clinic utilizes 5 AT-class
PC's in a local area network to maintain clinical and research data. The Medical
Records Department maintains data on a single AT-class PC on all HIV related
hospitalizations. The Hospital Information System Department utilizes its
mainframe computer to report HIV related data at the incident of service level
(demographics, charges and collections). RESULTS: The clinic database measures
and monitors patient data to enhance treatment, quality assurance and research.
It also serves as a mini-medical record providing immediate access to data for
telephone consults and interfaces with community healthcare providers.
Networking between healthcare facilities/organizations to track total service
utilization by one patient.

CONCLUSION: Achievement of quality case management through an enhanced

information component. Total cost reduction through data analysis/trending of
costs, clinical treatments and collection of epidemiological information. This
system is utilized by Administration, Nursing Management, Clinicians, Quality
Assurance, Infection Control, Business services and Public Relations.

Source: http://www.nih.gov/ Downloaded on May 5, 2010

(U.S. National Institutes of Health)

Business process reengineering (BPR) has become the need to the day for every
business; BPR involves changing business processes in an innovative way. IT plays a
_____________________________________________________________________
11
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

major role in BPR. Internet and Intranet help an organization in changing its business
processes to reduce cycle time and time to market a product. IT makes information
available to employees with different level of access. As a result, employees can be
given more independence to make decisions. The ERP, a strategic tool, heavily uses
IT to integrate business processes of an organization.

1.8. The Emergence of Information Technology as a Strategic Issue

Although information systems of some form or another have been around since the
beginning of time, information technology (IT) is a relative newcomer to the scene.
The facilities provided by such technology have had a major impact on individuals,
organizations and society. There are few companies that can afford the luxury of
ignoring IT and few individuals who would prefer to be without it . . . despite its
occasional frustrations and the fears it sometimes invokes. An organization may
regard IT as a ‘necessary evil’, something that is needed in order to stay in business,
while others may see it as a major source of strategic opportunity, seeking proactively
to identify how IT-based information systems can help them gain a competitive edge.
Regardless of the stance taken, once an organization embarks on an investment of this
kind there is little opportunity for turning back.

As IT has become more powerful and relatively cheaper, its use has spread throughout
organizations at a rapid rate. Different levels in the management hierarchy are now
using IT where once its sole domain was at the operational level. The aim now is not
only to improve efficiency but also to improve business effectiveness and to manage
organizations more strategically. As the managerial tasks become more complex, so
the nature of the required information systems (IS) changes – from structured,
reutilized support to ad hoc, unstructured, complex enquiries at the highest levels of
management.

IT, however, not only has the potential to change the way an organization works but
also the very nature of its business. Through the use of IT to support the introduction
of electronic markets, buying and selling can be carried out in a fraction of the time,
disrupting the conventional marketing and distribution channels (Malone et al., 1989;
Holland, 1998). Electronic data interchange (EDI) not only speeds up transactions but
allows subscribers to be confident in the accuracy of information being received from
suppliers/buyers and to reap the benefits of cost reductions through automated
reordering processes. On a more strategic level, information may be passed from an
organization to its suppliers or customers in order to gain or provide a better service
(Cash, 1985). Providing a better service to its customers than its competitors may
provide the differentiation required to stay ahead of the competition in the short term.
Continual improvements to the service may enable the organization to gain a longer-
term advantage and remain ahead.

The rapid change in IT causes an already uncertain business environment to be even

more unpredictable. Organizations’ ability to identify the relevant information needed
to make important decisions is crucial, since the access to data used to generate
information for decision making is no longer restricted by the manual systems of the
organization. IT can record, synthesize, analyze and disseminate information quicker
than at any other time in history. Data can be collected from different parts of the
company and its external environment and brought together to provide relevant,
_____________________________________________________________________
12
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

timely, concise and precise information at all levels of the organization to help it
become more efficient, effective and competitive.

Information can now be delivered to the right people at the right time, thus enabling
well informed decisions to be made. Previously, due to the limited information-
gathering capability of organizations, decision makers could seldom rely on up-to-
date information but instead made important decisions based on past results and their
own experience. This no longer needs to be the case. With the right technology in
place to collect the necessary data automatically, up-to-date information can be
accessed whenever the need arises. This is the information quality of IT about which
Zuboff (1988) writes so eloquently.

With the use of IT, as with most things, comes the possibility of abuse. Data integrity
and security is of prime importance to ensure validity and privacy of the information
being held. Managing the information involves identifying what should be kept, how
it should be organized, where it should be held and who should have access to it. The
quality of this management will dictate the quality of the decisions being taken and
ultimately the organization’s survival. With the growth in the usage of IT to support
information provision within organizations, the political nature of information has
come into sharper focus. Gatekeepers of information are powerful people; they can
decide when and if to convey vital information, and to whom. They are likely to be
either highly respected, or despised for the power that they have at their fingertips.

