MIS1: Organization Management & Information

Amity School of Business

Jitendra Tomar
Amity School of Business,
Amity University, UP

096-505-123-00
0120 4392867
jtomar@amity.edu
jitendratomar@hotmail.com

MIS - Orator


• 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


• 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


MIS

Management Information System

• System.
• Information.
• Management.

MIS - Meaning


MIS

Management Information Systems

• System.
• Information.
• Management – People who plan, organize, initiate and
control operations.

MIS - Meaning


MIS

Management Information Systems

• System.
• Information – Processed data which could be shared by
different sectors for various functions so as to Manage the
processes.
control operations.

MIS - Meaning


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.
control operations.

MIS - Meaning


• 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


• 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.
MIS - Objective


 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.

MIS - Objective


 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.
MIS - Objective


 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.

MIS - Objective


 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



MIS - Objective


• 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


 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


 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


 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


 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


• 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


 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


 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


 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


 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


• 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


• 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


• 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


• The Ethics associated with the information:
 Privacy - What information about one's self or one's
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


• 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


• 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


• 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


• 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


• 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


• 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


What to do? EIS, DSS, ES
Strategic
Level

How to do? Tactical DSS, EIS
Level

Manage the job Operational Higher TPS
Level

Pyramidal Structure


Strategic 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


Tactical 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


Operational 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


Exceptions:
• 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


What to do? EIS, DSS, ES
Strategic
Level

How to do? Tactical DSS, EIS
Level

Manage the job Operational Higher TPS
Level

Clerical Level
(Shop Floor Workers)

Perform the Job TPS(POS Terminals)
Pyramidal Structure


Shop-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


• 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


G.M. of G.M. of G.M. of
Product A Division Product B Division Product C Division

V.P. of 1 2 3
Marketing & 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


• 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

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


Business 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


Characteristics 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


Types 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


Strategic 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


Strategic 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

MIS1: Organization Management & Information

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