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Structure of MIS, structure of management information system
Structure of MIS, structure of management information system
STRUCTURE OF MIS Like most complex system, an MIS can be describe in no. of different ways. There are multiple structural approaches to explain the structure of an organisational information system or MIS. The information system is described in terms of 4 separate but related classification. 1. Operating element 2. Decision support 3. Management activity 4. Organisational function Operating Elements of an MIS Physical components Processing functions Outputs for users Physical components The physical components for an organisational information system are : Hardware Software Database Procedures Operational personal. Processing Functions A description of an information system in terms of physical components does not explain what the system does, just as description of a hardware configuration does not explain why it is configured in that way. Another way to describe an information system is in terms of processing function. Major processing functions are the following: Processing Functions 1. Process Transaction 2. Maintain Master Files 3. Produce Reports 4. Process Inquiries 5. Process interactive support application Process Transaction A transaction is an activity such as making a purchase or a sale or manufacturing a product. It may be internal to the organisation or may involve the organisation and an external entity. Performance of a transaction requires – direct a transaction to took place report, confirm or explain its performance. Communicate’ the transaction to those needing a record for background information or reference. Process Transaction Files Transaction Process transaction Transaction document Maintain master file Many processing activities requires creation and file maintenance of master files, which store relatively permanent or historical data about organisational entities. For ex: processing to prepare an employee’s paycheck is required data items for the employees salary, deduction etc. when transaction are proceed, master data items are updated to reflect the most current information Maintain master file Master File Transaction data Update master Updated files master files Master file changes Produce Report Reports are significant products of an IS. Scheduled and unscheduled (ad hoc)reports can be made based on requests. Produce Report Files Prepare report Report Process inquiries Other output of the IS are responses to inquiries using the database. These may be regular inquiries with a preset format or ad hoc inquiries. The essential function of inquiry processing is to make any record or any item in the database easily assessable to authorised person. Process inquiries Inquiry response Inquiry Handle Inquiry Inquiry Inquiry response Process interactive support applications The IS contains applications designed to support system for planning, analysis and decision making. The computer performs processing based on planning model, decision model etc. Process interactive support applications Decision maker Model Decision model or analyst input and processing output Output for User The user of MIS provides inputs and receives outputs. The user assessment of the Information System is therefore depend somewhat on the ease of input but is primarily based on the usefulness of the user sees. The outputs thus form one description of an IS and can be classified as been 5 major types: Transaction documents or screens Preplanned reports Preplanned inquiry responses Ad hoc reports and inquiry responses User-machine dialogue results Output for User Transaction documents are items such as sales invoices, payroll checks , customer billing and purchase order. Transaction documents refer directly to the operations of the organization , while the other types of outputs support management and control of those operations. Preplanned reports have a regular contents and formats and are usually run on a regularly scheduled basis. Ex. Are sales analysis, inventory status, and budget variance report. Reports, inquiry responses and dialog results provide 4 type of information: 1. Monitoring information 2. Problem finding information 3. Action information 4. Decision support Decision Support MIS supports for decision making . Decisions wary with respect to the structured that can be provided for making them. A highly structured decision can be preplanned or pre specified, whereas a highly unstructured decision cannot. It can be further classified in two parts: 1. Structured , programmable decisions 2. Unstructured , non programmable decisions MIS structure based on Management activities The MIS support management activity. This mean that the structure of an IS can be classified in terms of hierarchy of management planning and controlled activities. Hierarchy of Management Activity Strategic planning: definition of goals, policies and general guidelines , charting course for organisation determination of organisational activities Management control or tactical planning: Acquisition of resources Acquisition tactics, plant location, new products Establishment and monitoring of Budgets Operational planning and control Effective and efficient use of existing facilities and resources to carry out activities within budget constraints. The three levels of management activities can be differentiated on the basis of planning horizon of each level. Strategic planning - long term horizon Management control – medium term horizon Operation control – short term horizon Information requirement by level of information activity Characteristics of Operational control Management Strategic planning information control Source Largely internal External Scope Well defined, Very Wide narrow Level of detailed aggregate aggregation Time horizon Historical Future Required accuracy High Low Frequency of Use Very frequent In frequent Information system for operational control Operational control is the process of ensuring that operational activities are carried out effectively and efficiently. Operational control makes use of pre established procedure and decision rules. A large % of decision are programmable. The procedure to follow are generally quite stable. The operating and resulting action usually cover short time period(a day to a week). Information system for operational control Processing support for operation control consist of Transaction processing Report processing Inquiry processing These 3 type of processing contains various decision making routines which implements pre- specified decision rules or provide output describing the decision that would be taken unless the user responsible override it. Transaction processing Files Transaction Transaction Transactions processing output Report processing Files Operational Operational report processing control report Enquiry processing Files Inquiry Inquiry processing Inquiry response Information system for management control Management control information is required by managers of departments, profit centers etc., to measure performance, decide on control actions, formulate new decision rules to be applied by operational personal, and allocate resources. Summary information is needed; it must be proceed so that trends may be observed, reasons for performance variance may be understood, and solution may be suggested. Information system for management control The management control process requires the following types of information: 1. Planned performance ( standard, expected, budgeted, etc) 2. Variance from planned performance 3. Reason for variances 4. Analysis of possible decision or courses of action. Information system for management control The database of management control consist s of two major elements: 1. The database provided by the operational. 2. The plans, standard, budget etc., which define management expectation about performance. Information system for management control The processing requirements to support the management control activities are following 1. Planning and budget model to assist managers in finding problems in direction and in preparing and revising plans and budget. 2. Variance reporting programs to process schedule reports showing performance and variances from planned performance or other standard such as competitor’s performance. 3. Problem analysis models to analyse data to provide input for decision making. 4. Decision models to analyse a problem situation and provide possible solution for management evolution. 5. Enquiry models to assist in responding to enquiries. The outputs from the management control information systems plans and budget, scheduled reports, special reports, analysis of problem situation, decisions for review and enquiry responses. Information system for management control Database Transaction based files Budgets, standards, plans etc Other Processing Program Planning/ budget modules Plans and budgets Variance Reporting Scheduled reports Requests Special reports Inquiries Problem analysis Analysis Problems models Decision for review etc Inquiry response Decision models Inquiry processing Information system for Strategic Planning The purpose of strategic planning is to develop strategy by which an organisation will be able to achieve its objectives. The time horizon for strategic planning tends to be fairly long, so that fundamental shift in the organisation may be need. Strategic planning activities do not have to occur on a periodic, regular cycle as do management control activities. They can be somewhat irregular, although some strategic planning may be scheduled into the yearly planning and budgeting cycle. Information system for Strategic Planning Data requirements for strategic planning are generally processed, summarized data from a variety of sources. There is need of considerable external data. Some example of types of data that are useful in strategic planning- Outlook for the economy in the companies current and prospective areas of activity. Current and prospective political environment. Opportunities for the new ventures based on current or expected development.
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