Management

Information System:
Overview
ROSEMARIE ARENDAIN-RABINO
Objectives
1. Understand and discuss the purpose of using MIS
2. Discuss the three hierarchical levels of management
3. Identify the three groups of management planning and control that is
proposed by Robert Anthony
4. Able to differentiate the purpose of management, information and
system.
Introduction

In today's world, the need for current knowledge has become unavoidable in order to
make informed decisions in all areas of existence. Knowledge is required in all fields,
including business, commerce, defense, finance, education , economics, and politics.

Information is live and it must be revised on a regular basis and is renewable. The
exponential growth of knowledge necessitates the collection, storage, and retrieval of
data in various fields as needed.
Example:

1. When establishing a new industry, knowledge on technology, skill, resources, and

materials becomes a critical necessity for its development and smooth operation.

2. In a competitive market, the manufacturer wants knowledge about the pricing policies
of rivals, particularly competitive goods, distribution strategies, and so on before
deciding on the price of an item.
Management information System
The management information system (MIS) is an automated man-machine system that
provides data to help administrators organize and monitor their organizations.
Management
Management has been defined as a feature, a procedure, an occupation, and a social
group. It applies to the types of tasks and operations that administrators are responsible
for. Managerial tasks such as planning, coordinating, steering, leading, and guiding
define the scope of the operations.

1. Planning is the method of choosing ahead of time which courses of action to take
and when and how to do so. Its goals in the most effective way possible, as well as for
forecasting potential possibilities and challenges.
2. Organizing is the organized gathering of individuals and events that help the farm
accomplish its goals. It is necessary to delegate roles, jobs, and hierarchies to
employees.

3. Controlling is the process of monitoring the progress of preparations and fixing any
deviations that could occur.

4. Activating the plans, structure, and group efforts in the desired direction is referred to
as directing. It is required for the successful execution of plans by providing the
necessary leadership inspiration and communication.
Three hierarchical levels of management
1. Top or Strategic management
2. Middle or Tactical management
3. Junior or Operational management

Top management determines the policies, strategies, goals, and expenditure structure
under which the organization's different divisions can function.
Middle management is in charge of putting upper management's policies and long-term
goals into action.
Junior Management is in charge of carrying out day-to-day activities and decisions made
by middle management in order to deliver products and services that meet sales, benefit,
and other objectives.
Information
The effect or object of data processing is information. Information is characterized as
evidence that is organized and delivered at a certain time and location in order for a
decision-maker to take the appropriate action.

Data that has been retrieved, stored, or otherwise used for informational or inferential
purposes, claims, or as a basis for forecasting is referred to as information.
Any supporting records, ledgers, and other sources of benefit and loss statements, for
example, can be used by the decision maker for financial preparation and management.
System
A device is a collection of elements or modules that work together to perform specific
tasks.
Sub-systems make up a system. There are two types of systems: natural and man-
made.
A subsystem that can be made up of several subsystems. A super structure is made up
of subsystems.
A production subsystem, for example, might include sub-subsystems for production
management, material control, and quality control.
Definitions of Management Information
System
“MIS is a collection of staff, equipment, protocol, records, and correspondence that
gathers, validates, runs on transformers, stocks, retrieves, and presents data for use in
planning, budgeting, billing, managing, and other management processes,” according to
Schwartz.

‘MIS is an automated user machine framework intended to provide knowledge to assist

organizational control, management control, and decision making processes in an
enterprise,' according to Davis and Olson. Hardware, equipment, manpower, processes,
and suppliers are all included in the information systems.
Framework for MIS organization and
management triangle
In 1965, Robert Anthony proposed that management planning and control be split into
three groups. These are:
1. Strategic planning
2. Operational control
3. Management control

Strategic preparation is the process of determining the organization's goals and

making adjustments to those objectives, as well as formulating strategies to guide the
acquisition, utilization, and disposal of those services.
Operational management refers to the mechanisms that are used to carry out
operational operations in order to maximize resource utilization. It employs pre-
determined processes and decision-making guidelines.

Managers in different departments need management oversight to assess results,

decide on control actions, devise new decision rules, and assign resources.
Information needs and its Economics
Three factors also increased the supply of knowledge to management at different stages.
These are:
1. Development of telecommunications: The information flow has been accelerated with
developments in communication technology like radio telephony, microwave communication,
Satellite communication and laser communication
2. Processing of data with computer: Data usability has greatly improved because a
computer can quickly search the existing storage data to provide the necessary information.
3. Video technology: Video technology permits the recording of activities on video
cassettes and video discs.
 Assessment 1
1. In your own understanding, discuss what is strategic planning.

2. Differentiate the process of operational control between management control.

3. Describe what is a system.

4. Compare the difference between Data and Information.

5. Give a summary about the topic from slide 3-15.

Information Classification
The knowledge gathered and used in businesses can be divided into five groups:
1. Action vs. non-action information: The information lying unnoticed is called non
action information but the same information when processed and used in some context
by the recipient is called action information.

