MIS-UNIT 1

An Overview of
Management
Information
System
Management

• Management covers the planning,

control, and administration of the
operations of a concern.
• The top management handles planning.
• The middle management concentrates on
controlling.
• The lower management is concerned with
actual administration.
Information
• Information, in MIS, means the processed
data that helps the management in
planning, controlling and operations.
• Data means all the facts arising out of the
operations of the concern.
• Data is processed i.e. recorded,
summarized, compared and finally
presented to the management in the form
of MIS report.
System

• Data is processed into information with the

help of a system.
• A system is made up of inputs, processing,
output and feedback or control.
• Thus MIS means a system for processing data
in order to give proper information to the
management for performing its functions.
Definition of MIS

• 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

• 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.
Objectives of MIS

• Objectives of MIS
• 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
– classifying data and
– summarizing data
 Objectives of MIS

• Objectives of MIS
• 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.
Characteristics of MIS

• Following are the characteristics of an MIS −

• It should be based on a long-term planning.
• It should provide a complete view of the dynamics and the
structure of the organization.
• It should work as a complete and comprehensive system
covering all interconnecting sub-systems within the
organization.
• It 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.
• It should be based on need of strategic, operational and
tactical information of managers of an organization.
• It should also take care of exceptional situations by
reporting such situations.
Characteristics of MIS
• Following are the characteristics of an MIS −
• 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.
 Characteristics of Computerized MIS
• Following are the characteristics of a well-designed
computerized MIS −
• It should be able to process data accurately and with high speed,
using various techniques like operations research, simulation,
heuristics, etc.
• 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.
• It should provide real time information on ongoing events without
any delay.
• It should support various output formats and follow latest rules and
regulations in practice.
• It should provide organized and relevant information for all levels
of management: strategic, operational, and tactical.
•
 Role of MIS

• The MIS plays the following roles.

• MIS stores data and records vital information.
• Firm employees use MIS software to complete daily
operations and administrative tasks.
• Therefore, MIS should increase employee efficiency.
• Larger firms use automation and data generation to
preserve employees’ time and energy. But those systems
can be expensive.
• The success of a system depends more on users than the
software or hardware.
• An information system is beneficial in strategizing,
analysis, and performance comparison.
Role of MIS

• The MIS satisfies the diverse needs through

variety of systems such as query system, analysis
system, modeling system and decision support
system.
• The MIS helps in strategic planning,
management control, operational control and
transaction processing.
• The MIS helps the Lower Level management
personnel by providing the operational data for
planning, scheduling and control.
Role of MIS

• The MIS helps the Middle Level management in short

term planning, target setting and controlling the
business functions.
• The MIS helps the Top Level management in goal
setting, strategic planning and evolving the business
plans and their implementation.
• The MIS plays the role of information generation,
communication, problem identification and helps in
the process of decision-making.
• The MIS, therefore, plays a energetic role in the
management, administration and operation of an
organization.
IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

• MIS plays a very important role in the

organization.
• It creates an impact on the organization’s
functions, performance and productivity.
• The impact of MIS on the functions is, in its
management with a good MIS supports the
management of marketing, finance, production
and personnel.
• So management becomes more efficient.
• The tracking and monitoring of the functional
targets becomes easy.
IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

• Since, the MIS work on the basic system such as

transaction processing and database, the labor of the
clerical work is transferred to the computerized
system, relieving the human mind for better work.
• It will be observed that lot of manpower is engaged
in this activity in the organization.
• Seventy (70) percent of the time is spent in recording,
searching, processing and communicating.
• This MIS has a direct impact on this overhead.
• It creates information –based working culture in the
organization.
IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

• The manager is kept alert by providing certain

information indicating and probable trends in the
various aspects of business and hence he can take
an action or a decision in the matter.
• This helps in forecasting and long-term perspective
planning.
• Disciplined information reporting system creates
structure database and a knowledge base for all the
people in the organization.
• The information is available in such a form that it
can be used straight away by blending and
analysis, saving the manager’s valuable time.
 MIS and USER
• Centralized control of database is used by the person or group
of persons under the supervision of high level administrator.
• The person or group is referred as Database Administrator.
(DBA)
• They are the users who are most familiar to database and
responsible for creating, modifying and maintaining the levels
of management.
• DBA specifies external view of the various users and
applications and is responsible for definition and
implementation of internal level including storage structure and
access method to be used for the optimum performance of
DBMS.
• DBA controls all the changes in three levels of it by the
changes or growth in the organization or due to any emerging
technology.
 MIS and USER
• DBA also define mapping between internal and
conceptual level and vice versa.
• Another responsibility DBA is to maintain
authenticity of the database i.e. un-authorized person
should not able to access the database.
• DBA grants the permission to the user for accessing
database and also stores their record in the database.
• The user profile is used by the database to verify that
which user is performing which activity on database.
• DBA is also responsible to recover the database
from the failure due to human, natural or hardware
causes with minimal loss of data.
Management as a Control System
• Planning, organizing, staffing, directing and
controlling are the various steps in the
management process.
• Management experts have viewed these
steps as management control system.
Management as a Control System
• Control, is the process through which
managers assure that actual activities obey
to the planned activities, Leading to the
achievement of the stated common goals.
• The control process measures a progress
towards those goals, and enables the
manager to detect, the deviations from the
original plan in time to take corrective
actions before it is too late.
The Functions of Management
• There is no universally accepted list of
management functions.
• Different experts have classified the functions of
management in different ways.
• The management functions that are generally
accepted are:
• Planning
• Organizing
• Staffing
• Directing
• Controlling
The Functions of Management

