Management Information System
Management Information System
MIS) is a study of people, technology, organizations, and the relationships among them in a broader
sense. However in precise terms MIS is a software system that focuses on the management of
information technology to provide efficiency and effectiveness or strategy decision making. The term is
often used in the academic study of businesses and has connections with other areas, such as
information systems, information technology, informatics, e-commerce and computer science.
Every business unit has some objectives of its own. These objectives can be achieved with the
coordinated efforts of several personnel. The works of a number of persons are properly co-ordinated to
achieve the objectives through the process of management. Management is a vital aspect of the
economic life of man, which is an organised group activity. It is considered as the indispensable
institution in the modern social organization marked by scientific thought and technological innovations.
One or the other form of management is essential wherever human efforts are to be undertaken
collectively to satisfy wants through some productive activity, occupation or profession. It is
management that regulates man's productive activities through coordinated use of material resources.
Without the leadership provided by management, the resources of production remain resources and
never become production. Management is the integrating force in all organized activity. Whenever two
or more people work together, to attain a common objective, they have to coordinate their activities.
They also have to organize and utilize their resources in such a way as to optimize the results.
Management is usually defined as planning, directing and controlling the business operations.
Management is the process of allocating and organizations input including human and economic
resources by planning, organizing, directing and controlling for the purpose of producing goods or
services desired by customers so that organizational objectives are accomplished.
Functions of Management
Management has been defined as a process of getting things done through others. This process is
identified in a set of functions performed by managers to accomplish the goals. A manager is thus
someone who defines, plans, guides, helps out, and assesses the work of others, frequently people for
whom the manager is accountable in an organization.
The following mentioned management functions will involve creative problem solving.
Planning: According to Terry and Franklin, “planning is selecting information and making assumptions
concerning the future to put together the activities necessary to achieve organizational objectives.”
Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a
tactic for accomplishing a specific goal.
Organizing: Organizing is the classification and categorization of requisite objectives, the grouping of
activities needed to accomplish objectives, the assignment of each grouping to a manager with the
authority necessary to supervise it, and the provisions for coordination horizontally and vertically in the
organization structure. The focus is on separation, coordination, and control of tasks and the flow of
information inside the organization. It is in this function that managers allocate authority to job holders.
Directing: Direction is telling people what to accomplish and seeing that they do it to the finest of their
capability. It includes making assignments, corresponding procedures, seeing that mistakes are
corrected, providing on the job instruction and, of course, issuing orders.” The purpose of directing is to
control the behaviour of all personnel to accomplish the organization's mission and objectives while
simultaneously helping them accomplish their own career objectives. Staffing: Staffing function requires
recognition of human resource needs, filling the organizational structure and keeping it filled with
competent people. This function includes recruiting, training; evaluating and compensating are the
specific activities.
Controlling: “Control is the course of action that measures present performance and guides it towards
some predetermined goal. The quintessence of control lies in checking existing actions against some
desired results determined in the planning process.”
Levels of Management
According to the expert there are three types of level of management:
Top Level Management Top level management consists of board of directors, managing directors or
executive committee members.
Setting key objectives, policies and identifying factors essential for the development of the
organization.
Making appointments to the top position of the organization such as managers department heads etc.
Reviewing the work of different personnel in various levels.
Middle level management consists of managers of various departments such as productions, sales,
marketing, resource, finance etc.
Follow the rules and policies formulated by the top level management.
Motivating personnel for higher productivity.
Low level management consist of supervisors, daily workers etc. Follow the rules and guidelines made
out by the top level authentic of the organization. Some of the functions of Lower Level Management
include the following.
To issue orders and instructions to the workers and to supervise and control their work
To arrange for the necessary tools, equipment, materials etc., for the worker
To inform the management about the problems of workers which are not solved at this level?
To maintain discipline among the workers and to develop in them the right approach to work.
Concept of a System
A System is a group of interrelated components working together toward a common goal by accepting
inputs and producing outputs in an organized transformation process.
System Concepts The concepts of a system are Technology, Application, Development and
Management.
a. Technology. Computer networks are systems of information processing components that are a variety
of hardware, software and telecommunication technology.
b. Application. That electronic business and commerce application involves interconnected business
information system
c. Development. That developing way to use IT in business includes designing the basic component of
information system.
d. Management. Managing IT emphasize the quality, strategic business value and security of an
organization in information system.
Components of a System
a) Input, - Input involves capturing and assembling elements that enter to the system to be processed.
Some of the inputs are raw materials, energy, data etc
c) Output- . It involves transforming element that has been produced by a transformation process to
their ultimate destination.
Types of System
Dynamic System: When the interrelated component of the system interacts with each other and this
controlled by management then it is known as Dynamic System.
b. Cybernative System Dynamic System implementing the concept of feedback and control is known as
Cyber native System.
c. Open System A system got interacts with other system in its environment by exchanging input and
output with its environment d. Adoptive System A System having the ability to change itself and its
environment in order to survive .
