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MIS1: Organization Management & Information
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  • 1. Amity School of Business Jitendra Tomar Amity School of Business, Amity University, UP 096-505-123-00 0120 4392867 jtomar@amity.edujitendratomar@hotmail.com MIS - Orator
  • 2. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 3. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 4. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 5. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 6. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 7. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 8. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 9. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 10. Amity School of Business• In the 1970‟s, Managers realized that they can use Computer- based Information Systems for  Planning,  Controlling,  Decision Making and  Problem Solving, rather than for just recording the transactions.• In Today‟s date, any Information System that helps managers and other professionals perform the above mentioned activities comes under the umbrella of Management Information System.• MISs are more than TPSs.• MIS‟s complexity levels vary and depends upon one‟s management level. MIS - Evolution
  • 11. Amity School of Business MIS Management Information System• System.• Information.• Management. MIS - Meaning
  • 12. Amity School of Business MIS Management Information Systems• System.• Information.• Management – People who plan, organize, initiate and control operations. MIS - Meaning
  • 13. Amity School of Business MIS Management Information Systems• System.• Information – Processed data which could be shared by different sectors for various functions so as to Manage the processes.• Management – People who plan, organize, initiate and control operations. MIS - Meaning
  • 14. Amity School of Business MIS Management Information System• System – A set of elements (People, manuals & data processing equipments) joined together for a common objective.• Information – Processed data which could be shared by different sectors for various functions so as to Manage the processes.• Management – People who plan, organize, initiate and control operations. MIS - Meaning
  • 15. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supports strong systems like:  On Demand Output,  Executive Information System,  Decision Support System,  Expert System, &  Geographic Information System. MIS - Objective
  • 16. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supported by strong systems like:  On Demand Output – One of the greatest improvements in using MISs is in the reporting methodology. Now managers can obtain current standings online in form of on-screen readouts. They can customize the reports as per the requirement. The reports are no more time bounded reports.  Executive Information System,  Decision Support System,  Expert System, &  Geographic Information System. MIS - Objective
  • 17. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supported by strong systems like:  On Demand Output,  Executive Information System – EIS deals in providing the executives with the most specific and relevant information required for the conduct of the process so that these executives do not experience the Information Overload.  Decision Support System,  Expert System, &  Geographic Information System. MIS - Objective
  • 18. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supported by strong systems like:  On Demand Output,  Executive Information System,  Decision Support System – DSS help managers find the optimal course of action from many alternatives. Since managers have scarcity of time & resources to study long & detailed reports, organizations started to build Information Systems which can help managers take decisions.  Expert System, &  Geographic Information System. MIS - Objective
  • 19. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supported by strong systems like:  On Demand Output,  Executive Information System,  Decision Support System,  Expert System – The managers may need a support system having expertise to make certain decisions rather than just knowing the formulas and equations. In today‟s date, Information Systems are developed that incorporate human expertise. These ISs are known as Expert Systems.  Geographic Information System. MIS - Objective
  • 20. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supported by strong systems like:  On Demand Output,  Executive Information System,  Decision Support System,  Expert System, &  Geographic Information System – In some cases, the information decision makers need is related to a map. In such cases, special Information Systems called Geographical Information Systems can be used to tie data to physical locations. MIS - Objective
  • 21. Amity School of Business• To provide information for planning (through effective decision making), initiating, organizing and controlling the operations of the subsystems of a firm and provide a synergistic organization in the process.• The MIS is effective since it is supported by strong systems like:  On Demand Output,  Executive Information System,  Decision Support System,  Expert System, &  Geographic Information System. MIS - Objective
  • 22. Amity School of Business• Information System in Functional Business Areas :  Accounting,  Finance,  Marketing,  Human Resource. Different types of Information Systems serve different purposes throughout an organization in what are known as “Functional Business Areas”, i.e. the in house services that support an organization‟s main business. Functional Business Areas include, but are not limited to, Accounting, Finance, Marketing, and Human Resource. Information Systems exists in most companies in one form or other controlling these Business Functional Areas. IS – In Business
