Subject: Management Information System (M.Sc.IT- 4 )
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Note:
This question-bank contains three sections.
Section-A contains 1 mark Multiple Choice Objective type questions.
Section-B contains 5 marks subjective questions.
Section-A contains 10 marks subjective questions.
Section – A
[QUESTIONS 1 TO 100]
1 Mark Questions
[PAGE 1 TO 10]
MULTIPLE CHOICE OBJECTIVE TYPE QUESTION
Q1. Information systems are composed of __________ basic components.
A) four
B) three
C) two
D) many
Q2. The __________ can help you choose a product
A) office automation system
B) management information system
C) transaction processing system
D) decision support system
Q3. The expert system uses __________ to select the most appropriate response.
A) inference engine
B) decision support system
C) knowledge base
D) data source
Q4. An intranet that is accessible by outside workers.
A) firewall
B) extranet
C) management information system
D) P2PN
Q5. __________ is the capability to continue as if nothing has happened, even after a major
component failure.
A) redundancy
B) interoperability
C) fault tolerance
D) backup
Q6. When developers start to acquire equipment or software, the __________ stage of the SDLC has
been reached.
A) development
B) design
C) implementation
D) needs analysis
Q7. A __________ implementation will involve employees utilizing one part at a time.
A) parallel
B) direct
C) phased
D) pilot
Q8. Adding new features is typically performed during the __________ phase.
A) implementation
B) needs analysis
C) development
D) maintenance
Q9. Senior managers but not end users participate during the __________ sessions for RAD.
A) needs analysis
B) joint requirements planning
C) joint applications design
D) object oriented system analysis
Q10. Analyzing the current system is performed during the __________ phase.
A) development
B) design
C) implementation
D) needs analysis
Q11. In __________, team members start with the big picture and move to the details.
A) top-down design
B) bottom-up design
C) object oriented system analysis
D) rapid application design
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Subject: Management Information System (M.Sc.IT- 4 )
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Q12. Many teams use working models called __________ to explore the look and feel of screens with
users.
A) demos
B) prototypes
C) objects
D) designs
Q13. In the needs analysis section of the SDLC (Software developer life cycle) , the __________
typically defines a need for a new system
A) manager
B) system analyst
C) user
D) technical writer
Q14. This phase of the SDLC may involve a small group of testers.
A) maintenance
B) needs analysis
C) implementation
D) development
Q15. Which information attribute would last month's electrical bill be classified as?
A) Space
B) Form
C) Location
D) Time
Q16. Which of the following terms is used to describe the computer-based tools used by people in an
organization to support their information processing needs?
A) Information Technology
B) User Systems
C) Artifacts
D) Computer Tools
Q17. Which term refers to the extent of detail provided in information? For instance, some information
may provide summary information while others may provide a great amount of detail.
A) Information Depth
B) Aggregate Data
C) Information Granularity
D) Data Detail
Q18. Which of the following is included in the organizational perspective of information?
A) Time
B) Flow
C) Process
D) Form
Q19. Which organizational layer is responsible for developing the goals and strategies as outlined by
the top-most level of management?
A) Tactical management
B) Strategic management
C) Operational management
D) Non management employees
Q20. Which of the following is collective information about customers, competitors, business partners,
competitive environments, and internal operations?
A) Aggregate Data
B) External Knowledge
C) Business Intelligence (BI)
D) Information Granularity
Q21. What type of system manages and analyzes the buying habits of purchasers?
A) Decision support systems
B) Tactical systems
C) Customer relationship management systems
D) Knowledge base systems
Q22. Which person oversees an organization's entire information system?
A) CTO
B) CSO
C) CIO
D) CPO
Q23. What part of the database stores information about the data?
A) Data dictionary
B) Data depository
C) Data warehouse
D) Administrative data systems
Q24. Which of the following systems helps you with making a decision about a non-structured
problem?
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Subject: Management Information System (M.Sc.IT- 4 )
A) Artificial intelligence
C) Genetic algorithm
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B) Neural network
D) Decision support system
Q25. What term refers to the structure, and substructures, of an organization's information systems?
A) Subsystems
B) System formations
C) IT Configurations
D) Infrastructure
Q26. When there is little or no exchange of information within an organization's information systems,
we say that the systems are _____.
A) independent
B) autonomous
C) self-sufficient
D) decentralized
Q27. What is DSS?
A. Decision support system
C. Decision support software
B. Decision system software
D. Decision software system
Q28. The person who pioneered the field of DSS
A. F.W. Taylor
B. Morgan
C. Mintzberg
D. Herbert Simon
Q29. The pioneer in identifying organizations
A. F.W. Taylor
B. Morgan
C. Mintzberg
D. Herbert Simon
Q30. When two or more people work in a structured or unstructured environment to achieve a
common goal using resources:
A: Co-ordination
B: Organization
C: System
D: Management
Q31. The person responsible for management of data and assigning of roles, rights and authority to
users:
A: DBA
B: CIO
C: System analyst
D: MIS manager
Q32. 3-stages in Simon’s Model:
A: Analysis, Design and Implementation
B: Investigation, Design and Implementation
C: Intelligence, Design and Choice
D: Intelligence, Design and Selection
Q33. Operational information is used by:
A: Top level management
C: Low level management
B: Middle level management
D: All of the above
Q34. The information which helps the middle-level management:
A: Strategic Information
B: Tactical information
C: Operational information
D: All of the above
Q35. The cost involved and the benefits obtained from information is determined by:
A: Economic Dimension
B: Business Dimension
C: Technical Dimension
D: All of the above
Q36. Processed data is known as:
A: Finished product
C: Output
B: Information
D: None of the above
Q37. The systems whose transactions are not defined at the processing level:
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Subject: Management Information System (M.Sc.IT- 4 )
A: Closed
C: Abstract
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B: Black-Box
D: Probabilistic
Q38. The system whose output is influenced by the behavior of the system:
A: Closed
B: Black-Box
C: Abstract
D: Probabilistic
Q39. The element of a system that is used to control the information system:
A: Input
B: Output
C: Feedback
D: Processing
Q40. The collation of output from sub-systems to produce the desired output:
A: Collection
B: Integration
C: Assembly
D: None of the above
Q41. Division of a system into various sub-systems:
A: Classification
B: Decomposition
C: Categorization
D: None of the above
Q42. When a system can be developed given the technical possibility, resource constraints and
organizational desirability, it is said that the system is:
A: Feasible
B: Desirable
C: Constructible
D: Implemental
Q43. The feasibility of a system which refers to the viability of the system, is called:
A: Operational Feasibility
B: Economic Feasibility
C: Technical Feasibility
D: Legal Feasibility
Q44. A formal document which specifies the requirements of the system:
A: SRS
B: Tender
C: Invoice
D: Questionnaire
Q45. _______ bridges the gap between the user and a developer
A: SRS
B: Tender
C: Invoice
D: Questionnaire
Q46. The tool which graphically represents the flow of data:
A: Network Diagram
B: Gantt chart
C: Data Flow Diagram
D: None of the above
Q47. The locations where data-structures are temporarily stored:
A: Register
B: Data-stores
C: RAM
D: None of the above
Q48. Data structures in motion are called:
A: Data-flows
C: Data-in-action
B: Data-in-motion
D: None of the above
Q49. The logic of a process which is not clear by data-dictionary, is expressed through:
A: Decision Table
B: Decision Tree
C: Flowchart
D: DFD
Q50. A matrix representing conditions and actions:
A: Decision Table
B: Decision Tree
C: Flowchart
D: DFD
Q51. A Decision Table has _____ (number) quadrants:
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Subject: Management Information System (M.Sc.IT- 4 )
A: Four
C: One
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B: Two
D: Eight
Q52. The symbol used to represent a process in a DFD:
A: Circle
B: Arrow
C: Square
D: Open Rectangle
Q53. The symbol used to represent a data-store in a DFD:
A: Circle
B: Arrow
C: Square
D: Open Rectangle
Q54. When logic is represented using if-then-else statements, the structured analysis tool used is:
A: Algorithm
B: Structured English
C: Logical English
D: Decision Table
Q55. The smallest unit of data that can not be further decomposed:
A: Atom
B: Data element
C: Fundamental data
D: Atomic data
Q56. A group of data-elements handled as a single unit:
A: Data-structure
B: Structure
C: Data-repository
D: Data-store
Q57. System constraints are known as:
A: System restrictions
C: Problem boundaries
B: System boundaries
D: Constraint boundaries
Q58. The constraints posed by govt. are what type of constraints:
A: Outside
B: Inside
C: External
D: Internal
Q59. Information systems that monitor the elementary activities and transactions of the organizations
are:
A: Management-level systems.
B: Operational-level systems.
C: Knowledge-level systems.
D: Strategic-level systems.
Q60. Decision support systems usually:
A: Serve managers interested in weekly, monthly, and yearly results, not day-to-day activities.
B: Help managers make decisions that are unique, rapidly changing, and not easily specified in
advance.
C: Provide managers with a generalized computing and telecommunications capacity that can be
applied to a changing array of problems
D: Perform and record the daily routine transactions necessary to the conduct of business.
Q61. The automation of attendance keeping, payroll preparation and applicant tracking are some of the
activities carried out at the _______ level.
A: Management information system
B: Decision support system
C: Electronic data processing
D: None of the above
Q62. The simulation of a situation is the uniqueness of the _______ model
A: Management information system
B: Decision support system
C: Electronic data processing
D: None of the above
Q63. Which of the following is/are the sub-system(s) of HRIS?
A: Position control and budgeting system
B: Compensation management system
C: Performance management system
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D: All of the above
Q64. When the modules in a system have minimum dependence on each other, the process is known
as:
A: Cohesion
B: De-coupling
C: Coupling
D: Independence
Q65. When the statements in a module, relate to only a single task:
A: Cohesion
B: De-coupling
C: Coupling
D: Independence
Q66. The Problem-partitioning method of system design follows the strategy of:
A: Logical approach
B: Structured Approach
C: Divide and Conquer Approach
D: None of the above
Q67. The output could be presented in the following form:
A: Tabular
B: Graphical
C: Tabular or Graphical
D: Diagrammatic
Q68. _____ is the rate at which a system performs its job per unit time.
A: Response-time
B: Throughput
C: Run-time
D: Output-time
Q69. The tool used to display a timeline on which the activities in a system are performed:
A: Gantt Chart
B: Network Diagram
C: DFD
D: Graphical Diagram
Q70. The tool used in the present days to perform testing of MIS:
A: CAD
B: CAM
C: CASE
D: All of the above
Q71. _____ are used to input/output data from MIS:
A: Reports:
B: Forms
C: Computer
D: None of the above
Q72. After the deciding the______ , the process of purchasing hardware/software starts.
A: MIS needs
B: SRS
C: MIS design
D: MIS organization
Q73. A tender invited through advertisement in the newspaper is called:
A: Public Tender
B: Limited Tender
C: Closed Tender
D: Open Tender
Q74. When MIS is repaired according to some organizational changes, the type of maintenance is
called:
A: Corrective
B: Adaptive
C: Perfective
D: Testing
Q75. When MIS is repaired according to some performance failures, the type of maintenance is called:
A: Corrective
B: Adaptive
C: Perfective
D: Testing
Q76. A mechanism which provides the verification of constituent objects of the application and overall
system performance is called:
A: Review testing
B: Stress testing
C: Security Testing
D: Recovery Testing
Q77. When MIS is repaired to enhance its performance, the type of maintenance is called:
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Subject: Management Information System (M.Sc.IT- 4 )
A: Corrective
C: Perfective
Q78. RFP is short for:
A: Review For Performance
C: Requirement For Perfection
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B: Adaptive
D: Testing
B: Request For Proposal
D: Review For Perfection
Q79. The cost incurred on a product whose monetary value can be calculated:
A: Intangible cost
B: Tangible cost
C: Direct cost
D: Indirect cost
Q80. A mix of different structures suitable for tackling important changes in the environment:
A: Collective structure
B: Data-structure
C: Matrix structure
D: Mix-structure
Q81. The systems which integrate all the processes and help plan the resources of an organization:
A: EDP
B: ERP
C: DSS
D: MIS
Q82. The integration of information systems within a functional area of business:
A: Hierarchical integration
B: Horizontal integration
C: Vertical integration
D: Cross-functional integration
Q83. The element which contains information about the data that is stored in the database:
A: Meta Data
B: Data Store
C: Data Register
D: None of the above
Q84. One of the components of BES:
A: Knowledge Base
C: Word processing
B: Decision Tree
D: None of the above
Q85. The matrix used as a method of presenting data in data-analysis:
A: Pay-in Matrix
B: Pay-out Matrix
C: Pay-with Matrix
D: Pay-Off Matrix
Q86. The criterion of rationality is also known as:
A: Criterion of optimism
B: Criterion of pessimism
C: LapLace criterion
D: LapOff criterion
Q87. Maximin Rule is also known as:
A: Criterion of optimism
C: LapLace criterion
B: Criterion of pessimism
D: LapOff criterion
Q88. Reports based on rules and statutes primarily meant for external consumption:
A: Scheduled Reports
B: Summary Reports
C: Predictive Reports
D: Statutory Reports
Q89. A system which is a collection of interdependent ideas:
A: Open Systems
B: Logistic Systems
C: Abstract Systems
D: Probabilistic Systems
Q90. _______ is the time taken by a system to react to a given input:
A: Response-time
B: Throughput
C: Run-time
D: Output-time
Q91. _____ method of system design refers to its complete conceptualization:
A: Top-Down design
B: Physical design
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C: Logical design
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D: Structured Design
Q92. In the Nolan’s six-stage model, the stage in which the organization moves towards online
systems:
A: Initiation
B: Formalization
C: Control
D: Contagion
Q93. A cost-benefit analysis technique that is used in a variety of planning applications:
A: Steering Committees
B: Portfolio Approach
C: Return On Investment
D: Charge Out
Q94. The person responsible for analysis, designing and implementing systems to fulfill organizational
needs:
A: CIO
B: System Analyst
C: Manager-MIS
D: CEO
Q95. The term in planning which refers to the purpose of the existence of an organization:
A: Mission
B: Objective
C: Aim
D: Strategy
Q96. The system meant for top-level managers which are concerned with decisions related to strategy
formulation:
A: Strategic Information System
B: Strategic Level System
C: Strategic Information Software
D: Strategic Level Software
Q97. The system which provides competitive advantage and is used at all level of the organization:
A: Strategic Information System
B: Strategic Level System
C: Strategic Information Software
D: Strategic Level Software
Q98. A concept in Physics which is a measure of degree of randomness in a system:
A: Entropy
B: Energy
C: Probability
D: Equation
Q99. The leveraging technology in the value chain, is also known as:
A: Taylor’s Value chain model
B: Morgan’s Value chain model
C: Simon’s Value chain model
D: Porter’s Value chain model
Q100. The stimulus response theory helps in:
A: Organizational change
B: Organizational learning
C: Organizational performance
D: None of the above
Answers
1. B
2. D
3. A
4. B
5. C
6. A
7. C
8. D
9. B
10. D
11. A
12. B
13. C
14. C
15. D
16. A
17. C
18. B
19. B
20. C
21. C
22. C
23. A
24. D
25. D
26. D
27. A
28. D
29. B
30. B
31. A
32. C
33. C
34. B
35. A
36. B
37. B
38. D
39. C
40. B
41. B
42. A
43. D
44. A
45. A
46. C
47. B
48. A
49. B
50. A
51. A
52. A
53. D
54. B
55. B
56. A
57. C
58. C
59. B
60. B
61. C
62. A
63. D
64. B
65. A
66. C
67. C
68. B
69. A
70. C
71. B
72. C
73. D
74. B
75. A
76. D
77. C
78. B
79. B
80. C
81. B
82. B
83. A
84. A
85. D
86. C
87. B
88. D
89. C
90. A
91. C
92. D
93. C
94. B
95. A
96. B
97. A
98. A
99. D
100. B
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Ph. 0175-2205100, 2215100
Subject: Management Information System (M.Sc.IT- 4 )
Section – B
[QUESTIONS 1 TO 39]
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5 Marks Questions
[PAGE 11 TO 40]
Q1. Explain management information as a concept.
