Scribd
Upload
55 views32 pages

The Role of Management Information System (MIS) in Organization/Departments

Compliance with regulations Outputs: Reports on staffing, training, compensation, compliance etc.

Uploaded by

Pavi Ravi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
55 views32 pages

The Role of Management Information System (MIS) in Organization/Departments

Compliance with regulations Outputs: Reports on staffing, training, compensation, compliance etc.

Uploaded by

Pavi Ravi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 32

The Role of Management

Information System (MIS) in


Organization/Departments

Presented By:
Mr.M.Nagabhaskar
Contents
• Data, Information and System
– Information – a critical resource
– Data and Information
– Types and Characteristics of useful Information
– System
• Information System (IS)
– Components of an IS
– Types of IS
– Interrelationship among systems
• Management Information System (MIS)
– Broader Definitions and concepts
– Output of MIS
– Functional View
– Impact of MIS
• Role of MIS in Various Department
– MIS in Production department
– MIS In HRIS
– MIS In Marketing Department
– MIS In Finance Department
Information is critical
The information we have
is not what we want,
The information we want
is not the information we need,
The information we need
is not available
Information is a Resource
It is scarce

 It has a cost

 It has alternative uses

 There is an opportunity cost factor


involved if one does not process
information
Why need Information?
To ensure effective and
efficient decision - leading
to prosperity of the
Organization.
System
• System: A set of components that work together to achieve a
common goal. Computer-based Information Systems take data
as raw material, process it, and produce information as output.
Components of an Information System
Characteristics of
Information System Capabilities

Capability Orientation Level Focus Nature

TPS Data Operational Task, Efficiency Structured


MIS Information Management control Resource Structured
DSS Decision All, strategic Alternatives Unstructured
OAS Productivity Operational Task, Efficiency Structured
EIS Problem Executive Status, Problem Flexible, easy
AI/ES Knowledge Operational Problem Structured
IOS Data Operational Task, Efficiency Structured
Types of Information Systems
Types of Information Systems
• Operational-level systems support operational
managers by keeping track of the elementary
activities and transactions of the organization, such as
sales, receipts, cash deposits, payroll, credit
decisions, and the flow of materials in a factory.
• Management-level systems serve the monitoring,
controlling, decision-making, and administrative
activities of middle managers. The principal question
addressed by such systems is this: Are things working
well?
• Strategic-level systems help senior management
tackle and address strategic issues and long-term
trends, both in the firm and in the external
environment.
Types of Information Systems
Transaction Processing System:
Basic business systems that serve the operational level.
A computerized system that performs and records the daily routine transactions
necessary to the conduct of the business
Management Information System
•Serve middle management

•Structured and semi-structured decisions

•Provide reports on firm’s current performance, based on data from TPS

•Past and Present Data

•Internal Orientation

•Provide answers to routine questions with predefined procedure for


answering them

•Typically have little analytic capability


Decision Support System

•Serve middle management

•Support non-routine decision making

•E.g. What is impact on production schedule if December sales

doubled?

•Often use external information as well as information from TPS and MIS

•Processing is interactive in nature

•Output in form of Decision analysis

•Example: Contract Cost Analysis


ESS(Executive Supporting system

•Support senior management – Strategic Level


•Address non-routine decisions requiring judgment, evaluation, and
insight
•Incorporate data about external events (e.g. new tax laws or
competitors) as well as summarized information from internal MIS
and DSS
•User "seductive" interfaces; Users' time is a premium
•What if capabilities abound
•Input in form of Aggregate data
•Processing is interactive and output in form of projections
•Examples
•ESS that provides minute-to-minute view of firm’s financial
performance as measured by working capital, accounts receivable,
accounts payable, cash flow, and inventory.
•5-year operating plan
Interrelationship Among Systems

The various types of systems in the organization have interdependencies.


TPS are major producers of information that is required by many other
systems in the firm, which, in turn, produce information for other systems.
These different types of systems are loosely coupled in most business
firms, but increasingly firms are using new technologies to integrate
information that resides in many different systems.
MIS - Definition and Concept
Right Information
To the right person
At the right place
At the right time
In the right form
At the right cost
The three sub-components
Management, Information and System
- together bring out the focus clearly & effectively.
• System emphasizing a fair degree of integration and a
holistic view;
• Information stressing on processed data in the context
in which it is used by end users;
• Management focusing on the ultimate use of such
information systems for managerial decision making.
MIS – Definition and Concept

A management information system (MIS) is system of collecting,


processing, storing, disseminating and utilizing data in the form of
information needed to carry out the functions of management.

