STUDY SESSION 1

BASIC CONCEPTS OF MIS

BY: TERCINO, RAZEL AND GAZO, JOHN MARK
1.1 MANAGEMENT
• Management has been defined in process or activities
that describe what managers do in the operation for
their organization plan, organize, initiate and control
operations.
• Decision-making is a fundamental prerequisite of each
of the foregoing processes. The job of MIS is to
facilitate decisions necessary for planning, organizing
and controlling the work and functions of the business
so that specified goals of business are achieved.
1.2 Data and Information

• Data refers to raw, unevaluated facts, figures, symbols,

objects, events, etc. Data may be a collection of facts lying in
storage, like a telephone directory or census records.
• Information is a processed data i.e. it is data that have been
put into a meaningful and useful context and communicated
to a recipient who uses it to make decisions. Information
involves the communication and reception of intelligence or
knowledge.
This figure 1.1 shows how data can be transformed to information
while this Figure 1.2 shows data as the input that undergoes a
process to give the output which is our information
1.2.1 Characteristics of Information

The characteristics of good information

are relevance, timeliness, accuracy,
cost-effectiveness, reliability, usability,
exhaustiveness, and aggregation level.
This is summarized in figure 1.3
1.2.2 Value of Information
• Information has a great impact on decision
making, and hence its value is closely tied to the
decisions that result from its use. Information
does not have an absolute universal value. Its
value is related to those who use it, when it is
used, and in what situation it is used. In this sense,
information is similar to other commodities.
1.3 Information as an Aid to Decision Making
1.4 System
• The system can be described as a set of elements joined
together for a common objective. A subsystem is a part of
a larger system with which one is concerned. The
organization, for instance, is a system and the parts
(divisions, departments, functions, unit etc.) are the
subsystems. The system concept of MIS is, therefore one
of optimizing the output of the organization by connecting
the operating subsystems through the medium of
information exchange.
1.4.1 What is MIS
• Management Information System is generally defined as
an integrated user-machine system for providing
information to support operations, management and
decision-making functions in an organization. The system
utilizes computer hardware and software, manual
procedure, models for analysis.
• Though there are a number of definitions for MIS, all of
them converge on a single point, i.e. the MIS is a system
that supports the decision-making function of the
organization.