Académique Documents
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Tutorial
for
Management Information
Systems
The concept of the MIS has evolved over a period of time comprising many
different facets of the organizational function. MIS is a necessity of all the
organizations. The initial concept of MIS was to process data from the
organization and present it in the for of reports at regular intervals. The system
was largely capable of handling the data from collection to processing. It was
more impersonal, requiring each individual to pick and choose the processed
data and use it for his requirements. This concept was further modified when a
distinction was made between data and information. The information is a product
of an analysis of data. This concept is similar to a raw material and the finished
product. What are needed are information and not a mass of data. However, the
data can be analyzed in a number of ways, producing different shades and
specifications of the information as a product. It was, therefore, demanded that
the system concept be an individual- oriented, as each individual may have a
different orientation. Towards the information. This concept was further modified,
that the system should present information in such a form and format that it
creates an impact on its user, provoking a decision or an investigation. It was
Page No. 2/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Was necessary to evolve in the organization. The concept remained valid till and
to the extent that the norm for an exception remained true and effective. Since
the environment turns competitive and is ever changing, fixation of the norm for
an exception becomes ka futile exercise at least for the people in the higher
echelons of the organization. The concept was then evolved that the system
should be capable of handling a need based exception reporting. This need
maybe either of an individual or a group of people. This called for keeping all
data together in such a form that it can be accessed by anybody and
can be processed to suit his needs. The concept is that the data is one but it can
be viewed
by different individuals in different ways. This gave rise to the concept of DA
.ABASE, and the MIS based on the DATABASE proved much more effective.
Over a period of time, when these conceptual developments were taking place,
the concept of the end user computing using multiple databases emerged. This
concept brought a fundamental charge in MIS. The change was decentralization
Page No. 3/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
The concept of MIS gives high regard to the individual and his ability to use
information. An MIS gives information through data analysis. While analyzing the
data, it relies on many academic disciplines. These include the theories,
principles and concepts from the Management Science, Psychology and Human
Behavior, making the MID more effective and useful. These academic disciplines
are used in designing the MIS, evolving the decision support tools for modeling
and decision - making.
The foundation of MIS is the principles of management and if its practices. MIS
uses the concept of management Information System can be evolved for a
specific objective if it is evolved after systematic planning and design. It calls for
an analysis of a business, management views and policies, organization culture
Page No. 4/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
The MIS, therefore, is a dynamic concept subject to change, time and again, with
a change in the business management process. It continuously interacts with the
internal and the external environment of the business and provides a corrective
mechanism in the
system so that the change needs of information are with effectively. The MIS,
therefore, is a dynamic design, the primary objectively. The MIS, therefore, is a
dynamic design the primary objective of which is to the information the
information
and
it is developed
considering
the
Thought there are a number of definitions, all of them converge on one single
point, i.e., the MIS is a system to support the decision making function in the
organization. The difference lies in defining the elements of the MIS. However, in
today.s world MIS a computerized .business processing system generating
information for the people in the organization to meet the information needs
decision making to achieve the corporate objective of the organization. In any
organization, small or big, a major portion of the time goes in data collection,
processing, documenting it to the people. Hence, a major portion of the
overheads goes into this kind of unproductive work in the organization. Every
individual in an organization is continuously looking for some information which is
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 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,
Page No. 11/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Since the 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 support, the management of
marking, finance, production and personnel become more efficient. The tracking
and monitoring of the functional targets becomes easy. The functional, managers
are informed about the progress, achievements and shortfalls in the probable
Page No. 12/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
The MIS creates another impact in the organization which relates to the
understanding of the business itself. The MIS begins with the definition of a data
entity and its attributes. It uses a dictionary if data, entity and attributes,
respectively, designed for information generation in the organization. Since all
the information system use the dictionary, there is common understanding of
terms and terminology in the organization brining clarity in the communication
and a similar understanding an even of the organization.
