Management Information Systems

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Unit 1

Introduction to Management Information Systems

Structure: 1.1 Introduction Objectives 1.2 What are Management Information Systems? 1.2.1 1.2.2 1.2.3 1.3 Introduction Interpretation of MIS Concept Self Assessment Questions (for section 1.2)

Organization and Management 1.3.1 1.3.2 What Are Organizations? Management

1.4

The concept of information 1.4.1 Meaning 1.4.1.1 1.4.1.2 1.4.1.3 1.4.2 Information as Processed Data Information as the Opposite of Uncertainty Information as a Meaningful Signal

Uses of information 1.4.2.1 1.4.2.2 1.4.2.3 Information as a Resource Information as an Asset Information as a Commodity

1.4.3

The Cost of Information 1.4.3.1 1.4.3.2 1.4.3.3 1.4.3.4 1.4.3.5 Acquiring Information Processing Information Storing Information Retrieving Information Communicating Information
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1.4.4

The Need for Information Systems 1.4.4.1 1.4.4.2 1.4.4.3 Individual Needs Managerial Needs Organizational Needs

1.4.5 1.5

Self assessment questions (for section 1.4)

Information Technology 1.5.1 1.5.2 The Role of Information Technology Components of Information Technology 1.5.2.1 1.5.2.2 1.5.2.3 1.5.2.4 1.5.3 Software Hardware Database Management Systems Data communication technology

Self assessment questions (for section 1.5)

1.6

Managing Information in a Global Environment 1.6.1 Information management model 1.6.1.1 1.6.1.2 1.6.1.3 1.6.1.4 Diagnosis Evaluation Design Implementation

1.7

Management information system as a discipline 1.7.1 1.7.2 Relationship of MIS to Reference Disciplines Self assessment questions (for section 1.7)

1.8 1.9

Summary Terminal Questions

1.10 Multiple Choice Questions 1.11 Answers to SAQs, TQs and MCQs

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1.1 Introduction
With this unit, we shall embark on the journey of Management Information System. Begin by discussing a brief outline of MIS, management and organization. We shall conclude by the MIS as a discipline. Objectives: At the end of this unit, you should be able to Define Management Information system Explain the various needs of the information Understand Management and organization Explain Information management model How MIS evolved from the past to the present

1.2 What are Management Information Systems?

1.2.1 Introduction Management information system (MIS) is an organized portfolio of formal systems for obtaining, processing, and delivering information in support of the business operations and management of an organization. The functions of information systems have increased many folds since the first computer was introduced into a business organization in 1954. Of course, we must not forget the weighty ledgers, sedulously kept by the bookkeepers of yore, pigeons carrying news of battles won and heralding profitable speculation opportunities for the recipient, and the clay tablets on which the Babylonians kept records as long ago as 3500 B.C. There were information facilities before computers. Manual calculation and non-electronic communications have not disappeared, but could they support the complex business of today's organizations.

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Today's organizations have been profoundly affected by both the technology push created by continual innovation in information technology, and the demand-pull, or the needs in the marketplace, arising from the growing complexity of social organizations and from the recognition of the power of information systems to solve complex problems. These two forces have led to the evolution of the MIS concept itself and have changed the nature of information systems. In turn, MIS transform organizations, the nature of work, and the products offered in the marketplace. 1.2.2 Interpretation of MIS Concept In our broad interpretation of the MIS concept, these information systems include all of the following: Transaction processing systems for operational data processing that are needed, for example, to register customer orders and to produce invoices and payroll checks. Management reporting systems capable of producing reports for specific periods, designed for managers responsible for specific functions in a firm. Decision support systems (DSS) expressly designed for the support of individual and collective decision making. Executive information systems, which support the work of senior executives and of company boards by giving them ready access to a variety of summarized company data against a background of general information on the industry and the economy at large. Office information systems, which support and coordinate knowledge work in an office environment by handling documents and messages in a variety of forms-text, data, image, and voice.

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In a broader sense, knowledge work is also supported by computerized systems assisting professionals in non-managerial functions. For example, diverse professional support systems help designers, such as engineers, architects, commercial artists, or scientists who model molecular structures or study the genetic codes of living matter.