• Planning
• A plan is a future series of actions decided
beforehand.
• It specifies the objective to be achieved in the
future and the steps required to achieve them.
• Planning is the most essential function of
management.
• It is concerned with thinking in advance about what
to do and who is going to do it.
• It is concerned with the certain determination of a
future course of action to achieve the desired result.
The Functions of Management

• Planning
• Planning bridges the gap between the initial point to the
destination to reach.
• Selection of objectives, policies, and procedures are involved
in planning.
• The essential elements of planning are decision-making and
problem-solving.
• For example, in Ram’s organization, the objective is the
production and sale of shoes.
• He has to decide quantities, variety, and color, and then
allocate resources for their purchase from different suppliers.
• Planning cannot avoid or stop problems, but it can anticipate
them and prepare emergency plans to deal with them if and
when they occur.
Organizing
• Organizing is the management function of allotting duties,
grouping various activities, establishing authority, and
allocating resources necessary to attain the specific plan.
• Once the plans are formulated, the organizing function
reviews the activities and resources needed to be applied
to the plan.
• It resolves the activities and resources needed. Organizing
decides who will perform a particular task, and where and
when it will be done.
• It affects the grouping of the necessary tasks into
departments or work units so that they can be managed
well.
• Therefore there is an organizational hierarchy so that
reporting is smooth within the organization.
Organizing
• The efficiency of operations and the effectiveness of results
can be achieved only if there is a proper organizational
technique.
• The nature and type of organization structure depend upon
the size and nature of the enterprise.
• For example, In Ram’s enterprise of shoes, there are many
duties to be performed.
• So, he allocates the duties within the organization forming
various groups to attain the plan.
• He decides who will perform which task as preparation of
accounts, making sales, record keeping, quality control, and
inventory control are the tasks to be performed.
• There is an organizational hierarchy so that reporting is easy
and there is a smooth flow within the enterprise.
Staffing
• Staffing refers to the process of hiring and
developing the required personnel to fill in
various positions in the organization.
• It is that part of the management process, which is
concerned with recruitment, selection, placement,
allocation, conservation, and development of
human resources.
• It is a very important aspect of management as it
ensures that the organization has the right number
and right kind of people, with the right
qualification at the right places, at the right times
and that they are performing the right thing.
Staffing
• It is also known as the human resource function.
• For example, when Ram is hiring personnel for his
enterprise, he will recruit different people for
different tasks.
• He has to ensure that he is hiring the right people
with the right qualification for the right job.
• For this process, Ram will need an HR manager who
will be performing this task for the organization.
• This will be a very important part of the
management function for his organization, as it will
affect his enterprise in many ways if he selects the
wrong people for the job.
Directing
• Directing is that component of the management process
which ensures that the members of an organization work
efficiently and effectively for achieving the desired objective.
• It involves leading, influencing, instructing, guiding, and
inspiring employees to perform and achieve the
predetermined objectives.
• The two important components of directing are motivation
and leadership.
• Communicating effectively and clearly with supervising
employees at work is also a part of directing.
• It involves issuing orders and instructions to subordinates,
overseeing people at work, and creating a work environment
wherein the employees may perform to the best of their
abilities.
Directing
• To bring out the best from the employees, a
manager needs to direct them through praise and
humbly criticize them.
• For example, in Ram’s enterprise, the employees
are having some doubts and difficulties.
• If the supervisor guides his subordinates and
clarifies their doubts in performing a task, it will
help the employees and the workers to perform
the activities correctly and on time.
• When the employees are motivated and
supervised properly, it leads the organization
toward its goal.
Controlling
• When the plans are put into operation from
directing, it becomes essential to judge regularly
whether the actual results are consistent with the
planned results.
• It monitors the organizational performance
towards the fulfillment of organizational goals.
• It enables the manager to detect errors and defects
in the course of work and to take corrective
actions whenever needed.
• It also provides proper direction to work in
conformity with the plan of action or
predetermined standards.
Controlling
• Controlling serves the purpose of finding out deficiencies
in performance and rectifying them so that the organization
can prevent their recurrence.
• For example, Ram expected to sell 1,000 pairs of shoes per
week.
• This is the standard against which his actual performance
will be judged at the end of the week.
• If his actual performance at the end of the week falls short
of the standard, reasons for the shortfall would be
ascertained by his superior.
• Corrective actions will be taken to help the workers so that
Ram’s enterprise can achieve the standard performance of
1,000 pairs of shoes in the future by controlling the
