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MIS (Management

Information System)

What is MIS?
 Right Information
 To the right person
 At the right place
 At the right time
 In the right form
 At the right cost

What is MIS?
The three sub-components
Management, Information and System
 System emphasizing a fair degree of
integration ;
 Information stressing on processed data
in the context in which it is used by end
users;
 Management focusing on the ultimate
use of such information systems for
managerial decision making.

What is MIS?  MIS refers broadly to a computer-based system that provides managers with the tools for organizing. and strategic decisions. .  Organized approach to the study of information needs of a management at every level in making operational. evaluating and efficiently running their departments. tactical.

. and timely manner. processes. Its objective is to design and implement man-machine procedures. consistent. and routines that provide suitably detailed reports in an accurate.

Classification of management in MIS (hierarchy) .

It lays down the broad policies and goals of the organization.  .ordination function.Top Management (Strategic decisions)    Authority mainly lies with  this level of management.  It is also answerable to the shareholders for   functioning of the organization.    The top level management generally performs planning and co.

   The General Manager. .Top Management (Strategic decisions)    The middle level managers are also appointed by the top level management. Chief Executive. Managing Director. Board of Directors all belong to this category.

   It implements the organizational goals and plans according to the directions of the top management.   .   The middle level management generally performs organizing and directing functions.Middle level Management (tactical  The Middledecisions) level management is answerable to the top level  management  for functioning of their departments.

Middle level Management (tactical decisions)  They act as mediator between top and lower level management by clarifying and explaining policies from top to lower level.  Also the middle level has to communicate significant data and reports from lower level to the top level management. .

It even has to train the low level managers.Middle level Management (tactical decisions)  It also boosts the lower level managers for better performance. .  The departmental heads and the branch heads belong to this category of management.

all belong to this category of management .superintendents .Lower  level Management (operational decisions)    They generally have to personally oversee and direct the lower level employees.   They train and boost up the workers. supervisors .  The foremen.   They look after the problems and grievances of the workers and try to solve them.   This level of management generally performs directing and controlling functions.etc.

MIS functions Collect Data Store And Process Data Present information to managers .

.  Store and process data: After creation of data a data base must be stored and processed in a form useful to managers.MIS functions  Collect data: The first function of an MIS to determine the information needed to make decisions and to organize it into a data base.

 Present information to managers: The last step is to present information to managers for their use. .

Characteristics of MIS .

e.  The MIS is such that it serves all the levels of management in an organization i. mission and goal of the business organization. middle and lower level.Management-oriented  The basic objective of MIS is to provide information support to the management in the organization for decision making.  An effective MIS starts its journey from appraisal of management needs. top. .

. review and implementation stages so that effective system should be the end product of the whole exercise in making an effective MIS.Management directed:  MIS should be directed by the management because it is the management who tells their needs and requirements more effectively than anybody else.  Manager should guide the MIS professionals not only at the stage of planning but also on development.

 Development of information must be integrated so that all the operational and functional information sub systems should be worked together as a single entity.Integrated  It means a comprehensive or complete view of all the sub systems in the organization of a company. .  Integration is necessary because it leads to retrieval of more meaningful and useful information.

.Common data flows:  The integration of different sub systems will lead to a common data flow which will further help in avoiding duplicacy and redundancy in data collection. storage and processing.  Common data flow tries to utilize minimum data processing effort.

.Heavy planning-element:  the system expert has to keep 2 things in mind  one is that he has to keep future objectives as well as the firm’s information well in advance  and also he has to keep in mind that his MIS will not be obsolete before it gets into action.

Sub System concept:   MIS is viewed as a single entity but for its effective use. Priorities will be set and phase of implementation will be made easy. it should be kept in mind that the subsystems should be easily manageable. While making or breaking down the whole MIS into subsystems. it should be broken down in small parts or subsystems so that more attention and insight is paid to each sub system. .

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 Common database means a “Super file or Master file” which consolidates and integrates data records previously stored in many separate data files. deletion and protection.Common database:  It avoids duplication of files and storage which leads to reduction in costs. updating. .  The organization of the database allows it to be accessed by each subsystem and thus. eliminates the necessity of duplication in data storage.

.Computerized  The use of computers increases the effectiveness and the efficiency of the system.  The other benefits are accuracy. storage capacity and timely information.  The queries can be handled more quickly and efficiently with the computerized MIS.

.User friendly/Flexibility:  MIS has been designed flexible enough to accommodate new requirements.  MIS should be such that it should be used independently by the end user so that they do not depend on the experts.

Structure of MIS .

programmable decision  When a decision can be programmed. a flowchart. an organization can prepare a decision rule or a decision procedure. a decision table. or a formula. .  This can be expressed as a set of steps to follow.MIS for decision making  Structured.  The decision procedure will also specify the information to be acquired before the decision rules are applied.

 For instance the hiring of new IT specialists in a firm. validation procedure to check the input. processing of the input using decision logic and output of the programmed decision in a form that is useful for action.  The process of structured decision making includes entering the required input data. . Since structured programmable decisions can be pre specified.

non programmable decisions  The unstructured decision has no pre-established decision procedure  The support requirements for an unstructured decision making include access to data and a variety of analysis & decision procedures. Unstructured. .

. dealing with a labor strike in a factory. The data requirements are not completely known in advance hence data retrieval must allow adhoc retrieval requests.  For instance.

MIS Structure based on  Management activity  Classification of management in MIS (hierarchy) .

. customer. etc.  Operational activities include hiring and training of sales force. promotion order.MIS structure based on Organizational functions:  Sales & Marketing –  The transactions involved in this subsystem are Sales order. day to day scheduling of sales and promotion effort. periodic analysis of sales volume by region. product. etc.

 Managerial control concerns comparison of overall performance against planned.  Strategic planning involves new markets and marketing strategies. .

assembly order. .  Operational control requires reports comparing actual performance to the production schedule. Production –  It includes planning. scrap tickets. finished parts tickets. scheduling and operation of production facility. Transactions include production order. employment and training of production personnel. quality control and inspection.

.  Strategic planning includes alternative manufacturing approach and approach to automation. Management control requires summary report comparing oval planned performance to standard performance.

shipping and orders. policies. shipment. . Tickets for inventory. Logistics –  Transaction process includes purchase.  Strategic planning involves analysis of new distribution strategy.  Operational control includes past-due purchases. out of stock items. etc. manufacturing and receiving report.

stock transfer. payment vouchers. long run strategies to ensure adequate financing.  Operations include exception reports. etc. .  Managerial control utilizes information on budget vs. records of processing delays and reports of unprocessed transactions. sales. ledgers. Finance & Accounting –  Transaction involves credit applications.  Strategic planning includes accounting policies for minimizing tax impact. checks. actual costs of financial resources and processing accounting data.