Management Information System(MIS)

Management Information System(MIS) (IEng5171)

 Chapter-One
Introduction to Information management
 Information Management is very critical for effective planning and efficient management of
any organization.
 Information collected, stored and analyzed under the Management Information System
(MIS) can be directly utilized by the management for both day-to-day operations and for
planning.
 Information used by the management obtained from both internal and external sources.
 Internal Information:- operation of the company
 External Information:- Competitors background, consumer behavior, economic and
social factor, government legislation.
 Information is collected in many ways such as through conversations and interpersonal
networking, trade reviews, conferences and meetings, and browsing internet time .
 Information is the date that have meaning within a context, data in r/ship and data after
manipulation.
What is Management Information System(MIS)?
 MIS refers to a computer- based system that provides managers with the tools for
organizing, evaluating and efficiently running their departments. Or
 MIS is a study of people, technology, organizations, and the relationships among them in a
broader sense. Or
 MIS is a planned system of collecting, storing and disseminating data in the form of
information needed to carry out the functions of management.
 MIS is an information system that evaluates, analyzes, and processes an organization's data
to produce meaningful and useful information based on which the management can take
right decisions to ensure future growth of the organization. Or
 MIS is an integrated user-machine system for providing information to support the
operations, management analysis, and decision making functions in an organization.
What is MIS?
 Right information
 To the right person
 At the right place
 At the right time
 In the right form
 At the right cost
 MIS contains three sub-components Management , information and system
A. System :-emphasizing a fair degree of integration and a holistic view.
B. Information:-stressing on processed data in the context in which it is used by the end
users.
C. Management:- focusing on the ultimate use of such information system for managerial
decision making.
What is an Information System?
What is Management?:-
It is an effective utilization of human and material resources to achieve the enterprise
objective.(Like: Man, Material, Machine, Money and Method)
It is a process involving planning, organizing, staffing, directing and controlling
human efforts to achieve stated objectives in an organization.
Information System:-
An information system is a set of interrelated components that collect,
manipulate, store data and disseminate information and provide a feedback
mechanism to monitor performance.
It is also An organized combination of people, hardware, software,
communications networks, and data resources that collects data, transforms
it, and disseminates information.
General Information Systems Diagram

Information System Activities

1. Input of Data Resources
2. Process Data into Information
3. Output of Information
Input of Data Resources
 Data entry
 Editing
 Source documents
Formal record of a transaction
 User interface
How users interact with information system
Optical scanning; menu; stimuli; fill in blanks
Process Data into Information
♣ Compare
♣ Sort
♣ calculate
♣ Classify
♣ Summarize
The quality of the data must be maintained by a continual process of correcting and updating
activities.
Output of Information
 Transmit information to users:- E.g. Display; paper; audio
 Storage of data:-Data are retained in an organized manner
E.g. Fields; records; files; data bases
 Feedback must be monitored and evaluated to determine if the information system is meeting
established performance standards
Information System Opportunities
 Increase worker productivity
 Enhance decision making
 Improve team collaboration
 Create business partnerships and alliances
 Enhance global competitiveness
 Support corporate strategy
 Improve quality of goods and services
 Rapidly changing technology
Elements of MIS
♣ Hardware e.g. Computer Equipment
♣ Software e.g. Computer Programs
♣ Control/procedure
♣ Databases :- An organized collections of facts
♣ People, Telecommunications and Networks

