Organizations,

Management And
Information

Management

As defined by Mary Follet it is Art of

getting things done through people

Manager is a person who achieves the
organizational goal by motivating others
to perform
Manager uses human skills, resources and
methods to perform all the activities
leading to the achievement of goals
Planning, organizing , staffing,
coordinating, directing and controlling are
the various steps in a management
process

DATA
Is a gathered body of facts
Origin Latin word Datum
In computing data is information that has

been translated into a form that is more

convenient to move on process

Data
DATA = Raw facts

INFORMATION = Collection of facts

Assignment
DATA

Organiz
ed

INFORMATION

Characteristics of Data
Accurate
Complete
Economical
Flexible
Reliable

Relevant
Simple
Timely
Verifiable
Accessible
Secure

Information Concepts
The common word which we use in our day

to day life
There is a significant role of information in
the field of MIS. It is rightly compared with
the blood with in the heart.
Information plays important role in
retaining, expanding the human store of
knowledge
Information plays an active role in all the
walks of life
As a human being survives on the basis of
information, organization too needs a
useful information to adopt itself with the
changing business environment

Characteristics of
Information
Value adding resource
Increases / Updates knowledge level
Reduces uncertainty
Improves the quality of Decision Making
Cost is involved
Specific objective
Planning future activities
In short managing information in turn

managing money and other sources.

Quality parameters/ Value adding factors of information

Timeliness
Proper way of presentation
Relevance with decision making
Accuracy in presentation
If presented to the right person
Validity
Age / Currency
Consistency

Frequency
Scope / boundaries of

information
Un ambiguity
Preciseness
Reliability

Types of information
Strategic Information
Top
Tactical Information
Middle

Operational

Operational
Information

Strategic Information
Generally required for functioning of top

mgmt.
Changes in investment patterns, government
regulations and policies
Changes in Technological trends, market
conditions
National and international topics
Customers feedbacks
Main source is external environment
Mainly required for long term planning
activity

Tactical Information
Generally required for functioning of

middle level mgmt.

Mainly required for short term planning
activity
Examples Cash flow projections, Sales
analysis, Budgetary control, production
plan, variance statement
Main source is internal environment but
some times external sources are also
explored
Produced with data processing activity

Operational information

Deals with specific operations with in the

organization
Eg. Information about attendance report,
pending purchase orders, information about
stock levels, Production schedule, basic
information about how to operate machines
and training
Sources of all this information is internal.
Information generated at this level is some
times used by middle level management
for their planning and decision making
activity

Sources of Information
InternalEmployee feedback, Reports

ExternalGovernment
Media
Banks
Financial institutes
Customers
Suppliers
Published information

Strategic information is mainly collected

through external sources where as operational

information is from internal sources

Information Process
Process of converting data (raw

information)in to meaningful information

is called as information process
Three important phases are involved in
this process namely
Data acquisition - collection of required data

from various sources

Data transformation- Rearranging,
classifying, summarizing, calculating
Management of information- storing
information for future reference, selecting
appropriate channel of communication,
computing or sorting information .

Information Technology
Information technology is the use of

computers and software to manage

information
In the broadest sense, information
technology refers to both the hardware and
software that are used to store, process,
retrieve and distribute information
IT (information technology) is a term that
encompasses all forms of technology used
to create, store, exchange, and use
information in its various forms

VALUE OF INFORMATION
Measured in the time required to make a

decision and to increase profits

Directly linked how it helps decision makers
achieve their organization goals.
Helps decision makers / managers decide
whether to invest in additional IS and
technology.

SYSTEM
Is set of elements / components which

interacts to accomplish goals

Have inputs, process, outputs and
feedbacks ( system components)
A group of interdependent items that
interacts regularly to perform a task
An established or organized procedure or
method
A computer system refers to h/w & s/w
components that run a computer or
computers

SYSTEM COMPONANTS
Inputs
Processing Mechanism
Outputs
Feedbacks / Goals

Inputs of System
Time
Energy
Skills
Knowledge

SUB-SYSTEMS
These refer to parts/building blocks of larger

systems. For example the

sub-systems of a Business System are as
follows:

Information System
Interrelated components working together to

collect, process store and disseminate

information to support decision making,
coordination, control, analysis and visualization
in the organization.
Modern information system is computer based
(automated) system where computer support is
taken to reduce time required for collecting and
processing data, which provides more accuracy

