Managemet Information system

Introduction

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.

Basic Concepts

Management Information System is an accumulation of 3 different terms as explained

below.

Management: We can define management in many ways like, “Manage Man Tactfully” or
Management is an art of getting things done by others. However, for the purpose of
Management Information System, management comprises the process and activity that a
manager does in the operation of their organization, i.e., to plan, organize, direct and control
operations.

Information: Information simply means processed data or in the layman

language, data which can be converted into meaningful and useful form for a specific user.

System: The system can be explained in a following ways:

 System can be defined as a set of elements joined together for a common objective.
 A group of interrelated or interacting elements forming a unified whole e.g., business
organization as systems.
 A group of interrelated components working together towards a common
goal by accepting input and producing output in an organized
transformation process.
Overview of Management Concepts

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:

I. Top Level Management

II. Middle Level Management
III. Low Level or Operative Management

Top Level Management

Top level management consists of board of directors, managing directors or executive

committee members.

Objectives of Top Level Management include the following.

 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

Middle level management consists of managers of various departments such as productions,

sales, marketing, resource, finance etc.

Objectives of Middle Level Management include the following.

 Follow the rules and policies formulated by the top level management.

 Motivating personnel for higher productivity.

 Collecting detail analysis reports from the various departments.

 Mutual understanding with other departments in the organization.

 Recommendations to the top level management.

Low Level Management

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 classify and assign jobs to the workers

 To direct and guide the workers about work procedure

 To arrange for the necessary tools, equipment, materials etc., for the worker

 To solve the problems of workers

 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.

 To maintain good human relations.

 To build a high group morale among the workers.

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

There are three basic components of a system, they are

a) Input,

b) Processing and

c) Output.

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.

b. Processing.

It involves transformation process that converts input to output.

c. Output.

It involves transforming element that has been produced by a transformation process to their
ultimate destination.

Types of System

a. 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 is called an Adoptive System.

Data and information

By data we mean the facts or figures representing an object, place or the events

occurring in the organization. It is not enough to have data (such as statistics on

the economy). Data themselves are fairly useless, but when these data are

interpreted and processed to determine its true meaning, they become useful.

Characteristics of Data

 They are facts obtained by reading, observation, counting, measuring and

weighing etc. which are then recorded

 Data are derived from external and internal sources (activities with firm).

 Data may be produced as an automatic by-product of some routine but

essential operation such as the production of an invoice or alternative a special counting or

measuring procedure must be introduced and the result recorded.

 The source of data need be given considerable attention because if the

sources of the data flawed, any resulting information will be worthless.

Data Processing

Data or processing systems perform the essential role of collecting and processing the daily
transactions of the organizations. Data processing is necessary to ensure that the day-to-day
activities of the organization are processed, recorded and acted upon. Files are maintained which
provide both the current data for transaction, for example the amount invoiced and cash received
during the month for statement preparation, and which also serve as a basis for operational and
tactical control and for answering enquiries.

By information, we mean that the data have been shaped into a meaningful form, which may be
useful for human beings.

So, when data are processed, interpreted, organized, structured or presented so as to make them
meaningful or useful, they are called information. Information provides context for data.

Information is created from organized structured and processed data in a particular

context, “information can be recorded as signs, or transmitted as signals. Information is any
kind of event that affects the state of a dynamic system that can interpret the information.
Conceptually, information is the message (utterance or expression) being conveyed.
Therefore, in a general sense, information is ‘knowledge communicated or received
concerning a particular fact or circumstance”.

Characteristics of Good Information

Good information is that which is used and which create value. Experience and research shows
that good information has numerous qualities which are:

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.

c) As a means of communication: Managers need to know about developments,

plans, forecasts, impending changes and so on.

d) As a memory supplement: By having historical information about performance,

transactions, results of past actions and decisions available for reference, personal memories are
supplemented.
e) As aid to simplification: By reducing uncertainty and enhancing understanding,
problems and situations are simplified and become more manageable.

Information System

Meaning: An information system can be any organized combination of people, hardware,

software, communication software and data resource that collects transformation or
screening the information in an organization.

Definition: An information system can be defined as a set of interrelated components that

collect (or retrieve), process, store and distribute information to support decision making,
coordination and control in an organization.

Examples of Information System

A business is an example of an organizational system to an economic resource (input) is

transformed by various business processes into goods and services (output).

Information system provides information on the operation of the system to management

for the direction and maintenance of the system as it exchanges inputs and output with its
environment.

Some examples of information systems include the following.

 Airline reservations (seat, booking, payment, schedules, boarding list, special needs,
etc.).

 Bank operations (deposit, transfer, withdrawal) electronically with a distinguish

payment gateways.

 Integration of department with the help of contemporary software’s like ERP.

 Logistics management application to streamline the transportation system.

Feedback and control

A system with feedback and control components is sometimes known as cybernetic system
that is a self monitoring or self regulating system.

a. Feedback.

Feedback is a data about the performance of a system.

b. 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.