MANAGEMENT INFORMATION SYSTEM

Management
 It refers to the process of coordinating and overseeing activities
and resources within an organization to achieve specific goals and
objectives efficiently and effectively.
 It involves planning, organizing, directing, and controlling various
aspects of a business or project to ensure its successful execution.

MANAGEMENT

Top Middle Lower

Management Management Management

Top Management
 It includes the highest level of executives or leaders within
an organization.
 They are responsible for setting the overall direction,
vision, and long-term goals of the organization.
 Top management typically includes Chief Executive Officer
(CEO), President, or Managing Director.
Middle Management
 This is the intermediate level of management that sits
between the top management and the lower-level
employees.
 Middle managers are responsible for implementing the
strategies and decisions made by top management.
 Middle management positions include department heads,
regional managers, project managers, and team leaders.

Lower-Level Management
 It consists of supervisors, team leaders, and other
individuals directly responsible for overseeing the day-to-
day operations of the organization.
 They manage individual teams or departments and are
responsible for ensuring that tasks are executed efficiently
and according to established procedures.

INFORMATION
 Information is defined as the data which is organized and
presented at a time and place so that the decision-maker may
take necessary decision and actions.
 Information consists of data that has been retrieved, processed,
or otherwise used, for informative or inferential purposes,
arguments, or as a basis for forecasting.

TYPES OF INFORMATION
Operational Information
 It is real-time or near-real-time data related to day-to-day
operations and transactions within the organization.
 It is used primarily by lower management to measure
performance against predetermined objectives, including
standards and budgeted figures.
 It includes information about sales, inventory levels, production
status, customer orders, employee attendance, and other routine
activities.

Tactical Information
 It provides insights into the current performance and trends,
allowing managers to adjust strategies, allocate resources, and
address operational challenges effectively.
 Tactical information is used by middle-level managers to plan and
control operations over the short to medium term.
 Tactical information includes sales forecasts, budget variance
reports, and departmental performance metrics.

Strategic Information
 Strategic information assists in setting organizational objectives
and developing plans to achieve them.
 Strategic information is used by top-level executives to make
long- term decisions that shape the overall direction and goals of
the organization.
 It involves information about market trends, competitive
analysis, industry insights, and potential growth opportunities.
SYSTEM
This is a group of elements or components joined together that
work together to achieve a common goal or purpose. It is made up of
sub- systems. The systems are either natural or man-made.

MANAGEMENT INFORMATION SYSTEM

 It is an integrated man-machine system that provides
information to support the planning and control functions of
managers in an organization.
 It is a set of combined procedures that gathers and produces
reliable, relevant, and properly organized data that supports the
decision-making process of an organization.
 This system is used by management for better management and
scientific decision-making.

FEATURES OF MANAGEMENT INFORMATION SYSTEM

Integrated System to Serve Multiple Users
An MIS is designed to serve the information needs of various users
within an organization, ranging from top-level executives to middle-
level managers and operational staff.
Computer System and Database Linkage
The computer system processes, stores, and manages the data,
while a centralized database ensures that relevant information is
readily available for retrieval and analysis.

Data Integration
 It is process of combining data from different sources and
formats into a unified and cohesive view.
 MIS integrates data from various sources and departments to
provide a unified view of information.

User-Machine Interface for Real-time Access

 MIS offers a user-friendly interface that allows users to access
the information they need quickly and efficiently.
 The interface enables users to perform real-time searches and
retrieve relevant data on demand, enabling timely decision-
making and analysis.

Supporting Operations and Decision-Making

 It assists operational staff in their routine tasks by providing real-
time data and automating processes.
 It aids managers and executives in making informed decisions by
providing relevant insights, trends, and performance metrics.

ROLE OF MANAGEMENT INFORMATION SYSTEMS

Efficient Data Management: MIS organizes and centralizes data,
ensuring easy access and accurate information for decision-making.
Real-time Information: MIS provides timely and up-to-date
information, enabling managers to respond quickly to changes and
challenges.
Decision Support: MIS offers valuable insights and analysis to
support informed and strategic decision-making.
Improved Planning: It assists in forecasting, resource allocation, and
setting achievable goals for the organization.
Enhanced Communication: MIS facilitates seamless information
sharing and communication among different levels of management.
Performance Evaluation: It helps monitor and assess organizational
performance against set targets and benchmarks.
Competitive Advantage: Effective use of MIS can provide a
competitive edge by enabling better utilization of resources and
identifying opportunities.

ROLE OF MIS IN IMPROVING DECISION MAKING

Quality of Managerial Decision-Making and Information:

 The quality of information available to managers directly impacts
the quality of their decision-making.
 Managers should promote an environment that fosters the
development and availability of high-quality information.
 Access to accurate, relevant, and timely information enables
managers to make well-informed decisions.

MIS as a Foundation for Decision-Making:

 MIS provides a strong foundation for making concrete decisions.It
offers systematic tools and techniques to gather, process, and
analyse data.
 Timely and reliable information from MIS aids in formulating
effective managerial policies and regulations.

Reviewing and Controlling Operations

 MIS serves as a valuable tool for reviewing and controlling an
organization's operations.
 It gathers data from various sources, allowing managers to assess
performance and identify areas for improvement.
 By monitoring key performance indicators (KPIs) and other
relevant metrics, managers can take corrective actions and
maintain operational efficiency.
ROLE OF MIS IN THE BANKING INDUSTRY
Efficient Data Management
MIS helps banks organize and manage vast amounts of customer
data, transaction records, and financial information in a structured
and secure manner.

