This document contains 26 questions and their answers related to management information systems. The questions cover topics such as data resource management, databases, data warehousing, transaction processing, decision support systems, end user computing, information systems in various business functions like marketing, manufacturing, human resources, accounting, and financial management. Other topics include information resource management, file organization techniques, and humans as information processors.

1. Extra Questions and Answers
Unit II
An Overview of Management Information System
Ques 1.What is Data Resource management?
Ques 2.Discuss different types of databases
Ques 3.What is the difference between data and information?
Ques 4.Differentiate between data warehousing and data mining
Ques 5.Discuss database structures. Which is the most suitable structure for any database?
Ques 6.What is Management Information System? Discuss its components
Ques 7.What is OLAP?
Ques 8.What is transaction processing?
Ques 9.What is Information resource management?
Ques 10.What is a decision support system?
Ques 11.What is the difference between a DSS and MIS?
Ques 12.What is the difference between MIS and Information resource management?
Ques 13.What is the difference between MIS and TP?
Ques 14.What is end user computing?
Ques 15.Discuss end user resistance and involvement.
Ques 16.How has end user development helps solve business problems?
Ques 17.Discuss various marketing systems and how are they helping business
Ques 18.Discuss various manufacturing systems and how are they helping business
Ques 19.Discuss various Human resource systems and how are they helping business
Ques 20.Discuss various accounting systems and how are they helping business
Ques 21.Discuss various financial management systems and how are they helping business
Ques 22.Write a short note on IS operations management
Ques 23.What is the impact of IT on business organizations?
Ques 24.Discuss software available for end user computing
Ques 25.Discuss various file organization techniques
Ques 26.Discuss humans as information processors

2. Answers
Ans 1.Data Resource management is a managerial activity that applies information systems technologies like
database management, data warehousing, and other data management tools to the task of managing an
organization’s data resources to meet the information needs of their business stakeholders. Database
management reduces duplication of data and integrated data so that they can be accessed by multiple
programs and users.
The challenge arises due to technological complexity and vast amount of data that needs to be managed. To
solve the problem we use DBMS. Database Management System (DBMS) is a software tool that controls the
creation, maintenance, and use of the databases of an organization and its end users. It has interrogation
capability that helps retrieve information using a query or report generator. Various maintenance utilities are
available. Applications can also be built using DBMS tools which are easy to use.
Data resource management includes the tasks of Data administration (standards and utility of data), data
planning and database administration.
Database administrators improve the integrity and security of organizational databases. The developer, using
DDL specifies the data contents, relationships and structure and stores them in data dictionary or metadata.
During data planning, taking enterprise plan as model, data elements are identified that are needed to perform
their specific business activities. This involves creation of ER diagrams. Data relationships are identified and
represented in a data model called schema or logical view of data.
Ans 2.There are four types of databases.
a. Operational databases store detailed data needed to support the business processes and operations of a
company. They are also called subject area databases, transaction databases and production databases.
Examples are customer databases
b. Distributed databases are replicated copies or parts of databases residing on network servers on the
world-wide-web, corporate intranets or extranets.
c. Hypermedia Databases stores information consisting of hyperlinked pages of multimedia.
d. External Databases are available for a fee from commercial online services from many sources on the
internet. Data is stored in statistical data banks in hypermedia databases.
Ans 3. Information is different from data. Data is the plural of ‘datum’. Data are raw facts and figures or observations,
typically about physical phenomena or business transactions e.g. the sale transaction. Data may not currently be used
in a decision process and usually takes the form of historical records that are recorded and filed without immediate
intent to retrieve for decision making.
Information is data that has been converted into a meaningful and useful context for specific end users. It consists
of data that have been retrieved, processed, or otherwise used for informative or inference purposes, argument, or as a
basis for forecasting or decision making. It is placed in a context that gives its value for specific end users. The value
added process for data is where
(i) Its form is aggregated, manipulated, and organized
(ii) Its content is analyzed and evaluated
(iii) It is placed in a proper context for human user
Processing of data into information can involve anything from calculating, comparing, sorting, classifying, and
summarizing to updating existing data. The input for processing is data the output is information
Ans 4.Data warehouse stores data that have been extracted from the various operational, external and other
databases of an organization. Subdivisions of warehouse focusing on specific aspects are called data marts.
Data mining is a major use of data warehouse databases, which analyzes data to reveal hidden patterns and
trends in historical business activities. It can discover correlations, patterns, and trends in vast amounts of
business data.
Ans 5. The relationships among the many individual data elements stored in databases are based on one of
several logical data structures, or models. There are five basic structures used by databases.

