MANAGEMENT INFORMATION SYSTEM(MIS) History Before the concept of management information systems was created, computer scientists were

just programmers creating applications for science and math calculations. As computer usage evolved in fields of business and data management, software applications were needed to process nonscientific data. A field of study would be needed to bridge the gap between computer programmers and the business world to create information-based applications for business and networks. Creation of the Management Information Systems Field (1970) With the advent of computer programs for business applications, it became apparent that the communication gap that existed between computer programmers and business people had to be solved. Business people wanted programmers to come up with the ultimate solution for their problems and programmers had a hard time explaining to management what was possible and what was not, technically, possible. The solution was to design a course of study which merged information technology, business and computer programming. This field was called, Management Information Systems (MIS). The idea was to create a workforce who could bridge the communication and technical gaps between management and computer programmers. The first courses were taught in as business courses in select colleges in America. The courses started off as electives in the area of business. As the 1970s closed, colleges and business schools would create full four-year programs designed for studies in the field of information systems. The world is living in the Age of Information. Computers have assisted countries into transforming themselves from the industrial revolution into the information age by merging concepts through various management information system applications. Definition of Management Information System: A management information system (MIS) is a computer-based system that provides the information necessary to manage an organization effectively. An MIS should be designed to enhance communication among employees, provide an objective system for recording information and support the organization's strategic goals and direction. It is an organized approach to the study of the information needs of an organization's management at every level in making operational, tactical, and strategic decisions. Its objective is to design and implement procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and timely manner.

ROLE OF THE MANAGEMENT INFORMATION SYSTEM The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation. The MIS helps the middle management in short them planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top 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 vital role in the management, administration and operations of an organization. Objectives of MIS: Managers play a key role in any organization. They are responsible for taking decisions appropriate to the need of the market. Information systems have become the main tool used

by managers in decision making. Managers perceive information as the driving force to achieve success in any business. Hence there is a need for MIS as: Support of its business process and operations Support of decision making by its employees and managers Support of its strategies for competitive advantage-Gaining a strategic advantage The major roles of the business applications of a Management Information System may be represented in the pyramid form as shown below:

Characteristics of MIS: MIS is mainly designed to take care of the needs of the managers in the organization. MIS aids in integrating the information generated by various departments of the organization. MIS helps in identifying a proper mechanism of storage of data. MIS also helps in establishing mechanism to eliminate redundancies in data. MIS as a system can be broken down into sub systems. The role and significance of MIS in business and its classification is explained. It is possible to understand the various phases of development in MIS based on the type of system required in any organization. Types of Information Systems Transaction-Processing Systems

Transaction-processing systems are designed to handle a large volume of routine, recurring transactions. They were first introduced in the 1960s with the advent of mainframe computers. Transaction-processing systems are used widely today. Banks use them to record deposits and payments into accounts. Supermarkets use them to record sales and track inventory. Managers often use these systems to deal with such tasks as payroll, customer billing and payments to suppliers.

Operations Information Systems

Operations information systems were introduced after transaction-processing systems. An operations information system gathers comprehensive data, organizes it and summarizes it in a form that is useful for managers. These types of systems access data from a transaction-processing system and organize it into a usable form. Managers use operations information systems to obtain sales, inventory, accounting and other performance-related information.

Decision Support Systems (DSS)

A DSS is an interactive computer system that can be used by managers without help from computer specialists. A DSS provides managers with the necessary information to make informed decisions. A DSS has three fundamental components: database management system (DBMS), which stores large amounts of data relevant to problems the DSS has been designed to tackle; model-based management system (MBMS), which transforms data from the DBMS into information that is useful in decision-making; and dialog generation and management system (DGMS), which provides a user-friendly interface between the system and the managers who do not have extensive computer training.

Expert Systems and Artificial Intelligence

Expert systems and artificial intelligence use human knowledge captured in a computer to solve problems that ordinarily need human expertise. Mimicking human expertise and intelligence requires the computer to do the following: recognize, formulate and solve a problem; explain solutions; and learn from experience. These systems explain the logic of their advice to the user; hence, in addition to solving problems they also can serve as a teacher. They use flexible thinking processes and can accommodate new knowledge.

Considerations

A potential problem with relying on electronic communication and processing of information is the loss of the vital human element. Sometimes, because of the complexity of information, an MIS report cannot effectively summarize it. Very rich information is needed to coordinate and run an enterprise, and certain classes of information cannot be quantified. For example, it might be wrong to evaluate an employee's performance solely based on numbers generated by an MIS. Numbers can indicate a performance problem, but a face-to-face meeting is necessary to discuss the nature of the problem.

Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, and the typical systems are identified as follows:

Accounting management information systems: All accounting reports are shared

by all levels of accounting managers. Financial management information systems: The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department. Manufacturing management information systems: More than any functional area, operations have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factory. Thus there is no need for warehousing. Marketing management information systems: A marketing management information system supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example. Human resources management information systems: Human resources management information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuable role in ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.

1. mproves personal efficiency 2. Expedites problem solving(speed up the progress of problems solving in an organization) 3. Facilitates interpersonal communication 4. Promotes learning or training 5. Increases organizational control 6. Generates new evidence in support of a decision 7. Creates a competitive advantage over competition 8. Encourages exploration and discovery on the part of the decision maker 9. Reveals new approaches to thinking about the problem space 10. Helps automate the Managerial processes. Disadvantages of management information systemFrom your syllabus 1. Cost of setting up and maintaining (establishment, maintenance and security)2. Cost of training (human resource development)3. Human error From the internet Unemployment - While information technology may have streamlined the business process it hasalso created job redundancies, downsizing and outsourcing.This means that a lot of lower and middle level jobs have been done away with causing more people to become unemployed . Privacy - Though information technology may have made communication quicker, easier andmore convenient, it has also bought along privacy issues.From cell phone signal interceptions to email hacking, people are now worried about their once private information becoming public knowledge. Lack of job security Industry experts believe that the internet has made job security a big issueas since technology keeps on changing with each day.

This means that one has to be in a constant learning mode, if he or she wishes for their job tobe secure. Dominant culture While information technology may have made the world a global village, ithas also contributed to one culture dominating another weaker one.For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else. Expensive Installing a management information system can be expensive for a company. Information technology---while cheaper today than previous years---can represent a significant expense, especially for larger organizations. These systems may also require ongoing support or upgrade fees, which can represent future fixed cash outflows. Companies must create a budget to pay for these items to ensure the information system stays current with business technology