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MIS UNIT 1st

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What is Data?
Data is a raw and unorganized fact that required to be processed to make it meaningful. Data can be
simple at the same time unorganized unless it is organized. Generally, data comprises facts,
observations, perceptions numbers, characters, symbols, image, etc.
What is Information?
Information is a set of data which is processed in a meaningful way according to the given
requirement. Information is processed, structured, or presented in a given context to make it
meaningful and useful.
What is MIS?
MIS is the use of information technology, people, and business processes to record, store and
process data to produce information that decision makers can use to make day to day decisions.
According to Karen Heil, Management Information System is planned and organized approach
to supply executive with intelligence facts that facilitate the process.
A management information system (MIS) is a computer system consisting of hardware and
software that serves as the backbone of an organization’s operations. An MIS gathers data from
multiple online systems, analyzes the information, and reports data to aid in management decisionmaking.
The purpose of an MIS is improved decision-making, by providing up-to-date, accurate data on a
variety of organizational assets, including:
1. Financials
2. Inventory Management
3. Personnel / Human Resource
4. Project timelines
5. Manufacturing
6. Real estate
7. Marketing
8. Raw materials
9. Research & Development
Objectives of MIS: -
 Compare actual performance to expected performance.
 Facilitate efficient and timely managerial planning.
Reduce costs by highlighting time waste in the organization.
 Provide data about the performance of employees, management, products, services,
money, materials, and equipment.
 Highlight organizational strengths and weaknesses.
 Illuminate product- or material-quality problems in order to reduce material waste.
Applications for MIS:  Increased Profits
 Increased Quality
 Decreased Cost
Need of MIS: 
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Decision Making
Proper Communication
Time Management
Record Keeping
Scientific Management of Data
Effective Management
Profit Management / Cost Management
Pyramid Diagram of Organizational levels and information
requirements: -
1. Top Level Management (Strategic Management)
 Business Planning
 Policy Making
2. Middle Level Management (Tactical Management)
 Explore way to execute the plan in effective way.
3. Lower-Level Management (Operational Management)
 Executes the plan.
Types of Information System: Types of Information System that a user uses depends on their level in an Organization. The given
diagram shows the 3 major levels of users in an organization and the type of Information System
that they use.
1. Decision Support System (DSS): - Decision Support systems are used by Top
Level managers to make semi-structured decision. The output from MIS used as input to
the decision support system.
DSS System also give data input from external sources such as current market forces,
competition etc.
Advantages of MIS: 
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Fast data processing and information retrieval
Improved data accuracy
Improved security
Reduced data duplication
Improved backup systems
Development of MIS: MIS provides reports to managers in custom formats which is most appropriate for their specific
use. It helps in the planning, controlling and decision making at the management level.
A good MIS has to be adaptable. It should grow with business needs. It should be flexible. Its
individual part should be independently upgradable without disrupting the entire system.
There are following steps are involved in the development of MIS for a business organization: 
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Defining and analyzing various types of decisions (Planning)
Comparison of cost and benefits of the system
Pretesting of systems and training of operators
Proper planning for storage of Information
Mechanism of gathering and processing of data.
Proper arrangement for dissemination of Information
Review of MIS at periodical intervals
Organization for MIS: Organization has been conceptualized as having different forms like that of a machine and
organism, coercive system, and culture.
MIS has been described as a pyramidal structure with 4 levels of Information resources (EIS –
Executive Information System, DSS – Decision Support System, MIS – Management Information
System, and TPS – Transaction Support System).
The levels of Information would depend upon the organizational structure.
Thus, MIS as a support system draws upon:  Concepts of organization
 Organizational Theories (Principles, Structures, Behavior and Process such as
Communication Power and Decision Making).
 Motivational and Leadership behavior
Davis and Olson (1984) analyzed the implications of different characteristics of the organizational
structure on the design of information systems (Table 1).
Information Requirements for MIS: A first step in designing and developing an MIS is to assess the information needs for decision
making of management at different hierarchical levels, so that the requisite information can be
made available in both timely and usable form to the people who need it. Such assessment of
information needs is usually based on personality, positions, levels, and functions of management.
These determine the various levels of information requirements.
Table 1: Organizational structural implications for information
systems
Concept
Implications for Information Systems
Hierarchy of authority A tall hierarchy with narrow span of control requires more formal control
information at upper levels than a flat hierarchy with wide span of control.
Specialization
Information system applications have to fit the specialization of the
organization.
Formalization
Information systems are a major method for increasing formalization.
