Structure of Management Information System PDF
Structure of Management Information System PDF
Structure of Management Information System PDF
STRUCTURE OF
MANAGEMENT
INFORMATION SYSTEM
Informal
unstructured
I Informal
Fig. 9.1: Information System
128 Management Information System
Information Networks
The concept was developed by Forrester, who argued
that enterprises are complex, multi-loop interconnected
systems and decisions are taken at multiple pOints in the
organizations, which generate additional information when
implemented. Information network refers to the
interconnected and interlocking network of information
generated at various pOints in an organization, information
feedback loops, etc., taken together, and describes the total
system network. It helps in controlling the physical processes
like erection of plants, production of goods, marketing of
products, etc.
According to Forrester Information Networks in an
organization can be divided into six categories such as:
materials, orders, money, personnel, capital, and information.
Each decision point in the organization provides information,
which requires a feedback loop, which enables the organization
to transform the information into action.
Modularity
Activities of various levels of management (top, middle
and bottom) can be identified as strategic, tactical and
operational in nature. Based on these levels and corresponding
activities, the information requirements also change, but the
source of information remains the same. The framework of a
system can be explained with the help of modularity, which
simply means factoring the system into various modules, of
compact and manageable size. A module is a small set of
instructions applicable for individual requirements.
Sometimes, it is possible to set up common modules to meet
the common requirements of certain subsystems, it helps to
smoothen and ensure the early completion of projects.
Modules can again be divided into minor and basic modules,
to facilitate system analysis and design. Modules can be
attested or updated without causing any harm to other
modules. Thus, according to the modularity concept, a system
is viewed as a set of logically integrated modules, which are
coded and tested for their efficiency.
Extent of Integration
System is a group of interrelated subsystems.
Integration of these subsystems is required for the effective
functioning of the system. Subsystem integration is possible
Structure of Management Information System 129
(d) Personnel
Subsystem
Strategic
Planning
Management ( Model Base
Control )
Common to
Unique to Operational many
Aplication. Control Applications.
Common
Transaction Application
Processing ( ) Software
Unique
System Files
DBMS
Common DataBase
Knowledge Work
The concept of knowledge work is involved in several
tasks and explained in terms of the knowledge possessed by
the worker. It involves the use of information derived from
the knowledge and expertise of the worker, and organizational
or outside data available to the worker. Knowledge work, in
simple words, refers to the work involving thinking,
processing, information, formulating analyses,
recommendations and procedures. The'tasks of knowledge
work involves schedules, plans descriptions, instructions,
diagnoses, memoranda, position papers, decisions, etc., which
are considered to be relative with respect to the. tasks
performed. In fact, no task in the world is free from knowledge
work. Almost all the jobs contain at least an element of
knowledge work, and the composition and amount of
knowledge work involved in different tasks vary significantly.
Fo, instance, the knowledge work involved in both decision-
making and filling gasoline in a car differ significantly.
Knowledge work can use either verbal or written inputs and
outputs. In the modern world of technological advancement,
a number of knowledg~ works are available to the users. The
different types of knowledge work are:
138 Management Information System
Application of a DSS
Decision problems can be divided into three categories,
such as independent, interrelated and organizational.
Independent problems are those problems, the solutions to
which are independent of the others. The purpose of such
decisions is simply to find the best solution to the specific
problem. For interrelated problems, the solutions are also
interrelated. The purpose of decisions in such a problem is to
find out the best solution to the entire set and not just to
individual problems and it requires a team effort.
Organizational problems are problems, which affect the entire
organization. Such problems also require a team effort.
Components of a DSS
The data required to solve a problem may come from
internal or external databases. Internal data are obtained by
way of TPS and MIS. External data comes from a variety of
ways such as periodicals, journals, etc., and include
government policy, economic indicators, inflation rates, etc.
The data in a DSS are managed by DBMS, Model Management
System and support tools.
Model Management System
It is the second component of a DSS, which stores and
access models that managers use to make decisions. The
important models are:
1. Statistical models: These are used to perform a
wide range of statistical functions, such as average, standard
deviation, graphical analysis, regression analysis, variance
analysis, etc.
2. Financial and Accounting models: They allow the
decision-maker to measure and access the financial implication
of various alternatives and include analysis of profit and loss,
cost-benefit analysis, investment analysis, etc. They are also
used to calculate various ratios and other measures of financial
health and performance.
3. Production models: These models are mostly used
on the shop-floor to make production related decisions, such
as the number of machine to be operated, manpower
requirements, etc.
4. Marketing models: Such models include product
pricing models, store allocation, advertising strategy, product
design models, etc.
Structure of Management Information System 143
Exercise
Short Answer Questions
1. What do you mean by information networks?
2. Distinguish between formal and informal information systems.
3. What is modularity in information system?
4. Describe the operating demerits of MIS.
S. Explain the structure of MIS on the basis of decision support.
6. Explain the information requirements of managers at different
levels of organization.
7. Discuss the structure of MIS on the basis of managerial activity.
8. Describe the information requirements of managers on the basis
of organizational function.
9. Explain structure of MIS on the basis of organizational functions.
10. Discuss the physical structure of MIS.
11. What is meant by the conceptual structure of MIS?
12. Explain the concept and meaning of knowledge work.
13. Describe the technology support and its significance in
knowledge work.
14. What are the important software support facilities for knowledge
work?
15. Define transaction Processing System (TPS).
16. Explain Information Support System (ISS).
17. What is a Decision Support System (DSS).
18. Described the characteristics of a DSS.
19. Discuss the application of a DSS?
20. What are the components of a DSS?
21. Briefly explain the functions of a DSS.
22. What do you mean by model building?
Essay Questions
1. Describe the structure of an MIS.
2. Explain the concept of knowledge work and brings out its
significance.
3. Explain various support systems in MIS and their applications.
4. What is a DSS? Explain in detail its applications components
and functions.
5. Explain the concept of integration in information system and
bring out its need and significance.