Republic of the Philippines

Southern Philippines Agribusiness and Marine and Aquatic School of Technology

Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

Course Code: AEIC 419 – Management Information Systems

Description:

This course introduces how people, technology, and organizations should co-exist. This includes the topics on
organization, management, enterprise, IT infrastructure, and building and managing systems.

Course Outcomes:
At the end of this course, you will be able to:
CO1: Be acquainted with on how information systems are used strategically and tactically in business.
CO2: Demonstrate awareness on the concept of decision making in MIS, security, and its corresponding
ethical and social issues.
CO3: Execute basic skills in using management information systems software available in the market.

Course Requirement:
Learning and Assessment Tasks

Grading System:

Quizzes 20%
Exam 20%
Requirements 60%
Total 100%

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 Republic of the Philippines
Southern Philippines Agribusiness and Marine and Aquatic School of Technology
Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

TABLE OF CONTENTS
PART 1: INTRODUCTION TO MANAGEMENT INFORMATION SYSTEMS ................................................................. 1
OBJECTIVES................................................................................................................................................................... 1
INTRODUCTION ............................................................................................................................................................ 1
DISCUSSION .................................................................................................................................................................. 1
Data vs Information ..................................................................................................................................................... 1
Information: Classification by Characteristics .............................................................................................................. 1
Information: Classification by Hierarchy ...................................................................................................................... 2
Information: Classification by Value ............................................................................................................................ 2
Information System ...................................................................................................................................................... 3
Information System: Structure ..................................................................................................................................... 3
Information System: Components ................................................................................................................................ 4
Management Information System ............................................................................................................................... 4
Management Information System: Objectives............................................................................................................. 5
REFERENCES ................................................................................................................................................................. 5
LEARNING TASK/S: ........................................................................................................................................................ 6
ASSESSMENT TASK/S: ................................................................................................................................................... 7

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 Republic of the Philippines
Southern Philippines Agribusiness and Marine and Aquatic School of Technology
Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

Part 1: Introduction to Management Information Systems

OBJECTIVES

At the end of the topic, you will be able to:

 Learn what information systems are.

 Describe the structure an information system.
 Discuss how information is relevant to the information systems.

INTRODUCTION

Information systems are one of the major tools available to business managers for achieving operational
excellence, developing new products and services, improving decision making, and achieving competitive
advantage. It is only with proper access to data and the information generated from that data, that can help
business organizations in making quick and relevant decisions.

In today’s business organizations, data and information are no longer treated as mere tools for
conducting business, rather they are considered important assets that help them in making proper and timely
decisions at various levels of management, such as decision support systems at the middle level of
management, and executive support systems at the top level of management. These decisions process data to
generate information used for various business purposes.

DISCUSSION

Data vs Information

 Data can be described as unprocessed facts and figures. It is the raw material that an organization
structure and interpret to create useful information systems.
 Information is interpreted data; created from organized, structured, and processed data in a particular
context.

Plain collected data as raw facts cannot help in decision-making. It is only when they are analyzed and
group together, they become information which is the core of information systems.

Information: Classification by Characteristics

 Strategic Information is concerned with long term policy decisions that defines the objectives of a
business and checks how well these objectives are met. Examples: acquiring a new plant, a new
product, or diversification of business.
 Tactical information is concerned with the information needed for exercising control over business
resources. Examples: budgeting, quality control, service level, inventory level, or productivity level
 Operational Information is concerned with plant / business level information and is used to ensure
proper conduction of specific operational tasks as planned/intended. Examples: Various operator
specific, machine specific, and shift specific jobs for quality control checks.

AEIC 419 – Management Information Systems

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1st Semester SY: 2021-2022
 Republic of the Philippines
Southern Philippines Agribusiness and Marine and Aquatic School of Technology
Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

Information can be withheld depending on company hierarchy. Information can be a powerful based on
how it is shared within the organization. In many cases, if information is not shared strategically, it creates
properly within teams, it creates difficulties and delays on the business processes.