1. Relevance: Information must be relevant to the problem being considered. Too often reports,
messages, tabulations etc. contain irrelevant parts which most prevent the user of the information to
get the actual meaning of what the sender wants.
2. Accuracy: Information should be sufficiently accurate for it to be relied upon by the manager and for
the purpose for which it is intended.
3. Completeness: Ideally, all the information required for a decision should be available. However, in
practice, this is not often obtainable. What is required is that the information is complete in respect of
the key elements of the problem. This suggests that there should be interaction between information
provides and users to ensure that the key factors are identified.
4. Confidence in the source: For information to have value it must be used. For it to be used managers
must have confidence in the source. Confidence is enhanced: Data Processes Output a. The source has
been reliable in the past b. There is good communication between the information producer and the
manager.
5. Communication to the right person: All persons have a defined sphere of activity and responsibility
and should receive information to help them carry out their designated tasks. In practice this is not
always as easy as it sounds. It is quite common for information to be supplied to the wrong level in the
organization. a superior may not pass it on the person who needs it whilst subordinates may hold onto
information in an attempt to make themselves seem indispensable.
Functions of Information
a) Reduction of Uncertainty: Uncertainty exist where there is less than perfect knowledge. Rarely, if ever
is there perfect knowledge but relevant information help to reduce the unknown.
b) An aid to monitoring and control: By providing information about performance and the extent of
deviations from planned level of performance, management are better able to control operation.
Airline reservations (seat, booking, payment, schedules, boarding list, special needs, etc.).
Bank operations (deposit, transfer, withdrawal) electronically with a distinguish payment gateways.
c. Control. Control involves monitoring and evolving feedback determines whether a system is moving
towards the achievement of its goals. The control function makes necessary adjustments to a system
input and possessing components to ensure that to produce proper output. 1.8 Components of
Information System a. People Resources
People Resources divided into two types i) End-Users These are the people who use an information
system or the information it produce. Ex: Accounts, Sales Persons, Customers and Managers. ii)
Information system specialist These are the people who develop and also operate Information system.
Ex: System Managers, Programmers, Computer Operation
b. Data Resources Data resources of an Information system are typically organized in two parts:
ii) Knowledge Base It holds knowledge in a variety of forms such as facts, rules, and case examples.
c. Software Resources It includes all sets of information processing instruction. It is also two types:
ii) Procedure Set of Information processing instructions needed by people. Ex: Operating System,
Spreadsheet Programs, and Word processor Programs. d. Hardware Resources Include all physical
devices and materials used in information processing. It has also two types i) Machines Ex: Computer,
Video Monitor, Scanner
Information system and technology including E-business and E-commerce technology and application
has become vital component of successful business and organization. It is a study of business
administration and management. For a manager or a business professional it is just as important to
have basic understanding of information system and any other functional area in business
a) Support the Business Process: Treats inputs as a request from the customer and outputs as services
to customer. Supports current operations and use the system to influence further way of working.
c) Support Decision Making: An IS supports the decision making by employee in their daily operations.
It also supports managers in decision making to meet the goals and objectives of the organization.
Different mathematical models and IT tools are used for the purpose evolving strategies to meet
competitive needs.
d) Strategies for an Organization: Today each business is running in a competitive market. An IS supports
the organization to evolve appropriate strategies for the business to assent in a competitive
environment
The main components of a CBIS include hardware, software, data, procedures and people. Computer
Based Information System (CBIS) depends mainly on the computer for handling business application.
System analysis develops different types of information system to meet variety of business needs. There
is a class of systems known collectively as computer based information systems. A few of them are as
follows:
i.
Transaction Processing System (TPS)
ii. ii. Management Information System (MIS)
iii. iii. Decision Support System (DSS)
iv. iv. Office Automation Systems (OASs) Transaction Processing Systems: Transaction processing
systems handle routine information items, more often than not manipulating data in some
constructive way as it enters or leaves the firm’s databases. An order entry program is an
example of a TPS. Reasons for TP are recording, classification, sorting, calculation,
summarization, storage and exhibit of results. Management Information Systems:
Management Information systems make available a focused vision of information flow as it develops
during the course of business activities. This information is constructive in managing the business. We
will discuss all the aspects of MIS in the coming heads in an elaborate manner. Decision Support
Systems: Decision Support systems are methodical models used to progress managerial or professional
decision making by bringing significant data to a manager’s notice. In many cases, these systems use
the identical data as management information systems, but DSS purify the data to make it more
functional to managers. It support with exceptional and nonrecurring decisions, which are moderately
unstructured. Mainly what factors to reflect on and what information are needed. Office Automation
Systems: Office automation systems endow with electronic mail, word processing, electronic filing,
scheduling, calendaring, and other kinds of support to office workers. First introduced with personal
computers, these “groupware” applications became essential with the extensive use of personal digital
assistants. It combines word processing, telecommunications and data processing to computerize office
information, draws on stored data as a result of data processing and comprise handling of
correspondence, reports and documents.
