1 Management: Management has been defined in a variety of ways to someone. It comprises the processes or activities that describe what managers do in the operation for their organisation-plan. organise initiate and control operations. They plan by setting strategies, goals and selecting the best course of action to achieve these plans or goods. They organise the tasks necessary for the operational plan, set these tasks up into homogeneous groups and assign authority delegation. They control the work by setting performance standards and avoiding deviation from standard.
The decision-making is a fundamental prerequisite of each of the foregoing processes, the iob of ecisions necessary for planning, organising and controlling the work and functions of the business so that specified goals of business are achieved.
2. Information: Data must be distinguished wfrom information and the distinction is clear an important for present purpose. Data are fact and figures that are not currently being used in a decision precision process and usually are taken from the historical records that are recorded and filed without immediate intent to retrieve for decision-making. An example to explain the suporting documents, ledgers and so on, comprise the source material for profit and loss statements. Such material would only be of historical interest to and external auditor and shareholders.
Information consists of data that have been retrieved, processed or otherwise used for informat or inference purpose, argument or as a basis for forecasting or decision-making regarding any business unit. Information is knowledge that one derives from facts for effective functioning of su placed in the right context with the purpose of reducing uncertainty regarding the alternative coure of action as they are based on description and measurement of attributes of various entities that associated with the enterprise.
3. System: The system can be described as a set of elements joined together for a common obiecte A subsystem is part of a larger system with which one is concerned. Here, the organisation is the system and the parts (divisions, departments, functions, units, etc.) are the subsystems.
The system concept of MIS is, therefore, one for optimising the output of the organisation by connecting the operating subsystems through the medium of information exchange.
Meaning of Management Information System: Information is the lifeblood of an organisation particularly in the case of system approach management. The MIS or information can be defined as the knowledge communicated by others or obtained from investigation or study. It is a system of providing needed information to each manager at the right time, in right form and relevant one aids the understanding and stimulates the action. MIS is an organised method of providing past-present and projection information relating to internal operations and external intelligence. It supports the planning, control and operational functions of an organisation by furnishing uniform information in proper time frame to help the process of decision-making.
Definition of MIS: Management information system is generally defined as an integrated user machine system for providing information to support operations, management and decision-making function in an organisation. The system utilises computer hardware and software, manual procedure, models for analysis. Information is viewed as a resource much like land, labour and capital. It must be obtained, processed, stored, manipulated and analysed, distributed, etc. An organisation with a welldefined information system will generally have a competitive advantage over organisation with poor MIS or no MIS.
“An organised method of providing each manager with all data and only those data which he needs for decisions, when one needs them and in a form which aids his understandings and stimulate his action.’-T.S. Grewal
A computer-based system provides flexible and speedy access to accurate data. The organisational information system which in general relates to the planning operation and control of an enterprise are the most important among these. MIS refers primarily to such organisational information system which is generally large, sophisticated, structured, dynamically evolving and of immense commercial values. A large number of programmers and system’s analysts are employed by many organisations to build a variety of MIS. Thus, the education of programmers and system analysts as well as general managers, the subject of MIS has occupied a key position in this regard.
However, the concept of MIS has not clearly been known by many developers, programmers and system analysts as well as the users, such as managers. There is a long list of misconceptions about MIS as:
1. MIS is computer-based information system.
2. Any reporting system is an MIS.
3. MIS is a philosophy.
4. MIS is a management process/technique.
5. MIS is a bunch of different information technologies.
6. MIS is an implementation of organisational systems and procedures.
Thus, MIS is a set of computer-based systems and procedures that are implemented to be managers in their routine job of decision-making and planning expansion and development
Information System: An information system is an organised combination of people, hardwa software, communication network and data resources that are known to store and retrieve and a disseminate information in an organisation.
As a business end user, you should be able to recognise the fundamental components of information systems you encounter in the real world. The means you should be able to identify:
1. The people, hardware, software, data and network resources they use.
2. The types of information products they prsoduce.
3. The way they perform input, processing, output, storage and control activities.
4. How they support the business operations, managerial decisions or competitive advantages of a business.
This kind of understanding will help you to be a better user,, developer and manager of information systems. And that, as we have pointed out iss important to your future success as a manager, entrepreneur or professional in business.
Different Types of Reports in MIS: MIS produces primarily three types of reports:
1. Routine Reports: These are produced at scheduled intervals ranging from quality control reports to the reports that are produced on monthly basis.
2. on-demand reports: out of the routine reports that is having information that is needed at different times are called as on requests for details, performance of critical activities, etc.
3. Exception Reports: The reports that are having information
that falls outside certain threshold standards are exception reports. These are made to monitor the performance of the incoming data about business transactions.
Q.6. Explain the various characteristics of MIS.
