Management Information

Systems
MIS is an integrated
man-machine system that
provides information to
support the planning and
control functions of managers
in an organization.
 MIS

Management Information System

What is management ?

Mgt comprises the process or activities that

describes what managers do in the operation of
their organization; plan, organize, initiate and
control their operations.
Planning
Organizing
Directing
Staffing
controlling
LEVELS OF MANAGEMENT

In order to understand who the users

of an MIS are and what information
they need, one must first understand
the levels of management and the
types of decisions are made at each
level. ( Information needs tend to be
different at different levels of
management)
LEVELS OF MANAGEMENT
Lower level management
Lower level management makes
decisions that affect day to day
operations.
Programmed decisions that are
predetermined by rules and procedures.
They lead to a desired result.
The information needs of lower-level mgrs.
can be met by administrative data
processing activities.
Middle-level Management
Middle-level mgrs. plan working capital,
schedule production, and make short-
term forecasts.
Mid-level managers make tactical decisions
that usually involve time periods of up to two
years.
Many Mid-level mgmt decisions are non-
programmed decisions. No specific
predetermined steps cab be followed to
each solution.
The information needs of Mid-level mgrs.
must be specific
Top-level Management
Top-level mgrs. provide direction for the
company by planning for the next five
years.
Top-level mgrs. make strategic decisions
that involve a great deal of uncertainty.
Top-level mgt. decisions are non-
programmed decisions
Information: What is information?

Information can be defined as the data which is

organized and presented at a time and place so
that the decision maker may take necessary action.
Information is data that has been processed into a
form that is meaningful to the recipient (USER) and
is of real or perceived value in current or
prospective actions or decisions.
Conversion of data into decision

data process information decision

implementation

Action
Characteristics of Information

Relevant
Complete
Accurate
Current
Economical
Systems
A system is a group of elements or
components joined together to fulfill
certain functions.
Management Information System

A set of related processes, activities,

individuals or entities interacting
together to provide processed data to
the managers at various levels in
different functional areas
Classification of systems
Conceptual and empirical systems
Conceptual system is concerned with theoretical structures which may or may not
have any counterpart in the real world. Eg. Economic theory
Empirical systems are concrete operational systems made up of people, materials,
machines, energy and other physical things.
Eg. Electrical, thermal, chemical systems.

Natural and man made systems

Eg. Of natural system- human body, solar system etc.
Business organization and transportation system are the examples of man
made system
Open and closed systems
- An open system continually interact
with its environment. This type of
system can adapt to changing
internal environment conditions.
- A closed
Information System

An organised combination of people,

hardware, software, communication
network and data resources that
collects, transforms and disseminates
information in an organisation.
System concept

- is a group of inter related

components working together toward
a common goal by accepting inputs
and producing outputs in an
organized transformation process
Basic components/ functions
-Input involves capturing and assembling
elements that enter the system to be
processed.
Processing involves the transformation
process that convert the input into output
Output involves transferring elements that
have been produced by transformation
process to their ultimate destination.
Additional components.
Feed back and control.
– Feed back is a data about the performance of a system.
– Control involves monitoring and evaluating feed back to determine
whether a system is monitoring towards the achievement of its goal.

The control system then make

necessary adjustments to a systems inputs
and processing components to ensure that it
produces proper output.
A system with feedback and control is called a
cybernetic system.
 Other system characteristics
- A System does not exist in vaccum, it
functions in an environment.
- Some systems may be connected to one
another by means of a shared boundary or
interface.
- A system which interacts with other systems
in its environment (Open system)
- A system that has the ability to change itself
or its environment in order to survive is an
adaptive system.
 community. customers, financial
institutions, govt agencies competitors
labour unions stock holders
mgt

Information system

Economic Business
Goods
resources process
and
services

stake holders in the business environment

components of an information
system
consist of five major resources
-people resources
-hardware resources
- software resources
-data resources
- network resources
People resources---- people require for
the operation. include end users and IS
specialists.
Hardware resources– physical devices
and materials eg, computer systems
and computer peripherals
Software resources-allsets of
information processing instructions.eg.
system s/w and application s/w
Data resources – include databases
and knowledge bases.
Network resourses– include
communications media and network
support
Information system activities

input of data resources

processing of data into information
output of information products
storage of data resources
control of system performance
Information system model

expresses a conceptual framework

for the major components and
activities of information systems
It highlights the relationship among
the components and activities of
information systems.
Types of information system
Other categories of information
system
Expert system
knowledge management system
Functional business system

• Operations support system-

--produce a variety of information
products for external and internal use
• ---further processing is required
 Transaction processing system
Record and process data resulting from
business transactions. They process
transactions intwo ways.
* batch processing
* real time (Online)
• Processs control system
monitor and control physical processes
• Enterprise collboration system
enhace team and work group
communication and productivity
Management support system
focuses on providing information and
support for effective decision making
MIS- provide information in the form
of reports and displays to managers
and business professionals
DSS- give direct computer support
to managers during the decision
making process.
EIS- provide critical information from
a wide variety of internal and external
sources in easy to use displays to
executives and managers.
Meaning and objectives of MIS
MIS is a system which:-
provides information to support managerial
functions
Collects information systematically and
routinely in accordance with a well defined
set of rules.
Includes files, h/w, s/w, and operations
research models of processing, retrieving,
and transmitting information to the users.
Objectives of MIS
Facilitate the decision making
process by furnishing information in
the proper time frame.
Provide requisite information at each
level of management to carry out their
functions
Helps in highlighting critical factors to
be closely monitored for the sucessful
functioning of the organisation
Support decision making in both
structured and unstructured problem
environment.
Provide a system of people,
computers, procedures, interactive
query facilities, documents, for
collecting, storing, retrieving, and
transmitting information to the users.
Location of MIS in an organization

As apart of finance dept.

DP organization under a separate
division
DP as a separate company
Characteristics of MIS

Management oriented
Management drected
Integrated
Common data flows
Heavy planning element
Sub system concept
flexibility and ease of use.
Design of an MIS
Identification of information needs at all
levels of management.
Listing objectives of MIS and anticipated
benefits
Identifying system constraints( internal and
external)
Determining information needs and
resourses.
Developing alternative conceptual design
and selecting one.
Preparation of conceptual design report.
Implementation of MIS
Preparing organizational plan
Planning of work flow
Training of personnel
Development of s/w
Acquiring computer h/w
Designing the format of data collection.
Construction of data files
Operation of old and new system in parallel
Phasing out the old and inducting new system
Evaluation, maintenance and control of the new
system.
Limitation of MIS

MIS cannot replace managerial

judgment in decision making
The quality of output of MIS is directly
proportional to the quality of input and
processes.
MIS is less effective in organizations
where information is not being shared
with others.