ITBM2
Unit 1Management Information System Q1) What is the meaning and components of MIS?A1) MIS is an organized integration of hardware and software technologies, data, processes, and human elements. It is a software system that focuses on the management of information technology to provide efficient and effective strategic decision making.MIS is the acronym for Management Information Systems. MIS is a set of procedures which, when executed, provides information to support decision making.A Management Information System is an integrated user-machine system usedFor providing information To support the operations, management, analysis, and decision-making functions In an organization, the system utilizes Computer hardware & software Manual procedures Models for analysis, planning, control, and decision making, and A database MIS Meaning: A management information system is an acronym of three words, viz., Management, information, system. In order to fully understand the term MIS, let us try to understand these three words.Management: Management is the art of getting things done through and with the people in formally organised groups.Information: Information is data that is processed and is presented in a form which assists decision-making. It may contain an element of surprise, reduce uncertainty or provoke a manager to initiate an action.System: A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific goal. The term system is the most loosely held term in management literature because of its use in different contexts.Major components of MIS are:People Resources: People are required for the operation of all information system. Data Resources: Database holds processed and organized data. Software Resources: It includes all sets of information processing instruction. Hardware Resources: Include all physical devices and materials used in information processing. Process: is a step undertaken to achieve a goal. Q2) Write down the characteristics of MIS.A2) Characteristics of MIS are as below:System Approach The information system follows a System’s approach. The system’s approach implies a holistic approach to the study of system and its performance in the light for the objective for which it has been constituted.2. Management OrientedThe top-down approach must be followed while designing the MIS. The top-down approach suggests that the system development starts from the determination of management needs and overall business objectives.The MIS development plan should be derived from the overall business plan. Management oriented characteristic of MIS also implies that the management actively directs the system development efforts.3. Need-BasedMIS design and development should be as per the information needs of managers at different levels, strategic planning level, management control level and operational control level. In other words, MIS should cater to the specific needs of managers in an organization’s hierarchy.4. Exception BasedMIS should be developed on the exception-based reporting principle, which means an abnormal situation, i.e. the maximum; minimum or expected values vary beyond tolerance limits. In such situations, there should BE exception reporting to the decision-maker at the required level.5. Future OrientedBesides exception-based reporting, MIS should also look at the future. In other words, MIS should not merely provide past or historical information; rather it should provide information, based on projections based on which actions may be initiated.6. IntegratedIntegration is a necessary characteristic of a management information system. Integration is significant because of its ability to produce more meaningful information.For example, in order to develop an effective production scheduling system, it is necessary to balance such factors as setup costs, Workforce, Overtime rates, Production capacity, Inventory level, Capital requirements and Customer services.7. Long Term PlanningMIS is developed over relatively long periods. Such a system does not develop overnight. A heavy element of planning is involved. The MIS designer must have the future objectives and needs of the company in mind.8. Sub-System ConceptThe process of MIS development is quite complex, and one is likely to lose insight frequently. Thus, the system, though viewed as a single entity, must be broken down into digestible sub-systems which are more meaningful at the planning stage.9. Central DatabaseA central database is a mortar that holds the functional systems together. Each system requires access to the master file of data covering inventory, personnel, vendors, customers, etc. It seems logical to gather data once, validate it properly and place it on a central storage medium, which can be accessed by any other subsystem. Q3) Explain the subsystem of MIS.A3) Systems consist of numerous sub-systems, each of which has elements, interactions, and objectives. Subsystems perform specialized tasks related to the overall objectives of the total system.A system exists on more than one level and can be composed of subsystems or element parts.Following are the subsystems of Management Information System:Transaction Processing System Management Reporting System Decision Support System Office Information System Business Expert System Transaction Processing System - A transaction is defined as an exchange between two or more business entities. Overall transaction processing, also known as data processing, reflects the principal business activities of a firm like - sales, production, inventory, shipping, receiving, billing, accounts payable, accounts receivables, payroll, general ledger, etc. .Transactions are important events for an organization, and collecting data about them is called transaction processing. Transaction Processing System's primary purpose is to record, process, validate, and store transactions that take place in the various functional areas of a business for future retrieval and use. Transaction processing systems are cross-functional information systems that process data resulting from the occurrence of business transactions.A TPS records internal and external transactions for a company. A TPS performs routine and repetitive tasks. It is mostly used by lower level managers to make operational decisions. Transactions can be recorded in batch mode or online. In batch mode files are updated periodically; and in online mode, each transaction is recorded as it occurs. TPS is a six step process - Data entry, Data capture, Data validation, Processing and re-validation, Storage, Output generation, and Query support. Management Reporting System - Management Reporting Systems are the most elaborate of management oriented MIS components. Its main objective is to provide lower and middle management with printed reports and inquiry capabilities to help maintain operational and management control of enterprise.MRSs are usually developed by information system professionals, rather than by end users. MRSs are oriented towards reporting on the past and the present, rather than projecting the