deficiencies and rectifying the mistake.
Managerial Roles
Managerial Roles
• Interpersonal Roles-
• This category covers behaviors and
responsibilities related to interactions with
employees and other stakeholders.
• Through these interactions, the manager can
achieve organizational goals.
• The managerial roles included in this category
are figurehead, leader and liaison.
Managerial Roles
• Informational Roles-
• This category represents situations when a
manager generates, receives or shares
knowledge with employees and higher-
level colleagues to accomplish objectives.
• The managerial roles included in this
category are monitor, disseminator and
spokesperson.
Managerial Roles
• Decisional Roles- -
• This category describes a manager's
responsibility to use the information
they gain to form business and
strategic decisions.
• The managerial roles included in this
category are entrepreneur, disturbance-
handler, resource-allocator and
negotiator.
10 Managerial Roles
• The following defines and provides
examples of the different roles
managers hold in the workplace,
according to Mintzberg:
Managerial Roles
1. Figurehead
• This role refers to your responsibility as a manager to
perform tasks related to social, symbolic or legal
matters.
• In these situations, you are not making decisions but
serving as a representative of the organization.
• As a figurehead, you also aim to inspire your team to
complete goals and tasks.
• An example of responsibility in the figurehead role is
when you attend a social lunch or event with a client.
• You are there to promote your company or team and
project a positive, professional image.
Managerial Roles
2. Leader
• The leader managerial role refers to your duty as a manager to
oversee the performance of your staff.
• Overall, you aim to manage the team and the responsibilities
of each member to ensure you reach objectives effectively.
• Some of your duties in this role include providing guidance,
developing and motivating staff and performing evaluations.
• For example, your team may have a specific sales goal it aims
to reach one month.
• As a leader, you would communicate your expectations to
team members and ensure they understand them.
• Throughout the month, you would check in with them
regularly to monitor their progress and may provide resources
or delegate tasks as needed to help them achieve the goal.
Managerial Roles
3. Liaison
• In the liaison role, you create and maintain internal
and external relationships.
• You serve as a connection between different groups of
people to ensure work runs smoothly.
• As a liaison, you can transfer knowledge or
information to members across your organization's
chain of command or communicate between
stakeholders and employees to ensure projects remain
on task.
• In some situations, you may bring members of your
external network into the company to help achieve
organizational goals more efficiently.
Managerial Roles
3. Liaison
• For example, as a manager, you would
communicate regularly with your employees but
also interact with your clients.
• In your client conversations, you can gain
insights on what their needs are, then relay that
information to your employees.
• Now that they have an understanding of the
client's expectations, you can ensure that they
work to fulfill those needs and deliver a
successful result.
Managerial Roles
4. Monitor
• In the monitor role, you seek information related to
your organization, such as potentially impactful
industry changes.
• Your research includes both internal and external
sources.
• Once you gather all the relevant information, you
will analyze it to identify and solve potential
problems.
• Monitoring responsibilities also include assessing
the current operations of the organization and
identifying potential opportunities for improvement.
Managerial Roles
4. Monitor
• For example, you may use customer feedback to
determine how you can improve your existing
product line.
• You also need to monitor industry trends, such
as products launched by competitors and
regulatory changes that your company may need
to follow.
• When you understand what is occurring in your
industry, it ensures your company meets
business standards and remains competitive.
Managerial Roles
5. Disseminator
• As a disseminator, you receive messages from
internal and external sources that you convey to
the appropriate individuals.
• You can transmit this information in both verbal
and written formats.
• Usually, this situation refers to valuable or
otherwise important information that will benefit
your organization or provides guidance on tasks
your employees need to complete.
Managerial Roles
5. Disseminator
• For example, after researching industry trends,
you may have developed a proposal for a new
product design.
• You would then submit this proposal to upper
management for approval and also provide it to
your employees.
• Providing the proposal to your employees allows
them to familiarize themselves with the project
and enables you to determine how to delegate
tasks.
Managerial Roles
6. Spokesperson
• In the spokesperson role, you represent your
organization and convey information, such as
goals or policies, to external stakeholders.
• If you work within a large organization, you may
need to serve as the spokesperson of your team
and represent it during internal meetings or
events.
• In this situation, you may need to provide insights
related to your team's performance and goals to
upper management or other departments.
Managerial Roles
6. Spokesperson
• For example, your spokesperson's
responsibilities may require you to attend the
annual shareholder's meeting.
• At this meeting, you may inform the attendees
about the quantifiable results or achievements
your team achieved that year, such as sales
numbers.
• You may also discuss the strategic business
goals you aim to achieve within the next year.