Executive Information Systems

Decision Support Systems

Management Reporting Systems

Transaction Processing Systems

Office Information Systems

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From the organizational point of view, it is important to recognize that certain systems of different types are interorganizational: they integrate the organization with other firms. In figure 1.1, operational support systems assist in the day-to-day activities of the enterprise by keeping track of its resources and commitments. Through such systems, a manufacturing company can track the inventory of finished goods, a bank can maintain the status of demand deposits for its customers, and a distributor's system can answer customer queries regarding orders. The primary function of operational support systems is thus transaction processing. Management support systems, assist the various levels of management in their tasks and managers are able to obtain summary reports on past, current, and projected activity within their areas of responsibility. Decision support systems allow managers to consider various courses of future action and see projected results in order to plan future activities. Executives are able to get an overview of the company's operations in attractive graphical form and "drill in" on any aspect they want to pursue in more detail. Office information systems support diverse aspects of individual and group knowledge work. The range of this type of support is broad and growing. An individual may maintain his or her business calendar and communicate with co-workers through the medium of electronic mail in some systems, also by sending images. Other systems offer a variety of computerized supports for team work, even when the participants are widely dispersed. In many cases, the information systems of an organization become connected to those of its suppliers and customers or to providers of information about the external environment in which the firm operates. Such
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interorganizational it formation systems speed the flow of information between companies and are frequently a source of competitive edge. Indeed, it is increasingly common to design certain information systems to give a company a superior competitive position in the marketplace by helping it offer its customers information-related products or services that the competition will find difficult to match. An ordering system with terminals installed at thousand of client sites, or an expert system that helps to diagnose via telecommunication links how equipment installed at customer sites is operating, are prime examples of strategic information systems. 1.2.3 Self Assessment Questions (for section 1.2) 1. What do you understand by Management information system? 2. What does management information system include?

1.3 Organization and Management

1.3.1 What Are Organizations? Organizations are formal social units devoted to the attainment of specific goals. Organizations use certain resources to produce outputs and thus meet their goals. For example, a business firm that produces semiconductor memory chips consumes certain resources (money, materials, labor, machinery, and information) and aims to meet certain financial objectives. A local government institution employs its resources (financed by the tax payers) to provide a benefit for the area population-thus, a motor vehicle bureau licenses drivers and vehicles. A nonprofit hospital applies its resources to provide health care to its target population. 1.3.2 Management Management is the process of providing an organizational environment in which individuals work and employ available resources to attain aims that contribute to the overall goals of the organization.
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There are several fruitful ways to understand management. The classical way is to consider the managerial functions: planning, organizing, staffing, leading, and controlling. Decision-making, monitoring, and coordination are information-intensive aspects of these managerial functions. Another way to look at management is to consider the roles managers play in their work-entrepreneur and resource allocator are two examples of these roles. Detailed analyses have also been made of how managers actually spend their time; various interpersonal tasks have been found to make far greater demands on managers' time than pure decision-making. However, the quality of management cannot be evaluated by measuring time allocations alone. Moreover, the information that a manager brings to bear in a meeting is often a determinant of its success. An MIS, obviously, is designed to support managers in as many of their functions as possible, although to different degrees. It is clear, for example, that the leadership function receives scant support from MIS, but the planning function should be extensively supported.

1.4 The Concept of Information

1.4.1 Meaning Information is a complex concept that has a variety of meanings depending on its context and the perspective in which it is studied. It could be described in three ways 1) as processed data, 2) as the opposite of uncertainty, and 3) as a meaningful signal-to illustrate the richness of the concept of information.