Ans. Management Information System is acronym of three words Management, Information and System. In
order to fully understand the term MIS , these three words need to be understood:
Management : management is the art of getting things done through and with the people in formally
organized groups. Manager does it by performing different functions in a systematic way. The basic
managerial functions are:
Managerial functions
Planning: planning is setting goals and objectives and deciding policies, procedures, rules, programs,
budgets and schedules to achieve the plan.
Organising: It is the process of identifying the entire job, dividing the job into convenient tasks, allocating sub
jobs to persons or groups of persons so that job is carried out as planned.
Staffing: It is the process of putting the right person at the right job.
Directing: Directing is in order to achieve pre-determined goals and objectives, people manning the
organisation have to be guided, motivated and lead by manager.
Controlling: It involves the performance of work by setting performance standards and avoiding deviations
from standards.
Information
Information, the second component in the term Management Information, system, is considered as valuable
resource required by the management in order to run a business organization. Information is data that is
processed and is presented in a form, which assists decision-makers. It may contain an element of surprise,
reduce uncertainty or provoke a manager to initiate an action. Whereas data is a term used for raw figures,
facts, and symbols etc. that are currently not being used in a decision-making process. Data usually takes the
form of historical records. In contrast to information, raw data may not may not be organized and may not add
anything to our knowledge.
The relation of data to information is that of raw material to finished product, as depicted in the following
diagram.
Data
Processing
Information
System: A system may be defined as a set of elements, which are joined together to achieve a common
objective. The elements are inter-related and interdependent. Further, every system is said to be composed of
sub-systems, which in turn are made up of other sub-systems.
The set of elements for a system may be understood as Input, Process and Output. A system has one or
multiple input (s). These input(s) are processed through a transformation process to convert the input(s) into
output(s).
Input
Process
Output
Fig: Elements of the System
Q2. Describe the MIS structure based on the physical components.
Ans. Structure of MIS may be understood by looking at the physical components of the information system
in an organization. The physical components of an organizational information system may be hardware,
software, database, manual procedures and operating persons. These components can be briefly explained
as follows:
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Hardware: Hardware refers to the physical data processing equipment and peripheral devices, For example,
CPU, monitor, keyboard, printer, drives, tapes, communication devices, etc.
Software : Software is a broad term given to the instructions or programs that direct the operating of the
hardware. Software could be of two types, i.e. system software and application software.
Database: The database consists of all data utilized by application software. Data is stored in files.
Procedures: Formal operating procedures, which are required to operate a system, such as manuals, are
also regarded as physical elements.
Operating Personnel: Personnel like Computer Operators, Computer Programmers, System Analysts,
System Managers, etc., are the operating people of the information systems.
Input and Output: Various physical inputs and outputs from the information system, existing in forms like
printout, reports etc.
.Q3. Explain briefly the different functional information systems.
Ans. Functional Information System is based on the various business functions such as Production,
Marketing, Finance and Personnel etc. These departments or functions are known as functional areas of
business. Each functional area requires applications to perform all information processing related to the
function. The popular functional areas of the business organization are:
(i) Financial Information System
(ii) Marketing Information System
(iii) Production/Marketing Information System
(iv) Human Resource Information System
Financial Information System:
Financial information system is a sub-system of organizational management information system. This subsystem supports the decision-making process of financial functions. This function helps to measure the value
of an organization in monetary terms using several accounting, costing and mathematical tools. Financial
management includes the following:
 Working capital management
 Receivables and Payables Management
 Budgeting
 Capital Expenditure Management
 Auditing
 Managing External Borrowings
Marketing Information System
This sub-system of management information system provides information about various functions of the
marketing system of an organization. Marketing is another functional area of the business organization, which
is engaged in marketing (selling) of its products to its customers.
Important sub-activities of the marketing process include the following.
 Sales
 Advertising
 Publicity
 Product management
 Customer Relationship management
 Marketing Research
 Pricing
 Packaging
Operations Information System
This system provides information on production /operational activities of an organization and thus facilitates
the decision-making process of production managers of an organization. It helps the manager to manage
various activities relating to the creation of a product or service, The main decisions to be taken in
manufacturing system are:
 Production management

Maintenance management

Quality Control

Project management

Inventory management
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Human Resources Information System
The most precious asset of an organization is its people. Managing them well leads to growth and prosperity.
This functional information system supports the functions of human resource management of an organization.
The human resource management function, in its narrow sense, it also known as personnel management
.The function involves:
 Recruitment
 Training and development
 Compensation and benefits management and
 Performance evaluation
Q4. Explain the Simon’s model of decision-making.
Ans. Decision-making, in organizations, is regarded as a rational process. Herbert Simon has given a
model to describe the decision–making process. The model comprises of three major phases, namely.
i) Intelligence
ii) Design, and
iii) Choice
The Simon’s model can be shown with the help of the following diagram:
Intelligence
Decision
Insufficient Data
Choice
No Satisfactory Solution
Intelligence Phase: In this phase, the decision maker scans the environment & identifies the problem or
opportunity. The scanning of environment may be continuous or non-continuous. Intelligence phase of
decision-making process involves:
a. Problem Searching
b. Problem Formulation
Problem Searching: For searching the problem, the reality or actual is compared to the standards. Differences
are measured & the are evaluated to determine whether there is any problem or not.
Problem Formulation: When the problem is identified, there is always a risk of solving the wrong problem. In
problem formulation, establishing relations with some problem solved earlier or an analogy proves quite
useful.
Design Phase: In this phase, the decision maker identifies alternative courses of action to solve the problem.
Inventing or developing of various alternatives is time consuming and crucial activity, as the decision maker
has to explore all the possible alternatives.
Choice Phase: At this stage, one of the alternatives developed in design phase is selected & is called a
decision. For selecting an alternative, detailed analysis of each and every alternative is made. Having made
the decision, it is implemented. The decision maker in choice phase may reject all the alternatives and return
to the design phase for developing more alternatives.
Q5. Explain each type of management report.
Ans. A data-driven manager achieves his tasks through reports. These report give the manager an idea
whether the activities in his sphere are proceeding according to his expectations. Also they give an insight
into some larger problems which the organization might be facing.
Reports are of the following types:
1. Scheduled reports- These are the reports which are generated regularly. They could be daily reports,
weekly reports, monthly reports, etc. They contain the latest information and help the manager to understand
and analyze the information in the context of recent past. These reports are the first line of reports and
normally the first sign of problems or opportunities can be understood by surfing through these reports.
2. On-demand reports-these types of reports are unscheduled in nature and are created when the manager
needs such reports. They help in analyzing a particular issue in a great degree of granularity. These reports
are generally the result of reaction to any event.
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3. Exception reports- In management, exceptions warrant greater attention than any normal event.
Exception reports are special reports which indicate to the manager that some control needs to be exercised
to bring an issue under control.
4. Predictive reports- these are special reports which give the manager a sneak preview of the future.
These reports give a scenario of the future and are very useful for the purpose of planning.
5. Summary reports- These are general reports which aggregate data and provide summarized information
to the manager so that he may get a macro view of an issue.
6. Regulatory and statutory reports- these reports are created under the obligations to follow rules and
statutes. They are primarily meant for external consumption or information needs of regulatory bodies.
Q6. What are the different types of decisions?
Ans. organizational decisions differ in a number of ways. The following basis are used to classify the
decisions:
Purpose of Decision-making
On the basis of the purpose of decision-making activities, the organizational decisions are divided into 3
categories:
 Strategic Planning Decisions: Strategic planning decisions are those decisions in which the decisionmaker develops objectives and allocates resources to achieve these objectives. Such decisions are taken by
strategic planning level (top level) managers.
 Management Control Decisions: Management control decisions are taken by management control level
(middle level) managers and deal with the use of resources in the organization.
 Operational Control Decisions: Operational control decisions deal with the day-to-day problems that affect
the operation of the organization. These decisions are taken by the managers at operational level (bottom
level) of the organization.
Levels of Programmability
Simon, on the basis of level of the programmability of a decision, proposed two types of decisions:
 Programmed, also known as structured decisions
 Non-programmed, also known as unstructured decisions.
Programmed/Structured Decisions: Programmed or structured are those decisions, which are well defined
and some specified procedure or some decision rule might be applied to reach a decision. Such decisions are
routine and repetitive and require little time for developing alternatives in the design phase. Programmed or
structured decisions have traditionally been made through habit, by operating procedures or with other
accepted tools.
Non-programmed /Unstructured Decision : Decisions, which are not well defined and have not pre-specified
decision procedure rule, are known as unstructured or non-programmed decisions.
Knowledge of Outcomes: Another approach to classifying decisions is the level of knowledge of outcomes.
An outcome defines what will happen, if a decision is made or course of action taken. When there is more
than one alternative, the knowledge of outcome becomes important. On the basis of the level of knowledge of
outcomes, decision-making can be classified into three categories.
 Decision under certainty: Decision-making under certainty takes place when the outcome of each alternative
is fully known. There is only one outcome for each alternative.
 Decision under risk: Decision-making under risk occurs when there is a possibility of multiple outcomes of
each alternative and a probability of occurrence can be attached to each outcome.
 Decision under uncertainty: Decision-making under uncertainty takes place when there are a number of
outcomes for each alternative & the probabilities of their occurrences are not known.
Q7. Office Automation systems have gained a greater importance in recent years. Justify the
statement and identify different types of OAS.
Ans. Office automation refers to the application of computer and communication technology to office functions.
Office automation systems are meant to improve the productivity of managers at various levels of
management by providing secretarial assistance and better communication facilities. Office automation
system is the combination of hardware, software and people in information system that process office
transactions and support office activities at all levels of the organization. These systems include a wide range
of support facilities, which include word processing, electronic filing, electronic mail, message switching, data
storage, data and voice communications, etc.
Office activities may be grouped under two classes, namely.
1) Activities performed by clerical personnel (clerks, secretaries, typists, etc) and
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2) Activities performed by the executives (manages, engineers or other professionals like economists,
researchers etc.)
In the first category, the following is the list of activities performed:
a) Typing
b) Mailing
c) Scheduling of meetings and conferences,
d) Calendar keeping and
e) Retrieving documents
The following is the list of activities in the second category (managerial category)
a) Conferencing
b) Production of information (messages, memos, reports, etc) and
c) Controlling performance
As already discussed, information technology facilitates both types of activities. A wide variety of office
automation devices like fax machine, copier, phones etc. are used in the office.
Some of the applications of office automation systems are as follows:
WORD PROCESSING
This refers to the computer–assisted preparation of documents (like letters, reports, memos, etc) from textual
data. Data once entered can be manipulated in various ways.
ELECTRONIC FILING
This facilitates the filling of incoming and outgoing mail/documents on electronic media. Information is
captured from the documents and is stored for future reference.
ELECTRONIC MAIL
It involves the transfer of letters and other documents through telecommunication lines, rather than through
physical delivery. An electronic mail system requires a telecommunication network and software.
Q8. With a suitable example, give an application of decision analysis.
Ans. The decision theory (decision analysis) refers to the techniques for analysis decisions under risk and
uncertainty. In the process of decision-making the decision –maker wants to achieve something, which may
be called his goal, purpose or objective. The decision –maker may choose one particular alternative, which is
called strategy of the decision maker, from among various alternatives. All alternative and outcomes are
assumed to be known. There are certain factors, which affect the outcome for different strategies. But these
factors or conditions, also called 'states of nature, are beyond the control of the decision-maker. The strategy
(alternative) along with the state of nature determines the degree to which the goal is actually achieved. A
measure of achievement of the goal is called the 'Pay-off'
The pay-off matrix is used as method of presenting data in decision – analysis. Each cell, which is an
intersection of a strategy and a state of nature, contains the pay-off.
Strategies
States of nature
N1
N2
N3
N4
S1
S2
S3
If the state of nature is known with certainty, the decision –maker is required only to select the strategy that
provides him the highest pay-off.
Let us explain the concept of the pay-off matrix by taking an example.
Assume that a marketing manager of a computer manufacturer is to choose from three alternatives.
1) Modify the existing PC to improve its design and processing power.
2) Launch a new PC having latest technology.
3) Do nothing, i.e. leave the PC as it is.
There are three states of nature that affect the pay-off from each of the alternative strategies. These states of
nature are:
i) A competitor may launch a new PC with latest technology.
i) The government may impose high-excise duty on the manufacture of PCs and reduce excise to minimum
on laptops to encourage the use of laptops.
iii) Condition will remain the same as they are.
The various pay-offs (profit or loss) from the combination of a strategy and a state of nature are given in the
pay-off matrix in fig.
Strategies
States of nature
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Same
condition
S1 Modify
7
New
Competitor
0.40
5
Govt.
0.20
S2New
product
S3Do nothing
10
3
-13
5
1
-2
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Ban
-5
It can be seen that there are three states of nature whose probabilities of occurrence is know. This problem
situation is called decision under risk. The probabilities represent the likelihood of occurrence of the specific
states of nature, either based on historical data or on personal judgment of the decision-maker. In the above
example, the expected value (EV) of each strategy is:
EV of S1= (7) (0.40)+(5)(0.40)+(-5)(0.20)
=2.8+2.0-1.0=3.8
EV of S2= (10)(0.40)+(3)(0.40)+(-13)(0.20)
=4.0+1.2-2.6=2.6
EV of S3= (5)(0.40)+(1)(0.40)+(-2)(0.20)
=2.0+0.4-0.4=2.0
The maximum expected value 3.8 lakhs is found to be of the option to modify and if the decision is made
based on the expected value objective function, the strategy S1 i.e. to modify the existing PC will be selected.
Q9.
What is understood by the term MIS. How does it assist managers in their day-to-day
functioning?
Ans.
Management Information System(MIS) is a term used to refer to a class of information systems
which provides the management with the information required for decision making. An MIS is not a monolithic
entity but a collection of systems which provides the user with a monolithic feel. The different subsystems
working in the background have different objectives but work in concert with each other to satisfy the overall
requirement of managers for good quality information.
Management is the unseen force that drives an organization. It is the life-blood of an
organization.Management is divided at different levels depending on their authority and at each level
information is needed for proper functioning.
The MIS plays an important role in supplying the needed information required by managers at different
levels. It helps by providing accurate,reliable and timely information on the basis of which important dsecisions
could be taken. Also the MIS takes care that only the relevant information is provided at each cadre of
management,i.e. only that information is provided at a specific managerial level which is needed at that level.
The different categories of tasks which a manager needs to perform are:
Planning,staffing, controlling, organizing and leading.
Different managers at different levels have to spend different amounts of time and effort on each of
these categories of activities, even though most of the managers would be required to perform all these
activities within their own domain of influence. For perfoimg these activities well, the manager needs a vast
amount of information.The manager may be fully aware of all the issues and information against each issue.
This is precisely why he needs to rely on a system that provides him with the necessary information.MIS
bridges this gap by providing the manager all the neded information from different angles, thereby making his
task easier.
For eg. If a manager has to do planning, he has to be aware of the pln-objective,parameters needing
special attention, the context under which planning is done,the key issues and people,and so-forth and so-on.
