Structure of MIS

Physical Structure and Conceptual structure

PHYSICAL STRUCTURE
The physical components of an MIS include
hardware, software, database, personnel and
procedures.

Hardware
All physical components of a computer system like
the central processing unit, input/output devices,
storage units and communication devices.
Communication can be over fibre-optic cables or
wireless networks.
Software
Software provides the interface between users and
the information system. Applications are developed
to accomplish a specific task. For users of MIS it is
much more important to understand the software
than the hardware. Software maintenance can take
50 to 70 percent of all personnel activity in the MIS
function. When the organization moves to implement
an advanced information system the hardware and
software environment becomes more complex.
Database
A database is a centrally controlled collection of
organized data. Central control reduces redundancy
and duplication of data. Data is stored in an
organized and structured way to facilitate sharing
and improve availability to those who need it. This
also improves efficiency of information retrieval.
Procedures
Three types of procedures are required for an MIS to
operate effectively: user instructions, instructions
for input preparation and operating instructions for
MIS personnel who maintain the MIS.
Personnel
The personnel in the MIS function include computer
operators, programmers, systems analysts and
managers. Human resource requirements should be
assessed by considering both the present system needs
and the future system growth. The quality of MIS
personnel is a key factor in its effectiveness. An MIS
manager needs a combination of both managerial and
technical skills.
Conceptual Structure of MIS
Conceptually MIS has been described as a pyramidal
structure, with four levels of information resources. The
levels of information would depend upon the
organizational structure. The top level supports strategic
planning and policy making at the highest level of
management. The second level of information resources
aid tactical planning and decision making for management
control. The third level supports day-to-day operations and
control. The bottom level consists of information for
transaction processing.
There are three important levels of management
namely:-

strategic management

management control or tactical management

operational management
Strategic Management
This is the top level management. Top level management
consists of board of directors and other chief executives.
 Top level management develops over all organizational
goals, strategies, policies and objectives.
 Strategic managers make decisions that affect the
entire organization.
 Their decisions may also leave a long term impact in the
organization.
 Decisions of this type are made over a long period of
time and usually involve huge investments.
Examples, Developing and introducing a new product in
the market, the opening of branches abroad, mergers or
acquisition etc.
Management Control or Tactical Management
 This is the middle level management and decisions involve
financial or personal consideration.
 They make wide ranging decisions for their subordinates
on the basis of general guide lines received from the top
level management.
 They develop medium range plans and defining objectives
of their departments.
 These managers are responsible for finding the best
operational measures to accomplish the strategic
decisions set by the top level management.
 They make plans and compare the actual performance
with standards. Then they determine variances if any and
take remedial measures to avoid them in future.
Operational Management
 This is the lower level management and deals
with routine activities.
 They make short term plans to carry out day to
day activities more effectively and efficiently.
 They are in charge of small group or subordinates.
 These managers implements policies handed over
to them by their superiors. With in these policies,
they make decisions that affect their small units
for a short period.

For example, preparation of pay roll and inventory

management.
MIS Structure based on Organisational Functions
The structure of MIS can also be described in terms of
organizational functions such as accounting, finance,
production, marketing, human resource management etc.
which make use of information.
MIS is a typically an integrated combination of functional
information systems. These subsystems are:-
 Production Subsystem
 Marketing Subsystem
 HR Subsystem
 Finance and Accounting Subsystem
 Logistics Subsystem
Production Subsystem
Production info system support the production function which
includes all activities concerned with the planning & control of the
processes that produce goods or services.
The typical info required at the transaction processing level is
production orders which is generally based on the sales orders
received by the company.
Operational control level requires detailed reports comparing
actual performance with the production schedule & identifies the
weak areas.
Management control requires a summary report which compares the
overall performance to actual performance.
Strategic planning is concerned with simplifying, automating,
integrating many of the activities needed to produce goods.
Marketing Subsystem
The marketing function of an organization is concerned with the
planning, promotion & sale of existing products in existing markets,
the development of new products and new markets to satisfy
existing and potential customers. The basic transaction is to be
processed at transaction processing level is customer’s orders &
prepares invoice & bills.
The operational control activity includes the day to day scheduling
of sales & promotional activities.
Managerial control level is concerned with comparison of overall
performance with the marketing plan. They require info relating
to customers, competitors etc.
At the strategic planning level consideration of new markets &
new product marketing strategies are the issues dealt.
Human Resource Subsystem
The HR Manager function is concerned with the recruitment,
placement, compensation & development of employees in an
organization. It mainly helps in record keeping & employee evaluation.
Every organization must maintain correct record of its employees.
Produce pay cheques & pay reports, maintain personal records &
analyse the use of personnel in business operation are the important
activities done at the transaction processing level.
Management control level conducts budget analysis, turnover analysis
etc. & showing the variances resulting from planned & actual
performance.
Strategic planning of personnel involved with the planning of
alternative strategies for recruiting, training & compensating
employees. In this regard they have to collect different type of info
from external sources.
Finance and Accounting Subsystem
Financial subsystem undertakes the function of arranging
adequate finance to the business at min cost.
 Transaction processing system engaged in the legal &
historical record keeping & produces financial statements.
 Management control level focuses on planning & control
of business operations & they compare the actual cost of
financial resources with the targeted cost.
 The strategic planning level for accounting & finance
involves in the long term strategies connected with
financial & accounting matters.
Logistics Subsystem
The logistic subsystem includes activities like purchasing,
receiving, inventory control & distribution. The transactions
to be processed are purchase requisitions, manufacturing
orders, receiving reports & shipping orders.
The operational control function make use of info
contained in reports like out of stock items, over stocked
items etc.
Managerial control level compares the planned & actual
inventory levels, cost of purchased items, etc.
At the strategic planning level analysis of new distribution
strategies, adoption of new policy towards the sellers are
some of the common tasks dealt.