Information: Classification by Hierarchy

Each of the three levels of information are involved in various business processes.

Top level or the strategic level of management makes decisions on

issues such as launching a new product into the market, deciding on
Top Level the financial issues of the business, etc.

Middle or the tactical level of management is concerned with the

process of ensuring that the decisions taken by the top or strategic
Middle Level level of management are properly implemented, and the resources
required to perform various jobs are made available to the business
organization.
Operational Level The operational level or the front-line level of management is
concerned with the actual implementation.

Based on the classification by characteristics and hierarchy, below is a sample table on how information is
usually shared within an organization.

Information Type Example Level of Management

Strategic Should a new branch be Chief Executive Officer
opened? Board of Directors
Should the business be
diversified?
Tactical How to rate vendors Middle Management
How much of each item
should be stocked?
Should new discount policy
be introduced?
Operational List of items to be reordered Line Managers
List of defaulting customers
Daily ledger accounts
List of outstanding bills to be
paid

Information: Classification by Value

 Quality of Information: The quality of information with respect to the decision maker depends on two
factors. One is the utility of information, and the second is based on the satisfaction level generated by
that information. These can be defined as follows:
 Utility of Information: Information must be evaluated in terms of its utility, including the accuracy of
information that might facilitate or retard its use. Following are the three information utilities:
 Form Utility: If the information is provided in a format that is based on the need of the decision maker,
its value increases.
 Time Utility: If information is provided when it is needed, it is of greater value to the decision
maker and thus enhances the utility of information.
 Place Utility: If information is delivered at the right place or is easily accessible, it has a greater
value.

AEIC 419 – Management Information Systems

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1st Semester SY: 2021-2022
 Republic of the Philippines
Southern Philippines Agribusiness and Marine and Aquatic School of Technology
Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

 Information Satisfaction: If the preceding three utilities are met, the decision maker will be satisfied
with the output of the information system, and this will determine the level of quality of the information.

Below table describes the characteristics of Information.

Accurate Ensure correct input and processing rules

Complete Should include all data
Trustworthy Do not hide unpleasant information
Timely Should be given at the right time
Brief Summarize relevant information
Significantly Understandable Use attractive formats and graphical charts

Information System

An information system can be defined as a system that receives the data and instruction as input,
processes data as per instructions, and generates the output known as information. Thus, it is a combination of
users, computer hardware, computer software, communication networks, and a data resource that collects,
transforms, and disseminates information in an organization.

An information system typically performs three vital roles in any type of an organization:

 supports business operations

 supports managerial decision making
 supports strategic competitive advantage

Information System: Structure

The information system function nowadays is considered as a major functional area of business and
it is equally important for the business success as other functions such as marketing, sales, finance, production,
and HR. It is also considered as an important contributor to operational efficiency, employee productivity,
morale, customer services, and satisfaction. It acts as a major source of providing information to the
management which leads to effective decision making. However, it also poses a big challenge as it requires a
high level of investment on a continuous basis.

The information system of an organization is typically made of its physical components, processing
functions, and output to the users as defined here:

 Physical Components: consist of hardware, software, database, procedures, and people operating
these components.
 Processing Functions: the following table describes the functions that are performed by an
information system in an organization.

Processing Functions Activities Performed

Process Transaction A transaction is an activity such as making a
purchase of sale or manufacturing a product. It
may be internal to the organization or external.
For example, the process of booking an airline
ticket is a transaction.
Maintain Files It is very common in an organization to create
and maintain files of every transaction that takes
place. These files store data that remains
relatively permanent in nature. For example, an
airline reservation system maintains the record
of each passenger, the details prior to the trip

AEIC 419 – Management Information Systems

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1st Semester SY: 2021-2022
 Republic of the Philippines
Southern Philippines Agribusiness and Marine and Aquatic School of Technology
Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

and even after the trip (hotel, auto rental, etc..