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1.4.1.1 Information as Processed Data Data are generally considered to be raw facts that have undefined uses and application; information is considered to be processed data that influences choices, that is, data that have somehow been formatted, filtered, and summarized; and knowledge is considered to be an understanding derived from information distinctions among data, information, and knowledge may be derived from scientific terminology. The researcher collects data to test hypotheses; thus, data refer to unprocessed and unanalysed numbers. When the data are analysed, scientists talk about the information contained in the data and the knowledge acquired from their analyses. The confusion often extends to the information systems context, and the three terms maybe used interchangeably. 1.4.1.2 Information as the Opposite of Uncertainty A different perspective on information derives from economic theory and defines information as the negative measure of uncertainty; that is, the less information is available, the more uncertainty exists, and conversely, the more information is available, the less uncertainty exists? In microeconomic theory the equilibrium of supply and demand depends on a market known as a perfect market, where all buyers and sellers have complete knowledge about one another and where uncertainty does not exist. Information makes a market perfect by eliminating uncertainties about supply and demand. In macroeconomic theory, firms behave according to how they read the economic climate. Economic signals that measure and predict the direction of the economy provide information about the economic climate. The firm reduces its uncertainty by decoding these signals. Taking an example of Federal Express in USA, each incoming aircraft has a scheduled arrival time. However, its actual arrival depends on unforeseen conditions. Data about when an aircraft departed from its destination is
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information in the economic sense because it reduces uncertainty about the aircraft's arrival time, thereby increasing Federal Express's ability to handle arriving packages. Managers also define information in terms of its reducing uncertainty. Because managers must project the outcomes of alternatives in making decisions, the reduction of uncertainty about the outcomes of various alternatives improves the effectiveness of the decision- making process and the quality of the decision. 1.4.1.3 Information as a Meaningful Signal Information theory, a branch of statistics concerned with measuring the efficiency of communication between people and/or machines, defines information as the inputs and outputs of communication. Electronic, auditory, visual, or other signals that a sender and receiver interpret similarly convey information. For example, in the recruitment scenario about, the resumes and applications for the open positions are information because they are signals sent by the applicants, and interpreted similarly by both. The Managers in their roles as communicators both generate and receive information. They receive reports that organize signals or data in a way that conveys their meaning. Reports of sales trends become information; so do reports about hazardous waste sites. Managers derive meaning from the information they see and hear as part of communication and use it to make decisions. This definition of information requires a manager to interpret a given signal as it was intended. For example, a manager's incorrect interpretation of body language in a negotiation would not be considered to be information from this perspective, although we know that managers use both correct and incorrect perceptions as information in decision making and other managerial functions. Again, this view of information suggests the complexity of the concept and the value of a multifaceted definition.
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1.4.2 Uses of information Organizations may use information as a resource, as an asset, or as a commodity. 1.4.2.1 Information as a Resource We generally think of organizations using money, people, raw materials, machinery, or even time as resources-inputs to the production of outputs. Information can also be viewed as a resource. Social workers use information about clients in helping them become more functional. Physicians use case histories of patients as inputs to diagnosis and prescription. Resources can also substitute for one another to some degree. Capital in the form of automated equipment can reduce labor required for production. Similarly, information can replace either capital or labor. Organizational members may also use information to decrease the cost or increase the quality of the final product or service. 1.4.2.2 Information as an Asset An asset is the property of a person or an organization that is used to produce a company's output and does not get used up as a resource does. Some resources are converted to assets that can be used over an extended period, such as the use of capital to purchase equipment that, in turn, becomes an asset. The information resource is similar, but not identical, to other resources in this respect. Information, even if used immediately, is rarely actually consumer. For example, when managers use data about a Department Store sale to determine whether inventory should be replenished, the sales data remain available as a resource for use in other analyses. In some cases, such as the Federal Express aircraft departures, the information quickly loses some value after its use, although it may have subsequent value as a resource for historical analyses. As a corporate
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asset, then, information is comparable to plant, equipment, and goodwill. It can even be viewed as inventory, with information considered as a raw material, work in process, or finished goods. The asset model of information encourages management to view information as an investment that managers can use strategically. Unlike resources, which managers seek to use efficiently to produce output, managers view assets as giving the organization an advantage over its competitors. For example, the information collected by Department Store about its sales may be extremely valuable to its suppliers and competitors. 1.4.2.3 Information as a Commodity Like corn, automobiles, washing machines, or other commodities, information is a saleable product. Some companies use information primarily to sell it. For example, credit bureaus collect information on your credit history to sell to your potential creditors. In our service-oriented economy, an increasing number of organizations are adopting a commodity view of information viewing it as a saleable product. 1.4.3 The Cost of Information Although information can be valuable, it is costly to use. Acquiring, processing, storing, retrieving, and communicating information each have costs. 1.4.3.1 Acquiring Information The acquisition of information is a first step in its use. We can obtain information from either formal or informal sources. Formal sources provide information in a relatively organized and predictable fashion, for example, business forms; electronic monitoring equipment such as digital

