Management information system Unit 1

Management Information System
(MIS)

Foundation of Management Information
System(MIS)
 Introduction
 Definition
 Goals
 Use
 Examples
 Summary

Introduction to MIS
Definition
•MIS is a System or Process that provides the
information necessary to manage an organization
effectively.
•MIS should have a clearly defined framework of
guidelines, policies or practices, standards and
procedures for the organization.
•These should be followed throughout any of the
organization in their development , maintenance and use.

The Generic Framework of Business
Organization is
Top Level Management --(Knowledge)---------
(The Decision Makers) (DSS,MIS)
Work/Feedback flows
Middle Level Management –(Information)-
(The Report Generators) (MIS)
Command flows
Lower Level Management –(Data)-------
(The Data Collectors)

Goals of MIS
An Organization’s MIS should be designed to
achieve the following goals :
• Enhance communication among employees.
• Deliver complex material throughout the
organization.
• Provide an objective system for recording and
aggregating information.
• Reduce expenses related to labor intensive
manual activities.
• Support the organization’s strategic goals and
direction.

Management Hierarchy
in any Business Organization
Work/feedback Flows
Top Level Management (Information)
Command Flows
Middle Level Management (Information)
Assistants/Supervisors/Executives etc.
Low Level Management
President/Chairman
/Chancellor/CEO
Mgr./Dean
Production/
Manufacturing
Mgr./Head
Sales
Mgr.
Marketing
Mgr.
Accounts
Mgr.
HR
Mgr.
SCM

Use of MIS
• MIS supplies decision makers with facts and
enhances the overall decision making process.
• MIS also enhances job performance throughout the
organization as data and information availability and
processing done on time, this helps the board and
management in taking strategic decisions.

MIS should be used to recognize , monitor , measure
,limit and manage risks. Management involves four
main elements :
• Policies or Practices
• Operational process
• Staff & Management
• Feedback

Examples of MIS
• Bank Information System
• Railways Information System
• Educational Information System etc.

Fundamentals of Information System
• Definition & Description of Information System
• Classification of Information
• Types of Information
• Types of Data
• Information Transmission
• Benefits of Information
• Conclusion

Definition & Description of I.S.
• Information is data that has been processed into meaningful
data to the user.
• An I.S. is an organized combination of people ,h/w, s/w,
communication network, and data resources that collects ,
transforms and distributes information in an organization.
• Information system and technologies have become vital
components of business and organizations.
• People rely on information system to communicate with each
other using a variety of physical devices (h/w), information
processing channels(networks), and stored data (data
resources).

Classification of Information
Information can be classified into facts ,
opinions, concepts, procedures , processes,
principles, primary and secondary information.

Types of Data
• In order to present the information in a proper
manner to user , the data can be collected through
two main methods – primary & secondary.
• Primary data collection refers to collecting original
data or collecting data directly from the source.
• Secondary data collection refers to collecting data
from secondary sources such as books , journals,
researches reports, online databases, internet etc.

Types of Information
• Primary, Secondary and Tertiary Information
Most information is generally divided into three main
categories: Primary , Secondary and Tertiary.
• Primary Information:
Original material that has not been interpreted or analyzed.
Examples: Direct Market Survey Results, Compiled
Questionnaires, etc.
• Secondary Information:
Created from primary material or by the interpretion of
original material.
Examples: Textbooks, Research articles, websites, etc.
• Tertiary Information :
Acts as a tool in understanding and locating information
Examples: Outputs from Databases queries, Dictionaries,
Bibliographies, References, etc.

Information Transmission
• The transmission of information between people
takes place with the help of the communication
system.

Benefits of Information
The benefits of information in organization are:
 It helps in Management Control, Decision Making and Build
Models.
 Quality of information is also vital issue. The various
parameters of quality are validity, consistency, reliability.
Errors occurs as result of giving too much importance and
preference to the quantity of information rather than quality.

Framework of IS
• Definition
It is a set of rules that defines a unified and
coherent structure consisting of constituent parts
and connectivity that establish how those parts fit
and work together for IS.