Such gatekeepers have traditionally been middle managers in organizations. Their

role has been to facilitate the flow of information between higher and lower levels of
management. With the introduction of IT such information can now be readily
accessed by those who need it (if the right IT infrastructure is in place) at any time. It
is not surprising then that there is resistance to the introduction of IT when it has the
potential of changing the balance of power within organizations. Unless the loss in
power, through the freeing up of information, is substituted by something of equal or
more value to the individuals concerned then IT implementations may well be subject
to considerable obstruction.

Developments in IT have caused revolutionary changes not only for individual

organizations but for society in general. In order to understand the situation we now
find ourselves in with respect to IT, it is as well to reflect on their developments.

1.9. The Career Side of Information Technology

Information Technology means the collection, storage, processing, dissemination,

and use of Information. IT is not confined to hardware and software but acknowledges
the importance of man and the goals he sets for his technology, the values employed
in making these choices, the assessment criteria used to decide whether he is
controlling the technology and is being enriched by it.

The above definition clearly states that IT is an important tool, which must be used
properly. At one time, 60% people used to work in agriculture. Nowadays, in a
developed country, about 10% people work in agriculture and 40% people work in
information related fields. In a developed country such as US, 50% households have

_____________________________________________________________________
13
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

computers and Internet connection. In India, only about 8 people out of every 1000
have access to computers. Ethiopia is presently showing progress in usage of IT.

Both Information and the myriad of information systems it supports have created
interesting, challenging, and lucrative career opportunities for millions of men and
women all over the globe. For example: 55% of US labor force consists of knowledge
and information workers and 60% the gross domestic product comes from the
Knowledge and information sectors. Present days, the major source of wealth and
prosperity is the production and distribution of information and knowledge. Firms
increasingly relay on digital technology to enable business processes.

Employment opportunities in the information systems field are strong with more new
and exiting jobs emerging each day as organizations continue to expand their wide-
scale use of information technology. In addition, these new jobs pose constant human
resource management challenges to all organizations since there are frequent
shortages of qualified information systems personnel. The constantly changing job
requirements in information systems due to the dynamic developments in business
and information technologies will ensure that the long term job outlook in IT remains
both positive and exciting.

Job Changes 2000-2010 (growth)

Fastest growing occupations

S o ftwa re e ngine e rs , a pplic a tio ns 100%

C o m pute r s uppo rt 97%
S o ftwa re e ngine e rs , s ys te m s 90%
S ys te m s a dm inis tra to rs 82%
Ne two rk a na lys ts 77%
De s kto p publis he rs 66%
Da ta ba s e a dm inis tra to rs 66%
P e rs o na l a nd ho m e c a re a ide s 62%
S ys te m s a na lys ts 60%
M e dic a l a s s is ta nts 57%

0% 20% 40% 60% 80% 100% 120%

Source:http://www.bls.gov/news.release/ecopro.t06.htmDownloaded on May 15, 2010

One major recruiter is the IT industry itself. Thousands of companies develop,

manufacture, market, and service computer hardware, software, data, and network
products and services, or provide e-business and commerce applications and services,
end user training, or business systems consulting. However, the biggest need for
qualified people comes from the millions of businesses, government agencies, and
other organizations that use information technology. They need many types of IS
professionals such as systems analysts, software developers, and network managers to
help them plan, develop, implement, and manage today's internet-based and web-
enabled business/IT applications.

_____________________________________________________________________
14
University of Gondar, Department of Management
Addisu Adem
_____________________________________________________________________

1.10. Summary

The objective of an MIS is to provide information for decision making on planning,

initiating, organizing, and controlling the operations of the subsystems of the firm and
to provide a synergetic organization in the process. Information systems have been
evolving ever since. Workflow Systems, Enterprise Resource Planning systems, and
expert systems have been built to assist managers in the process of decision-making.
At present, companies that anticipate/understand the power of information will be in
control of event. Companies that do not respond will be forced to accept changes that
others initiate and will find themselves at a competitive disadvantage.

1.10. Review Questions

1. Define a management information system and list its importance?

2. Describe how information system can support a business?

3. Define MIS. Describe the functions that MIS supports in an organisation.

4. Describe various types of Information Systems.

5. Write a brief note to explain the evolution of MIS?

6. What is the purpose of a TPS? How does it compliment MIS in an

organization?

7. Discuss some characteristics that must be possessed b y a usable MIS?

_____________________________________________________________________
15
University of Gondar, Department of Management
Addisu Adem