Course: BBA II University: Rajasthan University Subject Name: Management Information System (M.I.S) Subject Code: 206 Unit: 5 (Introduction) Syllabus: - Concept, Role, Objectives - Emergence, MIS and Computers - Impact of MIS, System approach to MIS - Advantages and Disadvantages of Computer based MIS

1. MANAGEMENT INFORMATION SYSTEM
UNIT 1

2. MANAGEMENT INFORMATION SYSTEM
UNIT 1: SYLLABUS
MIS: Introduction
Concept, Role, Objectives
(as per University of Rajasthan)
Emergence, MIS and Computers
Impact of MIS, System approach to MIS
Advantages and Disadvantages of Computer based MIS

3. MEANING/CONCEPT
A Management Information System (M.I.S) is an information
system used for decision making and for coordination, control,
analysis and visualisation of information in the organisation.
M.I.S is the use of information technology, people and business
process to record, store and process data to produce information
that decision makers can use to make day to day decisions.
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4. DEFINITIONS
According to G.B. Davis,
"Management Information System (MIS) is an integrated man/machine
system for providing information to hold up the operations, management
and decision making functions in an organization."
According to Walter I. Kennevan,
"A formal method of collecting timely information in a presentable form in
order to facilitate effective decision making and implementation, in order to
carry out organisational operations for the purpose of achieving the
organisational goals."
According to Zwass (1992),
"A Management Information System is an organised portfolio of formal
systems for obtaining, processing, and delivering information in support of
the business operations and management of an organization."
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5. ROLE
OF MANAGEMENT INFORMATION SYSTEM
Management Information System (MIS) plays a
significant role in the decision-making process of any
organization. In any organization, a decision is made
on the basis of relevant information which can be
retrieved from the MIS.
HELPS IN DECISION MAKING
Management Information System helps in establishing
relationship among every department through proper
exchanging of information and satisfy multiple need
of an organization across the different functional
department.
HELPS IN COORDINATION
Management Information System provides relevant
information about every aspect of activities.
Hence, if any deviation is being identified by
management then MIS provides information which will
help organisation finding out the solution of deviation
HELPS IN IDENTIFYING DEVIATIONS
Management Information System stores all past data
regarding performance of organisation in its database
which helps management to compare current
performance of organisation with past performance.
HELPS IN COMPARING PERFORMANCE
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6. OBJECTIVES
OF MANAGEMENT INFORMATION SYSTEM
M.I.S captures/gathers data from various internal and
external sources of organisation.
Data Capturing can be manual or automatic (through
computers)
(1) DATA CAPTURING
M.I.S stores the processed and unprocessed data for
future use. If any information is not immediately
required, it is saved as an organization record, for later
use.
(3) STORAGE
The captured data is processed to convert into the
required information.
Processing of data is done by such activities as
calculating, sorting, classifying and summarising.
(2) PROCESSING OF DATA
M.I.S retrieves information from its stores as and
when required by various users.
(4) RETRIEVAL
Information, which is a finished product of MIS, is
circulated to the users in the organization. It is
periodic or online through a computer terminal.
(5) CIRCULATION OF INFORMATION
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7. EMERGENCE
When computers began to emerge in the 1940s and 1950s, punch cards
were still a big part of Information Systems.
They continued to play a role until the 1970s when they were replaced
by magnetic storage media like tapes and disks.
These storage devices greatly increased the speed of calculating data
Consequently, M.I.S began to develop for accounting.
Calculating data and compiling it into reports could now be done in a
fraction of the time it would have taken before.
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8. EMERGENCE AND M.I.S AND COMPUTERS
Kenneth and Jane Laudon identify five eras of Management Information
System evolution corresponding to the five phases in the development
of computing technology:
Five Eras of Management Information System:
- First Era (Mainframe and Mini-Computer computing)
- Second Era (Personal Computers)
- Third Era (Client/Server Networks)
- Fourth Era (Enterprise Computing)
- Fifth Era (Cloud Computing)
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9. OF MANAGEMENT INFORMATION SYSTEM
The first era (mainframe and minicomputer) was ruled
by IBM and their mainframe computers; these
computers would often take up whole rooms and
require teams to run them — IBM supplied the
hardware and the software. As technology advanced,
these computers were able to handle greater
capacities and therefore reduce their cost. Smaller,
more affordable minicomputers allowed larger
businesses to run their own computing centers in-
house.
FIRST ERA (MAINFRAME/MINICOMPUTER)
The second era (personal computer) began in 1965 as
microprocessors started to compete with
mainframes and minicomputers and accelerated the
process of decentralising computing power from
large data centres to smaller offices. In the late 1970s
minicomputer technology gave way to personal
computers and relatively low cost computers were
becoming mass market commodities, allowing
businesses to provide their employees access to
computing power that ten years before would have
cost tens of thousands of dollars. This proliferation of
computers created a ready market for
interconnecting networks and the popularisation of
the Internet.