Framework of IS
Model Architectural
Layer
Organization Business
Structure (Policies & Practices)
Activities / Interactions /
Operational programs
Processes
Entity – Relationship Information
System Architecture Technology
Mgt. Users/Visitors Customers
Organizational
Tasks
Booking/Registration
applications
Databases
Info.
Databases

Explanation of Framework of IS
Following are the three layers of generic business model.
 The Lower level is database which are of two types
(i) One contains internal & customers data of the organization .
(ii) Second contains information(processed data) of the organization and of
customers.
 The Middle layer represents the processing of either accessed data from databases or
receiving data from organization’s management ,users become customers as soon as
they give data through booking or registration according to the organization’s norms
and information are contained in info. database. Information database also contains
information about the processing of activities takes place within the organization.
This layer plays the crucial role as an interface between the top level and lower
level.
 The Top Level is of the people working within the organization as management
entity , users who either gather desired information about the organization and if get
attached then through booking or get registered to become customer of the
organization.

Types of Information Systems
• Office Automation System
• Communication System
• Transaction Processing System (TPS)
• Management Information System (MIS) and
Executive Information System(EIS)
• Decision Support System (DSS)
• Enterprise System

Office Automation System(OAS)
• Facilitates everyday information processing tasks
in offices and business organizations.
• Tools generally grouped within the OASs
category include
Spreadsheet programs
Text and image processing systems
Presentation packages
Personal database systems and note taking
systems

Communication System
• It helps people work together by interacting and
sharing information in many different forms.
• Examples are:
 Teleconferencing
 E-mail, Voice Mail and Fax
 Instant Messaging and Chat Rooms
 Groupware ( It refers to software and related
procedures that help teams work together by sharing
information and by controlling internal workflows).

Transaction Processing System(TPS)
• Basic business system that serves the
operational level.
• A computerized system that performs and
records the daily routine transactions
necessary to the code of the business.
• Major functions of the system: Budgeting,
general ledger, billing, cost accounting,
personnel records, product records, etc..

Major
Functions of
System
Sales Marketing
System
Manufacturing/Prod
uction System
Finance/ Accounting
System
Human Resource
system
Other Typ
System (e.
Universitie
Sales Management Scheduling Budgeting Personnel Records Admission
Market Research Purchasing General Ledger Benefits Grade Rec
Promotion Shipping /Receiving Billing Compensation Course Re
Pricing Engineering Cost Accounting Labor Relations Alumni
New Products Operations Training
Major
Applications of
System
Sales Orders Machine Control
System
General Ledger Payroll Registratio
Market Research
System
Purchase order
systems
Accounts
Receivable/ Payable
Employee Records Student Tr
System
Sales Commission Quality Control
System
Fund Management
System
Benefit Systems Curriculum
Control Sy
Types Of TPS

MIS and EIS
• It converts TPS data into information for monitoring
performance and managing an organization; provides
executives information in a readily accessible
interactive format.

Decision Support System
• Provides information to top level managers, who
must makes judgments about particular situations.
• Support decision makers in situations that are not
well structured.
• Features in DSS :
(1.) What – if Analysis,
(2.) Goal Seeking ,
(3.) Risk Analysis

Enterprise system
• Creates and maintains consistent data processing
methods and an integrated database across multiple
business functions.

Interconnectivity of sub-systems in any Business
organization/system VIA Information
Information

Need of Information System
Every organization is established not to limit
itself but for growth as its objective and
information system has become the most
powerful tool for this. The efficient and effective
way of managing information produced and
delivered within time frame has become the
prime factor of any industry, whichever industry
is managing information system by recognizing
its potential has reached to unexpected heights.

Components that constitute an IS can be placed on an
academic spectrum , ranging from structured such as
engineering and logic; through business applications(e.g.
economics, statistics, etc.) and reaching into humans
understanding (e.g. psychology, organizational behavior,
etc.) some activities are very mechanistic(e.g. data
capturing); others are very logical (e.g. computer
programming to carry out desirable results); and still
other fall within the area of less definable management
problems(e.g. keeping project within budget, handling
resistance to change , etc. )
Overall we recognize IS has become the primary or
prerequisite for any organization.

Management information system Unit 1

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Management information system Unit 1