UNIT- 1

Information and Management

Definition of Data and Information

Data: Data is the raw material with which we start
action.
Example :1. When a house wife buys milk every morning ,
she writes in a notebook the number of liters she
bought is called data.
2. Day to day collection of present.

 Information:
It is a processed data which is used to trigger certain
actions or gain better understanding of what the data
implies.
Information is the finished product
Example:
With reference to above e.g. of data, At the end of the month she
adds the data in the notebook and multiplies it by the price per
liter :- The result is the information
At the end of semester get the report of no. of days present that is
called information

Charactertics of data and information:-- One must collect only necessary data and not redundant data .

Types of information
The same data may be processed in different ways to
obtain different types of information.
Example:- A small retail grocery store owner. He would like to
know some information:Which item in his store are about to be finished and need to be reordered
Which items are sold fast so more supply can be arrange
Which item are not sold so remove them
Which bill sent to customer are unpaid
How much daily sale and trend in sales
Which supplier have the competitive prices
Profit or loss at the end of the year
-These question only when the business is small

When the business is large

The information required by the store owner may be

classified into the following categories:
1. Strategic Information :- ( Long Range decision)
This is the information needed for long range planning and
directing the course the business should take.
Strategic planning is small and is difficult to obtain
Example:- to decide whether to expand his business by stocking
new varieties of items in his store.

2. Tactical Information :- ( Short Range decision)

This is the information needed to take short range decision to run
the business efficiently.
It requires specially designed processing of data.
The volume of tactical data is more than strategic data.
Example:- Information the payment of bills by customer may be
used to decide appropriate credit limits to be given to customer

 3. Operational Information :- (Day to Day Operation)

This is the information needed for day- to-day operation of a
business organization
The volume of operation data is more than tactical data.
Example: The list of items out of stock on a particular day would be
used to trigger the action of ordering item
4 Statutory (Legal) Information: Information and reports which are required by law to be sent to
government authorities are normally clearly specified and
require straightforward processing of data.

What is mean by MIS??

Concept : - The Concept of MIS has evolved over a period of time. The
initial concept of MIS was to process data from the organization and
present it in the form of reports at regular intervals to the management. It
is also popularly known as information system, information and decision
system, the Computer-based Information System

Definitions :

MIS has more than one definitions as below

MIS defined as a system which provides information support for
decision making in the organization.
MIS is defined as an integrated system of man and machine for
providing the information to support the operation, the management
and the decision- making function in the organization.
MIS defined as a Computer based information System.

Why do we need a computer based system???????

Or
Source, Values and Control of Information
The size of organization is becoming larger
Computer-based processing enables the same data to be
process in many ways so manager can look at the
performance from different angles.
As the volume of the data increase and the variety of
information and their timeliness is now of importance. So
computer-based information processing has now become
essential for efficiently managing organization
Organization are now distributed with many branches.
Markets are becoming competitive

 The general socio-economic environment demands more up

to date and accurate information
Example organization have to interact with many other
interested parties such as consumer groups,
environmental protection groups etc which did not exist
before.
All the above development demand decision
making based on up to date, well analyzed and presented
information so computer based information system is
required.

Implication of Information in Business

Or
Management Structure

Chief Executive
Marketing, Finance,
HR Manager

Middle Level Manager

Marketing decision, Budgeting,
Recruitment

The middle level manager will in

turn have many assistants who
are responsible for specific dayto day operation .They are
know are Line Manager.

Line Manager
-------------------

Volume of information
Strategic
Planning
And policies

Tactical Short Range Policies

Type of information

Condensed (Strong) Unstructured

Summarized

Reasonably
Structure

Operation Day-To Day Policies

Detailed

Structured

Management and Information Requirements or

MIS Need for Information System
1. Human Resource Management
Goal :-HRM Required information system for the best use of available
Human Resource in the organization.
Following Different types of information used in HR department.
1 Strategic Information
Long range human resource requirements at different levels
Policies on wages and incentive.
Policies on human resource development and training
Policies on personal welfare and facilities
2 Tactical Information
Performance appraisal
Demographic make-up of personal and its impact on retirement

Continue

Production incentive and relation to productivity

Morale of personnel
Absentee(Time waster) reduction
Leave and overtime policies
Personal Deployment policies.

