MANAGEMENT INFORMATION SYSTEM MANAGEMENT INFORMATION SYSTEMMANAGEMENT INFORMATION SYSTEM —#4‘ LEVELS OF MANAGEMENT Strategic information For long term planning Top imaniagements For making control related Tactical information decisions Mita For making day to day decisions & short term Operational information lanningMANAGEMENT INFORMATION SYSTEM _—#4 \=— Information at various level of management. To run the business organization successfully a manager has to work in different functional area of planning. organizing . staffing . directing & controlling. To perform these activities efficiently and effectively he needs information. The specific need varies from level to level. Information can be gathered from internal As well as external environment. 1) Top Level management:- The non programmed (unstructured) decision making process are found here that are required to design and redesign the entire system The information need of top management from external environment is more. Top management needs information from external environment like economics political & social aspect ete and on the internal functioning of the organizational subsystem. Tt nee historical information along with ongoing or current information which is generated through forecast. The information used is futuristic and external in natur are non-programmed & strategic . The decision at this levelMANAGEMENT INFORMATION SYSTEM _—#4 \=— Middle level:- Middle level is concerned with elaboration .classification and transformation of organizational goal into action plan and policies It formulate the operating policies and procedures for the guidance of supervisory staff. It needs the information for short term planning. Informationis internal in nature. Operational level:- It is concerned with the implementation of operational plan. policies and procedures for converting the inputs to output . Decision are routine in nature and taken by manager and are mostly programmed and function and proce: this level are standardized and structured. Amt of structure:- means the amount of human judgement and evaluation required in the activity Structured activities Unstructured activities Require little require considerable judgement ,evaluation judgement ,evaluation & human creativity and human creativityMANAGEMENT INFORMATION SYSTEM _#4 \=— NATURE AND SCOPE OF MIS MIS extract the management concept from various disciplines such as accounting, computing, organizations, management and operations to provide management solutions to the organization This interdisciplinary nature of MIS allow us to consider MIS both as art and science. Tech : Bee sine ss LES MARKETING marrage Management Dnforortion SystertsMANAGEMENT INFORMATION SYSTEM —#14 \=—MANAGEMENT INFORMATION SYSTEMMANAGEMENT INFORMATION SYSTEM _—#4 \=— MANAGEMENT- Managementis the art of getting things done through an individual or group of individuals to achieve the goal and objective of the organization efficiently. The key person involved in the management of an organization is the manager. The main task of management are:- Planning-It involves establishing organizational goal & developing strategies to achieve goal. It bridges the gap between where we are and where we want to go. Following questions are answered at the time of planning process:- *What to do? *When to do? *Who is to do? *How is it to be done? *Where is it to be done. *Why it is to be done?MANAGEMENT INFORMATION SYSTEM _—#4 \=— Organizing: It refer to grouping of people activities in order to facilitates the achievement of organizational goal. It involves identifying the activities divide them into convenient jobs and delegating the authority to each individual so that the job is carried out as planned. Staffing: It is the process of putting the right person at right job. This involves recruitment- defining the requirement for the people with respect to the job to be done, Selection- selecting the right person for the position, Training & development- train them so that they can accomplish their task efficiently and effectively. Directing:- It is the process of activating the plan, structure and group efforts in the desired direction. It is needed for the implementation of plans by providing the desired leadership,motivation and proper communication. Controlling:- Evaluating the resources & controlling the organizational resources.MANAGEMENT INFORMATION SYSTEM _—#4 \=— Controlling:- Controlling is the mode of checking the progress of plans and also correcting any deviations that may occur along the way. It involves *Fixing the standard for measuring the work performance. *Measurement of the actual performance *Comparing the actual with standards & find the deviations. *Taking the corrective actions INFORMATION.:- Data is a set of isolated raw facts, figures ,statistics unrelated and uninterpreted . Information is the result of processed data It is defined as the data which can be organized and presented so that the decision maker may take necessary action. This relationship can be explainedas follow:- MIS is the acronym of two terms viz Management Information (MI) and system. MI refer to the quality of information in terms of its timeliness, accuracy, completeness ,relevance adequacy ,explicitness. Thus MIS provide the information which is required by mgt for decision making.MANAGEMENT INFORMATION SYSTEM _—#4 \=— SYSTEM-- System means an organized relationship among the functioning units or components. System can be definedas set of elements joined together for a common objective. Or System is a group of interrelated components working towards a common goal by accepting input thereby producing output in an organized transformation process. When the feedback and control are attached to any system to make it self- regulating and self monitoring it is known as Cybernetic system.MANAGEMENT INFORMATION SYSTEM _—#4 \=— ML-Management Information means Information regarding management. 