MIS Research


By

Ms. Sushma Malik
Asst. Professor
FIMT
New Delhi
 


ABSTRACT

Management deals with organizational functions. Managers drive an organization by planning for its future, organizing and controlling its present and directing others in the organization to work towards a common objective. In functional terms, management is all about decision making. In fact the only quality which distinguishes a manager from the rest in an organization is the manager's ability to take decisions. However, decision cannot be take isolation. Even simple decisions require information as an input. These decision requirements fuel an insatiable need for information within the organization. This information need is met by set of information systems, working in a synchronized manner, collectively called management information system (MIS). The competitive environment of today's business makes it necessary for MIS of any modern organization to work on an information technology platform so that suitable information is delivered to the right person at the right time.

INTRODUCTION

MIS is an Information system which helps in providing the management of an organization with information which is used by management for decision making. Management Information System (M.I.S.) is basically concerned with processing data into information which is then communicated to the various Departments in an organization for appropriate decision-making.

A management information system (MIS) provides information which is needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: people, technology, and information or decision making.
In a management information system, modern, computerized systems continuously gather relevant data, both from inside and outside an organization. This data is then processed, integrated, and stored in a centralized database (or data warehouse) where it is constantly updated and made available to all who have the authority to access it, in a form that suits their purpose. It is an integrated man machine systems that provides information to support the planning and control function of manager in an organization. The system provides information on the past, present and project future and on relevant events inside and outside the organization. It is as a planned and integrated system for gathering relevant data, converting it in to right information and supplying the same to the concerned executives. The main purpose of MIS is to provide the right information to the right people at the right time. It is also known as the Information System, the Information and Decision System, the Computer- based information System.

Management information system is not a monolithic entity but a collection of systems, which provide the user with a monolithic feel. The different subsystems working in the background have different objectives but work in concert with each others to satisfy the overall requirement of managers for good quality information.

The MIS has more than one definition, some of which are give below.

1. The MIS is defined as a system which provides information support for decision making in the organization.
2. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization.
3. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.
4. The MIS is defined as a Computer based Information System.

Impact of MIS

MIS has a major impact on the functions of any organization. The organization derives benefits from the systems in the following form:

a) Speedy access to information
b) Interpretation of data
c) Quick decisions
d) Speedy actions
e) Increased productivity and thereby increase in the profit
f) Reduced transaction cost


CHARACTERISTICS OF MIS
  • In any organization managers will have varieties of tasks to manage. MIS is mainly designed to take care of the needs of the managers in the organization.
  • Organizations will have different departments like marketing, production, sales, inventory, maintenance etc. Each of these departments function individually and also in relationship with other departments. Information is available in abundance. MIS aids in integrating the information generated by various departments of the organization.
  • MIS helps in identifying a proper mechanism of storage of data. The data is maintained in such a way that the unnecessary duplication of data is avoided.
  • MIS also helps in establishing mechanism to eliminate redundancies in data.
  • MIS as a system can be broken down into sub systems. Each such sub system may be programmed. This results in easy access of data, accuracy of data and information. It helps in maintaining the consistency of data.

FUNCTION OF MIS

The main function of MIS is to help the managers and the executives in the organization in decision-making.

  • Large quantities of data like customers information, competitors information, personnel records, sales data, accounting data etc is collected from internal sources like the company records and external sources like annual reports and publications.
  • The collected data is organized in the form of a database.
  • The data from the database is processed and analyzed by using different tools and techniques.
  • The result of the analysis is properly presented to the managers to help them in decision-making.

CONVERSION FROM MANUAL SYSTEM TO AUTOMATED SYSTEM

The manual system which was used in the organizations before industrial revolution was slowly transformed into digital form by means of computer and related electronic instruments. A transformation had to necessarily go through the following stages-

a) Appraisal of the procedures
b) Types of documents
c) Storage systems
d) Formulations and coding
e) Verification and validation
f) Review
g) Documentation

NECESSITY OF MIS

Managers play a key role in any organization. They are responsible for taking decisions appropriate to the need of the market. Information system has become the main tool used by managers in decision making. Managers perceive information as the driving force to achieve success in any business. Hence there is a need for MIS. MIS facilitates informed decision making. MIS usually represents a number of options from which the organization usually picks the best trade-off for sales, operations and other strategic areas. The top management also analyzes whether its resources are being utilized optimally. Management requires information to make decisions. This information should be generated on a timely basis and has to be complete and accurate in order to facilitate quick decision making. Information relevant to a business can be obtained from both internal and external sources. Different types of information may be required for different purposes in an organization.To obtain relevant information, it is important to establish proper systems throughout the organization. These systems should be designed in such a way that all the relevant information is available as and when required.

ROLE OF INFORMATION SYSTEM IN BUSINESS

The three vital roles that information systems can perform for a business enterprise are:

a) Support of its business processes and operations As a consumer, you regularly encounter information systems that support the business process and most retail stores where you shop. For example, most retail stores now use computer based information systems to help them record customer purchases, keep track of inventory, pay employees, buy new merchandise and evaluate sales trends. Store operations would grind to a halt without the support of such information systems.

b ) Support of decision making by its employees and managers Information systems also help store managers and other business professionals make better decisions. For example, decisions on what lines of merchandise need to be added or discontinued, or on what kind of investment they require, are typically made after an analysis provided by computer-based information systems. This not only supports the grain an advantage over other retailers in the competition for customers.

c) Support of its strategies for competitive advantage-Gaining a strategic advantage over competitors requires innovative application of information technologies. For example, store management might make a decision to install touch-screen kiosks in all of their stores, with links to their e-commerce web-site for online shopping. This might attract new customers and build customer loyalty because of strategic information systems can help provide products and services that give a business a comparative advantage over its competitors.

