Advanced Management Information System

CHAPTER NO. 1

Introduction
One of the most important goals in any organization is increasing work force productivity.
Information systems, Systems are the responsibility of their data and their processing of
information within the org refers to the processing of information through computers to
manage and support managerial decisions within an organization. The concept may include
systems termed transaction processing system, decision support system, expert system,
or executive information system. The term is often used in the academic study of businesses
and has connections with other areas, such as information systems, information
technology, informatics, e-commerce and computer science; as a result, the term is used
interchangeably with some of these are as organization and managers to provide information
on important economic decisions making. It will be achieved, using the systems, technology
and training tools that are an integral part of modern management. Also; accurate, related,
and on-time information are second most important factors in this regard. Data collected was
analyzed by use of descriptive methods, central tendency measures, and T test. The study
revealed that related information and cost-effectiveness of information were two most
important factors associated with the productivity of human resources. The study has
suggested the benefits of using on-the-job-trainings, management support of MIS distribution
of information through networking. MIS provides several benefits to the business
organization: the means of effective and efficient coordination between Departments; quick
and reliable referencing; access to relevant data and documents; use of less labor;
improvement in organizational and departmental techniques; management of day-to-day
activities (as accounts, stock control, payroll, etc.); day-to-day assistance in a Department and
closer contact with the rest of the world. MIS provides a valuable time-saving benefit to the
workforce. Employees do not have to collect data manually for filing and analysis. Instead,
that information can be entered quickly and easily into a computer program. As the amount of
raw data grows too large for employees to analyze, business analysts can build programs to
access the data and information in response to queries by management. With faster access to
needed information, managers can make better decisions about procedures, future directions,
and developments by competitors, and make them more quickly. We are living in a time of
great change and working in an Information Age. Managers have to assimilate masses of

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data, convert that data into information, form conclusions about that information and make
decisions leading to the achievement of business objectives. For an organization, information
is as important resource as money, machinery and manpower. It is essential for the survival
of the enterprise.

CHAPTER NO. 2

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Literature Review
Research outcomes based on current topic till-date were review as below.
N. Barzegar and A. Araghieh et al [1]. The findings of the this research paper show that role
and effectiveness of MIS in the dimension of human resources includes: training human
resources, giving speed to the assigned duties and better usage from the resources of MIS and
technology are effective in increasing efficiency and productivity. For better effectiveness
and efficiency, measures such as; teaching information and concepts, methods of working
with computer, designing and database establishment, comprehensive and integrated data for
all units, proper culture making for complete set of systems for analyzing MIS and
considering Strengths and weaknesses points, financial and spiritual support of senior
managers should be taken into consideration.

G.S. Reddy and R. Srinivasu et al.[2].The main purpose of this research is studied, MIS
provides accurate and timely information necessary to facilitate the decision-making process
and enable the organizations planning, control, and operational functions to be carried out
effectively. Management Information System (MIS) is basically concerned with processing
data into information and is then communicated to the various Departments in an
organization for appropriate decision-making. MIS is a subset of the overall planning and
control activities covering the application of humans, technologies, and procedures of the
organization. . The information system is the mechanism to ensure that information is
available to the managers in the form they want it and when they need it.

A. Chaturvedi and A.Chakraborti et al . [3]. The system eliminates the need document the
information using pen and paper and provides a unified solution by integrating the different
systems that may be used by the mall administrator and the shop owners, thereby increasing
convenience.

V. Simovic and M. Varga et al [4].Thus, the conducted research has shown that, based on the
sample (profit-and-loss account), there is no reason to dismiss hypothesis H0, i.e. the
company’s overall cost-effectiveness coefficient did not exceed the threshold between the
tolerated value of 1. The third section of this article presents the possible threads to

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organisations’ information systems, and describes the manners of protecting electronic

information in processes, and ways of recovering electronic data in the finance management
information system. The purchase, finance, and security management systems are stand are
deeply intertwined and highly important for the company management, and overall
management of the company and its information data.

