Unit - 7
Applications of MIS
- For each application the inputs which are processed by OLTP system are determined.
- The system designer develops the application with the objective of accounting the transaction based result and providing the same.
- Then a query system for the assessment of status on the record, result or document.
- Provide a system of analysis of processed data revealing certain business and trends.
- The control information to ensure that the business runs as per the plan, progresses in set direction and achieves the goals.
- These systems when integrated provide cross functional information to management to highlight business applications of the decisions taken in one area.
- Integrated systems provide data and information for business planning at middle management for strategic planning.
Personnel Management
Personnel Management function has the primary objective of providing suitable manpower in number with certain ability, skills and knowledge as the business organization demands from time to time.
Personnel management function has the primary objective of providing suitable manpower in number and with certain ability, skills and knowledge as the business organization demands from time to time.
Following techniques used to control Personnel cost and enhance manpower productivity:
- Human Resource development through training and upgrading the skills
- Motivation through leadership and job enrichment.
- Rewards through performance appraisal
- Grievance Handling
- Structuring the organization
Financial Management (FM)
FM function has a primary objective of meeting the financial needs of the business, from time to time, by way of providing working capital and long-term capital to run the business with the goal of containing the cost of capital at the minimum.
Second objective of FM is to meet the statutory compliance.
Various tools and techniques are used to achieve objectives
- Break even analysis
- Capital budgeting and ROI analysis
- Cost Analysis
- Cash Flow Projections
- Ratio analysis
- Financial modelling
- Management Accounting
- Expense analysis, auditing and control
Production Management (PM)
- The objective of Production Management (PM) function is to provide manufacturing services to the organisation.
- This involves the manufacture of products of a certain specified quality and within certain costs in a stipulated time fulfilling the promises given to the customer.
- The PM function is supported by other functions i.e. Production planning and control, industrial engineering, Maintenance and Quality control.
Raw Materials Management
- The objective of Materials Management (RM) is to provide material for production, maintenance and services at economical prices, in a appropriate quantity and quality and with no extra cost of carrying the inventory.
- The scope of RM is procurement, stocking and control of inventory.
- The function of RM is important as it takes away large capital as working capital.
- Secondly, it is important from the point of view of controlling the material cost and the cost of carrying inventory
Marketing Management
A system that analyzes and assesses marketing information gathered continuously from sources outside and inside an organization.
Timely marketing information provides basis for decision such as product development , pricing, media selection and promotion.
Features
- Evaluate the information accordingly
- Develop the needed information
- Analyze the information
- Distribute the information
- Unlike the manufacturing sector the service sector does not have any physical goods to be manufactured for the customer.
- The mission in a service industry is of providing the most satisfying service of the customer, while in a manufacturing industry, it could differ from industry to industry and from organisation to organisation.
- In a service industry, a sensitive market and consumer research is necessary to identify the segment to be served and to study its service requirements, expectations and perceptions.
- The entire managerial effort in a service industry is to create a distinctive service to remain competitive.
Tom peters in “The Service Edge’ states five principles of a distinctive(Special) service
– Listen, understand and respond to the customers
– Define a superior service and establish a service strategy
– Set standards and measure and performance
– Select, Train and Empower the employees to work for the customers
– Recognise and reward the accomplishments.
Service concept
• Service is an identifiable, intangible (untouchable) activity or a process designed to fulfil certain expectations of the customer/consumer.
• Kotler defines it as ‘Service is an activity or a benefit that one part can offer to another which is essentially intangible and does not result in the ownership of anything.
Character or attributes of Service
• Intangible
Storage
• Inconsistency
• Quality of resources used
• Functional quality of the process
All services has two components, one basic core and second its features.
- Basic core offers original functional content of the service like quick solution to the problem, serving dinner at the table, getting airline ticket etc.
- The second component deals with the manner in which a service is provided such as style, comfort, pleasure and consistent look and feel of the service.
Service Process Cycle & Analysis
- All services are bound by process steps and each step adds value in the services.
- All the steps can be classified in stages based on the role played in the
- Process.
- These stages together build a service process cycle.
- The stages in the cycle are
- Initiation of service
- Transition to service
- Pre service
- Post-service
Applications :
Airline
Hotels
Hospitals
Banking
.
Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information generated from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.
DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.
Programmed and Non-programmed Decisions
There are two types of decisions - programmed and non-programmed decisions.
Programmed decisions are basically automated processes, general routine work, where −
- These decisions have been taken several times.
- These decisions follow some guidelines or rules.