SECOND ERA (PERSONAL COMPUTER)
EMERGENCE AND M.I.S AND COMPUTERS
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10. OF MANAGEMENT INFORMATION SYSTEM
As technological complexity increased and costs
decreased, the need to share information within an
enterprise also grew—giving rise to the third era
(client/server), in which computers on a common
network access shared information on a server. This
lets thousands and even millions of people access
data simultaneously.
THIRD ERA (CLIENT/SERVER)
The fourth era(enterprise) enabled by high speed
networks, tied all aspects of the business enterprise
together offering rich information access
encompassing the complete management
structure.Every computer is utilized.
FOURTH ERA (ENTERPRISE)
The fifth era (cloud computing) is the latest and
employs networking technology to deliver
applications as well as data storage independent of
the configuration, location or nature of the hardware.
This, along with high speed cellphone and wifi
networks, has led to new levels of mobility in which
managers may access the MIS remotely with laptop,
tablet computers and smartphones.
FIFTH ERA (CLOUD)
EMERGENCE AND M.I.S AND COMPUTERS
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11. IMPACT/BENEFITS
OF MANAGEMENT INFORMATION SYSTEM
A good MIS supports the management thereby
making the marketing, finance, production and
personnel departments more efficient. It helps in
tracking and monitoring of the functional targets.
SUPPORTS MANAGEMENT FUNCTIONS
The principal function of MIS is to organise and
analyse data and use it to generate informative
reports. With these reports, the organisation's
management can monitor its performance and
identify new business opportunities. They can
formulate plans to improve the organisation's
processes and increase its production efficiency.
GENERATES ANALYTICAL REPORTS
It can facilitate communication between different
employees and departments of the organisation.
They can share relevant and timely business
information, particularly about interdepartmental
work. That can prevent work delays or misuse of
resources due to any misunderstanding or lack of
discussion.
IMPROVES INTERNAL COMMUNICATION
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12. IMPACT/BENEFITS
OF MANAGEMENT INFORMATION SYSTEM
Organisations regularly set business goals and make business and financial forecasts, but they need to monitor their
effectiveness.
For that, they must compare them with actual performances.
An MIS facilitates performance reviews and accurate comparisons with the projections. That can enable the
management to make better business decisions.
COMPARES PERFORMANCE
M.I.S provides information to managers about the progress, achievements and shortfalls in the activity and the targets
which helps them to take decisions for betterment of organisation
PROVIDES INFORMATION TO MANAGERS
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13. SYSTEMS APPROACH
The system approach is based on the generalisation that all things are
inter-related and inter-dependent with one another.
A system is made up of related and dependent elements that form a
unique system. A system is simply an assemblage of things to forming a
single unit.
One of the most significant characteristics is that it consists of a
subsystem hierarchy. These are the components that form the main
device, and so on.
For instance, it is possible to view the world as a system in which
different national economies are sub-systems.
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14. SYSTEMS APPROACH - FEATURES
- A system consists of interacting elements. It is set of inter-related and
inter-dependent parts arranged in a manner that produces a unified
whole.
- The various sub-systems should be studied in their inter-relationships
rather, than in isolation from each other.
- An organisational system has a boundary that determines which parts
are internal and which are external.
- An organisation is a dynamic system as it is responsive to its
environment. It is vulnerable to change in its environment.
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15. SYSTEMS APPROACH IN PARTS OF ORGANISATION
TO MANAGEMENT INFORMATION SYSTEM
Planning is an essential feature of management. Planning
involves deciding what needs to be done, who needs to do
it, when to do it, and how to do it in advance. Two phases
are part of the preparation process:
- Developing the Strategy
- Formulating the steps necessary to accomplish the plan,
timing and expense.
SYSTEM APPROACH IN PLANNING
Organizing is important for managers because it
leads to successful group action. It also helps to
keep people working together.
The good structure of the organization as outlined in
the policies and procedure.
- Informal organizing.
- The individual as a device
- The method of organizational contact.
- The power chain.
- The functional method.
- The system for management process.
SYSTEM APPROACH IN ORGANISING
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16. SYSTEMS APPROACH IN PARTS OF ORGANISATION
TO MANAGEMENT INFORMATION SYSTEM
Controlling is necessary because the outcome of the desire needs to be achieved. The most popular approach consists
of a three-step procedure:
- Setting Performance Standard:
Management sets the performance standards which is fulfils the organisation goals and objectives as well as compete
with other organisations.
