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Management of Information System? A management information system, or MIS, is a computer-based system that optimizes the collection, transfer, and presentation of information throughout an organization by using an integrated structure of databases and information flow. A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. An MIS has been called a method, a function, an approach, a process, an organization, a system, and a subsystem. MIS Elements • Management Functions o Planning o Controlling o Decision Making Information System Management Information
STEPS IN PLANNING 1. 2. 3. 4. 5. Selecting objectives Identifying activities required to achieve the stipulated objectives Describing the resources or skills, or both, necessary to perform the activities Defining the duration of each activity to be undertaken Determining the sequence of the activities
The MIS versus the Data Processing System Data processing systems, or DP systems, are concerned with transaction handling and record-keeping, usually for a particular functional area. Here are a few differences between an MIS and a DP system: 1. The integrated database of an MIS enables greater flexibility in meeting the information needs of management. 2. An MIS integrates the information flow between functional areas (accounting, marketing, inventory management, etc.), whereas DP systems tend to support a single functional area.
An MIS can boost system security by limiting access to authorized personnel. Within the past twenty-five years the idea of managerial roles has become more popular. Main Types of Resources The manager manages five main types of resources: • • • • • Personnel Material Machines (including facilities and energy) Money Information (including data) What Managers Do Despite the obvious differences that exist between management levels and between functional areas. although perhaps with varying emphasis. tactical-. Management's information needs are supported on a timelier basis with an MIS than they are with a DP system. for example. around 1914. regardless of their level or functions area.3. Finally. all managers perform the same functions and play the same roles. they staff their organization with the necessary resources. An MIS caters to the information needs of all levels of management. 2. structured information. for the most. First. An MIS. Managerial Roles. managers plan what they are to do. An MIS is somewhat flexible and can be adapted to meet the changing information needs of the organization. • Management Functions. Then. they organize to meet the plan. An MIS provides operational-. a professor at McGill University in Canada. Characteristics of Management Information Systems These are desirable characteristics of an MIS: 1. decide the Fayol's functions did not tell the whole story. Early in this century. has online inquiry capability for the immediate generation of reports. An MIS supports transaction handling and record keeping. He developed . With the resources in place. whereas DP systems focus on the clerical and operational levels. Henry Mintzberg. 5. All managers. 3. Next. whereas a DP system usually produces only scheduled reports. An MIS uses an integrated database and supports a variety of functional areas. 4. they direct them to execute the plan. perform these functions to some degree. and strategic-level managers with easy access to timely but. the French management theorist Henri Fayol recognized that managers perform five major management functions. they control the resources keeping them on course. 4.
Ideally. In fact. where that information can be obtained. and how to share information with others. • • MANAGEMENT KNOWLEDGE The term literacy has been used to describe two types of knowledge that are the key to use the computer. information literacy is more important. a manager should be both information literate and computer literate. Written communications include reports. The knowledge of the computer that is necessary to function in today's world is called computer literacy. while using the telephone and voice mail. • • . Information literacy is not dependent on computer literacy. as well as with persons outside the firm. informational and decisional activities. if one had to choose. and so on. A manager can be information literate but not computer literate. a recognition of the strengths and weaknesses of the computer. They also solve problems by making changes to the firm's operations so that the firm can achieve its objectives. their superiors. electronic mail. We define problem solving as all of the activities that lead to the solution of a problem. In addition to understanding the computer. but two stand out as being basic . Communication Skills. the modern manager should have information literacy. This knowledge includes an understanding of computer terminology. when taking tours of facilities. involving interpersonal.communication and problem solving. One kind of knowledge is computer literacy. • Computer Literacy. Problem-Solving Skills. Information Literacy. Managers receive and transmit information in both written and oral forms. Information literacy consists of understanding how to use information at each step of the problem-solving process. memos. and periodicals. the other is information literacy. an ability to use the computer (although not necessarily being a programmers). Management Skills • A successful manager should possess many skills.a more detailed framework consisting of ten managerial roles that managers play. however. other persons in other units of the firm. letter. and during business meals and social activities. Managers communicate with their subordinates. Oral communications occur during meetings.
