MANAGEMENT

INFORMATION
SYSTEM
UNIT-I
EXAMPLE
COMPONENTS OF MIS
 REQUISITES OF AN EFFECTIVE MIS
(i) Qualified System and Management Staff :
 The  prerequisite  of  an  effective  MIS  is  that  it  should  be 
managed by qualified officers. 
 These  officers should  have a mutual understanding about the 
roles  and  responsibilities  of  each  other  and  be  understand 
clearly the view of their fellow officers. 
 For  this,  each  organization  should  have  two  categories  of 
officers :
(a) System and Computer Experts
      It is the one who in addition to their expertise in their subject 
area  ,  they  should  also  be  capable  of  understanding 
management  concepts  to  facilitate  the  understanding  of 
problems asked by concern. 
          They  should  also  be  clear  about  the  process  of  decision 
making and information requirements for planning.
 CONT..
 (b) Management experts who should also understand quite clearly 
the concepts and operations of a computer.
 This basic knowledge of computer will be useful will place them in a 
comfortable  position,  while  working  with  systems,  technicians  in 
designing or other wise, of the information system.
 (ii) Futuristic Perspective : An effective MIS should be capable of 
meeting the future requirements of its executives as well. 
 This capability can be achieved by regular monitoring and updating 
the MIS.
 (iii) Support of Top Management : For a management 
information system to be effective, it must receive the full support of 
top management. 
 The Reasons for this are :
 (a) Subordinate managers are usually lethargic about activities 
which do not receive the support of their superiors.
 (b) The resources involved in computer based information system 
are larger and are growing larger and larger in view of importance 
gained by management information system.
 CONT..
(iv) Common Database : 
 It is an integrated collection of data and information which is 
utilized  by  several  information  subsystems  of  an 
organization. 
 A  common database may  be  defined  as  a  super  file  which 
consolidates and integrates data records formerly stored in a 
separate data file.
  Such a database can be organized as an integrated collection 
of data records into a single super file or it can be organized 
as an integrated collection of several data file.
(v) Control and maintenance of MIS : 
 Control  of  the  MIS  means  the  operation  of  the  system  as  it 
was designed to operate. 
 Some times, users develop their own procedures or short cut 
methods to use the system which reduces its effectiveness.
MIS – SUBSYSTEMS
SUBSYSTEMS OF AN MIS
 Two approaches to define subsystem

Organisational Function Subsystem:

 Supports the various functions of an Organisation. 
 Ex. Marketing, Production, Personnel etc.

Activity Subsystem:

-Supports the activity for which they are used. 
-Ex. Transactions, Operations etc.
MIS SUBSYSTEMS
Organisational
Functions

PROCESSING

MANAGEMENT
INFORMATION
PERSONNEL
MARKETING
PRODUCTION

LOGISTICS

FINANCE

TOP
STRATEGI

ACTIVITIES
C
PLANNING
MANAGEMENT
CONTROL

OPERATIONA
L CONTROL

TRANSACTION
PROCESSING

MIS Subsystems
ORGANISATIONAL FUNCTION
SUBSYSTEMS
Major Functional Subsystems Some Uses
Marketing Information System Sales forecasting, Sales planning,
Sales analysis
Manufacturing Information System Production planning & scheduling,
cost control analysis
Personnel Information System Salary Admn., Planning HR
requirement, performance analysis

Accounting Information System Financial Analysis, cost analysis,

Logistics Information System
Information Processing System
Top Management System
Capital planning, etc.
Planning & control of Purchasing,
inventories, distribution.
Planning of Information System,
cost – effectiveness analysis
Strategic Planning, resource
allocation
ACTIVITIES SUBSYSTEMS
Activity Subsystems Some Uses

Transaction Processing System Processing of orders,

shipments, & receipts

Operational Control System Scheduling of activities and

performance reports

Management Control System Formulation of Budgets &

resource allocation

Strategic Planning System Formulation of Objectives &

strategic plan
ROLE OF MANAGEMENT INFORMATION SYSTEM
 The MIS plays exactly the same role in the
organization.
 The system ensures that an appropriate data is
collected from the various sources, processed
and send further to all the needy destinations.
 The system is expected to fulfill the
information needs of an individual, a group of
individuals, the management functionaries:
the managers and top management.
EXAMPLE

 The role of the MIS in an organization can be

compared to the role of heart in the body.
 The information is the blood and MIS is the heart.
 In the body the heart plays the role of supplying
pure blood to all the elements of the body
including the brain.
 The heart work faster and supplies more blood
when needed. It regulates and controls the
incoming impure blood, processed it and sends it
to the destination in the quantity needed.
 It fulfills the needs of blood supply to human
body in normal course and also in crisis.
Here are some of the important roles of the MIS:
 i. The MIS satisfies the diverse needs through variety
of systems such as query system, analysis system,
modeling system and decision support system.
 ii. The MIS helps in strategic planning, management
control, operational control and transaction
processing.
 The MIS helps in the clerical personal in the
transaction processing and answers the queries on the
data pertaining to the transaction, the status of a
particular record and reference on a variety of
documents.
 iii. The MIS helps the junior management personnel by
providing the operational data for planning, scheduling
and control , and helps them further in decision-
making at the operation level to correct an out of
control situation.
ROLE CONT..
 iv. The MIS helps the middle management in short
term planning, target setting and controlling the
business functions.
 It is supported by the use of the management tools
of planning and control.
 v. The MIS helps the top level management in goal
setting, strategic planning and evolving the
business plans and their implementation.
 vi. The MIS plays the role of information
generation, communication, problem identification
and helps in the process of decision-making.
 The MIS, therefore, plays a vital role in the
management, administration and operation of an
organization.
IMPORTANCE OF MIS
ADVANTAGES OF MIS
DISADVANTAGE OF MIS
CORPORATE PLANNING
CONT..
CONT..
GROWTH OF MIS FOR ORGANIZATION
LIMITATIONS OF MIS