The MIS calls for a systemization of the business operation for an affective
system design. A well designed system with a focus on the manger makes an
impact on the managerial efficiency. The fund of information motivates an
enlightened manger to use a variety of tools of the management. It helps him to
Page No. 13/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Since the MIS works on the basic systems such as transaction processing and
databases, the drudgery of the clerical work is transferred to the computerized
system, relieving the human mind for better work. It will be observed that a lot of
manpower is engaged in this activity in the organization. It you study the
individual.s time utilization and its application; you will find that seventy per cent
of the time is spent in recording, searching, processing and communication. This
is a large overhead in the organization. The MIS has a direct impact on this
overhead. It creates an information- based work culture in the organization.
Translating the real concept of the MIS into reality is technically, an infeasible
proposition unless computers are used. The MIS relies heavily on the hardware
The MIS uses the communication theory in a significant manner. The principle of
feedback is used while designing analysis. Systems. While designing the report
format, attention is paid to avoid noise and distortions in the communication
process. The MIS further relies heavily on the decision methodology. It uses
different mathematical techniques to handle the situation of decision making uses
Page No. 18/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Every person in the organization is a user of the MIS. The people in the
organization operate at all levels in the hierarchy. A typical user is a clerk, an
assistant, an officer, an executive or a manager. Each of them has a specific task
and a role to play in the management of business. The MIS caters to the needs
of all persons.
Page No. 19/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
It is observed that at lower level, is a sense of insecurity. As the MIS takes away
the drudgery of search, collection, writing and reporting the data, the work
vacuum, so created is not easily filled, thus creating a sense of insecurity. To
some extent the importance of the person is also lost, giving rise to a fear of nonrecognition in the organization. At the level of an officer and an executive, the
MIS does the job the of data manipulation and integration. It analyses the data in
a predetermined manner. This means that the knowledge of business is
transferred from an individual to the MIS and is made available to all in the
organization. This change arising out of the MIS creates a sense of being
neglected for knowledge, information and advice. The psychological impact is
larger if the person is not able to cope up with this change by expanding or
enriching the job and the position held by him.
The manager holding a position in the top or middle management suffers from
fear of challenge and exposure. The MIS makes these competitors more
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Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
The positive effects on the individuals at all levels are that they have become
more effective operators. The time and energy which was spent earlier in
unproductive work is now applied for a productive work. Some are able to use
their analytical skills and knowledge with the in formation support for improving
their position in the organization. Managers, having improved their decision .
making ability, are able to handle the complex situations with relative ease. Some
are benefited by improving their performance and being held in high esteem by
the higher management.
The enterprising managers are able to use the systems and the models for trying
out a Number of alternatives in a given problem situation. The impact of the MIS
on people Of the organization is phenomenal as it has made the same body of
people collectively more effective and productive.
Through the MIS, the information can be used as a strategic weapon to counter
the threats
to business, make business more competitive, and bring about the organizational
transformation through integration. A good MIS also makes an organization
seamless by removing all the communication barriers.
information
system
(MIS).
The
management
needs
full
information before taking any decision. good decisions can minimize costs and
optimize results. Management information system can be helpful to the
management in undertaking management decisions smoothly and effectively.
Management information system can be analyzed thus:
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; and 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.
Information systems differ in their business needs and the information varies
depending upon different levels in organization. Information system can be
broadly categorized into following:
Transaction processing system
Management Information System
Decision support system
The information needs are different at different organizational levels. Accordingly
the information can be categorized into following:
Strategic information
Managerial information
Operational information.
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Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Data Gathering
The process of collecting required data from external and internal sources
Data Entry
The collected data is imputed and stored in the database. Database is the core
component used in information processing.
Data Transformation
The data stored in the database is transformed into useful information through
the application of computer programs and judgments made by the technical
support staff and the end users.
Data Utilization
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Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
CLASSIFICATION OF DSS
Model-driven DSS
Communication-driven DSS
Data-driven DSS
Document-driven DSS
Knowledge-driven DSS
technologies
to
specific
practical
situation.