thermometers; and machine-readable purchased data such as an encyclopaedia (Personal records, corporate annual reports, summarized
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transaction histories) on a compact disc. Informal sources provide information in a less structured way and include conversations with customers, suppliers, and other employees, as well as general observations of personal and organizational activities. Generally, acquiring information through informal sources costs less, but the information acquired may be harder to organize and use effectively. Data acquisition can occur manually or electronically. Managers often handwrite evaluation reports or salespeople maintain written records of customer orders. Increasingly, managers can enter evaluation data directly into the computer, and salespeople can use point-ofsale terminals to record detailed sales information electronically. Experts estimate that electronic forms for capturing data cost at least 70 percent less to design, purchase, use, carry, and revise than the equivalent paper forms. 1.4.3.2 Processing Information Processing information describes transforming it into a usable form. Processing typically occurs at two times: first, between the acquisition and storage of information, and second, between its retrieval and

communication. The processing that occurs between acquisition and storage generally requires a large amount of personal labor. Manual processing, involves duplicating, sorting, and filing data. Electronic processing, such as with electronic scanners, involves transforming and entering the data into an electronic form. Although both manual and computerized processing may require significant clerical time and incur high costs, electronic processing can reduce these costs. Processing occurs between storing and communicating information for both manual and computerized systems. In manual systems, filing clerks typically perform the processes of retrieval, formatting, and display. When summaries or special analyses are required, analysts with special skills, such as skills in finance
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or accounting, may process the data. Manual information processing involves high labour and time costs but low equipment costs. Manual processing of large volumes of data tends to be more expensive than computer processing. In computerized systems the processing between retrieval and communication allows more analysis and display possibilities in a shorter time. The costs of computerized processing include rental or depreciation of computer equipment, the labor costs of operating the equipment, and the costs associated with programming software to retrieve, format, and display information. Computerized processing involves lower labour and time costs but higher equipment costs than manual processing. 1.4.3.3 Storing Information The primary cost of storing information is the cost of the storage medium and space oncomputerized storage uses paper, microform, or both. These media require much more physical storage space than electronic media and typically incur a greater cost for leasing or buying space than do electronic media. Computerized storage uses a variety of media, including hard disks, diskettes, pen drives and CD-ROM, depending on the amount of information to be stored and the desired speed of retrieval. The organizational overhead to monitor and control information storage, including staff salaries and physical equipment, adds to the cost of information storage. Most large companies keep duplicates of their electronically stored information at a secure site remote from their processing facilities to ensure that the data can be retrieved in the event of a disaster such as a fire or flood or terrorist strikes. In addition, most companies keep duplicate paper or microform copies of much of their data. The cost of the media, physical facilities, and staff for these backup systems also contributes to the storage costs.

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Both document and electronic storage have an ancillary cost for storing the documentation needed to locate information. Storing large amounts of data calls for simultaneously developing and storing an index or map that assists in locating the data. 1.4.3.4 Retrieving Information Retrieving desired data from manual systems can be time consuming and expensive executives spend approximately six weeks a year on average looking for misplaced material. Secretaries may spend as much as 30 percent of their time looking for paper documents and approximately 20 percent of that time searching for misfiled items. Because paper files require large amounts of space, managers may store the data on a different floor or even in a different building. The labour costs of retrieving even small amounts of information exceed those for retrieving information electronically unless the organization can create small and compact storage for its paper records. Electronic systems provide rapid and inexpensive access to information stored electronically in an organized fashion. The costs incurred are only those of using the computer equipment for a fraction of a second, particularly when retrieval is part of ongoing processing. If an individual requests the retrieval, it may require additional processing to translate the retrieval request from a form understood by the person to a form understood by the computer. Then the information is stored in a different place from where it is requested, the request must be transmitted electronically to where the data are stored, and the retrieved data must be transmitted back. Communication costs are relatively low for small amounts of information, but the communication equipment and infrastructure can be expensive unless amortized over a sufficiently large volume of data communication. Companies that have small communication needs can pay to use the infrastructure of third parties, such as telephone companies.

