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ORGANIZATIONAL DIMENSION
Information systems are part of organizations. Information systems will have the
standard operating procedure and the culture of an organization imbedded within
them. The organization dimension of information systems involves the
organizations hierarchy, functional specialties, business processes, culture, and
political interest groups. In reality today information systems affect a much larger
part of the organization itself, such as organizational products, objectives, and
structure. Powerful computers, software, and networks, including the Internet,
have helped organizations become more flexible, More and more business
activities at all levels involve the use of information systems.
MANAGEMENT DIMENSION OF INFORMATION SYSTEM
Managers perceive business challenges in the environment, they set the
organizational strategy for responding and allocate the human and financial
resources to achieve the strategy and coordinate the work. The management
dimension of information systems involves leadership, strategy, and management
behavior. Information systems supply tools and information needed by managers to
allocate, coordinate and monitor their work, make decisions, create new products,
and services and make long-range strategic decisions. Information system helps to
make teamwork and collaborative work environments Information systems help to
drive both daily operations and managerial strategies. Information systems can
help management to obtain periodic reports, These reports can be obtained from
different systems such as sales./marketing systems, Human resource systems,
accounting systems. The systems assist managers in making decision making such
as by having What-if" questions on decision support systems. Also helps senior
management to tackle and address strategic issues and long-term trends both in the
firm and in the external environment. Their principle concern is matching changes
in the external environment with existing organizational capability
TECHNOLOGY DIMENSION
The technology dimensions consist of computer hardware, software, data
management technology, and networking/telecommunications technology
(including the Internet). Management uses technology (hardware, software,
storage, and telecommunications) to carry out their functions. It is one of the many
tools managers use to cope with change.
is, they need to know if production is higher or lower than the targeted rate or if
they are over or under their budgets. They also need to know about trends instead
of straight numbers. The questions they may ask of the system would be: How far
behind in production are we for this quarter? or How many more workers would
we need if we increased production by 10,000 candy bars per quarter? or If we
do adopt the new Cybernuts recipe, what positions are open for the 25 excess
workers and what skills do they possess that the company can use elsewhere?
Decision-support systems (DSS)
DSS also serve the management level of an organization, but in a somewhat
different way from an MIS. An MIS uses internal data to supply useful
information. A DSS uses internal data but also combines it with external data to
help analyze various decisions management must make. Analyzing complex,
interactive decisions is the primary reason for a company to use a DSS.
The sales and marketing management of WorldWide Candy would use a DSS to
answer a semistructured question such as: What price should we charge for the
Cybernuts candy bar so that we can maximize our profits, minimize our costs, and
still remain competitive? Using a DSS, the manager in charge of the
manufacturing division could determine the best answer to this semistructured
question: How does the change in the size and packaging of the Cybernuts candy
bar affect the other products we produce, not just in shipping, but also on the
display shelf at the convenience store?
organization, coupled with large amounts of external data gathered from many
sources.
CONCEPT, ROLE AND IMPORTANCE OF MIS
CONCEPT
The MIS is an idea which is associated with man, machine, marketing and methods
for collecting informations from the internal and external source and processing
this information for the purpose of facilitating the process of decision-making of
the business.
MIS is not new, only the computerization is new , before computers MIS
techniques existed to supply managers with the information that would permit
them to plan and control business operations. The computer has added on more
dimensions such as speed, accuracy and increased volume of data that permit the
consideration of more alternatives in decision-making process.
The scope and purpose of MIS is better understood if each part of them is defined
individually, thus
1.
MANAGEMENT:
Management has been define in process or activities that describe what managers
do in the operation for their organization plan, organize, initiate and control
operations. They plan by setting strategies and goals and selecting the best course
of action to achieve the goals. They organize the necessary tasks for the operational
plan, set these tasks up into homogenous groups and assign authority delegation;
they control the performance standards and avoiding deviation from standard.
2.
INFORMATION:
Data must be distinguished from information and the distinction is clear and
important for present purpose. Data are facts and figures that are not currently
being used in a decision-making process and usually are taken from the historical
records that are recorded and filled without immediate intent to retrieve for
decision-making.
