Organization IS Framework

PROF.PARIJAT UPADHYAY

MIS Organization

Organization Of MIS Around Different Departments

The above is a Schematic diagram of an outline of MIS. Also indicated is the

direction of flow of information through a typical MIS.
TPS: Transaction Processing System

Contd

MIS covers all the functional areas of an organization so

as to produce more meaningful management

information, with a view to achieving the objectives of
the organization. It has to consider various subsystem(which includes Finance, Marketing, Production,
Operations) that is their objectives, information needs,
and recognize the interdependence, that these
subsystem have amongst themselves, so that common
areas of information are identified and processed
without repetition and overlapping

Concept Of TPS

Purpose of TPS(Transaction Processing System)

is to capture, store and process data pertaining to
all transaction. The input activity in TPS involves
a data entry process. In this process, data is
captured or collected by recording, coding, and
editing activities.

Concept Of TPS
Examples of devices used in data automation include :

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

Concept Of TPS
Examples of devices used in data automation include :

PCs equipped with touch screens and voice

recognition systems for data entry

Bar coded tags
Magnetic stripe cards
Electronic website on the Internet

Information Requirements Of Decision Makers

Decision Structure
Unstructured

Decisions

Strategic
Management
Used by
Executives &
Directors

Inform
ation

Semi
structured

Tactical management
Used by Business Unit
managers & Self managed
teams

Structured

Operational Management
Used by Operating managers & Self directed
teams

Information
characteristics
Ad Hoc
Unscheduled
Summarized
Infrequent
Forward
Looking
External
Wide Scope

Prespecified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow focus

 Facilitate the decision - making process by

furnishing information in the proper time

frame. This helps the decision - maker to
select 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 the
closely monitored for successful functioning
of the organization.

 Support decision-making in both structured

and unstructured problem environments.

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

Business Processes Supported By IS

All business processes must be supported by

cross-functional information system that

crosses the boundaries of several business
functions. Many companies are moving one
step ahead and trying to install integrated
cross-functional client-server applications.

Business Processes Supported By IS

Such systems support business processes, such as :

Product development
Production
Distribution
Order management
Customer support

Example Of A Product Development Process

The above diagram represents a product development

process whose every step is integrated using MIS &
information is exchanged using MIS. Due to MIS the
process has become an iterative one & thereby improved.

IS Advantages

Ability to link and enable employees:

People from the various units of a

corporation can interact with each other and
thus horizontal communication is promoted
Increases

boundary spanning: An
individual can access any information in any
part of the organization with the aid of the
appropriate technology. This eliminates the
need for the repetition of information

IS Advantages
Ability to store and retrieve information at

any instance: Information can be stored,

retrieved and communicated easily and
effectively
improving
knowledge-deficiency,
enriching experience and improving analytical
ability
Helps

in forecasting and long term

planning: IS creates a structured database and
knowledge base for all people in the organization

Increased security: MIS helps in secure &

seamless transformation of information

IS Disadvantages
Information overload: IT can often lead

to information overload, managers have to

sift through an insurmountable amount of
stored data and thus hindering timely
decision-making. Information overload is
more of a documentation problem
Flaws in input data: MIS typically extracts

data from many different financial and

transaction systems running on various
computer platforms, which can often lead to
inaccurate and inconsistent reports

IS Disadvantages

Discrepancies

in
information
generated:
The
predefined
reports
generated by MIS may not always anticipate
the information needs of individual managers
at all times; or the correct information is not
available when needed, or is simply hard to
access. Hence managers are increasingly
turning to interactive decision support
systems for information they need to plan and
control

Information Dynamics

Types Of Information
There are at least two types of distinguishable information used as input for
IS:

Routine: Information generated on a daily,

weekly or monthly basis, on a regular schedule

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

Types Of Information

Sporadic:

Information
generated
for
occurrence of exception in the general process
implementation, when certain specific & details
of 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..Contd.
For E.g. Information generated when the amount

of fuel required for a certain machine to function

properly exceeds a certain limit, when a manager
demands a certain type of information from a
clustered detail etc.
IS responds to Sporadic information by producing
reports such as exception reports, Demand
reports, Push reports & Error compilation reports

Information Management

Information management has been defined as

the organization-wide capability of creating,

maintaining,
retrieving
and
making
immediately available the right information, in
the right place, at the right time, in hands of the
right people, at the lowest cost, in the best
media, for use in decision making

 In essence, the processing of data into

information and communicating the resulting

information to the user is the key function of
IS.
Therefore IS exist in organizations in order to

help them achieve objectives, to plan and

control their processes and operations, to
help deal with uncertainty, and to help in
adapting to change or initiating change

Role Of MIS In Information Management

IS is useful for accepting data/information as

a raw material and through one or more

transmutation
processes,
generating
information as a product
It is generally expected to provide not only a

confrontation between the user and

information, but also, the interaction required
for relevant & timely decision making
Its

main purpose
information needs

is

to

satisfy

users

Role Of MIS In Information Management

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

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 an

information system

 Storage presupposes some expected future

use
Retrieval search for recorded data
Presentation reporting, communication and

Decision making a controversial inclusion,

except to the extent that the information

system engages in decision making that
concerns itself

Characteristics Of MIS
An information focus, designed for managers

in 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 a

database

Effect Of MIS On The Overall

Performance Of A Firm(Example)
An organizations output performance is

directly related to the motivation and

performance of its human resources. A high
staff turnover rate which is monitored by the
management information system and
identified as occurring in a particular
department or in a particular category of
staff can indicate poor performance on the
part of the employer

Effect Of MIS On The Overall

Performance Of A Firm(Example)
Also, a high turnover rate of clerical staff may

indicate that management practices do not

assist in providing for career progression,
personal
development
or
training
opportunities

Through the identification of poor human

resource management, corrective measures
may be taken which will in turn improve the
organizations output performance