future. MRSs largely report on internal company operations. MRSs generally have limited analytical capabilities. MRSs do not directly support the decision-making process MRSs provide Scheduled or Periodic Reports, Exception Reports, and Demand or Ad-hoc Report. Decision Support System - Decision Support Systems are a class of computerized information systems that support decision-making activities. DSS are interactive computer-based systems and subsystems intended to help decision makers. A DSS may present information graphically and may include an expert system or artificial intelligence. DSS tend to be designed primarily to serve management control level and strategic planning level managers.DSSs support for decision-makers in semi-structured and unstructured problems. DSSs are more focused on specific decision rather than routine flows of information. DSS present information graphically and may include an expert system or artificial intelligence. DSSs are adaptive over time. Office Information System - Office Information System is an information system that uses hardware, software, and networks to enhance work flow and better communication between employees. Office automation refers to the application of computer and communication technology to office functions. Office automation systems are meant to improve the productivity of managers at various level of management by providing secretarial assistance and better communication facilities. Office automation systems are the combination of hardware, software and people in information systems, that process office transactions and support office activities at all levels of the organization. These systems include a wide range of support facilities, which include word processing, electronic filing, electronic mail, message switching, data storage, data and voice communication etc.Business Expert System - Business expert system is a knowledge based information system that uses its knowledge about a specific, complex application area to act as an expert. This system is one of the knowledge based information system. Expert system provides decision support to managers in the form of advice from an expert in a specific problem area. Expert systems find application in diverse areas, ranging from medical, engineering and business. Q4) What is the structure and limitations of MIS?A4) Planning - The top level management is mainly concerned with strategic planning for example the strategic planning activities of top management involve future interaction between the organization and its external environment.
Computational support for planning:1. An analysis of historical data to obtain relationship useful for projection.
2. Various projection and forecasting techniques to estimate future value.
4. Computations internal to the plan and computation required for outputs.
5. Output of the results in a meaningful planning format.
Historical data analysis techniquesHistorical data analyzed to discover pattern or relation that will be useful in projecting the future value of significance variables. Even when the quantitative relations are not sufficiently stable to use in forecasting data analysis is useful for input into the judgmental forecast.Historical extrapolation techniquesHistorical data describes the past planning that involve the future estimating is generally based on analysis of history combined with various technique to generate data for planning purposes.Financial planning computationModels that involve financial plan need to provide for various computation and analyses commonly required for measuring or evaluating profitability example are depreciation computation rate of return analysis and break even analysis. Depreciation is a significant computation in most financial planning it affects profit computation because it is an expense and it effect cash flow because of its impact on taxes. There are several methods for computing deprecation all of which should be available to the planner. These methods are straight line double declining balance sum of the year digits and production or use basis.
Controlling - At the middle level management, information is management control. Middle level managers such as departmental heads are concerned with the current and future performance of their units. Therefore, they need aggregate information on the sales, profit etc. Of their units such information is available from both within the organization as well as outside the organization, for example, financial data for budgets and ratio analysis are available from the company’s records. However, market data can be collected through special surveys and reports from outside the organization. Top level managers also require management control information. But this information must be more detailed narrower in scope and more accurate than information required for strategic planning. It should also generate at more frequent because the time horizon of decision is shorter. At the supervisory level of management operational control is exercised production scheduling, cost and credit control, etc. are examples of operational control. Therefore, a detailed report on a daily and weekly basis is required, inventory report, operating cost, production rate, etc. are examples of such information. Such information available from within the organization.
The control feedback loop is basic to system design. The computer can improve the control process in several ways:1. The standard can be complex. Computational simplifications are not necessary.
2. The computation of deviation and identification of cause can be more sophisticated.
3. Reporting with computers can use irregular time interval which is very difficult with manual processing and can be done more frequently.Limitation
1. Aggression - The people may hit back at the system and may even sabotage it by using equipment incorrectly by putting incomplete information into the system or buy actual destruction of hardware or software.2. Projection - It is a psychological mechanism of blaming difficulties on someone or something else. When employees blame the management information system for problems caused by human error or other factors unrelated to the system, projection is taking place.3. Avoidance - It occurs when individuals defend themselves by withdrawing from or avoiding a frustrating situation. Managers may avoid the system by ignoring its output, in favor of their own information sources.Management Information System Planning - Management information system general business planning initiates from the following concepts:1. Mission of the corporate.2. Objectives and goals for the corporate in all key performance areas. These are alignWith the mission of the corporate.3. Strategic planning for general approach on how to achieve long term objectives.4. Operational planning for specific guideline on how to transverse short-term milestone Q5) What are the factors contributing to success of MIS?A5
Computational support for planning:1. An analysis of historical data to obtain relationship useful for projection.