♣ Hardware: -Consists of computer equipment used to perform input, processing, and output activities
♣ Software:-Consists of the computer programs that govern the operation of the computer
♣ Database: -Organized collection of facts and information, typically consisting of two or more related data
files
♣ Telecommunications, networks, and the Internet:-The electronic transmission of signals for
communications.
♣ Networks: -Connect computers and equipment to enable electronic communication
 Internet: -World’s largest computer network, consisting of thousands of interconnected networks, all
freely exchanging information
 Intranet:-Internal network that allows people within an organization to exchange information and work
on projects.
 Extranet:-Network that allows selected outsiders, such as business partners and customers, to access
authorized resources of a company’s intranet.
Cont.….
♣ People:-The most important element in most computer-based information systems
♣ Procedures:-Include strategies, policies, methods, and rules for using the Computer based
information system
Features of Management
 Organized Activities: Management is a process of organized activities where a group of
people are involved in working towards a common objective.
 Relationship among Resources: Organized activities meant to achieve common goals are
brought about to establish certain relationships about the available resources.
 Working with and through People: Management involves working with people and getting
organizational objectives achieved through them. The idea of working through people is
interpreted in terms of assigning and reassigning of activities to subordinates.
 Decision Making: Management process involves decision making at various levels for
getting things done through people. Decision making basically involves selecting the most
appropriate alternative out of the several. If there is only one alternative, there is no question
of decision making.
Nature of Management
1) Multidisciplinary: Management has been developed as a separate discipline, but it draws
knowledge and concepts from various disciplines like psychology, sociology, anthropology,
economics, statistics, operations research etc.,
2) Dynamic nature of Principles: Principle is a fundamental truth which establishes cause and
effect relationships of a function. Based on integration and supported by practical evidences,
management has framed certain principles.
However, these principles are flexible in nature and change with the changes in the
environment in which an organization exists.
3) Relative, not absolute Principles: Management principles are relative, not absolute, and
they should be applied according to the need of the organization. Each organization may
be different from others. The difference may exist because of time, place, socio-cultural
factors, etc.
4) Management Science or Art: There is a argument whether management is science or art.
Nature…Cont’d
 An art is personal skill of business affairs. Art is characterized by practical knowledge,
personal creativity and skill. Management can be considered as an art because it satisfies all
these criterion of an art.
 A science is a systematized body of knowledge of facts. It involves basic principles, which
are capable of universal application. Management can be considered as science because it
satisfies all these criteria of a science.
5) Management as profession: Management has been regarded as a profession. Profession
refers to a vocation or a branch of advanced learning such as engineering or medicine.
6) Universality of Management: Management is a universal phenomenon. However,
management principles are not universally applicable but are to be modified according to the
needs of the situation.
Importance of Management
1. Effective utilization of Resources: The resources are scarce in nature and to meet the
demand of the society.
2. Development of Resources: Resource development are carried on in an organized way and
management is involved in these organized activities.
3. It ensures continuity in the organization: It is quite natural that new people join while
some others retire or leave the organization.
4. Integrating various interest groups: In case of a business organization, there are various
pressure groups such as shareholders, employees, govt. etc. these interest groups have
pressure on an organization. Management has to balance these pressures from various
interest groups.
5. Stability in the society: Management provides stability in the society by changing and
modifying the resources in accordance with the changing environment of the society.
System Concept
 System: A group of components that work together for a specified purpose.
 Components-Products (hardware, software), processes, people, information, techniques,
facilities, services and other support elements
 Together–Integration of many functions
 Purpose–Is achieved by implementing many functions
System can be classified into two main components:
 Open system: A kind of system which has a clear interaction with its environment
 Closed system: A kind of system which does not have interaction with its environment.
This type of system is very rare in a real world situation. Every system is composed of
subsystems.
Basics of Information System Processing

