Management Information Systems

Management Functions
Planning
• Get the job Devise short-range and long-range
done plans and set goals to help achieve
the plans
• On time
Organizing
• Within budget How to use resources
• Satisfactorily Staffing
• Using Directing
available Guiding employees to perform their
work
resources
Controlling
Monitoring progress towards goals
 Management Levels
• High level (strategic)
– Long-range view
– Planning
• Middle level (tactical)
– Carry out the plan
• Assemble the material
• Hire the resources
– Organize and staff
• Low level (operational)
– Supervisor
– Directing and controlling
Management Levels
 Information is Critical

•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 – making leading to
prosperity of the Organization
 Management Information Systems
(MIS)
• Data + Organization
• Set of formal business systems designed to
provide information for an organization
• Computers are typical components
• MIS refers broadly to a computer-based
system that provides managers with the tools
for organizing, evaluating and efficiently
running their departments.
 Management Information Systems
(MIS)
• An MIS provides managers with information
and support for effective decision making,
and provides feedback on daily operations
• Output, or reports, are usually generated
through accumulation of transaction
processing data
• Each MIS is an integrated collection of
subsystems, which are typically organized
along functional lines within an organization
 Three Sub-Components
• 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.
 What is MIS?

Right Information
To the right person
At the right place
At the right time
In the right form
At the right cost
Sources of Management
Information
 Employees

Corporate
Databases Corporate
databases
of intranet
of
external
internal
data
data Decision
support
systems

Transaction Databases Management Executive

Business processing of information Application support
transactions systems valid systems databases systems
transactions

Drill-down reports Expert

Exception reports systems
Demand reports
Operational Key-indicator reports
databases
Input and Scheduled
error list reports
 Characteristics of a Management
Information System
• Provides reports with fixed and standard
formats
– Hard-copy and soft-copy reports
• Uses internal data stored in the computer
system
• End users can develop custom reports
• Requires formal requests from users
Management Information Systems
for Competitive Advantage
• Provides support to managers as they
work to achieve corporate goals
• Enables managers to compare results
to established company goals and
identify problem areas and opportunities
for improvement
 MIS and Web Technology
• Data may be made available from
management information systems on a
company’s intranet
• Employees can use browsers and their
PC to gain access to the data
 Functional Aspects
• MIS is an integrated collection of
functional information systems, each
supporting particular functional areas.

Schematic
 Internet
Internet An Organization’s
MIS

Financial
MIS
Business
transactions

Drill down reports

Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports

Business
transactions Databases Human
of
Resources Etc.
external
data MIS
Extranet
Extranet
Etc.
 Inputs to the Financial
Information System
• Strategic plan or corporate policies
– Contains major financial objectives and often
projects financial needs.
• Transaction processing system (TPS)
– Important financial information collected from almost
every TPS - payroll, inventory control, order
processing, accounts payable, accounts receivable,
general ledger.
– External sources
– Annual reports and financial statements of
competitors and general news items.
 Financial MIS Subsystems
and Outputs
• Financial subsystems
– Profit/loss and cost systems
– Auditing
– Internal auditing
– External auditing
– Uses and management of funds
Manufacturing MIS

Schematic
 Databases of Manufacturing
Databases of
internal data external data DSS

Business
transactions
Transaction Databases
processing of valid
Manufacturing
systems transactions MIS Manufacturing
for each applications
TPS databases

Business Quality control reports

transactions
Process control reports Manufacturing
Operational ES
JIT reports
Internet databases
Internetoror MRP reports
Extranet
Extranet
Production schedule
CAD output

Business Customers,
transactions Suppliers
 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
 Marketing MIS
• Supports managerial activities in
product development, distribution,
pricing decisions, and promotional
effectiveness

Schematic
 Databases of Manufacturing
Databases of
internal data external data DSS

Transaction Databases
Business processing of valid
Marketing
transactions systems transactions MIS Marketing
for each applications
TPS databases

Sales by customer

Sales by salesperson Manufacturing

Operational Sales by product ES
databases Pricing report
Total service calls
Customer satisfaction
 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
 Human Resource MIS
• Concerned with all of the activities
related to employees and potential
employees of the organization
 Databases of Manufacturing
Databases of
internal data external data DSS

Transaction Databases Human

Business processing of valid Resource Human
transactions systems transactions resource
for each MIS applications
TPS databases

Benefit reports

Salary surveys Manufacturing

Operational Scheduling reports ES
databases Training test scores
Job applicant profiles
Needs and planning
reports
Inputs to the Human Resource
MIS
• Strategic plan or corporate policies
• The TPS:
– Payroll data
– Order processing data
– Personnel data
• External sources
 Human Resource MIS
Subsystems and Outputs
• Human resource planning
• Personnel selection and recruiting
• Training and skills inventory
• Scheduling and job placement
• Wage and salary administration
 Other MISs
• Accounting MISs
– Provides aggregated information on
accounts payable, accounts receivable,
payroll, and other applications.
• Geographic information systems (GISs)
– Enables managers to pair pre-drawn maps
or map outlines with tabular data to describe
aspects of a particular geographic region.