Managerial Roles
7. Entrepreneur
• The entrepreneur role involves responsibilities related
to organizing and running business processes.
• These responsibilities may include solving problems
and developing and implementing new ideas or
strategies.
• As an entrepreneur, your ideas or decisions often
promote innovative solutions that move the
organization forward.
• If you notice slow sales on one of your organization's
key offerings, for example, you may decide to
develop a new marketing strategy using social media
to solve the issue.
Managerial Roles
8. Disturbance handler
• When your organization or team faces
unexpected challenges, you take the role of a
disturbance handler to help manage the issue.
• These challenges can be both external or
internal—whether a client backs out of a
contract or you discover a conflict between
colleagues.
• In these situations, your employees will expect
you to take charge to solve the issue and
maintain productivity.
Managerial Roles
8. Disturbance handler
• For example, managers often receive training in
conflict resolution skills.
• If a conflict arises between two members of your
team, you must handle the situation objectively
while ensuring to collaborate on a solution that
benefits all parties.
• You often must act quickly to ensure that
operations continue to run smoothly and receive
as little interruption as possible.
Managerial Roles
9. Resource allocator
• In the resource allocator role, you are responsible
for managing and distributing resources.
• You make the decisions on how those materials will
best be used or applied throughout the organization
or team.
• These resources will vary, from funding to
equipment to staff members.
• For example, if you control the organization's
budget, you will determine how to divide funding
amongst your departments based on their needs or
goals.
Managerial Roles
10. Negotiator
• In the negotiator role, you participate in or direct
negotiation situations.
• These negotiations may occur with external
parties, where you will represent the interests of
your organization.
• You may also host negotiations with internal
parties, such as other departments or your team
members.
• Successful negotiations will require you to gain
buy-in by appealing to the interests and needs of
the other party.
Managerial Roles
10. Negotiator
• For example, you may enter a negotiation
with an employee over their salary.
• If you cannot meet their monetary request,
you may negotiate a lower number but
provide additional benefits such as more
vacation days to make the offer more
attractive.
The Levels of Management
• Management is a group activity, which means
that every organization has a number of
individuals placed at different positions.
• They are provided with different
responsibilities according to their skills,
education, etc.
• For the fulfillment of the responsibilities
given to the members of an organization, they
are also provided with the required authority.
The Levels of Management
• Based on the amount and extent of
responsibility and authority given to these
members, a chain of superior-subordinate
relationships is formed.
• This chain of superior-subordinate relationships
is known as the Levels of Management.
• There are three levels of management;
• Top Level Management
• Middle Level Management
• Operational or Lower Level Management.
The Levels of Management
The Levels of Management
1. Top Level Management
• The senior most executives of the organization are
found at the top level of management.
• The top level of an organization’s management
consists of the Board of Directors, Managing
Director, Chairman, Chief Executive Officer, Chief
Operating Officer, Vice-President, President,
General Manager, and other Senior Executives.
• These managers perform stressful and complex
work that demands long hours and commitment
towards the company.
The Levels of Management
Functions of the Top Level Management
1.Determination of the objectives for the organization:
• The managers at the top level management formulates
the goals or objectives for an organization along with
the strategies to achieve those goals.
2. Framing of plans and policies:
• For the achievement of the pre-determined goals or
objectives of an organization, it is essential to formulate
proper strategies, plans and policies within the
organization.
• The top level managers are responsible for the
formulation of these plans and policies.
The Levels of Management
3.Coordination and control of the performance:
• Based on the overall pre-determined objectives of the
organization, the top level managers coordinate and
control different activities of different departments of
the organization.
4.Analysis of the business environment:
• Business environment of an organization plays a crucial
role in its success and survival.
• The managers at the top level of management of an
organization carefully analyze the business environment
and its implication and make necessary decisions for
better results.
The Levels of Management
5. Setting up an organizational framework:
• For the success and survival of an organization, it is
essential to form a proper framework or structure within
the company.
• The top level managers are responsible for the
determination of the organizational framework for the
proper and successful execution of its plans and
policies.
6.Assembling of the resources:
• Achievement of the organizational goals requires
different resources of materials, machines, men, money
and materials. It is the duty of the managers at the top
level management to arrange these resources.
The Levels of Management
2. Middle Level Management
• The next level of management is the Middle Level, which serves
as a link between the Top Level Management and the Lower
Level Management.
• The middle level management is superior to the lower or
