Management Information Systems

TVSN Murthy
Assistant Professor DFT
NIFT Hyderabad

Disclaimer: These slides are just for the purpose of easy reading and are not comprehensive in
nature. Thus the slides have to be read together with the class lectures, reading material, and
statutes dealing with the subject

Management Information Systems

MIS - Concept

Management information system (MIS)
The concept is a blend of principles, theories and
practices of management, information and system
giving rise to a single product called
MANAGEMENT INFORMATION SYSTEM.
The concept of management gives high regard to
the individual and his ability to use the information.
MIS gives information through data analysis. While
analyzing the information, it relies on many
academic disciplines like management science, OR,
organization behavior, psychology, etc.

MIS - Concept

Management information system (MIS)
The foundation of MIS is the principles of management and its

practices. MIS uses the concept of management control in its

design and relies heavily on the fact that the decision maker is
a human being and is a human processor of information.
A MIS can be evolved for a specific objective it is evolved
after systematic planning and design. It calls for an analysis of
business, management views and policies, organization culture
and the management style.

MIS - Concept

Management information system (MIS)
The MIS, therefore relies heavily on systems
theory. The systems theory offers solutions to
handle complex situations of the input and output
flows. it uses theory of communication which helps
to evolve a system design capable of handling data
inputs, process, the outputs with the least possible
noise or distortion in transmitting the information
from a source to destination.

MIS - Concept

Conceptual View of MIS

MIS - Concept

Physical View of MIS

MIS Definition

MIS is defined as a system which provides information
support for decision making in the organization

A Computer Based system that would provide flexible
and speedy access to accurate data

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.

MIS is defined as a system based on the database of the
organization evolved for the purpose o providing
information to the people in the organization.

MIS is defined as a computer based information system.

MIS - Role

The role of the MIS in an organization can be
compared to the role of heart in the body. The
information is the blood and MIS is the heart.

MIS plays the same role in the organization. The
system ensures that an appropriate data is
collected from the various sources, processed,
and sent further to all the needy destinations.

MIS Role

MIS satisfies the diverse needs through a
variety of systems such as Query Systems,
Analysis systems, Modeling systems and
Decision Support Systems. MIS helps in
strategic planning, Management Control,
Operational
control,
Transaction
processing.

MIS Role

MIS Systems are in widespread use by the
managers at operational, middle and senior
levels.

MIS Role

the term management information system can
be seen as a database management system
tailored to the needs of managers or decision
makers in an organization. MIS is
 a system using formalized procedures to provide
management at all levels in all functions with
appropriate information based on data from both
internal and external sources, to enable them to make
timely and effective decisions for planning, directing
and controlling the activities for which they are
responsible (Argyris, 1991).

Importance of MIS

A management information system is
generally thought of as an integrated, usermachine system providing information to
support operations, management and
decision-making
functions
in
an
organization.

Importance of MIS

Computers are making inroads into every
activity of human Endeavor.

Importance of MIS

Basic knowledge of information systems is
a generic skill needed by every
professional.

To the top management, is a tool to gain
insight into the overall health of the
organization itself.

Importance of MIS

MIS is a special-purpose system useful for
management in an organization.

MIS is an accessible and rapid conveyor
belt for appropriate high quality
information from its generation to its users.

The heart of an effective MIS, therefore, is
a carefully conceived, designed and
executed database.

Importance of MIS

The increasing interest in MIS had led to much
activity in developing techniques and software for
data management.

Managers need relevant information, which is
information that increases their knowledge and
reduces their uncertainty. Thus it is usable by the
manager for its intended purpose. Without
relevant information, no manager can function
effectively. A worthwhile extension to the wellknown adage that management get things done
through people,

Importance of MIS

The efficient performance of an
organization is dependent very much on the
internal performance of the organizations
resources.

Example, An organizations output
performance is directly related to the
motivation and performance of its human
resources.

Evolution of MIS

Digital computer was primarily designed for
scientific calculations.

The concept of MIS and the term MIS evolved
over the years.

The need of processing of the large volumes of
data, led to the activity widely known as
Electronic Data Processing (EDP).

Focus of EDP was on record keeping.

Evolution of MIS

Next stage of development of MIS was
concerned more with insight and analysis
that would possibly be provided by the
routing availability of such accurate and
timely data.