2. Recurring vs. non recurring information: Information which is generated at regular

intervals of time is called recurring information. A particular type of information which is
arrived at through some special kind of study and which helps in management decision
is called non recurring information.
3. Documentary vs. non documentary information: Information which is available in
some document form that is either in some written form or on microfilms, magnetic tapes,
floppy discs etc is called documentary information. All other information is categorized as
non documentary.
4. Internal vs. external information: The distinction is obvious. Managers at different
hierarchies in the organization require different combinations of internal and external
information.
5. Historical information vs. future projections: Here again the distinction is obvious
because historical information would be futile unless it can be used for future projection.
Systems Approach
The system approach to a business organization implies a wholistic approach to the
study of inter-relationships of sub-systems of an organization in view of the objectives
set by the organization.
Thus, this requires an integrated approach which could reduce the conflict among
different sub-systems and modify the objectives of these sub-systems in order to arrive
at an optimum solution to the problems which may arise in the achievement of the main
objectives or in the working of the whole system.
Systems view of business
Classification of systems
The various types of systems are:
◦ Conceptual system
◦ Empirical system

Conceptual system is concerned with theoretical structures which may or may not
have any counterpart in the real world. Examples of such systems are economic theory,
organization theory, general system of relativity etc.
Empirical systems are concrete operational systems made up of people, materials,
machines, energy, and other physical things. Other systems such as electrical, thermal
and chemical are also fall into this category.
1. Natural and man-made systems:
Example of natural systems are: human body, solar system, etc.
Example of man-made systems are: transportation system, communication system, education
system, and business organization.

2. Social system:
A system made up of people may be taken as a social system, such as business organizations,
government agencies, political parties, social clubs, professional societies etc.

3. Man-machine system:
Most empirical systems fall into the category of man-machine systems. One of the examples of this
system is aeroplane.
4. Open and closed systems:

An open system continually interacts with its environment. This type of system can
adapt
to changing internal and environmental conditions. Every social and business
organization is open because it reacts with its unpredictable environment

A closed systems one of that does not interact with its environment. This system does
not change or if it does then a barrier exists between the system and the environment to
prevent the system from being affected.
System life cycle
A management information system business has the following four phases in its life
cycle:

1. Study phase

This phase is concerned with

1. Identification of the problem.
2. study of the present system and its effectiveness.
3. Identification and evaluation of various alternative course of action.
4. Selection of the most appropriate course of action as per the objective.
2. Design phase:
This phase is concerned with
1. Identification of the function to be performed
2. Study of the input/output and life cycle design
3. Defining basic parameters of system design.

3. Development phase:
At this stage, the decision about the selection and use of hardware and software is
taken.

4. Implementation phase
The system designed is given practical shape and is adopted for use.
Objectives of MIS
1. Assist in the decision-making process by providing facts in a timely manner.
2. Provide: It with the knowledge it needs to carry out its tasks at each level of
management.
3. Assist: In highlighting the crucial performance indicators that must be
carefully watched.
4. Assistance: Assist decision-making in both formal and unstructured challenge
situations.
5. Provide a system of individuals, machines, and protocols, as well as digital
query facilities records, for gathering, saving, retrieving, and distributing data
to users.
Classification of MIS
Four categories of MIS

1. Data bank information system:

This system assumes a fragile relation between the information system and the
customer. This system is better at making unstructured choices. The information system
gathers, classifies, and retains data that the user may find useful.
2. Predictive information system

This class of system is an extension of the databank information system. In this system
prediction and inference making occurs when processing by the information system
passes from basis data to conclusion about the source.
3. Decision making information system.

In this system an organizations value system and criteria for choice are incorporated.
This level of MIS is useful for structured decisions.

4. Decision taking information system.

The customer is believed to be one of this device's knowledge system. When an

inventory level exceeds or falls below the reorder level, for example, a procurement
order is immediately issued, and remainders are sent to retailers to deliver supplies
when supply is delayed.
Implementation of MIS
1. Preparing organizational plans. 8. Simultaneous operation of old and
modern devices.
2. Planning of work flow.
9. Deploying the modern device and
3. Training of personnel.
phasing out the existing.
4. Development of software.
10. The current system's evaluation,
5. Acquiring computer hardware. maintenance, and regulation.

6. Designing the format for data collection.

7. Construction of data files.

Limitation of MIS
1. Management information systems (MIS) cannot take the place of administrative judgment
in decision-making. It is merely a useful instrument for administrators in making decisions
and addressing problems.
2. The output quality of MIS is directly proportional to the input and process quality.
3. MIS is unable to include customized details bundles. Before making a decision, it is
necessary to review the available data.
4. In dynamic and rapidly evolving situations, MIS can lack the ability to change itself
quickly.
5. Only quantitative considerations are included in MIS.
6. MIS is less useful for making choices that aren't pre-programmed.
7. In organizations where knowledge is not communicated with others, MIS is less accurate.
8. MIS is less successful when senior management, corporate structure, and managerial
personnel shift often.
 Assessment 2
1. What is the advantage of empirical system compared to conceptual system?

2. What are the four phases of MIS life cycle?

3. The first phase of the MIS life cycle is study phase. Why do you think this phase is
important in the life cycle of MIS?

4. What are the four categories of MIS? Explain the purpose of each category.
 Thank you for Listening

Next topic: Information Systems for Decision Making