MANAGEMENT INFORMATION SYSTEM

Unit - I: Introduction:

Information systems in Business,

Types of information systems,
Managerial challenges of IT,
Components of information system resources
and activities.
System for collaboration and social business,
ethical and social issues in Information
system,
Information system for strategic advantages.
 MIS

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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.

Management:

Management is art of getting things done through and with the people in formally
organized groups.

The basic functions performed by a manager in an organization are: Planning,

controlling, staffing, organizing, and directing.

Information:
Information is considered as valuable component of an organization.
Information is data that is processed and is presented in a form which
assists decision maker.
System:
A system is defined as a set of elements which are joined together to
achieve a common objective. The elements are interrelated and
interdependent. Thus every system is said to be composed of
subsystems. A system has one or multiple inputs, these inputs are
processed through a transformation process to convert these input(s) to
output.
Meaning:
Management Information Systems (MIS), referred to as Information Management
and Systems, is the discipline covering the application of people, technologies, and
procedures collectively called information systems, to solving business problems.

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“'MIS' is a planned system of collecting, storing

and disseminating data in the form of information

needed to carry out the functions of management.”

MIS DEFINITION:

The Management Information System (MIS) is a concept of the last decade or two.

It has been understood and described in a number ways.

It is also known as the Information System,

the Information and Decision System,

the Computer- based information System.

MIS DEFINITION:

The MIS has more than one definition, some of which are give
below.

1. The MIS is defined as a system which provides information that

supports decision making in the organization.
2. The MIS is defined as an integrated system of man and machine for
providing the information to support the operations, the management
and the decision making function in the organization.
3. The MIS is defined as a system based on the database of the
organization evolved for the purpose of providing information to the
people in the organization.
4. The MIS is defined as a Computer based Information System.
Objectives of MIS :
1. Data Capturing : MIS capture data from various internal and
external sources of organization. Data capturing may be manual or
through computer terminals.
2. Processing of Data : The captured data is processed to convert into
required information. Processing of data is done by such activities as
calculating, sorting, classifying, and summarizing.
3. Storage of Information : MIS stores the processed or unprocessed
data for future use. If any information is not immediately required, it is
saved as an organization record, for later use.
4. Retrieval of Information : MIS retrieves information from its stores
as and when required by various users.
5. Dissemination of Information : Information, which is a finished
product of MIS, is disseminated to the users in the organization. It is
periodic or online through computer terminal.
Advantages of Management Information
System
1. Management information system helps the managers to make
planning and control decision.

2. Facilitated planning- management information system improves

the quality of plants by providing relevant information for sound
decision making due to increase in size and complexity of organization
managers have lost personal contact with the scenes of operations.

3. Minimize information overload- management information

system changes the larger amount of data into summarized form and
thereby avoids the confusion which may arise when manager are flooded
with detailed facts.

4. Bring coordination-management information system facilities

integration of specialized activities by keeping each department aware of
the problem and requirement of their department. it connect all decision
centers in the organization.

5. Make control easier-it serves as a link between managerial planning

and control. It improves the ability of management to evaluate and
improve performance. The use of computers has increased the data
processing and storage capability and reduces the cost.
6. Management information system assembles, processes.stores, retrie,
evaluate, and disseminate the information.

7. It ensure that appropriate data is collected from the various

sources, processed, and sent further to all the needy destinations.

8. Management information system helps in strategic planning,

management control, operational control and transaction processing.

9. It helps the clerical personnel in the transaction processing and

answer their queries on the data pertaining to the transaction the status of
a particular record and reference on a variety of documents.
 Characteristics of Management Information System :

The most important characteristics of an MIS are those that give decision-makers
confidence that their actions will have the desired consequences , and among
this characteristics we can mention :

  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 be planned in a top-down way .
 It should be based on need of strategic, operational
and tactical information of managers of an entreprise .
 It should be able to make forecasts and estimates,
and generate advanced information .
 It should create linkage between all sub-systems
within the organization .
 It should have a central database .

Nowadays, with the advanced technology presents in the

world, to be a successful manager , you should have a
very powerful and effective MIS that presents all the most
relevant and useful information for a particular decision.
 Objectives of Management Information System :

The main goals of an MIS are

to help executives of an organization make decisions

that advance the organization’s strategy and

to implement the organizational structure and

dynamics of the enterprise  for the purpose of
managing the organization in a better way for
a competitive advantage .