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1.4.3.5 Communicating Information Manual transmission of information occurs frequently and easily in most organizations. Most organizational members rely on face-to-face

communication in formal or informal setting or on written publications for much of the information they require to do their jobs. But face-to-face communication requires 'extensive amounts of time, a scarce resource in most organizations. Written media, such as memos, reports,

advertisements, or other document can effectively transmit small amounts of information to large numbers of people. Transmitting information long distance or exchanging large volumes of data can occur more effectively by electronic communication. Telephone, television, videoconferencing, fax or other electronic data transmission can instantaneously establish

communication in among individuals, groups, organizations, or data repositories or each unit of information transmitted, electronic media are much less expensive than written or oral media. 1.4.4 The Need for Information Systems Individuals, organizations, and society need to use a variety of systems to organize the collection, storage, processing, retrieval, and communication of information. Personal needs tend to be simple as individuals deal with relatively small amounts of data. Organizations collect extensive amounts of information, have a great need to share information among their members, and so generally have more formal and extensive systems for information management than do individuals. Individuals and companies use a variety of systems to satisfy these needs. 1.4.4.1 Individual Needs Individuals need information systems both at work and at home. At work, individuals use file folders or piles on a desk to organize information stored on paper, directory systems to organize files on a computer disk or diskette,
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and calendars to organize information about future events. Increasingly, individuals use laptops or other portable electronic equipment to meet their information needs. Case workers at some public housing agencies, for example, use a portable computer office, which incorporates a small computer and cellular telephone to enable case workers to enter data onsite and then transfer it later at the agency's headquarters to a larger machine for processing. Executives at Matsushita Electric of Canada have given portable technology to their staff and managers to allow them to work outside the traditional workplace, such as when visiting prospective and actual clients. At home, individuals employ systems such as posting memonotes on a refrigerator, setting alarm clocks, or scheduling regular times to share information with family and friends. An individual who lacks such aids combined into a personal information system may miss important appointments or fail to accomplish important tasks. Although systems for information management by individuals generally have few components and even fewer procedures, increasingly individuals are using sophisticated personal financial managers for personal budgeting, investment tracking, and bill paying. 1.4.4.2 Managerial Needs Most managers require significant amounts of information to perform their jobs. They typically maintain information about employee performance, customer preferences, industry trends, and other subjects. Increasingly managers use computerized systems to assist with obtaining, maintaining, and using information; motivating, developing, and communicating with other organizational members; and making decisions, negotiating

agreements, and managing resources. As managers become more sophisticated in performing their tasks, they require increasingly

sophisticated systems to help them meet their information needs.

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1.4.4.3 Organizational Needs Because of the value of information to organizational performance, most organizations develop procedures to ensure that important information is collected, captured accurately, and organized effectively. Individual jobholders, various types of computer equipment, and an array of computer software facilitate such information management. For example, some employees may collect information while others process it or analyse it. Organizations that lack quality information systems may experience problems in accessing the data they need for executive decision making, lose important data during a relocation or power failure, perform redundant activities in dealing with customers or suppliers, or fail to respond quickly to changes in the marketplace or industry. Consider a logistics agents like Blue Dart without a quality information system, Blue Dart may have massive data about package pickups but lack the procedures to translate these data into efficient systems for package delivery. Many organizations even establish a special group that manages and develops information systems for the entire organization. Information systems also make global news and information quickly available. They allow businesses to operate internationally by making information about transactions available to managers and other workers in any country. 1.4.5 Self Assessment Questions (for section 1.4) 1. Define information. 2. What are the different uses of information? 3. Explain the various cost involved with information 4. What are the various needs of information?