O.A.Nasseef et al .[5].This study evaluated the impact of MIS applications on the

organizational performance by minimizing the organizations’ flaws and expenditures while
elevating clients’ satisfaction and ameliorating the general quality of different procedures.
The field of study includes all the personnel in the different categories of the middle and high
administration that counts up to 180 workers. A total number of 180 questionnaires were
circulated among the workers and 100% of them were received. With the usage of statistical
approaches that utilize mathematical rates and standard deviations, the researcher has reached
the following: The research realized its objectives in improving the performance of the Saudi
business organizations. Accordingly, it offered tools for limiting the chances of any flaw,
increasing clients’ satisfaction, decreasing overall expenditures, and improving the quality of
general procedures.

S.B. Harsh et al. [6].This currently accounts for a lesser portion of the computer usage. A
large growth in this usage of this software is unlikely. The time and effort to master this
software is major commitment. Since management time is being diverted to areas other than
production management, they will have less and less time to become proficient in the use of
this software. Thus, very thorough and sophisticated systems (e.g., the SAP software system)
currently being employed by large companies are not likely to be common on farm
businesses because of their complexity and cost.

A. Marks and K. Rietsemaet et al. [7].Many of those systems are now incorporating software,
database, and network components. They generate both on-demand and regular reports to
assist airport management, improve operations and reduce cost at the same time. In order for
airports to become more effective and efficient in their operations, they need to understand
the competitive advantage of these systems and how to align them together to better serve

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their stakeholders. This paper provides a possible classification for airport airside
management information systems and describes some of their use.

A. Kornkaew et al. [8]. The most important studies from this research is that the description
of problematic issues which was categorized into five main issues regarding implementation
of new MIS within the organization was presented. The first category contains challenges that
relate to leadership issues including. The second category combines topics which associate
with management process issues such as The third category is related to the organizational
environment and includes acquisition of external consultants. The fourth category focuses on
the technical systems issues which consist of: lack of integration of systems. The fifth
category concentrates on personnel issues including: training and education process
management, inadequate staffing, people’s resistance to change.

P. G. Trivellas et al. [9]. It was hypothesized that each MIS dimension will exert positive
effects on specific work outcomes, which reflect characteristics or traits of the relative
archetype. Thus, the rational model, which is focused on planning, directing, goal setting and
external orientation, is the dominant dimension influencing task productivity. Given that
stability, control, order and internal orientations are key ingredients of the internal process
model of MIS effectiveness, it exerts a negative impact on the external oriented work metric
of task innovation.

H. Eshraghi and F. A. Ganjouei et al. [10].According to the significance of these components

by the establishment of management information system has proposed for managers, experts
and teachers to participate in workshops related to the establishment and application of M.I.S.
Also, we used from the viewpoints of personnel and teachers with various job experience in
planning and decision makings related to organization.

M.K.Wegeneret al. [11]. The development of management information system in industry

could contributes greater efficiency. The property designed management information system
could provide the following advantages to industries. More up to date information on
research, avoid duplication in collation and processing of industries statistics, better
information for decision making by industries.

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J. Kostalova, L. Tetrevova et.al [12].Project managers can use a number of applications

offering a wide range offunctions in the areas of project planning, monitoring and continuous
evaluation of project implementation, and final evaluationwhen it has finished. An important
function offered by a Project Management Information System is the possibility of sharing
dataconcerning the running projects across the project team and their surroundings.

J. Antonio and Perez-Mendez et al [13]. The literature review on the success of management
information systems (IS) provides empirical evidence that mere investment in IS and New
Management Tools (NMTs) does not guarantee better business results. Aiming to contribute
to the knowledge of the factors explaining the success of IS implementation, this paper
classifies them through cluster analysis, with a sample of Spanish companies according to the
valuation given by their finance directors (CFOs) to the quality of such systems and their use
for strategic purposes.

A. Behl and M.Singh et al [14]. Microfinance sector needs MIS for gearing up economic
stability, increasing performances and manage flow of funds because a high outflow of funds
might fluctuate the economics of loan disbursement. This research paper focuses on the
current structure of MIS systems in Micro finance sector and research on the existing
scenario of competition with respect to various vendors offering similar services. The
findings of the research indicate that currently there is diversity in the services and packages
offered by vendors and there is a need to build up common software for all the microfinance
institutions to bring in uniformity.

I. Ramlia and D. Iskandarb et al [15]. we examined and analysed the influence of the formal
and informal structures of control authority, and business strategy on the characteristics of
MAIS. We found that the formal and informal authority, and business strategy significantly
and positively influence the characteristics of MAIS.