12) develops and explains solutions for an identified need which address all the
information processes.
Page No. 36/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Planning Levels
Functional-level:
actions
taken
by
managers
in
departments
of
Planning Process
6-steps to Building a Personal Financial Plan
These 6-steps are designed to help you get started on the road to financial security. By
following the six steps, your journey will take you from where you are now to where you
want to be for the future.
Setting goals and objectives is the first step of any financial planning process - if you do
not know where you are going, how can you know when you'll get there, or even decide
which route to take? Setting goals and objectives is the foundation of any sound financial
plan.
No matter where you are heading, you need to assess where you are now, and what you
already have in place for the journey. Data gathering will ensure that your personal
documents are up-to-date and that you know your current financial situation.
Heading in a general direction won't guarantee success in reaching your final destination.
Before heading out on your journey, do your analysis and find solutions. This strategy
will assist you in reaching your stated goals and will provide you with a roadmap to help
you achieve these goals.
Your financial plan should confirm that your goals are achievable and appropriate
recommendations will help define what you need to do to ensure that you reach these
goals.
A financial plan is only helpful if the recommendations are put into action. Implementing
strategies will assure you reach your destination.
Finally, follow-up and annual reviews are critical to ensuring you maintain a clear focus
in order to succeed.
1. Setting Goals and Objectives
Give some thought to your financial goals. Some may be short-term in nature, others
long-term. Assign each one a time frame and put them in order of importance to you.
These goals are the building blocks to any sound financial plan. Our financial advisors
can assist you in identifying goals and establishing time frames.
2. Data Gathering
Page No. 38/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
OPERATIONAL PLANNING
INTERMEDIATE PLANNING
CONTINGENCY PLANNING
STRATEGIC PLANNING
one
of
the
managerial
functions
like planning, organizing, staffing and directing. It is an important function because it helps to
check the errors and to take the corrective action so that deviation from standards are
minimized and stated goals of the organization are achieved in a desired manner.
Characteristics
Types of Controls
Areas of Control
Physical resources inventory management, quality control, and equipment control.
Human resourcesselection and placement, training and development, performance
appraisal, and compensation.
Information resourcessales and marketing forecasts, environmental analysis, public
relations, production scheduling, and economic forecasting.
Financial resourcesmanaging capital funds and cash flow, collection and payment of
debts.
Page No. 43/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
Extranet
An extranet is a private network that uses Internet technology and the public
telecommunication system to securely share part of a business's information or operations
with suppliers, vendors, partners, customers, or other businesses. An extranet can be
viewed as part of a company's intranet that is extended to users outside the company. It
has also been described as a "state of mind" in which the Internet is perceived as a way to
do business with other companies as well as to sell products to customers.
An extranet requires security and privacy. These can include firewall server management,
the issuance and use of digital certificates or similar means of user authentication,
encryption of messages, and the use of virtual private networks (VPNs)
that tunnel through the public network.
Data
Data is distinct pieces of information, usually formatted in a special way. All software is
divided into two general categories: data and programs. Programs are collections
of instructions for manipulating data. Data can exist in a variety of forms -- as numbers
Page No. 46/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
A database management system is a piece of software that provides services for accessing
a database, while maintaining all the required features of the data. Commercially
available Database management systems in the market are dbase, FoxPro, IMS and
Oracle, MySQL, SQL Servers and DB2 etc.
These systems allow users to create update, and extract information from their databases.
Compared to a manual filing system, the biggest advantages to a computerized database
system are speed, accuracy, and' accessibility.
Advantages of DBMS
Page No. 47/57
Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
1. Controlling Redundancy: In file system, each application has its own private
files, which cannot be shared between multiple applications. 1:his can often lead to
considerable redundancy in the stored data, which results in wastage of storage space. By
having centralized database most of this can be avoided. It is not possible that all
redundancy should be eliminated. Sometimes there are sound business and technical
reasons for maintaining multiple copies of the same data. In a database system, however
this redundancy can be controlled.