The answers to all these would be needed to reach a suitable plan. Thus information is needed and this is
where the MIS comes to the rescue of the manager and makes his work easier. Similarly in other taskcategories, such as staffing,controlling,organizing and and leading, the managert needs information.
Thus in the modern competitive world, the day-to-day activities of the manager at any level can not
be performed without the support of MIS.
Q10. Explain any two methods of decision analysis with examples.
Ans. In decision-making under risk, the probabilities of various states of nature are assumed to be known.
Probabilities of the various states of nature are not known to the decision–maker and thus, he cannot apply
the maximization/minimization of expected value criteria as in the case of decision under risk. In such a
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decision problem, the following decision rules/criteria, depending upon the attitude of the decision maker, may
be applied.
i) Maximax rule or criterion of optimism.
ii) Maximin rule or criterion of pessimism.
iii) Criterion of minimize regret, and
iv) Criterion of rationality
i) Maximax or Criterion of Optimism
In this case, the decision-maker is of optimistic attitude and thus would select the strategy, which will provide
him the greatest (max) pay-off under the most favorable condition (max). In the above example, the decisionmaker will select strategy S2 which will give him a maximum pay-off Rs.10 lakh for launching a new PC and
for the same condition.
Strategies
States of nature
Same
New
condition
Competitor
7
5
10
3
5
1
Maximum or the best pay-off
Govt. Ban
(S1) Modify
-5
(S2) New product
-13
(S3) Do nothing
-2
Strategy
S1
7
S2
10  maximum pay-off
S3
5
ii) Maximin or Criterion of Pessimism
As the name of the criterion indicates, the decision maker is of pessimistic attitude and thus will select the
strategy which will give him the highest pay-off (max) in the worst condition (min) occurs. Here, the decision–
maker, being of pessimistic view, will not like to take any risk and thus will think about the safest position in
the worst situation. Thus, the decision-maker will select strategy S3 since in the worst situation (government
ban) he will sustain the minimum loss (Rs. 2 lakhs) due to this decision.
Strategy
worst or the minimum pay-off
S1
-5
S2
-13
S3
-2 minimum pay-off
Q11. Explain the different MIS functions.
Ans. MIS is set up by an organization with the prime objective to obtain management information to be
used by its managers in decision-making. Thus, MIS must perform the following functions in order to meet its
objectives.
1) Data Processing: MIS captures data from various internal and external sources of an organization. Data
capturing may be manual or through computer terminals. End users, typically record data about transactions
on some 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 management
information. Processing of data is done by such activities as calculating, comparing, sorting, classifying and
summarizing.
3) Prediction: The data is analyzed to predict a future situation, by applying methods of modern
mathematics, statistics, and also by applying simulation.
4) Planning: The analysis of data of regular nature may give many indications on future events or situations
and this can be utilized in planning or reviewing the plan.
5) Control: From a record of periodic activities, certain factors may be noted which need control. These
factors may be controlled if noted on time. Some factors may need the attention of management.
6) Assistance: Providing assistance to higher level management by analyzing and inferring from regular
records about various factors related to the performance of business operation, is one of the main functions of
MIS.
Q12. Differentiate between the traditional and modern marketing system.
Ans. Marketing is a comprehensive term and includes many functions. All activities necessary to direct and
facilitate the production and usage of goods and services for a society are included in marketing. Now a days
marketing has assumed a great significance in all societies irrespective of the degree of industrialization. The
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concept of marketing has undergone a change and thus the traditional concept of marketing does not hold
true today. Where as traditional practices of marketing start with production and consider marketing to be of
use in selling and promotion to attain sales at a profit, modern marketing focuses its attention on consumers
or customers. It gets profits through the creation of the buyer’s satisfaction and tries to achieve it through an
integrated set of marketing activities.
Modern marketing does not simply include activities like selling, distribution or advertising. It involves the
interaction of several business activities whose objective is the satisfaction of the customer’s needs and
desires. Thus in this approach even before the product is produced, marketing comes into operations that is
the needs of its customers are understood and product is designed as per the preferences of its customers
where as in the case of traditional practice the existing products are imposed on the market through selling
and promotional pressures.
Focus
Means
End
Products
Selling and
Promotion
Profits through
Sales Volume
Fig: Traditional Marketing
Customer
Profits Through
Customer
Satisfaction
Integrated
Marketing
Fig: Modern Marketing
Q13. Discuss in detail the nature and scope of MIS.
Ans. The concept of MIS is inter-disciplinary in nature, that is it has borrowed its concepts from a large
number of disciplines like accounting, computers, organizations, management, operations research and
behavioral sciences, etc. Because of its nature, MIS is neither termed as a pure science nor an art. Rather it is
considered as a combination of both.
Computer Science
Operations Research
MIS
Behavioral
Sciences
Accounting
Management
Fig: Interdisciplinary Nature of MIS
An information system is a logical system, which is concerned with how something is being accomplished
and thus may be differentiated from a physical system, which is the process itself and is concerned with the
content or what is going on. MIS includes both of the Information Systems and Physical Systems. MIS should
be considered more of a Management subject than of computers because of simple logic that, computers are
just a tool in the hands of managers. Computers are used for their characteristics like accuracy, speed and
capacity to handle large amount of data. Thus, computers find application in MIS and because of this MIS
may be termed as computer-Based MIS (CBMIS). In real world, a variety of information systems exist which
may be manual information systems where people use tools such as pencils and paper or even some
machines, such as typewriters and calculators to convert raw data into information. Nowadays MIS finds
applications in all functional areas of every type of business organizations at all levels. MIS caters to
information needs of managers in an organization, thus its scope lies in structured as well as unstructured
type of information which could be gathered from internal as well as external sources of the organization.
Thus MIS really represents a mixture of different areas of knowledge.
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Q14. Discuss in detail the decision support system(DSS).
Ans. DSS is an information system application that helps in decision-making. DSS is used in planning and
analyzing alternatives. DSS differs from most traditional information system in that each DSS is distinct from
the other information systems and is specifically made for managers. Although it is used by managers, it is
part of organization’s MIS. A DSS is prepared for a specific managerial task and special problem and thus its
use is limited to that problem. Decision support systems tend to be designed to serve management control
level and strategic planning level managers. The elements of DSS include a database, a model base and a
software providing interactive dialogue facility for a manager. The data in the database is a combination of
master files, and data from external sources. The second component of DSS is a library of models to
manipulate and analyze the data in the desired ways. The third component is the user interface through this
the user can communicate with the DSS. The physical interface generally consists of a terminal attached to
the mainframe computer either directly or by telephone. DSS can be differentiated from MIS in terms of its
processing capabilities. Whereas MIS processes data to convert it into information, DSS processes
information
Database
Model Base
User Interface
Fig: Elements of DSS
to support the decision making process of a manager. e.g. a salary information system provides information to
every employee regarding his basic salary, allowances and deductions. However if any employee wants to
make deposits in some schemes for income tax rebates he can make use of DSS. DSS helps the user to
decide in which scheme how much he should invest to get maximum benefits.
DSS helps the senior management to take strategic decisions. DSS is developed with the objective of
providing top level management with unstructured information. The system helps the management to develop
‘what-if-analysis’ so that different scenarios can be developed for decision making. DSS deals with both
internal and external data. To provide decision support it needs complex models to work on the data.
Q15. Discuss in detail the business expert systems.
Ans. A Business Expert System (BES) is a knowledge based information system, which is based on artificial
intelligence. A Knowledge Based information system adds a knowledge base that uses its knowledge about a
specific, complex application area to act as an expert. Also, BES provides decision support to managers in the
form of advice from an expert in a specific problem area such as medical, engineering and business. BES is
interactive in nature and it is able to answer the questions asked by a user. For answering the questions, an
expert system searches its knowledge base for facts and rules and explains its reasoning process and results
in the expert advice to the end user. The main components of BES are:
1) Knowledge base
2) Inference engine
3) User interface
Rules, facts
Logic
Knowledge Base
Inference Engine
User Interface
Fig: Components of BES
Knowledge base contains the facts about the specific expert area and heuristics that describe the reasoning
procedures of an expert on the subject.
The inference engine contains the logic of reaching an inference from the stored data and from the
knowledge base.
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Expert systems may be developed by using either the programming language like LISP, PROLOG or C or by
using the expert system packages. Using the expert system packages, one can design an expert system that
combines the features of DSS and expert systems. This integration makes the application development
process easier and faster for the end users.
Q16. Discuss how information is considered as a valuable resource for a business organization.
Ans. Information is data that is processed and is presented in a form, which assists decision-makers. It
may contain an element of surprise, reduce uncertainty or provoke a manager to initiate an action.
DATA
PROCESSING
INFORMATION
Fig: Relation of Data to Information
The three levels of management perform different functions in an organization. Accordingly they will require
different types of information. The type of information being utilized by each level of management is in
accordance with the nature of jobs performed by managers at their respective levels. For example, top-level
management is responsible for formulating strategies, policies and objectives for the entire organization. This
involves predicting the future of the organization and its environment. The information for such decisions is
highly unstructured, that is not well-defined. It is because of its unstructured nature that such information
becomes difficult to process. For example, it is difficult to determine with accuracy the market share of a
company’s product or the extent of its penetration in a specific market segment. On the other hand, welldefined information, which may be called structured information, can be easily processed as in the case of
operating management. This level of management is given specific jobs to be performed and thus its
information needs tend to be routine and repetitive, are well defined and known. Information for planning
purposes pertains to the future and thus is approximate when compared to information required at the
operating level. The focus of top management is on future plans and policies. Information at the operating
level has to be exact. Similarly, top management requires mainly external type of information for decisionmaking. For example, population growth in the market served by a company or the changes in the make up of
the market is external information. Whereas, the operating management needs internal information. The
internal information is a by-product of the normal operations of a business. For example, a recording of
inventory usage for the past week is typical internal information. Internal information generally is historical or
static in nature.
Q18. Explain briefly the different strategies for the requirement determination.
Ans. In order to collect information so as to study the existing system and to determine information
requirement, there are different strategies, which could be used for a purpose. These strategies are discussed
below.
Interview
The interview is a face-to face method used for collecting the required data. In this method, a person (the
interviewer) asks questions from the other person being interviewed may be formal or informal and the
questions asked may be structured or unstructured. The interviewer must plan the interview and should have
clear understanding of issues.
Questionnaire
A questionnaire is a term used for almost any tool that has questions to which individuals respond. The use of
questionnaires allows analysts to collect information about various aspects of a system from a large number
of persons. The questionnaire may contain structured or unstructured questions. The use of a standardized
questionnaire gives more reliable data than other fact finding techniques.
Record Review
Record review is also known as review of documentation. Its main purpose is to establish quantitative
information regarding volumes, frequencies, trends, ratios, etc. In record review, analysts examine information
that has been recorded about the system and its users. Procedures, manuals and forms are useful sources
for the analyst to study the existing systems. The main limitation of this approach is that the documentation on
the existing system may not be complete and up-to-date.
Observation
Another information-gathering tool used in system studies is observation. It is the process of recognizing and
noticing people, objects and occurrences to obtain information. Observation allows analysts to get information,
which is difficult to obtain by any other fact-finding method. This approach is most useful when analysts need
to observe the way documents are handled, processes are carried out and whether the specified steps are
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actually followed. This technique is time consuming and costly. Electronic observation and monitoring
methods are being used these days because of their speed and efficiency.
Q19. What are the different dimensions of information?
Ans. Information is processed data. It may be understood to have various dimensions. The following are
the important dimensions of information:
i) Economic dimension,
ii) Business dimension, and
iii) Technical dimension.
Economic Dimension
This dimension of information refers to the cost of information and its benefits.
Cost of information
It may include
i) Cost of acquiring data,
ii) Cost of maintaining data,
iii) Cost of generating information, and
iv) Cost of communicating information.
The cost is related to the response time required to generate information and communicate it. For systems
with low response time, cost is high.
Value of information
Before a particular piece of information is acquired, decision-makers must know its value. In decision theory,
the value of information is the value of the change in decision behavior because of the information. The
change in the behavior due to new information is measured to determine the benefits from its use. To arrive at
the value of new information, the cost incurred to get this information is deducted from the benefits.
Business Dimension
Information can also be understood from its business dimension. Different types of information are required by
managers at different levels of the management hierarchy. Managers at different levels are required to
perform different functions in the organization. This dimension has more to do with ‘what’ of the information
rather than the ‘how’. It has the following parameters:
i) Time
ii) Accuracy
iii) Reliability
iv) Appropriateness
v) Scope
vi) Completeness
Technical Dimension
This dimension of information refers to the technical aspects of the database. Various aspects of the
database, which are considered under this dimension, include the capacity of the database, response time,
security etc. the following parameters can be listed:
i) Information gathering
ii) Analysis methodology
iii) Technological issues
iv) Networking and communication
v) Costs of information
a. Cost of data acquisition, maintenance and access
Q20. Explain briefly the various system related concepts.
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Ans. Different system concepts used are
Boundary
The boundary is the feature of the system, which defines and delineates it. The system is inside the boundary,
while its environment is outside the boundary. It is often difficult to specify in detail the boundaries of a
system. Boundary of a system may exist either physically or conceptually. The use of a boundary concept
enables a system analyst to define any on-going process as a system.
Interface:
Each system can have sub-system which is turn are made up of units. The inter-connections and inter-actions
among the sub-systems are called interfaces.
Black Box
The transformation process in certain sub-systems especially at the lowest level may not be defined.
However, the inputs and outputs are known. Such a sub-system, whose processes are not defined, is called a
black box system. The concepts of black box has been illustrated in fig.
System Decomposition
Any system can be divided into smaller systems known as sub-systems and a sub-system can further be
divided into still smaller systems. This process continues until the smallest sub-systems are of manageable
size. The process of dividing or factoring a system into smaller systems is known as decomposition. The
process of decomposition into smaller systems is used both to analyze n existing system and to design and
implement a new system.
Integration of Sub-Systems
A system is divided into smaller systems only for the sake of clarity. However, it is the whole, which dictates
the role of the sub-systems. The concept of integration draws attention to the primary importance of the whole
system. The whole system is a system which behaves as if it is a single entity.
Q21. What are the different input specifications in a design?
Ans. Output from a system is regarded as the main determinant of the system's performance, output from the
system are affected by the input to the system.
Objectives of Input Design
The main objectives, which guide the input design, are as follows:
i) Control the volume of input data:
Try to reduce data requirement and avoid capturing unnecessary data.
ii) Avoid processing delays during data entry:
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Automating data capturing may reduce this delay.
iii) Avoid data entry errors:
Check in the data entry programs, which are called input validation techniques, may help.
iv) Keep the process simple:
The system should be kept as simple and easy to use as possible.
Input layout
The input layout should contain the following
i) Heading and date of data entry.
ii) Data heading and value
iii) Data type and width of the column
iv) Initials of data entry operator.
Feedback from the user
Having specifically defined sub-systems’ output and inputs, the designers once again involves the user to get
feedback. The feedback of the user on the system design increases the receptivity of the information system
being designed.
Database Design
A database is an orderly arrangement of all the records related to each other. It serves as a data resource for
the MIS of an organization. The designer should keep the following points in mind:
i) Identify all data tables and record types
ii) Identify fields for each table, the key fields for each table and relations between various tables.
iii) Determine the data type and width for each field of the tables
iv) Normalize the data tables
v) Properly document data dictionary
Procedure Design
Procedures are the rules, standards or methods designed to increase the effectiveness of the information
system. The procedures detail about the tasks to be performed in using the system. There is a wide variety of
procedure, which include:
i) Data Entry Procedures: These are the methods designed for data entry e.g. data entry sequence.
ii) Run Time Procedures: The actions to be taken by the users to achieve the intended results.
iii) Error-handling Procedures: These procedures help the user in detecting and correcting errors.
iv) Software Documenting Procedures: The programmers get instructions on how to document the
programs.