INFORMATION SYSTEM
IS set of interrelated components
IS provides a feedback mechanism
to meet an objective
E.g. of IS
1.Academic Information system
2. Bank Information system
3.Railway Information System

Why IS

Investigation

Problem

Analysis

Solutions

Design

Select / Plan

Implementation

Placement

Maintenance
& Review

Evaluation

Importance of IS

For
personal
growth

Organization
Reaches
Their goals

High quality
Of life

System Users

Business
Managers

Successful IS

IS Professionals

Information System
Plays a fundamental and ever expanding

role in all BO
Used in all functional areas of business
Also plays a vital role in every industries
Have a major impact on corporate strategy
and Organizational success
Provides a role of better safety and
service, efficiency and effectiveness with
low expenses and improved decision
making in the businesses

KINDS OF INFORMATION SYSTEMS

KIND OF SYSTEM

STRATEGIC LEVEL

GROUPS SERVED

SENIOR MANAGERS
E.g ESS

MANAGEMENT LEVEL

KNOWLEDGE LEVEL

KNOWLEDGE &
DATA WORKERS
E.g KWS/OAS
OPERATIONAL
MANAGERS
E.gTPS

OPERATIONAL
LEVEL
SALES &
MARKETING

MIDDLE MANAGERS
E.g MIS / DSS

MANUFACTURING FINANCE
& ENGINEERING

ACCOUNTING HUMAN
RESOURCES

Relationship between different IS

ESS

MIS

KWS/
OAS

DSS

TPS

TPS is a major producer of information for other systems

A Framework for IS (with respect to support

provided)

Executive Support Systems (ESS)

Management Information Systems (MIS)
Decision Support Systems (DSS)
Knowledge Work Systems (KWS)
Office Automation Systems (OAS)
Transaction Processing Systems (TPS)

Introduction to MIS
Every business organization need a system

that helps in gathering and communicating the

required information.
MIS deals with the information requirements of
the business organization
Kelly defines MIS as Combination of human
and computer based resources that result in
collection, storage, retrieval, communication
and use of data for the purpose of efficient
management operations and business
planning

Lucey defines MIS as A system which

converts data from internal and external

sources in to
form to manage at all levels in all functions to
enable them to make timely and effective
decisions for planning, directing and
controlling the activities for which they are
responsible .
Principles and practices of management is the
foundation of MIS

It is the system which provides information

support for decision making in the

organization
Integrated system of man and machine for
providing the information to support the
operations in the organization.
In the current age of information technology
MIS is most widely known as computerized /
Computer based information system
This system ensures that appropriate data is
collected from various sources, processed,
and send further to all the required
destinations

MIS helps low level management by

providing the operational data for planning

and scheduling, It helps middle level
management in short term planning, target
setting and controlling and it helps top
management
Popularly known as information system /
computer based information system or
information and decision system

Need of MIS
Information is required for planning and

decision making
A single organization consists of different units
which are geographically separated
Collecting and analyzing and distributing
information is not a simple job specially in case
of complex organisational structure
Considerable amount of efforts are required in
a typical business organization in activities
relating to in formation processing

Information about the internal operations

as well as the external environment in

which the organization functions is
necessary for effective working of the
organization.
Managers require information for
planning, organizing, controlling, decision
making for which right kind of information
is to be made available at the right time.
The job of collecting and analyzing the
information is no more a simple job as
organizations involve people, who are
having different attitudes, backgrounds;
and aspirations.

Complex Processing of data and

multidimensional analysis
Handling voluminous data in proper
manner for easy storage and retrieval
With the help of computer system
collection and processing of information
is more easier and accurate task
Accurate reports can be generated with
the help of efficient system.
Validity of the data can be ensured with
the help of systematic and efficient
information system

Objectives of MIS
To provide information support to management

functions such as such as planning, organizing,

staffing, controlling etc. within the organization
To provide correct, up to date information at
the right time
To manage the available information in the
effective manner and to avoid redundancy of
the information
Depending on the requirements, objectives of
MIS vary from one organization to other

MIS Impact on
Business
Easier business growth
Fewer clerical work
Reduced information processing cost
Automation of some decision
More and better information

Characteristics of MIS
Very flexible in nature
Dynamic and evolving concept
Combination of multiple academic

disciplines
Structured or semi structured decisions
Produces output(information) in the form of
report(Report Oriented Output)
Decision facilitator, not the decision taker
Uses past as well as future data
Based on specific objective

Business processes

Business Process
Abusiness processorbusiness methodis

a collection of related, structured activities or

tasksthat produce a specific service or
product for a particular customer or
customers.
It can often be visualized with aflowchartas a
sequence of activities with interleaving
decision points or with a Process Matrix as a
sequence of activities with relevance rules
based on data in the process.