operational level management and subordinate to the top level
management.
• The middle level of an organization’s management consists of
different functional department heads, such as Departmental
Managers including Production, Purchase, Finance, Personnel,
Marketing Managers, and other executive officers for different
departments such as plant superintendent, etc.
• The employees or members of the middle level management are
responsible to the top level management for their performance.
The Levels of Management
• Functions of the Middle Level Management
1. Interpretation of the policies framed by the Top Level
Management:
• As the middle level management acts as a subordinate to the top level
management, the managers at this level have to clearly interpret the
plans and policies framed by the managers at the top level management
to the managers at the lower or operational level management.
2.Selection of suitable operative and supervisory personnel:
• To perform any function properly, an organization needs the required
personnel.
• It is the duty of the Middle Level Managers to make sure that the
organization has sufficient personnel with them to perform the
functions and duties better.
• For the fulfillment of this duty, the middle level managers recruit and
select suitable employees for different departments based on the
applicant’s skills, etc., and the firm’s requirements.
The Levels of Management
3. Assigning of duties and responsibilities to the
Lower Level Management:
• The middle level managers acts as superior to
the operational level managers.
• These managers have to assign respective duties
and responsibilities to the lower level managers
and coordinate with them regarding the activities
of different work units.
The Levels of Management
4.Motivating employees to get desired objectives:
• An organization can effectively and efficiently achieve its
desired goals only when its employees are motivated enough to
work towards the betterment of the organization.
• Therefore, the managers at the middle level management
motivate the employees towards the achievement of the
organizational goals and improvement of their performance.
5. Cooperating with the entire organization:
• As middle level management serves as a link between the top
level management and the lower level management, the
managers at this level have to cooperate with every other
department for the smooth functioning of the organization.
The Levels of Management
3. Lower Level Management
• The last level of management is the lower level management and
is also known as the Supervisory or Operational Level
Management.
• The managers at the lower level of management play a crucial
role in the proper management of an organization, as they
directly interact with the actual work force and interpret the
instructions of the middle level managers to them.
• The responsibility and authority of the lower level managers
depend upon the plans and policies formed by the top level
management.
• The lower level management consists of foremen, supervisors,
section officers, superintendents, and other managers who have
direct control over the operative employees of the organization.
The Levels of Management
• Functions of the Lower Level Management
1. Issuing of orders and instructions:
• The managers at the operational level management issue orders
to the workers and supervisors and instructs them on their roles,
responsibilities, and authority.
• Besides, these managers also control the functioning of the
workers.
2. Preparation of plan for activities:
• The lower level managers plan the day-to-day activities of the
organization.
• Besides, these managers also assign work to the subordinates,
guide them for the same, and take corrective measures wherever
and whenever necessary.
The Levels of Management
3. Assigning and assisting in work:
• The job or responsibility of the lower level managers
includes assigning work to the subordinates and assisting
them with the work.
• They do so by explaining the work procedure to the
employees and solving their problems for better
performance.
4. Representing workers’ grievances:
• As the managers at the lower level management are in
direct contact with the managers at the middle level
management.
• They listen to the grievances of the workers and report
those issues to the middle level managers.
Business intelligence and MIS
• BI(Business Intelligence) is a set of processes,
architectures, and technologies that convert raw data into
meaningful information that drives business actions.
• It transform data into actionable intelligence and
knowledge.
• BI has a direct impact on organization’s strategic, tactical
and operational business decisions.
• BI supports fact-based decision making using historical
data rather than assumptions and gut feeling.
• BI tools perform data analysis and create reports,
summaries, dashboards, maps, graphs, and charts.
• Provide decision makers with timely data, information and
knowledge for problem solving and problem findings.
Business intelligence and MIS
• Characteristics of BIS :
1. It is created by obtaining data and information for use in
decision-making.
2. It is a combination of skills, processes, technologies,
applications and practices.
3. It contains background data along with the reporting tools.
4. It is an extension of Executive Support System or
Executive Information System.
5. It collects, integrates, stores, analyzes, and provides access
to business information.
6. It is an environment in which business users get reliable,
secure, consistent and timely information.
Business intelligence and MIS
Business intelligence and MIS
• Transactions-TP’s
• ERP - Enterprise Resource Planning
• SCM - Supply Chain Management
• CRM - Customer Relationship
Management
Business intelligence and MIS
Business intelligence and MIS
Business intelligence and MIS