Design documentation
The design documents should contain comprehensive details of all the design phases.
Q22.
What are the different output specifications in a design?
Ans. Output implies any information produced by an MIS. An output from an MIS should meet the objectives
as per the requirements.
Objectives of Output Design
The output should meet one or more of the following objectives:
i) It should provide information about the past, present or future events.
ii) It should signal important events, opportunities and problems.
iii) It should trigger an action in response to some event.
iv) It should confirm an action as a result of some transaction.
Presentation of Output
Even high quality contents may go unnoticed, if presented poorly. Therefore, presentation of output is
regarded an important feature of output design. The presentation may be either tabular or graphical, or both.
The tabular format in general should be preferred when,
i) Details dominate contents
ii) Contents are classified in groups
iii) Totals are to be drawn and comparisons are to be made
In the detailed reports, a tabular format is preferred. However graphics are used to improve the effectiveness
of output, especially in detecting patterns in data and trends or changes in trends. Some users like to see
information in graphic form rather than in rows and columns.
Output Design Specifications
The main points which should be considered in the output design specification are given below:
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i) Paper Size: The designer must specify the size of the paper to be used for the output e.g. A4 size, A3
size etc.
ii) Special Forms: Output can be designed on the pre-printed form where standard print headings/title etc.
are required. For example, the pre-printed form may have the name and logo of the organization printed at the
top. This enhances presentation and gives a professional look to the output document. Some of the
universities use this type of form for the certificate /degrees to be awarded to the students. Railways are also
using similar forms for reservation tickets.
iii) Multiple Copies of Output: When more than one copy is required from the system, multiple copies are to
be produced. This can be achieved by using multipart forms.
iv) Turnaround Document: The output may be designed as a turnaround document, if the organization uses
optical scanners for reading data from the forms.
v) Output Layout: The arrangement of items on the output medium is known as an output layout. The layout
design acts as a blue print that guides the programmer in the development of codes. The output layout should
have the following
a) Headings and date
b) Data and details
c) Summaries and totals
d) Page title, number and date
e) Notes and comments.
f) Column headings and data type.
Designers usually use N (n) for numeric data type and X (n) for the alpha data type, n specifies the width of
the column.
Q23. Discuss in detail the concept of human as an information system.
Ans. Human as information processing system can be understood with the help of a simple model, which
consists of the following components:
 Sensory receptors (inputs),
 Processing unit, and
 Response output.
Sensory receptors include eyes, ears, skin, etc. These receptors capture stimuli, which may be visual,
auditory, tactile and others, form the environment and transmit them to the processing unit, i.e. the brain. The
processing unit (the brain) uses variety of specialized processing centers and memory units to handle different
types of processing and memory functions. The results of the processing of stimuli by brain are response
outputs, such as decisions taken and tasks performed. These results may also be in the form of physical
movements, speech and other responses.
The model of the human information processing system which consists of a processor, sensory input, motor
output and two types of memories:
 Long term memory
 Short term memory
Information filtering
Humans have limited capacity to accept input for producing meaningful output. However, the environment
provides more input than a human is able to accept. Thus, in order to avoid information overload, the human
information processing system filters out the inputs to a manageable quantity.
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Fig: Filtering of Information
Human Differences in information Processing
Humans differ in handling the same information and solving the same problems. It may be attributed to their
different cognitive styles. A cognitive style may be referred to the process through which humans organize
and change information during the decision-making process.
Q24. What are the different system development stages? Explain in detail.
Ans. In order to develop a system successfully, it is managed by breaking the total development process into
smaller basic activities or phases. Any system development process, in general, is understood to have the
following phases.
 Investigation,
 Analysis,
 Design,
 Construction and testing,
 Implementation, and
 Maintenance.
A brief description of the above-mentioned stages is discussed as follows:
System Investigation
Preliminary investigation is the first step in the system development project. The preliminary investigation is a
way of handling the user's request to change, improve or enhance an existing system. System investigation
includes the following two sub-stages.
 Problem definition, and
 Feasibility study.
System Analysis
Analysis is a detailed study of the various operations of a business activity (system), along with its boundaries.
The objective of this phase is to determine exactly what must be done to solve the problem. Many system
analysts have a technical background. The temptation of many technically trained people is to move too
quickly to program design, to become pre-maturely physical. System analysis involves a detailed study of:
 The information needs of the organization and its end users.
 Existing information systems (their activities, resources and products).
 The expected information system (in terms of capabilities of IS required to meet the information needs of
users).
System Design
System analysis describes WHAT a system should do to meet the information needs of users. System design
specifies HOW the system will accomplish this objective. The designing of the system refers to the technical
specification that will be implied in constructing the system. The output of the system analysis phase is the
input to the system design phase.
The System design should emphasize on the following three activities.
 User interface
 Data design, and
 Process design
Construction and Testing
Once the system specifications are understood, the system is physically created. The required programs are
coded, debugged, and documented. The system should be tested with some test data to ensure its accuracy
and reliability. In fact, construction of the system takes place on the basis of the system design specifications.
Implementation
The system implementation stage involves hardware and software acquisition, site preparation, user training
and installation of the system. Then testing of the system, involving all components and procedures should be
done. It must be realized that implementation may be the most crucial phase of the system.
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Maintenance
System maintenance involves the monitoring, evaluating and modifying of a system to make desirable or
necessary improvements. In other words, maintenance includes enhancements, modifications or any change
from the original specifications.
Q25. Discuss the different elements of a system.
Ans. A typical system has input, process, output and feedback as its elements.
Input may be defined as the start-up component on which the system operates. Input is certain data about
something. Data is defined as symbols, facts, figures or relationships to be introduced into, or to be the result
of a system’s operation.
Output is the end result of a system and thus it represents the purpose or objective of a system. The purpose
or objective of the system is to obtain information so as to help in decision-making.
The process is the transformation activity that converts input into output. The actual classification of the data,
its sorting, summarizing and calculating by people by themselves or through some other means, represents
processing of the data. People, machines, functions, operations, organizations and combination of these act
as processors. If the transformations performed by various sub-systems to process the input are not
transparent to the user, then the processing is called black box processing.
These three elements are common to all systems and are the terms by which all systems are described. Any
system can be defined in terms of these elements and their properties.
Though input, processor and output are defined as system parameters, systems are not static. The system
elements that allow the system to remain in equilibrium or in a balanced state are feedback and control.
These two parameters occur together and are discussed as one because of their definition, which states that
the purpose of feedback is control. Feedback control is defined as the system function that
compares output with a model or standard. Control is achieved by correcting the deviation between output
and standard.
Q26. Discuss briefly the design objectives.
Ans. The output of the system analysis phase becomes an input in the design phase. The requirements of the
user become the objectives of the system design. Thus a system is designed with following design objectives:
1) Practicality: The system should be designed in such a way that it may be learnt and operated with ease
by the users. Thus, the design should be user-oriented.
2) Flexibility: The business organizations are dynamic in nature. Therefore a system must be responsive to
the change inevitably requested by its users.
3) Integrity: The integrity of the system allows the system design phase to be integrated with other phases
of software development, to carry out system development process.
4) Reliability: This describes the dependency on the system design for any system errors and faults, inorder
to analyze the time-period of the existence of the system.
5) Efficiency: A system must be efficient, that is it should perform jobs within their specified time. The
efficiency of a system may be measured in terms of the following parameters.
a) Throughput: it is the ability to handle a specified number of jobs per unit time.
b) Response time: the ability to respond to a request made by the user within a given time limit.
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c) Run time: it is the ability to undertake the complete job within a given time limit
6) Security: This aspect relates to the hardware reliability of the system, physical security of data and the
detection and prevention of fraud and abuse of data.
Q27. Explain the Nolan Stage Model for IS planning.
Ans. Richard Nolan (1974) has discussed a framework for IS planning, popularly known as Nolan stage
model. The basic premise of the model is that any organization will move through stages of maturity with
respect to the use and management of IS. While progressing, an organization must go through each stage of
growth before it can move to the next stage. In fact Nolan stage model is a contingency model, which helps
managers diagnose the stage(s) of IS in the organization and thus provides a set of limits to planning. The
model has been called contingency model because it states: IF these features exist THEN the information
system is in this stage.
The Nolan stage model has identified four stages of information system growth. A brief description of these
stages is given below:
Stage 1
The First growth stage is known as initiation stage. In this stage, the technology is placed in the organization.
A few applications in the organization are computerized. There are only a small number of users. This stage is
characterized by minimum planning.
Stage 2
This growth stage is called expansion or contagion stage. During this stage rapid and uncontrolled growth in
the number and variety of IT applications takes place. Many users adopt computers in solving their IT related
problems.
Stage 3
This stage is known as formalization or control stage because in this stage, organizations gain control over
the technology’s resources by implementing formal control processes and standards. Thus, organizations are
able to apply cost-effective criteria. However, controls sometimes become barriers in attaining potential
benefits.
Stage 4
Nolan has described this growth stage as maturity or integration stage as by this stage organizations gain
sufficient experience and maturity in IS/IT applications. In this stage, applications are integrated, controls are
adjusted. Planning is well-established. That is why this growth stage sometimes is also called the stage of
perfection.
Nolan in 1979 enhanced this model to 6 stages. In the enhanced model, the first 3 stages remain the same
and the maturity stage of the four- stage model has been sub- divided into 3 more specific stages which have
been renamed as stage 4, stage 5 and stage 6 respectively.
Stage 4 is called Integration stage, stage 5 is called data administration stage and stage 6 is called
maturity stage.
Q28. Explain the concept of IRM in detail.
Ans. IRM(Information Resource Management) is a concept that focuses on the information, its availability
and its usage. The emphasis of IRM is on the efficient management of information. The organizations, which
adopt IRM concept, view information as a key resource and invest in information technology to gain a
competitive advantage. In this approach, organizations ensure the availability of the required information to all
the users. Thus, the IRM is a perspective; it is also an approach to organizing and integrating the diverse
elements of an information system.
Information, when compared with other resources of the organization like money, men, machine, and
materials, shows the following similarities.
i) It has a return on investment.
ii) It requires organization for its efficient use.
iii) It has an opportunity cost.
However, information is different from other resources in the following terms.
i) It can be reused.
ii) It is intangible.
iii) The marginal cost per additional usage is low.
Many organizations now have an information centre. All information resources of an organization should be
under the overall umbrella of IRM. These should include the following.
i) Business data processing.
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ii) Information System development.
iii) Data management.
iv) Networking
v) Office automation and word processing.
vi) End user computing.
vii) Information center management.
The task of the IRM function is to integrate and coordinate the above-mentioned activities. IRM is an allencompassing ,information-focused concept that involves no less than organizing all aspects of the
information activities and flows.
Q29. Write a brief note on:
a) Project planning
b) Strategic fit
c) Strategic information system grid
Ans. a) Project Planning: The last stage of the four-stage model of MIS planning is project planning which
provides an overall framework for system development planning, scheduling and controlling. A wide variety of
tools of project management are available which include milestones, critical path method and Gantt Charts.
 Critical Path Method(CPM)- This represent the various tasks required to complete a project in the form
of network chart. It establishes sequential dependencies and relationships among the tasks The longest path
that takes the maximum time is termed as the critical path.
 Gantt Chart- This provides definitions for the tasks that need to be performed and also specifies when
they will start and finish.
 Milestones- Milestones or checkpoints are established to allow periodic reviews of progress to the
management.
b) Strategic fit: This is one of the techniques under the first stage of the four-stage model of Information
System Planning, called Strategic Planning. In this technique, the organizational culture is understood and the
information systems are developed in such a way- so that these fit with the organizational culture. This helps
to avoid the risk of its IS failures because of resistance from the employees. In-order to understand the
organizational culture, planners may collect relevant clues from incidents that occurred in the organization, the
behavior of the top-management and other subjects and agendas.
c) Strategic Information System grid: This technique under the first stage of the four-stage model of
Information System Planning, provides four types of IS planning situations, arranged in the form of a grid. The
strategic grid defines the importance of the existing information system applications to the business and the
strategic importance of the IS applications to be planned for development. The four cells represents the
position of the IS activity relative to the business organization. The functions of the grid are as follows:
i) Strategic: indicates the critical role of information systems
ii) Factory: indicates the vital position of the existing information systems but they are not considered a part
of future strategic planning.
iii) Support: points out that IS applications are useful in supporting the
organizational activities.
iv) Turnaround: is used for state of transition from support to
The strategic grid helps in analyzing the current and future IS applications, and thus acts as a diagnostic tool.
The grid is diagnostic because it helps understand the role of IS in the organization.
Q30. What is the procedure for carrying out the cost/benefit evaluation of an MIS?
Ans. In cost/benefit evaluation of the various expected costs, the benefits to be expected from the system and
expected savings is done. The cost/benefit analysis determines the cost-effectiveness of the system. The
various categories of costs and benefits are measured and included in cost/benefit analysis.
i) Initial development cost : it is the cost of developing an information system. The various elements of
development cost include project planning cost, feasibility study cost, testing costs, implementation cost etc.
ii) Capital cost : It is also a one time cost. It is the cost of providing facilities and equipments including
hardware etc for the operation of the system.
iii) Annual operating cost : It is the cost of operating the system. It includes computer and equipment
maintenance cost, personnel cost overheads and supplies cost. Computers and equipment are to be
maintained and thus some cost is included, known as Annual Maintenance Cost.
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In cost/benefit evaluation, various expected benefits from the system are also studied. The first task is to
identify each benefit and then assign a monetary value to it. Benefits may be tangible or intangible, direct or
indirect.
The major benefits are improving performance and minimising the cost of processing. The performance
part suggests improvement in accuracy, timeliness, non-duplication, adequacy, usefulness in information and
easier access to the system. Minimizing of cost is measured in terms of error controls,reduced labor and
reduced inventory cost because of the newly installed MIS.
Q31.
Do you think IS enables organizations to change, how? Discuss the
Organizational changes because of IS implementation.
Ans. The use of information systems may result in many changes in the organizations. It may affect the
organizational structure, goals, work design, values, competitions between interest groups, decision-making
and day-to-day behavior. Some of the major potential areas of impact are discussed in the following
paragraphs.
Organizational structure
As an Information System enables a manager to increase his or her span of control, It will lead to fewer
managerial levels on the organization, resulting in a 'Shrinking size of the middle management’.
Centralization of Authority
The information systems affect the degree of centralization of authority in the organization.
Job Content
Many changes in job content take place when work is redesigned, especially in Business Process Reengineering (BPR). These changes sometimes create problems of role conflict and role ambiguity.
Relationships
Because of information systems, relationship among employees, also undergo a change. For example with
introduction of computer based information systems, face-to-face interaction between the supervisor and
subordinate will be reduced. Similarly, information systems also change the relationship patterns among
peers.
Resistance to Change
There may be resistance to change because of new information systems in the organization. Organization,
thus, must prepare them to manage this resistance to change for the successful implementation of information
systems. Organization should avoid resistance to the new information system rather than defeating the
resistance by shear power. The following three steps may be useful.
i) Create a climate for change.
ii) Develop effective agents of change.
iii) Modify the 'required' organizational system
Q32. Define organizational learning. How does an information system add to organizational learning?