Data storage

INPUT PROCESSING
OUTPUT

Types of Data
 Alphanumeric Data: this represents numbers, letters, and other characters
 Image Data: this represents graphic images, and pictures
 Audio Data: this represents sounds, noise or tones
 Video Data: this represents moving images or pictures.
Tasks in MIS
 Data Capturing: MIS capture data from various internal and external sources of
organization. It may be manual or through computer terminals.
 Processing of Data: The captured data is processed to convert into required information. It
is done by such activities as calculating, sorting, classifying, and summarizing.
 Storage of Information: MIS stores the processed or unprocessed data for future use. If any
information is not immediately required, it is saved as an organization record, for later use.
 Diffusion of Information: Information, which is a finished product of MIS, is disseminated
to the users in the organization. It is periodic or online through computer terminal.
Characteristics of an Effective MIS
 An effective MIS will provide :-
 Timely, Accurate,
 Economical , Flexible
 Provable, Complete
 Secure and relevant information as needed.
Cont.…
 Accurate: Accurate information is error free. In some cases, inaccurate information is
generated because inaccurate data is fed into the transformation process (this is commonly
called garbage in, garbage out [GIGO]).
 Complete: Complete information contains all the important facts.
 Economical: Information should also be relatively economical to produce. Decision makers
must always balance the value of information with the cost of producing it.
 Flexible: Flexible information can be used for a variety of purposes. For example,
information on how much inventory is on hand for a particular part can be used by a sales
representative in closing a sale, by a production manager to determine whether more
inventory is needed, and by a financial executive to determine the total value the company has
invested in inventory.
 Reliable: Reliable information can be depended on many cases, the reliability of the
information depends on the reliability of the data collection method and the source of the
information.
Cont’d
 Simple: Information should also be simple, not overly complex. In fact, too much
information can cause information overload, whereby a decision maker has too much
information and is unable to determine what is really important.
 Timely: Timely information is delivered when it is needed.
 Provable: Information should be provable. This means that you can check it to make sure it
is correct, perhaps by checking many sources for the same information.
 Accessible: Information should be easily accessible by authorized users to be obtained in the
right format and at the right time to meet their needs.
 Secure: Information should be secure from access by unauthorized users.
Types of MIS
 A management information system (MIS):-is a computer-based system that provides the information
necessary to manage an organization effectively.
1. Transaction Processing System :- Transaction-processing systems are designed to handle a large
volume of routine, recurring transactions.
Banks use them to record deposits and payments into accounts. Supermarkets use them to record sales
and track inventory. Managers often use these systems to deal with such tasks as payroll, customer
billing and payments to suppliers.
2. Operation Information System:-It introduced after transaction-processing systems. An operations
information system gathers comprehensive data, organizes it and summarizes it in a form that is useful
for managers. These types of systems access data from a transaction-processing system and organize it
into a usable form. Managers use operations information systems to obtain sales, inventory, accounting
and other performance-related information.
3. Decision Support System :- A DSS provides managers with the necessary information to make
informed decisions. A DSS has three fundamental components:
 Database management system (DBMS): which stores large amounts of data relevant to
problems the DSS has been designed to tackle;
 Model-based management system (MBMS): which transforms data from the DBMS into
information that is useful in decision-making;
 Dialog generation and management system (DGMS): which provides a user-friendly interface
between the system and the managers who do not have extensive computer training.
Benefits of MIS
 It improves personal efficiency.
 It expedites problem solving(speed up the progress of problems solving in an organization).
 It facilitates interpersonal communication
 It promotes learning or training.
 It increases organizational control.
 It generates new evidence in support of a decision.
 It creates a competitive advantage over competition.
 It encourages exploration and discovery on the part of the decision maker.
 It reveals new approaches to thinking about the problem space.
 It helps automate the Managerial processes.
Essential Requirement of an Effective MIS
A. Qualified System and Management Staff:- The prerequisite of an effective MIS is that it should be
managed by qualified officers. These officers should have a mutual understanding about the roles and
responsibilities of each other. Each organization should have two categories of officers:
B. System and Computer Experts:- who should also understand quite-clearly the concepts and
operations of a computer.
C. Management Experts:- who in addition to their expertise in their subject area, they should also be
capable of understanding management concepts to facilitate the understanding of problems asked by
concern. They should also be clear about the process of decision making and information requirements
for planning.
D. Futuristic Perspective:- An effective MIS should be capable of meeting the future requirements of
its executives as well. This capability can be achieved by regular monitoring and updating the MIS.
E. Support of Top Management:- For a management information system to be effective, it must
receive the full support of top management.
Level of Management Decision-Making
Management information systems must be designed to support managers in as many of these
functions as possible.
Information systems can support a variety of management decision-making levels and decisions.
The three levels of management activity include :
 Strategic management
 Tactical management
 Operational management.
Strategic management
It is typical for a board of directors and an executive committee of the top executives to develop
the overall organization goals, strategies, policies and objectives as part of a strategic planning
process. They also monitor the strategic performance of the organization and its overall direction
in the political, economic and competitive business environment.
Level…Cont’d
Tactical management
Increasingly, business professionals in self-directed teams as well as business unit managers
develop short- and medium-range plans, schedules and budgets and specify the policies,
procedures and business objectives for their subunits of the company. They also allocate
resources and monitor the performance of their organizational sub-units, including
departments, divisions, process teams and other workgroups.
Operational management
The members of self-directed teams or operating managers develop short range plans such as
weekly production schedules. They direct the use of resources and the performance of tasks
according to procedures, and within budgets and schedules they establish for the teams and
other workgroups of the organization.
Levels of Management Activity
File and Database Management
♣ Database:- is the highest level in data operation and a collection of related data.
♣ Mini-world: Some part of the real world about which data is stored in a database.
For example, consider student names, student grades and transcripts at a university.
♣ It is an organized collection of facts and it is a collection of information arranged and
presented to serve an assigned purpose.
♣ Hierarchy:- it is a set of integrated files for real time processing
An example of database is a dictionary, where words are arranged alphabetically. Another
example is a telephone directory, where subscriber names are listed in an alphabetic order.
♣ Data:- are critical organizational resource that needs to be managed like other important
business assets.
Data vs. Information
Data:
Raw facts; e.g. building blocks of information
Unprocessed information
Information:
Data processed to reveal/ make known meaning
2.3. Introducing the Database and the DBMS
Database—shared, integrated computer structure that stores:
End user data (raw facts)
Metadata (data about data)
DBMS (database management system):
Collection of programs that manages database structure and controls access to data
Possible to share data among multiple applications or users
Makes data management more efficient and effective
Role and Advantages of the DBMS (continued)
End users have better access to more and better-managed data
♠ Promotes integrated view of organization’s operations
♠ Probability of data inconsistency is greatly reduced
♠ Possible to produce quick answers to queries
Example of a Database (Conceptual Data Model)
Mini-world for the example: Part of a University environment.
Some mini-world entities (Data elements):
Students
Courses
Sections
Departments
Instructors
Some mini-world relationships:
Sections with specific Courses
Students take Sections
Courses have prerequisite Courses
Instructors teach Sections
Courses are offered by Departments
Students major in Departments
An example of a database that stores student records and their grades
Internal storage format for a Student Record