1. The system ensures that an appropriate data is collected from the various sources, processed, and
sent further to all the needy destinations. The system is expected to fulfil the information needs of an
individual, a group of individuals, the management functionaries: the managers and the top
management.
2. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis
Systems, Modelling Systems and Decision Supp Systems the MIS helps in Strategic Planning,
Management Control, Operational Control and Transaction Processing.
3. The MIS helps the clerical personnel in the transaction processing and answers their queries on the
data pertaining to the transaction, the status of a particular record and references on a variety of
documents. The MIS helps the junior management personnel by providing the operational data for
planning, scheduling and control, and helps them further in decision making at the operations level to
correct an out of control situation.
4. The MIS helps the middle management in short them planning, target setting and controlling the
business functions. It is supported by the use of the management tools of planning and control. The MIS
helps the top management in goal setting, strategic planning and evolving the business plans and their
implementation. 5. The MIS plays the role of information generation, communication, problem
identification and helps in the process of decision making.
The MIS, therefore, plays a vital role in the management, administration and operations of an
organization
The lack of information of the managers and users as they don’t know exactly what they want and
what their information needs are.
The lack of understanding of the needs of the users by designers (the lack of correct definition of the
needs and their analysis)
The lack of information of the managers and users about the collaboration method with the designer
team.
The lack of information of most of the analysts and programmers (designers) with new system work
environment.
The lack of acceptance of the system executers and resistance against the change.
The lack of good conditions for participation and collaboration of the managers, users and system
directors
The lack of existing systems and methods analysis before the system design
The lack of human resources with management and computer fields and other required
specializations (the problems of absorbing human resources) Inadequate education of the users
Inadequate and incomplete documentation Unsuitable implementation of the system Environmental
factors
The lack of suitable consultants for designing the system and software
The lack of procedures and methodology and stages of creating the system
The lack of suitable use of mass media to develop the culture of using computer and information
systems.
The lack of holding suitable MA training courses in the universities and the lack of suitable education
of human resources in this regard.
The lack of ratification of the suitable rules in Islamic council parliament and government board and
the considerable problem in this regard.
requirements
design
implementation
testing
deployment
operations
maintenance
Phases of SDLC
Systems Development Life Cycle is a systematic approach which explicitly
breaks down the work into phases that are required to implement either new
or modified Information System.
The four-step model of the prototyping process consists of the following: (1)
identify the user's basic requirements; (2) develop a working prototype; (3) use the
prototype, and (4) revise and enhance the prototype.
The process of developing a prototype can be broken down into four steps. Because a prototype
can be developed quickly and inexpensively, systems builders can go through several iterations,
repeating steps 3 and 4, to refine and enhance the prototype before arriving at the final
operational one.
Prototyping is most useful when some uncertainty exists about user requirements
or a design solution. It is especially valuable for the design of the end-user interface of
an information system such as on-line screens and commands. The intense end-user
involvement in prototyping promises the elimination of excess development costs and
design flaws that occur when requirements are not fully captured the first time around.
User satisfaction and morale are heightened because users are presented with an
actual working system.
When systems are created rapidly, without a formal development methodology, testing
and documentation may be inadequate. Control over data can be lost in systems
outside the traditional information systems department.
The four-step model of the prototyping process consists of the following: (1)
identify the user's basic requirements; (2) develop a working prototype; (3) use the
prototype, and (4) revise and enhance the prototype. [Figure 14-11]
Prototyping is most useful when some uncertainty exists about user requirements
or a design solution. It is especially valuable for the design of the end-user interface of
an information system such as on-line screens and commands. The intense end-user
involvement in prototyping promises the elimination of excess development costs and
design flaws that occur when requirements are not fully captured the first time around.
User satisfaction and morale are heightened because users are presented with an
actual working system.
The four-step model of the prototyping process consists of the following: (1)
identify the user's basic requirements; (2) develop a working prototype; (3) use the
prototype, and (4) revise and enhance the prototype.
The process of developing a prototype can be broken down into four steps. Because a prototype
can be developed quickly and inexpensively, systems builders can go through several iterations,
repeating steps 3 and 4, to refine and enhance the prototype before arriving at the final
operational one.
Prototyping is most useful when some uncertainty exists about user requirements
or a design solution. It is especially valuable for the design of the end-user interface of
an information system such as on-line screens and commands. The intense end-user
involvement in prototyping promises the elimination of excess development costs and
design flaws that occur when requirements are not fully captured the first time around.
User satisfaction and morale are heightened because users are presented with an
actual working system.