CONCEPT OF MIS Management “Management can be defines as a science of using resources rationally (utilization of resources in judicious manner using appropriate skills, approaches and techniques) and economically to achieve the desired results or meet the targeted performance level ” A manager may be required to perform the following activities Determination of organizational objectives and developing plans to achieve them. Securing and organizing human and other resources in order to achieve the desired objectives. Exercising adequate control over the functions. Monitoring the results to ensure that the targeted goals are achieved as per the plan. PROCESSING STRATEGIC PLANNING MANAGEMENT CONTROL OPERATIONAL CONTROL TRANSACTION PROCESSING MANAGEMENT Management Activities INFORMATION PERSONNEL MARKETING PRODUCTION LOGISTICS FINANCE TOP ACTIVITIES THE STRUCTURE OF MIS CAN ALSO BE DESCRIBED IN TERMS OF THE ORGANIZATIONAL FUNCTIONS AS DEPCTED ABOVE Information “Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or progressive decision” A data processing system processes data to generate information. The quality of information determines the quality of action or decision. The data information cycle can be expressed as – 1. 2. 3. 4. 5. Idea Data Information Knowledge Intelligence The source and destination for any information can be – International, National, Industry, Corporate, Department and Individual. System “A system can be defined as a group of inter-related, often interacting units that together perform a task in a synchronized manner to provide the desired result” Some of the examples of the system could be – Solar system: The sun and the celestial bodies that revolve around it. Respiratory System: Describe organs involved in act of breathing. Hydraulic System: Group of interacting mechanical or electrical components. A business is also a system where resources such as people, money, material, machines etc., are transformed by various organization processes into goods and services. Conclusion MIS is a network of information that supports management decision-making. The role of MIS is to recognize information as a resource so that it can be efficiently and effectively used to achieve the organizational objectives. Thus, MIS is referred to as set of procedures that collects, processes, stores and disseminates information to support decision-making. Definitions of MIS “A system of people, equipment, procedures, documents and communications that collects, validates, operates on transformers, stores, retrieves, and present data for use in planning, budgeting, accounting, controlling and other management process.” “A system that aids management in making, carrying out and controlling decisions.” “An MIS (i) applies to all management levels; (ii) and is linked to an organizational sub-system; (iii) functions to measure performance, monitor progress, evaluate alternatives or provide knowledge for change or collective action; and (iv) is flexible both internally and externally.” Computer based Information System Computer based information system is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to collect, manipulate, store and process data into information. Components of CBIS Hardware is computer peripherals used to perform input, processing, and output activities. Software is the computer program that governs the operation of the computer. Database is an organized collection of facts and information. Telecommunications involves the electronic transmission of signals; enables organizations to carry out their processes and tasks through effective computer networks. Procedures are the strategies, policies, methods, and rules for using a CBIS. Characteristics of MIS Management Oriented: MIS should be designed in such a manner that it meets all the requirement of managers. Infact, the whole process of deciding and development of MIS begins after taking into account the management needs and keeping in view the overall objective of the management. Management Directed: Normally a highly experience representative of each department forms a part of the core and is expected to spend great deal of time during the process of system designing and thereafter for the smooth functioning of the system. Integrated: The effective use of all the resources is an important factor and contributes to the success of the management. MIS is thus expected to be catalyst and the nerve center of an organization. It has number of subsystem each performing exclusive functions therefore to make these subsystems effective; it becomes essential to view MIS as an integrated system so that the result is balanced. Elimination of duplicated data: The objective of integration can be achieved only if the duplication of data is avoided. In order to achieve this; data collection, storage and retrieval is usually confined to original source. Also, the technique of common data flow and minimum data processing effort results in producing effective MIS. Futuristic: Design of MIS and implementation are kept in view for the future organization’s objective and requirement of various users at different levels. Therefore, heavy planning element is needed to make it effective over long period of time. Computerized: MIS can be computerized because of its nature as a comprehensive system. This provides faster creation and assessing of files, accuracy, consistency, reduction in clerical work, minimizing human error etc. Limitations of MIS The quality of the outputs of MIS is largely governed by the quantity of inputs and processes. MIS is not a substitute for effective management. It is merely an important tool in the hands of executive for decision-making and problem solving. MIS may not have requisite flexibility to quickly update itself with changing needs of time, especially in fast changing and complex environment. MIS cannot provide tailor-made packages suitable for the purpose of every type of decisions made by managers. MIS takes into account only the quantitative factors. Non-quantitative factors like morale and attitude of the members of the organization, which have an important bearing on decision-making process, is conveniently ignored. MIS is less useful for making non-programmed decisions. The effectiveness of MIS gets reduced in the organization of the type where information sharing is not adopted as culture. MIS effectiveness decreases if there is frequent change of guards at the top management and/or frequent alterations in the organizational structure or the operational team.