Parts of Database
Field: the smallest piece of meaningful information in a file is called a data
item or field. A data item is generally used a group alphanumerical
characteristic and a group of words or a complete number.
Examples: name, city, state, etc.
Record: the collection of related fields is called a record. For example the
combination of the three fields: name, city, state
File: a file is a collection of all related records and the database becomes the
collection of related files.
 Database is a group of related files.
 Cont.…….

Three-Tier Client-Server Architecture

where LAN local area network
WAN wide area network
DBMS (database management system):
Collection of programs that manages database structure and controls access to data.
Possible to share data among multiple applications or users
Makes data management more efficient and effective
An example of a user-defined operation could be COMPUTE GPA, which can be applied to a
STUDENT object. On the other hand, generic operations to insert, delete, modify, or retrieve
any kind of object are often included in the basic data model operations
 Cont.…..
Conceptual data models use concepts such as entities, attributes, and relationships.

1.An entity:- represents a real-world object or concept, such as an employee or a project that is
described in the database.

2.An attribute:- represents some property of interest that further describes an entity, such as the
employee’s name,age,sex or salary. Which shows characteristic of an entity

3.A relationship :-among two or more entities represents an interaction among the entities ; for
example, an employee works on many projects. A relationship exists between the employee and
each project. It describes an association among entities

