Management Information Systems (MIS)--Introduction

---- Introduction

Prof. Dr. Subhasis Sen, EIILM Kolkata

The information systems generate information useful for managers in planning & control

Managerial Decision-making or action Structured & Unstructured Decisions Strategic, Tactical & Operational Decisions Lost Opportunity & Reaction Time


Growth of Management Theory & Techniques

Growth of Management Accounting & its applications in business

Changes in the Production & Distribution methods & the consequent changes in the organizational structure

Development of Management Science (O.R.)

Introduction of Computer into Business data processing & the developments in IT


An integrated user machine system for providing information to support the operations management analysis & decision-making functions (Gordon B. Davis)

A system that aids management in making, carrying out and controlling decisions (Jerome Kanter)

MIS is defined as to provide information to support management decision-making (James A. O’Brien)

MIS is a strategy which provides the information for making decisions regarding the integration of the organization through the process of management (Robert G. Murdick)

A system which systematically collects information & provide useful information to management for decision-making


Timeliness Accuracy Completeness Cost Reliability Decision Tree & Decision Table


System approach Takes Comprehensive view in the

light of its objective Management oriented

Top down approach followed Derived from the overall business

objectives Need based

Caters to info needs at different levels Exception based

Exception based reporting principle


Futuristic On the basis of projections

Integrated Blends info from several operational

areas Common data flows

Should avoid data duplication and redundancy

Long term basis Strive to be futuristic

Divide and conquer Use partitioning into subsystems

Central database Let subsystems access the master data


Data capturing Processing of data Storage Retrieval Dissemination of MI – finished product

of MIS


Management

Koontz – Art of getting things done through and with the people in formally organized groups


Planning Organizing Staffing Directing Control


Planning Process of foreseeing the future What, when, who, how, where, why Setting goals and objectives Lay down policies, procedures,

budgets, strategies, programmes and schedules, to achieve the plans


Organizing Process of identifying the entire job Dividing the job into convenient

subtasks Allocating subtasks to persons/groups Delegating authority, for effective

operation and achievement of goals


Staffing Right person at the right job Define job requirements – people

perspective Select suitable person/s for the

positions Training and development (?) Organizing vis-à-vis Staffing (?) Job-orientation vs. person-orientation


Directing Issuing commands – classical view Modern philosophy

▪ Communication▪ Motivation▪ Leadership

People have to be guided, motivated and led by the MANAGER


Controlling Controlling and planning – two sides

of the same coin Ensures that activities are performed

as per plans▪ Fixing standards of work measurements▪ Measurement of actual performance▪ Taking corrective measures

Decision-making is the essence of management


Robert Anthony – 3 levels of business activities

Strategic management (Top management) Exploring different markets, formulating

policies, plans and budgets Management control (Middle management)

Facilitator role; scheduling, monitoring Operational control (Operating management)

Process and control the basic products and services

Raw matl procurement, selling of products, physical recording and posting of cheques


Policies, plans, objectives and budgets of Top management

Passed to middle mngt as Revenue, cost, profit goals

Review and agreement Middle mngt issues specific schedules

and operating goals along with yardsticks of measurement

Operating mngt – produce goods and services to meet the revenue and profit goals


Processed data, presented in a form which assists decision-makers

May contain an element of surprise, reduce uncertainty

May provoke a manager to initiate action

Data and Info – relative concepts Recency Producer-consumer relationship

Often used interchangeably


According to J. Kanter (1996) Top Management

Unstructured Non-programmed Futuristic Approximate External


Operating Management: Structured Programmed Historical Exact Internal


MIS about Computer Larger the volume of data, greater is

usefulness to the managers Greater the accuracy, greater its

usefulness


A matrix representation of the logic of a decision

Specifies the possible conditions and the resulting actions

Best used for complicated decision logic


1. Condition stubs Lists condition relevant to decision

2. Action stubs Actions that result from a given set of

conditions3. Rules

Specify which actions are to be followed for a given set of conditions

Indifferent Condition Condition whose value does not affect which

action is taken for two or more rules


Name the condition and values each condition can assume

Name all possible actions that can occur List all rules Define the actions for each rule Simplify the table


Note: for salaried employees the action stub chosen will always be the same…therefore hours worked is an indifferent condition


Because of indifferent condition, the complete decision table can be reduced to one with fewer rules


A graphical representation of a decision situation

Decision situation points are connected together by arcs and terminate in ovals

Main components Decision points represented by nodes Actions represented by ovals Particular choices from a decision point

represented by arcs


Read from left to right Each node corresponds to a numbered

choice on a legend All possible actions are listed on the far

right




Management Information Systems (MIS)--Introduction

Documents

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subhasis sen

eiilm kolkata

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