'S:- Management System means basic structure of management like hierarchy IS: Information system which provides information SM: System Management means how to manage a system SI: System Information. information regarding system like what are the different parts of system IM: Information Management means how to manage a particular information.MANAGEMENT INFORMATION SYSTEM #44 i\=— INFORMATION SYSTEM AT VARIOUS LEVEL OF MANAGEMENT Top/Strategic Level ESS-Executive support system Encore tivo} Be y Tactical /Management MIS-Managementinformation level system DSS-Decision supportsystem TSS-Transaction support system CAS-Office automation system KWS-Knowledge work system Operational informationMANAGEMENT INFORMATION SYSTEM _—#4 \=— Executive support System:- Used by top level management to make strategic decision by using internal & extemal information. Decision support system:-It is responsible for taking decision under uncertain conditions .It collect data from MIS .TPS & external sources to reach at the best alternative. Management information system:-It basically deals with internal level information. It retrieve information from TPS & then summarize the information to generate report. Knowledge work system:-Used_by operational level managers and require technical knowledge and expertise Office Automation system:-It involves storing data, electronic transfer of data & information management of the organization. Transactional Processing system:-required at operational ‘level to perform their business operation. Type of TPS are “Sales marketing system, Manufacturing system, finance system, Human resource system & other systems.MANAGEMENT INFORMATION SYSTEM Q. What do you understand by MIS? Ans. Management Information system is a well structured method which combine the principles ,theories and practices of management and plays an important role in business organization for planning and decision making process. MIS is an integrated system which collects, maintains, correlates and selectively displays information to meet the specific need of various level of managementMANAGEMENT INFORMATION SYSTEM According to G.B. Davyis:- A management information system is an integrated user machine for providing information , to support the operation management analysis and decision making function. The system uses :- 1) Computer hardware & software 2) Manual procedure 3) Model & analysis, planning ,control and decision making 4) a database.MANAGEMENT INFORMATION SYSTEM According to Jarome kanter:- MIS is a system that aid management in making , carrying out and controlling decisions. Here MIS is a system that aid management in performing the job. In other words we can define MIS as a system that consist of people ,equipment, procedure together , sort ,analyze ,evaluate and distribute timely & accurate information to decision makerMANAGEMENT INFORMATION SYSTEM _—#4 \=— CHARACTERISITICS OF MIS 1. Management Oriented:-MIS is to provide the information support to the management in the organization for decision making. It means that the efforts for the development of the information system should start from an appraisal of management needs and overall business objective. It may be individual or collective goals of the business organization. It serves all the level of management in an organization i.e. Top , Middle and operational level 2, Need based MIS design and development should be as per the information need of managers at different level viz Strategic planning level, Management control level and operational level. In other words MIS should cater to the specific needs of managers in an organization hierarchy.MANAGEMENT INFORMATION SYSTEM _—#4 \=— 5. Exception Based:- MIS should be developed on the exception — based reporting principle which means an abnormal situation i.e. the maximum , minimum or expected value vary beyond tolerance limits. In such situation , there should be exception reporting to the decision maker at the required level. 4. Future Oriented: Besides exception —based reporting, MIS should also look future . In other words MIS should not merely provide past or historical . Information rather it should provide information on the basis of projection based on which actions may be initiated. 5, Central Database:- It is the mortar that hold the functional system together. Each system require access to the master file of the data covering inventory , personnel vendors, customers etc. If the data is stored efficiently and with the common usage in mind , one master file can provide the data needed by any of the functional system. It seems logical to gather data once, to properly validate it and to place it on a central storage medium that can be accessed by any other system.MANAGEMENT INFORMATION SYSTEM _—#4 \=— 6. Sub system concept:- The process of MIS developmentis quite complex and one is likely to lose insight frequently. Thus the system though viewed as a single entity, must be broken down into digestible sub system 7.Long Term Planning :- MIS is developed over relatively long period. Such system do not developovernight. A heavy element of planning is involved. The MIS designer must have the future objectives and needs of the company in mind. The designer must avoid the possibility of the system going obsolete before its time. 8. Integrated:- It is necessary characteristic of a management information system. Integration is significant because of its ability to produce more meaningful information Ex. In order to develop an effective production scheduling system, it is necessary to balance such factors as:- a) Set up cost. b) Workforce c) Overtime rates d) Production capacity e) Inventory level f) Capital requirement g) Customer Services.MANAGEMENT INFORMATION SYSTEM _—#4 \=— FUNCTIONS OF MIS Transact Proesig Syters erage Iomaton Stes Collecting data Processing data Storing information Retrieving information Disseminating information { wsFues | FILES “I ARONMANAGEMENT INFORMATION SYSTEM _—#4 \=— It is set up by an organization with the pair objective to obtain management information to be used by its managers in decision making. Thus MIS must perform the following in order to meet its objectives. 