MIS UNIT-1.PPT management information system unit 1
- 2. What do you understand by MIS ? “Management Information system is a well structured method which combine the principles, theories and practices of management and plays an important role in business organization for planning and decision making process.”
- 3. MIS- is a formal method of collecting timely information in a presentable form in order to facilitate effective decision making and implementation, in order to carryout organizational operations and achieving the organizational goals”.
- 4. MIS- is an integrated system which collects, maintains, correlates and selectively displays information to meet the specific need of various level of management
- 5. What is MANAGEMENT ? Management is the art of getting things done through an individual or group of individuals to achieve the goal and objective of the organization efficiently & efficiently. The key person involved in the management of an organization is the manager.
- 6. The main task of management are:- Planning Organising Staffing Directing Controlling
- 7. Planning- It involves establishing organizational goal & developing strategies to achieve goal. It bridges the gap between where we are and where we want to go. Following questions are answered at the time of planning process:- •What to do? •When to do? •Who is to do? •How is it to be done? •Where is it to be done. •Why it is to be done?
- 8. Organizing:- It refer to grouping of people activities in order to facilitates the achievement of organizational goal. It involves identifying the activities divide them into convenient jobs and delegating the authority to each individual so that the job is carried out as planned.
- 9. Staffing:- It is the process of putting the right person at right job. This involves recruitment- defining the requirement for the people with respect to the job to be done, Selection- selecting the right person for the position, Training & development- train them so that they can accomplish their task efficiently and effectively.
- 10. Directing:- It is the process of activating the plan, structure and group efforts in the desired direction. It is needed for the implementation of plans by providing the desired leadership, motivation and proper communication.
- 11. Controlling:- Controlling is the mode of checking the progress of plans and also correcting any deviations that may occur along the way. It involves •Fixing the standard for measuring the work performance. •Measurement of the actual performance . •Comparing the actual with standards & find the deviations. •Taking the corrective actions
- 12. Tactical/Management level Strategic Level Operational information INFORMATION SYSTEM AT VARIOUS LEVEL OF MANAGEMENT Top Level Middle Level Bottom Level
- 13. CHARACTERISITICS OF MIS 1.Management Oriented:-MIS is to provide the information support to the management in the organization for decision making. It means that the efforts for the development of the information system should start from an appraisal of management needs and overall business objective. 2. Need based:- MIS design and development should be as per the information need of managers at different level i.e Strategic planning level, Management control level and operational level.
- 14. 3. Exception Based:- MIS should be developed on the exception based reporting principle which means an abnormal situation i.e. the maximum, minimum or expected value vary beyond tolerance limits. In such situation, there should be exception reporting to the decision maker at the required level. 4. Future Oriented:- MIS should also look future. MIS should not only provide past or historical Information rather it should provide information on the basis of projection based on which actions may be initiated. It should estimate &forecast the
- 15. 5. Central Database:- Each system require access to the master file of the data covering inventory about personnel, vendors, customers etc. If the data is stored efficiently and with the common usage in mind, one master file can provide the data needed by any of the functional system. 6. Sub system concept:- The process of MIS development is quite complex and one is likely to lose insight frequently. Thus the system though viewed as a single entity, must be broken down into digestible sub system.
- 16. 7.Long Term Planning :- MIS is developed for long period. Such system do not develop overnight. A heavy element of planning is involved. The MIS designer must have the future objectives and needs of the company in mind. 8. Integrated:- It is necessary characteristic of a MIS. Integration is significant because of its ability to produce more meaningful information. Ex. In order to develop an effective production scheduling system, it is necessary to balance such factors as:- a) Set up cost. b)Workforce c) Overtime rates d) Production capacity e) Inventory level f) Capital requirement g) Customer Services.
- 17. Functions of MIS:- MIS stores processed or unprocessed data for future use. If any information is not immediately required it is saved as an organizational record. In this activity data and information are retained in an organized manner for later use. Stored data is commonly used into fields, records, files and databases. There are some functions of MIS through which data is stored.
- 18. Functions of MIS 1.Collecting data 2.Processing data 3.Storing information 4.Retrieving information 5.Disseminating information
- 19. FUNCTIONS OF MIS
- 20. 1.Data Capturing :- Capturing of data is done from internal and external sources it may be manual or through computer terminals. End users typically, records data about transactions on same physical medium such as paper form or enter it directly into a computer system. 2. Processing of Data:- The captured data is processed to convert it into the required form. Processing of data is done by such activities as calculating, comparing, sorting, classifying and summarizing. These activities organize, analyse and manipulate data using various statistical, mathematical, operations.
- 21. 4. Retrieval of information:- MIS retrieve information from its stores as and when required by various users. As per the required by various users the retrieval of information is either disseminated or it is processed again to meet the exact MI demand. 5 . Dissemination of Information:- Information which is finished products of MIS is disseminated to the users in the organization. It could be periodic, through reports or online through computer terminal.
- 22. Evolution of MIS •Earlier one Man show •Now Globalization •Increase need for Information Why MIS is required 1.Dynamic and competitive nature of Market 2.Globalization of resources 3.Increasing complexities of business organization 4.Information Revolution
- 23. Benefits of MIS • Provides timely and accurate, reliable and permanent information. • Avoids duplication of efforts. • Coordinate the whole organization. • Provides the information in form and formats required by the user. • helps in making the better and scientific decisions by the management. • Speed of processing and fast retrieval of data. • Access to remote area users
- 24. Limitations of MIS •The quality of the operations of MIS depends on the quality of the input process. •MIS is not a substitute for effective management. •MIS may not have requisite flexibility to quickly update itself with the changing needs of time. •MIS cannot provide tailor-made information packages suitable for the purpose of every type of decision made by executives.
- 25. • MIS takes into account only quantitative factors. It cannot consider the qualitative factors like moral and attitude of managers. • MIS is not useful where secrecy is maintained in disseminating information to their workers. • The effectiveness of MIS is also affected or reduced in case of a change in top management, organizational structure and operational team.
- 26. Objectives of Management Information System: The following are the objectives of a management information system: 1. MIS is very useful for efficient and effective planning and control functions of the management. MIS is useful in getting the things done by providing quick and timely information to the management. 2. Reports give an idea about the performance of men, materials, machinery, money and management. Reports throw light on the utilization of resources employed in the organization.
- 27. 3. MIS is helpful in controlling costs by giving information about idle time, labor income, wastages and losses and surplus capacity. 4. By making comparison of actual performance with the standard and budgeted performance, variances are brought to the notice of the management by MIS which can be corrected by taking corrective steps. 5. MIS brings to the notice of the management strength of the organization, to take advantage of the opportunities available.
- 28. History of MIS The Five Eras of MIS In order to make sense of the evolution of management information systems, it's helpful to break down the history into four or five eras.
- 29. First Era (mid-1960s to mid-1970s) During the first years of computerized MIS, information systems were centralized and concerned solely with governance and the needs of management. Most information systems and their reports were under the control of accounting departments. Technology included third- generation mainframe computers, like the IBM 360. Languages included Assembler, Fortran, COBO and, Database e. Ethernet networks were developed during this time.
- 30. Second Era (mid-1970s to mid-1980s) While MIS was still mainly concerned with governance and the needs of management, more departments were beginning to benefit from the technology. In many companies, steering committees and user-led initiatives determined the shape and scope of additional IS projects. Technology included the first personal computers (PCs), minicomputers and mid-range computers.
- 31. Third Era (mid-1980s to late 1990s) During the third era, centralized information systems began to spread out and information became decentralized. Each department had its own computer system. Managing information was often referred to as "herding cats." It was during this era that a new position emerged in many companies to oversee the acquisition and management of multiple information systems: the Chief Information Officer, or CIO. Technology during this era included internetworking and the beginning of the internet.
- 32. Fourth Era (late 1990s to today) During the current era, information systems are still tightly tied to governance and management, however the systems are widely distributed, within the reach of nearly every employee who needs it across multiple platforms. Many information systems are integrated between different companies, so that a client business can readily access supplier information and their customers, in turn, can access that information. Technology now includes social media, search engines and ubiquitous computing through a variety of platforms including laptops, tablets and smartphones.
- 33. Fifth Era (today forward) The increase in internet bandwidth over recent years has led to a substantial reliance on cloud computing. As a result, some maintain that this marks a new era in worker's ascendancy and that we are now in a fifth era for management information systems. Today, practically any employee is now in a position to make informed decisions with tools that are readily available across multiple platforms. Furthermore, the line between who produces and who consumes MIS information is increasingly blurred.
- 34. Decision Making process Decision making is a daily activity for any human being. There is no exception about that. When it comes to business organizations, decision making is a habit and a process as well. Effective and successful decisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization. In the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making, we may use many tools, techniques and perceptions.
- 35. Decision making process in detail Steps of Decision Making Process Each step may be supported by different tools and techniques.
- 37. Step 1: Identification of the purpose of the decision In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the purpose of the decision. •What exactly is the problem? •Why the problem should be solved? •Who are the affected parties of the problem? •Does the problem have a deadline or a specific time-line?
- 38. Step 2: Information gathering A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the problem. In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used.
- 39. Step 3: Principles for judging the alternatives In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining the criteria, organizational goals as well as the corporate culture should be taken into consideration. As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand.
- 40. Step 4: Brainstorm and analyse the different choices For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of causes. For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with highest effect. Then, you can move on generating all possible solutions (alternatives) for the problem.
- 41. Step 5: Evaluation of alternatives Use your judgement principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness of the judgement principles come into play. You need to compare each alternative for their positives and negatives. Step 6: Select the best alternative Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision since you have already followed a methodology to derive and select the best alternative.
- 42. Step 7: Execute the decision Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates. Step 8: Evaluate the results Evaluate the outcome of your decision. See whether there is anything you should learn and then correct in future decision making. This is one of the best practices that will improve your decision-making skills.
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