The document discusses management information systems (MIS) and how they can support decision making in organizations. It defines MIS as an integrated system that provides information to support operations, management, and decision making. MIS deals with systematically collected data stored in databases. This information helps managers with planning, organizing, staffing, coordinating, directing and controlling organizational operations. The document then discusses how MIS is used in different functional areas like finance, accounting, sales, marketing, manufacturing, and services. It also outlines frameworks for strategic planning, management control, operational control, and decision making in organizations.

1. Information Systems for Managers Smitha Ramachandran Units 5 – 6

2. Management Information Systems (MIS ) Defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making function in the organization Deals with information that is systematically and routinely collected in accordance with a well-defined set of rules Information provided by an MIS assists managers in planning, organizing, staffing,coordinating,directing and controlling the operations of an organization Unit:5

3. Connective Actions Planning Control Operations Plan & Targets Management Control Systems MIS is concerned with planning and control Has large amount of data as its integral part that is stored and managed by a data base management system

4. Features Must be capable of handling voluminous data. The data and transactions must be validated Must be able to perform operations on the data irrespective of the complexity of the operations Should facilitate quick search and retrieval of information. Must support mass storage of data and information Information must be communicated to the receipt in time

5. IS uses in Functional Areas Finance and Accounting To forecast revenue and business activity To determine the best sources and uses of funds To manage cash and other financial resources and analyzing investment To check the financial health of an organization Sales and Marketing Product Analysis : Used to develop new goods and services Site Analysis: to determine the best location for production and distribution facilities Promotion Analysis: to determine the best advertising and sales approaches Price Analysis: to set product prices to get the highest total revenues Contd…

6. Manufacturing To process customer orders Develop production schedules Control inventory Monitor product quality Service industry To serve the customer better and maximize their profit Banks and other investment firms To make good investments and sanction sound loans Contd…

7. Framework of Business Planning and Control An organization must respond to market forces, competition, to environmental and technological changes Must do long term planning Different Methodologies for Strategic Planning are available According to the model suggested by Robert Anthony Strategic Planning plays an important role in planning and control system

8. Strategic Planning Management Control Operation Control Planning and Control Systems Strategic Planning: the process of the organization, determining the possible shift in objectives, deciding on the resources used to attain their objectives and the policies that govern the acquisition, use and disposition of there resources Management Control: the process by which managers assure that the resources are obtained and used effectively and efficiently to attain the objectives of the organization Operational Control: the process of assuming that specific task are carried out effectively and efficiently

9. Planning and Control Activities in Different Functional Areas Strategic Planning Management Control Operational Control Production Location of new factory Determine the product mix Scheduling specific jobs on specific machines in a shift Marketing Entering the export market Media Planning for advertising expenditure Planning sales contacts to be made in the next week Finance Raising capital by issuing new shares Determining maximum levels of credit for customers Determining what action to take against on payment by a specific customer Personal Deciding on changes to be made in the organization Structure Determining who will be promoted to fill a vacated post at middle or lower level,in the organization Determining which workers will be on each shift

10. Anthony’s Framework: Differences in Information Required for three types of Planning and Control Process Information characteristic Strategic planning Management Control Operational Control Volume Low Intermediate High Levels of Aggregation High Intermediate Low Frequency of use of particular type of data Low Intermediate High Currency Requirement Low Intermediate High Accuracy Low Intermediate High Scope Wide Intermediate High Source Significant amount from external sources Mostly Internal Entirely internal Predictability with user Low Fairly high Very high Variability with user High Intermediate Low Distance of user from sources within organization Fair Fairly close close

11. Simon’s Framework Broken down the process of decision making into three stages Intelligence : stage in which decision maker recognizes that there is a problem or opportunity that requires him to make a decision Design : decision maker determines the alternatives that are available to him to resolve the problem Choice : finalizes from the alternatives. The selection process requires feasibility analysis or cost-benefit analysis

12. The three major classes of decisions with Simon’s framework Programmed decisions: All stages are handled by following a preset well-defined procedure Decisions are repetitive and routine that arise often Mathematical model can be made in their entirety Eg: inventory-ordering decisions Non-programmed decision: Difficult to structure in logical-mathematical terms Cannot be handled by following preset or well-defined procedures Not repetitive in nature and require fresh intelligence,design and choice phases to be executed Eg: setting up of a factory or new product Semi-programmed decision: At least one or maximum of two can be handled by preset well-defined procedures

13. Zani’s model for MIS design Important determinants in the MIS design: Opportunities and risk Company strategy Company structure Management and decision-making process Available technology Available information sources

14. Factors Facilitating Implementation of MIS Involvement of top management in the computerization effort, in defining the purpose and goals of computers within the organization Selection of an EDP manager who has political skills to involve managers in choosing application areas, identifying information needs and designing reports A computer staff, who has interdisciplinary skills in computers, management and operations management A balanced expenditure in hardware and software

15. Organization and IS: A 2-way relationship An organization is an open system that adjust according to the changing environment While designing MIS for an organization the requirements to be kept in mind: MIS should be designed viewing organization as a system Should give weightage to human side of the organization and its culture Should give reports to main decision maker Should give control information to the higher management, if organization follow hierarchy with a high degree of centralization should give functional design if the organization is structure on a functional basis If the organization works on a standard system where rules, policies, systems and procedures have been laid down, then these becomes part of MIS

16. Unit 6: Information Systems Economics Data Raw material Information Processed data Defied as data that have been put into a meaningful and useful context and communicated to a recipient who uses it to make decisions. It reduces uncertainty, reveals additional alternatives or helps eliminate irrelevant or poor ones

17. Data-Information-Knowledge

18. Desired characteristics of Information Accurate Complete Economical Flexibility Reliable and verifiable Relevant Simple Timely Accessible and Secure

19. Generate Manipulate Synthesize Sort store Retrieve Store Destroy Utilize Data Life Cycle

20. IS: Success and Failures A project is success If it is completed within time and budget It must meet needs of its users and organization Over a period of time the success and failure factors identified are: Project scope: should be stable and well understood An MIS project that aims for BPR are of high-risk but at the same time have high potential for major benefits Technology development platform and development language exposure Support from the management Objective of MIS must be in tune with that of the organization System should be user friendly and the response time should be reasonable MIS should be developed with a clear objective and that must be documented before the implementation Data policy should be formulated Quality control plan must be in place concerned people must be adequately trained System should be properly documented so that attrition does not affect MIS adversely

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