Structure of MIS by VishalMiskin

VIEWS: 11,455 PAGES: 35

Structure of MIS, structure of management information system

More Info
    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
   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


 Transaction          Process transaction   Transaction
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


Transaction data

                       Update master
                                       master files

Master file
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
   These may be regular inquiries with a preset format or ad hoc
   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
                    Handle Inquiry

 Inquiry                                Inquiry
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
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
    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
Characteristics of   Operational control Management   Strategic planning
information                              control
Source               Largely internal                 External
Scope                Well defined,                    Very Wide
Level of             detailed                         aggregate
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


                     Transaction   Transaction
                     processing    output
Report processing


             Operational       Operational
           report processing   control report
Enquiry processing


   Inquiry           Inquiry processing   Inquiry
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
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
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
                                     based files

                             Budgets, standards,
                             plans etc


                Processing     Program
                    Planning/ budget
                                                   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
   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.

To top