  • 23. Amity School of Business• Information System in Functional Business Areas :  Accounting,  Finance,  Marketing,  Human Resource Accounting – IS help record business transactions, produce periodic financial statements and create legal reports such as balance sheets and P&L statements. They adhere to standards and also generate the reports that helps managers understand changes in an organization‟s finances. IS – In Business
  • 24. Amity School of Business• Information System in Functional Business Areas :  Accounting,  Finance,  Marketing,  Human Resource. Finance – The purpose of Financial Systems is to facilitate financial planning and business transactions. They help organize budgets, manage cash flow, analyze investments, and make decisions that could reduce interest payments and increase revenues from financial transactions. IS – In Business
  • 25. Amity School of Business• Information System in Functional Business Areas :  Accounting,  Finance,  Marketing,  Human Resource. Marketing – Marketing Information Systems help in promoting the appropriate products and services to the target customer. It helps in analyzing the demand for various products demographically. It suggests effective deployment of sales representative in different geographical areas. It can identify the trends in the demand for company‟s product and services. IS – In Business
  • 26. Amity School of Business• Information System in Functional Business Areas :  Accounting,  Finance,  Marketing,  Human Resource. Human Resource – Human Resource Management Systems helps in record keeping and employee evaluation. These systems maintain records of the employees including pictures, employee status, tax information and other data which could be linked to the payroll and other systems. The performance evaluation systems provide essential checklists that quantify the strengths and weaknesses of employees. IS – In Business
  • 27. Amity School of Business• Information System in Different Business Sectors:  Manufacturing,  Service,  Retail,  Government.  A Business Sector is defined by the general activity that takes place or by the type of organizations in which the activity takes place. Different business sectors use information systems of different types. Also, systems are often adapted for specific needs of the sector in which they are used. IS – In Business
  • 28. Amity School of Business• Information System in Different Business Sectors:  Manufacturing,  Service,  Retail,  Government. Manufacturing – ISs are used throughout the manufacturing operation, from inventory control to paying suppliers and help in allocating resources such as personnel, raw material and time to optimize productivity. Manufacturing operations use Information Systems to process customer orders, prepare production schedules, perform quality assurance and prepare shipping documents. IS – In Business
  • 29. Amity School of Business• Information System in Different Business Sectors:  Manufacturing,  Service,  Retail,  Government. Service – Information Systems play such a central role in the service sector that they are often the backbone of service organizations. Imagine the service sectors like Airlines, Tourism, Hospitality, Banking and similar sectors operating without the Information System. IS – In Business
  • 30. Amity School of Business• Information System in Different Business Sectors:  Manufacturing,  Service,  Retail,  Government. Retail – IS support establishment of ERP systems. ERP connects different departments. Store-by-store information on regional and national level is monitored. Auto requisition for the supply of a commodity could be placed. IS helps in tracking the under-stock and over-stock of different products in a store. Slow and fast moving items could be identified for better sales and improved profits. IS – In Business
  • 31. Amity School of Business• Information System in Different Business Sectors:  Manufacturing,  Service,  Retail,  Government. Government – In past few years, governmental and commercial organizations have installed computer base Information Systems to automate process and reduce human labor for the activities which are error prone and repetitive. The business of Government depends heavily on Information Systems for collecting taxes, paying social security, contracts & tenders, and purchasing products & services for various departments. IS – In Business
  • 32. Amity School of Business• Building Blocks of Management Information System:  Data & Information – The unorganized / Organized collection of facts and figures that can be used for decision making.  Hardware & Software – The physical and logical IT infrastructure that supports the IS implementation.  Telecommunications – The basic structure that facilitates the flow of information.  Users – The management / people responsible for carrying out the functions of an organization for the fulfillment of the objectives.  Procedures – The rules, regulations and methodology set up by the management for effective working towards achievement of the prime goal. MIS – Components
  • 33. Amity School of Business• Data:  Data is a plural of the Latin datum, literally a “given,” or fact, which may take the form of a number, a statement, or a picture.  Data are streams of raw facts and figures, representing event occurring in an organization or the physical environment before they have been organized and arranged into a form that people can effectively understand and use for decision making. Information:  Information is arranged data manipulated through tabulation, addition, subtraction, division, or any other operation that leads to greater understanding of a situation.  Information is a fact that have been converted or shaped into a form which is a „meaningful and useful context‟ for specific end user. Data & Information
  • 34. Amity School of Business• Information in Context to an event - is viewed on three dimensions  Time Dimension – In terms of availability,  Content Dimension – In terms of matter,  Form Dimension – In terms of appearance. Time Dimension: Timeliness, Frequency and Time-Period. Content Dimension: Accuracy, Relevance, Completeness, Conciseness, Scope and Performance (Efficiency). Form Dimension: Clarity, Detail, Order, Presentation and Media. Characteristics of Information
