Assignment MIS
Assignment MIS
Assignment MIS
Name
Areeba Zaki
Enrolment No
PRVENO-5734
Subject
Semester
storing, and disseminating data in the form of information needed to carry out the
functions of management.
A management information system (MIS) is an organized process which provides
past, present, and projected information on internal operations as well as external
intelligence to support decision making.
"An
integrated
user-machine
system
for
providing
information
to
support
currently being used in a decision-making process and usually are taken from the
historical records that are recorded and filled without immediate intent to retrieve
for decision-making.
Information consists of data that have been retrieved, processed or otherwise used
for information or interference purpose, argument or as a basis forecasting or
decision-making regarding any business unit. Information is knowledge that one
derives from facts for effective functioning of systems placed in the right context
with the purpose of reducing uncertainty regarding the alternative courses of action
as they are based on description and measurement of attributes of various entities
associated with the enterprise.
3. SYSTEM: The system can be described as a set of elements joined together for a
common objective. A subsystem is a part of a larger system with which one is
concerned. All systems for our purpose the organization is the system and the parts
(divisions, departments, functions, unit etc.) are the subsystem.
Management Information System is generally defined as an integrated usermachine system for providing information to support operations, management and
decision-making functions in an organization. The system utilizes computer
hardware and software, manual procedure, models for analysis. Information is
viewed as a resource much like land, labor and capital. It must be obtained
processed, stored, manipulated and analyzed, distributed etc. An organization with
a well-defined information system will generally have a competitive advantage over
organization with poor MIS and no MIS.
The MIS has more than one definition, some of which are given below:
I. The MIS is defined as a system which provides information support for decisionmaking in the organization.
II. 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.
III. 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.
planning,
organizing,
coordinating,
directing
and
controlling
MIS is needed because The purpose of MIS is reporting and is to provide the
necessary information to the managers and supervisors at various levels to help
them to discharge their functions of organizing, planning, control and decision
making.
MIS is a scientific way of collecting; processing, storing and communicating
information relating to the various activities of an organization to the various levels
of management so that management may be facilitated in discharging its functions
efficiently and run the organization in an efficient manner for the betterment of all.
MIS enhances the quality of management and growth of the organization by
providing timely, accurate and meaningful information for planning, organization
and control, No management can ever succeed without continuous appraisal of its
performance and MIS by providing timely and meaningful information can be helpful
in this regard. MIS should be developed keeping in mind the information needs of all
managers and it should be based on cost- benefit analysis. It should be designed in
such a way that it covers all aspects of the organization and it should be flexible to
meet changing management needs and changing inputs.
Management information system is a system designed in an organization to provide
right information at the right time to facilitate managerial decision making. The
need for management information system has arisen because managerial decision
making has become very complicated due to fast changing economic, political,
social, and technological changes.
The old techniques of decision making such as intuition, rule of thumb etc. are no
more relevant and useful in the process of decision making. Modern managements
assemble both quantitative as well qualitative information which can be used for
analyzing the pros and cons of various alternative courses of actions and thereby
facilitating the best course of action. Thus, modern management functions are
information oriented. Therefore, it is very difficult to manage effectively without an
efficient management information system.
Information processing beyond doubt is the dominant industry of the present
century. Following factors states few common factors that reflect on the needs and
objectives of the information processing:
Increasing impact of information processing for organizational decision
making.
Dependency of services sector including banking, financial organization,
health care, entertainment, tourism and travel, education and numerous
others on information.
Changing employment scene world over, shifting base from manual
agricultural to machine-based manufacturing and other industry related
jobs.
Information revolution and the overall development scenario.
Growth of IT industry and its strategic importance.
Hardware
Without software, the hardware wouldn't be very useful. Software, the second
element of a CBIS, is what tells the hardware how to function. It gathers, organizes
and manipulates data and carries out instructions. Everything you do using a
computer is done by the software.
Data
People are the most often overlooked and most important part of a computerbased information system. It is people who design and operate the software, input
the data, build the hardware and keep it running, write the procedures and it is
ultimately people who determine the success or failure of a CBIS.
Communication
Communication is left out of some lists of CBIS elements, but for a CBIS that
involves more than one piece of hardware to function, communication or
connectivity is a necessity. This is, in part, because parts of it are covered under
hardware. The components that allow one computer to communicate with another
are hardware and are controlled by software. If communication between people is
included in this element, though, it is an important element.
The role of MIS in managerial decision making
ii.
Tactical management: Business unit managers and business professionals in selfdirected teams
i.
ii.
ii.
Decision maker at different levels of the organization are making more or less
structured decisions. Typically there are three types of decision structure:
Unstructured decisions (usually related to the long-term strategy of the
organization);
Semi-structured decisions (some decision procedures can be pre-specified but not
enough to lead to a definite recommended decision);
Structured decisions (the procedure to follow, when a decision is needed, can be
specified in advance).
Earlier in this course we discussed the concept of system as a set of interrelated
components, with a clearly defined boundary, working together to achieve a
common set of objectives. With respect to the information system, it can be any
organized combination of people, hardware, software, communication networks,
data resources, and policies and procedures that stores, retrieves, transforms, and
disseminates information in an organization.