3 Operational Information
Routine assessment
Skills inventory
Loans / advance and recoveries
Leave records

2. Production Management
Goal:- Production Management Required information system for
Optimize men, machines and materials for maximize the production.

1 Strategic Information
Yearly and monthly production quotes and alternate schedules
Policies on machine replacement, augmentation (increase) and
modernization
Information on the introduction of new production technologies
Identifying best product mix.

2 Tactical Information
Identifying and controlling areas of high cost
Identifying critical bottlenecks in production
Identifying alternate production schedules based on tools person
etc
Performance measure of machine to decide for replacement

Continue
3 Operational Information
Monitoring up to date production information
Preventive maintenance schedule of machine
Monitoring tools, machines and human resource
availability.
Scheduling better production dynamically

4. Finance Management
Finance management requires information management
to ensure financial viability(feasibility) of the organization,
enforce financial discipline and plan and monitor the
budget.
1 Strategic Information
Methods of financing
Pricing Policies
Tax planning

2 Tactical Information

Variance between budget and expenses

Large outstanding payment/receipts
Credit and payment status
Cost increase and pricing
Impact of taxation on pricing

Continue.
3 Operational Information

Periodic Financial reports

Budget status to all functional managers
Tax returns
Share Registration and transfers
P/L A/c
Payment and Receipts
Payroll provident funds accounts
Calculation of direct costs, overhead cost.

5. Marketing Management
Marketing management requires information system to
maximize the sales and ensure customer satisfaction
1 Strategic Information
Search for new markets and marketing strategies
Analysis of competitors strategy
2 Tactical Information
Advertising techniques and analysis of their impacts
Customer preference surveys
Correlation of prices and sales
Sales force deployment and targets
Exploring alternate marketing channels.
Timing of special sales persons.

Continue.
3 Operational Information
Sales analysis by regions, customer class, sales person
Sales target versus achievement
Market shares and trends
Seasonal Variations
Effect of model change
Performance of sales outlets
Costs of sales operation and benefit.

Qualities of information
Quality

How to Ensure Quality

Accurate

Ensure correct input and processing rules

Complete

Include all data

Trustworthy

Do not hide unpleasant information

Timely

Give at right time

Up
Up--toto-date

Include all data up to present time e.g. News paper

Relevant

Understand use needs

Brief

Summarize relevant information

Significance
understandable

User attractive format and graphics charts

e.g. News paper

Various Function in organization

All organization are divided into many departments or sections,
with each department having an assigned functional
responsibility.

Example of University
Vice Chancellor
Academic departments

Student Accounts Purchase Stores Hostel Medical

Sections Sections Sections Sections Sections Sections

Central administration

Works
Human
Miscellane
Sections Resource ous
Sections Sections

Figure 1 Hierarchical chart of offices in university

Table 1 Functions of various department of a University

Administrative offices

Functions
Students admission records

Academic records

Placements

Student Section

Account Section

Purchase Section

Payroll

Scholarships

University budget

General ledger of receipts / payments
Order Processing

Vender selection

Issues/Receipts

Stock register maintenance

Issues

Receipts

Mess records

Room assignment

Residents data

Hostel purchases / stores

Hostel Section

Medical Section

Medical Records
Medicine purchase/stores

Building construction

Maintenance of electrical installation and water supply

Maintenance of roads, gardens

Works Section

Human Resource Section

Miscellaneous Section

Recruitment

Personal records (leaves , possession)

Assessment of employees

Mailing
Telephones
Transport

2. Example - Information processing for a Store

The important functions for a store are

To keep an up to date ledger containing stock positions

Start reorder of items whose stock is below a specified limits
Update stock ledger register when item are received
Answer enquiries regarding availability of items in store.
In computer based system all this information are stored in
a magnetic disk.
To store the data in a computer based system it is necessary to
assign unique code for each item in the shop.
The unique code assigned to each items is known as the key of the
item record and identifies the record
After that decide no. of fields for each data item.
The fields are organized as a record and stored in a database . This is
Primary or Master file

