MANAGEMENT INFORMATION

SYSTEM (MIS)

Unit - I
Lecture By-
Ms. Geetanjli K. Raghuwanshi
Assistant Professor
Dept. of Computer Applications
BSSS College, Bhopal
 SYSTEM CONCEPT
DEFINITION: System theory is concerned with “developing a
systematic, theoretical framework upon which to make decisions”.
Thus a system is a way of thinking about organizations and their
problems. It also involves a set of techniques that helps in solving
problems.
“A system is an orderly grouping of interdependent components
linked together according to a plan to achieve a specific objective.”
The study of system concepts, then has three basic implications:
1. A system must be designed to achieve a predetermined
objective.
2. Interrelationships and interdependency must exist among the
components.
3. The objectives of the organization as a whole have a higher
priority than the objectives of its subsystems.
 CHARACTERISTICS OF A SYSTEM
1. ORGANIZATION
Organization implies structure and order. In the design of a
business system, for example, the hierarchical relationships
starting with the president on top and leading downward to the
blue collar workers represents the organization structure and
combining each and every involved component together so they
work as a whole systems for producing information.
2. INTERACTION
Interaction refers to the manner in which each component
functions with other components of the system. In an
organization, for example, purchasing must interact with
production, advertising with sales and payroll with personnel.
In computers system, the central processing unit must interact
with the input device to solve a problem.
 …cont.
3. INTERDEPENDENCE
Interdependence means that parts of the organization or
computer system depend on one another. They are coordinated
and linked together according to a plan. One subsystem depends
on the input of another subsystem for proper functioning i.e. the
output of one subsystem is the required input for another
subsystem. This interdependence is crucial in systems work.
4. INTEGRATION
Integration refers to the holism of systems. Synthesis follows
analysis to achieve the central objective of the organization.
Integration is concerned with how a system is tied together. It is
more than sharing a physical part or location.
 ELEMENTS OF A SYSTEM
The environment may be a business firm, a business
application, or a computer system. To reconstruct a system,
the following key elements must be considered:
1. Outputs and Input
2. Processor
3. Control
4. Feedback
5. Environment
6. Boundaries and Interface
 TYPES OF SYSTEM
1. Open or Closed Systems
2. Physical and Abstract Systems
3. Decision Support System
4. Formal Information System
5. Informal Information System
6. Computer Based Information System
7. Interpersonal Communicational systems
 …cont.
OPEN & CLOSED SYSTEM
OPEN SYSTEM: An open system has many interfaces with its environment. It
permits interaction across its boundary; it receives inputs from and delivers output to
the outside. An information system falls into this category, since it must adapt to the
changing demands of the user.
Characteristics are:
i. Input from outside: Open systems are self-adjusting and self-regulating.
ii. Entropy: All dynamic systems tend to run down over time, resulting in entropy or
loss of energy.
iii. Process, Output and Cycles: Open systems produce useful output and operate in
cycles, following a continuous flow path.
iv. Differentiation: Open systems have a tendency toward an increasing specialization
of functions and a greater differentiation of their components.
v. Equifinality: The term implies that goals are achieved through differing courses of
action and a variety of paths.

CLOSED SYSTEM: A closed system is isolated from environmental influences. In

reality, a completely closed system is rare.
 …cont.
PHYSICAL & ABSTRACT SYSTEM
PHYSICAL SYSTEM: Physical systems are tangible entities
that may be static or dynamic in operation.
For e.g.: The physical parts of the computer center are the
offices, desks, and chairs that facilitate operation of the
computer. They can be seen and counted; they are static. In
contrast, a programmed computer is a dynamic system. Data
programs, output and applications changes as the user’s
demands or the priority of the information requested changes.