S.Srimaa and P.Wannapiroonb et al [16]. Schools that apply the Model of Total Quality
Management Information System (TQMIS) for model school on best practice as an
instrument for leveling up themselves to excellence should be ready and adequate in terms of

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basic technology, networking system, and basic tools necessary for internet connection. The
examination by the experts shows that the design of executive information management
based on the Model of Total Quality Management Information System (TQMIS) for model
school on best practice is rated as absolutely appropriate.

H. A. Baraka and H.A.Baraka et al [17]. With the emergence of Information and

Communication technologies, and the relatively cheap cost of calls (voice and data), the use
of call centers to provide new services to citizens has grown extensively. Evolution in call
centers technologies, systems and infrastructures allowed the transformation of industries and
services in big enterprises and organizations, customer support services, marketing services
and after sales support are examples of such transformations.

F. Costaa and P. Santosa et al [18]. In this context, risk management has an important role
aiming to minimize the likelihood of adverse events, thus contributing to improve the quality
of provided health care. As the number and complexity of issues that must be addressed in
hospitals is quite high and is increasing, it is essential the use of information systems to
gather and monitor the hospital data.

C. Durugbo and J. A. Erkoyuncu et al [19]. The aim of this paper is to explore priorities of
supply chain partners for the integrated flow of information during the provision of
industrial services. It presents the findings a study into how five aerospace firms manage
integrated information flow for industrial services in relation to their supply chains.

CHAPTER NO. 3

Concept of management information system

To the managers, Management Information System is an implementation of the
organizational systems and procedures. To a programmer it is nothing but file structures and
file processing. However, it involves much more complexity. The three components of MIS
provide a more complete and focused definition, where System suggests integration and

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holistic view, Information stands for processed data, and Management is the ultimate user,
the decision makers. Management information system can thus be analyzed as follows:

 Management
Management covers the planning, control, and administration of the operations of a concern.
The top management handles planning; the middle management concentrates on controlling;
and the lower management is concerned with actual administration.

 Information
Information, in MIS, means the processed data that helps the management in planning,
controlling and operations. Data means all the facts arising out of the operations of the
concern. Data is processed i.e. recorded, summarized, compared and finally presented to the
management in the form of MIS report.

 System
Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control. Thus MIS means a system for processing data in
order to give proper information to the management for performing its functions.

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CHAPTER NO. 4

Objectives of an MIS

Following basic objective of MIS

 Capturing Data: Capturing contextual data, or operational information that will

contribute in decision making from various internal and external sources of
organization.

 Processing Data: The captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities at
strategic, tactical and operational level. Processing data means:

o making calculations with the data

o sorting data

o classifying data and

o summarizing data

 Information Storage: Information or processed data need to be stored for future use.

 Information Retrieval: The system should be able to retrieve this information from
the storage as and when required by various users.

 Information Propagation: Information or the finished product of the MIS should be

circulated to its users periodically using the organizational network.

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CHAPTER NO. 5

Role Of Management Information System

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 fulfils the needs of
blood supply to human body in normal course and also in crisis. 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 fulfil the information needs of an individual, a group of individuals, the
management functionaries: the managers and top management.
Here are some of the important roles of the MIS:
 The MIS satisfies the diverse needs through variety of systems such as query system,
analysis system, modelling system and decision support system.
 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.
 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.
 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.
 The MIS helps the top level management in goal setting, strategic planning and
evolving the business plans and their implementation.
 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.

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CHAPTER NO. 6

6.1 Characteristics of an MIS

Following are the characteristics of an MIS:
 It should be based on a long-term planning.

 It should provide a holistic view of the dynamics and the structure of the organization.

 It should work as a complete and comprehensive system covering all interconnecting

sub-systems within the organization.

 It should be planned in a top-down way, as the decision makers or the management

should actively take part and provide clear direction at the development stage of the
MIS.

 It should be based on need of strategic, operational and tactical information of

managers of an organization.

 It should also take care of exceptional situations by reporting such situations.

 It should be able to make forecasts and estimates, and generate advanced information,
thus providing a competitive advantage. Decision makers can take actions on the basis
of such predictions.