• Improved Management Processes.

• Planning, controlling, measuring and/or
applying changes that results in increased
revenues and reduced costs.
• Improved business operations.
• Intelligent prediction of future.
Business intelligence and MIS
A Support to Management
• The management process is executed through a variety of
decisions taken at each step of planning, organizing, staffing,
directing coordinating and control.
• If the management is able to spell out the decisions required to
be taken, the MIS can be designed suitably.
• The decisions required to be taken in these steps are tabulated in
Table below.
A Support to Management
Steps in Decision
Management
Planning A selection from various alternatives -
strategies, resources, methods, etc.
Organization A selection of a combination out of several
combinations of the goals, people, resources,
method and authority.

Staffing Providing a proper manpower complement.

Directing Choosing a method from the various methods

of directing the efforts in the organization.
Coordinating Choice of the tools and the techniques for
coordinating the efforts for optimum results.
Controlling A selection of the exceptional conditions and
the decision guidelines
A Support to Management
• The objective of the MIS is to provide information for a
decision support in the process of management.
• It should help in such a way that the business goals are
achieved in the most efficient manner.
• Since the decision making is not restricted to a
particular level, the MIS is expected to support all the
levels of the management in conducting the business
operations.
• Unless the MIS becomes a management aid, it is not
useful to the organization.
Management Effectiveness and MIS
1. MIS is management oriented:
• The design of MIS starts with an appraisal of the
information needs of the management.
• The system is usually designed from top to bottom.
• However, this does not mean that MIS fulfills the
information needs of top management only.
• It only implies that information needs of the top
management will serve as a basis for assessment of
information needs of lower level managers.
• In every case the system should be designed to cater to
the information needs of all levels of management.
Management Effectiveness and MIS
2. MIS is developed under the direction of
management:
• Because of management orientation of MIS, it is
imperative that, management of an organization
actively directs the development and
establishment of the MIS in an organization.
• It is rare to find an MIS where the manager
himself, or a high level representative of his
department, is not spending a good deal of time
in the system design.
Management Effectiveness and MIS
It is not a onetime involvement, because continued review
and participation are necessary to ensure that the
implemented system meets the specifications of the
system that was designed.
Therefore, management of the organization should not
only take active part in the development of MIS but also
play a major role in effecting subsequent changes in the
system so that it serves the information needs of the
management.
Management Effectiveness and MIS
3. MIS is an integrated system:
• MIS is an integrated system which blends information from
several operational areas to serve the information needs of the
management more effectively.
• It takes a comprehensive view of the interlocking sub-systems
which operate within an organization.
• For example, in order to develop an effective production
scheduling system, the management must balance such factors as
(a) production capacity, (b) work force (c) inventory levels (d)
nature of the product (e) demand pattern of the product (f) capital
requirements and (g) marketing network.
• A system that ignores one of these elements will not provide an
efficient production schedule.
Management Effectiveness and MIS
4. Common data flows:
• MIS seeks to avoid duplication and redundancy in data
collection, storage and dissemination of information.
• The designers of MIS are aware that a few key source
documents account for much of the information flow
and affect many functional areas.
• The concept of common data flow requires building and
using master files, for recording and reporting
information.
• This concept supports several of the basic principles of
system analysis avoiding duplication, combining
similar functions and simplifying operations wherever
possible.
Management Effectiveness and MIS
5. MIS is based upon future needs of the business:
• MIS is designed to serve the objectives and
needs of the business in an effective manner.
• The MIS designer must avoid the possibility of
system obsolescence before the system gets into
operation.
• If MIS is designed after taking care of future
information needs of the business, there remains
little chance of its becoming obsolete.
Management Effectiveness and MIS
6. MIS is composed of sub-systems:
• MIS although viewed as a single entity, must be
broken down into sub-systems.
• The breakdown of MIS into meaningful sub­
systems sets the stage for a prioritized
implementation.
• It also enables the MIS designer to focus on
manageable entities that can be assigned and
computerized by selected systems and
programming teams.
Management Effectiveness and MIS
7. MIS requires flexibility:
• MIS is designed to fulfill the information needs of
management for future decision making.
• Despite a careful analysis of future information needs
of the management, it is impossible to predict
accurately all the events of three to five years ahead.
• This is true in most industries and especially in those
industries with rapid changing patterns.
• Therefore, the MIS should be designed in such a
manner so as to permit appropriate changes in future, if
the MIS does not allow any modification, it is bound to
become obsolete very soon.
Management Effectiveness and MIS
8. Distributed data processing:
• In case of companies having geographical network of
sales offices, distribution points, manufacturing plants,
divisions and subdivisions.
• Some form of distributed data processing is necessary,
since some of these units may be operated in a
completely independent fashion.
• The purpose of distributed data processing is to ensure
that information is placed in the hands of those who
need it at the time when they need it.
• However, the sub-systems designed for distributed data
processing should be considered as the integral parts of
the MIS of the company.
Management Effectiveness and MIS
9. MIS is mostly computerized:
• Now-a-days, all activities of MIS viz., data collection,
data processing and data retrieval are accomplished
through electronic media.
• The use of computer assures accuracy and consistency
in processing data and speeds up dissemination of
information.
Organization as a System
• The notion of "Organization as Systems" refers
to an approach to conceptualizing organizations
as systems, based on systems thinking and
theory, in order to give clarity and perspective
to studying and analyzing organizations.
• ​The term system, implies an orderly
arrangement, an interrelationship of parts; in the
arrangement, every part has a place and plays a