Information consists of data that have been retrieved, processed or otherwise used
for information or interference purpose, argument or as a basis forecasting or
decision-making regarding any business unit. Information is knowledge that one
derives from facts for effective functioning of systems placed in the right context
with the purpose of reducing uncertainty regarding the alternative courses of action
as they are based on description and measurement of attributes of various entities
associated with the enterprise.
3.
SYSTEM:
The system can be described as a set of elements joined together for a common
objective. A subsystem is a part of a larger system with which one is concerned. All
systems for our purpose the organization is the system and the parts (divisions,
departments, functions, unit etc) are the subsystem.
The system concept of MIS is, therefore one of optimizing the output of the
organization by connecting the operating subsystems through the medium of
information exchange.
The Management information system (MIS) is a concept of the last two decade or
two. It has been understood and described in a number of ways. It is also known as
the Information System, the Information and Decision System, the computer based
Decision System.
II.
The 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.
III.
The MIS is defined as a system based on the database of the
organization evolved for the purpose of providing information to the people in the
organization.
IV.
Though there are a number of definitions all of them converge on a single point,
i.e. the MIS is a system that support the decision-making function of the
organization. The difference lies in defining the elements of MIS. However, in
todays world, the MIS is a computerized business processing system generating
information for the people in the organization to meet the information needs for
decision-making to achieve the corporate objective of the organization.
MIS is a computer-based system that provides flexible and speedy access to
accurate data. The organizational information system which in general relates to
the planning, operation and control of an enterprise are the most important among
them. MIS refers primarily to such an organizational system which is generally
large, sophisticated, structured and dynamically evolving and of immense
commercial values. A large number of programmers and system analysts are
employed by many organizations to build a variety of MIS. Thus, the education of
programmers and system analysts as well as general manager, the subject of MIS,
has occupied a key position.
Thus, MIS is a set of computer-based system and procedures implemented to help
managers in their routine job of decision-making and planning, expansion and
development.
The objective of MIS is to provide information for a decision support process of
management. It should help in such a way that the business goals are achieved in
the most efficient manner. Since the decision-making is not restricted to a
particular level, the MIS is expected to support all the levels of the management in
conducting the business operations. Unless the MIS becomes a management aid, it
is not useful to the organization.
Modern management system relies on MIS, the complexity of business
management and competitive nature of business requires handling of business
operations with skill and foresight to advert the crisis. The management process is
executed through a variety of decisions taken at each step of planning, organizing,
staffing, directing, coordinating and controlling. If the management is able to spell
out the decision required to be taken, then the MIS is designed suitably.
The actual MIS process relates to:
A.
Collection
B.
Organization
C.
Distribution
D.
E.
Organization-wide information
ii.
Decision-making process
iii.
iv.
Computer-based system
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. In the body the heart plays
the role of supplying pure blood to all the elements of the body including the brain.
The heart work faster and supplies more blood when needed. It regulates and
controls the incoming impure blood, processed it and sends it to the destination in
the quantity needed. It fulfills the needs of blood supply to human body in normal
course and also in crisis.
The MIS plays exactly the same role in the organization. The system ensures that
an appropriate data is collected from the various sources, processed and send
further to all the needy destinations. The system is expected to fulfill the
information needs of an individual, a group of individuals, the management
functionaries: the managers and top management.
Here are some of the important roles of the MIS:
i.
The MIS satisfies the diverse needs through variety of systems
such as query system, analysis system, modeling system and decision support
system.
ii.
The MIS helps in strategic planning, management control,
operational control and transaction processing. The MIS helps in the clerical
personal in the transaction processing and answers the queries on the data
pertaining to the transaction, the status of a particular record and reference on a
variety of documents.
iii.
The MIS helps the junior management personnel by providing
the operational data for planning, scheduling and control , and helps them further
in decision-making at the operation level to correct an out of control situation.
iv.
The MIS helps the middle management in short term planning,
target setting and controlling the business functions. It is supported by the use of
the management tools of planning and control.
v. The MIS helps the top level management in goal setting, strategic
planning and evolving the business plans and their implementation.
MIS plays a very important role in the organization; it creates an impact on the
organizations functions, performance and productivity.