Centralization
Information systems can be designed to suit any level of centralization.
Modification of basic Information systems can be designed to support product or service
model
organizations, project organizations, lateral relations, and matrix
organizations.
Information model of Organizational mechanisms reduce the need for information processing
organization
and communication. Vertical information systems are an alternative to
lateral relations. Information systems are used to coordinate lateral
activities.
Organizational culture Organizational culture affects information requirements and system
acceptance.
Organizational power Organizational power affects organizational behavior during information
system planning, resource allocation and implementation. Computer
systems can be an instrument of organizational power through access to
information.
Organizational growth The information system may need to change at different stages of growth.
Goal displacement
When identifying goals during requirements determination, care should be
taken to avoid displaced goals.
Organizational
Suggests need for information system design for efficiency measures to
learning
promote single loop learning and effectiveness measures for double loop
learning.
Project model of
Describes general concepts for managing change with information system
organizational change projects.
Case for stable system Establish control over frequency of information system changes.
Systems that promote Reporting critical change variables, organizational change, or
organizational change relationships, and use of multiple channels in a semi-confusing system may
be useful for promoting responses to a changing environment.
Organizations as
Provides approach to requirements determination and job design when
socio-technical
both social and technical considerations are involved.
systems
System and user trainings for MIS: The personnel in the system must know in detail what their roles will be, how they can use the
system, and what the system will or will not do. The success or failure of well-designed and
technically elegant systems can depend on the way they are operated and used.
Systems operators must be trained properly such that they can handle all possible operations, both
routine and extraordinary. The operators should be trained in what common malfunctions may
occur, how to recognize them, and what steps to take when they come.
Training involves creating troubleshooting lists to identify possible problems and remedies for them,
as well as the names and telephone numbers of individuals to contact when unexpected or unusual
problems arise.
So, training provides all the information about procedures, systems, functions, features and method
of performance by which employee can make himself more skilled and competent for using the
system.
User Training Objectives:  Enable employees to do their own problem solving.
 It makes employees comfortable to operate equipment, troubleshooting the system problem
and determination of finding ideas to solve the problem.
 It provides fast mobilization for the organization in terms of user efficiency.
Training Guidelines: 
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Establishing measurable objectives
Using appropriate training methods
Selecting suitable training sites
Employing understandable training materials
Training Methods: 1. Instructor-led Training: - It involves both trainers and trainees, who have to meet
at the same time, but not necessarily at the same place. The training session could be one-onone or collaborative. It is of two types –
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Virtual Classroom
Normal Classroom
2. Self-Paced Training: 
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Multimedia Training
Web-based Training
3. Conversion: - It is a process of migrating from the old system to the new one. It
provides understandable and structured approach to improve the communication between
management and project team. Conversion methods are 4 types –
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Parallel Conversion: - In this conversion, Old and New systems are used
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Direct Cutover Conversion: - In this conversion, New system is implemented, and
Old system is replaced completely.
simultaneously.
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Pilot Approach:
across all users.
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Phase-In Method: - Working version of system implemented in one part of
organization based on feedback, it is installed throughout the organization all alone or
stage by stage.
- It Supports phased approach that gradually implement system
Top Management Support System (ESS/DSS/EIS): An Executive information system also known as Executive support system or Top management
information system or support system is a type of information system that facilitates and supports
executive information and decision-making needs. It provides easy access to internal and external
information relevant to organizational goals. It is commonly considered as specialized form of
decision support system.
Executive support system handle by the seniors, most managers directly in giving support to the
non-programed decisions in strategic management.
It helps in giving support to the internal and external information which are set for organizational
goals. This information found to be often external, unstructured, and even uncertain. The context of
such information provided cannot be known beforehand. This information is intelligence based
like –
 Market Intelligence
 Investment Intelligence
 Technology Intelligence
Examples of Intelligence Information: 
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External Database
Technology reports like patent records
Technical reports from consultants
Market reports
Confidential reports about competitors
Speculative information like market condition
Government Polices
Financial reports and information
Features of Executive Information System:  Personalized analysis
 Navigation of Information
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Graphical and Textual Information
Drill down capabilities.
Design with management critical success factor in mind
Status access, trend analysis, exceptional reporting
Advantages: 
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Easy for senior most executives
Ability to analyze trends.
Leadership capabilities
Enhancement of personal thinking and decision making.
Strategic control flexibilities
Investments of change
Increased educative time horizons.
Better reporting system
Improved office automations
Early identification
Detail Examination of critical success factors
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