1. Data Capturing :- MIS capture data from the various internal and external sources of an organization data. Capturing may be manual or through computer terminals . End users typically ,records data about transactions on same physical medium , such as paper form or enter it directly into a computer system. 2. Processing of Data:- The captured data is processed to convert it into the required management information . Processing of data is done by such activities as calculating ,comparing ,sorting , classifying and summarizing . These activities organize ,analyse and manipulate data using various statistical ,mathematical ,operations research and /or other business model. 3. Storage of information:- MIS stores processed or unprocessed data for future use. If any information is not immediately required it is saved as an organizational record. In this activity data and information are retained in an organized manner for later use. Stored data is commonly used into fields , records files and databases.MANAGEMENT INFORMATION SYSTEM 4. Retrieval of information:- MIS retrieve information from its stores as and when required by various users. As per the requirement by various users the retrieval of information is either disseminated as such or it is processed again to meet the exact MI demand. 5 . Dissemination of Information:- \nformation which is finished products of MIS is disseminated to the users in the organization . It could be periodic ,through reports or online through computer terminal.MANAGEMENT INFORMATION SYSTEM #414 \=— Evolution of MIS Earlier one Man show *Now Globalization Increase need for Information Why MISis required 1, Dynamic and competitive nature of Market 2. Globalization of resources 3. Increasing complexities of business organization 4. Information RevolutionMANAGEMENT INFORMATION SYSTEM —#A4 \= Earlier all business were mostly local and small in operation. A single individual could perform all the functions of its own. MIS operated manually in which human being were major source for providing information . He know how much stock he had , how much surplus he had made ete. But over the year business grew in size and complexities from sole trading to global competition from one or two commodities to several thousand products from localized operations to global competition. Therefore business start growing and along with growth business complexities also increases. Civilized system of state government also require the business of keeping accounts and paying dues to the state. So the chief executive of the firm has to depend upon the reports for information. as it is very difficult to use all the facilities. Here arises the need for full fledged information system that keep him informed of his cooperation activities. So Why MIS is required:- *Dynamic and competitive nature of market. *Globalization of r “Increasing complexities of business organization +The information revolution. sourcesRYE an na MANAGEMENT INFORMATION SYSTEM _—#4 \=— Benefits of management information system:- It provides timely and accurate scientific.reliable and permanent information. . It avoids duplication of efforts. . Coordinate the whole organization. . It provides the information in form and formats required by the information system. . It helps in making the better and scientific decisions by the management. . Speed of processing and fast retrieval of data is possible. . The scope for the use of information system has expanded information to remote area usersNe a MANAGEMENT INFORMATION SYSTEM _—#4 \=— Limitations of MIS:- . The quality of the operations of MIS depends on the quality of the input process. . MIS is nota substitute for effective management. _ MIS may not have requisite flexibility to quickly updateitself with the changing needs of time. . MIS cannot provide tailor-made information packages suitable for the purpose of every type of decision made by executives. . MIS takes into account only quantitative factors. It cannot consider the qualitative factors like moral and attitude of managers. which have the major impact on the decision making by the managers. . MIS is less useful in non-programmed decisions which are not routine nature. MIS is not useful where secrecy is maintained in disseminating information to their workers. . The effectiveness of MIS is also affected or reduced in case of a change in top management organizational structure and operational team.MANAGEMENT INFORMATION SYSTEM _—#4 \=— Transaction Processing system:- Transaction is any event or activity that affect the organization. The type of transaction varies from organization to organization But all the firms have to process some type of transaction as a major part of their business activity. The most successfull firm carry out the work in an orderly and efficient manner. Transaction processing:- is a set of handling the transactions. TPS can perform the following functions:- «Storing transaction data to create file of transaction record. *Sorting .sequencing or arranging records. “Merging the content of two or more files «Performing calculation on the file data «Accumulating amount of develop summary total Storing data for future use. ‘Retrieving stored data *Displaying or printing out data and report from the files for use by employees and managers Data Processing DataMANAGEMENT INFORMATION SYSTEM _—#4 \=— Transaction Processing system(TPS):- It lies at the operational level of management. It is responsible for recording & processing of data resulting from business transaction. It provides the base for MIS,DSS& EIS. It comprises data entry, listing or recording. sorting —merging and updating It records the transactions in both the way Online mode:- Each