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Introduction To MIS: Lecture-1

1. Management Information Systems (MIS) is the application of information systems to solve business problems and provide information to support management decision-making. 2. The document defines MIS and discusses its objectives of capturing, processing, storing, retrieving, and disseminating data to users in an organization. 3. MIS has key characteristics like taking a systems approach, being management-oriented, needs-based, exception-based, future-oriented, integrated, and having common data flow and long-term planning. It aims to provide a central database to support the organization.

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35 views

Introduction To MIS: Lecture-1

1. Management Information Systems (MIS) is the application of information systems to solve business problems and provide information to support management decision-making. 2. The document defines MIS and discusses its objectives of capturing, processing, storing, retrieving, and disseminating data to users in an organization. 3. MIS has key characteristics like taking a systems approach, being management-oriented, needs-based, exception-based, future-oriented, integrated, and having common data flow and long-term planning. It aims to provide a central database to support the organization.

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ljjb
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Lecture-1

Introduction to MIS
Management Information Systems (MIS), referred to as Information Management and Systems, is
the discipline covering the application of people, technologies, and procedures collectively called
information systems, to solving business problems.
“'MIS' is a planned system of collecting, storing and disseminating data in the form of information
needed to carry out the functions of management.”
Academically, the term is commonly used to refer to the group of information management methods
tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert
Systems, and Executive Information Systems.
Management : Management is art of getting things done through and with the people in formally
organized groups. The basic functions performed by a manager in an organization are: Planning,
controlling, staffing, organizing, and directing.
Information : Information is considered as valuable component of an organization. Information is
data that is processed and is presented in a form which assists decision maker.
System : A system is defined as a set of elements which are joined together to achieve a common
objective. The elements are interrelated and interdependent. Thus every system is said to be composed
of subsystems. A system has one or multiple inputs, these inputs are processed through a
transformation process to convert these input( s) to output.

1.1 MIS DEFINITION:


The Management Information System (MIS) is a concept of the last decade or two. It has been
understood and described in a number ways. It is also known as the Information System, the
Information and Decision System, the Computer- based information System.
The MIS has more than one definition, some of which are give below.
1. The MIS is defined as a system which provides information support for decision making in the
organization.
2. The MIS is defined as an integrated system of man and machine for providing the information to
support the operations, the management and the decision making function in the organization.
3. The MIS is defined as a system based on the database of the organization evolved for the purpose
of providing information to the people in the organization.
4. The MIS is defined as a Computer based Information System.

Thought there are a number of definitions, all of them converge on one single point, i.e., the MIS is
a system to support the decision making function in the organization. The difference lies in defining
the elements of the MIS. However, in today.s world MIS a computerized .business processing system
generating information for the people in the organization to meet the information needs decision
making to achieve the corporate objective of the organization. In any organization, small or big, a
major portion of the time goes in data collection, processing, documenting it to the people.
Hence, a major portion of the overheads goes into this kind of unproductive work in the organization.
Every individual in an organization is continuously looking for some information which is needed to
perform his/her task. Hence, the information is people-oriented and it varies with the nature of the
people in the organization.

The difficulty in handling this multiple requirement of the people is due to a couple of reasons. The
information is a processed product to fulfill an imprecise need of the people. It takes time to search
the data and may require a difficult processing path. It has a time value and unless processed on time
and communicated, it has no value. The scope and the quantum of information is individual dependent
and it is difficult to conceive the information as a well-defined product for the entire organization.
Since the people are instrumental in any business transaction, a human error is possible in conducting
the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred per
cent quality assurance of information in terms of completeness, accuracy, validity, timeliness and
meeting the decision making needs.

In order to get a better grip on the activity of information processing, it is necessary to have a formal
system which should take care of the following points:
Handling of a voluminous data.
Confirmation of the validity of data and transaction.
Complex processing of data and multidimensional analysis.
Quick search and retrieval.
Mass storage.
Communication of the information system to the user on time.
Fulfilling the changing needs of the information.
The management information system uses computers and communication technology to deal with
these points of supreme importance.

