Chapter - 1 Elec

•1.1.
Understanding the keywords

• Management, Information, and System
•What is Management?
• Planning, control, and administration of an
1. organization.
• Management is generally hierarchical:
MEANI • Top managers handle planning;

• Mid – career manager's control;
• And junior managers administer.
NG OF •What is Information?
• Processed data to support management functions
MIS • Processing – record, summarize, store, and
retrieve.
• Present in the required reporting format.
A. Management: What is management?
1. Planning
Goal setting, Environmental scanning ,Forecasting and

Data collection.
2. Organizing
Staffing , Coordinating, Delegating, Understanding and Procedures/

Policies
 3. Leading
Definitions Authority, Motivating, Directing: Delegation of
of Management In responsibilities activating , Supervising, Negotiation and Persuading
formation Systems 4.Controlling:
(MIS) Resources- Money (capital), manpower (people),
materials, machines, movement (Distribution, flow), and Information,
Measuring, Evaluating , – Reporting, Corrective action and feed back
5. Communicating:
Goals/Objectives, standards of desirability, Informing,

Persuading (Influence), Negotiation, Corrective action, Listening
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•What is a System? (in the context of MIS)
• An inputs – processing - output and feedback matrix.
• Supports the processing of data into information.
•1.2. Objectives of MIS
• MIS processes data to support the management
functions.
1. • MIS manages information system (IS) productively:
• Competitive advantage created from using information
Meaning maximally:
• Capturing Data – collects the relevant data.
of MIS .. • Processing Data – transforms data into information.

• Information Storage – store the information
1
securely.
• Information Retrieval – easy retrieval by authorized
users.
• Information Propagation – nonstop access and
updating.
•
What does
Management
Information
System
(MIS) mean?
Management information system,
or MIS, broadly refers to a
computer based system that
provides managers with the tools
to organize, evaluate and
efficiently manage departments
within an organization
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• The three parts of the
information
systems triangle must
interact in concert to
realize business
objectives.
• The job of the IS
professional is to
ensure that a balance is
maintained and
enhanced for the
good of all the actors
and the business as a
whole.

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System & Information System
INFORMATION SYSTEM
SYSTEM
A system is an orderly grouping of IS is an organized combination of

interpedently components linked people, hardware, software,
together according to a plan to communication networks and data
achieve a specific objective. resources that collects, transforms
and disseminates in an
Human body is a system organization.
composed of various parts, which
are working together towards a
common objective, that is to live.

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Definition
Management Information System 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.
Objectives of MIS
The goals of an MIS are to implement the organizational

structure and dynamics of the enterprise for the purpose of
managing the organization in a better way and capturing the
potential of the information system for competitive advantage.

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Following are the basic objectives of an MIS:
 Capturing Data: Capturing contextual data, or operational information

that will contribute in decision making from various internal and external
sources of organization.
 Processing Data: The captured data is processed into information
needed for planning, organizing, coordinating, directing and controlling
functionalities at strategic, tactical and operational level.
Processing data means:
• making calculations with the data
• sorting data o classifying data and
• summarizing data
 Information Storage: Information or processed data need to be stored
for future use.
 Information Retrieval: The system should be able to retrieve this
information from the storage as and when required by various users.
 Information Propagation: Information or the finished product of the
MIS should be circulated to its users periodically using the organizational
network.
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Characteristics of MIS
Following are the characteristics of an MIS:
oIt should be based on a long-term planning.
oIt should provide a holistic view of the dynamics and the structure
of the organization.
oIt should work as a complete and comprehensive system covering all
interconnecting sub-systems within the organization.
oIt should be planned in a top-down way, as the decision makers or
the management should actively take part and provide clear
direction at the development stage of the MIS.
oIt should be based on need of strategic, operational and tactical
information of managers of an organization.
oIt should also take care of exceptional situations by reporting such
situations.

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 It should be able to make forecasts and estimates, and
generate advanced information, thus providing a competitive
advantage.
 Decision makers can take actions on the basis of such
predictions.
 It should create linkage between all sub-systems within the
organization, so that the decision makers can take the right
decision based on an integrated view.
 It should allow easy flow of information through various sub-
systems, thus avoiding redundancy and duplicity of data. It
should simplify the operations with as much practicability as
possible.
 Although the MIS is an integrated, complete system, it
should be made in such a flexible way that it could be easily
split into smaller sub-systems as and when required.
 A central database is the backbone of a well-built MIS.
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Characteristics of Computerized
MIS
Following are the characteristics of a well-designed computerized MIS:
oIt should be able to process data accurately and with high speed, using various
techniques like operations research, simulation, heuristics, etc.
o It should be able to collect, organize, manipulate, and update large amount of raw
data of both related and unrelated nature, coming from various internal and
external sources at different periods of time.
o It should provide real time information on ongoing events without any delay.
oIt should support various output formats and follow latest rules and regulations in
practice.
o It should provide organized and relevant information for all levels of management:
strategic, operational, and tactical.
oIt should aim at extreme flexibility in data storage and retrieval.

