Mis ch04

INFORMATION CONCEPTS

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Data

A stream of raw facts about anything

Examples:. Record of all the players in one day

cricket matches. Detailed Marks of all students in a

class. Business data as obtained from

various business houses.

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Information

processed data, which is useful to the recipient.

Examples: Profit of the company in the current

year The highest ever score in one day

cricket First ten toppers in a class The top 50 business houses of India.

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Then Information is……WHICHTells something the receiver did not knowReduces uncertaintyHas a surprise valueHas a real / perceived value in current /

prospective decision.

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INFORMATION CONCEPT:- Information differs from data. Information has a value in decision making – while data does not have. Information Characteristics:-• Improves representation of an entity.• Updates knowledge level (Ex: Sales Data)• Reduces uncertainty• Aids in decision making. Ex: Sales Data progressively become information when processed with other data such as target.

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Conceptual model of communication:-

SourceTransmitter

EncoderChannel

ReceiverDe-coder

Destination

(Data / Information)

(MIS) (Reports) (Interprete) (MGMT.)

Noise Distortion

Poor Quality of Creates Information Confusion(ABOVE MODEL OF COMMUNICATION

USED IN MIS)

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Information Presentation:- Improve communication through summarization.

Improve by message routing copies of circular.

Curb misuse of information by exercising control on the content & distribution.

Information BIAS: Should not be biased while classifying & filtering / Communicating information.

BIAS enters because people try to block sensitive information.

To overcome this, a formal organization structure & top management decides information type / received.

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Way information is presented, may create BIAS. Ex: If information is presented in alphabetic order & it is lengthy.

INFORMATION : A QUALITY PRODUCT

Information is a product of data processing. Quality of information can be measured on four dimensions: (1) Utility (2) Satisfaction (3) BIAS (4) Error.1. UTILITY: Has four facets : (1) Form (2) Time (3) Access (4) Possession.2. SATISFACTION OF USER: Is a common key of measuring utility.3. ERROR: Error creeps in due to

Incorrect data & collection method.

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Incorrect data processing. Loss or Incomplete data. Poor data validation or control. Deliberate falsification.

Processing or data to information should be allowed only

after thorough validation.4. BIAS: If the information is processed out of

biased data, it will have BIAS.

Information Quality Refers to the fitness for use, or its reliability. Some of the

attributes, which influence the quality of information, are: Timeliness Accuracy Relevance Adequacy Completeness Explicitness Exception-based, etc Impartiality - no bias Validity Reliability Consistency Age-old data is of no use

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3. Reliability4. Consistency : Data should have consistent 5. Age : If the information is old, it is not useful today.

CLASSIFICATION OF INFORMATION:1. Action vs. No. of action information:- Ex: “No stock” report calls for purchase action.2. Recurring vs. non Recurring information:-

Ex: Monthly sales report vs. market study information.

3. Internal vs. External information:-Ex:-Information generated through internal resources vs. information generated through govt. report.

4. Planning information:Ex: Needs norms/ standards / specs.

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5. Control Information:-Ex:Reports giving status of activity with feed back mechanism.

6. Knowledge information:-Ex: Collection of information through library reports / research studies to build up a knowledge base for decision making.

Information can also be classifiedBASED ON USAGE:- Organization information:- Used by all in

organization. Database information :- When multiple use &

apply. Operational / Functional information:- When the

information is used for operations.

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Top Management

Middle Management

Operational Management

LOW

STRUCTURED INFORMATION

HIGH

EXTERNAL

SOURCE OF INFO

INTERNAL

Types of InformationStrategic Information

required by the managers at Strategic level managers

Tactical Informationrequired by the managers at

Management control level managersOperational Information

required by the managers at Operational control level managers

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Dimension of InformationEconomic dimension

Cost of information Value of information

Business dimensionTechnical dimension

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METHODS OF DATA & INFORMATION COLLECTION:-

Choice of methods have an impact on quality of information. Methods of data collection & processing is part of MIS. Methods of Data & Information Collection

• Observation: = This methods are chosen for data & information collection & specific problem. = Remaining are routine methods particularly irrespective of a problem. Ex:Visit customer to assess complaint.

• Experiment: Ex:Assess market response to new packaging. (Thru test marketing)

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• Survey: Ex: Market survey, opinion poll.• Subjective Estimation:Ex: Data pertaining to

future like life style in 21st Century/ Future of alternative energy source.

• Transaction Processing: Ex:Ledgers, Payroll, sales report etc.

• Purchased from outside: Ex:Database on specific subject, research study etc.

• Publication: Ex: Corporate publication, industry publication, NCAER report.

• Government Agencies: Ex: RBI, tax publications etc.

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Human Being as Information Processor :

An experienced Manager is a skillful information processor & able to decide. While processing, manager also uses knowledge from his memory. Filtering is a process whereby manager selectively accepts input.

BRAIN Use of Stored

Knowledge & Experience

INPUT FROM

EYES, EARS

FILTERING &

BLOCKING

MENTAL PROCESSING

APPLICATIONSELECTION

MANI PULATION

OUT PUTDECISION

ACTIONREGISTRATION

GENERALISED MODEL OF INFORMATION PROCESSOR

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Filtering process blocks the unwanted or inconsistent Data which does not match the requirement.

An inexperienced Manager may Omit Data, Distort Data.

The information processor establishes filter based on experience.

MIS & THE INFORMATION CONCEPT:

Goal of MIS : should be a provide information which has a surprise value & reduces uncertainty. Build knowledge base in the organisation by processing various Data from different source. Design of MIS should take care of DATA PROB Knowing that it may contain BIAS & ERROR., with help of validation, checking, controlling procedure in the manual & computerised system.

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While designing MIS, due regard should be given to the Communication Theory of transmission. Special care is needed to handle noise & distortion Principles of summarisation & classification should be carefully applied giving regard to management levels. Care should be taken in the process that no information is suppressed or over emphasised. MIS should provide specific attention to quality parameters. MIS should make a distinction between different kind of information. (Action vs No-Action etc.) MIS needs to give due regard to the information used for planning, controlling etc. MIS should recognize some aspects of Human Capabilities since decision makers are human.

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MIS design should meet the needs of the total organisation - For design consideration, it is divided into top, middle, supervisory & operational.

MIS design should ensure input data quality by controlling data for validation, reliability, consistency etc.

Recognizing information may be misused, if falls in wrong hands, MIS design should have feature of filtering, blocking, suppression, delayed delivered etc.

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Adhoc, Unformatted, Regular But

Modified Frequent, Display &

Print

Top Chief Executive & Board

Goal Setting Policy Making Strategic

Planning Accurate Futuristic

Very High, Meeting High Risk &

Uncertainty Situation Un-structured

Middle Division,

Department , Product

Managers

Decision Making Problems Solving

Monitoring & Achieving Business

Planning & Schedule

Exception, Precise,

Analytical Decision Oriented, Related to

Past, Current Future

High, Meeting Risky Situation

Supervisory Jr. Managers,

Supervisors, Officers

Problem Solving & Meeting Targets

Processed & Summarized and Classified for the Current Period

Low, Meeting

Near Certainty Situation

Given at Fixed Interval Display

& Print

Operational Assistants, Clerks

To Know the

Status Facts Detailed Relating

To Current Period

Lowest

Large Volume Print

Levels of Management Nature of Information Reporting Media and Structure

Organisational Pyramid Information Concept

Use of MIS Value of Information