Continue
Once the record format for each item in the shop is determined, one
record is created for each items in the shop. These records are entered
manually by data entry operator who enters the records using a
keyboard of a terminal connected to the computer. This is called online data entry
Data may also be entered on a separate computer such as Personal
Computer (PC) and stored on a floppy disk. This is called Off-line Data
Entry
In offline data entry the data entry machine is of low cost.
In Online data entry terminals should be timesharing. In it data is
appropriate for inserting ,deleting, or correcting some record in the
database

Characterize between Offline and Online data entry

Off line entry is used when data to be entered is very large, so number of
machines are used for data prepared, checked and corrected.
If data is small than PC it self is used for data entry and processing.
Before data is stored in the disk file it must be ensured that any errors
made during data entry is detected and corrected. This is done by a
program called and edit program and control total checking program.

Key in record

Stock
records
Or
New item
received

Data Entry
Operator

Edit

Store in stock
Ledger

Control Check

Program
On
Computer

Accepted
Records

Figure 2 Master file creation / update

Disk File
Master File

 A request for retrieving a record from a Master file is called as a

transaction
If each request is processed as and when it arrive and the terminal on
which the request is enter is connected to the computer , then the
processing method is called On-Line Transaction Processing (OLTP).
Another method for processing requests is batch processing.
A number of requests arriving during a day are collected and formed into a
batch. The data is enter and create a offline floppy disk. This floppy disk
can then be used to enter requests on the computer which has the Mater
file. The entire batch is processing and outputs is printed .this mode of
processing is called batch processing

Summaries the operations Performed in stores

information System

Varieties of Information Systems

The routine data processing method to obtain operational information is
known as DPS (Data Processing System)
Data abstracted from routine processing are further processed using well
thought out rules to obtain tactical information. Such system is called
MIS.
Operational data collected over a period of time is called data archives
and the process of collecting it is called data archiving.
Analyzing archived data to observe patterns which assist in management
decision making is called data mining.
Information from multiple source in an organization are normally present
in summarized forms such as graphs and charts to aid top management to
take strategic decision. Such a System are called Decision Support
Systems (DSS)

Meaning of IT & its Impact on society

The revolution in computing and networking giving rise to new technology
known as Information technology.
It revolution not only affected individuals but affected the organization in
structure and work culture.
Advantage All these revolutions created new opportunities , reduced costs, saved
time, enabled fast processing of information and decision making.
The computing made processing of data faster, and networking made
the processed data and information sharable to all in network.
Disadvantage
Individual became a highly productive resource , but faces new
problems like loss of privacy, depersonalization, increased stress and
stress related health problem, reduced direct human interaction due
to working in virtual mode affecting the relationships between the
individuals.

Impact of IT on Society
Social Aspect

Nature of impact

Target & Nature of Effect

1. Privacy

Risk of loosing confidentiality of

personal or company inform.

Exposure to Personal
Data, Financial Data,
Health data

2. Work
Culture

Stressful, Demand Continuous

improvement in skills ,Unlimited
in time

Health affected, social

interaction reduced

3. Job
opportunities

Reduced job opportunities,

Demand technology enabled skills
and competencies.
Dehumanization of process due to
process automation

Standard of living very

high for some and some
are not affected. Time
spent on learning and
unlearning

4. Market

Consumer more
Consumer behavior more
knowledgeable. Raises and dynamic and irregular.
changes customer
requirement and
expectations

[Link] and
Organization

Strategic and competitive.

Demands innovation and
creativity in every aspect of
business. Risk exposure has
increased

Organization became rise

and smooth .
Employees became
knowledgeable worker.
Customers and vendors
became business partners.