 It should create linkage between all sub-systems within the organization, so that the
decision makers can take the right decision based on an integrated view.

 It should allow easy flow of information through various sub-systems, thus avoiding
redundancy and duplicity of data. It should simplify the operations with as much
practicability as possible.

 Although the MIS is an integrated, complete system, it should be made in such a

flexible way that it could be easily split into smaller sub-systems as and when
required.

6.2 Characteristics of Computerized MIS

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Following are the characteristics of a well-designed computerized MIS:

 It should be able to process data accurately and with high speed, using various
techniques like operations research, simulation, heuristics, etc.

 It should be able to collect, organize, manipulate, and update large amount of raw data
of both related and unrelated nature, coming from various internal and external
sources at different periods of time.

 It should provide real time information on on going events without any delay.

 It should support various output formats and follow latest rules and regulations in
practice.

 It should provide organized and relevant information for all levels of management:
strategic, operational, and tactical.

 It should aim at extreme flexibility in data storage and retrieval.

CHAPTER NO. 7

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MIS AND DECISION-MAKING:

Management Information System (MIS) is basically concerned with the process of collecting,
processing, storing and transmitting relevant information to support the management
operations in any organizations. Thus, the success of decision-making, which is the heart of
administrative process, is highly dependent partly on available information, and partly on the
functions that are the components of the process. For example, if managerial objectives are
absent or unclear, probably due to inadequate information, there is no basis for a search.
Without information obtained through a search, there are no alternatives to compare, and
without a comparison of alternatives the choice of a particular course of action is unlikely to
yield the desired result. search could be through:

• Undirected viewing—This involves a general exposure to information where. The search

could be that the viewer has no specific purpose in mind

• Conditioned viewing—The directed exposure does not involve active search to a more or
less clearly identified area or type of information.

• Informal search—This is a relatively limited and unstructured effort to obtain specific

information for a specific purpose. The information wanted is actively sought.

• Formal search—This is a deliberate effort, usually following a pre-established plan,

procedure or methodology to secure specific information relating to a specific issue.

stressed the need for MIS in decision making as it provides information that is needed for
better decision making on the issues affecting the organization regarding human and material
resources. MIS may be viewed as a mean for transformation of data, which are used as
information in decision-making processes.

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Figure 6.1. MIS and decision-making process

There are so many definitions of MIS. For the purpose of this research, MIS can be defined
as a system providing management with accurate and timely information necessary to
facilitate the decision-making process and enable the organizations planning, control, and
operational functions to be carried out effectively. So in this way MISs increase
competitiveness of the firm by reducing cost and improving processing speed. Almost all
business organizations normally have some kind of information system for management.
Accounting rules, stock control and market monitoring systems are the most traditional and
common examples. The power of technology has transformed the role of information in
business firm. Now information has become recognized as the lifeblood of an organization
(Figure 2). Without information, the modern company is dead.

Figure 6.2. Information – the life-blood of the organization.

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CHAPTER NO. 8

MIS Implementation Process

The implementation of new information systems is a significant investment for organisations.

Since information systems are sociotechnical systems, development involves the joint design
of activity systems and ICT systems. It is important to define the key stages of the
information system implementation process. Consequently, presented information system
implementation stages which are concerned with a number of key activities in the process. In
addition, this information system implementation process concept is similar to who explained
a five-step process called the information systems Frame of Reference development cycle
which includes the steps of: (1) investigation; (2) analysis; (3) design; (4) implementation;
and (5) maintenance (see Figure ).

Understand the business System investigation

plans and opportunity

Develop an information System analysis

system solution

System design

Implementation the System implementation

information system
solution

System maintenance

Figure 8.1 MIS Implementation Process

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The first phase of information system development process is systems investigation or

system conception which is aimed to determine how, based on informatics planning and
management, to develop a project management plan and obtain management approval.
Systems analysis is focused on identifying the information needs and developing the
functional requirements of a system. Systems Design is the process of planning a technical
artefact and developing specifications for hardware, software, data, people, and network. In
addition, this phase involves building the information system to its specifications. System
implementation invloves delivery of systems, testing the system, training people to use the
system, and converting to the new business system. Finally, system maintenance is the
process of making necessary changes to the functionality of an information system. defined,
traditionally, the MIS implementation stage which involves different related activities
including: initiation, strategic design, technical design, development, conversion, and
evolutions. Each implementation stage can be described as follows: initiation includes project
definition and justification; strategic design refers to establishing the scope and requirement
of a project (i.e. design attribute visible to the users); technical design involves translating the
strategic design into hardware, software, and process specifications (i.e. design attributes not
visible to the users); development concerns the acquisition of hardware, the acquisition and
construction of software, and the testing of both hardware and software; conversion relates to
the insertion of the new information system into the organisation; finally, evaluation assesses
the effectiveness and efficiency of the MIS.