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1.5 Information Technology

1.5.1 The Role of Information Technology Modern technology provides many tools to help managers acquire, process, store, retrieve, and communicate information. Information technology has allowed individuals, groups, and organizations to manage information effectively and efficiently. Consider the large networks of data available to financial analysts, marketing experts, or human resources professionals. Think about the availability of encyclopaedias, texts, supermarket prices, airline schedules, and other information through data services. Now consider the ability to telephone or send mail electronically almost instantly from the United States to Europe and Asia. Significant advances-in information technology have made large quantities of information available to organizational members and other individuals at a relatively low cost. Many homes have personal computers and household devices with computer microchips. This widespread availability of computer technology has dramatically changed the way people process, store, and retrieve information. 1.5.2 Components of Information Technology Information technology includes computer software, hardware, database management systems, and data communication systems. How does the computer system at Department Store know how to process sales information? What tells the computer system at Federal Express how to record the arrival or departure of aircraft? 1.5.2.1 Software Computer software provides the instructions, in the form of computer code and its accompanying documentation, for processing data electronically. Systems software directs the functioning of the computer machinery.
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Applications software assists in the acquisition, processing, storage, retrieval, and communication of information. Software development tools such as computer languages and screen generators facilitate creating or modifying software to respond to an organization's information needs. Individuals and organizations can purchase an array of software products. Off-the-shelf software is mass-produced software made for a variety of generic uses such as word processing. Sometimes managers and other organizational members require experts to write customized software because they have a unique need that no off-the-shelf software adequately meets. In some circumstances these same employees may develop their own software that they modify over time to meet their changing work or personal needs. 1.5.2.2 Hardware Computer hardware refers to the equipment used in electronic information processing. Significant strides have occurred in the development of hardware in the last decade. While processing power has increased, the size of the hardware has decreased considerably. Today desktop and portable computers costs are continuously reducing and can outperform the room-sized, million-dollar computers of ten years ago. Input hardware captures raw data and information from interactive uses. Processing hardware converts or transforms data. Storage hardware includes removable and fixed media that allow rapid access to information. Output hardware provides copies of data on paper, microform, and video screens; it offers varying quality for graphics, print, voice, or other effects. 1.5.2.3 Database Management Systems Database management system offers a vehicle for storing and supporting the processing of large quantities of non- scientific information, such as data on employees, products, customers, and suppliers. This technology allows
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managers to easily access, sort, and analyse databases of information along a variety of dimensions. 1.5.2.4 Data communication technology Data communication technology has dramatically improved the

communication of information across short and long distances. Managers and other employees can easily send data from one plant location to another or access data located halfway around the world using dial-in options, computer networks, video conferences, and other electronic media. Advances in communication technology occur frequently, reducing the cost and increasing the accuracy and speed of data transmission. 1.5.3 Self Assessment Questions (for section 1.5) 1. Explain the role of information technology in the modern organisation 2. What are the various components of information technology

1.6 Managing Information in a Global Environment

Organizations today function in a global environment. They buy and sell products outside their home country, open subsidiaries, plants, or distribution centers around the world, and communicate worldwide. The current state of information technology has facilitated the expansion of organizational boundaries. One recent study of computer-based information systems in 72 companies in the People's Republic of China, for example, suggested that most of these firms rely on stand-alone microcomputers and use computer applications for support functions rather than such pivotal functions as order entry or billing. This usage differs significantly from that found in many United States companies. 1.6.1 Information Management Model An analytical model, to facilitate the effective use of information in managerial decision making. This model involves four steps diagnosis,
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evaluation, design, and implementation. This model has some of the same characteristics as the systems development life cycle. The information management model is intended to complement the systems development life cycle; the four-phase model is directed at users of information systems rather than information systems professionals or other systems designers. 1.6.1.1 Diagnosis Managers, employees, and other individuals must begin by assessing their needs for information within a particular situation they face. Diagnosis requires a description of the existing problem, the context in which it occurs, the type of information available, the type of information required to solve it, and the possible ways of securing the needed information. Diagnosis of information needs can occur at the individual, managerial, or organizational levels. Individuals must assess their information needs at work and home. Managers often have needs for transaction processing, financial control, project management, and communication, among others. Organizations use information to increase their competitive advantage, such as by improving customer service, cost control, or quality monitoring. They also must identify the information they need for developing and implementing their organizational strategy. Society, too, uses information for communication, economic development, and generally improving the quality of life. Specifying in detail the information needs at each of these levels is the first step in the effective management of information. 1.6.1.2 Evaluation Evaluation of the methods, techniques, and systems for handling information follows the diagnosis of needs. This step begins with an assessment of the current manual or computerized systems for handling information. A manager, for example, might first describe or identify the components of the information systems and technology used to acquire,
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process store, retrieve, or communicate information. Next he or she might compare these components to available systems. How well does the current system respond to the information needs? Are systems available that would significantly improve the handling of information? What consequences will result with a change in the way information is handled? Finally, the manager or other user might determine what aspects of his or her information needs are not handled and which cannot be handled, regardless of the information technology a information systems used. Questions for evaluating information systems and Technology 1. What are the current systems for handling information? 2. Are they manual or computerized? 3. What are the components of the information systems and technology used to acquire, process, store, retrieve, or communicate information? 4. How do these components compare to available state-of-the art systems? 5. How well does the current system respond to the information needs? 6. Would other systems better respond to the information needs? 7. Would state-of-the-art systems significantly improve the handling of information? 8. What consequences will result from a change in the way information is handled? 9. What information needs are not handled and cannot be handled, regardless of the information technology or information systems used? 1.6.1.3 Design A manager, staff specialist, information systems professional, or other organizational member combines information about individual, managerial,
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or organizational needs with the assessment of current information systems and technology and then designs coherent systems for information management. Design involves correcting deficiencies in existing systems and integrating state-of-the-a practices and technology into them. Alternatively, if he expects that the information management needs might increase and that individual managers might require access to data they currently lack, he might design a system that incorporates additional computer equipment and communication software. 1.6.1.4 Implementation The final step, implementation, focuses on issues associated with putting the new or altered systems to use. Who will be responsible for overseeing the implementation? How will it occur? What additional resources will be required for implementation? What types of follow-up will occur? How will the change affect other aspects of functioning an individual or organization? Identifying the parties responsibility for implementation involves determining the roles individual managers, information systems staff, or specialists from outside the organization will play. Specifying the timetable for implementation typically follows. Top management must ensure that sufficient resources are available for the implementation as well as for dealing with changes that occur as a result of the implementation. They must also assess whether the information systems professionals function effectively throughout the four phases. Recognizing that the new system and technology likely will have unanticipated consequences should be a key aspect of planning; monitoring such effects and providing solutions for problems that arise should be part of the implementation. Implementation also includes ensuring that the new systems perform as expected and that they result in the predicted costs and savings.