- Performance Assessment:
Organisation Performance is compared with set standards and identify deviations in the performance.
- Deviation Control:
Management finds deviations in assessment results and control the deviations as well as align it with organisation goals
and objectives.
SYSTEM APPROACH IN CONTROLLING
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17. ADVANTAGES
OF COMPUTER BASED MIS
Computerised M.I.S has the advantage of increased
efficiency and time management. Computers may
more rapidly perform accounting functions or
assessments than manual accounting systems, once
data has been entered into the system.
SAVES TIME
Computerised MIS has the advantage of higher
accuracy. The potential for human error is greater
when employees are manually completing accounting
procedures.
ACCURACY IN DATA
Access to data via a computer network information
system is central, providing a “one-stop” location to
find and access pertinent computer data.
Most large-scale businesses and organizations use
central database to manage user information,
manage advertisement lists, store product
information and keep track of orders.
DATA CENTRALITY
Computerised systems allow for greater efficiency in
performing specific tasks both accurately and more
rapidly than doing the same task using, for example, a
pencil and paper or a pencil and ledger book.
Computerized systems also offer storage capacity
efficiency.
INCREASE IN EFFICIENCY
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18. DISADVANTAGES
OF COMPUTER BASED MIS
Management information system is expensive to set
up and maintain.
COSTLY
As MIS in online connected so hacking is also done by
3rd party people. In some cases, some sensitive data
is stolen like credit card details of customers.
PRONE TO HACKING
MIS takes into consideration only qualitative factors,
ignoring the non qualitative factors such as morale,
attitude, and motivation of workers. is the biggest
limitation of MIS.
ONLY QUALITATIVE FACTORS CONSIDERED
MIS Cannot update itself automatically like many
other application. Updating has to be done manually
by obtaining raw data and feeding it into the system
for processing and updating pre existing data.
LACK OF UPDATE FLEXIBILITY
MIS content highly sensitive information about an
organisation which can be used for fraudulent
activities. Constant monitoring and filtering is
required to avoid manipulation of data by fraudster
causing harm to business.
REQUIRES CONSTANT MONITORING
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19. MODELS
A model is an abstraction of something it represents (some
phenomenon), called an entity.
For example, if a model represents a firm, then the firm is an entity.
Types of Models:
- Physical Models
- Narrative Models
- Graphs
- Mathematical Models
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(a) Influence of Time
(b) Degree of Certainty
(c) Ability to Achieve Optimisation
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20. MODELS - TYPES
it is a model that exists in three-dimensional form.
For Example: clay model of a new automobile
developed by designers.
PHYSICAL MODELS
It uses symbolic notations and mathematical equations to
represent a system. It can be represented by 3-D also.
Following are the types of mathematical models:
(a) Influence of Time
Static Model does not include time as a variable whereas,
Dynamic Model allows the changes of system attributes to be
derived as a function of time.
(b) Degree of Certainty:
A probability is a chance of occurring something will
happen.Probabilities ranges from 0 to 1. A model that includes
probabilities is called Probabilistic model, otherwise it is
called a Deterministic model.
(c) Ability to Achieve Optimisation:
Optimizing Model selects the best solution among the
alternatives
MATHEMATICAL MODELS
It is created by verbal or written description. Also,
these can be created anywhere without much
resources hence they are most popular.
NARRATIVE MODELS
It is usually a two-dimensional diagram.
For Example: graphs and charts.
GRAPHS
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21. FUNCTIONAL APPROACH
Functional Approach is based on the various business functions such as
Production, Marketing, Finance and Personnel etc.
These departments or functions are known as functional areas of
business.
Each functional area requires applications to perform all information
processing related to the function. The popular functional areas of the
business organization are:
- Financial Information System
- Marketing Information System
- Production/Manufacturing Information System
- Human Resource Information System
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22. FUNCTIONAL APPROACH - AREAS
TO MANAGEMENT INFORMATION SYSTEM
Financial information system is a sub-system of
organizational management information system. This
sub-system supports the decision-making process of
financial functions at the level of an organization.
FINANCIAL INFORMATION SYSTEM
This sub-system of management information system
provides information about various functions of the
marketing system of an organization. Marketing is
another functional area of the business organization,
which is engaged in marketing (selling) of its products
to its customers.
MARKETING INFORMATION SYSTEM
Manufacturing or production information system
provides information on production /operation
activities of an organization and thus facilitates the
decision-making process of production managers of
an organization. The main decisions to be taken in
manufacturing system is Product Design
PRODUCTION/MANUFACTURING
INFORMATION SYSTEM
This functional information system supports the
functions of human resource management of an
organization. The human resource management
function, in its narrow sense, it also known as
personnel management
HUMAN RESOURCE INFORMATION SYSTEM
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