CONCEPT OF MIS

Management “Management can be defined as a science of using resources rationally (utilization of resources in judicious manner using appropriate skills, approaches and techniques) and economically to achieve the desired results or meet the targeted performance level ” A manager may be required to perform the following activities-  Determination of organizational objectives and developing plans to achieve them.  Securing and organizing human and other resources in order to achieve the desired objectives.  Exercising adequate control over the functions.  Monitoring the results to ensure that the targeted goals are achieved as per the plan.

THE STRUCTURE OF MIS CAN ALSO BE DESCRIBED IN TERMS OF THE ORGANIZATIONAL FUNCTIONS AS DEPICTED ABOVE STRATEGIC PLANNING MANAGEMENT CONTROL OPERATIONA L CONTROL TRANSACTION PROCESSING PRODUCTION MARKETING LOGISTICS PERSONNELFINANCE INFORMATION PROCESSING TOP MANAGEMENT ACTIVITIES Management Activities

Information “ Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or progressive decision” A data processing system processes data to generate information. The quality of information determines the quality of action or decision. The data information cycle can be expressed as – 1. Idea 2. Data 3. Information 4. Knowledge 5. Intelligence The source and destination for any information can be – International, National, Industry, Corporate, Department and Individual.

System “ A system can be defined as a group of inter-related, often interacting units that together perform a task in a synchronized manner to provide the desired result” Some of the examples of the system could be –  Solar system: The sun and the celestial bodies that revolve around it.  Respiratory System: Describe organs involved in act of breathing.  Hydraulic System: Group of interacting mechanical or electrical components.  A business is also a system where resources such as people, money, material, machines etc., are transformed by various organization processes into goods and services.

What is MIS? MIS is  An integrated (computer-based) user-machine system  Provides information  Supports decision-making functions  In an organization a logical, well-structured method of collecting information,processing those and disseminating to decision-makers is known as MIS

Definitions of MIS ® “A system of people, equipment, procedures, documents and communications that collect, validate, operate on different transactions and present data for use in planning, budgeting, accounting, controlling and other management process.” ® “A system that aids management in making, carrying out and controlling decisions.” ® “An MIS  applies to all management levels;  is linked to an organizational sub-system;  functions to measure performance, monitor progress, evaluate alternatives or provide knowledge for change or collective action; and  is flexible both internally and externally.”

Computer based Information System Computer based information system is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store and process data into information. Components of CBIS ® Hardware is computer peripherals used to perform input, processing, and output activities. ® Software is the computer program that governs the operation of the computer. ® Database is an organized collection of facts and information. ® Telecommunications involves the electronic transmission of signals; enables organizations to carry out their processes and tasks through effective computer networks. ® Procedures are the strategies, policies, methods, and rules for using a CBIS.

MIS Characteristics ® System Approach  Takes Comprehensive view in the light of its objective ® Management Oriented  Top down approach followed  Derived from the over-all business objectives ® Need Based  Caters to information needs at different levels ® Exception Based  Exception based reporting principle

® Futuristic ® On the basis of projections ® Integrated ® Blends info from several operational areas ® Common Data Flows ® Should avoid data duplication and redundancy ® Long Term Basis ® Strive to be futuristic ® Divide and Conquer ® Use partitioning into subsystems ® Central Database  Let subsystems access the master data MIS Characteristics

Why is MIS Important? ® MIS affects all areas of business  Manufacturing  Accounting & Finance  Human resources  Marketing  Top management ® Performance evaluations—expectations

MIS Functions:  Data capturing  Processing of data  Storage  Retrieval  Dissemination of Information – finished product of MIS

Limitations of MIS ® The quality of the outputs of MIS is largely governed by the quantity of inputs and processes. ® MIS is not a substitute for effective management. It is merely an important tool in the hands of executive for decision-making and problem solving. ® MIS may not have enough flexibility to quickly update itself with changing needs of time, especially in fast changing and complex environment. ® MIS cannot provide tailor-made packages suitable for the purpose of every type of decisions made by managers.

® MIS takes into account only the quantitative factors. Non-quantitative factors like morale and attitude of the members of the organization, which have an important bearing on decision-making process, is conveniently ignored. ® MIS is less useful for making non-programmed decisions. ® The effectiveness of MIS gets reduced in the organization of the type where information sharing is not adopted as culture. ® MIS effectiveness decreases if there is frequent change of guards at the top management and/or frequent alterations in the organizational structure or the operational team. Limitations of MIS