Module I

INTRODUCTION TO MANAGEMENT
INFORMATION SYSTEM (MIS)
Contents
Introduction
Difference between Information Technology &
Information System
Components of Information System
Definition of MIS
Categorization of Organizational IS
Robert Anthony’s Management Hierarchy
Simon’s Categorization of Decisions
Gorry and Scott-Morton Framework of MIS
Introduction
Management information system is an acronym of
three words, viz.,
Management

Informatio
System
n
Management
Management is the art of getting things done
through and with the people in formally organised
groups.
Managerial function:
Planning
Organising
Staffing
Directing and
Controlling
Information
Information is data that is processed and is presented
in a form which assists decision making.
Clusters of facts meaningful and useful to human
beings in processes such as making decisions.
It may contain an element of surprise, reduce
uncertainty or provoke a manager to initiate an action.

Proces Inform
Data sing ation
System
A system may be defined as a set of elements which
are joined together to achieve a common objective.
The elements are interrelated and interdependent.

Inp Pro Out

ut cess put
Data
Data are streams of raw facts representing events
such as business transactions – meaningless without
structure.
It usually take the form of historical records.
In contrast to information, raw data may not be able to
surprise us, may not be organised and may not add
anything to our knowledge.
IT and IS
What is Information Technology?
Any form of technology used by people to handle
information.
The foundation upon which IS are built.
What are Information Systems?
An information system is designed to collect, process, store
and distribute information
Integrated components processing, storing and
disseminating information in an organisation.
Interdisciplinary study of systems that provide information
to users in organisations.
Experiences of IT and IS
Examples of IT
Hardware (PC, UNIX server)
Software (e-mail, Internet, Windows, Word)
Consumer devices (mobiles)
Examples of IS
File systems, databases, e-mail servers / clients
e-commerce
SAP, student records.
Components of Information System
An information system is defined as a socio-technical
system comprised of two sub-systems:
a technical sub-system and
a social sub-system.
The technical sub-system encompasses the technology
and process components
The social sub-system encompasses the people and
structure components.
IS: The Socio – technical System
Information Technology
Information technology includes hardware, software and
telecommunication equipment that is used to capture, process,
store and distribute information.
These three elements – hardware, software, and
telecommunication systems – comprise the IT component of
an information system. 
Hardware is the physical equipment used to process information.
– a personal computer
Software is the set of coded instructions (programs) that direct
the hardware to perform the required tasks. – Google Docs
Telecommunication systems are the networking equipment
enabling users and devices to communicate. – telephone network
Process
A process is the set of steps employed to carry out a
specific business or organizational activity.
In other words, a process maps the set of actions that
an individual, a group or an organization must enact in
order to complete an activity.
The design of the process must fit with the other
components of the information system and be
adjusted when changes occur.
People
The people component of an information system encompasses
all those individuals who are directly involved with the system.
These people include the managers who define the goals of the
system, and the users.
Individuals involved in the information system come to it with
a set of skills, attitudes, interests, biases and personal traits
that need to be taken into account when the organization
designs the information system.
Very often, an information system fails because the users do
not have enough skills, or have a negative attitude toward the
system.
Therefore, there should be enough training and time for users
to get used to the new system.
Structure
The structure (or organizational structure) component of
information systems refers to the relationship among the
individuals in the people component.
It encompasses hierarchical and reporting structures, and
reward systems.
The structure component plays a critical role in an
information system, simply because systems often fail when
they are resisted by their intended users
When designing a new information system the organization
needs to be cognizant of the current and future reward
system in order to create incentives to secure its success.
Definition of MIS
Management information system is a system
consisting of people, machines, procedures,
databases and data models, as its elements.
The system gathers data from the internal
and external sources of an organisation.
MIS
MIS deals with behavioral issues as well as
technical issues surrounding the
development, use, and impact of
information systems used by managers and
employees in the firm.
Categorization of Organizational IS
Hierarchical Perspective
Process Perspective
Functional Perspective
Hierarchical Perspective
Organizations have a structure that is composed of different levels and
specialties.
Their structures reveal a clear – cut division of labour.
Authority and responsibility in a business firm is organized as a hierarchy.
Senior Management makes long – range strategic decisions about
products and services as well as ensures financial performance of the
firm.
Middle Management carries out the programs and plans of senior
management.
Operational Management is responsible for monitoring the daily
activities of the business.
Levels in Firm
Senior
Management

Middle Management
Scientists & Knowledge
workers

Operational Management
Production and service
workers
Data workers
Process Perspective
An organization coordinates work through its
hierarchy and through its business processes,
Business processes are logically related tasks and
behaviours for accomplishing work.
It includes formal rules that have been developed over
a long time for accomplishing tasks.
These rules guide employees in variety of procedures.
Information systems automate many business
processes.
Functional Perspective
Experts are employed and trained for different
business functions.
The major business functions or specialized tasks
performed by business organizations consists of:
Sales & Marketing
Manufacturing & production
Finance & accounting
Human resources
Functions
Sales & ●
Selling the organization’s products and
Marketing service

Manufacturing & ●
Producing & delivering products and
Production services

Finance and Managing the organization’s financial assets and

●

Accounting maintaining the organization’s financial records.

Human Attracting, developing, and maintaining the organization’s

●

labour force; maintaining employee records.

Resources