transaction is recorded at the time of its occurrence. Batch mode:- updating the files periodically. It perform the routine and repetitive type of tasks.Input Processing Output Users Goal Decision & support MANAGEMENT INFORMATION SYSTEM _#4 \=— Comparison of TPS & MIS TPS Transaction/events Data entry , listing , sorting , merging & updating Detailed report list, summary transaction Operational personnel , Lower level manager , supervisors Records and process transaction Provide decision support to lower level managers MIS Output from TPS Routine reports, simple models, low level analysis Summary & exception report Middle level manager Production of summary & exception reports Provide decision supports to tactical level managerMANAGEMENT INFORMATION SYSTEM _—#4 \=— Decision support system: Decision means to “Cut off’ or “Come to a conclusion”. More precisely decision is a course of action consciously selected from available alternatives to achieve the desired course of action. According to Scott Morton:- DSS is an interactive computer based system which help decision maker to utilize data and model to solve unstructured problems. It is an intelligent support system designed to provide information to Top and middle level mangers to make decisions that require judgement and intuition. It uses the sophisticated analysis and modeling toolsInput Processing Output Users Goal Decision & support MANAGEMENT INFORMATION SYSTEM _#4 \=— Comparison b/w MIS & DSS Mis Output of TPS Extraction & manipulation of business data Periodic,exceptions demand and past reports and responses Middle level manager Production of summary and exception reports Provide information about the performance of the organization Dss Output of TPS & MIS Low volume data Analytical modeling of business data Interactive queries and responses Top Level manager’ Ad-hoc query handling Provide decision support technique to analyse specific problem /opportunitiesMANAGEMENT INFORMATION SYSTEM _—#4 \=— Executive information system:- * — Itis hybrid Information system of both MIS & DSS. *Purpose of EIS is to provide the Top management with immediate and easy access to information about the firms critical success factors. *EIS provide the tailor made information to end user to serve their diverse needs. sEIS uses the graphical method to represent the things so it stresses the graphical user interface. elt is a user friendly information system that lay emphasis on presentation summary information and integration of internal and external information. *ESS also stresses trend analysis and exception reporting.MANAGEMENT INFORMATION SYSTEM _—#4 \=— Expert System: An Expert system is computer based information system in which knowledge is presented data , in which processing of knowledge is directed primarily by computer programs. Artificial intelligence + Information system= Expert system It is the knowledge about a specific area to act as an expert system to the user. Tt is not the replacement of human being rather they help them in using their expertise more efficiently. It has three components-Knowledge base. the inference engine and user inference. Tt is used in the field of medicines. physical science and business. Expert system employs human knowledge captured in a computer to solve problem that ordinarily require human expertise. These can be used by Non-experts to improve their problem solving abilities. ES becomes a knowledgeable assistant to human expert Such system can work better than any single human being.MANAGEMENT INFORMATION SYSTEM _—#4 \=— Office Automation System (OAS) Office Automation system refers to the use of mechanical, electrical and electronic devices to enhance communication in the workplace and increase the efficiency and productivity of the knowledge workers and clerical workers . Office automation includes:- 1. Work processing:- it is the use of an electronic device that automatically perform many of the tasks necessary to create the written documents such as letters, memos and reports that are directed to the manager. 2. Electronic mail:- electronic mail popularly known as E-mail is the use of a networked computer that allows user to send, store and receive messages using the computer terminals and storage devices. It sends mail electronically from one computer to others. 3. Voice mail:- voice mail is just like electronic mail and performs storing .accessing retrieving and distributing messages using the telephone. 4. Electronic calendaring:- it is the use of networked computer to store and retrieve a manager’s appointment calendar. 5. Audio conferencing:- audio conferencing is the use of voice communication equipment to establish an audio link between geographically dispersed person for conducting a conference.6. a MANAGEMENT INFORMATION SYSTEM _—#4 \=— Video conferencing:- video conferencing is the use of television equipment to link geographically dispersed conference participants to engaged in face to face communication. The equipment provides both the audio as well as video linkage Computer conferencing:- computer conferencing is the use of network computer to all the members of a problem-solving team to exchange the information concerning the problem being solved. Facsimiles transmission:- facsimiles transmission popularly known as fax is the transfer of written information by use of special equipment that can read a document image at one end of communication channel and make a copy at the other end. Desktop publishing-- desktop publishing is the use of computer to prepare output -using software with sophisticated publishing capabilities. 10. Ete.mR ae een MANAGEMENT INFORMATION SYSTEM Questions. Define:- Management information system, transaction processing system, decision support system, executive support system, expert system. Evolution of MIS. Characteristies/ objectives of MIS Functions/role of MIS. Advantages of MIS Disadvantages of MISMANAGEMENT INFORMATION SYSTEM Thanks