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Nature and Scope of MIS
The following diagram shows the nature and scope of MIS:

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MIS Components
Hardware
Software
Backup data
Restart job
Virus scan
People Data
Procedures
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•2.1.1. Primary Components of MIS?
• The five primary components of MIS are:
• Hardware
2. •
•
Software
Data (information for decision making),
General • Procedures (design, development and

documentation),
• People (individuals, groups, or organizations).
Principle • Raw facts representing events.
s of • Data is organized in standard formats or

databases
• Databases ease understanding and use.
MIS .. 1 • MIS is founded on databases.
•
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Why is MIS Important?
• Manufacturin
g
• Accounting &
MIS affects all areas of Finance
• Human
business resources
• Marketing
• Top
management
Performance evaluations—
expectations

MIS Organization
S
EI
Strategic
ES P
ER
Mgt.
an DSS
on
Tactical
l
cti
tro
Management
sa
on
sC
Tr
es
oc
Business Operations
Pr

•Enterprise Systems (ES)
Enterpris • ES are packaged enterprise application software

(PEAS) systems.
e Systems • ESs have process orientation including:

• Enterprise resource planning (ERP);
• Customer Relationship Management (CRM),
(ES) • Supply Chain Management (SCM).
• The distinction between ES and IS:
• ES refers to software, whereas an IS a social system that
uses IT.
• An IS includes people and IT.
Operations, Tactics,Strategy
Sector Operations Tactics Strategy
Production • Machine settings • Rearrange work area • New factory
• Worker schedules • Schedule new products • New products
• Maintenance sch. • Change inventory method • New industry
Accounting • Categorize assets • Inventory valuation • New GL system
• Assign expenses • Depreciation method • Debt vs. equity
• Produce reports • Finance short/long term • International taxes
Marketing • Reward salespeople • Determine pricing • Monitor competitors
• Survey customers • Promotional campaigns • New products
• Monitor promotions • Select marketing media • New markets

Decision Levels
Decision Description Example Type of Information
Level
Strategic Competitive advantage, New product that External events, rivals,
become a market leader. will change the sales, costs quality,
Long-term outlook. industry. trends.
Tactical Improving operations New tools to cut Expenses, schedules,
without restructuring the costs or improve sales, models,
company. efficiency. forecasts.
Operations Day-to-day actions to Scheduling Transactions,
keep the company employees, accounting, human
functioning. ordering supplies. resource management,
inventory.

Classification by Characteristic

Strategic Information:
 Strategic information is concerned with long term policy decisions
that defines the objectives of a business and checks how well these
objectives are met. For example, acquiring a new plant, a new
product, diversification of business etc., comes under strategic
information.
 Tactical Information:
 Tactical information is concerned with the information needed for
exercising control over business resources, like budgeting, quality
control, service level, inventory level, productivity level etc.
 Operational Information:
 Operational information is concerned with
plant/business level information and is used to ensure proper
conduction of specific operational tasks as planned/intended.
Various operator specific, machine specific and shift specific jobs
for quality control checks comes under this category.
TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR
MANAGERS
MANAGEMENT LEVEL MIDDLE

MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS
OPERATIONAL
OPERATIONAL LEVEL
MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING RESOURCES
2.27 © 2002 by Prentice Hall
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Human Resource Information Systems (HRIS)
A database system that keeps important information
about employees central and accessible location
Feeds information into HR policy and planning as
well as other HR decision process.
HRIS definition
It is systematic way of storing data and information
for each individual employee to aid planning,
decision making submitting of returns and reports.
A method by which an organization collects, analysis
and reports the information about people and job.

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1. Staffing
All Managers know the importance of having
right person at right place. To recruit the right
person for right job requires information from
various resources. HRIS play very important
role in providing vital information to managers
so that they can hire right person for the right
job.
How HRIS
helps in team 2. Organizing
management It is important that organizations not only

recruit the right person for right job but also
keep the employee motivated. Here again,
HRIS play a vital role by helping , the
managers keep a vigil on the staff so that no
body feel neglected. Motivation can be given
in the simplest forms, such as email of
appreciation from the boss to the staff or
wishes to a subordinate on his birthday etc.
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KEY TAKEAKEY TAKEAWAYS
WAYS
 The information systems triangle includes people, processes, and
information technology. It is a good reminder that MIS is about much
more than just technology.
 Well-designed information systems keep the user in mind at each step of
the process.
 Information systems are used by every functional area of business—
marketing, management, finance, and accounting. For this reason, it is
good to have a strong background in information systems.
 Careers in information systems tend to be dynamic, team based, and
focused on problem solving.
 Few information systems careers involve programming. However, IS
professionals must be able to communicate with programmers.

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•1.1.

Understanding the keywords

MEANI • Top managers handle planning;

Goal setting, Environmental scanning ,Forecasting and

Staffing , Coordinating, Delegating, Understanding and Procedures/

Goals/Objectives, standards of desirability, Informing,

06/21/2024 BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE DR.VITTAP 2

of MIS .. • Processing Data – transforms data into information.

BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE

BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE

A system is an orderly grouping of IS is an organized combination of

BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE

Management Information System or 'MIS' is a planned system

The goals of an MIS are to implement the organizational

06/21/2024 BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE DR.VITTAP 11

 Capturing Data: Capturing contextual data, or operational information

06/21/2024 BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE DR.VITTAP 13

06/21/2024 BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE DR.VITTAP 15

The following diagram shows the nature and scope of MIS:

06/21/2024 BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE DR.VITTAP 16

06/21/2024 BISfor Managers Chapter-1 Sri Sai Coll 18

General • Procedures (design, development and

s of • Data is organized in standard formats or

06/21/2024 BISfor Managers Chapter-1 Sri Sai Coll 21

06/21/2024 BISfor Managers Chapter-1 Sri Sai Coll 22

Enterpris • ES are packaged enterprise application software

e Systems • ESs have process orientation including:

06/21/2024 BISfor Managers Chapter-1 Sri Sai Coll 24

06/21/2024 BISfor Managers Chapter-1 Sri Sai Coll 25

MANAGEMENT LEVEL MIDDLE

KNOWLEDGE LEVEL KNOWLEDGE &

BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE

management It is important that organizations not only

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06/21/2024 BISFOR MANAGERS CHAPTER-1 SRI SAI COLLEGE DR.VITTAP 42

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