Ans. Organizational learning, which exhibits adaptive behavior, is the process by which an organization
identifies action-outcome relationship, identifies and corrects errors, stores the experience in organizational
personnel who teach the other employees of the organization and stores the experience in procedures
systems, rules, computer programs and other forms for transferring experience. For example, a user of an
information system is imparted training on how to use the new system b information system specialists.
Stimulus-Response Theory of Learning
Information systems support organizational learning. The stimulus-response theory helps in organizational
learning. According to stimulus-response theory, the learning process consists of four main elements.
i) Drive
ii) Cue
iii) Response, and
iv) Reinforcement
The brief introduction of these elements is al follows:
i) Drive is any strong stimulus that impels action. It arouses and individual and keeps him prepared to
respond. The drive to learn beyond innate curiosity is acquired.
ii) Cue or stimulus may be defined as any object in the environment perceived by the individual, which
guides and determines response.
iii) Reinforcement or reward means reduction in drive and stimulus that follows a response. The
reinforcement causes response to be 'learned'.
iv) Information systems aid in the learning process by providing cues and response in the following ways.
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Interaction with Other Users
Information systems enable a user to interact with a wide-variety of inter-organizational and intraorganizational users and thus a user may share his or her experiences with others and vice versa. This
sharing of experience promotes education of the organizational employees.
Interactive systems and Databases
Nowadays, user–friendly interactive information systems also enable a user to learn about new products,
advancements, etc., by providing a free access to the exhaustive databases.
Upgradation of Skills
As the new information systems are implemented in an organization,the employees are trained in using them,
which leads to the upgradation of their skills.
Q33. What do you mean by location of MIS in an organization structure?
Ans. Location of MIS in the organization structure is another area, which is quite often overlooked, but it is an
important issue that deserves the attention of the management. For proper discharge of its functions, MIS
must be suitably located in the overall structure of the organization. This requires proper planning at the
organizational level.
The exact location in the organization and the authority granted to the MIS function is, of course, a function of
the type of business the firm is in and how important the information resource is to its operation. In Banking,
transportation and many other industries, data processing and MIS pervade all areas of the business.
Q34. Discuss the changing concept of IS.
Ans. The requirements of organizations and users keep changing. The organizations have to
undertake new systems and improve the existing ones according to these changes. The different
concepts implemented in information systems are:
 Information as a necessary evil: - Information was regarded as a necessary evil, associated with the
development, production and marketing of products or services. Information was thus merely considered as a
by-product of transactions in the organizations. As a result, information systems of 1950s were primarily
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designed with the aim to reduce the cost of routine paper processing in accounting areas. The term Electronic
Data Processing (EDP) was coined in this period.
 Information for General Management Support: - By mid-sixties, organizations began recognizing
information as an important tool, which could support general management tasks. The information systems
corresponding to this period were known as management information system (MIS) and were thought of as
system processing data into information.
 Information for decision –making: - In early eighties, information was regarded as providing specialpurpose, tailor-made management controls over the organization. Decision support systems and executive
support systems were important advancements, which took place during this period. The purpose of such
information systems was to improve and speed-up the decision-making process of top-level managers.
 Information as a strategic resource: - In the revolutionary change pattern, the concept of information
changed again by the mid-eighties and information has since then been considered as a strategic resource,
capable of providing competitive advantage or a strategic weapon to fight the competition. Latest information
systems which are known as strategic systems, support this concept of information
Q35. Discuss in detail the various terminologies used in information system planning.
Ans. Organizations that plan their information system tend to achieve better results than organizations that
do not, yet studies reveal that many organizations either do not plan or do it unsystematically. The information
system plan generally includes the goals, objectives and structure of the information systems, the available
information system resources and future developments, which may affect the plan.
Planning terminology: i) Mission: - It states the basic purpose for which an organization exists. In other words, the mission
statement is a broad, enduring statement giving the organization’s ‘reason for being’. It answers the basic
questions, ‘ what is our business’ and distinguishes one organization from other similar organizations. For
example, the mission of an oil organization is stated as follows:
To stimulate, continue and accelerate efforts to develop and maximize the contribution of the energy sector to
the economy of the country.
ii) Objectives: - Objectives are the desired future positions and destinations the organization intends to
reach in order to fulfill its mission.
iii) Strategies: - A strategy is a general direction in which an objective is to be sought. For e.g., if an
objective is to increase earnings per share, it can be attained through actions in many directions- new
products, acquiring small companies, selling more in existing or new markets and even disinvestments of
losing propositions. Each of these then will be termed as a strategy.
iv) Policies: - A policy is a general guideline that directs and constrains decision-making within an
organization. In other words, a policy is a statement of intended behavior for the organization. Policy limits the
scope of alternatives to be considered in decision-making in the implementation of a strategy. Policies are
implemented by rules and procedures, which are more specific statements that direct decision-making.
Q36.
Explain the strategies used in changeover for existing organizations.
Ans. Changeover is the event of switch-over from the old system to the new system, which takes place
after the system is tested and found reliable. When the old system is in existence, there may be four different
strategies namely:
1. Direct
2. Parallel
3. Modular
4. Phase-in
1. Direct approach: A direct implementation is the installation of the new system and the immediate
discontinuation of the old system. This approach produces a time gap when no system is working. This
approach may be used in organizations having seasonal operations like sugarcane processing or during the
shutdown of a plant. The main advantage of this approach is that it is relatively inexpensive. On the other
hand, the disadvantage of this approach is that it involves a high risk of failure.
2. Parallel approach: In this approach, the new system is installed and operated in parallel with the current
system until it has been tested thoroughly. This is the opposite of the direct implementation approach. In a
parallel implementation approach, the outputs from each system are compared and differences reconciled.
This method is expensive because of the duplicating facilities and personnel to maintain the dual systems.
However, it is required in certain essential systems, such as payroll, examination and defence systems.
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Its main advantage is that the accuracy of the system is properly checked before it is accepted as an
information system of the organization.
3. Modular approach: This approach refers to the implementation of a system in the
organization on a module basis. For example, an inventory system might be implemented with only a selected
product grouping or with all products in one location of a multiple-location organization.
4. Phase-in implementation: This method is similar to the modular approach. However, it differs in that the
system itself is segmented and not the organization. For example, the new data collection activities are
implemented and an interface mechanism with the old system is developed. This interface allows the old
system to operate with the new input data. Later, the new database access, storage and retrieval activities are
implemented. The advantages of this approach are that the rate of change in a given organisation can be
minimized and data processing resources can be acquired gradually over an extended period of time. The
method is most suited for systems, which require only upgradation of the old systems. The disadvantages to
this approach include the costs incurred to develop temporary interfaces with the old systems.
Q37. What is the procedure for product-based MIS evaluation? Explain.
Ans. Since the focus of the product-based evaluation is on the product or the output from the system, the
evaluation may be termed as effectiveness evaluation. For assessing the effectiveness of output from MIS,
the following model may be used.
Model structure
The information attributes may be identified as components of a general model for evaluation of MIS
effectiveness in an organization. Some of these attributes are listed below:
a) Timeliness
b) Relevance
c) Accuracy
d) Completeness
e) Adequacy
f) Explicitness
g) Exception-based
Model implementation
Various types of outputs or reports, being generated by MIS of the organization can be evaluated for their
effectiveness in terms of the attributes of the management information. To employ the model, managers at
different levels of management of the organization may be asked to rate the outputs/reports on each of the
information attributes. To get response, a five-point scale may be used on which the respondents may be
asked to rate the effectiveness of MIS in terms of these information attributes. The rating is based on the
number of reports/outputs, which observe the information attributes. On the basis of this an effectiveness
score is evaluated of the various attributes.
Effectiveness Norm
Ideally speaking, effectiveness score should be equal to 4. However, owing to the high cost involved in such a
system and uncertain environment, such a situation is not practical. Therefore a tolerance limit is to be
prescribed which serves as a standard or effectiveness norm, against which the organization may compare
the effectiveness of the existing MIS to determine deviations, if any.
Q38. What are the different methods used for allocating scarce resources in information system
planning?
Ans. Once the requirement analysis has been done, resource allocation is the next phase in the
information system planning model. This is an important phase, as because of the limited resources
in the organization, all the applications can not be taken together. It helps in deciding the order in
which the applications should be carried out. This stage provides the framework for personnel
planning, technology procurement and budgeting to provide services to the users. Various methods
for allocating the resources are as follows:
1. Return on Investment (ROI): This is a cost/benefit analysis technique, which is used in a variety of
planning applications. This technique is used in IS projects as each IS project may be considered as having
quantifiable economic costs and quantifiable economic benefits, on the basis of which return on the
investment can be calculated. A decision rule based on ROI is to select projects that have the highest ROI.
2. Charge Out: It is an accounting procedure for charging the costs of IS resources to its users. The users
may be charged in two ways. In one of the methods, a standard cost is allocated to different users of the
organization for the IS services used. In this, the user has no control over the costs as the costs are directly
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allocated by the IS department to all the subsystems of the organization. In the second method, users are
charged for information services but to the extent the services are used.
3. Portfolio Approach: This approach works on the premise that IS projects should be evaluated not only
individually but as a part of a portfolio of projects that have an overall impact on the organization. Thus the IS
application portfolio should have a balanced approach in terms of project risk, support for strategic directions
and appropriate applications as per the stages of growth of the various organizational sub-systems.
4. Steering Committee: An alternative to single-executive decisions is a steering committee, which may
have executives from major functions in the organization. The committee would decide about the allocation of
IS resources, keeping in view, the interest of the entire organizations. Such a committee facilitates coalitions
and builds support for allocations and the resulting plan.
Q39. What are the different evaluation classes used for the evaluation of performance measurement?
Ans. Evaluation of performance measurement consists of two major classes as given below:
1) Effectiveness This refers to the quality of the outputs from the system. Effectiveness means doing the
‘right’ thing in the right manner so that desired results may be achieved. Information system is said to be
effective if its product (i.e. Output) is of quality, and the process of producing output is right (effective).
2) Efficiency It is a measure of the amount of resources required to achieve the output, i.e. the use of system
resources to get results. Being efficient implies the system is operating the ‘right’ way.
The relationship between effectiveness and efficiency is that effectiveness is a measure of ’goodness’ of
output, while efficiency is a measure of the resources required to achieve the output. There are various
dimensions of information systems that should be evaluated. These may include the development process,
which concern whether the system was developed following set standards, information being provided and the
system’s performance. Depending upon the dimensions of the information system to be evaluated, an
appropriate evaluation approach may be adopted.
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Section – C
10 Marks Questions
Q.1
What is MIS? Explain the different characteristics of MIS.
Ans. Management Information System comprises of three words: Management, Information and System. In
order to fully understand the term MIS , these three words need to be understood:
Management : Management is the art of getting things done through and with the people in formally
organized groups. A manager does it by performing different functions in a systematic way. The basic
managerial functions are:
Managerial functions
Planning
Organizing
Staffing
Directing
Controlling
Planning: It is the setting of goals and objectives and deciding policies, procedures, rules, programs, budgets
and schedules to achieve a plan.
Organising: It is the process of identifying the entire job, dividing the job into convenient tasks, allocating sub
jobs to persons or groups of persons so that the job is carried out as planned.
Staffing: It is the process of putting the right person at the right job.
Directing: Directing is in order to achieve pre-determined goals and objectives, people manning the
organisation have to be guided, motivated and lead by manager.
Controlling: It involves the performance of work by setting performance standards and avoiding deviations
from standards.
Information, the second component in the term Management Information system, is considered as a valuable
resource required by the management in order to run a business organization. Information is the data that is
processed and is presented in a form, which assists decision-makers. It may contain an element of surprise,
reduce uncertainly or provoke a manager to initiate an action. Whereas data is a term used for raw figures,
facts, and symbols etc. that are currently not being used in a decision-making process. Data usually takes the
form of historical records. In contrast to information, raw data may not be organized and may not add
anything to our knowledge.
The relation of data to information is that of raw material to finished product, as depicted in the following
diagram.
Data
Processing
Information
A system may be defined as a set of elements, which are joined together to achieve a common objective.
The elements are inter-related and interdependent. Further, every system is said to be composed of subsystems, which in turn are made up of other sub-systems.
The set of elements for a system may be understood as Input, Process and Output. A system has one or
multiple input (s). These input(s) are processed through a transformation process to convert the input(s) into
output(s).
Input
Process
Output
Elements of the System
A management information system has the following characteristics:
1). System approach:
The information system follows a System’s approach. The system’s approach implies a holistic approach to
the study of the system and its performance to achieve the objective for which it has been formed.
2). Management oriented:
For designing of MIS, top-down approach should be followed. Top-down approach suggests that the system
development starts from the determination of the management needs and overall business objectives.
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Management oriented characteristic of MIS also implies that the management actively directs the system
development efforts.
3). Need based:
MIS design and development should be as per the information needs of managers at different levels that are
strategic planning level, management control level and operational control level.
4.) Exception based:
MIS should be developed on the exception based reporting principle, which means an abnormal situation, that
is the maximum, minimum or expected values vary beyond the limits. In such cases there should be exception
reporting to the decision-maker at the required level.
5.) Future oriented:
MIS should provide information on the basis of projections based on which actions may be initiated. MIS is
never designed overnight. It needs a very high degree of planning, so that it not only serves the current needs
of the organization but also serves the organization for next 5-10 years.
6.) Integrated:
Integration is significant because of its ability to produce more meaningful information. Integration means
taking a comprehensive view of the subsystems that operate within the company.
7.) Common data flows:
Because of the integration concept of MIS, there is an opportunity to avoid duplication and redundancy in data
gathering, storage and dissemination. System designers are aware that a few key source documents account
for much of the information flow. For example, customer’s orders are the basis for billing the customer for the
goods ordered, setting up accounts receivables, initiating production activity, sales analysis, sales forecasting
etc.
8.) Bias towards centralization- MIS is biased towards a centralized data-repository. As it is required to give
“one version of truth”. Centralized data management helps in version control and providing an integrated view
of data to managers.
9.) Information and Communication Technology-enabled- The extreme pressure of competition requires
information to be timely and accurate for efficient decision-making, both of which can be ensured if information
is managed using information technology. Infact all MIS that run today, run on some ICT platform.
Q.2 Explain the Classification of Information Systems.
Ans. The Information Systems can be categorized into the following 6 classes:
i) Transaction Processing System (TPS)
ii) Management Information System (MIS)
iii) Decision Support System (DSS)
iv) Executive Support System (ESS)
v) Office Automation Systems (OASs), and
vi) Business Expert Systems (BESs)
Transaction Processing System
TPS processes transaction and produces reports. It represents the automation of the fundamental, routine
processing, used to support business operations. It does not provide any information to the user for decisionmaking. TPS uses data and produces data as shown in the following diagram.
Data
Processing
Data
Previously, TPS was known as Management Information System. Prior to computers, data processing was
performed manually or with simple machines. The domain of TPS is at the lowest level of the management
hierarchy of an organization.
Management Information System (MIS)
MIS is an information system, which processes data and converts it into information. A management
information system uses TPS for its data inputs. The information generated by the information system may be
used for control of operations, strategic and long-range planning, short-range planning, management control,
and other managerial problem solving. It encompasses processing in support of a wide range of
organizational functions & management processes. MIS is capable of providing analysis, planning & decision
making support. The functional areas of a business may be marketing, production, human resource, finance
and accounting.
Decision Support System (DSS)
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A decision support system (DSS) is an information system application that assists decision-making. DSS
tends to be used in planning, analyzing alternatives, and trial and error search for solution. The elements of
the decision support system include a database, model base & user-interface. The main application areas of
DSS are Production, finance and marketing.