The impact of MIS on the functions is in its management with a good MIS
supports the management of marketing, finance, production and personnel
becomes more efficient. The tracking and monitoring of the functional targets
becomes easy. The functional managers are informed about the progress,
achievements and shortfalls in the activity and the targets. The manager is kept
alert by providing certain information indicating and probable trends in the various
aspects of business. This helps in forecasting and long-term perspective planning.
The managers attention is bought to a situation which is expected in nature,
inducing him to take an action or a decision in the matter. Disciplined information
reporting system creates structure database and a knowledge base for all the people
in the organization. The information is available in such a form that it can be used
straight away by blending and analysis, saving the managers valuable time.
The MIS creates another impact in the organization which relates to the
understanding of the business itself. The MIS begins with the definition of data,
entity and its attributes. It uses a dictionary of data, entity and attributes,
respectively, designed for information generation in the organization. Since all the
information systems use the dictionary, there is common understanding of terms
and terminology in the organization bringing clarity in the communication and a
similar understanding of an event in the organization.
The MIS calls for a systematization of the business operations for an effective
system design. This leads to streaming of the operations which complicates the
system design. It improves the administration of the business by bringing a
discipline in its operations as everybody is required to follow and use systems and
Steps in Management
Decision
Planning
Staffing
Providing
a
complement.
Directing
Coordinating
Controlling
proper
manpower
The objective of the MIS is to provide information for a decision support in the
process of management. It should help in such a way that the business goals are
achieved in the most efficient manner. Since the decision making is not restricted
to a particular level, the MIS is expected to support all the levels of the
management in conducting the business operations. Unless the MIS becomes a
management aid, it is not useful to the organization.
MIS and organization effectiveness
It goes without saying that all managerial functions are performed through
decision-making; for taking rational decision, timely and reliable information is
essential and is procured through a logical and well structured method of
information collecting, processing and disseminating to decision makers. Such a
The process of management requires a lot of data and information for execution of
the plan. This requirement arises on account of the fact in each step of
management, a variety of decisions are taken to correct the course of development.
The decisions or actions are prompted due to the feedback given by the control
system incorporated in the management system. The control of overall
performance is made possible by way of Budget Summarizes and reports. The
summary showing sales, costs, profit and return on investment throws light on the
direction the organization is moving to. The exception reports identify the
weaknesses tin the system of management.
If effective management system is to be assured, it has to rest on business
information. The management performance improves if the business risk and
uncertainties are handled effectively. If the information provided is adequate, one
can deal with these factors squarely. The information support improves the lack of
knowledge, enriches experience and improves analytical abilities leading to better
business judgment. So, if efficient information support is to be provided, it calls
for a system with the goals of generating management information. A good MIS
must furnish information to the managers to expand their knowledge base. He
must know the adverse trends in business, the shortfalls and failures in the
management process.
System concept
System
A system is an orderly grouping of interdependent components linked together
according to a plan to achieve a specific objective.
Basic Implications
A System must be designed to achieve a predetermined objective.
Interrelationships & Interdependence must exist among the components. The
objectives of the organization as a whole have a higher priority than the objectives
of its subsystems.
Examples of Systems
Transportation System
Telephone System
Accounting System
Production System
Computer System
Business System etc.
Elements/Components Of System
Inputs
Processor (s)
Outputs
Control
Feedback
Environment
Characteristics Of System
Organization
Interaction
Interdependence
Integration
Central Objective
Types Of Systems
Conceptual & Empirical
Natural & Manufactured
Social, People-Machine & Machine
System Approach
Its the approach of building information systems.
The Increased Complexity of Business
The Technological Revolution
Research and Development
Product Changes
Information Explosion
The Increased Complexity of Management
Information Feedback Systems
Decision Making
Management Science
The Electronic Computer
MIS for a digital firm
Rapid advances in Information Systems and Technologies (IS/IT) are touching our
intimate spheres; revolutionizing the way in which we live our lives and the way in
which businesses are conducted. In todays business environment, information
systems have become one of the key success drivers for any digital firm. By the aid
of IS/IT, business managers are in better positions for achieving operational
excellence, innovating and developing novel products and services, making more
the computer itself, which is often referred to as the central processing unit
(CPU), and all of its support equipments. Among the support equipments
are input and output devices, storage devices and communications devices.