For example, selecting a reorder level for inventories, is a programmed decision.
Non-programmed decisions occur in unusual and non-addressed situations, so −
- It would be a new decision.
- There will not be any rules to follow.
- These decisions are made based on the available information.
- These decisions are based on the manger's discretion, instinct, perception and judgment.
For example, investing in a new technology is a non-programmed decision.
Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems. Reports are generated on the fly.
Attributes of a DSS
- Adaptability and flexibility
- High level of Interactivity
- Ease of use
- Efficiency and effectiveness
- Complete control by decision-makers
- Ease of development
- Extendibility
- Support for modeling and analysis
- Support for data access
- Standalone, integrated, and Web-based
Characteristics of a DSS
- Support for decision-makers in semi-structured and unstructured problems.
- Support for managers at various managerial levels, ranging from top executive to line managers.
- Support for individuals and groups. Less structured problems often requires the involvement of several individuals from different departments and organization level.
- Support for interdependent or sequential decisions.
- Support for intelligence, design, choice, and implementation.
- Support for variety of decision processes and styles.
- DSSs are adaptive over time.
Benefits of DSS
- Improves efficiency and speed of decision-making activities.
- Increases the control, competitiveness and capability of futuristic decision-making of the organization.
- Facilitates interpersonal communication.
- Encourages learning or training.
- Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision.
- Helps automate managerial processes.
Components of a DSS
Following are the components of the Decision Support System −
- Database Management System (DBMS) − To solve a problem the necessary data may come from internal or external database. In an organization, internal data are generated by a system such as TPS and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources).
- Model Management System − It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organization, forecasting demand of a product or service, etc.
Support Tools − Support tools like online help; pulls down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system.
Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows −
- Text Oriented DSS − It contains textually represented information that could have a bearing on decision. It allows documents to be electronically created, revised and viewed as needed.
- Database Oriented DSS − Database plays a major role here; it contains organized and highly structured data.
- Spreadsheet Oriented DSS − It contains information in spread sheets that allows create, view, modify procedural knowledge and also instructs the system to execute self-contained instructions. The most popular tool is Excel and Lotus 1-2-3.
- Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure written for performing certain calculations and particular program type.
- Rules Oriented DSS − It follows certain procedures adopted as rules.
- Rules Oriented DSS − Procedures are adopted in rules oriented DSS. Export system is the example.
- Compound DSS − It is built by using two or more of the five structures explained above.
Types of DSS
Following are some typical DSSs −
- Status Inquiry System − It helps in taking operational, management level, or middle level management decisions, for example daily schedules of jobs to machines or machines to operators.
- Data Analysis System − It needs comparative analysis and makes use of formula or an algorithm, for example cash flow analysis, inventory analysis etc.
- Information Analysis System − In this system data is analyzed and the information report is generated. For example, sales analysis, accounts receivable systems, market analysis etc.
- Accounting System − It keeps track of accounting and finance related information, for example, final account, accounts receivables, accounts payables, etc. that keep track of the major aspects of the business.
- Model Based System − Simulation models or optimization models used for decision-making are used infrequently and creates general guidelines for operation or management.
Enterprise Management Systems (EMS) Are Large-scale Application Software Packages That Support Business Processes, Information Flows, Reporting, And Data Analytics In Complex Organizations.
Components of Enterprise Management Systems (EMS)
ERP (Enterprise Resource Planning )
CAD/CAM/CAE (Computer Aided Design /Manufacturing /Engineering System)
AMS (Attendance Management System)
DMS (Document Management System )
CMS (Communication Management System)
SMS (Security Management System)
ERP (Enterprise Resource Planning )
It handles the operational system to run the business and provides the required inputs to planning and control systems handled by the middle management.
CAD/CAM/CAE (Computer Aided Design /Manufacturing /Engineering System)
It will provide the drawings and design engineering information to the ERP in its execution of manufacturing, purchase and inspection functions.
AMS (Attendance Management System)
Attendance Management System keeps track of the employee related information for personnel planning, availability and scheduling
DMS (Document Management System)
The document management system is designed to keep important documents in the database for viewing, sending messages, and for documenting support in the transactions handled.
CMS (Communication Management System)
The communication management systems are used for tracking the important resource for action. These resources are located, altered and advised to act from the location where they are.
SMS (Security Management System)
The security management system handles the security, entry access requirement of the business operations. It may be a person, a vehicle, or material, its movement, availability and access if tracked, monitored, and guarded for security and safety.