  • 35. Amity School of Business• The Ethics associated with the information:  Privacy - What information about ones self or ones associations must a person reveal to others, under what conditions and with what safeguards? What things can people keep to themselves and not be forced to reveal to others?  Accuracy - Who is responsible for the authenticity, fidelity and accuracy of information? Similarly, who is to be held accountable for errors in information and how is the injured party to be made whole?  Property - Who owns information? What are the just and fair prices for its exchange? Who owns the channels, especially the airways, through which information is transmitted? How should access to this scarce resource be allocated? Issues with the Information
  • 36. Amity School of Business• The Ethics associated with the information:  Accessibility - What information does a person or an organization have a right or a privilege to obtain, under what conditions and with what safeguards?Going beyond the ethics could lead to the concerns like:  Consumer Privacy,  Employee Privacy,  Freedom to use information,  IT & IS Professionalism,  Social inequality. Issues with the Information
  • 37. Amity School of Business• System  It is an array of components that work together to achieve a common, or multiple goals, by accepting input, processing it, and producing output in an organized manner.  Examples – Sound System, Education System, Political System, Accounting System, Etc.  A system may not be restricted to a single goal.  A system often consists of several subsystems (components of a larger system), each with specific sub goal. All subsystems contribute to meet the main goal by receiving inputs from, and transfer to, other subsystems of a system. System & Subsystem
  • 38. Amity School of Business• System  A system is a single entity.  Components of system interacts.  Systems are goal-seeking (have definite objectives).  Systems have input/output.  System transforms input into output (performs processing).  System exhibits entropy (uncertainty associated with random variable).  System must be controlled.  System forms the hierarchy.  System exhibits differentiation.  System exhibits equifinality (a given end state can be reached by many potential means). System - Characteristics
  • 39. Amity School of Business• Open System & Closed System  The open systems are systems that allow the interactions between its internal elements and the environment. It could be a system in exchange of matter with its environment, presenting import and export.  If the system distracts from the interaction with its environment, it is called Closed System. There are other classifications of systems too:  Physical or Abstract Systems.  Natural and Man-made systems. System - Classification
  • 40. Amity School of Business• Organization - An organization is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from the outer environment. – Organization (Process/Phenomenon related):  Exhibited as task or action to put a matter in order). – Organization (Entity related):  Organization as entities like businesses or state authorities (Organization as a permanent structure). – Organization (Institutional):  Organization as an actual purposeful structure within a social context, e.g. Marriage)• From Business Management perspective, the focus point moves around second category i.e. Entity related organization. Organization as a System
  • 41. Amity School of Business• Organization – The arrangement of resources would lead to the formation of the structure of the organization. Depending upon the arrangement mannerism, the organization structure could be categorized as:  Pyramid or hierarchy,  Committees and Juries,  Staff Organization or Cross Functional Team,  Cyclic Structure,  Matrix Organization,  Ecologies, &  Chaordic Organization. Organization - Structure
  • 42. Amity School of Business What to do? EIS, DSS, ES Strategic Level How to do? Tactical DSS, EIS LevelManage the job Operational Higher TPS Level Pyramidal Structure
  • 43. Amity School of BusinessStrategic Management:• They are highest ranking officers.• President, vice president falls into this category.• Make decisions having impact in the long run.• E.g.: – Merging with other companies, – Acquiring other companies, – Opening branches overseas, – Developing new product/ service, – Moving operations to the internet, – Restructuring of an organization. Pyramidal Structure
  • 44. Amity School of BusinessTactical Management:• Also known as middle managers.• Receive guidelines from superiors, make decisions for subordinates.• Affecting near/somewhat distant future.• Charge of several operational managers.• Responsible for finding best means (tactics) to complete the job.• Focus on “How to do” a job. Pyramidal Structure
  • 45. Amity School of BusinessOperational Management:• In-charge of front line workers.• E.g.: Department Manager or branch manager.• Authorize to obligate the company with limited operation like release of small amount of money.• Follow general policies handed down by their superiors.• The make decisions that affect their units in short term. (Temporarily replace a worker with whom, etc) Pyramidal Structure
  • 46. Amity School of BusinessExceptions:• Managers & Management • The pyramidal Structure describes three levels of management-people who are indulged in decision making in different capacities for the fulfillment of objective of the organization. • But, Managers are the People who manage specified job. • The people who manage the job and do not take part in any decision making process, could not be placed in the pyramidal structure of an organization as it is beyond the definition of pyramidal structure. • Hence, the experts in today‟s date are considerate about the placement of such group of people in pyramidal structure. A new level in the hierarchy is introduced in the pyramidal structure of an organization. The level is called „Shop-Floor Workers‟ or „Clerical Level‟ Pyramidal Structure