Impact of IT on Privacy
Privacy is the right of individual to hold back certain
information about self without disclosure and allow it to be
collected with the consent (permission) with the assurance
that it would remain protected from illegal access.
An individual information could be about Credit/Debit card,
Email Address, Telephone no., Qualification/skills/experience,
Bank Account number and so on.
Business execution: In the process of business execution, data about individual is
collected as a requirement for processing the transaction.

 For e.g.
Medical Store:When a medicine is sold to the patient
name of the hospital
Doctor treating and prescribing the medicine
Doctor registration number are recorded by law
Processed before the medicine is sold.
Airlines: Personal information
Hotels information
Travel information
Other Business Applications:More and more application in business, government and
society are becoming IT enabled, and individuals personal data
about self, property, family, vehicles owned, medicines prescribed,
hospitals visited for treatment are subject to privacy violation and
then for misuse for wrong purpose.

Most of E-business application run on Internet and web platform.

Applications to track location, actions taken, password used,
purchase made etc. information can easily downloaded.

Privacy Violation
IT is capable of finding access to this data, download
and process it in some manner and create an information set about
an individual without the knowledge of that individual. This is
termed as privacy violation or breach of privacy.

 When such possibility is seen , it is ethical (only right to ) on

the part of website or E-commerce site owner to take care for
that.
We discussed about an individual who stand alone in the
society,
But such an individual could be an employee of the
organization, and then the employee is being screened for
various purposed by the organization to monitor and control
movement, use of time, visits at different location and so on.
All such employees are given electronics badges or ID cards to
use for gaining access to various locations. A Centralized
system collects this data and can be used for finding how
employee spend time usage and movement data is for time
management and resource control, it should not be used for
wrong selectivity. Then is then a violation of discrimination
laws and also a privacy violation

Protecting privacy is your responsibility and with some precautionary measure

, actions are to be taken by an individual as under:
Check why personal data is required?
Get commitment on what use it would be put to?
Declare a choice where data is not use without your permission
Do not give Credit card ,Pan number to any one.
Sign a privacy Agreement /Contact with the organization

IT industry advocated certain standards right practices to safeguard

the privacy of information:
No secret record should be maintained about individuals after
its use.
No use can be made other than that of specified original
purpose.
If any other use is required then obtain individual permission .
Allow individual a right of inspection and correction
Organization and processing system is responsible for the
integrity of the secret data.

Ethics
Ethics is a study of the principles and practices which guides
the action taken is normally right or wrong.
Ethics is about values and human behavior.
Both are regulated by various legal provisions and can be
enforced through courts.
When IT solution is thought and designed it is necessary to
check whether it is legally reasonable along with technical,
operational and economic feasibility.
Respecting ethical values means making a beginning to
protect generally accepted individual human rights.

 The rights are.

Rights for healthy life and work safety.

Right for privacy.
Right for private intellectual property ( Information & knowledge)
Right to descent.
Right to fair treatment and no discrimination (bias).
Right to be treated by just due process.

Being ethical means making ethical choice of IT solution and be responsible,

accountable and liable for action and consequences.
Privacy protection is best achieved by ASSOCIATION OF COMPUTING
MANUFACTURES (ACM) code of ethics that limits access to database and
other information.

 Organization Leadership imperative (req.)

I.
Clear Social responsibilities of members of an organizational unit
and encourage full acceptance of those responsibilities.
II. Manage personnel and resources to design and build information
systems that increase the quality of working.
III. Acknowledge and support proper and authorized use of
organizations computing and communicating resources.
IV. Ensure that users and those who will be affected by a system
have their needs clearly expressed during the assessment and
design of requirements.
V. Express and support policies that protect the dignity of users and
others affected by computing system.
VI. Create opportunities for members of organizations to lean the
principles and limitations of computer system.

Copyright
Copyright act protects intellectual property for long
time from copying by others.
The protection is applicable against copying part or full
in any manner.
If this act is violated then it attracts heavy penalty.
Weakness: It does not protect the idea behind product and its use.
So if somebody use the idea and develop new product
then it is not copying.