definite role, and they (the parts) are hound by
interaction.
Organization as a System
• A system has well-defined boundaries - the limits that
identify its components, processes, and
interrelationships when it interfaces with other
system(s) external to it, or its environment.
• To understand the functioning of a system you have to
analyze and identify its core parts (subsystems) and
understand how these various subsystems enter into
specific relationships in the fulfillment of the system's
intended mission/goals.
Organization as a System
• Other subsystems built around the production subsystem.
• ​Production Subsystems - These are the components that
transform inputs into outputs such as goods and services.
• A Production system may comprise any method used in
industry to create goods and services from various
resources - labor, materials, equipment and space (facility,
land, etc).
• All production systems when viewed from the most
abstract level, might be said to be "transformation
processes" - processes that transform/convert resources
into useful goods and services.
Organization as a System
• Supportive Subsystem - These
perform acquisition and distribution functions within the
organization.
• Acquisition activities include securing resources such as
employees and raw materials from the external
environment.
• Human resources and purchasing functions
would typically be included in this group.
• Distribution activities encompass efforts to transfer the
products or services outside of the organization.
• Supportive subsystems of distribution type includes
sales and marketing functions, public relations
departments and lobbying efforts.
Organization as a System
• Maintenance Subsystem - These systems
maintain the social involvement of
employees in the organization.
• Activities in this group includes providing
employee benefits and compensation that
motivate workers, creating favorable work
conditions, empowering employees, and
other forms of satisfying human needs.
Organization as a System
• Adaptive Subsystems - These subsystems serve to
gather information about problems and opportunities in
the environment then respond with innovation that
allow the organization to adapt.
• A firm's research lab and product development
departments would be part of an adaptive subsystem.
• Managerial Subsystems - These direct the activities of
other subsystems in the organization.
• These management systems set goals and policies,
allocate resources, settle disputes, and generally work to
facilitate the efficiency of the organization.
Decision Making
• Decision making in management is the process
of making a choice between two or more
options.
• This involves evaluating the pros and cons of
various choices and choosing the best option to
achieve a desired outcome.
• In management, decision making is about acting
in a way that meets organizational goals and
objectives.
Decision Making
• For example, a business manager may decide to invest
in marketing to attract new customers.
• This decision could involve analyzing the costs, benefits, and
risks involved with each possible course of action and
choosing the best course of action for the organization.
• Management decision is an important part of managing any
organization.
• It allows managers to set goals and figure out what actions are
needed to meet those goals, and evaluate whether those actions
are working as intended.
• Management decision meaning refers to managers guiding
their organizations down the right path toward success.
Decision Making
Characteristics of Decision Making
1. Rational-thinking
• Rational thinking is a process in
managerial decision making that helps us
to make sound decisions.
• It involves systematically analyzing
options and choosing the best course of
action based on logic and evidence.
• To think rationally, we must first identify
our goals and objectives.
Decision Making
• 2. Process
• Many people view decision making as a cold,
rational process.
• However, there is much more to it than simply
choosing the most logical option.
• In reality, decision making is influenced by a
variety of factors, both conscious and
unconscious.
• For example, our emotions play a role in the
decisions we make, as do our personal values
and beliefs.
Decision Making
3. Selective
• A key characteristic of managerial decision
making is that it is selective.
• That is, deciding involves picking the best
options.
• There are many factors that influence what gets
selected, including the clarity of the options, the
relevance of the criteria, and weighing the
various factors.
Decision Making
4. Purposive
• A purposive approach to decision making
is one that is based on the specific goals
and objectives of the individual or
organization.
• This type of decision making takes into
account the desired outcome of the
decision, and considers all of the available
options in order to select the best possible
course of action.
Decision Making
5. Positive
• Decision making process in management is
an essential skill in any area of life,
whether you're choosing what to eat for
lunch or deciding which company to work
for.
• While there are many different approaches
to decision making, there are some
common characteristics that tend to lead to
positive outcomes.
Decision Making
6. Commitment
• If you want to make successful decisions, it
is crucial that you have commitment.
• This means having the drive to see the
decision through, even when it gets tough.
• It also means being able to defend your
decision to others, even if they do not agree
with you.
Decision Making
7. Evaluation
• Evaluation is a key characteristic of good
decision making.
• This involves considering all of the options and
weighing their pros and cons before making a
choice.
• It is important to be as objective as possible
when evaluating the different options, and to
look at the situation from all angles.
Decision Making
• What is Decision Making Process?
• Decision making in operations management is the
process of choosing among alternatives.
• It involves considering various factors, assessing the
costs and benefits of each option, and making a
decision that takes these factors into account.
• The goal of any decision-making process is to reach a
conclusion that is as informed as possible given the
available information.
• Also, check to avail PMP Certification Online to grow
ahead in the future.
Decision Making
Decision Making Styles
1. Psychological
• Psychological decision making styles tend
to be more creative and flexible, as they
allow for gut instinct to play a role in the
process.
• However, this style can also lead to
impulsive decisions that are not well
thought out.
Decision Making Styles
• 2. Cognitive
• Among the many decision-making styles, one of
the most popular is the cognitive style.
• This involves making decisions based on logic
and reasoning, rather than intuition or emotion.
• When using cognitive style, it is important to
consider all of the available information before
coming to a conclusion.
• This can sometimes mean taking a long time to
make a decision, but it also means that you are
more likely to make a sensible choice.
Decision Making Styles
3. Normative