In seventies, the availability of discs, and
COBOL Programming language, saw a
discernible shift from data to information.

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Evolution of MIS

Emphasis was more on effectiveness of the
analysis of the data rather than on the mere
efficiency of speedy processing of data.

MIS stressed information.

In seventies, top management relied on the
staff of EDP & MIS Departments to supply
the necessary information.

Evolution of MIS

Eighties saw the PC revolution that is continuing
today.

Provides the direct end user involvement

What if analysis is the most useful payoff due
to such involvement

Other benefits includes, sensitivity analysis,
impact analysis and scenario analysis could be
performed by the end users directly.

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Evolution of MIS

PCs were useful to the managers for real
world, on spot decision making situations.

Systems which directly support decisions,
came to be known as Decision Support
Systems.

DSS combined with Expert systems came
to be known as Knowledge Based Systems

Evolution of MIS

Systems which provide information support
to Top Management is known as Executive
Information Systems

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Typical MIS

MIS can be classified in many ways.
Production

Strategic

Tactical

Operational

Finance

Personal

Marketing

New Plant Location

Alternative Financing

Welfare Policy

Competitor Survey

Production Bottlenecks

Variance Analysis

Performance

Advertising

Daily Scheduling

Payroll

Leave Records

Sales Analysis

Strategic Management of Business

performance

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Strategic Business Management

Organisations require strategic business
management services to address a variety
of needs including for complete review of
high-level strategy, fine-tuning of existing
strategy and for appraisal of specific
aspects of strategy implementation in
particular business areas.

Dimensions of planning

The corporate business plan has five
dimensions. These are time, entity,
organization, elements and characteristics.

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Dimensions of planning

Time

 The plan may either be long range or short

range.
 The plan is made on the rolling basis.
 Duration of the plan is expressed in units of
time, a year.

Dimensions of planning

Entity

 The plan entity is the thing on which the plan is

focused. The entity could be the production in
terms of quantity or it could be a new product.
 The goals and objectives would be stated in
terms of these entities.

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Dimensions of planning

Organization

 The corporate plan would deal with the

company as a whole, but it has to be taken
down for its subsidiaries. The breaking of the
corporate business plan into smaller
organizational units helps to fix the
responsibility for execution.

Dimensions of planning

Elements

 The plan is made out of several elements.

 Plan begins with the mission and goal which
the organization would like to achieve.
 May provide a vision statement, purpose, focus
and direction the organization would like to
move towards.

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Dimensions of planning

Elements

 Next it would declare the strategies in various

business functions, which would enable the
organization to achieve the business objectives
and targets.
 It would spell out a programme of execution of
plan and achievements.

Dimensions of planning

Elements

 Another important element of the plan is a

budget stipulated for achieving certain goals
and business targets.

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Dimensions of planning

Characteristics

 There are no definite characteristics of a

corporate plan.
 The choice of characteristics is a matter of
convenience helping to communicate to
everybody concerned in the organization and
for an easy understanding in execution.

Dimensions of planning

Elements

 Another important element of the plan is a

budget stipulated for achieving certain goals
and business targets.

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Essentiality of Strategic Planning

The following reasons make planning an
essential management process to keep the
business in a good shape and condition:

 Market forces
 Technological Change
 Complex diversity of business
 Competition
 Environment

Types of Strategies

A strategy means a specific decision
regarding the development of the resources
to achieve the mission or goals of the
organization.

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Types of Strategies

Strategy can be classified into four broad
classes:

 Overall company strategy

 Growth strategy
 Product strategy
 Marketing strategy

Overall company strategy

This strategy considers a very long term
business perspective, deals with the overall
strength of the entire company and evolves
those policies of the business which will
dominate the course of the business
movement.

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Growth Strategy

An organization may grow in two different
ways. Growth may either mean the growth
of the existing business turnover, or it may
mean the expansion and diversification of
the business.

Growth strategy means the selection of a
product with a very fast growth potential.

Product strategy

A growth strategy, where the company
chooses a certain product with particular
characteristics, becomes a product strategy.

A product strategy means choice of a
product which can expand as a family of
products and provide the basis for adding
associated products.

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Market strategy

The marketing strategy deals with the
distribution, services, market research,
pricing, advertising, packing and choice of
the market itself.

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