There are three vital roles that information systems can perform for a business
enterprise: support of business processes and operations, support of decision
making by employees and managers, and support of strategies for competitive
advantage see the figure below-
of the organization, where the decision making situations are more structured and
better defined.
Decision Support Systems (DSS) are computer-based information systems that
provide interactive information support to managers and business professionals
during the decision-making process. DSS use analytical models, specialized
databases, a decision maker's own insights and judgments, and an interactive,
computer-based modeling process to support semi-structured business decisions.
Executive Information Systems (EIS) or Executive Support Systems (ESS) are
information systems that combine many of the futures of MIS and DSS. Here the
information is presented in forms tailored to the preferences of the executives using
the system, such as graphical user interface, customized to the executives graphics
displays, exception reporting, trend analysis, and abilities to 'drill-down' and retrieve
displays of related information quickly at lower levels of detail.
Specialized Processing Systems (PS) are information systems characterized as
functional business systems, strategic information systems, knowledge
management systems, and expert systems.
It is important to realize that business applications of information systems in the
real world are typically integrated combinations of all these types of information
systems. In practice, all these different types and roles of information systems are
combined into integrated or Cross-Functional Business Information Systems that
provide a variety of functions. Thus, most information systems are designed to
produce information and support decision making for various levels of management
and business functions, as well as perform record-keeping and transactionprocessing chores. Whenever you analyze or work with an information system, you
probably see that it provides information for a variety of managerial levels and
business functions. This will be explain and demonstrated in greater details in
Lectures 7 to 12 of this course.
The figure below illustrates the scope of the managerial challenges and
opportunities facing business managers and professionals in effectively managing
information systems and technologies.
Now that we have seen that management information systems (MIS) are used to
organize and process information, this information can be used to make decisions in
an organization or business. MIS reports summarize or aggregate information to
support decision-making tasks. MISs provide reports in many different ways. For
example, MISs Reports can be periodic, summarized, exception,
comparative and ad hoc.
So, once a company has created a database, managers have to mine data which
should be stored and processed in this database. Data mining is a task of using
sophisticated technology to retrieve and evaluate data in a database to
identify useful trends. If data is well mined and managed, it can help a business
discover patterns in the sale of specific goods and services, it can also help a
business find new customers, track customer complaints, requests and also
evaluate cost of production and operation.
The process of making decisions in an organization is not easy, we have different
types of decisions, and these include; structured decisions and non structured
decisions. So, to simplify the all process of decision making, business managers
and owners need to use different types of information systems to speed up the
decision making process. Below I have listed some detailed points on how to use
information systems to make decisions in an organization or business.
1. Decision Support Systems: By definition, a decision support system is an
information system which provides data to business managers or owners to make
decisions and choose a course of action. The primary objective of DSS is to
improve your effectiveness as a decision maker by providing you with assistance
that will complement your insights. DSS retrieves data from a database in an
analyzed manner to facilitate the decision making process with in an
organization, DSS is made up of different types of tools and software, every
business or organization uses a different type of Decision support system
software to retrieve and process data.
A decision support system is commonly referred to as an interactive information
technology system which is designed to support decision making when the problem
is not structured. A Decision Support System has three components and these
include; (Data management component, Model Management component and User
Interface Management component), in brief, let me explain about each of these
components of a decision support system.
Model Management component: This one consists of both the DSS models
and DSS model management system.
health of the organization itself. The recent information revaluation has pushed
information systems to center stage of modern management. Getting a competitive
advantage balancing market strength, increasing market shares, acquiring more
attractive finance, introducing new products and services, reaching out to more
customers and quickly gaining customers preferences are achieved through MIS.
The information support for functional areas of management such as Production,
Marketing, Finance, Personnel and services is an absolute necessity. In
manufacturing organizations, the production function occupies a central role. The
role of this function is to control the entire production and operation function
consisting of design, location and layout, product design, operation, production
planning and control, material management, quality control, cost control etc. 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 point
Handling of a voluminous data.
Confirmation of the validity of data and transaction.
Complex processing of data and multi-dimensional analysis.
Quick search and retrieval.
Mass storage and fulfilling the changing needs of the information.
Communication of the information system to the user on time
The MIS uses computers and communication technology to deal with these points of
supreme importance. It goes without saying that al managerial functions are
performed through decision making for taking rational decisions, Management
Information is essential and is procured through the Management Information
System setup by the organizations. Success of an organization in achieving its
predetermined goals and objectives lies in timeliness and quality, that is to say
effectiveness of its MIS. In todays world of ever increasing complexities of business
as well as management, every organization to survive and grow must have an
efficient and effective MIS. An effective Management Information System supplies
accurate, relevant and timely information to the manager of an organization.
Management Information Systems are of vital importance for all kinds of
organizations. These come handy to managements by providing management
information at various stages of decision making and thus greatly help the
organizations to achieve their predetermined goals and objectives.
These ideas can be used for creating data driven, scalable enterprise information
systems. This incorporates the features of an expert system in providing the
customer or end user with maximum encapsulation of technical data and much
improved decision-making capabilities within the system. The developed Machining
Expert for handling nontraditional machining (NTM) data can also be extended with
suitable design extensions to handle business logic by interacting with the end user.
