02-01-2013, 11:10 AM
Introduction to Management Information Systems
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Introduction
MANAGEMENT INFORMATION SYSTEM ( MIS) CONCEPT
The concept of the MIS has evolved over a period of time comprising many different
facets of the organizational function. MIS is a necessity of all the organizations.
The initial concept of MIS was to process data from the organization and present it in the
for of reports at regular intervals. The system was largely capable of handling the data
from collection to processing. It was more impersonal, requiring each individual to pick
and choose the processed data and use it for his requirements. This concept was further
modified when a distinction was made between data and information. The information is
a product of an analysis of data. This concept is similar to a raw material and the finished
product. What are needed are information and not a mass of data. However, the data can
be analyzed in a number of ways, producing different shades and specifications of the
information as a product. It was, therefore, demanded that the system concept be an
individual- oriented, as each individual may have a different orientation. Towards the
information. This concept was further modified, that the system should present
information in such a form and format that it creates an impact on its user, provoking a
decision or an investigation. It was later realized then even though such an impact was a
welcome modification, some sort of selective approach was necessary in the analysis and
reporting. Hence, the concept of exception reporting was imbibed in MIS. The norm for
an exception.
Was necessary to evolve in the organization. The concept remained valid till and to the
extent that the norm for an exception remained true and effective. Since the environment
turns competitive and is ever changing, fixation of the norm for an exception becomes ka
futile exercise at least for the people in the higher echelons of the organization. The
concept was then evolved that the system should be capable of handling a need based
exception reporting. This need maybe either of an individual or a group of people. This
called for keeping all data together in such a form that it can be accessed by anybody and
can be processed to suit his needs. The concept is that the data is one but it can be viewed
by different individuals in different ways. This gave rise to the concept of DA ABASE,
and the MIS based on the DATABASE proved much more effective.
MIS DEFINITION
The Management Information System (MIS) is a concept of the last decade or
two. It has been understood and described in a number ways. It is also known as the
Information System, the Information and Decision System, the Computer- based
information System.
The MIS has more than one definition, some of which are give below.
1. The MIS is defined as a system which provides information support for decision
making in the organization.
2. The MIS is 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.
3. The MIS is defined as a system based on the database of the organization evolved
for the purpose of providing information to the people in the organization.
4. The MIS is defined as a Computer based Information System.
ROLE OF THE MANAGEMENT INFORMATION SYSTEM
The role of the MIS in an organization can be compared to the role of heart in the
body. The information is the blood and MIS is the heart. In the body the heart plays
the role of supplying pure blood to all the elements of the body including the brain.
The heart works faster and supplies more blood when needed. It regulates and
controls the incoming impure blood, processes it and sends it to the destination in the
quantity needed. It fulfills the needs of blood supply to human body in normal course
and also in crisis.
The MIS plays exactly the same role in the organization. The system ensures that an
appropriate data is collected from the various sources, processed, and sent further to
all the needy destinations. The system is expected to fulfill the information needs of
an individual, a group of individuals, the management functionaries: the managers
and the top management.
The MIS satisfies the diverse needs through a variety of systems such as Query
Systems, Analysis Systems, Modeling Systems and Decision Support Systems the
MIS helps in Strategic Planning, Management Control, Operational Control and
Transaction Processing.
IMPACT OF THE MANAGEMENT INFORMATION SYSTEM
Since the MIS plays a very important role in the organization, it creates an impact
on the organizations functions, performance and productivity.
The impact of MIS on the functions is in its management. With a good support,
the management of marking, finance, production and personnel become more
efficient. The tracking and monitoring of the functional targets becomes easy. The
functional, managers are informed about the progress, achievements and shortfalls in
the probable trends in the various aspects of business. This helps in forecasting and
long- term perspective planning. The managers attention is brought to a situation
which is exceptional in nature, inducing him to take an action or a decision in the
matter. A disciplined information reporting system creates a structured data and a
knowledge base for all the people in the organization. The information is available in
such a form that it can be used straight away or by blending analysis, saving the
managers valuable time.
The MIS creates another impact in the organization which relates to the
understanding of the business itself. The MIS begins with the definition of a data
entity and its attributes. It uses a dictionary if data, entity and attributes, respectively,
designed for information generation in the organization. Since all the information
system use the dictionary, there is common understanding of terms and terminology
in the organization brining clarity in the communication and a similar understanding
an even of the organization.
MANAGEMENT INFORMATION SYSTEM AND COMPTER
Translating the real concept of the MIS into reality is technically, an infeasible
proposition unless computers are used. The MIS relies heavily on the hardware and
software capacity of the computer and its ability to process, retrieve communicate
with no serious limitations.
The variety of the hardware having distinct capabilities makes it possible to
design the MIS for a specific situation. For example, if the organization needs a large
database and very little processing, a computer system is available for such a
requirement. Suppose the organization has multiple business location at long
distances and if the need is to bring the data at one place, process, and then send the
information to various location, it is possible to have a computer system with a
distributed data processing capability. If the distance is too long, then the computer
system can be hooked through a satellite communication system. The ability of the
hardware to store data and process it at a very fast rate helps to deal with the data
volumes, its storage and access effectively. The ability of the computer to sort and
merge helps to organize the data in a particular manner and process it for complex
lengthy computations. Since the computer is capable of digital, graphic, word image,
voice and text processing, it is exploited to generate information and present it in the
form which is easy to understand for the information user.