CHAPTER 2

MANAGEMENT INFORMATION
SYSTEM

WHAT WE LEARN ON THIS CHAPTER

IS..
Introduction of MIS
Task of MIS
Characteristics of a useful system
MIS and Computer
Why we need a MIS
Conceptual Design Models Of MIS
Impact of MIS

Management:

Word management identifies a special

group of people whose job is to direct the
effort and activities of other people toward
common objective.
Management is the process of coordinating
work activities so that they are completed
efficiently and effectively with and through
other people.

INFORMATION

Information is data that has been manipulated to be useful

to someone.
Information must have value.
Information tells people something they dont already know
or confirms something that they suspect.

SYSTEM

A system is a group of interrelated components

working together toward a common goal by accepting
inputs and producing output in an organized
transformation process.
Characteristics of a useful system:
A system is a whole.
Components of a system interact.
Systems are goal seeking.
Systems have input/output.
System must be controlled.
System forms a hierarchy.
Systems exhibit differentiation.
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MANAGEMENT INFORMATION
SYSTEM

MIS is also knows as Information Systems/ Information and

Decision Systems/ Computer-Based Information Systems.

Definitions of MIS:

1.

MIS is defined as a system which provides information

support for decision-making in the organization.

2.

MIS is defined as an integrated systemof man and machine for

providing information to the operations, management &
decision-making function in the organization.

MANAGEMENT INFORMATION
SYSTEM
3. MIS is defined as a systembased on the database of the
organization for the purpose of providing information to people in
organization.
4. MIS is defined as a Computer-based Information System.

TASKS OF MIS

Following are activities performed during information System

processing:
1.

Handling of voluminous data

2.

Confirmation of the validity of data & transaction

3.

Complex processing of data & multidimensional analysis

4.

Quick search & retrieval

5.

Mass storage

6.

Communication of information system to the user on time

7.

Fulfilling the changing needs of information

Formal system should exist to handle all above mentioned things.

Hence, MIS uses computer technology to deal with information.

MIS AND COMPUTER

MIS

Jyotsna Chauhan

relies on the HW and SW capacity of

the computer and its ability to store, process,
retrieve and communicate with no
limitations.
Ability of the computer to sort and merge
helps to organize the data in a particular
manner.
Ability of a computer system to provide
security of data brings confidence in the
management.
The computer system being able to configure
to the specific needs helps to design a
flexible MIS.
9

MIS AND ACADEMICS

Management
Human

mind as processor
Research and network theory

Accounting

Jyotsna Chauhan

Operation

Data

theory and organizational behavior

Applications

Structure(DBMS)

Decision

theory and Mathematical Techniques

10

NEED FOR MIS

1. Increasing complexity of business activity

a) International economy
Firms of all sizes are subject to economic influences that can
originate
anywhere in the world. Such influences can be seen in the
relative values of
the currencies of each nation, where purchases are made in
those countries
with the highest currency value.
b) Worldwide competition
Competition exists on a worldwide scale. Its effects can be
seen in the
imports from foreign countries.
c) Increasing complexity of technology
Technology is used everywhere in business. Examples are bar
code scanners,
computer based airline reservation systems, automated teller
machines,
factory robots ..etc.

d) Shrinking time frames

All phases of business operations are performed
more rapidly than ever
before. (telemarketing, electronic sales orders,
just in time delivery of
raw materials ..etc)
e) Social constraints
Some products and services are found undesirable
by society. Therefore,
business decisions must be based on economic
factors, but social costs and
payoffs must be considered as well. Plant
expansion, new products, new
sales outlets and similar actions must all be
weighed in terms of their
environmental impact.
2. Improved computer capabilities
a) Size
b) Speed

PURPOSE OF MIS

Management Information Systems are primarily

concerned with the delivery of information (both internal
and external) to organizational members from the shop
floor workers to the management.
The purpose of MIS is to help the smooth running of the
business by providing information on the firms data (such
as accounting figures) employees from different levels will
then evaluate this information so that decisions can be
made to ensure that the business remains competitive and
successful.
MIS have been created to support the whole range of
business's administration and regulatory activities and
can be seen in all parts of the world and in all types of
industries both public and private sector.
In the US, for example, the National Drivers Register has
MIS facilities to report on driver license details, such as all
those within a given state whose license has been revoked
or suspended

CONCEPTUAL DESIGN MODELS OF

MIS

Process Model
2.The Logical Model of MIS
3.The Physical Model of MIS

1. The

THE PROCESS MODEL

In this model, the information system is depicted
as a collection of processes that are put together
and occur in pre-determined sequences to
gather ,capture,format,and present information.
A process is something that converts inputs into
output.
A process needs the following entities to function:
1.Methods or Procedures
2.Trained Operators
3.Knowledge of methods and Machinery
4.Materials
5.Machinery

THE LOGICAL MODEL OF MIS

MIS
Science & Technology
Management Science
Data Information Technology

PHYSICAL MODEL OF MIS

Data
Capturing
Data
Processing

Data Storage
and Retrieval

Reporting

Control
Support

Modeling&
Simulation
Decision
Support

MIS consist of several parts or sub-systems.