8.1. MIS Implementation Challenges

These issues create or worsen the implementation problems. The more specific
categorisations of the issues can be viewed as: management process issues, organisational
environment issues, leadership issues, technical systems issues, and personnel issues.
1. Management process issues speak to the functional operation of an organisation such as
budgeting, personnel, and general management.
2. Organisational environment issues are identified as factors which are less tangible such as
organisational culture, change, and behaviour.
3. Leadership issues relate to the areas which involve the interaction and direction of the
organisation executive.

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4. Technical systems issues are mainly those referring to the hardware and software
considerations of information technologies.
5. Personnel issues are those issues surrounding each individual in the organisation.

These issues impact the planning, procurement, and deployment of information systems in
their organisations. In this study, these categorisations of information system issues will be
the frame of study in terms of challenges or problems that an organisation faces when a new
information system is implemented.

CHAPTER NO. 9

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Impact Of Management Information System

MIS plays a very important role in the organization; it creates an impact on the
organization’s functions, performance and productivity. The impact of MIS on the functions
is in its management with a good MIS supports the management of marketing, finance,
production and personnel becomes more efficient. The tracking and monitoring of the
functional targets becomes easy. The functional managers are informed about the progress,
achievements and shortfalls in the activity and the targets. The manager is kept alert by
providing certain information indicating and probable trends in the various aspects of
business. This helps in forecasting and long-term perspective planning. The manager’s
attention is bought to a situation which is expected in nature, inducing him to take an action
or a decision in the matter. Disciplined information reporting system creates structure
database and a knowledge base for all the people in the organization. The information is
available in such a form that it can be used straight away by blending and analysis, saving the
manager’s valuable time.The MIS creates another impact in the organization which relates to
the understanding of the business itself. The MIS begins with the definition of data, entity
and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for
information generation in the organization. Since all the information systems use the
dictionary, there is common understanding of terms and terminology in the organization
bringing clarity in the communication and a similar understanding of an event in the
organization.
The MIS calls for a systematization of the business operations for an effective system
design. This leads to streaming of the operations which complicates the system design. It
improves the administration of the business by bringing a discipline in its operations as
everybody is required to follow and use systems and procedures. This process brings a high
degree of professionalism in the business operations. The goals and objectives of the MIS are
the products of business goals and objectives. It helps indirectly to pull the entire
organization in one direction towards the corporate goals and objectives by providing the
relevant information to the organization. A well designed system with a focus on the manager
makes an impact on the managerial efficiency. The fund of information motivates an
enlightened manager to use a variety of tools of the management. It helps him to resort to

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such exercises as experimentation and modelling. The use of computers enables him to use
the tools and techniques which are impossible to use manually. The ready-made packages
make this task simple. The impact is on the managerial ability to perform. It improves
decision-making ability considerably high.
Since, the MIS work on the basic system such as transaction processing and
database, the drudgery of the clerical work is transferred to the computerized system,
relieving the human mind for better work. It will be observed that lot of manpower is
engaged in this activity in the organization. Seventy (70) percent of the time is spent in
recording, searching, processing and communicating. This MIS has a direct impact on this
overhead. It creates information –based working culture in the organization.

CHAPTER NO. 10

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Concluding

1. MIS will only reap the benefits if the companies gain inside the better alien strategies
and identify relationship and gap along four key company dimension such as people,
process, culture and infrastructure.
2. Improve the efficiency and productivity time spend searching for missing and
misfiled record is non productive. a good record management programmed can help
its upgrade its recordkeeping system so that information retrieval is enhanced, with
corresponding improvement in office efficiency and productivity.

3. Reach the motivate to owner to take the right at right time for better effective and to
minimize failure.

References:

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