  • 47. Amity School of Business What to do? EIS, DSS, ES Strategic Level How to do? Tactical DSS, EIS LevelManage the job Operational Higher TPS Level Clerical Level (Shop Floor Workers)Perform the Job TPS(POS Terminals) Pyramidal Structure
  • 48. Amity School of BusinessShop-Floor Workers:• Largest group of employees.• E.g.: Service workers, Tellers in banks, receptionists, sales associate, production employees.• They are not decision making managers.• Not required to make management level judgments, even if they have the expertise.• Work at the boundaries of organization where they interact with outside people.• Working include: Take orders of product, provide customer service, record sales, issue invoices, record shipments, provide maintenance services, & similar operations. Pyramidal Structure
  • 49. Amity School of Business• It is used when an Organization Structure represents multiple reporting system.• This organizational type assigns each worker two bosses in two different hierarchies.• One hierarchy could be "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field.• The other direction could be "executive" and tries to get projects completed using the experts.• Projects might be organized by regions, customer types, or some other schema. Matrix Structure
  • 50. Amity School of Business G.M. of G.M. of G.M. of Product A Division Product B Division Product C Division V.P. of 1 2 3Marketing & sales M & S Personnel M & S Personnel M & S Personnel (M&S) assigned to Div A assigned to Div B assigned to Div C V.P. of 4 5 6 Manufacturing Mfg Personnel Mfg Personnel Mfg Personnel ( Mfg ) assigned to Div A assigned to Div B assigned to Div C V.P. of 7 8 9 Engineering Eng Personnel Eng Personnel Eng Personnel ( Eng ) assigned to Div A assigned to Div B assigned to Div C Matrix Structure
  • 51. Amity School of Business• An organization is a stable formal social structure that takes resources from the environment and processes them to produce outputs.• People at different management levels have different information needs which depends upon the nature of decision making they have to perform and depends upon the factors like culture, bureaucracy, politics, business fashion and pure chance.• Thus, the people in different managerial levels have different information needs.• The information needed by different managerial and operation levels varies on the attributes like time span covered, level of details, source, and other characteristics over a broad spectrum. Information Mannerism
  • 52. Amity School of Business High Level Management Wide Long Summarized Internal Unstructured Decision(Enterprise •Months & Making wise) •Years External •Far Past •Long Term Future Short •Hours •Days Narrow •Recent Daily(Dept. Wise) Future Detailed Internal Structured Operations Data Time Level Source Degree Purpose Range Span Of Of Details Structure Low Level Management Information Mannerism
  • 53. Amity School of BusinessBusiness Process:• A structured, measured set of activities designed to produce a specific output.• It implies a strong emphasis on how work is done within an organization. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs i.e. a structure for action.• A business process can be decomposed into several sub- processes, which have their own attributes, but also contribute to achieving the goal of the super-process.• The analysis of business processes typically includes the mapping of processes and sub-processes down to the activity level. Business Processes
  • 54. Amity School of BusinessCharacteristics of Business Process• Definability: It must have clearly defined boundaries, input and output.• Order (sequence): It must consist of activities that are ordered according to their position in time and space.• User (Recipient): There must be a recipient of the process outcome, a customer.• Value-adding: The transformation taking place within the process must add value to the recipient, either upstream or downstream.• Embeddedness: A process can not exist in itself, it must be embedded in an organizational structure.• Cross-functionality: A process regularly can, but not necessarily must, span several functions.• Process Owner: Every process should have a controller. Business Processes
  • 55. Amity School of BusinessTypes of Business Processes:• Management Process: The processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management".• Operational Process: The process that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing and Sales.• Support Process: Process that support the core processes. Examples include Accounting, Recruitment, Technical support. Business Processes
  • 56. Amity School of BusinessStrategic Information System: Information is required at each step by Strategic Management to perform the operations like • Evaluate and control the business and the industries in which the company is involved, • Assesses its competitors and sets goals & strategies to meet all existing and potential competitors and then reassesses each strategy regularly to determine how it has been implemented, • and whether it has succeeded or needs replacement by a new strategy, new technology, new competitors, a new economic environment, or a new social, financial, or political environment to meet changed circumstances. Information & Strategy
  • 57. Amity School of BusinessStrategic Information System: - The company can use many strategies together to gain competitive advantage. Eg:• Reduced Cost - Sell more units at lower price while providing the quality.• Raise Barriers to Market Entrants - Deter potential entrants and enjoy less competition.• Establish high switching cost - Make conditions infeasible for customers to switch to competitors.• Create new product and service - Sell unique product or service.• Enhanced service - Better service from competitors is provided.• Establish Alliances - Combined package by different industries.• Lock in Suppliers - Making economically impractical for suppliers to move. Information & Strategy