Bo Yan, Yiyun Chen, Guangwen Huang [14] introduces the main content and
operation flow of the tax management information system as well as main functions
of its subsystems. Then we describe the general structure and technical
implementation strategy of the application system.
Four major functionality of logistical management information system is illustrated
in this paper such as integrated principle, level principle, structure principle,
relevant principle and purpose principle. The architecture of management
information system illustrates the major parts of the system such as user interface,
server interface and applicable database system. The management information
system is widely used in the logistics area and it improves the efficiency of logistical
activities. It will be more and more advance and widely using in the logistics.
the right form at the right cost. MIS is a system having a combination of persons,
machines , procedures and data base as its elements, which gather data from the
intra and extra sources of an organization and after processing these data supply
management information to the managers in an organization to support the
decision making process of the management. According to Davis Gorden B, the
diagrammatic representation of the concept of MIS can be shown in figure-1.
Functional Uses of MIS is to enhance the Quality of our operations, Quality of our
services and we achieve efficiency, transparency and Speedy Decision making. The
term MIS is composed of three elements viz. Management, Information and System.
In order to understand the concept of MIS, let us describe these components
separately
A. Management
It is the process of getting things done through and with people. A manager in an
organization gets the thing done by performing five basic functions such as
planning, organizing, staffing, directing and controlling. To perform above functions,
a manager has to take a variety of decisions. Thus, decision making is a
fundamental pre-requisite for each of the foregoing process. Whatever a manager
does, he does it through decision making. In brief decision making is the essence of
management. Robert B Anthony described three levels of business activities carried
out in operating an organization as shown in figure-2.
1. Operational Control (Operating Management).
2. Management Control (Middle Management).
The first level strategic planning processes determines what markets or businesses
the company should be in at present or plant to be in the near future. The next
level, management control includes processes or functions that facilitate the
management of those processes delegated to the operational control level. The
bottom level, operational control indicates processes performed to control the basic
product or services produced by the company. It is concerned with individual tasks
or transactions, such as procurement or raw material as per prescribed quantity and
quality, selling of products to specific customers.
B. Information
The word information is a processed data, useful or relevant data, data with surprise
value, data which is useful in the decision making process. Information is a concept
unique with reference to its receiver, i.e. the same data may convey different
meaning (information) to different people. Information contains an element of
surprise, reduces uncertainty and triggers off action. The relation of data to
information is that of raw material to finished product. Quality of information is
determined by the way it is used. Decisions are often made with incomplete
information such as Needed information is not available, Getting needed
information is costly/time consuming, No knowledge about availability of
information, Information is not available in the needed form.
5.Strongly Disagree). After the data collection was over, the scoring was done by
assigning a numerical value of 5 to the most favorable Strongly Agree position on
the scale, 4 to the next most favorable Agree, 3 to the Neutral, 2 to the Disagree
and 1 to the Strongly Disagree. Thus all the responses obtained were converted in
quantitative data, which were further subjected to tabulation, analysis and
interpretations.
TABLE I. USAGE OF MIS MEDIUM SCALE AND LARGE SCALE ORGANIZATIONS
An analysis of Table-II indicates that the various possible reason for non-use of MIS
in medium scale and large scale organizations. The main reason for non-use of MIS
in medium Scale organizations is limited use of computers has been attributed to
unawareness of potential activities which a computer can handle and incomplete or
no information about MIS, lack of awareness and benefits of MIS, inadequate
training provided to employees etc.,. As tabulated in table-II the calculated values of
standard deviation for each possible reason lies very close to the calculated values
of average. So the deviation is not much to the average values calculated i.e. the
reasons from the respondents what we have received are appropriate for the nonusage of MIS in those organizations.
B. Advises to the Management of the Organizations
Before implementing the MIS to any industry it is necessary to study the existing
system in the industry in detail, the roles played by the manager for better
decisions making, to stream line the vast information system to improve the
productivity of an industrial plant. Management Information System is management
oriented, the designing of Management Information System takes care of the
managers who meet the information requirements. Any suitable database
management system is used to design the Management Information System as per
the requirement of the management. The development of the system starts after
deciding the management needs and keeping in view the overall objectives of the
Every organization to survive and grow must have an efficient and effective MIS. An
effective Management Information System supplies accurate, relevant and timely
information to the manager of an organization.
V. CONCLUSION
As per the survey conducted reveals that comparatively MIS is not being used much
by medium scale organizations and not completely in large scale organizations. In
order to increase the usage of MIS in the organizations which are not making use of
MIS there is a necessity to build up computer culture by properly creating
awareness about potential computer applications and the benefits thereof to the
employees, The management should invest money to procure computers and
related systems which are required and proper training / seminars etc., should be
conducted to employees to cope up with the system. This in turn, increases the
usage of MIS in those organizations. In management of almost all operational
activity, the information forms a major input and as such for effective
implementation of futuristic information system in overall system, it is essential to
modify the existing management. An effective MIS supplies accurate, relevant and
timely information to the manager of an organization.