2. Various projection and forecasting techniques to estimate future value.
4. Computations internal to the plan and computation required for outputs.
5. Output of the results in a meaningful planning format.
Historical data analysis techniquesHistorical data analyzed to discover pattern or relation that will be useful in projecting the future value of significance variables. Even when the quantitative relations are not sufficiently stable to use in forecasting data analysis is useful for input into the judgmental forecast.Historical extrapolation techniquesHistorical data describes the past planning that involve the future estimating is generally based on analysis of history combined with various technique to generate data for planning purposes.Financial planning computationModels that involve financial plan need to provide for various computation and analyses commonly required for measuring or evaluating profitability example are depreciation computation rate of return analysis and break even analysis. Depreciation is a significant computation in most financial planning it affects profit computation because it is an expense and it effect cash flow because of its impact on taxes. There are several methods for computing deprecation all of which should be available to the planner. These methods are straight line double declining balance sum of the year digits and production or use basis.
Controlling - At the middle level management, information is management control. Middle level managers such as departmental heads are concerned with the current and future performance of their units. Therefore, they need aggregate information on the sales, profit etc. Of their units such information is available from both within the organization as well as outside the organization, for example, financial data for budgets and ratio analysis are available from the company’s records. However, market data can be collected through special surveys and reports from outside the organization. Top level managers also require management control information. But this information must be more detailed narrower in scope and more accurate than information required for strategic planning. It should also generate at more frequent because the time horizon of decision is shorter. At the supervisory level of management operational control is exercised production scheduling, cost and credit control, etc. are examples of operational control. Therefore, a detailed report on a daily and weekly basis is required, inventory report, operating cost, production rate, etc. are examples of such information. Such information available from within the organization.
The control feedback loop is basic to system design. The computer can improve the control process in several ways:1. The standard can be complex. Computational simplifications are not necessary.
2. The computation of deviation and identification of cause can be more sophisticated.
3. Reporting with computers can use irregular time interval which is very difficult with manual processing and can be done more frequently.Limitation
1. Aggression - The people may hit back at the system and may even sabotage it by using equipment incorrectly by putting incomplete information into the system or buy actual destruction of hardware or software.2. Projection - It is a psychological mechanism of blaming difficulties on someone or something else. When employees blame the management information system for problems caused by human error or other factors unrelated to the system, projection is taking place.3. Avoidance - It occurs when individuals defend themselves by withdrawing from or avoiding a frustrating situation. Managers may avoid the system by ignoring its output, in favor of their own information sources.Management Information System Planning - Management information system general business planning initiates from the following concepts:1. Mission of the corporate.2. Objectives and goals for the corporate in all key performance areas. These are alignWith the mission of the corporate.3. Strategic planning for general approach on how to achieve long term objectives.4. Operational planning for specific guideline on how to transverse short-term milestone Q5) What are the factors contributing to success of MIS?A5
) Factors Contributing to SuccessIf a MIS is to be success then it should have all the features listed as follows:The MIS is integrated into the managerial functions. It sets clear objectives to ensure that the MIS focuses on the major issues of the business. An appropriate information processing technology required to meet the data processing and analysis needs of the users of the MIS is selected. The MIS is oriented, defined and designed in terms of the user's requirements and its operational viability is ensured. The MIS is kept under continuous surveillance, so that its open system design is modified according to the changing information needs. MIS focuses on the results and goals, and highlights the factors and reasons for non-achievement. MIS is not allowed to end up into an information generation mill avoiding the noise in the information and the communication system. The MIS recognizes that a manager is a human being and therefore, the systems must consider all the human behavioral factors in the process of the management. The MIS recognizes that the different information needs for different objectives must be met with. The globalization of information in isolation from the different objectives leads to too much information and information and its non-use. The MIS is easy to operate and, therefore, the design of the MIS has such features which make up a user-friendly design. MIS recognizes that the information needs become obsolete and new needs emerge. The MIS design, therefore, has a basic potential capability to quickly meet new needs of information. The MIS concentrates on developing the information support to manager critical success factors. It concentrates on the mission critical applications serving the needs of the top management. Q6)What are the factors contributing to failureof MIS?A6) Factors contributing to failureMany a times MIS is a failures. The common factors which are responsible for this are listed as follows:The MIS is conceived as a data processing and not as an information processing system. The MIS does not provide that information which is needed by the managers but it tends to provide the information generally the function calls for. The MIS then becomes an impersonal system. Underestimating the complexity in the business systems and not recognizing it in the MIS design leads to problems in the successful implementation. Adequate attention is not given to the quality control aspects of the inputs, the process and the outputs leading to insufficient checks and controls in the MIS. The MIS is developed without streamlining the transaction processing systems in the organization. Lack of training and appreciation that the users of the information and the generators of the data are different, and they have to play an important responsible role in the MIS. The MIS does not meet certain critical and key factors of its users such as a response to the query on the database, an inability to get the processing done in a particular manner, lack of user-friendly system and the dependence on the system personnel. A belief that the computerized MIS can solve all the management problems of planning and control of the business. Lack of administrative discipline in following the standardized systems and procedures, wrong coding and deviating from the system specifications result in incomplete and incorrect information. The MIS does not give perfect information to all the users in the organization. Q7) Explain the types of DSS?A7) Types of DSSStatus 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. Q8) Write down the components of MISA8) Components of a DSSDatabase 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 DSSThere 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.
0 matching results found