There are three types of business processes:

Management processes:- the processes that govern
the operation of a system. Typical management
processes include corporate governance and
strategic management .
Operational processes, processes that constitute the
core businessand create the primary value stream.
Typical operational processes arepurchasing,
manufacturing,advertisingandmarketing, andsales.
Supporting processes ;-which support the core
processes. Examples includeaccounting, recruitment
,call center,technical support.

In general, the various tasks of a business

process can be performed in one of two ways

Manually and
By means of businessdata processingsystems

such asERP systems.

Examples of Business Processes

Functional Area
Business Process
Manufacturing and production Assembling the product
Checking for quality
Producing bills of materials
Sales and marketing
Identifying customers
Making customers aware of the product
Selling the product
Finance and accounting
paying creditors
Creating financial statements
Managing cash accounts
Human resources
Hiring employees
Evaluating employees' job performance
Enrolling employees in benefits plans

Example of Business Process

The Order Fulfillment Process
S a le s

A c c o u n t in g

M a n u f a c t u r in g
& P r o d u c t io n

G e n e ra te
O rder

S u b m it
O rd er

C heck
C r e d it

A p p ro v e
C r e d it

G e n e ra te
I n v o ic e

A s s e m b le
P rodu c t

S h ip
P ro d u c t

Traditional View of Systems

B u s in e s s F u n c tio n s
A c c o u n tin g

F in a n c e

M a r k e t in g a n d
S a le s

H um an
R e sou rces

B u s in e s s
P roce sse s

B u s in e s s
P roce sse s

B u s in e s s
Processes

B u s in e s s
P rocesse s

B u s in e s s
P roce sse s

M a n u fa c t u r in g
S y ste m s

A c c o u n tin g
S y ste m s

F in a n c e
S y ste m s

M a r k e t in g a n d
S a le s S y s te m s

H um an
R esources
S y s te m s

I n f o r m a t io n S y s te m s

O r g a n iz a tio n a l
B o u n d a r ie s

O r g a n iz a t io n a l
B o u n d a r ie s

V en dors

M a n u fa c t u r in g

C u sto m e rs

Enterprise Systems

M a n u fa c tu r in g

A c c o u n t in g

H um an
R e sou rce s

B u s in e s s P r o c e s s
B u s in e s s P r o c e s s
B u s in e s s P r o c e s s
E n t e r p r is e - w id e b u s in e s s
proce sse s

S a le s a n d
M a r k e tin g

O r g a n iz a tio n a l
B o u n d a r ie s

V e n dors

O r g a n iz a tio n a l
B o u n d a r ie s

E n te r p r is e S y s te m

C u sto m e rs

F in a n c e

Benefits and Challenges of

Enterprise Systems

Benefits

Firm structure and organization: One

Organization
Management: Firm wide Knowledge-based
Management Processes
Technology: Unified Platform
Business: More Efficient Operations and
Customer-driven Business Processes

Challenges

Daunting Implementation
High Up-front Costs and Future Benefits
Inflexibility

Extended Enterprises

Extended Enterprises: Networks linking

systems of multiple firms in an industry.
Also called extended enterprises.
Vertical industrial networks Networks
for integrating the operations of a firm with
its suppliers.
Horizontal industrial networks
Networks for linking firms across an entire
industry.

Business Process Reengineering

Business Process Reengineering or

BPRServices is one of the most important

steps of project implementation.
Many leading organizations are becoming

bolder in using this technology to support

innovative business processes, rather than
refining current ways of doing work.

BPR continued.
A key stimulus for reengineering has been the

continuing development and deployment of

sophisticated information systems and
networks.
The good BPR can easily lead the business on
the way to its success.