ABSTRACT SYSTEM: Abstract systems are conceptual or

nonphysical entities. They may be as straightforward as
formula of relationships among sets of variables or models –
the abstract conceptualization of physical situations. A model is
a representation of a real or a planned system. The objective is
to point out the significant elements and the key
interrelationships of a complex system.
 …cont.
DSS SUPPORT SYSTEM
DSS supports the MIS by overcoming the drawback of it
by providing a good support to its top management for
decision making. DSS advances the capabilities of MIS. It
assists management in making decisions. It is actually a
continually evolving model that relies heavily on
operations research.
Decision – emphasizes decision making in problem
situations, not information processing, retrieval, or
reporting.
Support – requires computer-aided decision situations
with enough “structure” to permit computer support.
System – underline the integrated nature of problem
solving, suggesting a combined “man”, machine, and
decision environment.
 …cont.
FORMAL INFORMATION SYSTEM
A formal information system is based on the organization
represented by the organization chart. The chart is a map of
positions and their authority relationships, indicated by boxes and
concerned by straight lines. It is concerned with the pattern of
authority, communication, and work flow.
Categories of Information
i. Strategic Information – relates to long term planning policies
that are of direct interest to upper management.
ii. Managerial Information – is of direct use to middle management
and department heads for implementation and control.
iii. Operational Information – deals with short term, daily
information used to operate departments and enforce the day-to-
day rules and regulations of the business.
 …cont.
INFORMAL INFORMATION SYSTEM
The formal information system is a power structure
designed to achieve company goals. An organization’s
emphasis on control to ensure performance tends to restrict
the communication flow among employees, however. As a
result, an informal information system develops. It is an
employee based system designed to meet personnel and
vocational needs and to help solve, work related problems.
 …cont.
COMPUTER BASED INFORMATION SYSTEM
A third class of information system relies on the
computer for handling business applications. The
computer is now a required source of information.
System analysis relies heavily on computers for
problem solving. This suggests that the analyst
must be familiar with computer technology and
have experience in handling people in an
organizational context.
 …cont.
INTERPERSONAL COMMUNICATIONAL SYSTEM
Interpersonal communication is the sending and receiving
of information between two or more people. Interpersonal
communication in the workplace also involves this
interaction in varying relational situations, such as between
co-workers and between superior and subordinates.
Interpersonal communication is a process of exchange.
The components of this process
include sender, message, channel and receiver.
The sender is the one initiating the message.
The message is the information that will be sent.
The channel is the manner in which the message is sent.
The receiver is the one to whom the information is sent. 
SYSTEM DEVELOPMENT LIFE
CYCLE
To understand the system development, we need to recognize
that a candidate system has a life cycle, just like a living system
or a new product. System analysis and design are keyed to the
system life cycle. The analyst must progress from one stage to
another methodically, answering key questions and achieving
results in each stage. There are different stages like:
1. Recognition of Need – which basically identifies that
“What is the Problem ?” and also provides the statement of
scope and objectives with the performance criteria as a
result.
2. Feasibility Study – performs the evaluation of existing
system and procedures with analysis of cost factor just to
know that how a problem can be redefined?.
 …cont.
3. Analysis – emphasis on detailed evaluation of present system
through data collection and focuses on the facts and figures that
must be used to solve the problem. In result, it provides the logical
model of system e.g. data dictionary, data flow diagram etc.
4. Design – deals with general design specifications which defines
that how must the problem be solved and what is the systems flow.
In result of which it provides the design of alternative solutions.
5. Implementation – focuses on user training and finds what is the
actual operation ?, Are user manuals ready?, Are these delays in
loading files?. It also provides training programs and user-friendly
documentation.
6. Post-Implementation & Maintenance – this basically deals with
evaluation, maintenance and enhancements. It ensures is the key
system running? And should the system be modified? In case if the
user requirements and user standards met then it says User
Satisfied otherwise the entire process gets repeat.
What does it take to do system
analyst ?
An analyst must possess various skills to effectively carry out
the jobs. They may be divided into two categories: Interpersonal
and Technical skills. Both are required for system development.
Interpersonal Skills – deals with relationships and the interface
of the analyst with people in business. They are useful in
establishing trust, resolving conflict, and communicating
information. They includes:
i. Communication
ii. Understanding
iii. Teaching
iv. Selling
…cont.
Technical Skills – focus on procedures and
techniques for operations analysis, systems
analysis and computer science. They includes:
i. Creativity
ii. Problem Solving
iii. Project Management
iv. Dynamic Interface
v. Questioning attitude and Inquiring mind
vi. Knowledge of the basics of the computer and
the business function.
 ROLE OF THE ANALYST
Analyst performs the multifaceted role in the system like:
1. Change Agent – The analyst may be viewed as an agent
of change. In the role of a change agent, the systems
analyst may select various styles to introduce change to
the user organization.
2. Investigator and Monitor – An investigator extracts the
real problems from existing systems and creating
information structures that uncover previously unknown
trends that may have a direct impact on the organization.
3. Architect – As architect, the analyst also creates a
detailed physical design of candidate systems. He/she aids
users in formalizing abstract ideas and provides details to
build the end product – the candidate system.
 …cont.
4. Psychologist – The analyst plays the role of a
psychologist in the way he/she reaches people, interprets
their thoughts, assesses their behavior, and draws
conclusions from these interactions.
5. Salesperson – Selling the system actually takes place at
each step in the system life cycle, however. Sales skills
and persuasiveness, then, are crucial to the success of the
system.
 …cont.
6. Motivator – The analyst’s role as a motivator becomes
obvious during the first weeks after implementation and
during times when turnover results in new people being
trained to work with the candidate system. The amount
of dedication it takes to motivate users often taxes the
analyst’s abilities to maintain the pace.
7. Politician – In implementing a candidate system, the
analyst tries to appease all parties involved. Diplomacy
and finesse in dealing with people can improve
acceptance of the system.
 ATTRIBUTES OF SYSTEM ANALYST
Following are the attributes of an analyst:
1. Behavioral Issues – Increasing reports of system
failures that were not caused by technical problems made
it necessary to seek a better understanding of the
analyst/user interface.
2. User Motivation – The motivational approach in system
development states that the candidate system should
satisfy the users needs if they are going to use it.
3. Analyst/User Differences – On the surface, differences
in education, experience, and language are quite obvious.
The analyst ‘s impatience with the user’s ignorance
about terminology like chip and CRT makes a difference.
 …cont.
4. Political factor – Since information is a source of
organizational power, the process of system
development may be viewed as a contest for power
where analyst have the initial advantages.
5. Conflict Resolution – The role of analyst requires
coordinating a vast network of people’s idea and
integrating them into a “system” process design.
ANY DOUBTS ?