4. Constraint :-restrictions placed on the data

1.ENTITIES (persons, places, things etc.) which the organization has to deal with. Relations
can also describe relationships
The name given to an entity should always be a singular noun descriptive of each item to be
stored in it. E.g.: student NOT students.
Types of Entity
Strong Entity: An entity whose existence does not depend on the existence of another entity.
An entity that can have a primary key
E.G. student or employee ID number.
Weak Entity: Is an entity that can’t exist in the database unless instances of one or more other
entities exist in the database. Entity types that do not have key attributes of their own.
E.G. Prescription, Children Of Employee
Entity Relationships
A. ONE-TO-ONE:-each row in one database table is linked to 1 and only 1 other row in
another table. E.g. of a 1:1 binary relationship is Employee Manages Department. This means
any point in time an employee can manage only one department and a department has only
one manager.
 Cont.….
B. ONE-TO-MANY:-one tuple can be associated with many other tuples, but not the reverse.
E.g. DEPARTMENT-EMPLOYEE : as one department can have multiple employees, in the
WORKS_FOR binary relationship type, the cardinality ratio is 1: N, meaning that each
department can be related to any number of employees, but an employee can work for only
one department.
C. MANY-TO-MANY:-one tuple is associated with many other tuples and from the other side,
with a different role name one tuple will be associated with many tuples
E.g. STUDENT – COURSE as a student can take many courses and a single course can be
attended by many students.
The main components of Entity Relationship Modeling are:
Entities, Attribute and Relationship
Steps to draw Entity Relationship-diagram
1. Identify Entities
Classify them as strong or weak
• Diagramming entities
2. Identify the attributes for identified Entities
Decide types of attributes
• Diagramming attributes
3. Establish relationships between Entity(s)
 Identify the relationship type based on degree
 Identify the relationship type based on cardinality ratio
 Identify the relationship type based on participation constraint
• Diagramming relationships
4. Draw final ER-Diagram
Entity…Cont’d
Diagramming Entity
In an E/R Diagram, an entity is usually drawn as a box with rounded corners.
The box is labelled with the name of the class of objects represented by that entity.

Diagramming Attributes
In an E/R Diagram attributes may be drawn as ovals
Each attribute is linked to its entity by a line
The name of the attribute is written in the oval
Diagramming Relationship
Relationships are links between two entities
The name is given in a diamond box
The ends of the link show cardinality
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Development of Database System Using Structured Query Language (SQL) Server
What is SQL?
SQL stands for Structured Query Language
SQL lets you access and manipulate databases
What Can SQL do?
It can execute queries against a database
It can retrieve data from a database
It can insert records in a database
It can update records in a database
It can delete records from a database
It can create new databases
It can create new tables in a database
It can create stored procedures in a database
It can create views in a database
It can set permissions on tables, procedures, and views
SQL can be divided into two parts:
Data Manipulation Language (DML) and Data Definition Language (DDL).
The query and update commands form the DML part of SQL:
♣ SELECT - extracts data from a database
♣ UPDATE - updates data in a database
♣ DELETE - deletes data from a database
♣ INSERT INTO - inserts new data into a database
The DDL part of SQL permits database tables to be created or deleted. It also defines indexes (keys),
specifies links between tables, and imposes constraints between tables. The most important DDL
statements in SQL are:
♠ CREATE DATABASE - creates a new database
♠ ALTER DATABASE - modifies a database
♠ CREATE TABLE - creates a new table
♠ ALTER TABLE - modifies a table
♠ DROP TABLE - deletes a table
♠ CREATE INDEX - creates an index (search key)
♠ DROP INDEX - deletes an index
Creating databases
Syntax
CREATE DATABASE Database_Name
Creating Tables – Basic SQL Syntax
Tables are the main unit of storage in a relational database. In relational database terminology,
a table is also known as a relation. In SQL, a table is created using the DDL statement
CREATE TABLE. This statement is supported by SQL Server and other RDBMS packages,
with each including its own variations.
Constraints:- When a table is created, there are a number of types of constraint that can be applied
to the table.
The types of constraint that can be defined in SQL Server are described below.
♣ Check:-helps to control the values being inserted into a table column.
♣ Not-Null:-helps to ensure that the column value in every rows never blank or empty or null.
♣ Unique:- helps to ensure that the column value in every row is unique.
♣ Primary key:- helps to ensure that the column value in every row is unique and has no Null
values.
♣ Foreign key:- helps to form parent child r/ship b/n tables. Child table references column values
from parent table.