Patents
A patent grants the owner of the product
excusive monopoly on the ideas behind the
product for number of years.
It sufficiently protecting the interests of owner
or inventor of the product.

Challenges to intellectual Property

Rights
Information stored in electronic media can easily
replicated, altered and reorganized in a new format
making it difficult to prove that it is theft.
With the use of internet and network distribution of
books, CDs,DVDs become very essay it does not
recognize the information is copyright or not.
Web pages are constructed using many objects like
Logo, Text Content, Article extract, links,
advertisements etc. Each objects are owned by
different owner so its difficult to determine who is the
owner of the web page, and how compensation can be
determined and paid for each objects.

Impact of IT on the Work-Place

How IT affects the workplace with negative impacts??
Due to artificial intelligence programmes the individuals
analytical and decision-making skills are getting rusted,
and work and work place is become boring.
With no interaction, individuals are isolated , it will
affecting human behavior. It has also created health
hazards due to continuous working on systems and
applications under stressful conditions.
The personal interaction between human beings reduce
so work place become so boring. All the transactions,
conversions, communications are automated.
Another area where Information and Information
technology has made a negative impact when it is used to
measure workers performance, behavior and personal
characteristics.

There is no angriness if technology is used in following

manner: Monitor, watch and measure only those personal factors
which contribute for the achievement of business
objectives.
Before implement such programmed involve concerned
persons, seek their acceptance through training and
explaining the purpose behind such monitoring program.
Allow persons to access the record built and the program
used to built to win there confidence.
Use recorded data to improve the efficiency of the person ,
and do not use it to punish or to find fault or to
discriminate.
Following are the conformed observation about how
technology affecting the worker and work place.

Table-2 Technology , Impact and Solution

Technology

Impact

1. Use of smart ID button

You can be found wherever you

are.
Result loss of privacy

2. Access anywhere through

Network Management
programmes.

Loss of personal information, Loss

of privacy

3. Uninterrupted use of
PC/Work station

Eye damage, pain in your back,

deadness in finger etc.

Solution
Technology does
not offer any
meaningful visible
solution to all
these problems.

Accountability and Liability

On area which is still remain as indistinct is Accountability
In the event of damage or injury who should be held
accountable and who is liable to pay compensation.
In the event of occurrence of disobey , following problem
arise: Pinpointing the location and users.
Isolating cause, affect and damage and printing it on one
agency.
Assigning clearly the cause of damage to hardware, system
software, application software, user, owner of the
information an so on.
Difficulties in imagine the probable causes and creating
contingent protective mechanism

Impact Of IT on quality of life

It change the decision making hierarchy structure in organization
because people are empowered with information and knowledge.
Only strategic decisions are in the hands of senior.
Due to IT business are become so dynamic and people affected
by such have to adjust very fast. Those who can not adjust has to
suffer from work stress.
The concept of houses, family and office life is slowly getting
abolish. Because now hoses become office due to IT.
IT has given birth to new crime called as cyber crime or internet
crime
Eg.
1. Spamming
2. Hacking
3. Jamming
4. Sending virus
5. Sniffing (intercepting and collecting personal or key information
using software and communication network.

 Due to IT society is divided into two parts

One having access to technology
Other with no access.

This division of society is called Digital

Divide
The digital divide is similar to divide known as
Have and Have Nots

What are the sources of poor Qulity

information system

QUESTIONS..

Explain different types of information. How these information are useful in

Human Resource Management.
Explain the types of information in depth. What are the information needs for
Human Resource Management and finance management?
What do you mean by privacy? What is its impact on IT? What are the possible
technical solution for privacy protection?
Define information and Management Information system. Why there is need
to computer based information system?
Explain different Qualities of information.
What are the different functional management areas in large university.
Diff. between OLTP AND OFTP
Diiff. Between online data entry and offline data entry
stoppage

 What is mean by ethics? Explain ACM code of conducts for IT.

Explain Following terms

Dehumanization of process
Professional ethics
Copyright and patents
Accountability and liability
Digital Divide
Intellectual property
IS quality and impact
Privacy violation