Concepts Related to MIS

Unit I

MIS-Why??
Information systems & IT have become a vital
component of any successful business.
Every manager is supposed to have knowledge
of information systems and IT.
Information systems is regarded as a major fun
ctional area just like marketing, finance & HR.
Information technology including internet bas
ed systems, play an important role in organizat
ions.

MIS-Why??
Information systems play three vital role
s for a business organization:
Support the business processes & operatio
ns.
Support the decision making by employees
& managers.
Support the strategies of an organization for
competitive advantage.

MIS-What we need to kno

w??
It is important to understand:
The basic concepts of information systems & IT
The planning process of information systems.
The development process of information systems.
Business applications of information systems for:
Operations
Management
Competitive advantage of a business.

The challenges in managing IT & other issues in t

he use of IT.

MIS-What we need to kno

w??
Basic concepts of Information
Systems

Information
Systems

Manageme
nt
Challenges

Developme
nt Process

Basic
Concepts of
IT
Business
Application
s

MIS-Concept
The term MIS is of recent origin.
But MIS was very much in use since the star
t of the first business organization.
Then, it remained very simple and manual.
Today it has a refined nomenclature along
with a well designed computer based struct
ure.
The structure of MIS now follows the syste
ms approach.

MIS-Concept
MIS is an acronym for three words:
Management
Information
Systems

Let us try to understand these terms.

Management
According to Koontz:
Management is the art of getting things
done through and with people in formall
y organized groups.
However a manager does not get things
done through a magic stick!

Management
A manager gets things done by performing different
functions in a systematic way:
Planning
Organizing
Staffing
Directing, and
Controlling

To perform these functions a manager has to take a

variety of decisions.
So decision making is a fundamental requirement f
or each process.

Management
Planning:
Process of foreseeing the future in advance.
Bridges the gap between where we are and where we wa
nt to be.
Managers plan by setting objectives & goals & lay down p
olicies, procedures, rules, budgets & schedules to achiev
e the goals.
It should answer the following questions:
What to do?
When to do?
Who is to do?
How is it to be done?
Where is it to be done?
Why is it to be done?

Tomorrow
(where we want to
be)

Today
(where we
are)

Planning

Management
Organizing:
Process of
Identifying the entire job,
Dividing the job into convenient tasks,
Allocating tasks to persons/ groups of persons, and
Delegating authority to each.

Organizing tasks ensures that the operation is carr

ied our effectively and goals are achieved.
Focuses on the structure of process of allocating j
obs so that common objectives can be achieved.
It is job oriented.

Management
Staffing:
Process of putting the right person at the right jo
b.
Involves activities like:
Defining the requirements with regard to the people f
or the job to be done.
Selecting suitable persons for these positions.
Training & developing them to accomplish their tasks.

Pertains to people in the jobs.

It is worker oriented.

Management
Directing:
Includes:
Communication,
Motivation, and
Leadership

Directing is important because for achievin

g the pre determined goals, people working
in the organization, have to be guided, moti
vated and led by the manager.

Management
Controlling:
Ensures that activities are being performed as
per the plans.
Controlling & planning are two sides of the sa
me coin.
Involves:
Fixing standards for measuring work performance.
Measurement of actual performance.
Comparing actual with standards.
Taking corrective actions.

Management Hierarchy
There are three levels:
Operational Control (operating managemen
t)
Management Control (middle management)
Strategic Planning (top management)

Strategic
Managem
ent
Managem
ent
Control
Operational Control

Information
Information is data that is processed and is prese
nted in a useful form.

Information
Data is a term used for raw facts and fig
ures that are currently not being used in
decision making process.
Data usually takes the form of historical
records.
The relation of data to information is tha
t of raw material to finished product

Information
The three levels of management require different kinds
of information according to the functions they perform.
Unstructured
Nonprogrammed
Futuristic
Approximate
External
Top

Management

Structured
Programmed
Historical
Exact
Internal

Operating
Management

Information
The type of information being utilized b
y each level of management is in accord
ance with the nature of jobs performed
by managers at their respective levels.

Management Information
MIS must provide the Management Information
which is required by the managers in their deci
sion making.
Management information refers to the quality o
f information in terms of:
Timeliness
Accuracy
Completeness
Relevance
Adequacy
Explicitness

X X X X X
X X X X X

X X X X X

Managem
ent
Informatio
n

Informati
on
Relation of Information & Management
Information

System
By definition:
A system is a set of interdependent
elements that are grouped together a
ccording to a plan to achieve a com
mon objective.

System
The set of elements for a system may be
understood as:
Input
Process, and
Output

A system has one or multiple inputs, whi

ch are processed to convert them into o
utput(s)

Elements of a System

Cybernetic System

Feedback/
Control

Cybernetic System
A system becomes cybernetic when feedba
ck and control elements are attached to it.
Such a system is self-regulating and self-mo
nitoring.
A man-made example of such a system is th
e thermostat controlled heating system.
It automatically monitors and regulates itself to
maintain a desired temperature on the basis of f
eedback it gets from the environment.

System
A system cannot exist in vacuum.
It exists and functions in an environme
nt .
However, it is separated from its environ
ment by its boundary .

A System with Boundary & Environm

ent

Environm
ent
Feedback/
Control

System

Boundary