• Normative decision making in project
management is a style of decision making that is
based on sticking to established rules and
procedures.
• This type of decision making is often used in
situations where there is little time for
deliberation and the stakes are low.
Techniques of Decision Making
1. SWOT Analysis
• One popular decision making a step in
management is known as SWOT analysis.
• This involves identifying the strengths,
weaknesses, opportunities, and threats
associated with a particular decision.
• By taking all of these factors into account,
individuals can make informed and
effective choices.
Techniques of Decision Making
2. Marginal Analysis
• A popular technique is known as marginal analysis.
• It involves weighing the costs and benefits of each
option to choose the one that will create the greatest
value.
Strengths
• Marginal analysis forces you to think beyond the
immediate consequences of your actions.
• It can help you make better decisions because you will
consider how your actions affect other areas of your
life.
Techniques of Decision Making
Weaknesses
• It is time-consuming.
• If you're trying to make a decision quickly, thinking about all the
indirect costs and benefits can slow you down.
• This analysis can sometimes lead to paralysis by analysis.
• It happens when people get so caught up in thinking about all the
possible costs and benefits that they never actually make a
decision.
Opportunities
• Marginal analysis is that it can help you to identify opportunities
that you might otherwise miss. It is because the process of
thinking about indirect costs and benefits helps you see the world
differently.
Techniques of Decision Making
3. Pareto Analysis
• Pareto analysis is a decision-making technique that can be used
to identify the most important factors in a given situation. Named
after Italian economist Vilfredo Pareto, the technique is based on
the principle that 20% of the causes will produce 80% of the
results.
Strengths
• It is relatively simple to understand and use, meaning that it can
be applied in a variety of settings with minimal training. Pareto
Analysis is an objective method - it relies on data rather than
subjective opinion - which increases its credibility in the eyes of
decision-makers. The analysis is flexible and can be adapted to a
wide range of problems and organizations.
Techniques of Decision Making
Weaknesses
• One issue is that the criteria used to evaluate the options can be subjective,
and it can lead to different people coming to different conclusions based on
the same data. Another potential problem is that all options may not be known
when the decision matrix is created, leading to inaccurate or incomplete
analysis.
• Decision matrices can be time-consuming to create and require a significant
amount of data, making them impractical for use in situations where time is
limited or data is scarce.
Threats
• The process of creating a matrix can be time-consuming and may require
input from multiple stakeholders.
• The results of a decision matrix are only as good as the data that goes into it,
and the final results will be misleading if the assumptions or inputs are
inaccurate.
• Decision matrices can create a false sense of precision, leading to
overconfidence in the results.
Types of Decision Making in Management
1. Routine and Basic Decision-making
• Some decisions are more complex and require more
thought.
• For instance, you may need to decide what to wear to a
job interview or how to handle a difficult customer at
work.
• In these situations, it is important to take the time to
carefully consider your options before making a
decision.
• Basic decision-making skills involve considering the
potential consequences of each option and choosing the
one that is most likely to lead to the desired outcome.
Types of Decision Making in Management
2. Personal and Organizational Decision-making
• Decision making is a key component of both personal
and organizational success.
• When making decisions, it is important to consider all
of the potential options and their consequences.
• In some cases, there may be a clear best choice, while
in others, the decision may be more difficult.
• However, the ability to make sound decisions is
essential for both individuals and organizations.
Types of Decision Making in Management
3. Individual and Group Decision-making
• Individual decision making process in project
management typically occurs when the stakes are low
and the impact will be limited to a single person.
• Group decision making is necessary when the stakes are
high or the impact will be felt by multiple people.
• In general, group decision making is more effective
than individual decision making because it allows for a
greater diversity of perspectives and more thorough
deliberation.
Types of Decision Making in Management
• 4. Programmed and Non-Programmed Decision-making
• Non-programmed decisions making in operation management
are unique and not repetitive.
• Typically, they are made in response to an unforeseen event or
opportunity. Programmed decisions, on the other hand, are
routine and often based on established rules or procedures.
• Because they are more predictable, programmed decisions are
typically less risky and easier to make.
• However, non-programmed decisions often require more
creativity and judgment, and can be more difficult to reverse if
they turn out to be wrong.
Types of Decision Making in Management
5. Policy and Operating Decision-making
• Policy and operating decision making are two important
aspects of any business.
• Policy decisions are made at the strategic level and
focus on long-term issues, such as the overall direction
of the company.
• Operating decisions, on the other hand, are made at the
operational level and focus on short-term issues.
• Such as which products to produce and how to staff the
production process.
Business intelligence and MIS
• Business intelligence transforms ,integrate and enhance data into value added
information.
• To deliver reliable, consistent ,high-quality information to enable stakeholders
to make better decisions with applied technologies and tools.
• Characteristics of BIS :
1. It is created by procuring data and information for use in decision-making.
2. It is a combination of skills, processes, technologies, applications and
practices.
3. It contains background data along with the reporting tools.
4. It is an extension of Executive Support System or Executive Information
System.
5. It collects, integrates, stores, analyzes, and provides access to business
information.
6. It is an environment in which business users get reliable, secure, consistent
and timely information.
Business intelligence and MIS
Business intelligence and MIS
• Transactions-TP’s
• ERP - Enterprise Resource Planning
• SCM - Supply Chain Management
• CRM - Customer Relationship
Management
Business intelligence and MIS
Business intelligence and MIS
Business intelligence and MIS

• Improved Management Processes.

• Planning, controlling, measuring and/or
applying changes that results in increased
revenues and reduced costs.
• Improved business operations.
• Intelligent prediction of future.
Business intelligence and MIS