MANAGEMENT INFORMATIONS SYSTEM

MIS refers broadly to a computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In order to provide past, present and prediction information, an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently. Within companies and large organizations, the department responsible for computer systems is sometimes called the MIS department. Other names for MIS include IS (Information Services) and IT (Information Technology).Management Information System (M.I.S.) is basically concerned with processing data into information. Which is then communicated to the various Departments in an organization for appropriate decision-making? Data collection involves the use of Information Technology (IT) comprising: computers and telecommunications networks (E-Mail, Voice Mail, Internet, telephone, etc.)Computers are important for more quantitative, than qualitative, data collection, storage and retrieval; Special features are speed and accuracy, and storage of large amount of data.

Management information system can be understood well by the following:DAT INFORMATION COMMUNICATI ON DECISIO NS

The overall purpose of MIS is to provide profitability and related information to help managers and staff understand business performance and plan its future direction.

IMPORTANCE OF MIS:
1. MIS is always management oriented and keeps in view every level of management and gets the desired information. 2. Integrated - refers to how diff components(sub systems) are actually tied up together. eg: diff departments of organization linked together. 3. Useful for planning - as every organization makes log-term and short-term plans with the help of information like sales & production, capital investments, stocks etc management can easily plan.. 4. Effective MIS helps the management to know deviations of actual performance from preset targets and control things. 5. its important for increasing efficiency. 6.MIS provides updated results of various departments to management. 7.MIS is highly computerized so it provides accurate results. 8.MIS adds to the intelligence, alertness, awareness of managers by providing them information in the form of progress and review reports of an ongoing activity. 9.Helps managers in decision- making. level of management :- it refer to a line of demacation between various managarial positions in organisation.the levels of management depend upon its size,technical facilities,and the range of production,we generally come across two broad levels of management , 1.administrative management,

2. operating concerned with "thinking" functions such as laying down planning and setting up of standards, operative management is concerned with the doing functions such as implementations of policies, and directing the operations to attain the objectives of the enterprises. the real significance of levels is that they explain authority relationships in an organisation,its chairman,manager,managing director,or the chief execuitve,or the gernal manager or executive commetee having key officers. 1=top managment=of a comapny consists of owers/shareholders,board of directors,its chairman,managing director,or the chief executive,or the gernal managers comitee having key offiers, 2, middle management=of a comapny consists of heads of functions departments viz purchase manager , production manager, marketing managers, financial controller, and divisional sectioanl officers working under these funtional heads, 3 ,lower level of operating manger=of a comapny consists of superintendents,forman, supervisor,etc, although the above classification of the different levels of management is not rigid,the hierachy of authority and responsibilty designed to secure a systematic sequence of operations can be well illustrated in the form chart.

Human Resource Information System(HRIS)

The crux in the success of HR in the coming years is very much dependent on the usage of MIS in HR. As MIS is mostly used in the knowing/arriving at a conclusion in operational matters and forms the spinal cord of the core business. Non usability of HR MIS is the sole reason which hinders HRs role into the operational part of the business. There are many gaps which HR could fill and get absorbed in the mainstream of operational activity.MIS primarily involves figures for interpretation for various activity and in different situations. The following HR figures can get reflected in the MIS report of any business and which is directly linked with productivity. 1. Average output per employee 2. Top performer output 3. Top performer increase factor 4. Revenue per employee 5. Turnover rates 6. Cost per hire 7. Training ( as days per student) 8. Employee-relation grievances 9. Number of suggestions 10.Number of internal transfers and promotions 11.Benefit cost ,year-over-year 12.The annual review statistics 13.Internal pay versus marketing pricing 14. Compensation Ratio = Internal job value versus individual pay

Management Information System in Finance

Management Information Systems (MIS) in Finance have been widely adopted both by corporations as well as governments. They are information systems with capacity to maintain large data bases enabling organizations to store, organize and access financial information easily. These systems are primarily used for accounting operations and generation of financial reports.. Increasingly they are also used to support budgetary, planning and decision making processes.These systems are credited with increasing financial transparency, efficiency and accountability. .

General Ledger
The main use of a management information System (MIS) in finance is that it automatically updates all the transactions in the General Ledger. The General Ledger is the core component of all financial information systems. Financial transactions are simultaneously posted on the various accounts that comprise the organization's "Chart of Accounts". Simultaneous updating of accounts such as sales, inventory and accounts receivable, reduces errors. It also provides an accurate and permanent record of all historical transactions.