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1.7 Management Information System as a Discipline

Management information systems is both an area of practice and a discipline of scholarly inquiry, because of the vital role information plays in a modern organization, proficiency in MIS is virtually a prerequisite for organizational effectiveness. 1.7.1 Relationship of MIS to Reference Disciplines As a discipline of study, MIS draws on several other established fields of scholarship to meld their results and insights into its mission: an inquiry into how organizations can make effective and efficient use of information. Drucker had defined modern organizations as information-based. Thus, the discipline of MIS plays a major role in contributing to the effectiveness of social organizations. The fields of scholarship, which underlie the discipline of MIS, are known as its reference disciplines. MIS is influenced both by the technical fields, which contribute the knowledge of technology and algorithms for optimal use of a company's resources, and by the behavioral fields, which investigate organizations and the people in them. The discipline combines theoretical investigation with a pragmatic orientation. MIS scholars learn much from the practical tasks of constructing new types of systems, producing novel organizational solutions, and using new methodologies of systems development. The fundamental reference disciplines for MIS are computer science and the theory of organizations and management. Computer science is the study of automatic processing of symbolic information. A general processor of such information is the computer. Software engineering, computer communications, database organization, and, more recently, artificial intelligence, are the fields of computer science particularly important to the field of MIS. This highly dynamic discipline conveys the technological push to the field of information systems. Thus, for example, expert systems, created by artificial
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intelligence scholars in the early 1970s, entered the mainstream of MIS in the mid-1980s. Sociological approaches help us understand the organizational behavior of people. Cognitive science, a new discipline incorporating the approaches of cognitive psychology and techniques aspiring to understand how mind arises from the brain, contributes to our understanding of understanding itself as it studies human information processing. Management science, also known as operations research (OR), is a field of applied mathematics. It provides us with mathematical tools for decision making in such areas as optimal resource allocation, optimal selection of transportation routes, or optimal inventory quantities. Systems theory contributes approaches for dealing with complexity-that of an organization or that of a software system. The use of computers in business began with accounting. MIS supports both the financial and managerial accounting functions. Financial accounting is concerned with reporting the financial position and operating results of a business entity at the end of a specific time period, such as a quarter or a year. Financial accounting reports provide information chiefly for entities external to the company (for example, for the Securities and Exchange Commission). Managerial accounting, far more important in the company decision-making process, supplies the information needed for cost planning and control through budgeting. Auditing techniques have also been adapted from accounting practice. The intellectual roots of the field of management information systems go back to the study of management as a process in which the crucial aspect is decision making. The most prominent work laying the foundations for this approach was Administrative Behavior by Herbert Simon, an influential book that appeared in 1947. The late 1940s and early 1950s saw the
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development of Norbert Wiener's idea of cybernetics and Ludwig von Bertalanffy's general system theory-both searching for a general theory of control and communication in human and mechanical systems. A classical 1948 paper by Claude Shannon led to the technical conceptualization of the idea of information. The fundamental notions of decision-making,