These are some goals of  an MIS :

1. Capturing Data .
2. Processing Data .
3. Information Storage .
4. Information Retrieval .
5. Information Propagation .
What is the classification of information? Into how many times it has
been categorized?

Information can be classified in a number of ways and in this chapter; you will learn two of
the most important ways to classify information.
 Classification by Characteristic

Based on Anthony's classification of Management, information that is used in

business for decision-making is generally categorized into three types:
 Strategic Information: Strategic information deals with the objectives of a
business with long term policy decisions and checks whether these objectives
are met up to their level or not. For example, acquiring a new plant, a new
product, diversification of business etc, comes under strategic information.

 Tactical Information: Tactical information deals with the information

needed to control over business resources, like budgeting, quality control,
service level, inventory level, productivity level etc.

 Operational Information: Operational information deals with

plant/business level information and is used to handle proper conduction of
specific operational tasks as planned/intended. Various operator specific,
machine specific and shift specific jobs for quality control checks comes under
this category.

Classification by Application
In terms of applications, information can be categorized as:

 Planning Information: These are the information used in business

organizations maintaining standard norms and specifications. Everything is
planned here. This information is used in strategic, tactical, and operation
planning of any activity. Examples of such information are time standards,
design standards.
 Control Information: This information is required for specific activities
performed by the system in order to attain their objectives. This information
might be formal or informal. It is used for controlling attainment, nature and
utilization of important processes in a system. When this information did get
any deviation from the established standards, the system should develop a
decision or an action leading to control the information related to their
objectives.

 Knowledge Information: Knowledge is defined as "information about

information". Knowledge information is acquired through experience and
learning, and collected from archival data and research studies.

 Organizational Information: Organizational information deals with an

organization's environment, where organizational objectives are met. Karl
Weick's Organizational Information Theory emphasizes that an organization
reduces its equivocality or uncertainty by collecting, managing and using these
information carefully. This information is used by everybody in the
organization; examples of such information are employee and payroll
information.

 Functional/Operational Information: This is operation specific

information where the organization assists to perform its functions of day-day
transactions. Mainly holds technical work For example, daily schedules in a
manufacturing plant that refers to the detailed assignment of jobs to machines or
machines to operators. In a service oriented business, it would be the duty roster
of various personnel. This information is mostly internal to the organization.

 Database Information: Database information as we know that it is a

collection of related data that is stored, retrieved and managed to form
databases. It stores large quantities of information that has multiple usage and
application. For example, material specification or supplier information is stored
for multiple users. It is a type of software program.
 What is quality of information?

Success of any organization depends on the quality of information which is very

crucial resource. Further future of an organization depends on using and
disseminating the information wisely according to their objectives. To run any
organisation successfully, when your information is of good quality and when this
information is placed in right context in right time according to their needs then it
gives the way to find out the about opportunities and problems well in advance.

Good quality information: Quality is a value that would differ according to the

users and uses of the information.
According to Wang and Strong, following are the dimensions or elements of
Information Quality:
 Intrinsic: Accuracy, Objectivity, Believability, Reputation

 Contextual: Relevancy, Value-Added, Timeliness, Completeness,

Amount of information

 Representational: Interpretability, Format, Coherence, Compatibility

 Accessibility: Accessibility, Access security

 Various authors propose various lists of metrics for assessing the quality of
information. Let us produce a list of the most essential characteristic features for
information quality:

 Reliability - It should be verifiable and dependable.

 Timely - It must be timely set and it must reach the users well in current
time, so that important decisions can be made in time.
 Relevant - It should be current and valid information which is relevant and
it should reduce uncertainties.

 Accurate - It should be free of errors and mistakes, true, and not deceptive.

 Sufficient - It should be adequate in quantity, so that decisions can be

made based on the quantity.

 Unambiguous - It should be expressed in clear terms and conditions. In

other words, in should be comprehensive.

 Complete - It should meet all the needs in the current context.

 Unbiased - It should be impartial, free from any bias. In other words, it

should have integrity.

 Comparable - It should be of uniform collection, analysis, content, and

format.

 Reproducible – To achieve better results it is used by documented

methods on the same data which is reproducible.