Cash Management
Cash flow management is an important use of MIS in Finance. Cash Management refers to the control, monitoring and forecasting of cash for financing needs. Use of MIS in Finance helps companies track the flow of cash through accounts receivable and accounts payable accurately. Accurate records also help in monitoring cost of goods sold. This can help pin point areas that eat up cash flow such as inventory costs, high raw material costs or unreliable sales.

Budget Planning
Financial budget planning uses proforma or projected financial statements that serve as as formal documents of management's expectations regarding sales, expenses and other financial transactions. Thus financial budgets are tools used both for planning as well as control. MIS in finance helps organizations evaluate "what if" scenarios. By modifying the financial ratios, management can foresee the effects of various scenarios on the financial statements. MIS thus serves as a decision making tool, helping in choosing appropriate financial goals.

Financial Reporting
The use of MIS systems in Finance enables companies to generate multiple financial reports accurately and consistently. Generation of financial statements both for internal reports as well as for shareholder information takes less effort because of the automatic updating of the General Ledger. Compliance with Government regulations as well as auditing requirements is also easier because the records are accurate and provide a permanent historical map of transactions that can be verified.

Financial Modeling
A financial model is a system that incorporates mathematics, logic and data in the form of a large database. The model is used to manipulate the financial variables that affect earnings thus enabling planners to view the implications of their planning decisions. MIS in Finance enables organizations to store a large amount of data. This helps managers develop accurate models of the external environment and thus incorporate realistic "what if" scenarios into their long-range planning goals.

MANAGEMENT INFORMATION SYSTEM IN RETAIL

Retail management information systems can be customized for each industry, including, for example, fashion, department store, supermarket, furniture or prescription drugs. Some systems support multiple languages, currencies, tax systems and cost structures. In addition, some retail management information systems can support different business models such as franchise, consignment, direct sales or online. Integration between payments, inventory and transactions improves operations and reduces costs by preventing duplicate entries. By tracking inventory effectively you can more quickly respond to customer requests. By being able to respond expediently you can also improve service, expand your customer base and increase profits. Accessing data easily allows you to identify opportunities to improve waste reduction, recycling materials and choosing environmentally friendly packaging. These strategies enable a profitable business.

MANAGEMENT INFORMATION SYSTEM IN MARKETING

"A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control". Figure 9.1 illustrates the major components of an MIS, the environmental factors monitored by the system and the types of marketing decision which the MIS seeks to underpin. Figure 9.1 The marketing information systems and its subsystems

Information systems have to be designed to meet the way in which managers tend to work. Research suggests that a manager continually addresses a large variety of tasks and is able to spend relatively brief periods on each of these. Given the nature of the work, managers tend to rely upon information that is timely and verbal (because this can be assimilated quickly), even if this is likely to be less accurate then more formal and complex information systems. Managers play at least three separate roles: interpersonal, informational and decisional. MIS, in electronic form or otherwise, can support these roles in varying degrees. MIS has less to contribute in the case of a manager's informational role than for the other two. Three levels of decision making can be distinguished from one another: strategic, control (or tactical) and operational. Again, MIS has to support each level. Strategic decisions are characteristically one-off situations. Strategic decisions have implications for changing the structure of an organisation and therefore the MIS must provide information which is precise and accurate. Control decisions deal with broad policy issues and operational decisions concern the management of the organisation's marketing mix. A marketing information system has four components: the internal reporting system, the marketing research systems, the marketing intelligence system and marketing models. Internal reports include orders received, inventory records and sales invoices. Marketing research takes the form of purposeful studies either ad hoc or continuous. By contrast, marketing intelligence is less specific in its purposes, is chiefly carried out in an informal manner and by managers themselves rather than by professional marketing researchers.

Management In Information System In Banking Sector

1. All transactions captured at the branch level would get consolidated at a central location. Such a central location could be called the Data Warehouse of the concerned bank 2. For banks with large number of branches, it may not be desirable to consolidate the transaction details at one place only. It can be decentralised by locating the services on regional basis.

3. By way of data mining techniques, data available at various computer systems can be accessed and by a combination of techniques like classification, clustering, segmentation, association rules, sequencing, decision tree (described in detail at Annexure-15), various ALM reports such as Statement of Structural Liquidity, Statement of Interest Rate Sensitivity etc. or accounting reports like Balance Sheet and Profit & Loss Account can be generated instantaneously for any desired period/date.
JEEWIKA PAREEK MIS0410 SECTION B