Today, the term is used broadly in a number of contexts and includes


(but is not limited to):
– Decision support systems,
– Resource and people management applications,
– Enterprise Resource Planning (ERP),
– Supply Chain Management (SCM),
– Customer Relationship Management (CRM),
– project management and database retrieval applications
Outputs of MIS

• Scheduled reports
– Produced periodically, or on schedule (daily, weekly,
monthly)
• Key Indicator Report
– Summarizes the previous day’s critical activities
• Demand Report
– Gives certain report at manager's request
• Exception Report
– Automatically produced when a situation is unusual or
requires management action
Historic Development of MIS

• Usage was started in 1960 but very limited.


• In 1970 DSS was Introduced.
• In 1990’s strategic system was uses.
EDP : Focused on Data
OAS : Focus on communication
MIS : Focus on Information
DSS : Focus on Decision support
ESS : Focus on decision support for top
management
AI : Focus on self learning
Users of MIS
 Clerk: Clerk can use the MIS for a quick search &
reporting the same data to high-level.
 Assistant: With the help of MIS can collecting and
organizing the data and conducting a rudimentary
analysis of Integrating the data.
 Managers: MIS provide action oriented information
can be used strategic weapon to counter the threats to
business, make business more competitive.
MIS – Functional View
Sample MIS Report
Impact of MIS
• Management of marketing, finance, production and personnel becomes more efficient,
the tracking and monitoring becomes easy

• Helps in understanding of business itself, MIS begins with definition of data and its
attributes – uses data dictionary and brings common understanding of terms and
terminology in organization

• MIS calls for systemization of business operations – leads to streamlining of operations,


brings discipline in its operations everyone is required to follow

• Since the goals of MIS are driven from organization goals, it helps indirectly pulling
everyone in organization towards corporate goals by providing relevant information to
the people in organization

• MIS helps to monitor results and performances

• MIS provides alerts, in some cases daily, to managers at each level of the organization,
on all deviations between results and pre-established objectives and budgets.

• IT enabled MIS is partly responsible for the PARADIGM shift (A change, a new model,)
from support to contributing to an organizations profitability
Manufacturing MIS
Inputs to the Manufacturing MIS
• Strategic plan or corporate policies.
• The TPS:
– Order processing
– Inventory data
– Receiving and inspecting data
– Personnel data
– Production process
• External sources
Manufacturing MIS Subsystems and
Outputs
 Design and engineering
 Master production scheduling
 Inventory control
 Manufacturing resource planning
 Just-in-time inventory and manufacturing
 Process control
 Computer-integrated manufacturing (CIM)
 Quality control and testing
Human Resource MIS
Concerned with all of the activities related toemployees and
potential employees of the organization.
Inputs to the Human Resource MIS

• Strategic plan or corporate policies

• The TPS:

– Payroll data

– Order processing data

– Personnel data

• External sources
System and subsystem of HRIS
Staffing
a. personal record keeping system
b. employee skill inventory system
c. Forecasting personal requirement system
Training and development
a. performance appraisal planning
b. succession planning
Compensation
a. salary forecasting
b. incentives planning
Governmental reporting
• Personal application form
• Appointment letter
• Attendance and leave record
• Appraisal form
• Wage and salary agreement
• Record of sources of recruitment
• Industry data on Data
manpower skills performance.
resources of HRIS
• Bio-data.
• Production data.
Marketing MIS
Supports managerial activities in product development,
distribution, pricing decisions ,and promotional effectiveness.

Inputs to Marketing MIS

• Strategic plan and corporate policies


• The TPS
• External sources:
– The competition
– The market
Marketing MIS Subsystems and Outputs
• Marketing research

• Product development

• Promotion and advertising

• Product pricing
Accounting MISs

• Provides aggregated information on accounts

payable, accounts receivable, payroll, and other


applications

You might also like