3. a. Hierarchical structure stores records in the form of tree structure. The data element in the highest level
is called root element.
b. Network structure allows many-to-many relationships and any record can be traced to the other
following a network path.
c. Relational structure assumes that all data elements are stored as simple tables which are related to
each other in some form.
d. Multidimensional structure database is a variation of relational structure that uses multidimensional
structures to organize data and express the relationships between data.
e. Object-oriented structure is used in web-based applications. An object consists of data values
describing attributes and operations that can be performed upon the data. The concepts of
encapsulation and inheritance can be implemented in OODBMS
Database Suitability
Hierarchical For general purpose transaction processing
Network For databases with many types of business operations
Relational Easier for programmers to work with
Multidimensional OLAP and web-based
Object-oriented OLAP and web-based
Ans 6. The objective of an MIS is to provide information for decision making on planning, initiating, organizing and
controlling the operations of subsystems of the firm and to provide a synergistic organization in the process.
Management Information System consists of a group of people, a set of manuals, and data processing equipment (a set
of elements) select, store, process and retrieve data (operate on data and matter) to reduce the uncertainty in decision-
making (seek a common goal) by yielding information for managers at the time they can most efficiently use it (yield
information in a time reference).
Operating Elements of an Information System
• Physical Components
– Hardware relates to physical computer equipment for input, output, storage, processing and
communication
– Software
– Database
– Procedures such as User instructions, data preparation for input and operating the instructions
– Operations personnel such as computer operators, system analysts, programmers, data administrators
etc.
• Processing Functions
– Process transactions such as purchase or sale
– Maintain master files
– Produce reports
– Process inquiries
– Process interactive support applications
• Outputs for the user
– Transaction documents
– Preplanned reports
– Preplanned inquiry responses
– User-machine dialog results
Reports can be used for information, action description or for investigational purposes
Ans 7. Online Analytical processing (OLAP) enables managers and analysts to interactively examine and manipulate
large amounts of detailed and consolidated data from many perspectives. It helps discover patterns, trends and
exception conditions. An OLAP session takes place online in real time. OLAP involves several basic operations like
consolidation, drill down, slicing and dicing.
Consolidation involves the aggregation of data
Drill down involves detailing for any data i.e showing consolidated details about data

4. Slicing and dicing is the ability to look at the database from different viewpoints
OLTP (Online transaction processing) on the other hand allows interaction with customers and suppliers online
through internets, extranets and other networks, and process transactions immediately. Thus adding superior service to
customers and trading firms and adding strategic advantage to business
Ans 8. When a transaction is recorded manually, a copy of the document is usually used for data preparation. Special
data preparation methods are keydisk (i.e. through a keyboard), optical character recognition (OCR) or magnetic ink
character recognition (MICR)
The data is validated to determine its correctness and completeness. Subsequently the machine-readable stored data
(master file) related to or affected by the transaction is updated and outputs are prepared in the form of documents and
reports.
Reasons for preparing transaction documents are:-
(1) Informational: To report, confirm, or explain proposed or completed action
(2) Action: To direct a transaction to take place (e.g. shipping orders etc)
(3) Investigational: for background information or reference by recipient
Transaction can be processed in batch or in real-time. One advantage of real-time processing is that the error checking
or validation is done immediately, causing early detection and tracing or error. The time delay in case of batch
processing can make tracing of error difficult.
Ans 9. Information Resource management
• The management of IS in many organizations is experiencing a transition from computers and data-based
information processing to information as a strategic resource and to an expanded role for Information
technology termed as information resource management.
• Reasons for such shifts are the stage of development, and technology. In the six-stage NOLAN model, the
maturity stage replicates organizational processes and there is a joint information-systems-user accountability
for information resources. There is also a match between organizational and IS structure. The technology is
highly integrated with organizational processes and thus should be managed by single authority.
Information Resource functions
• Data processing
• Telecommunications
• Office Automation
Information resource executive
His responsibilities include:
• Operational responsibility for central data processing
• Coordination of information wide information system planning
• Maintaining infrastructure for technical services
• Acquisition and dissemination of knowledge
• Establishment and enforcement of standards and guidelines for all major IS applications
• Aiding of adequate placement of information systems expertise and responsibilities
Organization of the information resource function
There are three alternatives, centralization, decentralization or combined forms such as function and matrix
Information cost
Information cost scan be handled as per the following:
• Overhead
• Allocation of expense
• Standard resource rates
• Standard rate per unit processed
• Fixed price
• Charges are based on CPU utilization and disk storage costs.
Ans 10. Decision support systems are computer based systems that provide interactive information support to
managers and business professionals during the decision-making process. Decision support systems use analytical
models, specialized databases, an interactive computer based modelling process for making decisions, and the
decision makers own judgement.

5. Ans 11. DSS Vs. MIS
MIS DSS
Support Info about performance Info and modelling to analyze problems
Report Form Periodic reports or On Demand Interactive Inquiries
Format Pre-specified Fixed format Flexible and Adaptable
Processing Extract and manipulate data Analytical modelling of data
Ans 12. MIS Vs IRM
•While MIS deals with the business as a whole, Information resource management deals with information as a
resource.
•IRM allocates, stores and plans the information and its use. MIS uses IRM for implementation.
•It also helps in IRM by allocation information across the organization through the central database. It also preserves
information in the central repository (database) and uses this information for taking decisions. Thus MIS has a larger
perspective than IRM.
•IRM is the responsibility of Chief information officer. Similarly MIS development is his responsibility but not sole
responsibility.
•IRM focuses on data as resource, MIS is correct utilization of that data
Ans 13. TP Vs MIS
•TP processes daily activities, stores transactions and creates reports for analysis. MIS uses these reports for decisions
and distribution. It uses the processed transactions and makes analysis. It stores these transactions in an organized
form for further use.
•TP is operated at lower levels but MIS is operated by higher level management.
•TP helps in the control process and thus planning. MIS is utilized at all levels and for all management activities.
Ans 14. End user computing is a term used for the development done by the end users for building applications
using 4GLs and software tools. It enables users to create more effective applications and saves development time.
Applications suitable for end-user development can be grouped into the following 5 categories:
• One time enquiries
• Simple Reports
• Minor Changes to Reports or Enquiries
• Presentation of Data in Alternate Forms
• 'What if' Analyses