Customer Relationship Management (CRM)

 MIS assists banks in maintaining comprehensive customer
profiles and transaction histories.
 This enables personalized services, targeted marketing, and
improved customer satisfaction.

Risk Management
 MIS provides real-time data on credit risk, market risk, and
operational risk.
 It helps banks identify potential risks, monitor exposures, and
implement risk mitigation strategies.

Transaction Processing
 MIS automates transaction processing, enabling seamless and
efficient banking operations.
 It supports various banking services such as online banking,
mobile banking, and electronic fund transfers.

Decision Support and Analytics

 MIS offers analytical tools and reports that aid in strategic
decision- making, product development, and market analysis.
 Banks can leverage data insights to identify growth opportunities
and improve operational efficiency.
Fraud Detection and Security
MIS helps banks detect suspicious activities and potential fraud by
monitoring transaction patterns and customer behavior. It
enhances security measures to protect sensitive financial
information.

Integration of Banking Channels

MIS facilitates the integration of different banking channels (e.g.,
branches, ATMs, online banking) into a seamless customer
experience, enabling customers to access services through their
preferred channel.

DESIGNING MIS FOR A BANK

 The points to be taken care of while designing an MIS will differ
from bank to bank depending upon goals and objectives, quality
of staff, technological development, customer segmentation, etc.
 However, in general, the following points may be taken care of
while designing an MIS for a bank:

CUSTOMER DATABASE
The management of the bank should create a customer database
and analyse the needs of the customers from time to time to create
a suitable service package.
 Customer - Individuals, Companies, Institutions, etc.
 Operator - Housewife, Employee, The officer of the organization.
 The Range of Services - Savings, Credit checking/ credit history
and payment, and other financial services.
 Class of Customers - Income group, Corporate Bodies, etc.
 Working hours - Morning, Afternoon, Evening, etc.
SERVICE TO THE ACCOUNT HOLDERS
 The management of the bank should create a report on service to
the account holders and analyze these Accounts.
 Based on these reports, the management of the bank should alert
or warn the customer to act on his account to correct the
situation.
 The customers (account holders) need constant advice on the
status and its operations.

The MIS should give the following reports to the management:

 The non-moving account.
 The account was having a balance of more than, say Rs. 50, 000.
 The account was going down below the minimum balance.
 The regular payments not made.
 The routine credits have not arrived.
 The defaults on loan repayment.
 The delays in crediting cheque amounts.
 A sudden rise and fall in the account movement.

SERVICE FOR BUSINESS PROMOTIONS

 The bank finances can be utilized in some ways to increase the
banking operations by offering credit to the right kind of
customers.
 It is, therefore, necessary to study the trend in the business
industry and solicit customers from the upcoming and growing
business sector.
THE INDEX MONITORING SYSTEM
 One more feature of the MIS is to monitor the variety of indices
and ratios related to banking operations, which are internal to the
banking business.
 Some of these ratios fulfill legal needs like the Cash Reserve Ratio
(CRR)/ Statutory Liquidity Ratio (SLR); some meet policy needs
like the priority sector ratio to total advances and so on.

HUMAN RESOURCE UPGRADE

 With computerization, the service may become faster or quicker,
but still, it requires a human touch and skill.
 It is, therefore, necessary to upgrade the expertise and knowledge
of the bank employees to offer proper service to the customers.

ISSUES RELATED TO MIS

HUMANISTIC FACTORS
 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 as they don't
know exactly what they want and what their information needs
are.
 The lack of participation of the managers and users in system
design.
 The lack of understanding of the managers of software and
information systems.
 The lack of accuracy in the data collected.
Environmental factors
 The lack of procedures and methodology and stages of creating
the system.
 The lack of suitable consultants for designing the system and
software.
 The lack of serious consideration and adequate investment in this
regard.

Organizational factors
 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 evaluation of the existing power and Inadequate and
incomplete documentation.

SUGGESTIONS FOR SOLUTIONS TO MIS-RELATED

ISSUES
 Providing a comprehensive plan is necessary for using
information systems in organizations before using MIS.
 Absorbing the efficient and skillful employees and creating
suitable motivations for the stability of the existing employees.
 Forming MIS council or MIS directing committee from the initial
stages of MIS project in the organization etc.

Advantages of MIS:
Improved Decision-Making: MIS provides accurate and timely
information, enabling managers to make better decisions.
Efficient Resource Allocation: MIS helps allocate resources more
effectively by identifying areas of inefficiency and waste.
Increased Productivity: By automating processes and reducing
manual work, MIS improves overall productivity.
Better Communication: MIS facilitates the flow of information across
the organization, enhancing communication and collaboration.
Challenges of MIS:
Data Security: Ensuring the security and confidentiality of data is
crucial to prevent unauthorized access and breaches.
Data Quality: Maintaining accurate and reliable data is essential to
avoid erroneous decisions based on flawed information.
Integration Issues: Integrating different systems and databases can be
challenging, leading to data inconsistencies.
Cost and Implementation: Implementing and maintaining an MIS can
be costly and time-consuming.