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Introduction
Before one can explain management information systems, the terms systems, information,
and management must briefly be defined.
A system is a scientific method of inquiry, that is, observation, the formulation of an idea,
the testing of that idea, and the application of the results. The scientific method of
problem solving is systems analysis in its broadest sense. Data are facts and figures.
However, data have no value until they are compiled into a system and can provide
information for decision making.
Information is what is used in the act of informing or the state of being informed.
Information includes knowledge acquired by some means. It is processed data which in
turn is collection of raw facts, observations and figures.
Definition of MIS
Management information systems are those systems that allow managers to make
decisions for the successful operation of businesses. MIS refers broadly to a computer-
based system that provides managers with the tools for organizing, evaluating and
efficiently running their departments. In order to provide past, present and prediction
information, an MIS can include software that helps in decision making, data resources
such as databases, the hardware resources of a system, decision support systems, people
management and project management applications, and any computerized processes that
enable the department to run efficiently.
Within companies and large organizations, the department responsible for computer
systems is sometimes called the MIS department. Other names for MIS include IS
(Information Services) and IT (Information Technology).
'MIS' is a planned system of collecting, processing, storing and disseminating data in the
form of information needed to carry out the functions of management. According to
Phillip Kotler "A marketing information system consists of people, equipments, and
procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate
information to marketing decision makers."
The terms MIS and information system are often confused. Information systems include
systems that are not intended for decision making. MIS is sometimes referred to, in a
restrictive sense, as information technology management. That area of study should not
be confused with computer science. IT service management is a practitioner-focused
discipline. MIS has also some differences with Enterprise Resource Planning (ERP) as
ERP incorporates elements that are not necessarily focused on decision support.
Management information system would mean a set of computer based systems and
procedures implemented to help managers in their crucial job of decision making. The
actual process of MIS will involve the collection, organization, distribution and storage of
organization-wide information for managerial analysis and control. It is better understood
if these components are understood. Management Information Systems (MIS), sometimes
referred to as Information Management and Systems, is the discipline covering the
application of people, technologies, and procedures — collectively called information
systems — to solving business problems. Management Information Systems are distinct
from regular information systems in that they are used to analyze other information
systems applied in operational activities in the organization. Academically, the term is
commonly used to refer to the group of information management methods tied to the
automation or support of human decision making, Business computers were used for the
practical business of computing the payroll and keeping track of accounts payable and
receivable. As applications were developed that provided managers with information
about sales, inventories, and other data that would help in managing the enterprise, the
term "MIS" arose to describe these kinds of applications. Today, the term is used broadly
in a number of contexts and includes (but is not limited to): decision support systems,
resource and people management applications, project management, and database
retrieval application.
1. Concept of Management
2. Information
3. Information system
A. Concept of Management
B. Information
It is other way considered as collection of data. In fact the words are different. Data refers
to facts. These facts may be expressed in numerical, text, image or voice. Data usually
take the form of historical records.
As businesses have evolved, the need for both fast access to quality intelligence and
independence at the business unit level have made it imperative and challenging to
manage information assets more effectively, efficiently and wisely. Developing and
implementing a complete strategy for how information about suppliers, customers,
competitors and global markets is obtained, validated, stored, managed, accessed,
analyzed and distributed is now central to organizational survival and profitability.
To make the most of opportunities, organizations must maximize the business value of
information and leverage investments made in all data management technologies. The
rewards will go beyond survival to quickness, compliance, innovation, and in the end,
competitive advantage.
The following are the several common ideas of information system in MIS
C. Information System:
The next component of MIS is information system which is most loosely used in
management literature. The information system is a system of group of interrelated
components working together towards a common goal by accepting inputs and producing
outputs in an organized transformation process. In this system there are three basic
components or functions are involved. i.e., Input, Processing and Output.
Input: It involves capturing and assembling elements that enter the system to be
processed. In general what ever the date after collection to enter into the computing
system for further processing is called input. For example. Raw Material, energy, data
and human efforts must be secured and organized for further processing.
Processing: After successful of input and involves transformation processes that convert
into output. Example: Manufacturing process, human breathing process and mathematical
calculations etc.,
Output: After successful of the processing and it involves transferring elements that have
been produced by transformation process to their ultimate destination. Example: Finished
products, human services and management information.
Role of MIS
At its basic level, MIS monitors day-to-day activities and distributes information on those
activities to middle management to support and enhance tactical decision-making. For
example, MIS not only gives middle managers the information they need to make
informed decisions on how to best organize resources to achieve their division's goals,
but also reports on whether those goals are being met.
At the most senior levels of management, MIS provides the information necessary to
make informed strategic decisions. Upper management uses MIS output to evaluate
performance, manage resources, comply with regulatory requirements, and manage risk
— including assessing the effectiveness of existing risk management controls.
Impact of MIS
Disadvantage of MIS:
• However, IT can often lead to information overload, meaning that managers have
to sift through an insurmountable amount of stored data and thus hindering timely
decision-making. This problem is not as serious as first thought, though.
Information overload is not an IT problem but more of a documentation problem.
Furthermore, management tends to adapt to IT problems once it gets used to the
idea of the new technologies. Inaccurate reporting can lead to flawed decision-
making and planning. MIS typically extracts data from many different financial
and transaction systems running on various computer platforms, which can often
lead to inaccurate and inconsistent reports unless appropriate control procedures
are in place. Even if the information is accurate, the predefined reports generated
by MIS may not always anticipate the information needs of individual managers
at all times; or the correct information is not available when needed, or is simply
hard to access. Because of these deficiencies in MIS, managers are increasingly
turning to interactive decision support systems to obtain the information they need
for planning and control.
Process of management
Management in all business and human organization activity is simply the act of getting
people together to accomplish desired goals and objectives. Management comprises
planning, organizing, staffing, leading or directing, and controlling an organization (a
group of one or more people or entities) or effort for the purpose of accomplishing a goal.
Re-sourcing encompasses the deployment and manipulation of human resources,
financial resources, technological resources, and natural resources.
Management can also refer to the person or people who perform the act(s) of
management.
Organization structure
Every organization is composed of certain parts. These parts then have their various
functions and are interdependent on each other for a smooth functioning of the
organization. An organization’s structure is a framework that allots a particular
space for a particular department or an individual and shows its relationship to the
other. An organizational structure is a mostly hierarchical concept of subordination of
entities that collaborate and contribute to serve one common aim.
An organization’s structure may be of many types, the most common of these being:
• The hierarchical organizational structure
• The flat organizational structure.
1. People
2. Task
3. Technology
4. Structure
5. Culture
Organizational behavior
The study of OB has proved beneficial in many ways. The benefits of studying OB are as
follows:
1. OB is a systematic study of the actions and attitudes that people exhibit within the
organization. It also helps any individual to understand his behavior.
2. OB has proved instrumental for managers in getting their work done effectively.
3. OB lays emphasis on the interaction and relations between organization and individual
behavior. It works as a positive attempt in fulfilling psychological agreement between
organization and the individuals.