Ans. MIS is a comprehensive coordinated setofinformation subsystem which are rationally integrated and transform data into information in a variety of ways to increase productivity in conformity with the management style of working. Thus, the following are the main characteristics of MIS:
1. MIS is Management Oriented: This is the more significant characteristics of MIS. The system is designed from the top-down. This does not mean that the system development starts from an appraisal of management needs and overall business objectives. It is possible that middle management or operating management is the focus of the system, such that their needs are the cornerstone on which the system is built. For example, a marketing information system. Basic sales order processing, the shipment of goods to customers and the billing for the goods are fundamental operational control activities. However, if the system is designed properly, this transaction information can be tracked by salesman, sales territory, size of order, geography and product line. Furthermore, if designed with Strategic management needs in mind, external competition, market and economic data can be created to give a picture of how well the companys products are helping in their marketing environment and to serve as a basis of new product or marketplace introduction. The initial application can be geared to the operational and management control areas, but in such a way as not to preclude its integration into a strategic planning subsystem for upper management.
2. MIS is Management Directed: Because of the management orientation of MIS, it is imperative + actively direct the system development efforts. Involvement is not enough, that m management must determine what information is necessary to improve its control of operations. It is rare to find an MIS where the manager himself or a high-level representative of his department is not spending a good deal of time in system design. It is not a one time involvement, for continued review and participation are necessary to ensure that the implemented system meets the specifications of the system that was designed. Therefore, management is responsible for setting system specification, and it must play a major role in the subsequent trade-off decisions that inevitably occur in system development. An important element of effective system planning is the process for determining the off
application development Management must control this process if a management information system is the main objective. A company without a formal application approved cycle and a management steering committee to determine priorities, will never develop an MIS.
3. MIS is Integration: It is significant because of the ability to produce more meaningful management information. For example, in order to develop and effective production scheduling system, one must balance such factors as:
(a) Set-up cost, (b) Workforce, (c ) Overtime rate,
(d) Production capacity, (e) Inventory level, (f) Capital requirement, (g) Customer service.
A system that ignores one of these elements-inventory level, e.g. is not providing m with an optional schedule. Integration, in the sense intfended here means taking a comprehensive view or a complete look at thfe inter-locking subsystems that operate with him in a company. One dcan stat an MIS by attaching a specific subsystem but unless its place in the total system is realised and properly reflected, serious shortcomings may result. Thus, and integrated system that blends information from several operational areas in a necessary element of MIS.
4. MIS is a Common Database: The integration concept of MIS is that there is an opportunity avoid duplication and redundancy in data gathering, storage and dissemination. For example, customer orders are basis for billing the customer for goods ordered, setting up the accounts receivable, initiatinn production activity, sales analysis, sales forecasting and so on. It is prudent to capture this data closest to the source where the event occurs and use it throughout the functional areas. It is also prudent to capture it once and thus avoid the duplicate entry of source data into several systems. The development of common data flows is an economically sound and logical concept, but it must be viewed in a practical and internal procedures, may be better to live with a little duplication in order to make the system acceptable and workable.
5. MIS is Heavy Planning Element: Management information system do not occur overnight, but takes from three to five years and even longer to get established firmly with a company. Therefore, a heavy planning element must be present in MIS development. The MIS designer must have the future objectives and needs of the company firmly in mind. The designer must avoid the possibility of system obsolescence before the system gets into operation. Sound system planning is an essential ingredient to successful MIS. The MIS provides a meaningful direction towards which one strives.
6. MIS is Subsystem Concept: In tackling a project as broad and complex in scope as a management information system, one must avoid losing sight of both the forest and the trees. Even though the system is viewed as a single entity, it must be broken down into digestible subsystem that can be implemented one at a time. The breakdown of MIS into meaningful subsystem set the stage for a prioritised implementation. This subsystem analysis is essential for applying entities that can be assigned and computerised by selected system and programming teams.
7. MIS is Flexible and Easy in Use: Despite an analysis of future management information needs, it is impossible can predict that what is desired for three to five years. This is true in most industries and especially in industries with rapid change pattern. It is native to think that anyone possesse the omniscience can predict the future. With this as a premnise the next best thing as Mis developer can do is-build in the flexibility to incorporate as many future nuances as possible. Even then, happenings will surely try the flexibility boundaries of the system. Building an MIS on a solid dan foundation is a good starting point for flexibility. A feature that often that often goes with flexibility is case o This means the incorporation of features that make the system readily accessible to a wide rang s and easy to use one which they are ready to try it. The MIS should be able to incorporate usei of the improving user windows into the MIS database.
8. MIS is Database: The database is the mortar that
holds the functional systems together. Each system requires access to a master file of data covering inventory, personnel, vendors, customers, general ledger, work-in progress and so on. If the data is stored efficiently and with common usae in mind, one master file can provide-the data needed by any of the functional system. It seems logical together where data once properly validatef it and place it on a central storage medium that can be assessed by the system.
9. MIS is Distributed Data Processing (DDP): The majority of companies implementing MIS have a geographic network of sales offices, distribution points, manufacturing plants, divisions, sub-divisions and so on. Some of these entities are operated in a completely independent fashion and therefore may nokt be a part of thfe integrated MIS. MKore often than not, the remote sites do have a connection with eadch other and with a host operation. In order to create and effective MIS with geographic boundaries, some form of distributed data processing is necessary. DDP can be thught of as the delivery system, placing information in thfe hands of those who need it when they need it. DDP is an important part of MIS.