Database
Model Base
User Interface
Fig: Elements of DSS
DSS can be differentiated from MIS on the basis of processing the information. MIS processes data to convert
it into information. DSS processes information to support the decision making process of a manager.
Executive Support System (ESS)
Executive Support System (ESS) is an extension of the management information system, which is a special
kind of DSS; An ESS is specially tailored for the use of chief executive of an organization to support his
decision-making. It includes various types of decision-making but it is more specific and person oriented. Its
main objective is to provide a macro organization view for senior executives and a user-friendly userinterface, so that proactive steps may be taken to beat competition.
Office Automation Systems (OAS)
Office automation refers to the application of computes and communication technology to office functions.
Office automation systems are meant to improve the productivity of managers at various levels of
management of providing secretarial assistance and better communication facilities.
Office activities may be grouped under two classes, namely
i) Activities performed by clerical personnel
ii) Activities performed by the executives
In the first category, the following is a list of activities.
a) Typing
b) Mailing
c) Scheduling of meetings and conferences,
d) Calendar keeping, and
e) Retrieving documents
The following is a list of activities in the second category (managerial category)
a) Conferencing.
b) Production of information (messages, memos, reports, etc.) and controlling performance
Business Expert Systems: These systems are one of the main types of knowledge-based information
systems. These systems are based on artificial intelligence, and are advanced information systems. A
business expert system is a knowledge based information system that uses its knowledge about a specific,
complex application area to act as an expert. The main components of an expert system are:
a. Knowledge Base
b. Interface Engine
c. User Interface
Rules, facts
Logic
Knowledge Base
User Interface
Interface Engine
Q.3 Explain the different approaches to MIS.
Ans. Management is the art of getting things done through and with the people in formally organized groups.
A management information system (MIS) provides information that is needed to manage organizations
efficiently and effectively. It involves three primary resources: people, technology, and information or decision
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making. The term is commonly used to refer to the group of information management methods tied to the
automation or support of human decision-making.
The structure of MIS could be described using a variety of different approaches, which are listed as
follows
 Physical components
 Information System Processing Functions
 Decision support
 Levels Of Management Activities
 Organizational Functions
1. Physical components- The physical components of the information system in an organization help
understand the structure of MIS. These physical components are as described below:
A: Hardware- This refers to the data processing equipments and peripheral devices such as printer. The
various hardware devices that are used in the information system are input devices, output devices,
secondary storage devices, CPU, communication devices.
B: Software- This refers to the instructions and program that direct the functioning of the hardware. Various
types of software include system and application software.
C: Database- This consists of all data used by application software stored in the present files on the disk.
D: Procedures: These refer to physical procedures such as manuals required to operate a system.
E: Operating Personnel: These are the personnel such as computer programmers and system managers.
F: Input and Output: Refers to the physical inputs and outputs from information systems that exist in various
forms.
2. Information System Processing Function- This is another approach to describing the structure of MIS. It
has a central importance in any venture. The five functions of information systems are as follows:
A: Information processing and utility function- This type of function deals with the final application of
information and the way in which information is being processed. This requires knowledge of new concepts,
models, procedures, etc. for an efficient processing of information.
B: Education and Learning function- As new things are appearing in the market everyday and the business
atmosphere is becoming highly competitive , installing an information system and making an efficient and
effective use of it, is becoming increasingly important. Thus an awareness needs to be created about the use
of the system which would enable effective decision-making.
C: Information Systems Development Function- To face global competition and thereby face the new
challenges appearing everyday in the business atmosphere, managers and business executives need to
know about emerging technologies, design models, etc.
D: Management and control function-This function is basically concerned with the maintenance of the abovementioned functions. Management is concerned with the information system, its utility, proper knowledge and
skills of users and further development of the system.
E: Strategy and Planning function- These include analysis of data on the performance of business and the
system which is used to formulate the strategy related to business.
3: Decision Support-The structure of MIS also depends on how MIS supports decision making. Decisions
taken using decision-making process may differ according to the structure of MIS provided for making
decisions. Various types of decisions are:
a: Structured decisions- Refers to the structure of MIS that is pre-planned and easily programmable .The
structured decision is generally repeated during decision-making process.
b: Unstructured decisions- Refers to the structure of MIS that is not pre-planned and not programmable.
c: Semi-structured decisions- Refers to the decisions that are more or less structured and contain some
elements that are programmable and some non-programmable.
4.Levels of Management Activities-Management is divided into different levels. The top-level managers are
responsible for planning and other strategic activities. The middle-level managers take decisions regarding
whether to have a preventive or breakdown maintenance in factory. The operational level management takes
decisions on operational issues like which worker will be deployed for which work. The MIS has to ensure that
vital information for the different levels of management is provided timely and effectively.
5. Organizational functions- When two or more people work in a structured or unstructured environment to
achieve a common goal or mission using some resources, it is organization. MIS, in an organizational setting
is more than an information system. It is a separate department which primarily deals with the supply of
information to management. The role of MIS within an organization is as follows:
 Creating MIS in consultation with users, system analysts and external consultants
 Managing data
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Managing the ICT infrastructure
Managing the MIS
Q.4 What is a system? What are the different types of systems?
Ans.
The term system is the most loosely used term in management because of its use in different
contexts. However a system may be defined as a set of elements, which are joined together to achieve a
common objective. The elements are inter-related and interdependent, which in turn are made up other sub
systems. The set of elements for a system may be understood as input, process and output. A system has
one or multiple inputs. These inputs are processed through a transformation process to convert these inputs
into output. For example, in a manufacturing organization, raw material is input to a system, which using
various organizational processing facilities, converts it into finished product. Similarly in information system,
data is input, which is processed to convert it into information. Three elements of a system are portrayed:
Input
Process
Out put
Feedback and control elements are attached to a system to make it self-regulating and self-monitoring.
The different types of systems are as follows:
A: Physical and Abstract systems:
Physical systems are tangible entities that may be static or dynamic in operation. For example, the physical
parts of the computer center are the offices, desks, and chairs that facilitate operation of the computer. They
can be seen and counted, they are static. In contrast, programmed computer is a dynamic system. Data,
programs, output and applications change as the user's demand or the priority of the information requested
changes.
Abstract systems are conceptual or nonphysical entities. They are a collection of independent ideas. They
may be models-the abstract conceptualization of physical situations. A model is a representation of a real or a
planned system. The use of models makes it easier for the analyst to visualize relationships in the system
under study. The objective is to point out the significant element and the key interrelationships of a complex
system.
B: Open and Closed Systems:
Systems can generally be classified as open systems and closed systems and they can take the form of
mechanical, biological, or social systems. Open systems refer to systems that interact with other systems or
the outside environment, whereas closed systems refer to systems having relatively little interaction with
other systems or the outside environment. For example, living organisms are considered open systems
because they take in substances from their environment such as food and air and return other substances to
their environment. Humans, for example, inhale oxygen out of the environment and exhale carbon dioxide into
the environment. Similarly, some organizations consume raw materials in the production of products and emit
finished goods and pollution as a result. In contrast, a watch is an example of a closed system in that it is a
relatively self-contained, self-maintaining unit that has little interaction with its environment.
C: User-Machine Systems- A user–machine system is the system by which people (users) interact with a
machine. The user interface includes hardware (physical) and software (logical) components. User interfaces
exist for various systems, and provide a means of:
 Input, allowing the users to manipulate a system
 Output, allowing the system to indicate the effects of the users' manipulation
Generally, the goal of human-machine interaction engineering is to produce a system which makes it easy,
efficient, and enjoyable to operate a machine in the way which produces the desired result. This generally
means that the operator needs to provide minimal input to achieve the desired output, and also that the
machine minimizes undesired outputs to the human. The computer-system produces deterministic results and
the operators monitor the functioning of computer systems to produce deterministic results.
D: Deterministic and Probabilistic systemsA deterministic system is one in which the occurrence of all events is known with certainty. If the description
of the system state, at a particular point of time of its operation, is given, the next state can be perfectly
predicted. A probabilistic system is one in which the occurrence of events cannot be perfectly predicted.
Though the behavior of such a system can be described in terms of probability, a certain degree of error is
always attached to the prediction of the behavior of the system.
Q.5 Explain the spiral model in detail.
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Ans The spiral model is the most recent system development model. It was introduced by Boehm in 1980s.
This model suggests that the various activities involved in system development should be organized like a
spiral. This model provides a framework for developing a process, which is guided by the risk level of the
project.
Planning
Risk Analysis
Engineering
User Evaluation
Spiral Model
This model is cyclic in nature & each cycle of Spiral consists of four stages represented by 1 quadrant
each. It is suitable for high-risk projects. For small projects, this might not be time and cost effective.
This model of development combines the features of the prototyping model and the waterfall model. The spiral
model
is
intended
for
large,
expensive,
and
complicated
projects.
The steps in the spiral model can be generalized as follows:
1. The new system requirements are defined in as much detail as possible. This usually involves
interviewing a number of users representing all the external or internal users and other aspects of the existing
system.
2. A preliminary design is created for the new system.
3. A first prototype of the new system is constructed from the preliminary design. This is usually a scaleddown system, and represents an approximation of the characteristics of the final product.
4. A second prototype is evolved by a fourfold procedure:
a. evaluating the first prototype in terms of its strengths, weaknesses, and risks;
b. defining the requirements of the second prototype;
c. planning and designing the second prototype;
d. constructing and testing the second prototype.
5. At the customer's option, the entire project can be aborted if the risk is deemed too great. Risk factors
might involve development cost over-runs, operating-cost miscalculation, or any other factor that could, in the
customer's judgment, result in a less-than-satisfactory final product.
6. The existing prototype is evaluated in the same manner as was the previous prototype, and, if necessary,
another prototype is developed from it according to the fourfold procedure outlined above.
7. The preceding steps are iterated until the customer is satisfied that the refined prototype represents the
final product desired.
8. The final system is constructed, based on the refined prototype.
9. The final system is thoroughly evaluated and tested. Routine maintenance is carried out on a continuing
basis to prevent large-scale failures and to minimize downtime.
Q.6. What are the different structured analysis tools used for the analysis phase?
Ans. Structured analysis tools help the system analyst to document the system specification of a system to
be built. The main tools, which are used for the purpose, are given below.
1. Data Flow Diagram (DFD).
2. Data Dictionary.
3. Structured English.
4. Decision Trees.
5. Decision Tables.
Data Flow Diagram
Data Flow Diagram is a graphical representation of the logical flow of data. It helps in expressing the system
requirements in a simple and understandable form. It is also known as Bubble Chart.
A DFD consists of series of bubbles joined by lines representing the data flow in the system.
There are four main symbols used in a DFD
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1 Square: it represents source/destination of a system data.
2.Arrow: It identifies data flow.
3. Circle: it represents a process that transforms incoming data flow into outgoing
data flow.
1. Open Rectangle: it represents a data store.
Data Dictionary: A data dictionary is a structured repository of data, about data.
It is a set of precise and accurate definition of all DFDs, Data elements and data structures. There are mainly
three items of data present in a data dictionary.
i) Data Element: it is the smallest unit of data and cannot be decomposed further.
ii) Data Structures: it is a group of elements handled as a unit. A data structure contains a number of data
elements as its fields.
iii) Data Flows and Data Stores: data flows are nothing but data structures in motion. Whereas data stores
are data structures at rest. Data stores are the locations where data structures are temporarily stored.
Decision Tree and Structured English
The logic of the process, which may not be very clear through DD, can easily be represented using a graphic
representation, which looks like the branches of a tree, called decision tree. A decision tree has as many
branches as there are logical alternatives. The logic can be represented by using Structured English. It uses
logical construction and imperative sentences designed to carry out instructions for actions.
Decision table
Decision table is a matrix of rows and columns that shows conditions and actions. Decision rules state the
procedure to be followed when certain conditions exist. A decision table consists of 4 sections.
A condition stub at the upper left, a condition entry at the upper right, an action stub at the lower left, and an
action entry at the lower right.
Condition Stub
Condition Entry
Action Stub
Action Entry
Stub
Entry
A Decision Table
The questions are listed in the condition stub and the action stub outlines the action to be taken to meet each
condition.The condition entry part contains the answers to questions asked in the condition stub and the
action entry part indicates the appropriate action resulting from the answers to the conditions in the condition
entry quadrant.
Q.7 What are the different methods used for the evaluation of the MIS?
Ans. Evaluation of MIS is an integral part of the management control process, in which the organizations
determine or appraise the quality or worth of their information system. In other words, evaluation of MIS is a
process of measuring performance of organizational information systems.
Evaluation approach
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There are different approaches to evaluate MIS in an organization. The MIS evaluation approaches provide
different means to measure accomplishments of system objectives. Hamilton’s survey (1980) indicates that
the following approaches on MIS evaluation are frequently employed in organizations.
i) Quality Assurance Review: - Quality assurance reviews or technical reviews focus on assessing the
Information system’s technical quality, e.g. comparison to standards and operations acceptance procedures.
ii) Compliance Audits: - Compliance audits or application control reviews assess the adequacy and
completeness of controls for system inputs, outputs, processing, security and access. Compliance audits are
typically performed by an autonomous internal audit function.
iii) Budget performance review: - Evaluation of MIS budget performance concentrates on compliance with
a predetermined budget expenditure level for the MIS development or operations process. Evolution of user
budget performance has its focus on MIS resource consumption by the user. Both may be supported by a
chargeback mechanism.
iv) MIS personnel productivity measurement: - The capability of MIS personnel is typically determined in
terms of productivity. Examples of productivity measures include; lines of code per unit time for the
programming (development) personnel and keystrokes per unit time for the data entry (operations) personnel.
v) Computer performance evaluation: - The production capability of the computer hardware is typically
evaluated in terms of performance efficiencies and bottlenecks that limit production. For example, computer
performance evaluation measurements are made on percent uptime, actual throughput, and I/O channel
utilization.
vi) Service level monitoring: - Service level monitoring focuses on assessing the information and support
provided to the user, based on the terms established between the MIS and the user personnel. Assessment of
the information provided includes turnaround time, response time and error rates. Assessment of the support
provided includes the time required to respond to the user’s problems and requests for changes.
vii) User attitude survey: - User attitude survey method is used in operational evaluation. Operational
considerations refer to whether input data is adequately provided and the output is usable. These types of
attitude surveys are conducted through questionnaires and/or interviews to appraise the user’s perceptions of
the information and support given by the MIS function.
viii) Post installation review: - The focus of a post installation review (PIR) is often on estimating whether the
system meets the requirement definition, i.e. ‘Does the system do what it is designed to do?’
ix) Cost/Benefit analysis: - Cost/Benefit analysis is also known as economic evaluation. The analysis
quantifies the system’s effect on organizational performance in terms off Dollars, e.g. direct cost savings or
tangible financial benefits. Cost/benefit analysis is often used in capital budgeting to gauge the return on
investment.
Evaluation classes
Evaluation of performance measurement consists of two major classes as given below.
Effectiveness This refers to the quality of the outputs from the system. Effectiveness means doing the ‘right’
thing in the right manner so that desired results may be achieved. Information system is said to be effective if
its product (i.e. Output) is of quality, and the process of producing output is right (effective).
Efficiency It is a measure of the amount of resources required to achieve the output, i.e. the use of system
resources to get results. Being efficient implies the system is operating the ‘right’ way.
The relationship between effectiveness and efficiency is that effectiveness is a measure of ’goodness’ of
output, while efficiency is a measure of the resources required to achieve the output.
Product based MIS Evaluation: - Since the focus of the product-based evaluation is on the product
(information support) or the output from the system, the evaluation may be termed as effectiveness
evaluation.