information, systems, and their control have their own lives in the reference disciplines. These notions have also influenced thinking on the role of information in organizations-that is, the focus of the field of MIS. As we have stressed, management information systems are unthinkable (well, perhaps only "thinkable") without computers. Technological

developments related to computers and digital communication have continually driven the field in both practice and research. Many areas of research in MIS overlap with the work done by computer scientists. The first general purpose electronic computer, ENIAC, was completed in 1946 at the University of Pennsylvania. Developed in response to problems encountered by the military during World War II, computers were thought of at the time as devices for doing precisely what their name impliescomputing. Today, the predominant tasks of computers are storing and accessing organized information and processing symbols; calculation is just one of the several functions computers perform. Mass production of computers started in 1951 when UNIVAC I was delivered commercially as the first such machine built on an assembly line. UNIVAC I was delivered commercially as the first such machine built on assembly line. UNIVAC I was also the first computer model used for business data processing when it was installed by General Electric in 1954. However, MIS as an area of practice had a rather slow start, with only some 4,000 computers installed by the end of the 1950s.

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The organizational computing landscape was revolutionized by the emergence of personal computers in the late 1970s. When appropriate software became available, the personal computer gave strength to enduser computing, furnishing an accessible means for users to develop their own applications and become true partners of MIS professionals in the use of technology for organizational benefit. The development of MIS as a field of inquiry paralleled the technological developments. The first papers analyzing the role of information systems in organizations started to appear in the second half of the 1950s. The 1958 paper by Harold Leavitt and Thomas Whisler, entitled Management in the 1980, was influential in focusing the discipline. The authors concluded that what "we shall call ... information technology" would have "definite and farreaching impact on managerial organization." They proceeded to set up a framework for analyzing this impact. Their forecast of reduction in the ranks of middle management due to senior managers' ability to directly control an organization with the support of information technology appears to have indeed come true. 1.7.2 Self Assessment Questions (for section 1.7) 1. Explain the various disciplines from which MIS has evolved.

1.8 Summary
MIS are formal systems built around the hardware backbone of computer and telecommunications systems. Formal computer-based information systems are not the only informational sources in an organization. Informal information sources must be cultivated and coordinated with the use of formal sources. MIS is not only a field of practice, but also a discipline of scholarly inquiry, drawing in part on the findings and methodologies of several reference
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disciplines. Although the field of MIS originated in the late 1950s, MIS as a discipline became established a full decade later.

1.9 Terminal Questions

1. What do you understand by management. 2. Write a note on information management model

1.10 Multiple Choice Questions

1. The first computer was introduced into a business organization in the year ______ . A. 1950 B. 1952 C. 1954 D. 1960 2. ____________ which support the work of senior executives and of company boards by giving them ready access to a variety of summarized company A. Transaction processing B. Management reporting systems C. Decision support systems D. Executive information systems 3. Organizations are formal social units devoted to the attainment of specific goals A. Management B. Information C. Organisation D. All of the above
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4. Secretaries may spend as much as ____________ percent of their time looking for paper documents A. 30 B. 40 C. 50 D. 60 5. ____________ defined modern organizations as information-based. A. Maslow B. Peter Drucker C. Gary Hamel D. C. K. Prahalad

1.11 Answers
Self Assessment Questions: Section 1.2.3 1. This has been mentioned in section 1.2.1. 2. This has been mentioned in section 1.2.2. Section 1.4.5 1. This has been mentioned in section 1.4.1 2. This has been mentioned in section 1.4.2 3. This has been mentioned in section 1.4.3 4. This has been mentioned in section 1.4.4 Section 1.5.3 1. This has been mentioned in section 1.5.1. 2. This has been mentioned in section 1.5.2 Section 1.7.2 This has been mentioned in section 1.7.1
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Terminal Questions 1. You will have to refer to section 1.3.2 2. You will have to refer to section 1.6.1. Multiple Choice Questions: 1. C 2. D 3. C 4. A 5. B

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