Unit 1

UNIT-I
MANAGEMENT INFORMATION SYSTEM
Definition: It refers to the processing of information through computers and other

intelligent devices to manage and support managerial decisions within an organization.
Management Information Systems (MIS) is the study of people, technology,

organizations, and the relationships among them. MIS professionals help firms realize
maximum benefit from investment in personnel, equipment, and business processes.
MIS is a people-oriented field with an emphasis on service through technology. If you
have an interest in technology and have the desire to use technology to improve
people‘s lives, a degree in MIS may be for you.
An automated system designed to provide progress and status information to

management as an aid to decision making.
Management Information System, commonly referred to as MIS is a phrase consisting

of three words: management, information and systems. Looking at these three words,
it‘s easy to define Management Information Systems as systems that provide
information to management.
That is the simple definition of MIS that generally sums up what a Management
Information System is, and what it should do. However, its role and impact on the
smooth operation of a company can never be overemphasized. That is the reason why
every successful company makesuse of these systems in one way or another.
The reason why Management Information Systems are very important in the day to
day operation of companies is because these systems work with people, organizations,
technology and relationships among the people and organizations affecting the
company.
MIS Importance:
Management Information System is formal method of collecting information in
summarized form. It is network established within an organization to provide
information to managers. It provides systematic and analytical information necessary
to all level of managers. It helps managers to take right decision at the right time.
Importance of MIS is described as follows;
1. Management Information System is always management oriented and keeps in view
every level of management and gets the desired information.
2. Integrated – refers to how different components (sub systems) are actually tied up
together. eg:different departments of organization linked together.
3. Useful for planning – as every organization makes log-term and short-term plans
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with the helpof information like sales & production, capital investments, stocks etc
management can easily plan..
4. Effective Management Information System helps the management to know
deviations of actual performance from pre-set targets and control things.
5. It‘s important for increasing efficiency.
6. MIS provides updated results of various departments to management.
7. MIS is highly computerized so it provides accurate results.
8. MIS adds to the intelligence, alertness, awareness of managers by providing them
informationin the form of progress and review reports of an ongoing activity.
9. Helps managers in decision- making.
Nature and Scope of MIS:

The concept of MIS is interdisciplinary in nature, i.e. it has borrowed its concepts from
a large number of disciplines like Accounting, Computers, Organizations,
Management, Operations Research and Behavioural Sciences, etc .MIS is neither a
pure science nor an art; it is recognized as a combination of both. An information
system is a logical system, which is concerned with how‘ something is being
accomplished and thus may be differentiated from physical system, which is the
process itself and is concerned with the content or ‗what‘ is going on.
Structure / Component of MIS:

Structure of MIS may be understood by looking at the physical components of the
informationsystem in an organization. The physical components of an
organizational information system may be hardware, software, database, manual
procedures and operating persons. A brief description of these components has
been outlined in the following paragraphs:
❖ Hardware
Hardware refers to the physical data processing equipment and peripheral
devices, Forexample, CPU, monitor, keyboard, printer, drives, tapes,
communication devices, etc.
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❖ Software
Software is a broad term given to the instructions or programs that direct the
operating of thehardware. 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, arealso regarded as physical elements.
❖ Operating Personnel
Personnel like Computer Operators, Computer Programmers, System
Analysts, SystemManagers, etc., are the operating people of the
information systems.
❖ Input and Output
Various physical inputs and outputs from the information system, existing
in forms likeprintout, reports etc.
Information and Systems Concept:

An information system (IS) is an organized system for the collection, organization, storage and
communication of information. More specifically, it is the study of complementary networks that
people and organizations use to collect, filters, and process, create and distribute data.The concept
that information is the message has different meanings in different contexts. Thus the concept of
information becomes closely related to notions of constraint, communication, control, data, form,
education, knowledge, meaning, understanding, mental stimuli, pattern, perception,
representation, and entropy.
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Various activities of IS:
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Types of IS :
1. TPS Transaction Processing System

2. MIS Management Information System
3. DSS Decision Support system
4. ESS Executive Support System
5. OAS Office Automation System
1. TPS are used primarily for structured operational, and to a lesser degree,
management control applications. Transaction processing systems are used to record day
to day business transactions of the organization. They are used by users at the operational
management level.
2. MIS are used for semi--structured, management control applications. It also

overlaps into theoperational and strategic planning realms as well. Management
Information Systems (MIS) are used by tactical managers to monitor the organization's
current performance status. The output from a transaction processing system is used as input
to a management information system
3. DSS are used primarily for unstructured decision-making whether that

occurs at theoperational, management and strategic planning levels. Decision
support systems are used by senior management to make non-routine decisions.
Decision support systems use input from internal systems (transaction processing
systems and management information systems) and external systems.
4. ESS is used primarily for structured management and strategic planning applications.
5. OAS are used as a facilitator of office correspondence and communication,

underlies all ofthis activity.
A typical organization is divided into operational, middle, and upper level. The
information requirements for users at each level differ. Towards that end, there
are number of informationsystems that support each level in an organization.
✓ Pyramid Diagram of Organizational levels and information requirements
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✓ Transaction Processing System (TPS)
✓ Management Information System (MIS)
✓ Decision Support System (DSS)
✓ Artificial intelligence techniques in business
✓ Online Analytical Processing (OLAP)
Pyramid Diagram of Organizational levels and information requirements
Understanding the various levels of an organization is essential to understand the
informationrequired by the users who operate at their respective levels.
The following diagram illustrates the various levels of a typical organization.
THE ORGANIZATION AS A SYSTEM
The organization is a system - made up of components which work together to achieve an

overall goal. These components can be defined in any number of ways, but you could see
them as different functions. For instance, the HR team could be one component; the
Marketing Unit another component; the service delivery staff another component; the
Accounting Unit another component, the Cleaning Unit another; the Security Unity
another; the IT unit another component and so on. The organization is also a system of
people.All these different functions are dependent on each other. A great HR team on its
own does not make a great organization in the same way that a petrol tank on its own does
not make a car. You may have a great team of staff delivering services, but if your finance
processes and procedures stop working the whole organization suffers.
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Organizational Structure:
• Functional Structure
• Product or Service Category Based Structure:
• Geography Based Structure
• Customer Category Based Structure
• Matrix Structure
MIS in an Organization:
• Creating MIS in Consultation with Users, Systems Analysts and
• External Consultants
• Managing Data
• Managing the ICT Infrastructure
• Managing the MIS
system administrator responsibilities:
• Security of the System
• Maintenance
• Virus Protection
• Firewall Management
• Communication
• Software Management

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UNIT-I

MANAGEMENT INFORMATION SYSTEM

Definition: It refers to the processing of information through computers and other

Management Information Systems (MIS) is the study of people, technology,

An automated system designed to provide progress and status information to

Management Information System, commonly referred to as MIS is a phrase consisting

Nature and Scope of MIS:

Structure / Component of MIS:

Information and Systems Concept:

1. TPS Transaction Processing System

2. MIS are used for semi--structured, management control applications. It also

3. DSS are used primarily for unstructured decision-making whether that

5. OAS are used as a facilitator of office correspondence and communication,

THE ORGANIZATION AS A SYSTEM

The organization is a system - made up of components which work together to achieve an

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