Cost/Benefit-based evaluation: - In cost/benefit based evaluation, a through study of various expected
costs, the benefits to be expected from the system and expected savings, if any, is done. It is economic
evaluation of the system, in which costs to be incurred for developing, implementing and operating a system
are to be justified against the expected benefits from the system. In other words, cost/benefit analysis
determines the cost-effectiveness of the system.
Q.8. What is meant by the conceptual design of MIS? Discuss various steps involved in the
conceptual design of a system.
Ans. In the conceptual design, the feasibility of meeting the management objectives for the MIS is
assessed and a broad picture of the system is analyzed. It involves the following steps:
1) Define problem:
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The first step in conceptual design is to clearly understand and define the problem to be solved. The
information needs of the organization are to be identified and understood in this step, which can be
determined by understanding the mission, objectives and operating plans for the business.
2) Set system objectives:
System objectives should be stated in quantitative terms. For example, ‘pay salary to 100 percent employees
by the last day of the month’.
3) Identify constraints:
System constraints may be classified into two categories:
a) External constraints
These are external to the organization. For example constraints imposed by the customers, the government
and the suppliers.
b) Internal constraints
These are imposed from within the organization. For example, non-cooperation and lack of support from top
management, resource constraints like manpower, time and money etc.
4) Determine information needs:
For determination of information needs, users should specify:
a) What they want out of an information system and
b) Items of information that are needed to achieve the predetermined
objectives.
5) Determine information sources:
Sources of information may be classified as given below:
a) Internal and external records:
The internal records may be in written form like files, inputs and outputs, correspondence, reports etc.,
whereas external records may include trade publications, government statistics, etc.
b) Managers and operating personnel:
User-managers and operating staff may be an important source. However, gathering data from the source
involves interviewing the managers and operating personnel, which requires proper planning and skill.
6) Develop various designs:
More than one alternative conceptual designs are to be developed which are compared to select the optimum
one, which:
a) Meets the requirements of the users/organizations and
b) Is cost effective
Various criteria can be adopted as a basis for evaluating the designs such as economic, performance,
operational etc.
7) Documentation of the conceptual design:
The documentation involves:
a) Overall system flow
b) System inputs
c) System outputs, and
d) Other documentations like activity sheet and system description, etc.
8) Report preparation:
The report prepared should mention the problem, objectives and an overall view of the system. Justifications
for selecting the alternatives and many more.
Q.9 . Discuss the different steps of the detailed system design.
Ans.
Conceptual design in itself is not the end of the design process, rather it servers as a basis for the
detailed MIS design. The performance requirements specified by the conceptual design become inputs
to the detailed design phase, in which these are further refined, detailed and finalized to be called the
system specifications. Thus, the main objective of the detailed system design is to prepare a blue print of a
system that meets the goals of the conceptual system design requirements. Detailed system design
involves the following phases.
 Project planning and control.
 Involve the user
 Define the detailed sub-system.
 Input/Output design.
 Feedback form the user
 Database design.
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 Procedure design.
 Design Documentation
1) Project planning and control
In order to ensure an effective and efficient design of an MIS, it is very important that a detailed design
process should in itself be considered a complete project. Therefore, the first step in the detailed design is
planning and controlling, so that standards may be established and a proper follow-up is made. Some of the
main points, which are important in planning and control of a detailed design, are given below.
Project planning
1. Formulate the project objectives.
2. Define the project tasks.
3. Prepare a network diagram of all events and activities so as to specify sequential and parallel events.
4. Schedule the work as per the requirements of the user.
5. Prepare a budget for the project.
Project control
 Get a feedback of the actual performance of the project with respect to time, cost and work of the project
and compare it with schedules, budgets and technical plans.
 Take corrective action where required so as to maintain control.
2) Involve the user
System designers must inform the user regarding the new information system being developed and gain their
support and acceptance. In this phase, users are assured that changes will benefit them or that they will not
be at disadvantage because of the new system.
3) Detailed sub system definition
In detailed system design, every system needs to be broken down to ascertain all activities required and their
respective inputs and outputs. In some of the cases, sub systems are broadly defined in the conceptual
design phase, but at this stage they are specifically defined to work out every detail concerning the subsystem. Decomposition of the system to operational activities in general is carried out as follows.
4) Output/Input Design
Having defined the subsystem well, by way of flow diagrams and a through discussion with the users of MIS,
the system designers now define the specifications of outputs and inputs for each sub-system, in more detail.
These specifications will later be used by programmers to develop programs to actually produce the
output/input.
5) Feedback from the user
Having specifically defined sub-system, output and inputs, the designers once again involve the user to get
feedback. This step will increase the acceptance of the MIS being designed. The system analyst should
demonstrate the proposed MIS to the users of the system/sub-system. This step will also reassure the top
management of the user organization that the detailed design project is processing as per plans.
7) Database design
A database is an orderly arrangement of all the records related to each other. It servers as a data resource for
the MIS of an organization. To have optimum performance, storage and fast retrieval of data, database design
is an important phase in the detailed design of a system. For designing a database, the designer should keep
the following points in mind.
 Identify all data tables and record types.
 Identify fields for each table, the key fields for each table and relations between various tables.
 Determine the data type and width for each field of the tables.
 Normalize the data tables.
 Properly document data dictionary.
7) Procedure design
Procedures are the rules, standards or methods designed to increase the effectiveness of the information
system. The procedures detail about the tasks to be performed in using the system. They serve as the ready
recovers for the designers as well as for the users. Sometimes they perform the task of a supervisor over
operators. There are a wide variety of procedures, which include:
 Data entry procedures.
 Run time procedures.
 Error handling procedures.
 Security and back up procedures.
 Software documenting procedures.
In designing procedures, designers should:
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 Understand the purpose and quality standards of each procedures
 Develop a step-by-step direction for each procedure, and
 Document all the procedures.
8) Design Documentation
Detailed design starts with the performance specifications given by the conceptual design and ends with a set
of design specifications for the construction of MIS. The outputs from the detailed design, i.e. design
specifications, are handed over to the programmers for writing codes to translate system specifications into a
physical MIS. Therefore, the system analyst should very carefully document the detailed design. In fact,
design documents should consist of comprehensive details of all the design phases. Design documentation of
detailed design report, generally, consists of
 System objectives,
 Design constraints,
 Inputs/outputs,
 Data files,
 Procedures (manuals)
 Proposed system (a summery and detailed flow charts),
 Input/Output specifications,
 Program specifications,
 Database specifications,
 Cost of installation and implementation
 System test conditions.
Q.10. What is the procedure for selecting the hardware and software in an information system?
Ans. Selecting hardware and software for implementing information system in an organization is a serious
and time-consuming process that passes through several phases. The main steps of the selection process
are listed below:
1. Requirement analysis: - System configuration requirements are clearly identified and a decision to
acquire the system is taken in this step.
2. Preparation of tender specifications: - After studying the feasibility and deciding upon the configuration,
tender documents are prepared for the benefit of vendors to clarify the details of various specifications, as
listed below.
i) Purchase procedure and schedule: it includes
a) Date of tender submission
b) Evaluation criteria
c) Scope for negotiations, if any and
d) Expected usage environment and load pattern
ii) Equipment specification
Detailed technical specifications of each item required for both mandatory and optional items.
iii) Quotation format:
a) Format for stating technical details and quoting prices
b) Whether deviations from specifications should be specifically listed
c) Prices and levies (duties, taxes etc.) could be quoted as lumpsum or required separately.
d) Required validity of the quotation.
e) Earnest money deposit required, if any.
iv) Proposed terms of contract
a) Expected delivery schedule.
b) Uptime warranties required
c) Penalty clause, if any
d) Payment terms (Whether advance payment acceptable)
e) Arbitrary clauses
f) Training needs.
g) Post warranty maintenance terms expected.
v) Any additional information required.
3. Inviting tenders: - After the preparation of tender specifications, tenders are invited. Invitation of tenders
may depend upon the magnitude of purchase (estimate equipment cost). It may be through
i) Open tender (through newspaper advertisement)
ii) Limited tender (queries sent to a few selected vendors)
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iii)
iv)
4.
i)
ii)
iii)
Propriety purchase (applies mostly to upgrade requirements)
Direct purchase from market. (applies mostly to consumables)
Technical scrutiny and short listing: - This step involves the following activities.
All tendered bids are opened on a pre-defined date and time.
Deviations from the specifications, if any, in each bid are noted.
A comparative summery is prepared against the list of tendered technical features.
Additional factors to considered are:
i) Financial health of the vendor
(from balance sheets)
ii) Nature and extent of support
(from information provided on number of support staff per installed site an cross-check with selected
customers)
iii) Engineering quality pf products
(factory inspection of product facilities, QA procedures and R&D)
5. Detailed evaluation of short listed vendors: - This step primarily involves getting any finer technical
clarifications. Visits to customer sites and factory inspections may be planned. If any specific performance
requirement is stipulated, the offered product is to be examined at this stage through suitable benchmark
tests. For benchmark tests, standard benchmarks may be used as adequate performance indicators.
6. Negotiations and procurement decision: - Because of the extensive competition, computer system
vendors may offer significant concessions. Negotiations are held to maximize these concessions. However,
price negotiations are often not permitted by some organizations.
When price negotiations are permitted, the committee members should have a good knowledge of the
prevailing market prices, current trends, and also the duty/tax structure.
i) Computer magazines
ii) Vendor directories.
iii) Contact with other users
iv) Past personal experience.
7. Delivery and installation: - In this step, the vendor delivers the hardware/software to the buyer’s
organization, where it is matched with the specifications mentioned in the purchase order. If conforms to these
specifications, the vendor installs the system in the premises of the organization.
8. Post-installation review: - After the system is installed, a system evaluation is made to determine how
closely the new system conforms to the plan. A post-installation review, in which system specifications and
user requirements are audited, is made. The feedback obtained in this step helps in taking corrective decision.
Q.11 What is System Design? Specify its objectives and principles.
Ans. In the system development process, the system design phase starts after the system analysis step is
completed and makes use of the requirement specification. The system design phase is carried out at two
levels:
a. Conceptual level
b. Physical level
a. Conceptual level – This stage allows a system analyst to choose an effective information system among
different MIS designs. The conceptual design is also known as high level design. This become the basis for
detailed design.
b. Physical level-The next step after conceptual design is the detailed physical design of the system. The
performance requirement specified in the conceptual design serves as the basis for detailed design. The
performance requirements are further refined, detailed and finalized in the detailed design of the system that
is known as system specifications.
The objectives of system design are as follows:
1. Practicality- This objective notifies that the design of a system should be user-oriented. i.e. the users of
the system should be easily able to learn and operate it.
2. Flexibility- The system must be designed in such a way that it responds to the changes required by the
users.
3. Integrity- This requires the use of specific practices and processes such as requirements tracing ,
verification and validation.
4. Reliability- This describes the dependency on the system design for any system errors and faults.
5. Efficiency- The efficiency of a system can be measured based on the following features:
a. Throughput- It is the rate at which the system performs its job per unit time.
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c.
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b.
c.
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Response-time- It is the time-taken by the system to respond to a given event.
Run time- It is the ability to undertake a complete job within a specified time limit.
Security- The security of a system includes:
The hardware reliability of the system.
Physical security of data
Detection and prevention of exploited data.
The fundamental principles of system design are as follows:
1. The system design should have an overall macro view of the system rather than tunnel view. The
designer should have a comprehensive view rather a problem-solving view.
2. The design process should be logical- It should have steps, which blend logically.
3. The design should not re-invent the wheel-This implies that the design should not tread into the
territories which have already been visited.
4. The design should be a very close abstraction of the problem to be solved.
5. The design should be uniform and integrated- It should not have any loose components which do not
have any linkage with the system
6. The design should be structured-The process of design as well as the output from the process should
be structured.
7. The design should be reviewed on a real-time basis to minimize errors.
Q.12 What is information? What are the different types of information? What are the attributes for
measuring information quality?
Ans. Information is defined as processed data. It is used by managers to commence activities and to
resourcefully and successfully run the organization. the data is processed by expert systems called
information systems, to obtain information.
From a managerial perspective, information can be of different types:
Strategic information- Strategic systems are information systems that are developed in response to
corporate business initiative. They are intended to give competitive advantage to the organization. They may
deliver a product or service that is at a lower cost, that is differentiated, that focuses on a particular market
segment, or is innovative. Strategic information management helps businesses and organizations categorize,
store, process and transfer the information they create and receive. It also offers tools for helping companies
apply metrics and analytical tools to their information repositories, allowing them to recognize opportunities for
growth and pinpoint ways to improve operational efficiency. They are those systems where information
services resources are applied to strategic business opportunities in such a way that the computer systems
have an impact on the organization’s products and business operations. Strategic information systems are
always systems that are developed in response to corporate business initiative.
Tactical information-This information is obtained from communication. the information of any type, especially
orders and decisions, is passed from one command person /place to another, within the tactical forces, using
electronic equipment.
Information that helps managers at middle level to control the organization is called tactical information. It
helps the management to take tactical decisions. This class of information has its source within the
organization and is derived after analyzing the data of the organization. This type of information flows mostly
in the form of regular reports.
Operational information- Information that helps in the operational decision making is called operational
information. this type of information comes from analyzing data from within the organization and is in the form
of rules, manuals and procedures. This type of information helps the operational-level managers to control
operations. It is mostly shop floor-level information. Sometimes this type of information lends itself for analysis
and forms the base for tactical information.
Information quality can be measured in terms of the following attributes:
Timeliness- Timeliness determines that the information reaches the required recipients within the prespecified period of time. It plays a vital role in decision-making process of management in an organization.
Information delayed is information denied.
Accuracy-Information delivered should be correct and reflect the meaning of data on which it is based. This
helps the management to take right decisions at the right time.
Relevance- A piece of information is said to be relevant if it solves the problem of what, when and why for the
intended recipient.
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Adequacy- Lack of information leads to crisis and overload of information can create chaos. The information
should give a complete picture of the operational process in execution.
Explicitness- The information presented to the management should not require further analysis on the part of
the management. It should clearly depict the meaning and purpose of the report.
Exception based- This implies that only that information which is required is delivered. This helps the
management in saving time, cost and efforts required to evaluate information.
Q.13 What is MIS–oriented System Development Life-cycle?
Ans. The Systems Development Life Cycle (SDLC) is a conceptual model used in project management that
describes the stages involved in an information system development project from an initial feasibility study
through maintenance of the completed application. The MIS- oriented SDLC is tailored to suit the
requirements of business systems. It also has distinct stages and progression from one stage to next is only
allowed after the tasks of that stage are completed to satisfaction.
The different phases of SDLC are as explained below:
Feasibility
Once, the system need has been defined, feasibility study needs to be conducted. The feasibility study is
used to determine if the system should get the go-ahead. Essentially a techno-managerial analysis to
establish the capability of the system to complete successfully, needs to be done. If the project is to proceed,
the feasibility study will produce a system plan and budget estimates for the future stages of development.
Information Analysis
Analysis gathers the requirements for the system. This stage includes a detailed study of the needs of the
system. The system in broad-terms is divided in a hierarchy of black-boxes or modules. Each module has a
specific role in the overall set-up. In this step, for the first time, the system takes a conceptual shape. The
logical modular design of the system is then discussed with the management and after suitable changes the
physical design is prepared.
System Design
In this stage , the details of the system are elaborated and the logical and physical design documents are
prepared. The design document consists all implementation details of the system like hardware details, datastructures, network, etc.
System construction
In this phase the designs are translated into code and the system is actually constructed. It works in two
steps. The first step is the development of an application program. The design document is thoroughly studied
and based on the design, the application program is created. Along-with the application program, the
procedures for interacting with the system are also developed so that various levels of users can interact with
the system in different modes of interaction.