It must be within the sphere of his/her activities so that it can be used to reduce uncertainty in his/her decision making. Some people prefer tabular information. Also the use of colors enhances the understandability of what is presented. The name given to these early computer-based accounting applications was electronic data processing (EDP). Too much detail causes information overload. We don't always need 100% accurate information so long as we know the degree of accuracy it represents (eg: + or . The term EDP is no longer popular.Characteristics of Information Timeliness: Information must reach the user in a timely manner. This practice continued wit the first computers. Appropriateness: Information must be relevant to the person who is using it. (Remember the value of information). when punched-are and keydriven bookkeeping machines were in their heydey. having been shortened to data processing (DP).5%). just when it is needed. because by the time it is used it would be out-of-date. We use the term accounting information system (AIS) to describe the system that processes the firm's data. not too early. . The AIS produces some information as a byproduct of the accounting processes. THE EVOLUTION OF COMPUTER-BASED INFORMATION SYSTEMS The initial efforts to apply the computer in the business area focused on data. whereas others may need it in a graphical form. The Initial Focus on Data During the first half of the twentieth century. Today. firms generally ignored the information needs of managers. not too late because the user will not be able to incorporate it into his/her decision making. Then came an emphasis on information and decision support. since they were restricted to accounting applications. communication and consultation are receiving the most attention. Conciseness: Information should always contain the minimum amount of detail that is appropriate for the user. Accuracy: Accuracy costs. Understandability: The format and presentation of information are very important.
and they offered opportunities for more processing power per dollar. Some firms stuck it out. and eventually developed workable systems . But one error in particular characterized the early systems.on any level and in any functional area. The Revised Focus on Decision Support While many watched from the sidelines as firms grappled with their giant MISs. was promoted by the computer manufacturers as the justification for upgrading to new equipment. W. The MIS concept recognized that computer applications should be implemented for the primary purpose of producing management information.The New Focus on Information In 1964. A DSS is an information-producing system aimed at a particular problem that a manager could be located anywhere in the organization .although more modest in size than originally projected. Actual accomplishments seldom matched those initially envisioned. There were several reasons for this shortfall: a general lack of computer literacy among users. The concept of using the computer as a management information system. Scott Morton. Other firms decided to scrap the entire MIS idea and retreated to DP. These scientists were Michael S. Keen. and Peter G. or MIS. and their concept was named the decision support system (DSS). Anthony Gorry. some information scientists at the Massachusetts Institute of Technology (MIT) formulated a different approach. invested more resources. Firms believed they could build giant information systems to support all managers. The concept was quickly adopted by many of the larger firms. G. a new generation of computing equipment was introduced that exerted a strong influence on the manner in which computers were employed. System designs snowballed. and so on. The road traveled by these pioneers was rocky. The new computers were the first to use silicon chip circuitry. a general lack of business literacy and an ignorance of the management role on the part of information specialists. and the task became unmanageable. computing equipment that was both expensive and limited by today's standards. . They were too ambitious.
Office automation grew to include a wide variety of such applications as video conferencing.a typewriter that could type words that had been recorded on magnetic tape. whereas the DSS is intended to support a single manager in a specific way. is .For the first few years of the DSS era. whereas the DSS is intended to support a single manager in a specific way. facsimile transmission. This automatic typing operation led to the OA application that is called word processing. how? These arguments were never really settled. voice mail. The Potential Focus on Consultation There is a movement presently under way to apply artificial intelligence (AI) to business problems. OA facilitates communication and increases productivity among managers and office workers through the use of electronic devices. expert systems. but the issue does not seem to be as critical today as it once was. The basic idea of AI is that the computer can be programmed to perform some of the same logical reasoning tasks as a human. electronic mail. The MIS is intended to provide problem-solving information to a group of managers in a general way. there was a considerable argument concerning DSS and MIS.office automation (OA). interest was also focused on another computer application . A special class of AI. OA got its start in 1964. when IBM announced its Magnetic Tape/Electric Typewriter (MT/ST) . We use the term virtual office to describe all of the office automation applications. and if so. and desktop publishing. electronic calendaring. We regard the management information system (MIS) as an information-producing system that supports a group of managers who represent an organizational unit such as a management level or a functional area. THE CURRENT FOCUS ON COMMUNICATION During the time that the DSS evolved. All of these applications are intended to facilitate communication. Did the DSS offer a new approach to computer use.
A way to overcome this limitation is to use neural networks that are electronic and mathematical analogs of the human brain. We use the term knowledge-based systems to represent all varieties of systems that apply artificial intelligence to problem solving. The 1990s saw selected organizations invest heavily in knowledge-based systems. . The future of knowledge-based systems remains unclear. For example. an expert system can provide some of the same assistance to a manager as would come from a management consultant. and dramatic results were reported. recent reports reveal that the accomplishments may not have been a dramatic as first thought. An expert system is one that functions as a specialist in an area.receiving the most attention. One limitation of an expert system is that it does not improve its intelligence over time. However.
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