Managemen t Information System

Management
Management is the coordination of all resources through the planning, organizing, directing and controlling in order to attain stated objectives. __Henry L. Sisk Management is the art and science of organising and directing human efforts applied to control the forces and utilize the materials of nature for the benefit of man. ___ American Society of Mechanical Engineers Management is multipurpose organ that manage a business and manages managers and manages workers and work. ___Peter

 Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. ___Harold Koontz and Cryill ODonnell Management is the art of knowing what you want to do and then seeing that is done in the best and cheapest way. ___F. W. Taylor To manage is to forecast and to plan, to organise to command, to coordinate and to control. ___Henry Fayol

 To Plan - Examining the future and drawing up a plan of action. The elements of strategy. To Organise - Build up the structure, both material and human, of the undertaking. To Command - Maintain the activity among the personnel. To Co-ordinate - Binding together, unifying and harmonizing all activity and effort. To Control - Seeing that everything occurs in conformity with established rule and expressed command.

5 Key functions of Management

There are only two levels in management functional & operational. But practically three levels are used.

Information
Information is data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective actions or decisions.

Attributes of Information
Accuracy Timely Availability Reliability Frequency Simplicity / Clarity Consistency Communication Presentation

System
A system is a set of interrelated, interdependent element or component, interlinked to achieve the determined goals or objectives.

Attributes of System
Basic Components: Various identifiable parts or subsystems that interact with each other to produce the desired results. Interaction and Structure: Relationship & interaction between different components. Goals: Purpose of the system to be in existence. Behavior: The way system reacts to its environment. Life Cycle: Phases in the life of existence of a system. Phases such as evolution, active life, maintenance aging and end of the system existence. Boundaries: Boundaries may be in the form of features, areas or constraints. Boundaries may be physical or logical. The area beyond the boundaries

Elements of the system

Input Process Output
Input Proce ss Contr ol

Outpu t

Feedbac k

Business System Model

Types of System
Deterministic and Probabilistic Systems A system is called deterministic when the inputs, process and the outputs are known with certainty. eg. movement of planets in solar system, invoicing system of a warehouse, A system is called probabilistic when the output can only be predicted in probabilistic terms. eg. Results after examination, sales forecasting, Open and Closed Systems A system is called open system if it interacts with the environment eg. any organisation, any system, A system that doesnt interact with environment it is called as closed system. eg. battery cell Physical and Abstract Systems Physical systems are the entities that operate either in dynamic or in static mode. Abstract systems represent the physical systems in conceptual expression.

Management Information System Definitions

A combination of human and computer based resources that result in collection, storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning. __Kelly. A system to convert data from internal and external sources into information and to communicate that information in an appropriate form to managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible. __Lucey.

Management Information System Definitions

A Management Information System is an integrated user-machine system for providing information to support operations, management, analysis and decision-making functions in an organization. __Davis & Olson. A set of capital and human resources that enable collection, storage and processing of data to produce and communicate relevant information to all levels of management to provide support in performing management related activities and decision making. __Dr. Milind Oka.

Need of MIS
Information is vital component for any organization. Information about internal operations as well as external environment in which organization functions is necessary for effective working of organization. Information is used as input for various managerial tasks such as planning, organising, controlling, decision making, etc.

Need of MIS
Information required for planning, decision making and managerial control differs in content, presentation, frequency & quality. Also differs from organization to organization. Collection & communication of required information in an organization appears very simple but practically it is very difficult as organizational functioning is complex.

Purpose of MIS
MIS have been in existence for centuries. As technology was developed the information system also changed according to technology. The characteristics of information generated through the information systems have been changing as per the needs. Through out the centuries,

Purpose of MIS
Increased competitiveness in the market place, globalization of resources, increased complexity of the business organization etc. are responsible for increasing the importance of information system. The main purpose of MIS is to provide the information support to the managerial functions within an organization.

Objectives of MIS
The objectives of the MIS in business organization are dependent on the factors specific to that particular organization. The factors may be organization size, geographic distribution, management style, culture of the organization, technology and market forces etc. The objectives of specific MIS may also related to business philosophy, organizational objectives,

Objectives of MIS
Some of the common objectives of every MIS are: To provide right & accurate information at right & lowest cost at right time. To ensure that managerial activities are provided adequate information support. To avoid information overload and to avoid generating redundant

Contemporary Approaches to MIS

Although information systems are a collection of electrical and mechanical devices, they require the organization, and the people that work within the organization for them to be successful. The contemporary approaches to information systems development could be broadly categorized into:

Contemporary Approaches to MIS

Technical Approaches Computer Science Management Science Psychology Operations Research Sociology

MIS

Economics Behavioral Approaches

Contemporary Approaches to MIS

Technical Approach The technical approach uses mathematical models to test the capabilities of information systems. These disciplines include: o Computer Science - concerned with methods of computability, computation, and data storage and access.

Contemporary Approaches to MIS

o Management Science emphasized the development of models for decision making, and management practices. o Operations Research - focuses on mathematical techniques for optimizing selected parameters of organizations. (inventory control, transaction costs).

Contemporary Approaches to MIS

Behavioral Approach o Deals with behavioral issues that arise in the development, and long term maintenance of the information system. o Different disciplines, such as psychologists, sociologists, Economists, study information systems, and the impacts they have in the organizational

Contemporary Approaches to MIS

o Behavioral changes can occur within the organization during, and after information system development. The key to this approach is to find the solution to the behavior, which is not a technical issue.

Information as a Strategic Resource

Operational Effectiveness means performing similar activities better than rivals do Strategic Positioning means performing different activities from rivals or performing similar activities in different ways

Information as a Strategic Resource

Organizations have competitive advantage when they provide more value to their customers or when they provide the same value to customers at a lower price The essence of strategy is choosing to perform activities differently than rivals do

Information as a Strategic Resource

Strategy concerns both organization and environment A basic premise of thinking about strategy concerns the inseparability of organization and environmentthe organization uses strategy to deal with changing environments

Information as a Strategic Resource

The substance of strategy is complex Because change brings novel combinations of circumstances to the organization, the substance of strategy remains unstructured, unprogrammed, non-routine, and nonrepetitive

Information as a Strategic Resource

Strategy affects overall welfare of the organization Strategic decisions are considered important enough to affect the overall welfare of the organization

Information as a Strategic Resource

Strategy involves issues of both content and process The study of strategy includes both the actions taken, or the content of strategy, and the processes by which actions are decided and implemented

Information as a Strategic Resource

Strategies are not purely deliberate Theorists... Agree that intended, emergent, and realized strategies may differ from one another Strategies exist on different levels Firms havecorporate strategy (What business shall we be in?) and business strategy (how shall we compete in each business?)

Information as a Strategic Resource

Strategy involves thought processes Strategy involves conceptual as well as analytical exercises. Some stress the analytical dimension more than others, but most affirm that the heart of strategy making is the conceptual work done by leaders of the organization