Testing
In this phase the system is tested. The individual modules of the application program are subject to separate
and detailed test. The system is then tested as a whole. The separate modules are brought together and
tested as a complete system. The system is tested to ensure that interfaces between modules work, the
system works on the intended platform and with the expected volume of data and that the system does what
the user requires.
Implementation
In this stage, the system is implemented in the organization after the coding and testing is over. This phase
requires lot of managerial interventions. Major problems can crop-up during implementation. Troubleshooting
of system and problem-related issues in this phase is routine.
Maintenance
Inevitably the system will need maintenance. The system will definitely undergo change once it is put to use.
There are many reasons for the change. Change could happen because of some unexpected input values
into the system. In addition, the changes in the system could directly affect the system operations. The system
should be developed to accommodate changes that could happen during the post implementation period.
Q. 14 Explain the following models in brief:
a) Prototyping
b) Iterative enhancement
Ans. a) Prototyping
In the prototyping approach, prototype of the system is developed, instead of the complete system. A
prototype is a comprehensive system and does not include all the requirement of the user. This model is
based on the evolutionary method of system development. Prototyping is used in those systems, in which
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identification of requirement is difficult and requirement may change during the development process. The
steps followed during this model are:
i) Identify the user’s basic information requirements- The user identifies his requirements in the form of
outputs required from system.
ii) Develop the initial prototype system- Initial prototype of the system is developed which meets the user’s
basic information requirements. It is developed in the minimum possible time.
iii) Use of the prototype system to refine the user’s requirements- The initially developed prototype is
checked to identify further refinements/changes in the prototype.
iv) Revise and enhance the prototype system- The designer makes the necessary changes/refinements
pointed out by the user after using the prototype. Prototyping approach may not be cost effective in small
organizations.
.
Prototype Model
b) Iterative Enhancement Model
In an iterative enhancement model, the system is developed in increments and each increment adds some
functional capabilities to the system, until the full system is developed. Additions and modifications can be
done at each step. The iterative enhancement process model has three phases:
o Analysis
o Implementation
o Design
Q. 15 Explain the steps required for the implementation of MIS?
Ans. The steps required for the implementation of MIS are as follows:
1. Planning for implementation- This involves identifying various actions such as determining the sequence
of activities and estimating the time needed for each activity. All these activities vary according to the design
specification of MIS. Various tools can be used for planning viz. Gantt charts and Network diagrams.
A Gantt chart contains horizontal bars displaying a time line on which activities are shown. The chart displays
various independent jobs that are done in a sequence and tat can be done in parallel
A network diagram is prepared when a project contains many tasks, each task composed of several subtasks.
2. Acquisition of facilities and space planning- To implement MIS at the user’s workstation, various
facilities such as computer room and computer library are required. Therefore, an MIS manager also needs to
do space planning. Space planning includes estimating the space occupied by various computers and their
peripherals. Also, the location of the room and safety and security features need to be considered. At times,
networking may be needed as different departments of the enterprise may be at different locations.
3. MIS– organization and procedure development- The MIS manager has to recruit the require personnel
for the MIS. Also he has to develop procedures for various activities such as, selecting hardware as well as
buying or developing the required software.
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4. User-training-For successfully implementing the MIS, the MIS manager must organize trainings for the
users according to their requirement. For eg., the training for the clerical users must include the processing
and functioning of MIS. A manager must also be informed about the procedure for on-line inquiries.
5. Acquisition of hardware and software- Immediately after deciding the MIS design specifications, the
process of purchasing or developing the required hardware and software starts.
6. Creation of forms and database- The database is used to store data, and forms are used for transmitting
data. Forms are used to input data to MIS and receive output data from MIS. Therefore, the implementation of
MIS, also requires forms and databases.
7. Testing- It is the process that is performed to evaluate whether or not each element of MIS such as
equipments, programs and forms, is working according to the design specifications. Testing also calculates
accuracy, range of inputs, frequency of inputs, operating conditions and reliability factors of MIS.
8.Changeover- After performing the testing, the last step is to put the MIS at the user’s workstation . The
process of placing the newly developed MIS at the workstation differs depending on the following two
situations:
 Placing only the new MIS system
 Replacing an existing MIS system by the new one
Q.16. What is a system? Discuss the different system design methods.
Ans. The term system is the most loosely used term in management because of its use in different
contexts. However a system may be defined as a set of elements, which are joined together to achieve a
common objective. The elements are inter-related and interdependent, which in turn are made up other sub
systems. The set of elements for a system may be understood as input, process and output. A system has
one or multiple inputs. These inputs are processed through a transformation process to convert these inputs
into output. For example, in a manufacturing organization, raw material is input to a system, which using
various organizational processing facilities, converts it into finished product. Similarly in information system,
data is input, which is processed to convert it into information. Three elements of a system are portrayed:
Input
Process
Out put
Feedback and control elements are attached to a system to make it self-regulating and self-monitoring.
Some of the popular system design methods are as follows:
Problem Partitioning: This method is based on the principal of “divide and conquer”. In this method, instead
of solving the entire problem at once, the problem is divided into small manageable parts called modules that
can be solved separately. This problem partitioning method aims at reducing complexity because each
module can be developed, coded and tested relatively independently of the others. Also, maintenance is
minimized if each module can be modified separately.
Structured Design: In this method structure chart is created, which can be used to implement the system.
The chart depicts modules defining each module by the specific function. The aim is to produce a system,
which has minimum dependency on each other and have a high level of cohesion, meaning all the statements
within a module are functionally related. Various tools like flow-charting, data flow diagrams, structure charts,
structured English etc. are used in a structured design.
Top-Down Design: The top-down design is based on the concept of a system, which suggests that a system
consists of sub-systems (components), Which have sub-systems of their own. In other words a system may
be termed as a hierarchy of subsystems, the highest-level subsystem corresponding to the total system.
Accordingly, this method involves the identification of the main components of the system, decomposing them
into their lower-level components and iterating until the desired level of detail is reached. It attempts to
smoothen the path of the system design by starting at the top and designing the broad modules first. At each
stage, adequate attention is paid to subsequent interfacing so that as the system expands further, modules
can be added without trouble.
Logical and Physical Design: There are two different design approaches, viz. logical and physical design.
Logical design refers to the complete conceptualization of the system design. It also includes the functional
requirements of the system. On the other hand, physical design refers to the techniques that are used to map
abstract constructs onto the given software and hardware problems. It refers to those system components that
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are used to implement the logical design. The physical design of the software should not affect the logical
design of the software.
Q17. What is system maintenance? What are its different types?
Ans. The results obtained from the evaluation process help the organization to determine whether its
information systems are effective and efficient or otherwise. The process of monitoring, evaluating, and
modifying of existing information systems to make required or desirable improvements may be termed as
System Maintenance.
System maintenance is an ongoing activity, which covers a wide variety of activities, including removing
program and design errors, updating documentation and test data and updating user support. For the purpose
of convenience, maintenance may be categorized into three classes, namely:
i) Corrective,
ii) Adaptive, and
iii) Perfective.
i.) Corrective Maintenance: - This type of maintenance implies removing errors in a program, which might
have crept in the system due to faulty design or wrong assumptions. Thus, in corrective maintenance,
processing or performance failures are repaired.
ii.) Adaptive Maintenance: - In adaptive maintenance, program functions are changed to enable the
information system to satisfy the information needs of the user. This type of maintenance may become
necessary because of organizational changes which may include:
a) Change in the organizational procedures,
b) Change in organizational objectives, goals, policies, etc.
c) Change in forms,
d) Change in information needs of managers.
e) Change in system controls and security needs, etc.
iii.) Perfective Maintenance: - Perfective maintenance means adding new programs or modifying the
existing programs to enhance the performance of the information system. This type of maintenance
undertaken to respond to user’s additional needs which may be due to the changes within or outside of the
organization. Outside changes are primarily environmental changes, which may in the absence of system
maintenance, render the information system ineffective and inefficient. These environmental changes include:
a) Changes in governmental policies, laws, etc.,
b) Economic and competitive conditions, and
c) New technology.
Testing Maintenance is a systematic process to test an implemented system from a procedural
perspective. It lessens development time and resources. The testing methodology helps organizations identify
and reduce issues in the software’s ‘PQR’ strategy i.e. performance, quality and reliability. The phases in
system testing maintenance are as follows:
1.)Recovery testing- This testing facilitates the system’s ability to recover safely from system crashes or
failures.
2.) Security testing- This verifies the protection mechanisms that prevent unauthorized access of data
and prevents the system from malicious programs and improper penetration.
3.) Stress testing and performance testing-The stress testing phase is mainly done to execute the system
that requires maximum memory and system resources. It attempts to uncover errors arising as a result of
diverted resource allocations.
4.) Review testing- This phase is evaluated when changes and additional requirements are proposed as per
the current system’s requirement.
5.) Testing maintenance and role of configuration management- It incorporates how the iterative life
cycle increases the opportunity to interject test activities. If errors are found at this stage, the best real time is
calculated. The two approaches in testing maintenance are:
 Avoid defects in the final system
 Use fault tolerance methods
Q.1 8 Explain the four stage model of IS planning.
Ans. A wide variety of techniques are being applied for IS panning. However, organizations select these
techniques based on the persuasive power of IS developers rather than on a sound logic. The main reason of
selecting wrong techniques is attributed to the non-identification of the stage the information system of the
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organization is in. this model describes the four generic planning activities, namely, strategic planning,
requirement analysis, resource allocation and project planning.
Four Stage Model of IS Planning
The four stage IS planning model, besides providing insight into the planning process, reduces confusion
about the selection of competing planning methodologies.
Four stages of IS planning model
IS planning activity
Description
Strategic Planning
Matches the overall organizational plan with the IS plan.
Information Requirement
Identifying broad, organizational information
Analysis
requirements.
Resource allocation
Allocating resources for IS development and operation.
Project planning Formulating a plan giving resource requirements for specific IS projects and schedules.
Strategic Planning:
In this planning stage, objectives, goals and strategies are compared with the objectives, goals and strategies
of the organization. The following techniques are used:
i) Derivation from the organizational plan
ii) The strategic information system grid
iii) Strategic fit with organizational culture
iv) Strategy set transformation
Information Requirements Analysis:
This stage deals with the current and future needs for IS to support decision-making and operations of the
organization. To undertake information requirement analysis, the following steps are followed
i) Define underlying organizational requirements
ii) Develop sub-system matrix
iii) Define and evaluate information requirements for organizational sub-systems
Resource Allocation:
After identification of the need for information system applications for entire organization, the next phase is
allocation of resources.
Project Planning:
The last stage of four-stage model of MIS planning is project planning which provides an overall framework for
system development planning, scheduling and controlling. A wide variety of tools of project management are
available, which include milestones, critical path method (CPM) and Gantt Charts.
Q. 19- a)Write a note on strategic information system(SIS)?
b) Explain the role of CIO of the MIS department.
Ans. a) SIS is a special type of information system which provides competititve advantage by changing
aspects such as goals, services and environmental relations of an organization. Inorder to Gin the competitive
advantage, SIS needs to change internal operations of an organization. SIS is used at all levels of the
organizationand is considered more effective than other information systems.
SIS provides different strategies to the competitive advantage in the following ways:
1. Avoiding entry of competitors I to the market-This provides an organization with products and services
that serve highly specialized markets. The entryn of competitors can be avoided if the competitors find that
the strategy implemented in SIS is not cost-effective.
2. Improving marketing techniques by generating databases- Such information systems treat the existing
systems as a resource which can be further used for improving marketing techniques.
3. Providing locking-in strategy to customers and suppliers- Provides such advantages to the users that
are not provided by other information systems so that it becomes for the users to replace a new strategy.The
advantages provided to suppliers may include monitoring product requirements and factory scheduling.
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Subject: Management Information System (M.Sc.IT- 4 )
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4. Lowering the cost of products- This allows an organization to eliver their products and services at a lower
price than what their competitors are providing.
5.Leveraging technology in the value chain- Identifies specific activities in the business where the
competittive strategies can be best applied.
b) The CIO (Chief Information Officer) is the head of the MIS department. The key tasks that the
CIO performs are as follows:
1. Ensuring proper management of MIS- He creates and manages a team of people who are entrusted
with the task of managing the system.
2. Creating security policy- The CIO creates the security policy in consultation with the top
management and decides on the type of information to be provided to different classes of employees.
3. Authorizing employees’ access- As in the MIS department, all the data is centralized, the CIO in
consultation with the department heads decides on the type of access to be given to each class of employees
in the organization.
The key skills required by the CIO are as follows:
1. Interpersonal skills- The CIO needs to be a good communicator as he has to interact with the
managers who are not fully aware of the complexities of information system. He also needs to connect with
people inorder to make them understand the system. Also, the CIO needs to be a good negotiator to settle
controversial issues under his domain.
2. Technical skills- The CIO needs to be technically competent to supervise, retain control over his team
and suggest solutions in times of crisis.
Q.20- Explain the waterfall model.
Ans. The Waterfall model states that the phases are organized in a linear order. In other words, the output of
one phase becomes the input for the next phase. This model is also known as the Classical Life Cycle
Model or the Linear Sequential Model. With the help of the waterfall model one can easily measure the
progress of the current project as this model assists in tracing the output and the logical content of the project.
It is very simple and easy to understand and manage. The different phases of the waterfall model are as
shown in the diagram below:
Requirement
Analysis
Design
Coding
Testing
Implementation
& Maintenance
 Requirement Analysis –Once the requirements for the system, have been established, they have to be
studied and analyzed. This phase involves an interaction between the user and the software engineer and
produces a document known as Software Requirement Specification(SRS).
 Design – This determines the detailed process of developing the software. It utilizes the software
requirements and converts them into software representation. The main aim is to determine a solution to the
problem. The software engineer has to be concerned about the data-structures and the algorithmic details.
 Coding – The design is translated into a programming language using the coding style and guidelines.
The programs should be readable and understandable and well-documented.
 Testing- Testing is performed to verify that the system is functioning efficiently with minimum errors.
Testing is a multi-stage activity emphasizing on verification and validation of the system.
 Implementation & Maintenance- this delivers the fully functioning operational system to the user. Once
the system is delivered various changes arise due to external factors or due to the changing requirements of
the user. This phase then focuses on modifying the software, correcting it and improving its performance.
Prepared By:- Vaishnoo Maa Computers, SCO 145, Chotti Baradari, Patiala.
Ph. 0175-2205100, 2215100
Subject: Management Information System (M.Sc.IT- 4 )
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Advantages of Waterfall Model
1. It is simple to understand
2. Each phase proceeds in sequential order
3. The model allows managerial control where a schedule with deadlines is set for each stage of
development.
4. This model helps in controlling schedules, budgets and documentation.
Limitations of the Waterfall Model
1. The waterfall model assumes that the requirements of a system can be frozen (i.e. baseline) before the
design begins. This is possible for systems designed to automate an existing manual system. But for new
systems, determining the requirements is difficult, as the user does not even know the requirements. Hence,
having unchanging requirements is unrealistic for such projects.
2. Freezing the requirements usually requires choosing the hardware (because it forms a part of the
requirements specification). A large project might take a few years to complete. If the hardware is selected
early, it is likely that the final software will use a hardware technology on the verge of becoming obsolete. It is
a document driven process that requires formal documents at the end of each phase.
3. This model stresses that the requirements should be completely specified before the beginning of the next
phase. But it is not possible in all the systems.
Prepared By:- Vaishnoo Maa Computers, SCO 145, Chotti Baradari, Patiala.
Ph. 0175-2205100, 2215100