These subsystems interact with each other
different ways to finally produce the information
in the format desired.
The efficiency with which these modules interact
will determine the effectiveness of the MIS.
Some system are:
1.Data Capturing Model
The data capturing model is responsible for the
collection and capture of data that needed to
produce the information.
This module will vary according to the volume of
data and the complexity of data that needs to be
captured.
E.g. Bar Code

2.Data Storage (retrieval) Module

This module is responsible for storing the data capture
in the previous module.
The data must be stored such that it remains intact
and it is easily retrievable for processing.
3.Data Processing Module
This module is responsible for storing the data
captured into usable information.
A variety of processes may be used to combine the data
into information.
For E.g. in small org. manual processes may be used
notebooks, register, calculators.
In large org.,it may take an entire department to
process the information.

4. Information Reporting Module

This module is responsible for converting the output
from the Data Processing Module into meaningful
information.
This module thus take the processed data and lays it
out in a readable or usable form.
Computer may be used for both, the Data processing
and the Information Reporting modules, or for either
one of them, or for neither, depending on the size of org.
5. Decision Support Module
This module is designed to help the manager make a
decision based on the information presented .
6. Control Support Module
It enables the manager to keep control; over various
facets of the business.

This module is generally based on a feedback

mechanism, which provides information to the
manager on what is happening within the system and
allows the manager to make change during the process
to achieve the desired result.
7. Modeling and Simulation Module
This module makes it possible for a manager to see the
future of consequence of present actions.
Thus, a marketing manager may desire to know what
would happen if he dropped the price of a product by a
certain amount.
Past data is used for forecasting the future data.
This module is used basically to enhance the growth of
the business, If a manger had no such model or
simulator, he may be forced to actually take the action
after which it would be too late to take corrective action.

ROLE OF MIS
1. ensures that appropriate data is
collected from valid sources,
processed and passed to needy
destinations.
2. satisfies the needs through
Query Systems, Analysis
Systems, Modeling systems.
3. Helps in strategic planning,
Management control, Operational
control & Transaction Processing.
Hence, MIS plays a vital role in management, administration &
operations of an organization.

In Operational Management
Day to Day operation of the business.
It needs information on day to day basis to
perform the operations.
Mis provide such information on a daily or even
hourly basis to the Operational Management to
enable it to control the operations.
In Middle Management
o Concerned with short term goals, problem
solving, progress monitoring and short term
target setting.
o In Top Management
o Long term growth
o SWOT
o Company goals and objectives

Can be compared to the role of heart in

the body. Information is blood and MIS is
the heart.
The different information requirement at
different levels in the organization.

IMPACT OF MIS
1.

With a good support of MIS, marketing, finance, production &

personnel management becomes more efficient.

2.

MIS gives better understanding of business.

3.

A two-way communication flow is greatly enhanced by MIS. The

management freely tells its employees their jobs, and the ways and
means in which they are to accomplish the tasks entrusted to them.
The employees also in turn discuss their doubts, concerns and
problems.

USERS OF MIS

Every person in organization is the user of MIS.

User tools

Clerk

Generation of data
Searching for a data
Submitting it higher level
managers

Integrating data
action-oriented
information tools Analyzing data
plays the role of decisions maker
& planner
Officer
Decision making
Strategic planning
tools
Decision Making
Executive
Manager
The users of MIs use GUI, multimedia, imaging, internet to
make use of MIS efficiently.

MIS: Support to Management

The management process is executed through different decisions

taken at each step of management.

Steps in Management

Decision

Planning

A selection from various alternatives

like strategies, resources, methods

Organization

A selection for goals, people,

resources, methods

Staffing

Providing manpower

Directing

Choosing methods from various

methods

Coordinating

Choice of tools and techniques for

coordinating efforts

Controlling

A selection of exceptional conditions

and he decision guidelines

MIS: SUPPORT TO
Environment
MANAGEMENT
Management
Goal Setting
Planning

Organizing

Staffing

Directing

Information Support

MIS

Coordinating Controlling