1.2 Objectives of MIS


1. Data Capturing : MIS capture data from various internal and external sources of organization.
Data capturing may be manual or through computer terminals.
2. Processing of Data : The captured data is processed to convert into required information.
Processing of data is done by such activities as calculating, sorting, classifying, and summarizing.
3. Storage of Information : MIS stores the processed or unprocessed data for future use. If any
information is not immediately required, it is saved as an organization record, for later use.
4. Retrieval of Information : MIS retrieves information from its stores as and when
required by various users.
5. Dissemination of Information : Information, which is a finished product of MIS, is disseminated
to the users in the organization. It is periodic or online through computer terminal.

1.3 Characteristics of MIS :


1. Systems Approach: The information system follows a systems approach. Systems approach
means taking a comprehensive view or a complete look at the interlocking sub-systems that operate
within an organization.
2. Management Oriented: Management oriented characteristic of MIS implies that the
management actively directs the system development efforts. For planning of MIS, top-down
approach should be followed. Top down approach suggests that the system development starts from
the determination of management’s needs and overall business objective. To ensure that the
implementation of system’s polices meet the specification of the system, continued review and
participation of the manager is necessary.
3. Need Based : MIS design should be as per the information needs of managers at
different levels.
4. Exception Based : MIS should be developed on the exception based also, which
means that in an abnormal situation, there should be immediate reporting about the
exceptional situation to the decision –makers at the required level.
5. Future Oriented : MIS should not merely provide past of historical information;
rather it should provide information, on the basis of future projections on the actions
to be initiated.
6. Integrated : Integration is significant because of its ability to produce more
meaningful information. Integration means taking a comprehensive view or looking
at the complete picture of the interlocking subsystems that operate within the
company.
7. Common Data Flow : Common data flow includes avoiding duplication,
combining similar functions and simplifying operations wherever possible. The
development of common data flow is an economically sound and logical concept, but
it must be viewed from a practical angle.
8. Long Term Planning : MIS is developed over relatively long periods. A heavy
element of planning should be involved.
9. Sub System Concept : The MIS should be viewed as a single entity, but it must
be broken down into digestible sub-systems which are more meaningful.
10. Central database : In the MIS there should be common data base for whole
system

1.4 ROLE OF THE MANAGEMENT INFORMATION SYSTEM:


The role of the MIS in an organization can be compared to the role of heart in the
body. The information is the blood and MIS is the heart. In the body the heart plays
the role of supplying pure blood to all the elements of the body including the brain.
The heart works faster and supplies more blood when needed. It regulates and
controls the incoming impure blood, processes it and sends it to the destination in
the quantity needed. It fulfills the needs of blood supply to human body in normal
course and also in crisis. The MIS plays exactly the same role in the organization.
(1) The system ensures that an appropriate data is collected from the various
sources, processed, and sent further to all the needy destinations. The system
is expected to fulfill the information needs of an individual, a group of
individuals, the management functionaries: the managers and the top
management.
(2) The MIS satisfies the diverse needs through a variety of systems such as
Query Systems, Analysis Systems, Modeling Systems and Decision Support
Systems the MIS helps in Strategic Planning, Management Control,
Operational Control and Transaction Processing.
(3) The MIS helps the clerical personnel in the transaction processing and
answers their queries on the data pertaining to the transaction, the status of a
particular record and references on a variety of documents. The MIS helps
the junior management personnel by providing the operational data for
planning, scheduling and control, and helps them further in decision making
at the operations level to correct an out of control situation.
(4) The MIS helps the middle management in short them planning, target setting
and controlling the business functions. It is supported by the use of the
management tools of planning and control. The MIS helps the top
management in goal setting, strategic planning and evolving the business
plans and their implementation.
(5) The MIS plays the role of information generation, communication, problem
identification and helps in the process of decision making. The MIS,
therefore, plays a vita role in the management, administration and operations
of an organization.

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