MIS (Management Information System) PDF

MIS: AN OVERVIEW  Today the need for updated information has become inevitable to arrive at an effective decision in all walks of life. Whether it is industry, commerce, banking, education, economics or politics, information is needed everywhere.  Inf...

MIS: AN OVERVIEW  Today the need for updated information has become inevitable to arrive at an effective decision in all walks of life. Whether it is industry, commerce, banking, education, economics or politics, information is needed everywhere.  Information is live as it is required to be updated all the time and is renewable.  The exponential growth of information makes it necessary that information is MANAGEMENT collected, stored and retrieved in various - viewed as be function, a process, a fields when needed. profession and a class of people. It refers to the kind of task and activities that are What is MIS ? perform by managers.  Management Information System is a The specific nature of the activities is determined computer based information system which by such managerial functions: is basically concerned with processing data  Planning into information which is then  Organising communicated to the various departments  Directing in an organization to support the  Controlling operations, the management and the decision making function in the The management can be group into 3 hierarchical organization. levels:  Top or Strategic management Objectives of MIS:  Middle or Tactical management 1. Facilitate: The decision making process by  Junior or Operational management furnishing information in the proper time frame. INFORMATION 2. Provide: It requisite information at each level of  Information: Information, in MIS, means the management to carry out their functions. processed data that helps the management in planning, controlling and 3. Help: In highlighting the critical factors to the operations. closely monitored for success  Data means unstructured raw facts, observations or unevaluated messages in 4. Support: Support decision making in both isolation. Data involves facts and figures. structured and unstructured problem Information on the other hand is like a environments. finished product. 5. Provide: Provide a system of people, computers, and procedures, interactive query facilities documents for collecting, storing, retrieving and transmitting information to the users. Notarte-Pascual-Paule SYSTEM Types of Management Information Systems:  A system is an orderly grouping of 1. Transaction processing system, (TSP): The interdependent components linked system designed for processing day to day together according to a plan to achieve a transactions in an organisation is called TPS. This specific objective. system deals with collecting and processing a large volume of data. Managers often use these Components of Information System: systems to deal with such tasks as payroll,  Input customer billing and payments to suppliers.  Processor  Output 2. Knowledge Management Systems (KMS): help  People businesses create and share information. These  Hardware (physical devices) are used in a business where employees create  Software (information processing new knowledge and expertise - which can then be instructions) shared with other people in the organization to create further commercial opportunities.  Data  Network (communication channels) 3. Decision support system (DSS): specifically designed to about the possible outcomes of to help Input: The data or information that is entered into management make decisions in situations where the system for processing. there is uncertainty about the possible outcomes of those decisions. Processor: The component that processes the input data according to specific instructions to 4. Executive Support Systems (ESS): designed to produce meaningful information help senior management make strategic decisions. ESS typically involves lots of data Output: The information that is produced by the analysis and modeling tools to help strategic system after processing the input data. decision-making. People: The users who interact with the 5. Office Automation Systems (OAS): try to information system and are involved in its improve the productivity of employees who need to operation and management. process data and information. Wide range of software systems that exist to improve the Hardware (Physical Devices): The physical productivity of employees working in an office (e.g. equipment used to perform the system's functions. Microsoft Office XP) or systems that allow employees to work from home or whilst on the Software (Information Processing Instructions): move. The programs and applications that perform specific tasks and process data according to set instructions. How is a Management Information System Useful in Companies? Data: The raw facts and figures that are processed to generate meaningful information.  Planning and Control : MIS improves the quality of plants by providing relevant Network (Communication Channels): The information for decision - making. MIS communication systems that enable data to be serves as a link between managerial transferred between different components of the planning and control. It improves the ability information system. of management to evaluate and improve performance. Notarte-Pascual-Paule   MS Minimizes Information Overload : MIS  This process brings a high degree of changes the larger amount of data into professionalism in the business operations. summarized form and therefore, avoids the  Since the goals and objectives of the MIS confusion which may arise when managers are the products of business goals & are flooded with detailed facts. objectives, it helps indirectly to pull the  MS Encourages Decentralization : entire organisation in one direction towards Decentralization of authority is possibly the corporate goals and objectives by when there is a system for monitoring providing the relevant information to the operations at lower levels. MIS is people in the organisation. successfully used for measuring performance and making necessary BENEFITS OF MIS change in the organizational plans and  Data can easily be accessed and analyzed procedures. without time consuming manipulation and  Costs : Invest in a consultant to help define processing, your core requirements that include  Decisions can be made more quickly and information for strategic planning and with confidence that the data are both time- project management. To be useful and relevant and accurate. successful, a management information  Integrated information can be also kept in system should focus on company products categories that are meaningful to profitable and services, customers, operating costs, operations. marketing opportunities and the company's  Significant cost benefits, time savings, exposure to risk. productivity gas and process re-  MIS brings Coordination : MIS facilitates engineering opportunities are associated integration of specialized activities by with the use of data warehouse for keeping each department aware of the information processing problem and requirements of other IMPACT OF MIS departments. It connects all decision 1. EFFICIENCY IN MANAGEMENT centers in the organization 2. DEFINING DATA ENTITY AND ITS ATTRIBUTES  MIS assembles, process, stores, retrieves, 3. SYSTEMIZING BUSINESS OPERATIONS evaluates and disseminates the 4. STREAMLINING OPERATIONS AND DESIGN COMPLEXITY information. 5. IMPROVES THE ADMINISTRATION 6. IT PROMOTES PROFESSIONALISM Impact of the Management Information System 7. ALIGN ORGANIZATION WITH GOALS  With a good MIS support, the management BENEFITS OF MIS of marketing , finance, production and 1. EASY DATA ACCESS AND ANALYSIS personnel becomes more efficient. 2. FASTER AND CONFIDENT DECISION MAKING  The MIS begins with the definition of a data 3. ORGANIZED AND MEANINGFUL INFORMATION entity and its attributes, respectively, 4. COST BENEFITS, TIME SAVINGS, AND PRODUCTIVITY GAINS. designed for information generation in the organisation.  The MIS calls for a systemisation of the business operations for an effective system design.  This leads to streamlining of the operations which complicate the system design.  MIS improves the administration of the business by bringing a discipline in its operations as everybody required to follow and use systems & procedures. Notarte-Pascual-Paule