The main purpose of Information systems is to assist the management in decision making. The various processes in decision making require information in various forms. Basically information is provided by the systems to the management at various levels like strategic level information, tactical level information and operational level information. The nature of information at the operational level is highly structured. The nature of information at the top level strategic is highly unstructured. Similarly the volume of information processed is very high at the bottom level and less at the top level.



CLASSIFICATION OF MIS

MIS is classified into various types. The classification depends on the following aspects

a) Functionality
b) Utility
c) Area of application
d) Processing type

Various management activities like the one which deals with scheduling, planning, resource allocation, product design, processes, competitive strategy is the functional classification of MIS.

Some of the processes like artificial intelligence, generating management related information, providing aid in decision making, necessary support systems, executive information system is the utility classification of MIS.

Depending upon the area where MIS could be used MIS is classified as Banking IS, Insurance IS, Production IS, Data warehouse IS, Public IS etc.

Depending upon the type of management service in processing a data to generate information, MIS is classified into various processing types like Online transactions, Batch processing, distributed processing, multi-processing etc.

Relationships

Though different types of IS exists in any organization, they are related to each other directly or indirectly. The information generated in one department may be used by another department to generate further information to be used by other departments and so on. Thus there exists a relationships between various types of IS being used in any organization.

TYPES OF INFORMATION SYSTEM

Six major types of information systems are:
  • Transaction processing systems (TPS) A transaction processing system (TPS) helps in conducting the daily routine activities like sales order entry, airline reservations, payroll etc.
  • Office systems Some of the tasks involved in the administration of an office are storage of data, manipulation of data, documentation, communication etc. To increase the efficiency of these activities various word processors, image processors, telecommunications systems, networks are adopted. This constitutes the offices systems.
  • Knowledge Based Systems (KBS) KBS is a system that represents knowledge. Abundant information is available today. This information is representative of various facts and figures. These constitute knowledge base. The system adopted is capable of quick data acquisition and interpretation of the data which is necessary in decision making. This system is used as an expert to give expert advice on various subject matters and at time as a consultant. Such a system is known as knowledge based system.
  • Decision-support system (DSS) Managers are usually faced with challenges which are unstructured. The problems they face are normally under situations involving uncertainties and risks. Decision making becomes very difficult under such situations. A system which provides solutions to such problems is known as decision support system (DSS).
  • Management Reporting Systems (MRS) Management reporting system (MRS) helps the management in decision-making by providing them with reports and different statistical tools.
  • Executive support systems- Executive support systems help the senior executives in the organization in decision making through advanced graphics and communication.


ADVANTAGES OF MIS

1. It Facilitates planning
: MIS improves the quality of plants by providing relevant information for sound decision making. Due to increase in the size and complexity of organizations, managers have lost personal contact with the scene of operations.

2.  In Minimizes information overload : MIS change the larger amount of data in to summarized form and there by avoids the confusion which may arise when managers are flooded with detailed facts.

3.  MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.

4.  It brings Co ordination: MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization.

5.  It makes control easier : MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance . The used computers has increased the data processing and storage capabilities and reduced the cost .

DISADVANTAGES

1. Highly sensitive requires constant monitoring.
2. Buddgeting of MIS extremely difficult.
3. Quality of outputs governed by quality of inputs.
4. Lack of flexibility to update it.
5. Effectiveness decreases due to frequent changes in top management
6 .Takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude of worker etc...

DIFFERENCE BETWEEN MIS AND COMPUTER SCIENCE (CS)

 

MIS (management information systems)

CS (computer science)

ECE (electrical computer engineering)

Focus

Organization

Software

Product

Objective

More efficient or effective business

Reliable computer program

Improved engineered product

Core skill

Problem solving

Logic/procedures

Engineering

Core task

Determine business requirements for information systems

Deliver information systems to meet defined requirements

Determine information processing requirements of devices

Theoretical vs. applied

Balanced

Applied

Balanced

Generic job title

Analyst/Designer

Builder

Architect and Builder

Typical starting job title

Business systems analyst

Application programmer

Engineer

Career goals

Senior organizational manager

Programming manager

Senior engineering or product manager

College home

Business

Science

Engineering


Conclusion

MIS is an integrated user-machine system for providing information to support operations, management and decision making functions in an organization. It is a combination of human and computer based resources, which result in collection, storage retrieval, communication and use of data for the purpose of efficient management of operations and for business planning. It convert data from internal and external sources into information, to communicate that information ,in an appropriate from to managers at all levels, in all functions to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible. MIS is a set of organized procedures which when executed provide information to support decision making.

References:

http://en.wikipedia.org/wiki/Management_information_system
http://www.mu.ac.in/mis.pdf
http://mis.eller.arizona.edu/careers/what.asp
http://www.management-hub.com/information-management-advantages.html
http://www.ehow.com/about_5606449_importance-management-information-system.html#ixzz1oi2HfZFw
Management Information Systems James A O'Brien , George M Marakas seventh edition Tata Mc Graw Hill)
 


Ms. Sushma Malik
Asst. Professor
FIMT
New Delhi
 

Source: E-mail May 24, 2012

          

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