Management
Information
System
LECTURE NOTES
, CONTENTS
Chapter Title Page No.
I INTRODUCTION AND BASIC CONCEPTS 5
II COMPOSITION AND STRUCTURE OF
MIS - DEVELOPMENT 18
III ROLE OF MIS IN ORGANIZATION -
PLANNING AND DECISION MAKING 29
IV IMPLEMENTATION OF MIS IN ORGANIZATION 44
V COMPUTER AND DATA MANAGEMENT IN MIS 59
VI EMERGING TRENDS IN MIS 78
VII MIS IN MARKETING INFORMATION SYSTEM 86
VIII FUTURE THRUSTS AND METHODOLOGIES OF
MANAGEMENT INFORMATION SYSTEMS 100
, CHAPTER - I
INTRODUCTION AND BASIC CONCEPTS
Objective
Management Information Systems are of pivotal importance for the array of industries and
organisations. MIS is an excellent tool to provide management information at all stages of decision
making, thus, greatly helping an organisation to achieve its set of goals and objectives. MIS may be
explained as a distinct methodology in conceiving, creating, planning and implementation of all managerial
functions.
An effective MIS helps to supply accurate, relevant and timely information to the
management of the organisation and that of a poor MIS may provide inaccurate, irrelevant and obsolete
information which becomes too expensive or fatal to an organisation.
CONCEPTS
The word ‘MIS’ comprises of three basic elements such as :
a) Management
b) Information
c) System
Management
The Management is the technique of getting things done through people by following careful
planning, organizing, staffing, directing and controlling. The effective management process includes
right communication, motivation, and leadership by incorporating dynamism in implementing an
integrated frame work of system. The word management also may be defined as working with and
through individuals and groups to accomplish total organisational goals. It may be applicable to any
organisation viz., business, educational institutions, hospitals, families, social institutions and political
organisations.
A management process involves planning, organising, motivating and controlling in the capacity
of Presidents, Chairperson, Department Heads, Foremen, Superiors, College Deans, Bishops and
Governmental Heads or even a well run Household Manager. Management hierarchy involves strategic
planning, Management control and operational supervision.
Planning involves setting up of goals for the Organisation’s development, (preparing work
maps, job charts etc.).
The first level i.e., strategic planning decides what should be the type of business now and
what should be the nature of business in the near future.
The next level, management control, includes processor functions that facilitate the
management of those processes delegated to the operational control level. An example of this is
5
, production scheduling, where a system is established wherein a product passes through various points
for transformation within a factory. The feed back received from the production scheduling process
helps the management to have proper control over the operation.
Operational control narrates the processes performed to control the basic product or services
of the Company.
Information
The concept MIS gives very high regard to the individual and his ability to use information.
MIS gives information through data analysis. Therefore, while analyzing data, it depends on many
academic disciplines. These generally include theories, principles and concepts from management
science, management accounting, operational research, organisational behaviour, computer engineering
science etc. Human psychology makes MIS more effective and useful. These disciplines are used in
designing the MIS, evolving decision support tools for modeling and decision making. The foundation
of MIS is the principles of management and practices. Management information system can be evolved
for a specific objective, if it is developed after a systematic planning and design. It demands for an
analysis of business, management views and policies, organisational culture and management style.
The concept therefore, is a blend of principles, theories and practice of management
information and system giving rise to a single product known as MIS.
Conceptual view of MIS
Information systems
Business goals and mission
Application of pure and Social sciences
Application of principles and practices of management
Use of database and knowledge base
Computers and information technology
The physical view of the MIS can be seen as an assembly of several sub-systems based on
databases in the organisation. These may range from data collection, transaction processing and
6
Information
System
LECTURE NOTES
, CONTENTS
Chapter Title Page No.
I INTRODUCTION AND BASIC CONCEPTS 5
II COMPOSITION AND STRUCTURE OF
MIS - DEVELOPMENT 18
III ROLE OF MIS IN ORGANIZATION -
PLANNING AND DECISION MAKING 29
IV IMPLEMENTATION OF MIS IN ORGANIZATION 44
V COMPUTER AND DATA MANAGEMENT IN MIS 59
VI EMERGING TRENDS IN MIS 78
VII MIS IN MARKETING INFORMATION SYSTEM 86
VIII FUTURE THRUSTS AND METHODOLOGIES OF
MANAGEMENT INFORMATION SYSTEMS 100
, CHAPTER - I
INTRODUCTION AND BASIC CONCEPTS
Objective
Management Information Systems are of pivotal importance for the array of industries and
organisations. MIS is an excellent tool to provide management information at all stages of decision
making, thus, greatly helping an organisation to achieve its set of goals and objectives. MIS may be
explained as a distinct methodology in conceiving, creating, planning and implementation of all managerial
functions.
An effective MIS helps to supply accurate, relevant and timely information to the
management of the organisation and that of a poor MIS may provide inaccurate, irrelevant and obsolete
information which becomes too expensive or fatal to an organisation.
CONCEPTS
The word ‘MIS’ comprises of three basic elements such as :
a) Management
b) Information
c) System
Management
The Management is the technique of getting things done through people by following careful
planning, organizing, staffing, directing and controlling. The effective management process includes
right communication, motivation, and leadership by incorporating dynamism in implementing an
integrated frame work of system. The word management also may be defined as working with and
through individuals and groups to accomplish total organisational goals. It may be applicable to any
organisation viz., business, educational institutions, hospitals, families, social institutions and political
organisations.
A management process involves planning, organising, motivating and controlling in the capacity
of Presidents, Chairperson, Department Heads, Foremen, Superiors, College Deans, Bishops and
Governmental Heads or even a well run Household Manager. Management hierarchy involves strategic
planning, Management control and operational supervision.
Planning involves setting up of goals for the Organisation’s development, (preparing work
maps, job charts etc.).
The first level i.e., strategic planning decides what should be the type of business now and
what should be the nature of business in the near future.
The next level, management control, includes processor functions that facilitate the
management of those processes delegated to the operational control level. An example of this is
5
, production scheduling, where a system is established wherein a product passes through various points
for transformation within a factory. The feed back received from the production scheduling process
helps the management to have proper control over the operation.
Operational control narrates the processes performed to control the basic product or services
of the Company.
Information
The concept MIS gives very high regard to the individual and his ability to use information.
MIS gives information through data analysis. Therefore, while analyzing data, it depends on many
academic disciplines. These generally include theories, principles and concepts from management
science, management accounting, operational research, organisational behaviour, computer engineering
science etc. Human psychology makes MIS more effective and useful. These disciplines are used in
designing the MIS, evolving decision support tools for modeling and decision making. The foundation
of MIS is the principles of management and practices. Management information system can be evolved
for a specific objective, if it is developed after a systematic planning and design. It demands for an
analysis of business, management views and policies, organisational culture and management style.
The concept therefore, is a blend of principles, theories and practice of management
information and system giving rise to a single product known as MIS.
Conceptual view of MIS
Information systems
Business goals and mission
Application of pure and Social sciences
Application of principles and practices of management
Use of database and knowledge base
Computers and information technology
The physical view of the MIS can be seen as an assembly of several sub-systems based on
databases in the organisation. These may range from data collection, transaction processing and
6