When transactions are processed, appropriate
files are updated with the latest information.
Produce Reports An important output of an information system is
the various types of reports produced by it.
Scheduled reports are produced on a regular
basis. An information system should also be
able to produce special reports quickly on an ad
hoc basis.

 Analysis: Generated reports help an organization in doing many types of analysis. For example,
reports are generated about performance analysis, sales analysis, etc.
 Predictions and forecasts: Based on the analysis performed, organizations can make predictions and
forecast for future developments.
 Optimizations: Decision making is always a complicated process because organizations frequently
operate in a very dynamic environment. There are several parameters that vary. Some of these are
independent and others are not. A manager needs to evaluate the complete effect of a decision and
make tradeoffs where necessary.
 Frequency: This means the period of time in which reports are produced. Frequency of the reports can
be classified as follows:
 Regular reports: The routine reports for status reporting (e.g., monthly).
 On-demand reports: These are to be produced whenever someone asks for them.
 Exception reports: Certain reports are only required when exceptional conditions are reached
to highlight special cases.
 Ad hoc reports: These are unplanned. One would not typically have programs for these as
part of an information handling system. The user would need to design the report with tools like
a report generator or by requesting a special service from the EDP department.

Information System: Components

An information system consists of five major components. They are users, hardware, software, data,
and networks. These components perform processing that converts data into meaningful information products.
The following diagram shows a framework of all the major components and of information systems.

Information System
Software
Hardware

Processing of Data
Input
and Instructions Output
(Data)
(Information)

Network
Management Information System

A management information system evaluates, analyzes, and processes an organization's data to

produce meaningful and useful information based on which the management can take right decisions to ensure
future growth of an organization. It is a planned system of collecting, storing, and disseminating data in the form
of information needed to carry out the functions of management.

AEIC 419 – Management Information Systems

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1st Semester SY: 2021-2022
 Republic of the Philippines
Southern Philippines Agribusiness and Marine and Aquatic School of Technology
Malita, Davao Occidental
ITEIT – INFORMATION TECHNOLOGY DEPARTMENT

To the managers, MIS is an implementation of the organizational systems and procedures. To a

programmer it is nothing but file structures and file processing. However, it involves much more complexity.

The three components of MIS provide a more complete and focused definition, where System suggests
integration and holistic view, Information stands for processed data, and Management is the ultimate user, the
decision makers. MIS can thus be analyzed as follows:

 Management: covers the planning, control, and administration of the operations of a concern. The top
management handles planning; the middle management concentrates on controlling; and the lower
management is concerned with actual administration.
 Information: It means the processed data that helps the management in planning, controlling and
operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e.,
recorded, summarized, compared, and finally presented to the management in the form of MIS report.
 System: Data is processed into information with the help of a system. A system is made up of inputs,
processing, output and feedback or control.

Thus, MIS means a system for processing data for it to give proper information to the management for
performing its functions.

Management Information System: Objectives

The goals of an MIS are to implement the organizational structure and dynamics of the enterprise for
the purpose of managing the organization in a better way and capturing the potential of the information system
for competitive advantage. Following are the basic objectives of an MIS:

 Capturing Data: Capturing contextual data, or operational information that will contribute in decision
making from various internal and external sources of organization.
 Processing Data: The captured data is processed into information needed for planning, organizing,
coordinating, directing, and controlling functionalities at strategic, tactical and operational level.
Processing data means:
 making calculations with the data
 sorting data
 classifying data and
 summarizing data
 Information Storage: Information or processed data need to be stored for future use.
 Information Retrieval: The system should be able to retrieve this information from the storage as and
when required by various users.
 Information Propagation: Information or the finished product of the MIS should be circulated to its
users periodically using the organizational network.

REFERENCES:

 Gupta, C. P., & Goyal, K. K. (2020). Computer Concepts and Management Information Systems [E-
book]. Mercury Learning and Information.

 Tutorials Point. (n.d.). Management Information System Tutorial. Retrieved September 25, 2021, from
https://www.tutorialspoint.com/management_information_system/index.htm

AEIC 419 – Management Information Systems

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