6. Ans 15. One of the benefits of allowing users to develop their own applications (or end user involvement) is in getting
change into the organization. This helps end users get ownership for change or new system and that its design meets
their needs.
Ans 17. Marketing System
•Product pricing
•Interactive marketing
•Targeted marketing includes five components namely community, content, context, Online behavior,
demographic
•Sales force automation
•Market research
•Order processing
•Sales planning
•Inventory management
• Warehouse management
Ans 18. Manufacturing Information Systems
•Quality control and testing
•Just-in-time inventory and manufacturing
•Computer integrated Manufacturing simplifies, automates and integrates all production and support
processes. It also uses CAD, MES
•Process control
•Machine control using PLCs
Ans 19. Human Resource System
•Corporate Intranet
•Staffing or recruitment management
• Personnel Management includes personnel administration, employee master data, travel management, benefits
administration, salary administration
• Payroll Accounting
• Time Management includes shift planning
• Personnel Development includes training and event management
Ans 20. Financial Management Systems
•Profit planning/ Profit Centre Accounting
•Cash management
•Online investment management
•Capital budgeting, Funds management
• Enterpise controlling
•Financial Forecasting and planning
Ans 21. Accounting Information System

7. •Cost accounting, activity based costing, product cost controlling, overhead cost controlling
•Online accounting System
•Order processing
•Inventory control
•Accounts receivable/payable
•Payroll
•General Ledger
Ans 22. IS operations management is concerned with the use of hardware, software, network and personnel resources
in the corporate or business unit data centres of an organization. Operation activities to be managed include system
operations, network management, production control, and production support.
The system performance monitors monitor the processing of computer jobs, help develop a planned schedule of
computer operations, supply information needed by chargeback systems, they also control computer operations
Ans 23. Nowdays most of the business activities are conducted using IT. IT has become a part of organization and
new managerial positions for the same have been created. It is important for every business professional to have
knowledge about IT.
The clerical work has been computerized and technology based. The clerical work can now be combined with IT up in
the hierarchy.
The management role has been refined by providing better and filtered communication channels. Electronic
supervision can be provided.
Information mediator between the organization and customer exists in the new organization.
Ans 24. Classification of software
1. Application software which performs processing for end user
2. System software that supports operations of computer networks and systems
Types of software
1. Software suites are two or more packages bundled together e.g. Microsoft office, Lotus notes suite
2. Software packages are a combination of some functions of several programs e.g. Microsoft works
3. Web browsers enable easy use of internet
4. E-mail is a way of communicating with people
5. Word processors e.g. Microsoft word
6. Electronic spreadsheets e.g. Microsoft excel
7. Presentation graphics e.g. Microsoft PowerPoint
8. Database management systems (DBMS)
9. Technologies for multimedia
10. Personal information managers e.g. lotus notes
11. Operating systems
12. Model generators facilitate the development of models and DSS. It includes programming language,
spreadsheets, and statistical packages. A good model generator should have easy usability, access t o wide
variety of data and analysis capability.
13. Model Base Management Systems (MBMS) manage models and analysis programs in much the same way as
the DBMS manages data.
Ans 25. Traditional types of files
1. Master file is relatively permanent
2. Transaction file contains details
3. Report file is an extraction of data
File organization
Sequential file organization: When the data is accessed in sequence.
Hashed file organization: Storage address Identification numbers help identifying records.

8. Indexed file organization: An index is created that helps search record.
Ans 26. Humans receive input through sensory receptors (eyes, ears, nose etc) transmit them to processing unit (brain
with storage) and output is in the form of responses (words, actions). Information is filtered for relevance before being
processed by brain.
Human is a serial processor. It has three types of memory, long term which is unlimited, short term which he forgets
after some time and is limited and external memory which consist of media like writing pad, reminders etc. Humans
use past experience for judgement. Humans have a limited capacity for rational thinking. They generally construct a
simplified model of the real situation in order to deal with it. To overcome these limitations human use concreteness
(using the available information over the information required to be retrieved) and anchoring and adjustment (creating
anchor and adjusting around it thus reducing information requirements).
Humans need feedback for psychological reasons. Decision making involves personal bias and judgement. They also
have limited processing capabilities. All the above should be overcome by IS and IS should provide feedback and
summarized data.
The biasing factors such as recency and correctness should be overcome by systems, short term memory loss,
completeness and correctness should be met.