Management
Information
System
UNIT 1 Management Information Systems - Need, Purpose and
Objectives, Contemporary Approaches to MIS, Information as a
strategic resource, Use of information for competitive advantage,
MIS as an instrument for the organizational change. Information
Technology – Characteristics and emerging trends, IT Capabilities
and their organizational impact, IT enabled services. Transaction
Processing System: Characteristics and its importance
What does
MIS Mean?
The three components of MIS provide a more complete
and focused definition, where System suggests
integration and holistic view, Information stands for
processed data, and Management is the ultimate user,
the decision makers.
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
MIS 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.
Introduction to MIS?
https://www.youtube.com/watch?v=Qujsd4vkqFI
What is MIS ?
Management Information System or 'MIS' is a
planned system of collecting, storing, and
disseminating data in the form of information
needed to carry out the functions of management.
Meaning of MIS
MIS is the system, which makes available
the right information to the:
• Right Person
• At Right Place
• At right time
• In the right format/form
• At right cost.
Objectives 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 −
• making calculations with the data
• sorting data
• classifying data and
• 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.
CHARACTERISTICS OF MIS
•System approach: MIS adheres to the system approach, which denotes a step-
by-step procedure for examining a system's operation in the context of the goal
for which it was created. It entails having a comprehensive perspective on how
organizational subsystems function.
•Management-oriented: The management-oriented nature of MIS suggests
that a top-down MIS design methodology must be used. According to a top-down
approach, management needs and business objectives are decided upon at the
start of system development. MIS suggests management that works dynamically
with system development to reach management decision completeness.
•According to requirements: The MIS should be designed and developed
based on the data that managers need. Strategic planning, management control,
and operational control are three separate levels at which the necessary design
and development information is found. Accordingly, MIS should address the
unique requirements of managers at various levels of an organization's
hierarchy.
Future-focused: MIS should be designed and developed with the future in mind
so that it is not limited to providing only historical data.
•Integrated: A full MIS combines all its sub-components to deliver the
pertinent data to make a wise decision. An essential element of MIS is an
integrated system that combines data from several operating domains.
Long-term planning: Since MIS entails logical planning for an
organization's success, it should always be developed as a long-term
plan. The analyst should consider the demands of the business and
future-focused analyses when creating MIS.
Central database: Data are presented in tabular form in the central
database. This database contains data related to inventories, employees,
clients, and other sources of information. The database is responsible for
record insertion, deletion, and updating processes.
Pillars of MIS
Management, Information, and System comprise MIS's three pillars
1.Management: Art of accomplishing goals via and in collaboration with
members of formally established groups. The following are managerial
responsibilities:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
2.Information: Data with a context and a meaning, where data is unprocessed
information about an entity (entity is the object of interest)
3.System: A group of interconnected elements with a distinct boundary
cooperating to accomplish a single objective.
Why one should study MIS
It may be a student aspiring to become a manager in some organisation,
an entrepreneur or a professional. Information system and information
technology is a vital component of any successful business and is
regarded as a major functional area like any other functional area of a
business organization like marketing, finance, production, human
resources (HR) etc. Information systems play following 3 vital roles for a
business organisation:
1.Supports the business processes and operations of an organisation.
2.Support of decision making by employees and managers of an
organisation.
3.Support the strategies of an organisation for competitive advantage.
Advantages of MIS:
•Improves quality of an organization or an information content
by providing relevant information for sound decision making.
•MIS change large amount of data into summarize form and
thereby avoid confusion which may an answer when an
information officer are flooded with detailed fact.
•MIS facilitates integration of specialized activities by keeping
each department aware of problem and requirements of other
departments.
•MIS serves as a link between managerial planning and control.
It improves the ability of management to evaluate and improve
performance.
Disadvantages:
•Quite expensive to set up and configure: The main drawback of MIS is
that it is extremely expensive to deploy for a business. Numerous hardware
and software components are needed for this information system to
function.
•Lack of Flexibility to Update Itself: MIS can't automatically update itself
like many other applications. The system must be manually updated by
collecting raw data and putting it into it for processing and updating
previously stored data.
•Risk of fraud: At every transaction stage, appropriate controls and checks
must be made. Any breach could lead to potentially dangerous situations,
such as an intruder posting unlawful transactions.
•Takes into Account only Qualitative Factors: MIS ignores non-
quantitative aspects, including employee morale, attitude, and motivation,
in favor of just considering qualitative factors.
•Heavy reliance on technology: In computerized information systems,
technology is heavily reliant. Information cannot be accessible during any
device or software failure until the necessary software or hardware has been
replaced.
Major System in an Organizational Systems: Organizational information
system are logical rather than physical way of thinking about MIS. The
following are the management levels:
1.Strategic Planning Level: Plan
2.Management Control Level: Organize
3.Operational Control Level: Direct
Operational control level includes:
Marketing: It is the area in which considerable effort as spent in describing
how the computer could be applied to the entire range of marketing
operations.
Finance: It does not embrace title of financial information system although
computer based information system in that area are common. For ex-payroll,
taxation.
Human Resource: It represents area where most current attention is being
focused. Terms Human Resource Information System (HRIS), and Human
Resource Management System (HRMS) are common.
Manufacturing: It describes how the computer could be applied to the entire
range of information collection.
Information Resource: It also embraced computer processing and applied
the technology as both conceptual information system and physical
Why MIS?
1. Manager makes decisions all the
time.
2. There is an overload of
MIS in information. All information is not
useful.
Organizati 4. Anything which helps manager
improve his decision-making will
on obviously lead to better result.
5. In MIS data is input, which is
processed to provide output in the
form of information reports,
summaries, etc Which aid the
manager’s decision-making process.