MANAGEMENT INFORMATION SYSTEM

(MIS)

MIS
Is a system consisting of people, machines,

procedures, databases and data models, as its elements.

The system gathers data from the external and

internal sources of an organization; processes it and supplies information to assist managers in the process of decision making.
It is not a single system, rather it is a integrated

system where parts (sub-systems ) fit into an overall design.

Concept
Management Information System is acronym of

three words, viz.,

Management

Information and
Systems

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Management
According to Koontz Management is the art of

getting things done through and with the people in formally organized groups.
Managerial Functions
Planning Organizing Staffing Directing Controlling
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Information
Information is data that is processed and is

presented in a form which assists decision makers.

Data

Processing

Information

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Informational needs of different management levels

Top ManagementUnstructured, non programmed, Futuristic, Approximate, External

Operational management-Structured, Programmed, Historical, Exact, Internal

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System
A system may be defined as a set of elements

which are joined together to achieve a common objective.

Every system is said to be composed of sub-

systems.
The set of elements for a system may be

understood as Input, Process and Output.

Input

Process

Output

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 When

feedback and control elements are attached to any system, to make it self-regulating and self-monitoring, it is known as a cybernetic system.

Input

Process

Output

Feedback/Cont rol

Typology
Main parts of Typology of MIS are given

below:
Transaction Processing System (TPS)

Decision Support System (DSS)

Executive Support System (ESS)

Business Expert System (BES)

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 1.Transaction

Processing (TPS):

System

TPS processes the transactions and produces reports. In business, it may be probable that 1000 transaction may be made. So, TPS automates this process. You see barcode scanner. With this, we can just scrutinize the code of product and sale entry without human intervention is recorded by computer system at any point of sale.
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 2.Decision

Support System (DSS):

It is the system which is helpful for decision making. DSS is not just used in planning but with this we also analyze the information. Salary information system is MIS because it provides the information of different employees' salaries. But DSS provides advance information like in which scheme, the user gets more tax rebates. In DSS, there are different types of formulas which are useful for calculation of this.
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 3.Executive Support System (ESS): ESS is used for specific requirement of manager at top level. ESS addresses not routine decisions requiring judgment and evaluation 4.Business Expert System (BES): This system creates artificial intelligence of human being and suggests different decision for business.

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Characteristics of an effective Management Information System

I. Management-oriented

II. Management directed

III. Integrated I V. Common database

V. Heavy planning-element
VI. Sub System concept VII. User friendly/Flexibility

VIII. Computerized
IX. Information as a resource
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Structure of MIS-Various Approaches

Physical Components
Information system processing functions Decision Support Levels of management activities Organizational functions

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Physical components
Hardware Software Database Procedures Operating Personnel Input and Output

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Information System Processing Functions

To Process Transactions
To maintain Master Files

To produce Reports
To process Enquiries To process Interactive Support Applications

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Decision Support
Decisions vary with respect to the structure that

can be provided for making them.

A

structured decision can be said to be programmable. be routine and frequently repeated, the unstructured decision tends to occur with less frequency and tends to be irregular.

The structured programmable decision tends to

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Levels of Management Activities

Strategic Planning Level Management Control Level Operational Control Level

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Organizational Functions
Production
Sales and Marketing Finance and Accounting Materials Personnel

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