For example: In case of college database, there may be the number of applications
like General Office, Library, Account Office, Hostel etc. Each of these applications may
maintain the following information into own private file applications:
It is clear from the above file systems, that there is some common data of the student
which has to be mentioned in each application, like Rollno, Name, Class, Phone_No~
Address etc. This will cause the problem of redundancy which results in wastage of
storage space and difficult to maintain, but in case of centralized database, data can be
shared by number of applications and the whole college can maintain its computerized
data with the following database:
It is clear in the above database that Rollno, Name, Class, Father_Name, Address,
Phone_No, Date_of_birth which are stored repeatedly in file system in each application,
need not be stored repeatedly in case of database, because every other application can
access this information by joining of relations on the basis of common column i.e.
Rollno. Suppose any user of Library system need the Name, Address of any particular
student and by joining of Library and General Office relations on the basis of column
Rollno he/she can easily retrieve this information.
Thus, we can say that centralized system of DBMS reduces the redundancy of data to
great extent but cannot eliminate the redundancy because RollNo is still repeated in all
the relations.
2. Integrity can be enforced: Integrity of data means that data in database is always
accurate, such that incorrect information cannot be stored in database. In order to
maintain the integrity of data, some integrity constraints are enforced on the database. A
DBMS should provide capabilities for defining and enforcing the constraints.
For Example: Let us consider the case of college database and suppose that college
having only BTech, MTech, MSc, BCA, BBA and BCOM classes. But if a \.,ser enters
the class MCA, then this incorrect information must not be stored in database and must
be prompted that this is an invalid data entry. In order to enforce this, the integrity
constraint must be applied to the class attribute of the student entity. But, in case of file
system tins constraint must be enforced on all the application separately (because all
applications have a class field).
In case of DBMS, this integrity constraint is applied only once on the class field of the
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Dr. Vineet Kumar
Institute of Management Sciences
University of Lucknow.
be
or
or
be
Top-Tier - This tier is the front-end client layer. This layer hold the query tools and
reporting tool, analysis tools and data mining tools.
Supply Chain Management,
The supply chain starts with firms extracting raw materials from the ground such as
iron, oil, wood, and food- and then selling them to raw material manufactures. These
companies, acting on purchase orders and specifications they have received from
component manufacturers, turn the raw materials into materials that are usable by these
customers. Now what is supply chain management? SCM is management of material and
information flow in a supply chain to provide the highest degree of customer satisfaction
at the lowest possible cost.
Importance of SCM
Many firms, thought, have discovered value, long term benefits from their supply chain
management efforts. Firms with large system inventories, many suppliers, complex
product assemblies, and highly valued customers with large purchasing budgets have the
most to gain from the practice of supply chain management. For these firms, even
moderate supply chain management success can mean lower purchasing and inventory
costs, better product quality, and higher levels of customer service and sales. Purchasing
inventory, and transportation cost saving is quite sizable for firms utilizing supply chain
management strategies. Firms must realize that their management efforts can start small
for instance, with just one key supplierand build through time to include more supply
chain participants- such as other important suppliers, key customers, and shippers- and,
eventually, second-tier suppliers and customers. So why is this integration activity
important? As alluded to earlier, when a firm, its customers, and its suppliers all know
each others future plans, the planning process is easier and more accurate.
Useful model of supply chain operations
In this useful model identifies four categories of operations. We will use the following
four categories to organize and discuss supply chain operations, plan, source, make,
deliver.
Procurement Management
In order to understand procurement documents, it is important to understand the
term Procurement Management.
Procurement is the purchase of goods and services at the best possible price to meet a
purchaser's demand in terms of quantity, quality, dimensions and site.
The procurement cycle in businesses work, which follows the below steps: