Data - Raw
material with which organization starts processing
Information – It is a product of data analysis.
Information is data or raw facts shaped into useful form for humans.
History
1. Process Data and Present It in the Form of Reports
The initial concept of MIS is to process data and present it
in the form of reports at regular intervals. The system was largely capable of handling the
data from collection to processing. 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 database and MIS based on Database proved much more effective.
2. Individual Oriented
It was more individual oriented, requiring each individual to
pick and choose the processed data and use it for his requirements.
3. Provoked a User to Take a Decision
As individuals may have different orientation towards
information. Thus, the concept of MIS was further modified that the system
should present information in such a form and format that it creates an impact
on the user, provoking a decision and an action or investigation.
4. Exceptional Reporting
As some sort of exceptional reporting is necessary in the
analysis and reporting; hence the concept of exception reporting was imbibed in
MIS.
5. Need Based Exceptional Reporting
Since the environment is competitive and s ever changing,
fixation of the norm for an exception becomes a futile exercise at least for
the people in the higher echelons of the organization. Hence the concept was
further evolved to handle need based exceptional reporting. This need may be
either of an individual or group of people.
6. Decision Making
When user of the information became independent of computer
professionals, the concept of MIS was changed to a decision making system.
The concept of MIS in
today’s world is a system which handles the databases, provides computing
facilities to the end user and gives a variety of decision making tools to the
user of the system.
Definitions
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 support to the operations, management
and 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.
Limitations of Legacy Systems
1. Takes time to search the data
In any organization a major portion of the time goes in data collection,
processing, documenting it to the people. Hence, a major portion of the overheads
goes into this kind of unproductive work in the organization
2. Require a difficult processing path
The information is a processed product to fulfill the needs of
the people. It takes time to search the data and may require a difficult
processing path.
3. Has a time value
Information has a time value and unless processed on time and
communicated, it has no value.
4. Scope & quantum of information is individual
dependent
The scope and the quantum of information is
individual-dependent and it is difficult to conceive the information as a
well-defined product for the entire organization.
5. Difficulty in Quality assurance due to human error
A human error is possible in conducting a transaction. Since
a human error is difficult to control, the difficulty arises in ensuring a
hundred per cent quality assurance of information in terms of completeness,
accuracy, validity, timeliness and meeting the decision
making needs.
Need for MIS
In order to get a
better grip on the activity of information processing, it is necessary to have
a formal system which should take care of the following points:
- Handling of a voluminous data.
- Confirmation of the validity of data and transaction.
- Complex processing of data and multidimensional analysis.
- Quick search and retrieval.
- Mass storage.
- Communication of the information system to the user on time.
Role of MIS
1. 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. Heart regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations.
2. 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.
3. The
MIS satisfies the diverse needs through a variety of systems such as
- Query Systems,
- Analysis Systems,
- Modeling Systems and
- Decision Support Systems
- Strategic Planning,
- Management Control,
- Operational Control and
- Transaction Processing
- transaction processing and answers their queries on the data pertaining to the transaction,
- the status of a particular record and
- references on a variety of documents.
- providing the operational data for planning, scheduling and control, and
- helps them further in decision making at the operations level to correct an out of control situation.
- short them planning,
- target setting and
- controlling the business functions.
It is supported by the use of the management tools of
planning and control.
8. The
MIS helps the top management in
- goal setting,
- strategic planning and
- evolving the business plans and their implementation.
9. The MIS plays the role of information
generation, communication, problem identification and helps in the process of
decision making. The MIS, therefore, plays a vital role in the management,
administration and operations of an organization.
Impact of the MIS
Since the MIS plays a very important role in the
organization, it creates an impact on the organization’s functions, performance
and productivity.
1. Creates an impact on the management
- With a good support, the management of marketing, finance, production and HR 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 manager’s 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 manager’s valuable time.
- The MIS begins with the definition of a data entity and its attributes. It uses a dictionary if data, entity and attributes, respectively, are 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 bringing clarity in the communication and understanding.
- Due to the transparency brought by MIS, peers can see the work done by an employee. The employee may feel insecure but this benefits the organization.
- Inefficient people will start working. And this will pull the entire organization in one direction towards the corporate goals.
- A well designed system with a focus on the manger makes an impact on the managerial efficiency.
- Initially managers used t waste lots of time in collecting data and other unproductive things. Now in MIS, everything is one the system.
- The use of computers enables him to use the tools modeling techniques which are impossible to use manually.
- This impacts managerial ability to perform and improves the decision making ability considerably.
MIS and User
Every person in the organization is a user of the MIS.
Clerk: Search the data, make statement
& submit it to the higher level
The main task of a clerk is to search the data, make a
statement and submit it to the higher level. A clerk can use the MIS for a
quick search and reporting the same to higher level.
Assistant: Collecting & organizing the data and conducting a rudimentary
analysis of it
Officer: Integrate & Analyze the data
and make comment if anything adverse is found
Officer is responsible for integrating the data from
different and disciplines, to analyze it and make a critical comment if
anything adverse is found.
Executive:
Is a decision maker. MIS offers the DSS to perform the task of execution
An executive plays the role of a decision maker. He works as
a planner. He is responsible for achieving the target and goals of the
organization. The MIS provides facilities to analyze the data and offers the
decision support systems to perform the task of execution. The MIS provides action-oriented
information.
Manager:
The manager has a position of responsibility and
accountability for the business results. He is a strategist and a long-term
planner. The MIS provides information in a structured or unstructured format
for him to take decisions.
Definition - Control
System is the process through which managers assure that actual activities
conform to the planned activities, leading to the achievement of the stated common
goals.
The control process measures progress towards the goals, and enables the manager to detect the deviations from the original plan in time to take corrective actions before it is too late.
The basic steps of the control process are shown
in the following figure. The management is a systematic effort to
- set the performance standards in line with the performance objectives,
- to design the information feedback systems,
- to compare the actual performance with these predetermined standards,
- to identify the deviations from the standards,
- to measure its significance and to take corrective actions in case of significant deviations
This systematic effort is undertaken through the management control system.
 |
| Control System |
What is Management?
Management: Mary Follett
defined management as “the art of getting things done through people.”
Manager: Manager is a
person who achieves the organizational goals by motivating others to perform,
and not doing himself.
Management (For MIS): It is defined
as a process of planning, organizing, staffing, coordinating and controlling
the efforts of the members of the organization to achieve command stated goals
of the organization.
Management principles are the statements of fundamental truth
based on logic which provides guidelines for managerial decision making and
actions. These principles are written by Henri Fayol (1841- 1925), France in
French. Later they were translated in English.
1. DIVISION OF WORK
- Division of work is the best way to use the human resources of the organization.
- It results in efficient use of resources and increases productivity.
- This is applicable to both managerial and technical functions.
- Discipline is absolutely necessary for the smooth running of the organization.
- Discipline means following rules, regulations, policies and procedures by all employees of organization.
- There must be clear and fair agreement for observing rules and regulations also punishment for disobedience and in discipline.
- An employee should receive orders from one supervisor only to avoid possible confusion and conflict i.e. any worker should not be under control of more than one supervisor.
- It avoids mistakes and delays in getting work done.
- Authority means right to give order or command.
- Responsibility is the obligation to achieve objectives.
- If authority is given to a person, he should also be made responsible.
- In a same way, if anyone is made responsible for any job, he should also have concerned authority.
- Authority without responsibility leads to irresponsible behavior whereas responsibility without authority makes the person ineffective.
- Retaining productive employees should always be a high priority of management.
- Employees work better if job security and career progress are assured to them and it is a symbol of sound management.
- Because time is required to become effective in new jobs, high turnover of employees should be prevented.
- Instability (high turnover) is a symbol of weak management.
- All the activities must be aimed at one common objective.
- The activities should be organized such that there should be one plan and one person in charge.
- This enables directions of efforts towards attainment of one goal.
- The interests of one employee or group should not be given importance over the interests and goals of organization.
8. REMUNERATION
- Compensation and the methods of compensation should be fair to both the employee and the employer. Exploitation of employees of any kind must be avoided.
9. EQUITY
- Employees are human beings.
- Employee's loyalty and devotion should be treated with kindness and justice.
- Organization's run best when managers are fair with their employees.
- Managers should encourage and develop the subordinates to take initiative.
- It is the result of creative thinking and imagination and helps in formulating, planning also its execution.
- Esprit de corps means spirit of co-operation.
- Since union is strength, harmony and team work are essential.
- These are prerequisites for better performance and effective organization.
12. THE DEGREE OF CENTRALIZATION
- The amount of power concentrated with the central management depends on company size.
- Centralization implies the concentration of decision making authority at the top management.
- Sharing of authority with lower levels is called decentralization.
- The organization should strive to achieve a proper balance.
- Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank.
- The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels.
14. ORDER
- It deals with orderly arrangement of men, material and other resources are necessary.
Steps in Management
The management process is executed through a variety of
decisions taken at each step of planning organizing, staffing, directing,
coordinating and control.
- The objective of the MIS is to provide information for a decision support in the process of management.
- It should help in such a way that the business goals are achieved in the most efficient manner.
- Since the decision making is not restricted to a particular level, the MIS is expected to support all the levels of the management in conducting the business operations.
- Unless the MIS becomes a management aid, it is not useful to the organization
Organization as a System
- A system is an assembly of elements arranged in a logical order to achieve certain objectives.
- The organization is also a system of people.
- The individuals in the organization are selected in terms of number quality and ability and are placed in hierarchical order to Plan and execute the business activities to achieve certain goals and objectives.
As the MIS takes away the work of search, collection, writing
and reporting the data, the work vacuum, so created is not easily filled, thus
creating a sense of insecurity.
The peon who was supposed to transfer files from one
department to next is no more required.
People with experience were asked to give their expert
advice. Now this area can be filled by Artificial Intelligence. To some extent
the importance of the person is lost, giving rise to a fear of non-recognition
in the organization.
Operational level managers feel that as their work is visible
to juniors, hence they may criticize what he has done and complaint the higher
authorities or will show case their talent and will get promoted.
Top level managers (strategists) don’t have to worry much.
Why MIS is an open System?
- MIS interacts with the environment to collect data.
- Data generated by MIS won’t be same over a period of time.
- Changes occurring in the environment are adapted and showcased in the reports generated by MIS.