2. Software: The term software refers to computer programs and the manuals
looked element of the system are the people, probably the component that
most influence the success or failure of information systems. This includes
"not only the users, but those who operate and service the computers, those
who maintain the data, and those who support the network of computers."
<Kroenke, D. M. (2015). MIS Essentials. Pearson Education>
For example, data about sales transactions can be recorded on source documents
such as paper sales order forms. (A source document is the original formal record
of a transaction). Alternately, salespersons can capture sales data using computer
keyboards or optical scanning devices; they are visually prompted to enter data
correctly by video displays. This provides them with a more convenient and
efficient user interface, that is, methods of end user input and output with a
computer system. Methods such as optical scanning and displays of menus,
prompts, and fill-in-the-blanks formats make it easier for end users to enter data
correctly into an information system.
For example, data received about a purchase can be (1) added to a running total of
sales results, (2) compared to a standard to determine eligibility for a sales
discount, (3) sorted in numerical order based on product identification numbers, (4)
classified into product categories (such as food and nonfood items), (5)
summarized to provide a sales manager with information about various product
categories, and finally, (6) used to update sales records.
For example, a manager may discover that subtotals of sales amounts in a sales
report do not add up to total sales. This might mean that data entry or processing
procedures need to be corrected. Then changes would have to be made to ensure
that all sales transactions would be properly captured and processed by a sales
information system.
INFORMATION SYSTEM RESOURCES
People are required for the operation of all information systems. These people
resources include end users and IS specialists.
End users (also called users or clients) are people who use an information system
or the information it produces. They can be accountants, salespersons, engineers,
clerks, customers, or managers. Most of us are information system end users.
IS Specialists are people who develop and operate information systems. They
include systems analysts, programmers, computer operators, and other managerial
technical, and clerical IS personnel. Briefly, systems analysts design information
systems based on the information requirements of end uses, programmers prepare
computer programs based on the specifications of systems analysts, and computer
operators operate large computer systems.
The concept of Hardware resources includes all physical devices and materials
used in information processing. Specially, it includes not only machines, such as
computers and other equipment, but also all data media, that is, all tangible objects
on which data is recorded, from sheets of paper to magnetic disks. Example of
hardware in computer-based information systems are:
Procedures, which are operating instructions for the people who will use an
information system. Examples are instructions for filling out a paper form or using
a software package.
Data is more than the raw material of information systems. The concept of data
resources has been broadened by managers and information systems professionals.
They realize that data constitutes a valuable organization resource. Thus, you
should view data as data resources that must be managed effectively to benefit all
end users in an organization.
Data can take many forms, including traditional alphanumeric data, composed of
numbers and alphabetical and other characters that describe business transactions
and other events and entities. Text data, consisting of sentences and paragraphs
used in written communications; image data, such as graphic shapes and figures;
and audio data, the human voice and other sounds, are also important forms of
data.
The data resources of information systems are typically organized into:
The word data is the plural of datum, though data commonly represents both
singular and plural forms. Data are raw facts or observations, typically about
physical phenomena or business transactions. For example, a spacecraft launch or
the sale of an automobile would generate a lot of data describing those events.
More specifically, data are objective measurements of the attributes (the
characteristics) of entities (such as people, places, things, and events).
Example
A spacecraft launch generates vast amounts of data. Electronic transmissions of
data (telemetry) form thousands of sensors are converted to numeric and text data
by computers. Voice and image data are also captured through video and radio
monitoring of the launch by mission controllers. Of course, buying a car or an
airline ticket also produces a lot of data. Just think of the hundreds of facts needed
to describe the characteristics of the car you want and its financing, or the details
for even the simplest airline reservation.
Peoples often use the terms data and information interchangeably. However, it is
better to view data as raw material resources that are processed into finished
information products. Then we can define information as data that have been
converted into a meaningful and useful context for specific end users. Thus, data
are usually subjected to a value-added process (we call data processing or