MIS Organisation

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P R O F. PA R I J AT U PA D H YAY

Organization IS Framework


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MIS Organization


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Organization Of MIS Around Different Departments

The above is a Schematic diagram of an outline of MIS. Also indicated is thedirection of flow of information through a typical MIS.TPS: Transaction Processing System


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MIS covers all the functional areas of an organization soas to produce more meaningful managementinformation, with a view to achieving the objectives of the organization. It has to consider various sub-system(which includes Finance, Marketing, Production,Operations) that is their objectives, information needs,and recognize the interdependence, that thesesubsystem have amongst themselves, so that commonareas of information are identified and processed

without repetition and overlapping

Contd


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Concept Of TPS

Purpose of TPS(Transaction Processing System)is to capture, store and process data pertaining toall transaction. The input activity in TPS involvesa data entry process. In this process, data iscaptured or collected by recording, coding, andediting activities.


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Concept Of TPS

Point-of-sale (POS) transaction terminals ATM (Automated Teller Machine) terminals Optical character recognition (OCR)scanners

PCs and network computers with cash

drawers as intelligent POS terminals

Examples of devices used in data automation include :


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Concept Of TPS

PCs equipped with touch screens and voicerecognition systems for data entry

Bar coded tags Magnetic stripe cards Electronic website on the Internet

Examples of devices used in data automation include :


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Information Requirements Of Decision Makers

StrategicManagement

Used byExecutives &

Directors

Tactical managementUsed by Business Unit

managers & Self managedteams

Operational ManagementUsed by Operating managers & Self directed

teams

Decision Structure Information

characteristics Ad HocUnscheduledSummarizedInfrequent

ForwardLookingExternal Wide Scope

PrespecifiedScheduledDetailedFrequentHistorical

InternalNarrow focus

Unstructured

Semistructured

Structured

Inform

ationDecisions


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Facilitate the decision - making process by furnishing information in the proper timeframe. This helps the decision - maker toselect the best course of action.

Provide requisite information at each level of management to carry out their functions.

Help in highlighting the critical factors to theclosely monitored for successful functioningof the organization.


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Support decision-making in both structuredand unstructured problem environments.

Provide a system of people, computers,procedures, interactive query facilities,documents for collecting, sorting, retrievingand transmitting information to the users.


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Business Processes Supported By IS

All business processes must be supported by cross-functional information system thatcrosses the boundaries of several businessfunctions. Many companies are moving onestep ahead and trying to install integratedcross-functional client-server applications.


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Business Processes Supported By ISSuch systems support business processes , such as :

Product development Production

Distribution Order management Customer support


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Example Of A Product Development Process

The above diagram represents a product developmentprocess whose every step is integrated using MIS &information is exchanged using MIS. Due to MIS theprocess has become an iterative one & thereby improved.


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IS Advantages

Ability to link and enable employees:People from the various units of acorporation can interact with each other andthus horizontal communication is promoted

Increases boundary spanning: Anindividual can access any information in any

part of the organization with the aid of theappropriate technology. This eliminates theneed for the repetition of information


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Ability to store and retrieve information atany instance: Information can be stored,retrieved and communicated easily andeffectively improving knowledge-deficiency,enriching experience and improving analyticalability

Helps in forecasting and long term

planning: IS creates a structured database andknowledge base for all people in the organization Increased security: MIS helps in secure &seamless transformation of information

IS Advantages


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IS Disadvantages

Information overload: IT can often leadto information overload, managers have tosift through an insurmountable amount of stored data and thus hindering timely decision-making. Information overload ismore of a documentation problem

Flaws in input data: MIS typically extracts

data from many different financial andtransaction systems running on variouscomputer platforms, which can often lead toinaccurate and inconsistent reports


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Discrepancies in informationgenerated: The predefined reportsgenerated by MIS may not always anticipatethe information needs of individual managersat all times; or the correct information is notavailable when needed, or is simply hard to

access. Hence managers are increasingly turning to interactive decision supportsystems for information they need to plan andcontrol

IS Disadvantages


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Information Dynamics


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Types Of Information

Routine: Information generated on a daily, weekly or monthly basis, on a regular schedule

for an organizationE.g. information regarding daily/weekly salesanalysis, fortnightly inventory content, monthly financial statement, bi-monthly logistics. Mostly these reports are TPS based.The output of IS for these types of informationare the Periodic Scheduled Reports

There are at least two types of distinguishable information used as input forIS:


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Sporadic: Information generated foroccurrence of exception in the general processimplementation, when certain specific & detailsof a certain process are demanded by management and when there occurs variability in the schedule of the process flow Sporadic information is non-uniform,unscheduled & generated on an ad-hoc basis

Types Of Information


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For E.g. Information generated when the amountof fuel required for a certain machine to functionproperly exceeds a certain limit, when a managerdemands a certain type of information from aclustered detail etc.IS responds to Sporadic information by producing

reports such as exception reports, Demandreports, Push reports & Error compilation reports

Types Of Information..Contd.


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Information Management

Information management has been defined asthe organization-wide capability of creating,

maintaining, retrieving and makingimmediately available the right information, inthe right place, at the right time, in hands of theright people, at the lowest cost, in the best

media, for use in decision making


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In essence, the processing of data intoinformation and communicating the resultinginformation to the user is the key function of

IS. Therefore IS exist in organizations in order tohelp them achieve objectives, to plan andcontrol their processes and operations, tohelp deal with uncertainty, and to help inadapting to change or initiating change


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Role Of MIS In Information Management

IS is useful for accepting data/information asa raw material and through one or moretransmutation processes, generating

information as a product It is generally expected to provide not only aconfrontation between the user andinformation, but also, the interaction requiredfor relevant & timely decision making

Its main purpose is to satisfy usersinformation needs


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Perception initial entry of data whether

captured or generated, into the organization Recording physical capture of data Processing transformation according to the

specific needs of the organization Transmission the flows which occur in aninformation system

MIS comprises the following functional elements which relate to theorganization and its environments:

Role Of MIS In Information Management


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Storage presupposes some expected futureuse

Retrieval search for recorded data Presentation reporting, communication and Decision making a controversial inclusion,except to the extent that the informationsystem engages in decision making thatconcerns itself


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An information focus, designed for managersin an organization

Structured information flow An integration of data processing jobs by business function, such as production of MIS,personnel MIS and so on and

Inquiry and report generation, usually with adatabase

Characteristics Of MIS


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Effect Of MIS On The OverallPerformance Of A Firm(Example)

An organizations output performance isdirectly related to the motivation and

performance of its human resources. A highstaff turnover rate which is monitored by themanagement information system andidentified as occurring in a particular

department or in a particular category of staff can indicate poor performance on thepart of the employer


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Also, a high turnover rate of clerical staff may indicate that management practices do notassist in providing for career progression,personal development or trainingopportunities

Through the identification of poor human

resource management, corrective measuresmay be taken which will in turn improve theorganizations output performance

Effect Of MIS On The OverallPerformance Of A Firm(Example)

MIS Organisation

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